REG - abrdn Euro Logistics - Half-year Report
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RNS Number : 1063B abrdn European Logistics Income plc 29 September 2025
26 September 2025
LEI: 213800I9IYIKKNRT3G50
abrdn European Logistics Income plc (LSE: ASLI) (the "Company" or "ASLI")
INTERIM RESULTS FOR THE HALF YEAR ENDED 30 JUNE 2025
Realising assets in the Company's portfolio in an orderly manner
abrdn European Logistics Income plc, the Continental European investor in
modern warehouses, which is managed by Aberdeen, announces its interim results
for the half year ended 30 June 2025.
-Ends-
For further information please contact:
abrdn +44 (0) 20 7463 6000
Ben Heatley
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
Highlights
Net asset value total return (EUR) for the half year to 30 June 2025 (%)1 Share price total return (GBP) for the half year to 30 June 2025 (%)1 Discount to net asset value
per share (%)1
(3.4) 16.2
(10.8)
12 months to 31 December 2024: 0.9 12 months to 31 December 2024: 0.1
31 December 2024: (21.9)
Net asset value per share Liquidation net asset value EPRA net tangible assets pr share
(¢)1,3 per share (¢)1,3 (¢)1
81.2 78.8
31 December 2024: 88.2
31 December 2024: 90.8 83.6
31 December 2024: 93.3
Total assets (€'000) IFRS net asset value Portfolio valuation
(€'000) 3 (€'000)2
589,984 334,635
31 December 2024: 661,197 31 December 2024: 374,108 545,199
31 December 2024: 593,991
IFRS earnings per share for the half year to 30 June 2025 (¢) Ordinary dividend paid per share during the half year to 30 June 2025 (¢) Number of properties
(2.8) 2.03 22
12 months to 31 December 2024: 0.7 12 months to 31 December 2024: 3.362 31 December 2024: 24
Average building size (sqm) All-in fixed interest rate (%) Gearing (%)1
20,920 2.30 36.6
31 December 2024: 19.300 31 December 2024: 2.02 31 December 2024: 37.0
1 Alternative Performance Measurements - see glossary below.
2 Excluding provision for liquidation costs. Total return including provision
for liquidation costs is (4.3%).
3 31 December 2023 includes Meung-sur-Loire, sold in March 2024 for €17.5m.
4 Excluding adjustments in relation to liquidation costs. Gearing including
liquidation costs is 38.6%.
5 Paid on 5 July 2024. Although the payment relates to the half year ended 30
June 2024, under IFRS, the distribution is recognised when paid and it will be
accounted for in the year ended 31 December 2024.
Interim Board Report
Chairman's Statement
Overview
I present the Company's half yearly report for the six months ended 30 June
2025.
The managed wind-down continues with the objective of realising all portfolio
assets, repaying borrowings, and returning capital to shareholders in a timely
manner, while seeking to achieve the best available value on each disposal.
While early sales in Oss, Coslada (Madrid) and Polinyà (Barcelona) were
completed in January, much of the first half of the year was devoted to
preparing further assets for sale, negotiating lease extensions to maintain or
enhance value, and progressing sales discussions.
In July and August, several of these came to fruition with the sales of our
two assets in Germany, our warehouses in Horst, s'Heerenberg and Zeewolde in
the Netherlands and the portfolio of properties in Gavilanes, Madrid. This
meant that by the first week of August we had sold 17 of the original 27
assets, over 60% by number, generating over €320 million in gross sales
proceeds.
Of the 10 remaining assets, seven disposals are still anticipated to complete
in Q4. The final three assets remain at various stages of the sales process,
with further completions targeted from Q4 2025 onwards.
The approval by shareholders to put the Company into managed wind-down
followed a period of higher interest rates which had resulted in increased
debt costs and significant yield expansion. As expectations of interest rate
cuts materialised and visibility on the macroeconomic backdrop improved, the
Board anticipated that stronger fundamentals and structural drivers would
again attract capital into the European logistics sector. While this has been
partly realised, ongoing geopolitical risks and the threat of further tariffs,
particularly from the US, have tempered investor sentiment and caused some to
pause.
