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(Alliance News) - Aberdeen Standard European Logistics Income PLC on Thursday reported a rise in net assets in 2019 as the trust more than doubled its portfolio assets.
At December 31, the logistics real estate investment trust's NAV per share stood at EUR1.11, 2.8% higher than the EUR1.08 seen at the same point the year before.
Aberdeen Standard European Logistics's net assets rose 29% to EUR260.3 million from EUR202.1 million. The trust issued 47.0 million new shares during 2019.
The trust's portfolio value ended 2019 at EUR348.5 million compared to EUR148.9 million at the end of 2018. Aberdeen Standard European Logistics attributed the sharp rise to "strong" valuation uplifts and the capital raise during the year.
The portfolio ended the year with a loan-to-value ratio of 28.4% and upped its number of assets to 13 from 6 in 2018.
The trust declared a 5.75 euro cent dividend for 2019, up from the 1.7p distributed in 2018.
As a result, the trust's NAV total return in 2019 was 8.6%, ahead of its own 7.5% annual target.
The trust's Investment Manager, Aberdeen Standard Investments Ireland, said: "Setting aside the unprecedented economic environment we now find ourselves in post year end, in a little over 2 years since the launch of the company we have invested EUR400 million in the purchase of 14 warehouses across 5 countries in Europe.
"Durability of the income stream has been a key focus for this income driven strategy which the investment manager believes can only be achieved by a selective approach targeting the more liquid 'mid-box' segment of the logistics market with a preference for warehouses with modern specifications in established locations. We have now built up exposure in the urban segment of the logistics market where there are high growth expectations related to the scaling up of e-commerce and where many parcel delivery specialists are seeking to get closer to their end consumers."
Going forward, the trust noted it has received 100% of the rent owed in the first quarter of 2020. It has received 67% of rent owed in the second quarter, but this is expected to rise to 82%.
Aberdeen Standard European Logistics is "mindful" of further dents to its tenants performance but intends to continue to pay quarterly dividends.
Chair Tony Roper added: "Notwithstanding the unprecedented economic environment we are now operating within, the board and investment manager continue to believe that logistics will remain one of the most favoured sectors for investors in the coming years. The logistics industry is experiencing unprecedented disruption as a result of systemic changes to the way global economies are functioning and these challenges are manifesting themselves in different ways across different sectors. So far, logistics assets have benefited from additional occupier demand arising from necessary supply chain restructuring."
By Paul McGowan; paulmcgowan@alliancenews.com
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