Flush with cash from the Hipgnosis (SONG) takeover and, soon perhaps Abrdn Property Income (API ), which just announced that it has buying interest for almost all of its assets, it seems a good time for me to scan for new opportunities for my portfolio.

My Abrdn Property Income shares were acquired at the end of March 2024, and I wrote about that early in April – not normally the way around that I like to do this, hence the idea of flagging potential new ideas today. The net asset value (NAV) slipped a little afterwards from 78.4p when I invested to 73.3p at end June 2024. Of this, 1.8p related to projected costs associated with selling off the portfolio and 1p went on fees associated with the strategic review.

Now, the company says GoldenTree Asset Management is prepared to pay £351m for all of the portfolio bar API’s Scottish forest. That is about £30m less than the value of the portfolio at 30 June 2024.

In September 2021, Abrdn Property Income paid £7.5m for 1,471 hectares of upland rough grazing and open moorland in the Cairngorm National Park, in Scotland. The plan was to plant 1.5m trees (aided by grant funding). The land is being marketed by Knight Frank for £12m.

API shares were 51.5p when I bought them and the NAV implied by the deal is 64p. Honestly, while this will make me a decent profit, I am a bit disappointed by this outcome. Based on a current price of 85p for Custodian Property Income Reit (CREI ), its offer would now be worth 66.3p per API share.

The team behind the GoldenTree bid is the old LXi team that was behind the failed attempt to launch Special Opportunities Reit. Back then, the team was arguing that property valuations were close to a low point. It might have just secured itself a bargain.

SOHO still cheap

I bought some Triple Point Social Housing Reit (SOHO ) at 57p back in July 2023, and have made some money on this given the high yield and a roughly 15% uplift in the share price since then. However, it still feels too cheap, and I may add to the position.

The most recent interim results (covering the six months to 30 June) were published a couple of weeks ago. The NAV was down slightly, as the valuation yield rose from about 5.6% to 6%, more than offsetting rising rents. Falling UK interest rates should bring the yield back down and the NAV back up in time. The dividend was covered, thanks to improved rent collection.

There is an ongoing review of the trust’s investment management arrangements. The board has pushed back the timing of the announcement of the conclusion of that, saying it wants to secure an appropriate, cost-effective agreement for the benefit of the company and its shareholders. I am not necessarily expecting anything dramatic to come out of it, but the implication is that good news is on the way. On that basis, a 49% discount and 8.4% yield look pretty attractive. (Updated: today the board announced Atrato would replace Triple Point as fund manager in January.0

I am nursing a small loss on the shares I bought in Gore Street Energy Storage (GSF ) earlier in the year, these now yield 12%, which is daft, but I probably have enough of these for the moment.

I have been droning on about the attractions of private equity for years. Here, I trimmed my position in HgCapital Trust (HGT ) in July, but I also hold ICG Enterprise (ICGT ) and Pantheon International (PIN ). I am debating whether to add another name.

Harking back to last week’s article, ideally, given the wide discount and the great track record, I would buy Oakley Capital Investments (OCI), but my platform will not let me – presumably because it is only listed on the specialist fund segment.

Another name that I mentioned last week was Downing Renewables & Infrastructure (DORE ). Since then, DORE has announced that it is selling its Swedish windfarm (for about 50% more than it paid for it, and for a small premium above its carrying value). This is further proof of the manager’s ability to add value for investors, and it means that the trust has cash to fund the next phase of its plans in Swedish hydropower and grid services.

As I write, the share price has not moved on the back of this. Barring a dramatic jump in the share price, this is probably top of the list of possible purchases.

James Carthew is head of research at QuotedData.

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