At a fundamental level, the Board believed that there was potential to dispose
of the Company's assets in the direct property market at higher values than
those implied by the then share price, which was 61.2 pence at the date of
announcing the strategic review. The Board also concluded that the potential
value achievable through a managed wind-down materially exceeded that implied
by the indicative cash offers received during the strategic review, which were
all highly conditional and at significant discounts to the then NAV. The
returns announced to date under the B Share scheme equate to 29p per Ordinary
share with a remaining NAV less estimated costs of 42.4p, after payment of
announced B Share distributions and with the potential to incur up to a
further 2 pence in terms of latent capital gains tax.
Overall, when taking into account the assets sold to date, achieved pricing
and the pace of capital return, the Board is satisfied with progress and
current indications suggest the wind-down will be completed broadly in line
with its original value expectations. While the portfolio remains saleable and
the ECB has cut its policy rate to 2% (from 4% a year ago), it is clear that
sales of some of the remaining assets may either take longer to complete at
current valuations and in certain cases may ultimately transact at prices
below valuation. With certain investors remaining cautious on some core assets
amid ongoing geopolitical risks and tariff concerns, delays in completing
disposals could result in additional operating costs during the winddown.
Further details on the Company's portfolio are provided in the Investment
Manager's Review that follows.
Portfolio Sales Review
In January 2025, the Company completed the sale of two Spanish assets to
Fidelity Real Estate Logistics for an aggregate consideration of €29.7
million following a competitive open-market sales process.
On 11 July, the Company completed the sale of its two multi-let warehouses
located in Flörsheim and Erlensee, Germany, for an aggregate consideration of
approximately €66.5 million.
On 16 July, the Company also sold two further warehouses in the Netherlands,
located in Horst and s'Heerenberg, for an aggregate property value of €34.7
million.
On 31 July, the Company completed the sale of the Spanish subsidiaries that
held the underlying property assets of the Gavilanes, Madrid, portfolio for a
net consideration of approximately €146 million. The portfolio, which
comprised 122,000 square metres of total lettable area across nine assets in
total, was sold on a portfolio basis to ensure an efficient and timely return
of capital to shareholders under the wind-down programme. The SPVs were
acquired by a European logistics investor and developer following a
competitive two-round sale process involving multiple bids from active
logistics buyers. While no CGT was crystallised, the agreed pricing reflected
the buyer assuming responsibility for the latent CGT liability within the
acquired entities.
Lastly, on 6 August, the Company completed the disposal of its warehouse in
Zeewolde, the Netherlands, for €27.2 million.
B Share Scheme (the 'Scheme')
On 27 February 2025, the Board resolved to return approximately £16.5 million
in aggregate to Shareholders via a first issue of B Shares following early
sales. Under the Scheme, B Shares of one penny each were paid up from the
Company's special distributable reserve, created by the cancellation of the
share premium account, and issued to all Shareholders by way of a bonus issue
on the basis of 4 B Shares for every 1 Ordinary Share held at the record date
of 6 March 2025. The B Shares were issued and immediately redeemed with the
proceeds totalling £16,486,974, equivalent to 4 pence per Ordinary Share,
paid on 20 March 2025.
On 16 July 2025, the Board further resolved to return approximately £49.5
million in aggregate to Shareholders via a second issue of B Shares on the
basis of 12 B Shares for every 1 Ordinary Share held at the record date of 30
July 2025. The proceeds from the redemption of the B Shares, equivalent to
12.0 pence per Ordinary Share and totalling £49,460,923, were paid to
Shareholders on 13 August 2025.
Following further asset sales in August, the Board resolved on 29 August 2025
to return approximately £53.5 million in aggregate to Shareholders via a
third issue of B Shares on the basis of 13 B Shares for every 1 Ordinary Share
held at the record date of 16 September 2025. The proceeds from the redemption
of the B Shares, which are equivalent to 13.0 pence per Ordinary Share and
total £53,582,666, will be sent to uncertificated Shareholders through CREST
or via cheque to certificated Shareholders on 30 September.
Following this third return of capital, Shareholders will have received in
aggregate the equivalent of 29.0 pence per Ordinary share with the Company
distributing a total of £119.5 million to date.
