Last checked at 
25 Feb 2019 07:00
Aberdeen Standard European Logistics Income PLC
LEI: 213800I9IYIKKNRT3G50
Net Asset Value as at 31 December 2018
25 February 2019: Aberdeen Standard European Logistics Income PLC (LSE: ASLI) (the "Company" or "ASLI") announces its unaudited quarterly Net Asset Value ("NAV") as at 31 December 2018.
Highlights
· NAV per share of €1.08 as at 31 December 2018 (30 September 2018 - €1.09) (GBP - 96.7p, 30 September 2018 GBP - 97.3p)
· Portfolio capital value increased by 0.9% compared to September 2018 quarter end valuation. The Company's high quality European Logistics portfolio valued at €149.2m
· Second interim dividend of 1.0p per Ordinary share paid to shareholders on 20 December 2018
· Third interim dividend of 1.3p per Ordinary share declared on 22 February 2019 in respect of the period from initial admission to 31 December 2018
· During the quarter and post the period end, the Company continued to complete the investment of the remainder of the net equity proceeds raised at the time of the Company's initial public offering:
Ø Investments in Avignon (France), Waddinxveen, Oss and Zeewolde (the Netherlands) were all added to the portfolio in the period. Oss and Zeewolde are both developments and structured as forward funding deals with 5.50% and 2.55% coupon rates on cash employed respectively. Both are expected to be delivered by mid-2019
Ø A freehold logistics warehouse located in Meung-sur-Loire, France, purchased for €23.5m, providing a net initial yield of 4.7%. The property is fully let to Office Depot France until 2026. The property was added to the portfolio in February 2019
Ø Development in Leon, Northern Spain, with a net value of €15.3 million signed up for completion by March 2019. Net initial yield is 6.0% reflecting agreed passing rent which is subject to annual indexation
Ø Share purchase agreement signed on 18 February 2019 to acquire a multi-let, modern logistics facility in Krakow, Poland's second biggest city, for €24.5m. The property is fully let, providing a net initial yield of 6.8%. Expected closing in early March 2019.
· During February, the Company arranged €33m of external debt, secured against its two French assets. The debt, provided by BayernLB, has been drawn for a 7 year term, at an attractive all-in fixed rate, highlighting the high quality and durable income streams provided by these assets and the availability of attractive external bank debt. The Company is also in advanced negotiations with a German bank to arrange further debt facilities secured against its German assets in order to fund the stage payments on its developments.
· Continued strong demand for the Company's shares. As at 21 February 2018 the share price was GBP 99.2p - a premium to the 31 December 2018 NAV of 2.6%.
Investment Manager Commentary
We are on course to finalise the investment of the proceeds from the initial public offering. With the recent successful signing of the Krakow deal, the Company will have created a unique and well-diversified European property portfolio consisting of ten freehold logistics warehouses located across five different countries with a total purchase value of over €265 million, an average net initial yield of 5.1% and a weighted average unexpired lease term (WAULT) in excess of ten years. We are confident that we can generate a solid and sustainable income stream from our portfolio thanks to the calibre of the assets, all located in established locations that are sought after by both tenants and investors. Buildings are modern with six brand-new assets, all with long indexed leases and strong covenant tenants underlining the quality of the current rental stream.
Low interest rates will further support the income return of the portfolio. The planned completions in February and March will predominantly be funded with bank financing for which the Company has already agreed attractive terms. With additional external debt employed to bring the gearing level to at or around 35 per cent. of gross assets financing will be in place for an additional asset and to fund stage payments that are required for our forward funded projects expected to complete in mid-2019 in Spain and the Netherlands. Due diligence is ongoing on a number of potential acquisitions.
The logistics sector remains one of the most favoured investment categories amongst property investors strongly supported by the growth of e-commerce and continuous globalisation. We believe that Europe maintains a clear advantage over UK logistics assets in terms of yields and low financing costs and that strong demand when combined with a lack of suitable product reinforces our belief that there is further scope for capital and income growth in the years ahead.
Future growth
The Board and the Manager remain confident that the market for European logistics assets will continue to offer many attractive investment opportunities in the future and, subject to the prevailing market conditions, the intention remains to seek to grow the Company through further equity issuance in the coming months.
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 1 October 2018 to 31 December 2018.
Aberdeen Standard European Logistics Income | Per Share (€cents) | Attributable Assets (€m) | Comment |
Net assets as at 30 September 2018 | 109.3 | 204.9 | |
Unrealised increase in valuation of property portfolio | 0.7 | 1.4 | Portfolio of six assets, capital value increase of 0.9% compared to prior quarter value or purchase price for the four assets acquired in the period. Capital expenditure representing the costs of completing these acquisitions. |
Capital expenditure during the period | (1.4) | (2.7) | |
Income earned for the period | 0.8 | 1.4 | Income from the increased property portfolio and associated running costs. |
Expenses for the period | (0.5) | (0.7) | |
Dividend paid on 20 December 2018 | (1.1) | (2.1) | Second interim dividend of 1.0p per Ordinary Share. |
Foreign currency gain / (loss) | (0.0) | (0.1) | |
Net assets as at 31 December 2018 | 107.8 | 202.1 |
The EPRA NAV per share is €1.08.
Net Asset Value analysis as at 31 December 2018 (unaudited)
€m | % of net assets | |
Total Property Portfolio | 149.2 | 73.8% |
Adjustment for lease incentives | (0.2) | (0.1%) |
Fair value of Property Portfolio | 149.0 | 73.7% |
Cash * | 51.1 | 25.3% |
Other Assets | 10.7 | 5.3% |
Total Assets | 210.8 | 104.3% |
Current liabilities | (8.7) | -4.3% |
Total Net Assets | 202.1 | 100% |
*Post 31 December 2018 when aggregated with the €33m fixed term debt drawn down in February 2019 cash shown has been used for the purchase of Meung-sur-Loire with the balance predominantly committed to the final completions on Erlensee and Krakow
The NAV per share is based on the external valuation of the Company's direct property portfolio undertaken by CBRE.
The NAV per share at 31 December 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 which can be found at: http://www.eurologisticsincome.co.uk/eurologisticsincome
For further information please contact:
Charles Mearns
Aberdeen Asset Management PLC
0131 528 4000
The above information is unaudited.