TIDMASLI
RNS Number : 8344N
Aberdeen Standard Eur Lgstc Inc PLC
26 May 2020
Aberdeen Standard European Logistics Income PLC
LEI: 213800I9IYIKKNRT3G50
Net Asset Value as at 31 March 2020 and Dividend Declaration
26 May 2020: Aberdeen Standard European Logistics Income PLC
(LSE: ASLI) (the "Company") announces its unaudited quarterly Net
Asset Value ("NAV") as at 31 March 2020 and declares its first
interim dividend for 2020.
Highlights
-- NAV per Ordinary share of 112.7c (GBp - 99.92p) as at 31
March 2020 (31 December 2019: 111.0c (GBp - 94.21p)). Exchange rate
GBP1 : EUR1.13 (31 December 2019: GBP1 : EUR1.18).
-- Portfolio capital value has increased by 0.7% since 31
December 2019 (on a like-for-like basis including capital
expenditure). The Company's well located and diversified European
logistics portfolio of 14 assets was valued at EUR404.9 million as
at 31 March 2020.
-- A fourth interim distribution of 1.27 pence (equivalent to
1.41 euro cents) per Ordinary share in respect of the year ended 31
December 2019 was paid on 27 March 2020.
-- First interim distribution of 1.41 euro cents (equivalent to
1.24 pence) per Ordinary share in respect of the year ending 31
December 2020 declared.
At the valuation date of 31 March 2020 Europe was in the early
stages of lockdown due to COVID-19 and the investment market had
come to a near standstill. There was a lack of relevant
transactional evidence and so, in line with market practice, the
independent valuers report from CBRE has noted "material
uncertainty" relating to property valuations.
Q1 Investment Activity
During the first quarter of 2020, the Company completed the
acquisition of the logistics warehouse in Den Hoorn, the
Netherlands, for a net value of EUR49.9 million, providing a net
initial yield of 4.5%. This newly built warehouse is located in the
most densely populated area of the Netherlands between the cities
of the Hague and Rotterdam. Built to a modern specification, it is
a quality warehouse providing office and mezzanine space of over
43,000 square metres. Both LED lighting and solar roof panels add
sustainable credentials to the investment. The warehouse has an
attractive income profile and is fully leased to logistics operator
Van der Helm, a Dutch family company founded in 1936, as its
headquarters on a ten year CPI indexed lease.
As part of this acquisition, the Company also finalised and drew
down long term financing secured on its properties at Den Hoorn and
Zeewolde, the Netherlands. This secured loan facility was arranged
with Berlin HYP AG for a total value of EUR35.7 million and fixed
for an eight year term at an attractive all-in interest rate of
1.25% per annum.
The Company has now fully deployed the funds raised in July 2019
and, following draw down of this fixed term loan facility, the
overall asset level gearing sits at 34 per cent. of gross
assets.
Breakdown of NAV movement
Set out below is a breakdown of the change to the unaudited net
asset value per Ordinary Share over the period from 1 January 2020
to 31 March 2020. The unaudited net asset value has been prepared
under International Financial Reporting Standards ("IFRS").
Per Share Attributable Comment
(EURcents) Assets (EURm)
Net assets as at
31 December 2019 111.0 260.3
------------ --------------- -----------------------------
Portfolio of 14 assets:
Capital values increased
0.7% on a like-for-like
basis from the prior
quarter. Acquisition
costs incurred in the
Unrealised increase period relate to the
in valuation of acquisition of properties
property portfolio 3.7 8.8 in Warsaw and Den Hoorn
------------ --------------- -----------------------------
Acquisition costs
incurred during
the period (0.4) (1.0)
------------ --------------- -----------------------------
Income from the property
Income earned for portfolio and associated
the period 2.1 4.9 running costs
------------ --------------- -----------------------------
Expenses for the
period (0.8) (1.8)
------------ --------------- -----------------------------
Net deferred tax liability
on the difference between
book cost and fair value
of the portfolio, including
the Den Hoorn asset,
which was acquired via
an SPV acquisition during
Deferred tax liability (1.2) (2.7) the quarter
------------ --------------- -----------------------------
Movement in the mark
to market value of a
dividend hedge entered
into in Q1 2020 to fix
FX hedge mark to the EUR:GBP conversion
market revaluation (0.1) (0.2) of the 2020 dividend
------------ --------------- -----------------------------
Fourth interim dividend
of 1.27 pence (1.41
Dividend paid 27 euro cents) per Ordinary
March 2020 (1.4) (3.3) Share
------------ --------------- -----------------------------
Foreign currency
loss (0.0) (0.1)
------------ --------------- -----------------------------
Other movements Movement in lease incentives
in reserves (0.2) (0.6) in the quarter
------------ --------------- -----------------------------
Net assets as at
31 March 2020 112.7 264.3
------------ --------------- -----------------------------
The EPRA NAV per share is 116.4 Euro cents, which excludes
deferred tax liability and fair value of the FX derivative.
Net Asset Value analysis as at 31 March 2020 (unaudited)
EURm % of net assets
Fair value of Property
Portfolio 404.9 153.2%
-------- ----------------
Cash 11.8 4.5%
-------- ----------------
Other Assets 9.5 3.6%
-------- ----------------
Total Assets 426.2 161.3%
-------- ----------------
Bank Loans (143.4) (54.3)%
-------- ----------------
Other Liabilities (10.1) (3.8)%
-------- ----------------
Deferred Tax Liability (8.4) (3.2)%
-------- ----------------
Total Net Assets 264.3 100.0%
-------- ----------------
The NAV per share is based on the external valuation of the
Company's direct property portfolio undertaken by CBRE.
