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(Alliance News) - abrdn European Logistics Income PLC on Monday reported an increase in net assets in its first quarter, due to inflation-linked rental growth.
abrdn European is a Europe-focused investor in logistics real estate.
Its net asset value per share at March 31 stood as at 131.6 euro cents, up 1.9% from 129.1 cents as at December 31.
For the 12 months to March 31, the abrdn European’s net asset value total return was 13% in euro terms.
abrdn European's portfolio value grew 2.5% on a like-for-like basis over the quarter to EUR682.8 million.
The firm attributed this performance to inflation-linked rental growth and further yield compression.
"Our portfolio is also well positioned to benefit from rising inflation, with 70% of the portfolio’s current income subject to full annual indexation," Fund Manager Evert Castelein said.
It collected 100% of rent for the quarter.
abrdn European declared a first quarterly interim dividend of 1.41 euro cents, having paid out a total of 5.64 cents for 2021.
Going forward, abrdn European will complete the construction of Madrid Phase IV. It is part of a portfolio of last-mile logistics warehouses located in Madrid, consisting of four phases. Madrid phase IV, comprising one in-development logistics warehouse, is due for completion late in the second quarter. It will increase abrdn European's portfolio valuation to EUR763 million.
"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," Fund Manager Castelein added.
abrdn European shares were trading 1.7% higher in London on Monday morning at 107.39 pence each.
By Abby Amoakuh; abbyamoakuh@alliancenews.com
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