TIDMASLI
RNS Number : 7322K
Aberdeen Standard Eur Lgstc Inc PLC
30 August 2019
Aberdeen Standard European Logistics Income PLC
LEI: 213800I9IYIKKNRT3G50
Net Asset Value as at 30 June 2019
30 August 2019: Aberdeen Standard European Logistics Income PLC
(LSE: ASLI) (the "Company" or "ASLI") announces its unaudited
quarterly Net Asset Value ("NAV") as at 30 June 2019.
Highlights
-- NAV per Ordinary share of EUR1.07 as at 30 June 2019 (31
March 2019 - EUR1.06) (GBP - 95.85p, 31 March 2019 GBP - 91.13p).
Exchange rate GBP1:EUR1.11 (31 March 2019: GBP1:EUR1.16).
-- Portfolio capital value has increased by 1.7% since 31 March
2019 (after capital expenditure and acquisition costs, including
those relating to the Leon warehouse acquired in the quarter). The
Company's high quality and well-diversified European logistics
portfolio is now valued at EUR272.7 million.
-- In July, the Company raised gross proceeds of GBP46.4 million
(EUR51.8 million at the then prevailing exchange rate) through a
placing, open offer and offer for subscription of Ordinary shares,
with the proceeds expected to be deployed shortly in the
acquisition of two logistics warehouses in Poland and the
Netherlands.
-- A new 12-month share issuance programme put in place
providing the Company with the flexibility to raise fresh equity
proceeds for deployment in a timely and cost-effective fashion
through the issue of up to 200 million Ordinary Shares and/or C
Shares in aggregate.
-- The first interim dividend of 1.27 pence per Ordinary share
in respect of the year ending 31 December 2019 was paid on 10 July
2019.
Completion of acquisitions and debt financing
-- During the quarter the Company completed three acquisitions
with a net value of EUR60.25 million. The Company:
Ø Completed the acquisition of a newly built freehold logistics
warehouse in Leon, Spain for a net value of EUR15.3 million,
providing a net initial yield of 6.2%. The warehouse is located in
a logistics park near Leon city centre and its airport with
excellent road connections to the AP71, A66 and A231.
Ø Announced that the remaining forward funded project in Oss,
the Netherlands, built in conjunction with developer Heembouw Breda
B.V., had been handed over to its new tenant, Orangeworks, and that
is therefore now fully income producing. The purchase price of
EUR15.7 million provides a net initial yield of 5.3%.
Ø Completed on the newly built warehouse in Zeewolde, the
Netherlands, for the previously indicated purchase price of
EUR29.25 million, providing a net initial yield of 5.0%.
Since the quarter end, the Company has completed the acquisition
of a freehold logistics warehouse in 's Heerenberg, the
Netherlands, for a net purchase price of EUR24.0 million, providing
an expected net initial yield of 5.0%. The acquisition was in part
financed through a six year term loan from Berlin Hyp for a total
value of EUR8.0 million, at an attractive all-in interest rate.
Share issuance
On 26 July 2019, the Company announced that it had raised gross
proceeds of approximately GBP46.4 million (equivalent to
approximately EUR51.8 million at the then prevailing exchange rate)
through the issue of 47 million new Ordinary Shares pursuant to a
placing, open offer and offer for subscription.
These proceeds will be used to help fund the pipeline of
attractive investment opportunities identified by the Company's
Investment Manager, in particular two logistics warehouses in
Poland and the Netherlands.
The Company also put in place a new share issuance programme in
July, pursuant to which it has the ability to issue up to 200
million Ordinary Shares and/or C Shares in aggregate. The programme
is flexible and may have a number of closing dates, providing the
Company with the ability to issue Shares on appropriate occasions
over a 12 month period in a timely and cost-effective fashion to
fund further acquisitions from its strong pipeline of investment
opportunities.
Investment Manager Commentary
At the end of June, following the addition of the newly built
warehouses in Oss and Zeewolde, together with the completion of
Leon, the Company's portfolio consisted of ten properties, spread
across five countries, with a total net market value of EUR272.7
million. In July, the portfolio increased to eleven properties
following the completion of 's Heerenberg for EUR24 million.
ASLI's portfolio is geographically well-diversified, with assets
located in the Netherlands, one of the most attractive logistics
markets in Europe, representing the largest allocation in the
portfolio (44% of gross asset value incl. 's Heerenberg). As at 30
June, the weighted average unexpired lease term of the portfolio
was 9.1 years including breaks and 10.2 years excluding breaks
(both incl. 's Heerenberg).
The debt strategy of the Company is to finance properties in
countries such as the Netherlands, France and Germany, where
funding costs are low. We were particularly pleased with the June
financing, secured against assets in Ede, Oss and Waddinxveen for a
total amount of EUR37.7 million over a fixed six year term, which
was implemented at an attractive all-in interest rate of 1.22% per
annum. In July, the EUR8 million fixed six year loan secured on 's
Heerenberg proved even more competitive as Euribor slid further
into negative territory.
The additional equity raised in July will enable us to acquire
two newly built warehouses in the Netherlands and Poland where we
have strong ties through our dedicated transaction managers. These
acquisitions will further diversify the portfolio and tenant base,
with completion announcements expected in September/October
following the conclusion of our detailed due diligence process.
