TIDMASLI
RNS Number : 6252Z
Aberdeen Standard Eur Lgstc Inc PLC
24 May 2021
Aberdeen Standard European Logistics Income PLC
LEI: 213800I9IYIKKNRT3G50
Unaudited Net Asset Value as at 31 March 2021 and Declaration of
First Interim Dividend
ASSET QUALITY AND SECTORAL HEADWINDS DRIVE PORTFOLIO UPLIFT
PROSPECTIVE PIPELINE SUPPORTING GROWTH AMBITIONS
24 May 2021 - Aberdeen Standard European Logistics Income PLC
(LSE: ASLI), the Company which invests in high quality European
logistics properties, announces its unaudited quarterly Net Asset
Value ("NAV") and dividend for the quarter to 31 March 2021.
Highlights
-- NAV per Ordinary share increased by 1.25% to 121.6c (GBp -
103.6p 1 ) (31 December 2020: 120.1c (GBp - 107.9p)), reflecting a
NAV total return of 13.1% (in Euro terms) for the 12 months to 31
March 2021
-- Portfolio valuation increased by 1.6%, or EUR6.9 million, to
EUR437.1 million (31 December 2020: EUR430.2 million), primarily as
a result of further yield compression
-- 97% of the rent due for the quarter ended 31 March 2021 collected
-- Oversubscribed issue of 18.45 million new Ordinary shares at
a price of 105p per share, raising GBP19.4 million in gross issue
proceeds
-- EUR28 million acquisition of a new warehouse in Lodz, Poland,
completed in April 2021, representing a net initial yield of 5.6%,
following which the portfolio now comprises 15 strategically
located, modern and diversified European logistics assets
-- In exclusivity on the purchase of an urban logistics asset,
located in a large supply constrained city in Spain, for c.EUR20
million
-- The Company declares a first interim dividend of 1.41 euro
cents (equivalent to 1.21 pence) per Ordinary share in respect of
its financial year ending 31 December 2021.
New Acquisitions
In April the Company announced the purchase of a 31,500 square
metre property, consisting of 27,888 sqm of warehouse space and
3,612 sqm of office space, for EUR28 million. The asset is 100%
leased, generating a net operating income of EUR1.59 million and
has a weighted average lease term of 6.2 years.
Tenants at the asset include manufacturers Bilplast, Tabiplast
and Alfa Laval, logistics operator EGT Express Polska, retailer
KAN, which owns the Polish fashion brand Tatuum, and Compal, one of
the world's largest computer component manufacturers, which signed
a new 7-year lease in February 2021 and supplies the DELL factory
located less than 1 kilometre from the site.
Located in Lodz, at the centre of Poland's thriving industrial
and manufacturing sector, the site benefits from access to the
Intermodal Container Terminal, created to support the Bosch-Siemens
campus, which offers direct rail connections with China. Lodz is
Poland's third largest city by population and is home to several
universities. The Panattoni Park site is highly accessible by local
public transport and the A1 and A2 motorways which provide North
South, East West access across Europe, whilst Lodz international
airport is just 15 minutes away.
The Company also announces that it is in exclusivity to acquire
a fully let urban logistics asset located in Spain. It currently
expects that the transaction, which will be immediately earnings
accretive, will close by the end of June 2021 once due diligence
has been completed. Having financed the acquisition of the Lodz
asset with the proceeds from the recent oversubscribed equity
issue, this new acquisition will initially be financed using the
Company's uncommitted loan facility, avoiding associated cash drag.
In due course, the Company intends to refinance this asset with
long-term fixed debt, taking advantage of the favourable lending
opportunities available to the Company.
Subject to completion, this acquisition will represent the
Company's sixteenth asset, taking the Company's gross assets to
over EUR500 million, diversified across five countries.
Further updates will be provided following completion of the due
diligence process.
Meung-sur-Loire Tenant Update
A French court hearing is expected to be held shortly to
consider the administrator's proposals in relation to offers made
for the whole business of Office Dépôt France, the sole tenant
occupying the Meung-sur-Loire asset in France. 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 previously stated, the administrator continues to pay
rent under the terms of the lease and the Company benefits from a
three month rental security deposit.
Declaration of First Interim Dividend
The Directors have today declared a first interim dividend of
1.41 euro cents (equivalent to 1.21 pence) per Ordinary share, in
respect of the year ended 31 December 2021 (2020: 1.41 euro cents).
This first interim dividend will be paid in sterling on 25 June
2021 to Ordinary shareholders on the register on 4 June 2021
(ex-dividend date of 3 June 2021).
In line with stated policy, the Company declares interim
dividends to Shareholders in respect of the quarters ending 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 first interim dividend declared of 1.21 pence per
Ordinary share, 0.80 pence is declared as dividend income with 0.41
pence treated as qualifying interest income.
Performance
For the year to 31 March 2021, the share price total return
(with dividends reinvested) was 24.8%. The net asset value total
return over the same period was 13.1% in Euro terms (8.9% in
sterling terms) .
