abrdn European Logistics Income plc
24 February 2025
abrdn European
Logistics Income plc
Unaudited Net
Asset Value as at 31 December 2024
24 February 2025 - abrdn European Logistics
Income plc (the "Company" or "ASLI"), the Company which is
invested in a diversified portfolio of European logistics real
estate, announces its unaudited Net Asset Value ("NAV") for the
quarter ended 31 December 2024. The NAV is presented both including
and excluding estimated property disposal and SPV liquidation costs
in order to provide enhanced disclosure for shareholders. Further
details can be found below.
Summary
- IFRS NAV per Ordinary share
remained stable at 90.8c (GBp - 75.3p) (30 September 2024: 90.9c
(GBp - 76.0p))
- NAV per Ordinary
share including full provision of
estimated portfolio disposal and company structure liquidation
costs, increased by 0.6% to 88.2c (GBp - 73.7p) (30 September 2024:
87.6c (GBp - 73.2p))
- EPRA Net Tangible Assets
also remained stable at 93.3c per Ordinary share (30 September 2024
- 93.5c)
- The portfolio valuation on
a like-for-like basis (excluding Oss) increased €2.24 million or
0.4% to €593.99 million
- Sale of the freehold of the
warehouse located in Oss, The Netherlands, for a consideration of
€15.7 million and repayment of €9.9 million of the outstanding
€44.2 million debt
- Sale of two assets located
in Spain completed in January 2025 for an aggregate consideration
of €29.7 million and repayment of €17.7 million of the outstanding
€51 million debt facility
- At the quarter end, the
Company had aggregate fixed debt facilities totalling €235.7
million with a Loan to Value ('LTV') of 37% and an average all-in
interest rate of 2.02%
- Accretive leasing activity
during the quarter with two new lettings concluded at Gavilanes,
Spain.
Asset
Sales
On 24 January 2025, the Company announced that
it had concluded the sale of the freehold of the 12,384 square
metre warehouse located in Oss, The Netherlands, in late December
for a consideration of €15.7 million. The asset, constructed in
2019 and strategically located between the Port of Rotterdam and
the Ruhr area, was sold to the tenant, Orangeworks.
The sale price was in line with the latest
available valuation for Q3 2024 and, following the completion of
the transaction, the Company paid down €9.9 million of the
outstanding €44.2 million debt, which is cross collateralised with
Ede and Waddinxveen, provided by Berlin Hyp.
The Company also announced the sale of two
assets located in Spain concluded in January following a
competitive open sales process to Fidelity Real Estate Logistics
for an aggregate consideration of €29.7 million, 11.9% ahead of the
Q3 2024 valuation.
The 6,805 square metre cross-dock warehouse in
Coslada, Madrid, is leased to DHL (Spain) and is located in a prime
location near Madrid Barajas Airport, within the A-2 Corridor del
Henares - considered the first logistics ring in Madrid.
The second asset sold was the 13,907 square
metre warehouse in Polinyà, Barcelona, located in a prime area
within the first logistics ring 20 minutes from the city centre of
Barcelona, close to the AP-7 highway and leased to
Mediapost.
Of the net proceeds from the sale of these two
Spanish properties, €17.7 million was applied in paying down a
portion of the €51 million ING Bank secured debt, which is cross
collateralised with Gavilanes, Madrid, Unit 4 which is occupied by
Amazon, reducing the Company's gearing further.
Continued sales
process
Detailed due diligence is ongoing over three
assets in the Company's portfolio representing some 90,000 square
metres of rentable area and further details will be provided as
sales complete.
Further assets are being prepared for sale with
agents appointed with a view to effecting further sales in Q2. In
parallel, the Investment Manager continues to have an open and
direct dialogue with parties interested in purchasing prime
logistics space. The Investment Manager and the Board hold monthly
calls to discuss the sales programme that has been implemented,
progress to date and asset management initiatives where valuations
may be enhanced in advance of any sale.
Managed
Wind-Down
Under the shareholder approved managed wind-down
process, the Company's investment objective is 'to realise all
existing assets in the Company's portfolio in an orderly manner'
and to return net proceeds following the repayment of debt to
shareholders.
The quantum and timing of any return(s) of
capital to Shareholders under the B Share Scheme is at the
discretion of the Board and dependent on the realisation of the
Company's investments and its liabilities, general working capital
requirements and the amount and nature (from a tax perspective) of
its distributable reserves. An initial return of capital following
these sales and the repatriation of cash from the Company's SPVs is
expected by the end of March 2025. An announcement will be released
shortly with details.
Performance
For Q4 2024, the portfolio valuation increased
in aggregate by €2.24 million or 0.4% on a like-for-like basis
(excluding Oss) to €593.99 million (30 September 2024: €591.75
million excluding Oss, €607.45 million including Oss).
The French and Polish assets saw small increases
in aggregate valuations of 0.7% and 0.5% respectively while the
German assets remained flat. The Dutch assets declined in value by
2.4% in aggregate whilst the Company's Spanish portfolio gained
2.9%.