Results
The unaudited Net Asset Value ("NAV") per share as at 30 June 2025 was 81.2
euro cents (GBp - 69.5p), compared with the 90.8 euro cents (GBp - 75.3p) at
31 December 2024, reflecting, with the interim dividends declared, a NAV total
return of -3.4% in Euro terms (+0.1% in sterling terms).
The NAV per Ordinary Share including provision for estimated portfolio
disposal and company structure (SPV) liquidation costs was 78.8c (GBp -
67.4p). As previously noted, further latent CGT of up to 2p may be incurred
depending on the structure and pricing of remaining disposals.
As at 30 June 2025, the Company's closing Ordinary share price was 62p.
Dividend
In aggregate, distributions of 4.33 euro cents were paid in respect of the
2024 financial year (2023 - 4.23 euro cents). The equivalent sterling rate
paid was 3.66 pence. First and second interim distributions of 1.06 and 1.00
euro cents (equivalent to 0.89 pence and 0.86 pence respectively) have been
declared in respect of the year ending 31 December 2025 with payment dates of
30 June and 29 September 2025.
As the portfolio asset disposal programme has continued over the last eight
months, the income generated by the Company through its leases has diminished.
As a result, the Company's ability to maintain the previous levels and
frequency of distributions has substantially decreased. Day-to-day operating
costs of the Company and its SPVs will increasingly need to be met from
capital, with such costs only reflected in the NAV as they are incurred.
From Q3, further distributions will be made solely to ensure that the
Company's investment trust status is maintained throughout the process, taking
the form of either dividend income or "qualifying interest income" which may
be designated as an interest distribution for UK tax purposes and therefore
subject to the interest streaming regime applicable to investments trusts.
Financing
At the end of the period, the Company's fixed rate debt facilities totalled
€207.0 million (31 December 2024 - €235.7 million) at an average all-in
interest rate of 2.30%. The loan-to-value (LTV) was 36.6%.
Subsequent to the period end, further sales enabled the Company to repay
€126.8 million in aggregate. The total bank debt therefore has fallen to
€80.2 million with a current all-in rate of 2.25%.
The Berlin Hyp loan of €34.3 million which was due to expire in June 2025
was extended by a further year with a new maturity date of 6 June 2026, with
no early repayment charges applicable in the event assets are sold before that
date. The all-in rate on the loan which is now on a 3-month floating basis,
including the bank margin, increased from 1.35% to 3.3%.
Property Country Lender Loan €'000 End date All-in fixed interest rate (inc margin) Bank margin
Avignon France BayernLB 22,000 12-Feb-26 1.57% 1.00%
Ede + Waddinxveen Netherlands Berlin Hyp 34,300 06-Jun-26 3.30% 1.32%
Den Hoorn Netherlands Berlin Hyp 23,928 14-Jan-28 1.38% 1.20%
80,228
Whilst in wind-down, the actual level of gearing will fluctuate as assets are
sold and debt repaid in the most efficient manner possible. The maximum LTV
permitted under the Company's prospectus is 50%. Banking covenants continue to
be reviewed by the Investment Manager and the Board on a regular basis.
Outlook
With ECB rate cuts and Eurozone CPI inflation stable at 2%, the financing
environment is expected to become more favourable, which may support increased
transaction activity as 2026 approaches.
Logistics yields are expected to compress into 2026, supported by constrained
supply, resilient occupier demand and a lower rate environment. Yields appear
to have peaked, with scope for modest tightening, particularly in core urban
markets.
Risks are expected to persist from prolonged trade tensions, global monetary
misalignment and weaker consumer sentiment. Geopolitical uncertainty may also
continue to weigh on export-led logistics demand.
While content with the progress of the managed winddown to date, the Board
recognises that softer valuations and limited competitive tension in certain
markets where we are active sellers may very well affect disposal timing and
pricing negatively. The Board and the Investment Manager will continue to
balance the best achievable value with ongoing operating costs and any further
unplanned capital expenditure required to support disposals, while maintaining
a focus on speed of capital return. In any event, the Board remains committed
to completing sales and placing the Company into liquidation no later than Q2
2026.
