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To provide a regular and attractive level of income and capital growth from investing in high quality European logistics real estate.
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From this report
https://quoteddata.com/research/abrdn-european-logistics-income-negotiating-choppy-waters-qd/
Looks like ASLI is well under valued.
Agree they look interesting here but also like SERE which pays special dividends on top ..making it a better yielder
Unlucky, but as you say, they still look good value at 75. I thought they were looking good value some months back when I was buying them at over a quid!
Y darn it I did actually klik last week for YA double-down under 70, but AJB didn't fulfill and I couldn't be bothered to call up and trade over phone. Aarg! It's still attractive at 75, but I have lots already. SGRO.L also interesting, I wish they paid better divvy.
In today’s Sunday Times, Oliver Shah tips SEGRO as the ‘only listed player of real scale’ in the logistics property sector, arguing that ‘property companies have been oversold in general’ and that with a 37% discount to assets, ‘SEGRO is looking very cheap in particular’.
By my calculations, with an SP of 68.5 and the latest update giving a NAV of 114.1, ASLI are trading at a 40% discount to NAV.
Agree. I just topped up.
I’m happy to buy more ASLI at this price which is yielding 7% and where 68% of their revenue is index linked. It certainly seems to offer better value for money than it’s peer group (BBOX, EBOX etc.).
Thank you Pedro Bull.
We can look at this last trade of the day both ways. There was someone keen to sell 1 million shares; there also was someone interested to buy 1 million shares at that price.
According to the company, two thirds of their leases have uncapped inflation pass-through clause. To me, that is the attractiveness vs. nominal bonds.
For those - like me - who were not sure what an uncrossing trade was, here is the Stockopedia explanation:
"During the auction period, there may be a point (or price) at which the best BID and best ASK match and a trade takes place. This trade on the London Stock Exchange (LSE) is known as an Uncrossing Trade. "
slow decline all day with a big drop into the close Uncrossing Trade at 68.30p for 1,100,418 shares £751K
I think the interest rate tightening makes bond proxies less appealing as if you can 4% on cash why hold shares?
Its a bear until it isn't then snap back!
no-one rings a bell
hello - Share price lost 10% this Friday afternoon. There is no announcement on the company's website and a google search does not reveal any new information. Does anybody have a view on what caused such a 10% drop?
Putting this another way, you're evaluating the NAV as worth 20% less than it was before they announced that recent hikes may reduce their earnings by 10% over the next year.
Am I right that you're getting the same share for 80p today that got 109p in the oversubscribed offering a few weeks ago? i.e., you get 30% more biz for the same money?
Yes Pedro, apparently full indexation applies to 68% of their rentals which is comforting. Also their income is in Euros so will benefit UK holders if (when?!) the £ falls v the Euro. After posting a decent set of results today I was staggered to see the SP go down by another 7%! Fortunately the market seems to have woken up to the fact that ASLI is not so bad after all! Now up 2% on the day as I post this. Fingers crossed that this is not the end of the SP recovery.
The market is treating this like a high-risk asset which I don't understand, maybe it is untested, LXI and Assura the same.
Worth a re-read of this from ASLI especially INDEXATION!
Evert Castelein, Lead Fund Manager, added:
"With more than half the portfolio by value now weighted to high growth urban logistics assets, following the milestone Madrid acquisition which deployed the proceeds of September's capital raise within three months, the Company is well positioned to deliver further shareholder value. The attractive indexation characteristics of the portfolio leases and competitive advantage afforded by abrdn's extensive network of local real estate professionals across Europe further underpin the compelling investment case.
Wow, only 76 pence at today’s close!
I bought a few more today to try and average down because on the face of it, this is a secure dividend paying IT which, given its European assets, will benefit from any £ drop against the euro. Their borrowing is at a fixed low interest rate, their warehouse products appear to be in high demand and in the last update, they reported they’d collected 100% of rent due but yet the discount to NAV is now well over 20%. Now I can understand why utility style dividend shares are less popular given the hike in bank rates but isn’t this fall overdone? Am I missing something?
