TIDMASLI
RNS Number : 1034Q
Aberdeen Standard Eur Lgstc Inc PLC
24 February 2021
Aberdeen Standard European Logistics Income PLC
LEI: 213800I9IYIKKNRT3G50
Unaudited Net Asset Value as at 31 December 2020 and Declaration
of Fourth Interim Dividend
STRONG VALUATION UPLIFT AND RENT COLLECTION FROM HIGH-QUALITY
PORTFOLIO SOLELY FOCUSED ON FAST GROWING EUROPEAN LOGISTICS
SECTOR
24 February 2021 - Aberdeen Standard European Logistics Income
PLC (LSE: ASLI), the Company which invests in high quality European
logistics properties, today provides a Company update and announces
its unaudited quarterly Net Asset Value ("NAV") and dividend for
the quarter to 31 December 2020.
Highlights
-- NAV per Ordinary share increased by 6.6% to 120.1c (GBp -
107.9p) (30 September 2020: 112.7c (GBp - 102.9p)), reflecting a
NAV total return of 20.0% (13.6% in Euro terms) 1 for the 12 months
to 31 December 2020 (Exchange rate GBP1 : EUR1.11 (30 September
2020: GBP1 : EUR1.10)
-- Portfolio valuation up 6.0%, or EUR24.5 million, to EUR430.2
million (30 September 2020: EUR405.7 million)
-- 100% of the rent due for the quarter ended 31 December 2020 collected
-- EUR28 million acquisition of a new warehouse in Poland
expected to complete in Q1 2021, following which the portfolio will
comprise 15 strategically located, modern and diversified European
logistics assets
-- The Company declares a fourth interim dividend of 1.24 pence
per Ordinary share in respect of the year ended 31 December,
dividends in respect of the year ended 31 December 2020 will total
4.96 pence per Ordinary share
-- Improving portfolio sustainability metrics with the award of
four out of five Green Stars by GRESB ("Global Real Estate
Sustainability Benchmark")
Tenant Update
The Company has been made aware that Office Dépôt France, the
sole tenant occupying its Meung-sur-Loire asset in France, has
sought court protection and the appointment of an administrator.
The property serves as the tenant's key national distribution hub,
reflecting its strategic location in one of France's
fastest-growing logistics regions.
As at 31 December 2020 the property was valued at EUR27.9
million, or 6.5% of the portfolio GAV. The annual passing rent on
the property represents 6.4% of the overall portfolio annual
contracted rent.
The warehouse has attractive qualities and is ideally located
for national distribution just south of Orleans and close to main
motorways towards Bordeaux/ Northern Spain and towards Marseille/
Lyon/ Toulouse. This location has grown in importance due to the
lack of greenfield locations in and around Paris.
While the Q4 2020 rent was paid in full, the invoice for the
quarterly in advance rent for Q1 2021 has not been collected.
However, the Company benefits from a three month rental security
deposit and will provide a further update in due course.
Declaration of Fourth Interim Dividend
The Directors have today declared a fourth interim dividend of
1.41 euro cents (equivalent to 1.24 pence) per Ordinary share, in
respect of the year ended 31 December 2020 (2019: 1.41 euro cents).
This fourth interim dividend will be paid in sterling on 26 March
2021 to Ordinary shareholders on the register on 5 March 2021
(ex-dividend date of 4 March 2021).
The Company intends 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.
Any such dividend payment to Shareholders may take the form of
either dividend income or "qualifying interest income" which may be
designated as an interest distribution for UK tax purposes and
therefore subject to the interest streaming regime applicable to
investments trusts.
Of this fourth interim dividend declared of 1.24 pence per
Ordinary share, 0.80 pence is declared as dividend income with 0.44
pence treated as qualifying interest income.
Performance
For the year to 31 December 2020, the share price total return
(with dividends reinvested) was 26.6%. The net asset value total
return over the same period was 20.0% (13.6% in Euro terms).
Acquisition
Advanced due diligence continues on the purchase of a recently
constructed 34,000 sqm warehouse in Poland, for approximately EUR28
million, reflecting a net initial yield of 5.5%. Subject to the
necessary approvals, the Investment Manager expects the transaction
to close by the end of Q1 2021. The property is fully let to seven
tenants with an average WAULT of over six years. Representing the
Company's third property in Poland, the brand-new, high
specification, building is one hour's drive from Warsaw and is
strategically located close to a container terminal offering
excellent connectivity to Western Europe.
