Last checked at 
19 Nov 2021 07:00
LEI: 213800I9IYIKKNRT3G50
Aberdeen Standard European Logistics Income PLC
Unaudited Net Asset Value as at 30 September 2021
FURTHER VALUATION GAINS DRIVEN BY ASSET SELECTION AND STRONG FUNDAMENTALS
19 November 2021 - Aberdeen Standard European Logistics Income PLC (LSE: ASLI), the Company which invests in high quality European logistics properties, announces its unaudited quarterly Net Asset Value ("NAV") for the quarter ended 30 September 2021.
Highlights
· NAV per Ordinary share increased by 2.5% to 126.7c (GBp - 109.0p1) (30 June 2021: 123.6c (GBp - 106.1p)), reflecting a NAV total return of 17.5% (in Euro terms) for the 12 months to 30 September 2021
· Portfolio valuation of €504.0 million increased by 2.3% or €11.4 million (on a like-for-like basis and using the purchase price for the Barcelona property), reflecting modest yield compression
· 100% of the rent due for the quarter ended 30 September 2021 collected
· Portfolio comprises 16 strategically located, modern and diversified European logistics assets with increasingly enhanced / best in class ESG credentials, across five countries
· Significantly oversubscribed share issue raised gross proceeds of £125 million following scaling back
· The Investment Manager is undertaking due diligence on a significant portfolio in one of its key geographies, which is under exclusivity and would see the majority of available equity deployed.
Evert Castelein, Fund Manager, Aberdeen Standard Investments, commented:
"The growth witnessed in the Continental European logistics sector in recent years continues unabated, with the current global supply chain issues putting further upward pressures on demand. Coupled with the strong demographic and technological drivers of e-commerce growth, this has underpinned a further consecutive quarter of portfolio valuation uplifts. Our focus remains on scaling the platform and further diversification to take advantage of these dynamics, whilst accelerating the delivery of our sustainability-led asset management programme which is underpinning our market leading credentials."
Tony Roper, Chairman of the Company, added:
"With the support of both current and new investors, we are evaluating new assets to add to and complement the current portfolio. Shareholders continue to benefit from the Investment Managers access to a highly experienced team of transaction and asset managers on the ground in Europe, which has enabled us to source a near term pipeline that will deliver on our commitment to deploy the recently raised equity proceeds within our stated timeframe."
Performance
The unaudited portfolio valuation increased by €11.4 million, or 2.3%, (on a like-for-like basis and using the Barcelona purchase price). The Polinyà, Barcelona, urban logistics property valuation was €19.1 million at 30 September 2021, a 2.3% increase over the €18.7 million July 2021 purchase price. Yield compression and high demand for logistics warehousing continues to drive valuations.
For the 12 month period to 30 September 2021, the share price total return (with dividends reinvested) was 8.2% with the Company's net asset value total return over the same period 17.5% in Euro terms (11.4% in sterling terms).
As at 30 September 2021, the Company's share price stood at 111.0p.
Equity cash raise
On 29 September 2021, the Company announced the results of its new share issue, which comprised a Placing, Open Offer and Offer for Subscription as set out in the Company's prospectus published on 8 September 2021.
The issue was oversubscribed with strong support from existing and new investors and a scaling back exercise was undertaken due to the strong investor demand. The Company issued a total of 114.7 million new Ordinary shares, raising gross proceeds of £125 million at the issue price of 109.0 pence per new Ordinary share.
Dealings in the new Ordinary shares commenced after the quarter end on 1 October 2021. Following the issue, the Company's share capital now consists of 377,628,901 Ordinary shares with voting rights.
The Investment Manager is evaluating a pipeline of new potential investments, including exclusive discussions regarding the purchase of an attractive portfolio, which, if concluded, will lead to the majority of the available equity being deployed. Advanced due diligence is underway and the Company hopes to be in a position to provide a further update shortly.