Tony Roper
Chairman
26 September 2025
Interim Board Report
Investment Manager's Review
European economic outlook
Activity
GDP growth slowed over Q2 from a 0.6% quarterly expansion to 0.1%. But this
slowdown mostly reflects noise in Irish data and payback from front-running of
US tariffs. We see further headwinds from trade disruption over the remainder
of the year and into 2026. On the other hand, a positive outcome from
US-Russia talks over Ukraine in Alaska could provide the European economy with
a modestly positive impulse. Tailwinds from fiscal stimulus for defence and
infrastructure spending should start to materialise at the back end of 2026
and into 2027. We expect 1.5% growth over 2027.
Inflation
Inflation currently sits exactly on the European Central Bank's (ECB) 2.0%
year-over-year target. However, it will likely dip below target from here
given muted demand side pressures. Lower gas prices could amplify the
disinflationary pressure if a ceasefire in Ukraine is ever agreed. But even in
this scenario, the EU will continue to phase out Russian gas. Monetary
stimulus is not forthcoming, which could result in an undershoot in inflation
relative to current forecasts.
Policy
The ECB's hold in July heralded a move into wait-and-see mode. President
Christine Lagarde signalled that the ECB would hold rates at their current
(neutral) level while it monitors the effect of various shocks. No further
cutting this year is possible. Further ahead, we think fiscal easing will
start to drive a recovery in 2026 and 2027, and we've tentatively pencilled in
an ECB hike to 2.25% at the back end of our forecast horizon.
Eurozone economic forecasts
(%) 2024 2025 2026 2027
GDP 0.8 1.0 0.8 1.5
CPI 2.4 1.9 1.6 1.9
Deposit rate 3.00 2.00 2.00 2.25
Source: Aberdeen August 2025.
Forecasts are a guide only and actual outcomes could be significantly
different.
European real estate market overview
In June 2025, the Aberdeen houseview committee retained global real estate at
a "+1 overweight" recommendation (maximum score +4). While we have seen
overall risk aversion remain elevated since 'Liberation Day', and the
escalation in global power tensions, we see good reason to retain conviction
in a gradual recovery for real estate.
The details of the latest INREV Confidence Index provide insights into how
investors are interpreting the current market conditions. Overall, the index
eased for the second consecutive quarter to stand at 52.2, remaining
marginally in positive territory (above 50).
The reduction in sector performance polarisation is something investors are
noticing. Investment volumes are normalising across sectors, with some offices
and retail parks now back in favour. Property Market Analysis's first quarter
of 2025 investor intentions survey shows net positive buying intentions over
the next 12 months for retail (for the first time in eight years) and for
offices (for the first time in four years). Residential remains the preferred
sector, with logistics a close second.
Capital has been the missing piece of the jigsaw in the recovery story so far.
Investment volumes picked up sharply in the fourth quarter of 2024, but
tariffs and geopolitics weighed on this trend. Total transactions reached
€230 billion over the year to June 2025, rising 16% over the previous
12-month period. There are several large deals at varying stages of conclusion
and large private equity investors, such as Blackstone and Brookfield, are
ramping up deployment, suggesting an improvement in sentiment.
Logistics
The European logistics market is experiencing softer leasing conditions,
resulting from slower economic growth and the specific impact of tariffs on
global trade and confidence. Take up in the first half of 2025 was the lowest
level since 2015, but this was not far below the pre-covid long-term average.
The Netherlands and Belgium saw steep declines in demand in H1 2025, while
Poland and Portugal were the two strongest markets in terms of letting
activity.
Despite a recent sustained rise in completions, vacancy rates remain low in an
historic context, particularly in prime locations. Total vacancy has increased
to 6.7% in Europe, up from 3.2% at its lowest point in the cycle in 2022.
Vacancy dropped in Q2 2025 in Poland, Spain and Ireland and we expect it to
peak in other markets in the third quarter.
Rental growth has eased, although it remains up 4.3% year-on-year. We expect
rental growth to beat inflation over the coming years, with demand improving
and new completions in 2025 and 2026 reaching just half the levels that were
seen between 2020 and 2023. However, there could be some pockets of weakness
this year as demand and supply tensions could be less supportive in the near
term.
