abrdn Global Premier Properties Fund (NYSE: AWP), a real estate investment fund with a market capitalization of $342.49 million and an impressive 12.09% dividend yield, has entered into a distribution agreement to potentially sell up to $27.5 million of its common shares, as detailed in a recent filing with the Securities and Exchange Commission (SEC).
According to InvestingPro, the fund has maintained dividend payments for 19 consecutive years, making it a notable income-generating investment vehicle. The transaction involves an "at-the-market" offering, allowing the Fund to sell shares directly on the New York Stock Exchange at prevailing market prices.
The distribution agreement, dated January 23, 2025, was made with ALPS Distributors, Inc., which will act as the primary distributor. ALPS Distributors may work with other selected dealers through sub-placement agent agreements, one of which has already been established with UBS Securities LLC. Trading at $4.01 per share with a P/E ratio of 3.62, InvestingPro data shows the fund's shares have delivered a total return of 22.3% over the past year.
The offering will be conducted under a prospectus supplement and an accompanying prospectus, which are part of the Fund's shelf registration statement previously filed with the SEC. The Fund is restricted from selling shares below the current net asset value per share, excluding any distribution commission or discount, in accordance with regulations.
The commencement of the offering on January 23, 2025, was confirmed by the Fund, which has also included the legal opinion of Dechert LLP regarding the legality of the common shares being offered. This move enables abrdn Global Premier Properties Fund to raise capital flexibly and efficiently as market conditions permit.
Investors interested in the Fund's common shares should note that the offering's success and timing are subject to various factors, including market conditions. The details of the distribution agreement and sub-placement agent agreement are available in full in the exhibits filed with the SEC report.
For a comprehensive analysis of AWP's financial health, which InvestingPro rates as FAIR, along with additional investment insights and real-time metrics, investors can access the full suite of professional tools on the InvestingPro platform.
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