abrdn Property Income trust share price drops 24% over six months despite NAV growth
'The level of discount is of great concern to the board, and we continue to explore ways that will reduce it in the long term.'
Chair James Clifton-Brown said the negative total return to shareholders was due to a widening of the discount of the share price to NAV per share as, on 30 June 2023, the trust's share price was trading at a 43.1% discount to the NAV.
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According to data from the Association of Investment companies, the trust is currently trading at a 41.5% discount.
He noted other peers were also trading at «varying levels of wide discount», largely because of the «negative sentiment towards the UK real estate market».
«The level of discount is of great concern to the board, and we continue to explore ways that will reduce it in the long term,» he added.
Sector wise, Clifton-Brown said the first half of 2023 saw a return to positive total return according to the MSCI UK Quarterly index, following a rapid repricing of real estate assets in the last quarter of 2022.
The best performing sector over the six-month period was Industrials, due to a return to capital growth led by the «continuing robust occupational market fuelling investment appetite», he said.
Overall, retail values have continued to fall, but Retail Warehousing has been resilient and demonstrated the highest total returns of any other sub-sector.
Yet the changes in working practices have had a negative impact on investor confidence in the Office sector, with values falling, although «buyers are able to take advantage of the lack of competition», he noted.
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Over the first half of the year, the
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