Yields have edged lower in recent months, but the pace of decline has slowed
as interest rates have been volatile, the macroeconomic backdrop has softened,
and investor caution has increased. However, over the three months to July,
17% of logistics segments covered by CBRE experienced positive yield
movements, the strongest performance of all the sectors covered. We expect
yields to fall gradually as liquidity improves in the second half of the year.
Outlook for performance and risk
Higher geopolitical risk, trade tariffs, and a weaker near-term economic
outlook in Europe continue to weigh on overall market sentiment. Deal volumes
have slowed and greater caution is evident in yield sheets and in some of the
more recent performance data.
We forecast European all-property total returns of 7.1% over the next 12
months to June 2026 (a slight downgrade versus our March 2025 forecast). Our
three- and five-year annualised total-return forecasts are 9.2% and 8.6%,
respectively. For logistics we are expecting slightly stronger performance
with one, three- and five-year annualised returns of 8.1%, 9.8% and 8.8%
respectively. Returns are income-driven, with rental growth and yield impact
both contributing to improving capital growth performance in 2026 and 2027.
The highest returns are expected in the Netherlands, Spain, Portugal, Denmark,
and Sweden in the near term.
The main risks to our outlook are ongoing market disruption from US trade
tariffs and reciprocal measures, a steeper yield curve through greater
sovereign risk and concerns about sovereign debt levels, and a much sharper
economic slowdown. A recession or stagflation are not our base case. Low
supply should insulate rents from a weaker macro backdrop.
We favour overweight allocations to industrials, residential, hotels, student
accommodation, retail warehousing, core offices, and alternative segments like
data centres.
Managed wind-down and asset management update
In July 2024, Shareholders voted in favour of the new investment policy,
formally approving the implementation of a managed wind-down.
With continued volatile money markets, higher geopolitical risks and slower
than expected interest rate movement, capital values started to show signs of
stabilisation, albeit at a much slower pace than anticipated.
Our main objective now is focused on realising all existing assets in the
Company's portfolio in an orderly manner. However, it is also important to
execute the sales strategy optimising individual asset values and income
streams for Shareholders.
Our local teams on the ground are crucial in managing our diverse portfolio
and supporting the execution of the managed wind-down. With highly experienced
asset management and transactions teams around Europe, we are well-equipped to
engage directly with occupiers, potential purchasers and local brokers alike.
The Manager's local reach is evidenced by the positive impact on the portfolio
void level which dropped from 11.1% % in December 2023, to sub-3% by June
2025. As at 30 June 2025, Netherlands represented the largest geographic
exposure in the portfolio by value (31.2%), followed by Spain (26.7%), Poland
(16.3%), France (13.5%) and Germany (12.3%). Following sales completed post
the period end, the Company no longer has exposure to Spain and Germany.
Sales
In January 2025, the Company completed the sale of a portfolio of 2 assets
located in Madrid and Barcelona, Spain for a total price of €29.7 million.
Post 30 June 2025, 14 additional assets were sold.
In July, the Company completed the sale of its two multi-let warehouses
located in Flörsheim and Erlensee, Germany for an aggregate property value of
approximately €66.5 million, representing a c.10% premium to the Q1 2025
valuation.
The Company also concluded the sale of two further warehouses, located in
Horst and s'Heerenberg, the Netherlands, for an aggregate property value of
€34.7 million, representing a c.3.0% discount to the Q1 2025 valuation.
At the end of July, the Company completed the sale of a portfolio of nine
assets in Gavilanes, Madrid. The transaction was structured as a corporate
disposal, involving the sale of the Spanish subsidiaries that hold the
underlying property assets, for a net consideration of approximately €146
million. Finally, in August, the Company completed the disposal of its
warehouse in Zeewolde, the Netherlands, for approximately €27.2 million,
representing a 2.5% discount to the Q1 2025 valuation.
Continued sales progress
These transactions significantly progress the shareholder approved managed
wind-down, with 17 of the original 27 assets in the Company's portfolio now
sold, generating aggregate gross sales proceeds of over €320 million, prior
to the repayment of associated debt. The final 10 assets remain at various
stages of the sales process, with further completions targeted in Q4 2025
onwards.