Financing
The Company level loan to value ratio is currently 31.4%, below
the long term target of 35.0%. The EUR40 million uncommitted loan
agreement with Investec Bank has been executed and is now available
for drawdown, providing additional flexibility in respect of cash
management. The new facility will help to avoid cash drag and,
along with EUR24.4 million of available cash, provides liquidity as
well as funds for future acquisitions.
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 October 2020
to 31 December 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 September 2020 112.7 275.7
------------ --------------- -----------------------------
Capital values increased
EUR24.5m, a 6% increase
on a like-for-like basis
in respect of 14 assets
Positive acquisition
costs relate to a final
Unrealised change true up of the acquisition
in valuation of price related to ASLI's
property portfolio 10.0 24.5 Warsaw investment
------------ --------------- -----------------------------
Acquisition costs
during the period 0.4 1.0
------------ --------------- -----------------------------
Income from the property
portfolio and associated
running costs. Dividend
Income earned during cover for the 12 months
the period 2.1 5.2 to 31 December was 94%.
------------ --------------- -----------------------------
Expenses for the
period (0.8) (2.1)
------------ --------------- -----------------------------
Net deferred tax liability
on the difference between
book cost and fair value
Deferred tax liability (2.8) (7.1) of the portfolio
------------ --------------- -----------------------------
Movement in the mark
to market value of a
dividend hedge rolled
forward in Q4 to fix
FX hedge mark to the EUR:GBP conversion
market revaluation 0.0 0.1 of the 2020 dividend
------------ --------------- -----------------------------
Third interim dividend
of 1.24 pence (1.41
Dividend paid 30 euro cents) per Ordinary
December 2020 (1.4) (3.4) share
------------ --------------- -----------------------------
Other movements Movement in lease incentives
in reserves (0.1) (0.3) in the quarter
------------ --------------- -----------------------------
Net assets as at
31 December 2020 120.1 293.6
------------ --------------- -----------------------------
EPRA Net Tangible Assets per share is 126.5 Euro cents, which
excludes deferred tax liability and fair value of the FX
derivative.
Net Asset Value analysis as at 31 December 2020 (unaudited)
EURm % of net assets
Property Portfolio 430.2 146.5%
-------- ----------------
Adjustment for lease incentives (5.0) (1.6%)
-------- ----------------
Fair value of property
portfolio 425.2 144.9%
-------- ----------------
Cash 24.9 8.5%
-------- ----------------
Other Assets 10.8 3.6%
-------- ----------------
Total Assets 460.9 157.0%
-------- ----------------
Bank Loans (143.3) (48.8%)
-------- ----------------
Other Liabilities (8.4) (2.9%)
-------- ----------------
Deferred Tax Liability (15.6) (5.3%)
-------- ----------------
Total Net Assets 293.6 100.0%
-------- ----------------
The property portfolio valuation is based on the independent
external valuation of the Company's direct property portfolio
undertaken by CBRE GmbH.
The NAV per share at 31 December 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, Fund Manager, Aberdeen Standard Investments,
commented:
"It is pleasing to see the quality of the portfolio being so
clearly reflected in this latest valuation, with a strong 6%
uplift. Increasing online retail sales penetration and the focus on
more resilient supply chains by building inventory levels and
near-shoring of manufacturing activities continues to support
demand for well specified logistics assets, underpinning valuations
and the Company's investment strategy.
"We continue to see strong levels of rent collection, reflecting
the quality of our tenant mix and critical nature of the assets.
Nonetheless we understand that the pandemic continues to affect
businesses globally, despite early indications of vaccine
successes. We remain in close contact with our tenants and
available to support them where and when required, through ASI's
strong 'on the ground' local network. This includes working through
the situation with the Office Dépôt France asset, where we are
confident of finding a resolution due to the quality of the asset
and its strong location."
Tony Roper, Chairman of the Company, added:
"The quality, location and age of our assets together with
improving sustainability credentials, as demonstrated by our recent
GRESB Award, provides confidence for the future. To date the
portfolio has delivered attractive returns for our shareholders and
today's update illustrates the increasing value of the assets
sourced by our Investment Manager and the value of long term
indexed income which many of our shareholders recognise. With their
support, it remains the Board's intention to continue scaling the
Company, further diversifying the asset and tenant base and
improving the quality and visibility of the income."
The Board is not aware of any other significant events or
transactions which have occurred between 31 December 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:
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
FTI Consulting +44 (0) 20 3727 1000
Dido Laurimore
Richard Gotla
James McEwan
The above information is unaudited.
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END
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