After completion of these investments, gearing is expected to stay
close to the targeted 35%.
Aberdeen Standard Investments is the second largest property
investor in Europe (in terms of assets under management) and
benefits from both transaction and asset management teams based
locally across all major European logistics hubs, differentiating
us from many other investors. Thanks to a team-based approach we
have built a very well-diversified, high quality property portfolio
(eight warehouses are newly built) with long leases to strong
covenant tenants. Adding value to the portfolio is a key objective
with the installation of solar photovoltaic cells a key focus over
the next 12 months. We aim to further improve the Company's green
performance with additional initiatives and we will maintain active
engagement with our tenants to ensure their ongoing satisfaction
with the properties they occupy. In addition, we will continue to
pro-actively explore extension opportunities for certain properties
with low site coverage, working closely with our tenants as they
seek to grow their businesses.
The European logistics market continues to modernise rapidly
with growing tenant demand fuelled by the rapid growth of
e-commerce across Europe and the consequent supply chain
reconfiguration as operators embrace the rapid pace of
technological advancement. Of note is the acceleration of interest
and demand amongst logistics occupiers to adhere to higher ESG
standards and we recognise and embrace this fundamental change in
occupational demand for suitable buildings.
We believe that there continues to be attractive occupier
dynamics in the market that will support income growth, and
ultimately increasing capital values, underpinned by longer,
index-linked leases which typically offer annual CPI adjustments
providing for transparent and predictable cash flows.
Breakdown of NAV movement
Set out below is a breakdown of the change to the unaudited net
asset value per Ordinary share calculated under International
Financial Reporting Standards ("IFRS") over the period from 1 April
2019 to 30 June 2019.
Aberdeen Standard Per Share Attributable Comment
European Logistics (EURcents) Assets (EURm)
Income
Net assets as at 31
March 2019 105.8 198.3
------------ --------------- -----------------------------
Portfolio of 10 assets,
capital value increased
1.7% (after capital
expenditure and acquisition
costs) compared to
March 2019 and including
the property acquired
in Leon in the quarter.
The forward funding
assets in Oss and Zeewolde
both completed in the
Unrealised increase quarter and represent
in valuation of property the majority of capital
portfolio 10.1 18.9 expenditure incurred.
------------ --------------- -----------------------------
Capital expenditure
during the period (7.9) (14.8)
------------ --------------- -----------------------------
Income from the increased
property portfolio
Income earned for and associated running
the period 1.5 2.9 costs.
------------ --------------- -----------------------------
Expenses for the period (0.8) (1.3)
------------ --------------- -----------------------------
Movement in the mark
to market value of
a dividend hedge entered
into in Q1 2019 to
FX hedge mark to market fix the EUR:GBP conversion
revaluation (0.2) (0.4) of the annual dividend.
------------ --------------- -----------------------------
First interim dividend
Dividend declared of 1.27 pence per Ordinary
12 June 2019 (1.4) (2.7) Share.
------------ --------------- -----------------------------
Net assets as at 30
June 2019 107.1 200.9
------------ --------------- -----------------------------
The EPRA NAV per share is 107.3 Euro cents, which excludes
deferred tax and fair value of the FX derivative.
Net Asset Value analysis as at 30 June 2019 (unaudited)
EURm % of net assets
Total Property Portfolio 272.7 135.8%
---------- ----------------
Adjustment for lease incentives (0.4) (0.2%)
---------- ----------------
Fair value of Property
Portfolio 272.3 135.6%
---------- ----------------
Cash 23.7 11.8%
---------- ----------------
Other Assets 10.4 5.2%
---------- ----------------
Total Assets 306.4 152.6%
---------- ----------------
Bank Loans (92.9) (46.3%)
---------- ----------------
Current liabilities (11.8) (5.9%)
---------- ----------------
Deferred tax liability (0.8) (0.4%)
---------- ----------------
Total Net Assets 200.9 100%
---------- ----------------
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 30 June 2019 is based on 187,500,001 shares
of 1 pence each, being the total number of shares in issue at that
time.
Tony Roper, Chairman, commented:
"Based on healthy fundamentals, the medium to long term outlook
for the logistics sector remains very favourable. Structural shifts
in consumption patterns in Europe, which have lagged the UK's
progress, and overall demand drivers are expected to remain
supportive. Our portfolio of high-quality, well-located, warehouses
with long indexed leases should underpin yield and capital growth
expectations.
The recent equity issue, with the relevant gearing applied, will
enable the Investment Manager to secure two additional newly built
warehouses, further diversifying the portfolio by asset and tenant
base. It is particularly pleasing to note the quality of the assets
assembled in the portfolio by our Investment Manager. As market
conditions allow, the intention remains to grow the portfolio with
additional acquisitions through further capital raises using the
twelve month share issuance programme approved recently by our
shareholders."
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 may also be found on the Company's
website which can be found at:
http://www.eurologisticsincome.co.uk
For further information please contact:
Charles Mearns
Aberdeen Asset Management PLC
0131 528 4000
The above information is unaudited.
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END
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