The Investment Manager continues to assess ongoing asset management
initiatives, including further possible capital expenditure, and engage with
tenants to identify opportunities where the Company can enhance value in
advance of potential disposals.
Leasing
Shareholders are reminded that, as the managed wind-down progresses and
further asset disposals are completed, the Company's income will decline
accordingly. At Ede in the Netherlands, Kruidvat (AS Watson) completed the
lease amendment to incorporate the vacant offices (75% of office space) within
their demise for nil rent. This tidied up the management arrangements,
creating a single let asset, removing the service charge management and
administration providing a cleaner single let asset for sale.
In Krakow, Poland, following the recent prolongation of the IDC Polonia lease
by 3 years, we also reached an agreement with the main tenant of the building,
Lynka (30%) on a 7-year lease extension until 2033 with full indexation,
improving liquidity of the asset. The total incentive package to Lynka
includes a contribution to installing photovoltaic (PV) panels for their
exclusive consumption.
In Madrid Gavilanes unit 3C in Spain, a lease with MCR was completed on a
7-year term. The unit is fully let.
Post period end, in Gevrey in France the 12 year lease regear with Dachser was
completed with effect from 1 January 2026. The lease provides for annual
indexation (to be indexed from the current rent on 1 January 2026) on the same
terms as the existing lease. Dachser will receive 1 month rent free, together
with a capital contribution of €120,000, on the condition that the offices
are improved, the oil tanks are decommissioned and a new EV charging hub is
installed.
These leasing activities across four countries have enhanced the value of the
Company's portfolio, further supporting the managed wind-down process.
Fundamentally, the foregoing sales and leasing activity demonstrates the
Manager's commitment to implementing both the sales strategy required for the
wind-down, as well as delivering successful asset management and leasing
initiatives, which feeds into improved asset liquidity and values.
Property Portfolio as at 30 June 2025
Country Property Tenure Principal Tenant Built WAULT incl breaks WAULT excl % of Fund
breaks (years)
(years)
1 France Avignon Freehold Biocoop 2018 9.2 9.2 5-10
2 France Bordeaux Freehold Dachser 2005 3.6 6.6 0-5
3 France Dijon Freehold Dachser 2004 4.5 7.5 0-5
4 France Niort Freehold Dachser 2014 6.5 9.5 0-5
5 Germany Erlensee1 Freehold Bergler 2018 6.4 6.4 5-10
6 Germany Florsheim(1) Freehold Maintrans Internationale Spedition 2015 3.9 3.9 0-5
7 Poland Krakow Freehold Lynka 2018 3.7 3.7 5-10
8 Poland Lodz Freehold Compal 2020 2.5 3.1 5-10
9 Poland Warsaw Freehold DHL 2019 3.5 3.5 5-10
10 Spain Gavilanes 1A(1) Freehold Talentum 2019 4.6 4.6 5-10
11 Spain Gavilanes 1B(1) Freehold Vacant 2019 - - 0-5
12 Spain Gavilanes 2A(1) Freehold Carrefour 2020 1.1 11.1 0-5
13 Spain Gavilanes 2B(1) Freehold MCR 2020 4.3 4.3 0-5
14 Spain Gavilanes 2C(1) Freehold ADER 2020 2.0 2.0 0-5
15 Spain Gavilanes 3 A/B/C(1) Freehold MCR 2019 11.6 16.6 5-10
16 Spain Gavilanes 4(1) Freehold Amazon 2022 11.8 21.8 5-10
17 The Netherlands Den Hoorn Leasehold Van der Helm 2020 4.8 4.8 5-10
18 The Netherlands Ede Freehold AS Watson (Kruidvat) 1999/2005 8.2 8.2 0-5
19 The Netherlands Horst(1) Freehold Limax 2005 7.2 7.2 0-5
20 The Netherlands 's Heerenberg(1) Freehold JCL Logistics 2009/2011 6.4 6.4 0-5
21 The Netherlands Waddinxveen Freehold Combilo International 1983/1994/2002/ 8.4 8.4 5-10
2018/2022
22 The Netherlands Zeewolde(1) Freehold VSH Fittings 2019 9.0 9.0 0-5
Total 6.2 7.5
1Sold after 30 June 2025
Loan portfolio as at 30 June 2025
Country Property Lender Share in total Loan (€'000) End date Remaining years All-in fixed interest rate
(inc margin)
Germany Erlensee(*) DZ Hyp 9% 17,800 31-Jan-29 3.6 1.62%