GRESB 2021 Survey Results - ASLI awarded Regional Sector Leader status
The Company was placed first in the Listed European Industrial - Distribution Warehouse - segment, reflecting the continued work that the Investment Manager has undertaken in improving the sustainability credentials of the portfolio.
The Company's 2021 GRESB score of 84/100 represented an improvement on its 2020 GRESB survey score of 79/100. It also compared favourably against the 64/100 average peer score and 73/100 overall average 2021 GRESB score.
The Company has maintained its high Green Star rating with 4 out of a maximum 5 stars and outperformed the benchmark average score in almost every category.
Debt Financing
As at 30 September 2021, the Company level loan to value ("LTV") ratio was 31%, below the long-term target of 35%. In November 2021, the Company signed a revised revolving credit facility agreement with Investec Bank, increasing the facility's capacity to €70 million, providing further flexibility for the acquisition of new properties.
Breakdown of NAV movement
Set out below is a breakdown of the change to the unaudited net asset value per Ordinary Share over the period from 1 July 2021 to 30 September 2021. The unaudited net asset value has been prepared under International Financial Reporting Standards ("IFRS").
| Per Share (€cents) | Attributable Assets (€m) | Comment |
| |||
Net assets as at 30 June 2021 | 123.6 | 325.0 |
|
Unrealised change in valuation of property portfolio | 4.3 | 11.4 | Capital values increased €11.4m, a net 2.3% increase. The Barcelona warehouse acquired in the quarter was valued at €19.1m, 2.3% above the adjusted €18.7m acquisition price.
|
Acquisition costs during the period | (0.2) | (0.5) | |
Income earned during the period | 2.3 | 6.0 | Income from the 16 property portfolio and associated running costs. |
Expenses for the period | (0.9) | (2.5) | |
Deferred tax liability | (1.0) | (2.6) | Net deferred tax liability on the difference between book cost and fair value of the portfolio. |
FX hedge mark to market revaluation | (0.0) | (0.1) | Movement in the mark to market value of a hedge entered into in March 2021 to fix the EUR:GBP conversion of the 2021 dividend. |
Dividend paid 24 September 2021 | (1.4) | (3.7) | Second interim dividend of 1.41 euro cents (1.21 pence) per Ordinary share. |
Foreign currency loss | 0.0 | 0.1 | Foreign currency gain in the period. |
Net assets as at 30 September 2021 | 126.7 | 333.1 |
|
EPRA Net Tangible Assets per share is 135.6 Euro cents, which excludes deferred tax liability and fair value of the FX derivative.
Net Asset Value analysis as at 30 September 2021 (unaudited)
| €m | % of net assets |
Property Portfolio | 504.0 | 151.3% |
Adjustment for lease incentives | (4.6) | (1.4%) |
Fair value of property portfolio | 499.4 | 149.9% |
Cash | 17.6 | 5.3% |
Other Assets | 13.3 | 4.0% |
Total Assets | 530.3 | 159.2% |
Bank Loans | (163.0) | (48.9%) |
Other Liabilities | (10.7) | (3.2%) |
Deferred Tax Liability | (23.5) | (7.1%) |
Total Net Assets | 333.1 | 100.0% |
The property portfolio valuation is based on the independent external valuation of the Company's direct property portfolio undertaken by CBRE GmbH.
The NAV per share at 30 September 2021 is based on 262,950,001 shares of 1 pence each, being the total number of Ordinary shares in issue at that time.
The Board is not aware of any other significant events or transactions which have occurred between 30 September 2021 and the date of publication of this statement which would have a material impact on the financial position of the Company.
Details of the Company and its property portfolio may also be found on the Company's website which can be found at: http://www.eurologisticsincome.co.uk
For further information please contact:
Aberdeen Standard Fund Managers Limited +44 (0) 20 7463 6000
Luke Mason
Gary Jones
Investec Bank plc +44 (0) 20 7597 4000
David Yovichic
Denis Flanagan
FTI Consulting +44 (0) 20 3727 1000
Dido Laurimore
Richard Gotla
James McEwan
The above information is unaudited