Title: GB0033875286 Priips Kid URL Source: https://doc.morningstar.com/document/0c31bd401b95f8fdcb6c17fd65e2376c.msdoc/?clientid=equiniti&key=118e3421984822cc Number of Pages: 2 Markdown Content: Page 1 of 2 # Key Information Document Purpose: This document provides you with key information about this investment product. It is not marketing material. The information is required by law to help you understand the nature, risks, costs, potential gains and losses of this product and to help you comp are it with other products. # Product # Ordinary shares in abrdn Property Income Trust Limited ISIN: GB0033875286 Telephone: 0808 500 0040 Website: www.abrdnpit.co.uk Document published: 19/07/2024 This product is managed by abrdn Fund Managers Limited, a firm authorised and regulated by the Financial Conduct Authority in the United Kingdom. # What is this product? Type Ordinary shares in abrdn Property Income Trust Limited, an investment company registered in Guernsey, with Real Estate Invest ment Trust (“REIT”) status, which is listed on the London Stock Exchange. Shares of abrdn Property Income Trust Limited (the “Compa ny”) are bought and sold via markets. At any time, the price you would pay to acquire a share will normally be higher than the price at which you could se ll it. The price may be at a premium or discount to the net asset value of the Company. Term The Company does not have a fixed life but may be wound up with shareholder approval, subject to compliance with relevant leg al and regulatory requirements. abrdn Fund Managers Limited may not unilaterally terminate the Company. Objective The Company's investment objective is to realise all existing assets in the portfolio in an orderly manner while seeking to b alance maximising returns for Shareholders against the timeframe for disposal. The Company will cease to make any new investments o r to undertake capital expenditure except as deemed necessary or desirable by the Board in connection with the Managed Wind Down, primarily where such expenditure is n ecessary to protect or enhance the realisable value of an existing asset. The net proceed s from realisations will be used to repay borrowings and make timely returns of capital to shareholders (net of costs and expenses) in such manner as the Directors consider appropriate. Any amounts received by the Company during the Managed Wind Down that has not been used to repay borrowing will be held by the Company as cash on deposit and/or as cash equivalent securities, including short dated corporate bonds or other cash equivalents, cash f unds or bank cash deposits (and/or funds holding such investmen ts), prior to cash being returned to Shareholders. The Company will not undertake any further borrowings other than for short term working capital purposes. The Company's net gearing will not exceed 65%, measured at the time of any borrowing (for working c apital purposes) or return of capital to shareholders. Derivatives may be used for hedging purposes only. Intended Retail Investor Investors with basic investment knowledge. Investors who understand the basics of buying and selling shares in stockmarket li sted companies and the way these shares are valued. Investors who can accept large short term losses. Investors wanting a return (g rowth) over the longer term (5 years or more). The Company has specific and generic risks with a risk rating as per the risk indicator. The Company is intended for g eneral sale to retail and professional investors through all distribution channels with or without professional advice. # What are the risks and what could I get in return? Risk Indicator # 1 2 3 4 5 6 7 > Lower risk Higher risk The risk indicator assumes you keep the product for 5 years. The actual risk can vary significantly if you sell it at an earl ier stage. The value of investments and the income from them can go down as well as up, and you may get back less than you investe d. The summary risk indicator is a guide to the level of risk of this product compared to other products. It shows how likely it is that the product will lose money because of movements in the markets or because the Company is not able to pay you. We have classified this product as 5 out of 7, which a medium -high risk class. This rates the potential losses from future performance at a medium -high level, and poor market conditions will likely impact our capacity to pay you. Further information on risks is detailed in the Company’s annual report available in the literature library on www.slipit.co. uk/en/literature -library. This product does not include any protection from future market performance so you could lose some or all of your investment. The Company borrows/ may borrow in order to purchase assets, and this may magnify gains or losses. Shares in the Company may trade at a discount to their Net Asset Value, which may adversely affect the value of your investment, particularly when you come t o sell your shares. # Investment perfo rmance information The Company invests in a diverse portfolio of commercial real estate assets in the UK. The Company seeks to improve returns t hrough actively managing its assets. Any defects in an asset, a poor location or loss of a tenant may adversely impact income gener ated and future returns. In addition, investment styles may be in, or out of, favour. The Company uses bank debt secured against assets to invest and thi s may magnify gains and losses. The share price does not always reflect the underlying net asset value (NAV) and variations in the relative movements in the share price relative to the NAV could affect returns. For more detail see the Annual Report's Principal Risks and Uncertainties section. The Company uses the MSCI UK Balanced Quarterly Property Index to measure performance of the portolio relative to the market. The investment strategy of the Company is to provide investors with an attractive income return, with the prospect of income and c apital growth, through investing in a diversified portfolio of commercial real estate assets in the UK. Performance and volatility can be expected to vary signific antly, both positively and negatively, from that of the Index. What could affect my return positively? A well -considered investment strategy with strong asset management, use of gearing, timely deployment of capital and disposal of ass ets should increase returns. Leases may be indexed to the annual