Company Overview: Abacus Property Group is a diversified real estate investment trust (REIT) with an investment portfolio focused on the commercial property and self-storage sectors.

1.1 Business Update

As announced on 27 July 2023, Abacus Property Group Securityholders authorized the proposed amendments to the constitutions of each as of 6 Stapled Securities, in connection with the proposed de-stapling of Abacus Property Group’s Self Storage assets into an ASX-listed Self Storage REIT, namely Abacus Storage King (ASX: ASK). Each consisting of a fully paid ordinary share in each of Abacus Group Holdings Limited (AGHL), Abacus Group Projects Limited (AGPL) and Abacus Storage Operations Limited (ASOL) stapled to a fully paid ordinary unit in each of Abacus Income Trust (AIT), Abacus Trust (AT), and Abacus Storage Property Trust (ASPT).

On 1 August 2023, the Abacus Property Group shares commenced trading on a reconstructed and deferred settlement basis to render the de-stapling process. Today, ASK Securities (each as a two-stapled security) were expected to commence trading on ASX on a deferred settlement and conditional basis, as de-stapling has occurred.

3 August 2023 will be recognized as the de-stapling implementation date and settlement date of the new ASK Securities. The issue price of the Offer was AUD 1.41/ASK Security, illustrating a 10.2% discount on ASK’s NTA of AUD 1.57, which includes the impact of the Proposal, the Offer and specific post-balance date events, offered on 1 for 5.6 pro-rata security holder offer.

The allotment of new ASX Securities under the Offer and the last day of trading on a reconstructed and deferred settlement basis for ABACUS PROPERTY GROUP is expected to be 4 August 2023. The dispatch of Abacus Property Group and ASK holding statements and refund under the Offer is scheduled on 7 August 2023, and settlement of all on-market trades of Abacus Property Group and ASK Securities is expected on 9 August 2023.

1.2 Stock Update

S&P Dow Jones Indices announced the de-stapling of Abacus Property Group into two separate ASX-listed entities: Abacus Group (XASX: ABG) and Abacus Storage King (XASX: ASK). “Abacus Property Group will spin-off 1 share of Abacus Storage King for every 1 Abacus Property Group share held.” With this note, we closed the coverage on the stock at the current market price of AUD 1.460 at 11:00 AM (GMT+10) as of 1 August 2023, and the issue price of the Offer was AUD 1.41 per ASK Security.

Markets are trading in a highly volatile zone currently due to certain macro-economic issues and geopolitical issues prevailing geopolitical tensions. Therefore, it is prudent to follow a cautious approach while investing.

Note 1: Past performance is neither an Indicator nor a guarantee of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is 1 August 2023. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual’s appetite for upside potential, risks, holding duration, and any previous holdings. An ‘Exit’ from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

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