TIDMASLI
RNS Number : 7985F
Aberdeen Standard Eur Lgstc Inc PLC
19 November 2020
Aberdeen Standard European Logistics Income PLC
LEI: 213800I9IYIKKNRT3G50
Strong rent collection with a well-positioned quality portfolio
in the fast growing European logistics sector
Unaudited Net Asset Value as at 30 September 2020
19 November 2020: Aberdeen Standard European Logistics Income
PLC (LSE: ASLI) (the "Company" or "ASLI") announces its unaudited
quarterly Net Asset Value ("NAV") as at 30 September 2020.
Highlights
-- Stable and robust NAV - NAV per Ordinary share of 112.7c (GBp
- 102.9p) as at 30 September 2020 (30 June 2020: 112.8c (GBp -
103.0p)) [1]
-- Valuation growth - capital values increased in aggregate
across 13 assets by EUR2.1m. A one-off adjustment made in respect
of Dutch real estate transfer tax of EUR1.3m resulting in a total
net increase of EUR800k in Q3. The Company's well located and
diversified European logistics portfolio of 14 assets is now valued
at EUR405.7 million as at 30 September 2020
-- Strong rent collections - rent collection remains strong with
Q4 rental income currently expected to be in line with previous
projections, allowing the Board to continue to pay distributions in
line with its stated policy
-- Dividends - a second interim distribution of 1.24 pence per
Ordinary share in respect of the year ending 31 December 2020 was
paid on 25 September 2020
-- Additional financing flexibility - new uncommitted four year
EUR40 million master facilities loan agreement signed with Investec
Bank increasing the flexibility to acquire new assets prior to any
fresh equity raise and reducing the impact of cash drag on
investment returns
-- Strong shareholder returns - for the 12 months to 30
September 2020, NAV total return of 13.2% (10.4% in Euro terms) [2]
and share price total return of 21.0% [3]
1 Exchange rate GBP1 : EUR1.10 (30 June 2020: GBP1 :
EUR1.10)
2 Source: Aberdeen Standard Investments
3 Source: Bloomberg
Rental Collection
The Board is pleased to report that rent collection remains
strong with all rent received in line with previous
projections.
Payments received in respect of Q3 2020 rental income represent
97% of rental income due for the quarter. During October, the
Company collected 99% of rent from monthly (October) and quarterly
(Q4) advance payers. All rents due under the terms of deferral
agreements have been paid on time.
Almost 97% of full year 2020 rental income is expected to be
received by the financial year end with the balance subject to
previously announced rent deferral agreements or rent free periods
granted in exchange for material lease extensions.
In light of the expected rental collection and the previously
agreed tenant positions, it remains the Board's intention to pay
quarterly distributions in line with the Company's dividend
policy.
Dividends
On 25 August 2020 the Directors declared a second interim
distribution of 1.24 pence (equivalent to 1.41 euro cents) per
Ordinary Share, in respect of the year ending 31 December 2020. The
distribution was paid in sterling on 25 September 2020 to Ordinary
Shareholders on the register on 4 September 2020 (ex-dividend date
of 3 September 2020).
Financing
The Company level loan to value ratio is currently 33.0%, below
the long term target of 35.0%. The EUR40 million uncommitted loan
agreement with Investec Bank has been executed and the facility is
now available, providing additional flexibility in respect of cash
management and future asset purchases. This new facility will help
to avoid cash drag and facilitate new acquisitions in advance of
any new cash raise.
Additionally, with EUR24.3 million of cash at bank, the Company
has a good level of liquidity to help fund future acquisitions.
Performance
The Company's shares continue to trade at a material premium to
NAV, with the closing share price of 107 pence on 30 September
representing a 4% premium to the NAV. For the year to 30 September
2020, the share price total return (with dividends reinvested) was
21.0%. The net asset value total return over the same period of
13.2% (10.4% in Euro terms) underpins the continued share price
premium.
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 July 2020 to
30 September 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
30 June 2020 112.8 270.3
------------ --------------- -----------------------------
Capital values increased
EUR2.1m in aggregate
on a like-for-like basis
in respect of 13 assets.
