TIDMASLI

RNS Number : 8405S

Aberdeen Standard Eur Lgstc Inc PLC

19 November 2021

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 - 109.0p 1 ) (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 EUR504.0 million increased by 2.3% or EUR11.4 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 GBP125 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 EUR11.4 million, or 2.3%, (on a like-for-like basis and using the Barcelona purchase price). The Polinyà, Barcelona, urban logistics property valuation was EUR19.1 million at 30 September 2021, a 2.3% increase over the EUR18.7 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 GBP125 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 EUR70 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     Attributable     Comment 
                            (EURcents)    Assets (EURm) 
 
 Net assets as at 
  30 June 2021             123.6         325.0 
                          ------------  ---------------  ---------------------------- 
                                                          Capital values increased 
                                                           EUR11.4m, a net 2.3% 
                                                           increase. 
                                                           The Barcelona warehouse 
                                                           acquired in the quarter 
                                                           was valued at EUR19.1m, 
 Unrealised change                                         2.3% above the adjusted 
  in valuation of                                          EUR18.7m acquisition 
  property portfolio       4.3           11.4              price. 
                          ------------  ---------------  ---------------------------- 
 Acquisition costs 
  during the period        (0.2)         (0.5) 
                          ------------  ---------------  ---------------------------- 
                                                          Income from the 16 property 
 Income earned during                                      portfolio and associated 
  the period               2.3           6.0               running costs. 
                          ------------  ---------------  ---------------------------- 
 Expenses for the 
  period                   (0.9)         (2.5) 
                          ------------  ---------------  ---------------------------- 
                                                          Net deferred tax liability 
                                                           on the difference between 
                                                           book cost and fair value 
 Deferred tax liability    (1.0)         (2.6)             of the portfolio. 
                          ------------  ---------------  ---------------------------- 
                                                          Movement in the mark 
                                                           to market value of a 
                                                           hedge entered into in 
                                                           March 2021 to fix the 
 FX hedge mark to                                          EUR:GBP conversion of 
  market revaluation       (0.0)         (0.1)             the 2021 dividend. 
                          ------------  ---------------  ---------------------------- 
                                                          Second interim dividend 
                                                           of 1.41 euro cents (1.21 
 Dividend paid 24                                          pence) per Ordinary 
  September 2021           (1.4)         (3.7)             share. 
                          ------------  ---------------  ---------------------------- 
 Foreign currency                                         Foreign currency gain 
  loss                     0.0           0.1               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)

 
                                     EURm     % 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

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