The NAV per share at 31 March 2020 is based on 234 ,500,001
shares of 1 pence each, being the total number of Ordinary shares
in issue at that time.
Q2 Rental Collection Update
At the time of the last COVID-19 update, the Company announced
that all rents had been collected for Q1 2020 and 67% of those due
for Q2 had then been received, with twelve tenants requesting
discussions around their short term financial positions. This
collection figure has now increased to 75% with an expectation that
this will shortly rise to 82%.
Of the remaining 18% currently unpaid, representing
approximately EUR1 million in monthly and quarterly rental
payments, it has been agreed in principle that approximately
EUR820,000 of this will be deferred, with EUR720,000 of this
deferred rent due for payment by December 2020 and EUR100,000 of
this due prior to June 2022.
The remaining EUR180,000 of unpaid rent relates to six tenants
who have requested rent free periods. It is expected that this rent
will be forgiven for Q2, along with an additional EUR210,000 for
the remainder of 2020 and EUR130,000 in respect of 2021/22, in
exchange for material lease extensions. The manager is in the final
stages of negotiations with these tenants and lease extensions are
expected to be agreed for up to five years.
As a result, the Company currently expects that it will collect
approximately 95% of Q2 rental income by December 2020, with an
additional 2% payable in the period to June 2022 and the remaining
3% forgiven, in exchange for material lease extensions. The
Investment Manager considers this to be a positive result for
shareholders and expects to conclude all of these discussions
shortly.
Dividends
Following a thorough review of the latest rent collection
statistics and the recent tenant discussions, the Board has today
declared a first interim dividend in respect of the year ending 31
December 2020 of 1.41 euro cents per Ordinary share (equivalent to
1.24 pence). This will be paid in sterling on 26 June 2020 to
Ordinary shareholders on the register on 5 June 2020 (ex-dividend
date of 4 June 2020). Of this first interim dividend declared of
1.24 pence per Ordinary share, 1.05 pence is declared as dividend
income with 0.19 pence treated as qualifying interest income.
The Board, through the Investment Manager, continues to monitor
the situation and the impact this is having on all of our tenants.
While it remains the Board's intention to pay quarterly interim
dividends in line with the dividend policy, the quantum of these
distributions will ultimately depend on the ability of our tenants
to maintain rental payments in line with the expected agreed terms.
The Board views these terms to be favourable to both shareholders
and the impacted tenants, while permitting the Company to maintain
quarterly dividend payments in line with policy.
Evert Castelein, Aberdeen Standard Investments, commented:
"It was pleasing to see a further uplift in the portfolio
valuation as we reached the March 2020 quarter end date. This
valuation uplift reflects the fact that, notwithstanding the severe
short-term negative impact suffered by a number of our tenants, the
outlook for European logistics real estate remains compelling,
perhaps even more so following the impact this crisis will likely
have on consumer behaviour and supply chain logistics.
As previously noted, while a number of our tenants are
experiencing unprecedented levels of demand, a number of tenants
have inevitably been negatively affected by the COVID-19 pandemic.
Following a period of negotiation with these tenants, the
previously announced level of rental collection for Q2 of 67% is
now expected to increase significantly. Lease extensions are being
agreed where rental income has been forgiven and we are very
pleased with how these discussions have progressed.
The recent increased level of tenant interaction has further
highlighted the importance of having local offices and, in
particular, local asset managers, based in close proximity to our
tenants. The relationships our asset managers have built with
tenants, coupled with a deep understanding of their local logistics
markets, ensured that tenant discussions have been highly
productive from the start. Aberdeen Standard Investments has 25
offices across Europe and employs over 250 real estate
professionals, including over 80 real estate asset managers and 29
transaction managers.
As the European logistics market evolves in response to this
crisis, our local managers expect to see increased levels of
interesting investment opportunities, particularly in the urban
logistics space, as the importance of e-commerce becomes more
prevalent".
Tony Roper, Chairman of the Company, commented:
"The Board and the Investment Manager continue to work safely
from home during these difficult times, remaining in close contact
with our tenants and service providers to ensure the efficient
functioning of the Company.
While the majority of our tenants remain in a strong financial
position and are fully operational, a number of tenants have
required short-term assistance. Following a period of negotiation
with these tenants, we are now in a position where we expect to
agree certain rent deferrals and a limited amount of rent
forgiveness, in exchange for lease extensions.
The Board believes these agreements strike a satisfactory
balance between assisting our tenants through this difficult period
and protecting the interests of our shareholders, particularly in
relation to the payment of quarterly dividends.
Acknowledging the importance of income to our shareholders, the
Board has declared an interim dividend of 1.41 euro cents per
share, in line with our dividend policy. While it is the Board's
intention to maintain the level of dividend throughout 2020, the
Board recognises the unpredictability of this situation and will
therefore keep this under review as the year progresses".
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulations (EU) No. 596/2014). Upon the
publication of this announcement via a Regulatory Information
Service this inside information is now considered to be in the
public domain.
Details of the Company and its property portfolio may also be
found on the Company's website which can be found at:
http://www.eurologisticsincome.co.uk
For further information please contact:
Luke Mason / Gary Jones
Aberdeen Asset Management PLC
0207 463 6000
The above information is unaudited.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
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of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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