Equity Issue
On 10 March 2021, the Company announced a non-pre-emptive issue
of new Ordinary shares for up to 18.45 million shares, representing
the total remaining authority granted by shareholders at the Annual
General Meeting of the Company held on 30 June 2020. On 12 March
2021, the Company announced that the issue was oversubscribed and
that 18.45 million new shares had been issued at a price of 105
pence per share, raising gross issue proceeds of GBP19.4 million.
The Board was very pleased with the support shown from existing and
new shareholders.
Financing
The Company level loan to value ratio is currently 29.5%. This
figure will increase subject to the completion of the planned
acquisition, however it will remain well below the long term target
of 35.0%, providing additional capacity to fund the Company's
pipeline.
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 2021
to 31 March 2021. 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 2020 120.1 293.6
------------ --------------- ------------------------------
Capital values increased
EUR6.9m, a 1.25% increase
on a like-for-like basis
in respect of 14 assets.
Capital expenditure
at the Company's Ede
warehouse in the Netherlands
relates to preparatory
Unrealised change roof works to facilitate
in valuation of the installation of
property portfolio 2.6 6.9 solar panels.
------------ --------------- ------------------------------
Capital expenditure
during the period (0.1) (0.3)
------------ --------------- ------------------------------
Income from the 14 property
Income earned during portfolio and associated
the period 2.1 5.6 running costs.
------------ --------------- ------------------------------
Expenses for the
period (0.9) (2.5)
------------ --------------- ------------------------------
Net deferred tax liability
on the difference between
book cost and fair value
Deferred tax liability (0.8) (2.1) of the portfolio.
------------ --------------- ------------------------------
Movement in the mark
to market value of a
hedge entered into in
March 2021 to fix the
FX hedge mark to EUR:GBP conversion of
market revaluation 0.0 0.1 the 2021 dividend.
------------ --------------- ------------------------------
Fourth interim dividend
of 1.41 euro cents (1.24
Dividend paid 26 pence) per Ordinary
March 2021 (1.4) (3.4) share.
------------ --------------- ------------------------------
Share issuance Issue of 18,450,000
16 March 2021 0.1 22.3 Ordinary shares.
------------ --------------- ------------------------------
Foreign currency Foreign currency gain
gain 0.1 0.2 in the period.
------------ --------------- ------------------------------
Other movements Movement in lease incentives
in reserves (0.2) (0.6) in the quarter.
------------ --------------- ------------------------------
Net assets as at
31 March 2021 121.6 319.8
------------ --------------- ------------------------------
EPRA Net Tangible Assets per share is 128.4 Euro cents, which
excludes deferred tax liability and fair value of the FX
derivative.
Net Asset Value analysis as at 31 March 2021 (unaudited)
EURm % of net assets
Property Portfolio 437.1 136.7%
-------- ----------------
Adjustment for lease incentives (5.2) (1.6%)
-------- ----------------
Fair value of property
portfolio 431.9 135.1%
-------- ----------------
Cash 47.1 14.7%
-------- ----------------
Other Assets 11.7 3.7%
-------- ----------------
Total Assets 490.7 153.5%
-------- ----------------
Bank Loans (143.4) (44.8%)
-------- ----------------
Other Liabilities (9.8) (3.0%)
-------- ----------------
Deferred Tax Liability (17.7) (5.7%)
-------- ----------------
Total Net Assets 319.8 100.0%
-------- ----------------
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 March 2021 is based on 262 ,950,001
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:
"The quality of the portfolio continues to be reflected in
increasing valuations, with a further 1.6% uplift delivered over
the most recent quarter. Alongside an ever-widening pool of
businesses needing to future proof their operations to meet
increasing e-commerce penetration, as the successful vaccination
roll out gains momentum, we expect economies to rebound, which will
further support consumer spending.
"Closing the Lodz deal in early April added another high quality
asset to the portfolio, whilst enabling us to quickly deploy the
funds raised in March. The pipeline remains strong, with the
Company in exclusivity to purchase a well-located urban logistics
warehouse with strong growth prospects. In line with our strategy,
the modern property, built in 2019, is located in a market
characterised by a shortage of high quality warehouse space, which
underpins our confidence that this asset, which will be immediately
earnings enhancing, will deliver on its return potential in the
medium term.
"At a macroeconomic level, we are entering a period of rising
inflation. Against this backdrop, we believe the long income nature
of our assets, with annual indexation, is an even more compelling
investment proposition and protection against the threat of rising
interest rates."
Tony Roper, Chairman of the Company, added:
"Despite growing competition for exposure to the industrial
sector, we continue to benefit from our Manager's network of local
teams across Europe and execution track record, allowing us to
originate and transact on earnings accretive opportunities. Our
ambition to continue scaling the Company remains undimmed, building
on a first mover position established at IPO in 2017, to further
diversify the asset and tenant base and improve the quality and
visibility of the income. The portfolio continues to deliver
attractive returns for our shareholders and today's update again
illustrates the value of the assets sourced by our highly
experienced Investment Manager and the appeal of long term indexed
income to our shareholders."
The Board is not aware of any other significant events or
transactions which have occurred between 31 March 2021 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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