Business
Portfolio Reversion
Portfolio Reversion.
About this update from Abrdn Property Income Trust Limited
[{"type":"text","content":"\n\n \n \n\n\n\n\nabrdn Property Income Trust Limited (an authorised closed-ended investment company incorporated in Guernsey with registration number 41352) LEI Number: 549300HHFBWZRKC7RW84 (The \"Company\" or \"API\") 5 DECEMBER 2023 PORTFOLIO REVERSION As at 30 September 2023 the API portfolio had a very attractive reversionary potential of c£7.6m, reflecting 29% of the portfolio income. This potential will be realised at lease expiries, rent reviews or when vacant space is let, and is a clear indicator of future performance. We are pleased to provide an update on recent asset management where some of this reversion has been captured. Rent ReviewsThree rent reviews have been agreed within the last two months across the industrial portfolio, with significant increases in rent.In Bristol, a rent review at Kings Business Park was agreed at £96,350 p.a. reflecting a 38.6% uplift to the previously passing rent. This was in line with the September 2023 valuation, but 28% ahead of the June valuation which more accurately reflects the pre-agreement level.At Opus 9 in Warrington, a rent review has been settled at £245,000 p.a. which is 57.6% above the previous passing level and 16.4% ahead of the September valuation.Lastly, we have just agreed the rent review on Elliot Way in Birmingham at £428,000 p.a. which is 8.3% ahead of the September valuation and 52.4% above the previous rent.All three of these deals demonstrate a strong trajectory of income growth, particularly with the portfolio's very favourable structure with 56% invested in the industrial sector. These settlements also reflect a pattern of exceeding the portfolio valuation assumptions. LettingsBuilding on the rent review settlements, API is delighted to announce that a new 15-year lease to a leading parcel delivery company at Rainhill Road in Washington has completed. The c150,000 sq.ft industrial building has undergone a comprehensive refurbishment, which has repositioned the property to serve the parcel distribution market and includes a number of ESG initiatives. These include an extensive roof-mounted solar panel installation and approximately 1.2 acres of landscaping that will be seeded with wild flowers next spring to increase biodiversity. This has also resulted in an improvement to the E...