(Alliance News) - abrdn European Logistics Income PLC on Tuesday said its net asset value and portfolio valuation both fell in the quarter that ended June 30, though it kept its interim dividend payment steady.
The investment fund focusing on European logistics real estate said the NAV per share on June 30 fell 2.6% to 108.3 euro cents or 92.9p from 111.2 cents or 97.7p on March 31.
Shares in abrdn European Logistics were up 3.0% to 69.49 pence each in London on Tuesday afternoon.
In euro terms and considering reinvested quarterly distributions, this represented a NAV total return of negative 6.6%, or negative 9.6% in sterling terms, in the six months that ended June 30.
abrdn European Logistics Income's portfolio valuation fell to EUR693.5 million on June 30 from EUR722.7 million a year earlier, a 1.5% like-for-like valuation decline when excluding the EUR18.5 million sale of the Leon warehouse in northern Spain during the quarter.
This reflected "slowing outward yield movement as key medium-term economic indicators improve", the company said.
abrdn European Logistics declared a second interim dividend payment for 2023 of 1.41 cents, or 1.22p, unchanged from a year earlier in euro terms.
"Global markets continue to be characterised by uncertainty driven by base rate rises and economic pressures. Encouragingly, the continental European logistics sector, and the ASLI portfolio valuation, has held up relatively well despite these headwinds," said Lead Fund Manager Troels Andersen.
"Encouragingly, the continental European logistics sector, and the ASLI portfolio valuation, has held up relatively well despite these headwinds. The slowing capital value decline across the portfolio this quarter reflects improving investor sentiment, the underlying fundamentals of our portfolio and attractive inflation-linked income profile, as well as the successful asset management leasing results delivered by our local abrdn teams in the year to date.
"Indicators suggest that some regions may be starting to see the early stages of this reversal in sentiment, with buying interest returning for well-placed logistics portfolios and the hoped-for early stages of recovery in values."
By Greg Rosenvinge, Alliance News reporter
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Abrdn Euro Log (ASLI)