As at 31 December 2024, the Company's share
price was 58.8p, and as at the date of this announcement the share
price was 59.8p.
Leasing
Effective from 15 October 2024, MCR moved from
its location at the Company's Unit 2B asset (7,718 square metres)
in Gavilanes, Madrid, taking up the tenancy at the vacant Unit 3A
and, in so doing, expanding its footprint to 16,500 square metres.
The agreed rent per annum was €1,039,500 and the lease is for a 7
year term with upward only CPI movements. MCR's previous lease for
Unit 2B had an approaching lease break in June 2025.
Simultaneously, Molecor, an international company in
solutions for infrastructure, building and waste treatment, took up
the tenancy at the vacated Unit 2B agreeing a 5 year lease with an
annual rent per annum of €509,388, with upward only CPI
adjustments.
This accretive leasing activity improved the
Company's WAULT and further enhanced the positioning of the
portfolio in Gavilanes, Madrid, ahead of planned disposals this
year.
Rent
Collection
As at the date of this announcement, 98% of the
expected rental income for the quarter ended 31 December 2024 has
been collected. Overall, tenants remain stable and arrears are
expected to be collected in due course as new leases are agreed and
signed.
Debt
Financing
At the quarter end, the Company's fixed rate
debt facilities totalled €235.7 million at an average all-in
interest rate of 2.02%, with the earliest refinancing of debt due
in mid-2025. The LTV was 37.0%.
Following the sale of the two Spanish properties
and repayment of €17.7m in January 2025, the debt facility has
reduced to €218m with all-in interest rate of 1.93%.
As sales progress, the Manager continues to have
close dialogue with the Company's debt providers to ensure
continuity of provision of facilities where necessary.
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 October 2024 to 31 December 2024. To enhance
shareholder information, the Company has prepared its quarterly
unaudited net asset value both including and excluding the estimated costs of asset disposals
and liquidation of the company structure.
EPRA Net Tangible Assets per share is 93.3 euro
cents, which excludes deferred tax liability.
|
|
Per Share
(€cents)
|
Attributable Assets
(€m)
|
Comment
|
|
IFRS Net assets as at 30 September
2024 excluding estimated liquidation and
disposal costs
|
90.9
|
374.8
|
|
|
Unrealised and realised change in
valuation of property portfolio
|
0.5
|
2.2
|
Portfolio of 24 assets, capital
values of investments remained stable during the quarter
|
|
Income earned for the
period
|
1.9
|
8.0
|
Income from the property portfolio
and associated running costs
|
|
Expenses for the period
|
(1.5)
|
(6.5)
|
|
Deferred tax liability
|
0.2
|
0.9
|
Net deferred tax liability on the
difference between book cost and fair value of the portfolio and
other temporary tax differences
|
|
Interest rate swaps and caps/floors
mark to market revaluation
|
(0.1)
|
(0.4)
|
Movement in the mark to market value
of interest rate swaps
|
|
Dividend declared on 28 November
2024
|
(1.0)
|
(4.3)
|
Third interim dividend 2024 of 1.05 euro cents per Ordinary share declared
and paid during the quarter
|
|
Other movements in
reserves
|
(0.1)
|
(0.6)
|
FX translation and movements in
lease incentives
|
|
IFRS Net assets as at 31 December
2024 excluding estimated liquidation and
disposal costs
|
90.8
|
374.1
|
|
|
Estimated costs associated with
disposal of portfolio and liquidation of the Company
structure
|
(2.6)
|
(10.7)
|
|
|
Net assets as at 31 December 2024
including liquidation & disposal
costs
|
88.2
|
363.4
|
|
IFRS Net Asset
Value analysis as at 31 December 2024 (unaudited)
|
|
€m
|
% of net
assets
|
|
Fair value of Property Portfolio*
|
590.5
|
157.8%
|
|
Cash
|
25.0
|
6.7%
|
|
Other Assets
|
21.3
|
5.7%
|
|
Total Assets
|
636.8
|
170.2%
|
|
External Debt
|
(235.7)
|
-63.0%
|
|
Other Liabilities
|
(16.2)
|
-4.3%
|
|
Deferred tax liability
|
(10.8)
|
-2.9%
|
|
Total Net Assets
|
374.1
|
100.0%
|
*After lease incentive adjustment.
The NAV per share as at 31 December 2024 is
based on 412,174,356 shares of 1 pence each, being the total
number of Ordinary shares in issue at that time. As at the
date of this announcement, the Company's share capital consists of
412,174,356 Ordinary shares with voting rights.
The Board is not aware of any other significant
events or transactions which have occurred between 31 December 2024
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 be found on the Company's website
at: http://www.eurologisticsincome.co.uk
For further
information please contact:
abrdn Fund
Managers
Limited
Ben
Heatley
+44 (0) 20 7156 2382
Investec Bank
plc
+44 (0) 20 7597 4000
David Yovichic
Denis Flanagan
FTI
Consulting
+44 (0) 20 3727 1000
Dido Laurimore
Richard Gotla
Oliver Parsons