Adjustment of -EUR1.3m
relates to Den Hoorn
asset, now 6 months
old, on which a Real
Estate Transfer Tax
would become applicable
Unrealised change for any future purchaser
in valuation of impacting the latest
property portfolio 0.3 0.8 CBRE valuation
------------ --------------- -----------------------------
Acquisition costs
during the period (0.1) (0.3)
------------ --------------- -----------------------------
Income from the property
Income earned during portfolio and associated
the period 2.1 5.1 running costs
------------ --------------- -----------------------------
Expenses for the
period (0.8) (2.0)
------------ --------------- -----------------------------
Net deferred tax liability
on the difference between
book cost and fair value
Deferred tax liability (0.2) (0.5) of the portfolio
------------ --------------- -----------------------------
Movement in the mark
to market value of a
dividend hedge rolled
forward in Q3 to fix
FX hedge mark to the EUR:GBP conversion
market revaluation 0.1 0.2 of the 2020 dividend
------------ --------------- -----------------------------
Second interim dividend
of 1.24 pence (1.41
Dividend paid 25 euro cents) per Ordinary
September 2020 (1.4) (3.4) Share
------------ --------------- -----------------------------
Foreign currency
loss (0.1) (0.1)
------------ --------------- -----------------------------
Issue of 5,000,000 new
Ordinary shares on 30
Share issue 0.0 5.7 July 2020
------------ --------------- -----------------------------
Other movements Movement in lease incentives
in reserves (0.0) (0.1) in the quarter
------------ --------------- -----------------------------
Net assets as at
30 September 2020 112.7 275.7
------------ --------------- -----------------------------
The EPRA NAV per share is 116.3 Euro cents, which excludes
deferred tax liability and fair value of the FX derivative.
Net Asset Value analysis as at 30 September 2020 (unaudited)
EURm % of net assets
Property Portfolio 405.7 147.2%
-------- ----------------
Adjustment for lease incentives (4.8) (1.7%)
-------- ----------------
Fair value of property
portfolio 400.9 145.5%
-------- ----------------
Cash 24.3 8.8%
-------- ----------------
Other Assets 13.1 4.8%
-------- ----------------
Total Assets 438.3 159.1%
-------- ----------------
Bank Loans (143.5) (52.0%)
-------- ----------------
Other Liabilities (10.5) (3.8%)
-------- ----------------
Deferred Tax Liability (8.6) (3.3%)
-------- ----------------
Total Net Assets 275.7 100.0%
-------- ----------------
The property portfolio valuation is based on the independent
external valuation of the Company's direct property portfolio
undertaken by CBRE.
The NAV per share at 30 September 2020 is based on 244 ,500,001
shares of 1 pence each, being the total number of Ordinary shares
in issue at that time.
Evert Castelein, Aberdeen Standard Investments, commented:
"There are attractive opportunities across Europe to invest in
high-quality, modern and well-located assets. We believe that the
outlook for European logistics real estate remains compelling, more
so now given the impact that the COVID-19 crisis has had on
consumer behaviour and supply chain logistics in the future.
The global pandemic further accentuated and accelerated many of
the positive demand drivers that were already in motion before the
crisis began. It has also brought important considerations around
sustainability and social responsibility to the forefront of the
sector. Occupiers and investors will become increasingly focused on
the social and environmental costs of their properties with carbon
"net-neutrality" often a minimum requirement by some local
authorities for new builds and we are working closely with our
tenants to seek to deliver better ESG outcomes.
New cohorts are adopting e-commerce for every-day purchases,
particularly amongst senior generations. Growing confidence and
familiarity with this form of retailing is likely to accelerate the
trend with positive implications expected for all logistics real
estate.
As the European logistics market evolves, our local managers
expect to see increased levels of interesting investment
opportunities as companies seek to bring certain operations back to
their home territories. Numerous cases of manufacturers being
frustrated by a lack of component parts highlight the fragility and
inefficiency of operating long distance supply chains and we expect
them to seek to make these more resilient. The continual advance of
technology is increasingly rendering labour cost arbitrage less
important.
The manufacturing industry continues to push the integration of
innovation, with robotics, mechanisation and 3D printing performing
more of the production and assembly of goods. This may well lead to
manufacturers moving their production back to Europe and closer to
the end consumer. The associated supply chain activity will further
boost demand for logistics space."
Tony Roper, Chairman of the Company, commented:
"Our Investment Manager has maintained close dialogue with our
tenants through its on-the-ground presence and we are pleased to
note that all rent has been received in line with previous
projections. These latest rent collection figures continue to
underpin confidence in the distribution policy of the Company.
The pandemic has affirmed more quickly than many thought that
online sales and deliveries will be a growth area across much of
Europe, reshoring of production and inventory building may be
required in many sectors and that technology has a significant role
to play. This environment favours operators with the strongest
global coverage with the best digital platforms to track shipments.
The key drivers will be speed, certainty and end-to-end data
transparency. Businesses too small to provide this offer may be
vulnerable. A full digital service is increasingly expected by
customers.
There is no doubt that the increased focus on supply chain
management and online sales and deliveries will underpin the
increased interest that we are seeing in this sector of the real
estate market.
With the Company's share price and NAV performance over 2020
providing solid returns for shareholders, the quality, location and
age of our assets together with improving sustainability
credentials should give confidence for the future as we look to
build on the European logistics story.
With continued strong rent collection, good cash reserves and a
new loan facility in place, the Company is well positioned to play
its part in this growing space and take advantage of the pipeline
of assets that the Manager is reviewing."
The Board is not aware of any other significant events or
transactions which have occurred between 30 September 2020 and the
date of publication of this statement which would have a material
impact on the financial position of the Company.
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.
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END
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