30th May 2022 RNS
Evert Castelein, Fund Manager, abrdn, commented:
"It is very pleasing to report another quarter of NAV growth. This reflects both the strength of the European logistics market and the high quality nature of our diversified, modern portfolio.
"Logistics is a long-term growth story, fuelled by the acceleration of e-commerce across Europe, and increasingly the changes in how companies manage their supply chains. There continues to be an acute supply-demand imbalance across the entire European logistics market, with vacancy rates sitting at historically low levels and this is particularly true in urban areas where there is greater demand from other land uses. Our portfolio is also well positioned to benefit from rising inflation, with 70% of the portfolio's current income subject to full annual indexation."
Performance
The unaudited portfolio valuation increased by €16.8 million in the quarter, or 2.5%, on a like-for-like basis.
For the 12 month period to 31 March 2022, the Company's net asset value total return was 13.0% in Euro terms (12.1% in sterling terms).
I'm happy holding and adding to ASLI, urban last mile logistics can only grow or at least deliver inflation matching yields.
Tony Roper, Chairman, commented: "2021 was a stand-out year for the Company and for the wider European logistics real estate asset class. While the onset of the pandemic in early 2020 created significant uncertainty across all sectors, this ultimately led to an acceleration of the key structural drivers underpinning the logistics sector. Having been a first mover in the UK listed arena, making our initial investments in early 2018, the Company continues to benefit from sector tailwinds, delivering a double-digit net asset value total return for the second year running. The Company's 2021 sector leading GRESB rating was a further endorsement of our strategy."
Evert Castelein, Lead Fund Manager, added:
"With more than half the portfolio by value now weighted to high growth urban logistics assets, following the milestone Madrid acquisition which deployed the proceeds of September's capital raise within three months, the Company is well positioned to deliver further shareholder value. The attractive indexation characteristics of the portfolio leases and competitive advantage afforded by abrdn's extensive network of local real estate professionals across Europe further underpin the compelling investment case. 2021 was a record year for European logistics take up, with record low vacancy seen across a number of markets. We expect 2022 to continue in this vein, supporting favourable rental and capital growth."
ASLI's share offers do nothing for investor confidence...prefer ASEI if you want to stay with ABDN, if not there are other REITS /property companies worth a look.
Segro have today posted some excellent EOY results (which hopefully bodes well for ASLI!):
"Warehouse property investor Segro reported an adjusted net asset value per share of 1,137 pence at the end of 2021, up 40% from 814p a year before. This beat company-compiled consensus of 998p. Pretax profit for 2021 multiplied to GBP4.36 billion from GBP1.46 billion in 2020. "2021 was a highly successful year for Segro as reflected in our full year results which include a GBP4.1 billion portfolio valuation uplift and record levels of rental growth. Investor and occupier supply-demand dynamics in the industrial and logistics sector remain very favourable, led by the long-term trends of digitalisation, supply chain resilience and an increasing focus on sustainability," said Chief Executive David Sleath."
My own view is that this is an ok reit as it offers something different with the European dimension, but there are better run logistics and mixed asset reits with a uk focus in my view. Lxi is my most recent favourite after v good results again this week and it’s currently on about a 4.2% divi yield with 5% growth in the divi target into next year. Asli still ok though for long term and I’ve got a chunky position in it which I intend to sit on - but wondering whether to add with the PB offer……
If it’s correct that you can only subscribe to the offer via Primary Bid, that’s disappointing.
Nevertheless, as a seeker of secure income shares, I think this is a great place for my cash with a solid 4+% yield. What types of share are you looking for adv11 and would you care to share your ideas for better investments?
...but they do value us.
To be honest, it will probably be possible to buy at around 110p before the placing finalises, so only the dealing costs to bother about. But plenty of better places for my cash.
Only offered via PrimaryBid so no use to ISA holders!
Hi katenip, SERE is similar and trades at 20% discount to NAV pays a healthy divi however I see it invests mainly in Offices and Retail and recently wrote off a retail let in Seville.
I'll stick with ASLI as it is purely logistics which is where the market is going.
check out SERE