Last checked at 
8 May 2018 07:00
Aberdeen Standard European Logistics Income PLC
LEI: 213800I9IYIKKNRT3G50
Net Asset Value as at 31 March 2018
8 May 2018: Aberdeen Standard European Logistics Income PLC (LSE: ASLI) (the "Company") announces its unaudited quarterly Net Asset Value ("NAV") as at 31 March 2018.
Highlights
· NAV per share of €1.11 as at 31 March 2018 (GBP - 97.4p).
· The Company has acquired Flörsheim Logistics Park, Frankfurt for a net value of €20.1 million from SEGRO Zehnte Grundbesitz GmbH. Made up of two high quality logistics warehouses newly constructed in 2015, this is a modern, multi-let freehold asset providing flexible accommodation for occupiers. Flörsheim is fully let to five logistic tenants and benefits from almost full annual rent indexation (CPI) and a weighted average unexpired lease term excluding breaks (WAULT) of 7.6 years with a current net yield of 5.0%.
· Continued strong demand for the Company's shares. As at 30 April 2018 the share price was 105.5p - a premium to the 31 March NAV of 8.3%.
· The Company cancelled its share premium account, creating a new special reserve containing distributable profits. This new reserve may be used by the Company to fund, amongst other things, dividend payments and share buybacks. The cancellation took effect from 16 March 2018.
Investment Manager Commentary
The Investment Manager remains confident in the broad and consistent pipeline of logistics asset opportunities across Europe accessed through its established platform, local offices and wide-ranging relationships. We have recently entered into heads of terms granting exclusivity on behalf of the Company over the acquisition of two European logistics assets valued at €48.5 million in aggregate, and we have several other bids pending with an aggregate value of over €130 million. The Company will issue further announcements providing additional details in the event that the relevant bids are successful, due diligence is completed satisfactorily and contracts are exchanged.
We remain pleased with the pipeline and the opportunities seen across the region. Portfolio construction remains an essential tenet of the investment process, with an initial focus on major logistics hubs and 'last mile' facilities. The logistics sector continues to offer yields which provide a significant premium over current financing costs, and tenants that include financially robust major retailers, e-commerce businesses, distribution specialists and manufacturers.
The rapid growth of e-commerce, supply chain reconfiguration amongst existing operators and increased globalisation of traded goods are continuing trends creating demand for high quality modern facilities, often in densely populated areas where land is scarce, offering the opportunity to secure indexed leases and capital growth. We believe the medium to long term outlook for the logistics sector remains very favourable. Given the strong tailwinds from healthy economic output and structural shifts in consumption patterns, demand drivers are likely to remain supportive, while construction levels remain relatively low. Development finance is still a barrier to a substantial increase in construction. Net operating income is expected to grow as occupancy rates rise, inflation comes through in indexation in lease terms and headline rents continue to edge upwards in supply constrained markets.
Breakdown of NAV movement
Set out below is a breakdown of the change to the unaudited net asset value per share calculated under International Financial Reporting Standards ("IFRS") over the period from launch on 15 December 2017 to 31 March 2018.
Aberdeen Standard European Logistics Income | Per Share (€cents) | Attributable Assets (€m) | Comment |
Net assets upon inception | 111.6 | 209.4 | |
Unrealised increase in valuation of property portfolio | 0.1 | 0.2 | Increase in valuation of Flörsheim asset acquired in February 2018. |
Capital expenditure during the period | (0.7) | (1.3) | Acquisition costs on Flörsheim |
Income earned for the period | 0.1 | 0.2 | Reflects predominantly income from Flörsheim and negative interest rate on Euro cash holdings |
Expenses for the period | (0.3) | (0.6) | |
Foreign currency gain | 0.3 | 0.5 | Predominantly FX gain on converting GBP share issue proceeds to Euros |
Net assets as at 31 March 2018 | 111.1 | 208.4 |
The EPRA NAV per share is €1.11.
Net Asset Value analysis as at 31 March 2018 (unaudited)
€m | % of net assets | |
Total Property Portfolio | 20.3 | 9.7% |
Adjustment for lease incentives | 0.0 | 0.0% |
Fair value of Property Portfolio | 20.3 | 9.7% |
Cash | 188.1 | 90.3% |
Other Assets | 0.2 | 0.1% |
Total Assets | 208.6 | 100.1% |
Current liabilities | (0.2) | -0.1% |
Total Net Assets | 208.4 | 100.0% |
The NAV per share is based on an external valuation of the Company's direct property portfolio undertaken by CBRE.
The NAV per share at 31 March 2018 is based on 187,500,001 shares of 1p each, being the total number of shares in issue at that time.
The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014). Upon the publication of this announcement via Regulatory Information Service this inside information is now considered to be in the public domain.
Details of the Company may also be found on the Company's website, http://www.eurologisticsincome.co.uk/eurologisticsincome
For further information please contact:
Aberdeen Fund Managers Limited
0207 463 6000
Gary Jones
Jonathon McManus
The above information is unaudited.