consumer price inflation index which may lead to increased rental income. Changes in political, geopolitical or market conditions may increase the appeal of particular markets and the value of investments. The use of bank debt may enhance Page 2 of 2 returns particularly if interest rates are low or falling. A narrowing of the discount of the share price to the NAV, or an i ncrease in the premium of the share price to the NAV can enhance the share price return relative to the performance of the value of the Company. What could affect my return negatively? A poorly -judged investment strategy with poor asset management, use of gearing, inability to deploy capital and mis -timing of disposals could result in poor returns. Increased construction costs, defects, delays, contractor failure, lack of development per mits, environmental and third party damage can all impact the resulting capital value and income from investments. hanges in political, geopolitical or market conditions ma y also cause the portfolio to underperform. Gearing may also detract from returns pa rticularly if interest rates are high or increasing. A widening of the discount of the share price to the NAV, or a decrease in the premium of the share price to the NAV can reduce the share price return relative to the perform ance of the value of the Comp any. The Company is a listed Investment Company and is not subject to redemptions / subscriptions. However, if the Company were to be wound up under severely adverse market conditions, the reported NAV at the time of the decision may significantly overstate the realisable value of the portfolio's assets and the amounts distributed per share may be less than the reported NAV. The structures through which the Company hold s its assets may be illiquid and take time to unwind or for the value to be realised. As a res ult the liquidity profile of the portfolio at the time may affect the degree of discount that would be applied. There is no guarantee that the reported value of an asset in the accounts may be achieved in an open market sale. The Company currently has borr owings which would need to be repaid prior to any distribution to shareholders. The repayment cost of any borrowings may be above the carrying value in the accounts and penalties may also be applied for early repayment. # What happens if the Company is unable to pay out? As a shareholder of the Company you would not be able to make a claim to the Financial Services Compensation Scheme in the ev ent that the Company is unable to pay any dividends due to you, or if it were unable to pay any amounts due to you on the winding u p of the Company. # What are the costs? The Reduction in Yield (RIY) shows what impact the total costs you pay will have on the investment return you might get. The total costs take into account one -off, ongoing and incidental costs. The amounts shown here are the cumulative costs of the product itself, for three different holding periods. They include potential early exit penalties. The figures assume you invest 10,000 GBP. The figures are estimates and may change in the future. The person selling you or advising you about this product may charg e you other costs. If so, this person will provide you with information about these costs, and show you the impact that all costs will have on your investment over time. Costs over ti me Investment 10,000 GBP Scenarios If you cash in after 1 year If you cash in after 3 year s If you cash in after 5 years Total costs 356 GBP 1,068 GBP 1,780 GBP Impact on return (RIY) per year 3.6% 3.6% 3.6% Composition of cost s The table below shows the impact each year of the different types of costs on the investment return you might get at the end of the recommended holding period and, what the different cost categories mean. One -off costs Entry costs 0.00% The impact of the costs you pay when entering your investment. Exit costs 0.00% The impact of the costs of exiting your investment when it matures. Ongoing costs Portfolio transaction costs 0.44% The impact of the costs of us buying and selling underlying investments for the product. Other ongoing costs 3.12% The impact of the costs that we take each year for managing your investments. Incidental costs Performance fees 0.00% The impact of a performance fee, where applicable. Carried Interests 0.00% The impact of carried interests, where applicable. The other ongoing costs set out above represent the costs of the Company including property operating expenses, administratio n costs associated with the ongoing running of a real estate investment trust and also the investment management fee. Financing cos ts of 0.96% are included in the costs set out above. # How long should I hold it and can I take money out early? Recommended holding period : 5 years This product has no required minimum holding period but is designed for long -term investment; you should have an investment horizon of at least 5 years. As the shares are listed on the London Stock Exchange, you may buy or sell shares on any normal busine ss day that the London Stock Exchange is open for business. # How can I complain? If you have any complaints about the Company, the KID or the conduct of the manufacturer, you can refer to the 'Contact Us' s ection of the Manager’s website www.invtrusts.co.uk or you may lodge your complaint by emailing us at complaints.trusts@abrdn.com. Complaints regarding the conduct of the person(s) advising on or selling the product should be addressed to the person(s) or to their organisation. # Other relevant information The cost and risk calculations included in this KID are based on prescribed methodologies. The data used in these calculation s and the specific methodology applied may change in the future. Further information on the Company’s investment policies, the type s of assets in which the Company may invest, the markets in which it invests, borrowing limits as well as details of its management, administration and deposi tary arrangements can be found in the Company’s Annual Report and Pre -Investment Disclosure Docume nt on the Company’s website www.abrdnpit.co.uk. Paper copies of these documents are available on request, free of charge, via the contact details above. Depending on how you buy your shares you may incur other costs, including broker commission, platform fees and Stamp Duty. The distributor will provide you with additional documents where necessary.