TIDMASLI
RNS Number : 2246M
Aberdeen Standard Eur Lgstc Inc PLC
20 January 2021
20 January 2021
Aberdeen Standard European Logistics Income PLC
LEI: 213800I9IYIKKNRT3G50
Unaudited Property Portfolio Valuation and Rent Collection
Update
Aberdeen Standard European Logistics Income PLC ( the "Company"
or "ASLI") today provides an update on the unaudited quarterly
independent valuation of the property portfolio as at 31 December
2020 and its rent collection for the fourth quarter of 2020 .
- As at 31 December 2020, the property portfolio was
independently valued by CBRE GmbH at EUR430.2 million, an increase
of 6.0%, or EUR24.5 million, on the 30 September 2020 valuation of
EUR405.7 million on a like for like basis.
- 100% of rent due for the quarter ended 31 December 2020 has been collected.
- Total rent collection for the calendar year 2020 is 97% of
rent due under original tenant agreements, as previously reported,
with the balance consisting of agreed rent deferrals and rent free
periods granted in exchange for material lease extensions.
- The Company remains prudently geared with a loan to value
ratio of approximately 31% of gross assets, with no debt maturity
before June 2025 and an average remaining loan duration of 5.7
years.
The Company expects its unaudited 31 December 2020 net asset
value per share to have increased materially since the third
quarter (30 September 2020: 112.7 euro cents, equivalent to 102.9
pence per share).
The Company plans to announce the 31 December 2020 unaudited NAV
and its fourth interim distribution in respect of the year ended 31
December 2020 on or around 19 February 2021.
Portfolio Valuation
As at 31 December 2020, the Company's property portfolio was
independently valued at EUR430.2 million (GBP386.7 million) and
consists of 14 assets located across five European countries. This
unaudited valuation represents a strong 6.0% uplift of EUR24.5
million over the previous Q3 2020 property valuation of EUR405.7
million. The valuation increase was predominantly the result of 25
basis points of yield compression across the entire portfolio,
driven by the strength of the European logistics real estate market
alongside the high-quality nature of ASLI's portfolio as
demonstrated through consistently high levels of rent
collection.
The last part of 2020 saw a significant increase in the value of
prime European logistics real estate assets let to high calibre
tenants on long leases. The supply of such quality assets remains
constrained and occupier demand for mid-size logistics buildings
continues to strengthen. When combined with the buoyant investment
market witnessed, this has driven tighter pricing in transactions,
accelerating yield compression and increasing valuations for good
quality assets in the logistics real estate market.
Rental Collection and Dividend
All rental income due in respect of Q4 2020 has been collected
resulting in total rent collection of 97% for the full 2020
calendar year. No new requests for support from tenants have been
received in the fourth quarter with the majority of tenant
discussions having taken place during Q2, when the Company
successfully concluded negotiations with certain tenants negatively
impacted by the COVID-19 pandemic. As previously disclosed at the
time, for the remaining outstanding rental income, the Investment
Manager agreed short-term rent deferrals and a small number of
rent-free periods, in exchange for material lease extensions.
A third interim distribution in respect of the year ended 31
December 2020, amounting to 1.24 pence (equivalent to 1.41 euro
cents) per Ordinary share was paid in sterling on 30 December 2020
to Ordinary shareholders on the register on 4 December 2020
(ex-dividend date of 3 December 2020).
The Company continues to declare quarterly interim dividends to
Shareholders, with dividends declared in respect of the quarters
ending on the following dates: 31 March, 30 June, 30 September and
31 December in each year.
The Board, through the Investment Manager, monitors the
performance of the Company's tenants as many European countries
still struggle with COVID-19 and differing forms of enforced
lockdowns. In light of the continued strong rental collection
outcome, it remains the Board's intention to pay quarterly
dividends in line with the Company's dividend policy. The Q4
dividend is expected to be declared on or around 19 February
2021.
Outlook
The Board and the Investment Manager continue to observe the
strong structural tailwinds benefiting the European logistics
sector which were reinforced by the impact of the COVID-19
pandemic. The Company's portfolio of 14 assets is diversified
across five European countries, with 34 underlying tenants.
Evert Castelein and the wider European-based support team that
he has around him continues to originate interesting opportunities
to expand ASLI's portfolio of quality assets despite the yield
compression witnessed over 2020. The Board supports the team's
efforts to grow and increase the value of the Company through both
the purchase of new assets and through asset management initiatives
as seen within the current portfolio. Discussions with tenants
regarding extensions to two properties are at varying stages which
together with ESG initiatives like solar panel installation should
give shareholders confidence that the Company's portfolio is well
placed for the future.
The Investment Manager sees an active pipeline of well-located
"mid-box" and urban logistics assets throughout Europe. Advanced
due diligence on the recently announced Polish asset continues with
an expected closing of the transaction in late Q1 2021. This 34,000
sqm warehouse is expected to provide a net initial yield of 5.5%,
is well located and will be leased to six tenants with an average
WAULT of more than seven years. The Company will provide further
detail as and when it is appropriate to do so.
Evert Castelein, Aberdeen Standard Investments, commented:
"It is very gratifying to see our latest portfolio valuation
deliver such an uplift for the December 2020 quarter end which is a
reflection of the quality and locations of the asset base that we
have built up. Individual valuations have benefited from more
recent deals witnessed in the strong market for European logistics
real estate. Increased online retail sales and an obvious focus on
supply chains and their resilience has led to an increased demand
for space and well specified buildings in locations linked easily
to supply routes and close to major centres.
We have seen strong levels of rent collection, but nonetheless
we continue to monitor the situation closely for any possible
impacts on our tenant base. We remain, through ASI's local network,
in contact with our tenants and available to support them where and
when required.
There are continued 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, supported by a level of income which is inflation
proofed through long indexed leases.
As the European logistics market evolves, ASI's locally-based
transaction managers expect to see increased levels of interesting
investment opportunities as companies seek to bring certain
operations back to their home territories and the importance of
e-commerce focuses attention."
Tony Roper, Chairman of the Company, commented:
"Our 100% Q4 rent collection figures together with such a strong
quarter's portfolio valuation uplift gives the Board confidence for
the future and continues to underpin the distribution policy of the
Company. We, via our Investment Manager, remain in close contact
with our tenants as we track the pandemic's continued impact on
people's lives and the businesses that provide necessary goods.
Whilst noting the Tritax deal announced recently by Standard
Life Aberdeen plc and the advantages that this may bring in the
form of added resource to the Manager and the possibility of an
enhanced pipeline, it remains very much business as usual for our
investment team who continue to work on the recently announced
Polish deal, valued at approximately EUR26 million, to add a
fifteenth asset to the portfolio. It remains the Board's intention
to grow the Company, further diversifying the asset and tenant
base.
We are confident that the portfolio can deliver solid returns
for our shareholders and this latest update shows the increasing
value of the assets sourced by our Investment Manager and the value
also of long term indexed income.
There is no doubt that the quality, location and age of our
assets together with improving sustainable credentials witnessed by
our recent GRESB (Global Real Estate Sustainability Benchmark)
award of four Green Stars out of a maximum of five should give
confidence for the future as we look to build on the continuing
European logistics story."
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.
Further details on the Company and its property portfolio may be
found on the Company's website which can be found at:
http://www.eurologisticsincome.co.uk
For further information please contact:
Aberdeen Standard Fund Managers Limited +44 (0) 20 7463 6000
Luke Mason
Gary Jones
Investec Bank plc +44 (0) 20 7597 4000
Dominic Waters
Neil Brierley
Will Barnett
Alice Douglas
David Yovichic
Denis Flanagan
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END
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