ABP rallied +7.4% yesterday after announcing a possible $3bn spin-off of its Storage King business into a listed property trust which should help the company unlock some decent intrinsic value. ABP trades on 16x while its larger rival in the self-storage space, National Storage REIT (NSR) trades on 21x, while, like many REITs, ABP has been trading at a heavy discount to its asset values making the move both logical and attractive.
- We think there is obvious value in a number of property trusts listed on the ASX that are trading at deep discounts to asset value, Abacus being one of those.
MM likes ABP around the $3 area
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