(Alliance News) - Aberdeen Standard European Logistics Income PLC on Monday declared a 1.41 euro cent per share dividend for the fourth quarter of 2019.
The company, which invests in logistics assets, said this final dividend takes its total for 2019 to 5.64 euro cents. Its shares were down 2.2% at 89 pence in London in afternoon trading.
For the period from its initial public offering on December 15, 2017 to the end of 2018, Aberdeen Standard European Logistics paid a 3.0p per share dividend in the year. The 2018 dividend was comprised of interim payments of 0.7p, 1.0p, and 1.3p.
In its July 2019 prospectus, Aberdeen Standard European Logistics said it was targeting a 5% distribution level in euro terms for an investor at initial launch. It uses currency hedging "to mitigate the potential volatility of income returns from the portfolio in sterling terms" but has no long-term hedge for its income returns or for its portfolio's capital value.
It entered a foreign exchange hedge to fix the exchange rate for its euro distributions in 2019, which were converted to sterling at a rate of EUR1 to GBP0.8985.
Dividend payments to shareholders take the form as either dividend income or qualifying interest income under UK tax law. The 2019 fourth quarter dividend in sterling is equivalent to 1.27p per share, of which 0.90p is dividend income and 0.37p is qualifying interest income.
In 2019, Aberdeen Standard European Logistics plans to declare quarterly interim dividends for the three months ended March 31, June 30, September 30, and December 31.
By Anna Farley; annafarley@alliancenews.com
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Abrdn Euro Log (ASLI)