Abacus Group (ASX:ABG), a Commercial Real Estate Investment group focused on Sydney and Brisbane office markets, has recorded a decline in its security price over the past year. Abacus Group (ASX:ABG) securities were priced at $0.82, up 1.86% in today’s session, and are down 32.51% over the past year. On 18 September 2026 the group announced that it had agreed to sell its 19.60% interest in Storage King Group (ASX:SKG).

For context, the S&P/ASX 200 Real Estate index [XRE] (INDEXASX: XRE) stood at 3,202.90, up 1.11% (+35.20 points) in today’s session as of 6 Oct, 4:45 pm, and is down nearly 22% over the past year.

Business Model and Operational Footprint

Abacus Group is a stapled group made up of Abacus Group Holdings Limited and Abacus Trust and Abacus Income Trust, with Abacus Funds Management Limited as responsible entity. It owns and manages commercial property and describes itself as a specialised commercial REIT with a focus on investments in the Sydney and Brisbane office markets. It is headquartered in Sydney.

Abacus held a 19.60% interest in Storage King Group, a listed self storage owner, following the internalisation of Storage King’s management in 2026. The group states that, following that internalisation, the investment is no longer considered core to its long-term strategy.

Sector Dynamics

Office property owners face varied conditions in different cities, with tenant demand, incentives and valuations influenced by interest rates and workplace trends. Listed property groups also reshape portfolios by selling non-core holdings and using proceeds to reduce debt, which affects gearing and distribution capacity.

Abacus’s 32.51% one-year decline compares with a fall of nearly 22% for the S&P/ASX 200 Real Estate index, and with declines of 23.38% for Dexus (ASX:DXS) and 27.10% for Growthpoint Properties Australia (ASX:GOZ). Abacus is up 1.86% today at $0.82, against a 1.11% rise for the index.

Relative to the index, Abacus Group’s one-year decline of 32.51% is about 10.5 percentage points larger than the index’s decline of nearly 22%, while its move today is up 1.86% against the index’s 1.11% rise.

Storage King Selldown Release

Abacus agreed to sell a 19.60% interest in Storage King Group for total gross proceeds of $284.8 million at an average price of $1.11 per security. The transaction combines a strategic sale to Ki Corporation Limited at a premium to market with an underwritten institutional block trade.

The sale to Ki is of a 10.37% interest at $1.20 per security, an 11.6% premium to the closing price of $1.075 on 17 September 2026 and a 10.8% premium to the five-day Volume weighted average price of $1.083, for gross proceeds of $163.5 million. An initial 4.49% interest ($70.8 million) is expected to settle on 23 September 2026. The remaining 5.88% requires Abacus securityholder approval under ASX Listing Rule 10.1, because it is a disposal of a substantial asset to a related party, with a vote expected in late November 2026 at the Annual General Meeting.

The remaining 9.23% interest was sold by an underwritten Block Trade at $1.00 per security, a 7.0% discount to the closing price and a 7.7% discount to the five-day VWAP, for gross proceeds of $121.3 million, expected to settle on 22 September 2026. Net proceeds will be used to repay Debt and take gearing to about 30%. Net tangible assets reduce by 7 cents to $1.52 per security. FY27 distribution guidance of 6.70 cents per security is now expected to be at the top end of the 80% to 90% payout ratio, with 67% fully franked. Barrenjoey is sole underwriter and Denison Partners provides independent advice to the board.

Storage King’s own FY26 release confirms that it completed the internalisation of its management platform from Abacus Group on 30 June 2026. The sale prices in the Abacus announcement compare with Storage King’s closing price of $1.075 on 17 September 2026, and the strategic sale to Ki Corporation was priced at $1.20 per security, while the block trade was priced at $1.00 per security.

Growth Catalysts and Critical Operating Risks

Factors identified by the group include simplification of its operating model, a stronger Capital position, lower gearing and concentration on growth initiatives in its core commercial portfolio.

Risks include the securityholder vote required for part of the Ki sale, with 5.88% of the interest subject to approval, completion of the block trade, a reduction in net tangible assets of 7 cents per security, and the block trade price at a discount to the market price. The group is concentrated in Sydney and Brisbane office markets, and distribution guidance of 6.70 cents is conditional on Payout Ratio assumptions. Office valuations and tenant Demand remain external variables.

Where Things Stand

Abacus has agreed to exit its Storage King holding, with proceeds directed to debt reduction, while its securities remain well below levels of a year ago. Reference points ahead include the 22 and 23 September 2026 settlements and the securityholder vote in late November 2026.