Germany Florsheim(*) DZ Hyp 6% 12,400 30-Jan-26 0.6 1.54%
France Avignon BayernLB 11% 22,000 12-Feb-26 0.6 1.57%
The Netherlands Ede + Waddinxveen Berlin Hyp 16% 34,300 06-Jun-26 0.9 3.30%
The Netherlands Den Hoorn (Zeewolde)* Berlin Hyp 21% 43,200 14-Jan-28 2.5 1.38%
Spain Madrid Facility 1 (Madrid 1)* ING Bank 21% 44,000 30-Jan-26 0.6 2.72%
Spain Madrid Facility 2 (Madrid 2)* ING Bank 16% 33,340 16-Sep-25 0.2 3.05%
Total 100% 207,040 1.3 2.30%
* Loans repaid or transferred with the sale of SPV after 30 June 2025.
At the period end, the Company's fixed rate debt facilities totalled €207
million, with an average all-in interest rate of 2.30%, representing a
loan-to-value (LTV) ratio of 36.6%.
Following the completion of asset sales post period end, the Company's
outstanding debt reduced to €80.2 million with an all-in average interest
rate of 2.25%.
The Company's Berlin Hyp loan of €34.3 million has been extended by one year
to 6 June 2026, with no early repayment charges applicable in the event assets
are sold before that date. The all-in rate for this loan, including the bank
margin, increased from 1.35% to 3.3% and is now on a 3-month floating basis.
We remain comfortable with the BayernLB loan for €22m expiring in February
2026 with repayment of the loan from anticipated asset sales an option if the
Avignon asset sale is delayed.
Troels Andersen
Fund Manager
abrdn Investments Ireland Limited
26 September 2025
Interim Board Report
Disclosures
Principal risks and uncertainties
The principal risks and uncertainties considered as affecting the Company were
set out on pages 11 to 14 of the Annual Report and Financial Statements for
the year ended 31 December 2024 (the "2024 Annual Report") together with
details of the management of the risks and the Company's internal controls.
High level risks can be summarised as follows:
. Strategic Risks;
. Investment and Asset Management Risks (including investment strategy and
health and safety);
. Financial Risks (including macroeconomic, gearing, credit risk and the risk
of insufficient income generation);
. Operational Risks (including service providers and business continuity).
During the process of the managed wind-down the Board pays particular
attention to the risks concerning the timing of asset sales, repayment of bank
debt and the covenants associated with such debt and its expiry dates, renewal
of leases, asset management initiatives and management of vacancy together
with tenant relationships and the shareholder base.
The Board also has a process in place to identify emerging risks. Such risks
may include, but are not limited to, future pandemics, the increasing
developments in AI, cybercrime, and longer term climate change. In the event
that an emerging risk has gained significant weight or importance, that risk
is categorised and added to the Company's risk register and is monitored
accordingly.
The risks and uncertainties did not materially change during the six months
ended 30 June 2025. Whilst there has been no significant change in the risk
profile between 30 June 2025 and the date of this report, the Board has noted
and continues to monitor the increased tensions in Ukraine.
Related party transactions
aFML acts as Alternative Investment Fund Manager, abrdn Investments Ireland
Limited acts as Investment Manager and abrdn Holdings Limited acts as Company
Secretary to the Company; details of the management fee arrangements can be
found in the related party note below. Details of the transactions with the
Manager including the fees payable to Aberdeen Group Plc companies are also
disclosed in note 16 of this Half Yearly Report.
Going concern
The Directors, as at the date of this report, are required to consider whether
they have a reasonable expectation that the Company has adequate resources to
continue in operational existence for the foreseeable future. At the General
Meeting held on 23 July 2024, the proposed revised Investment Policy for the
implementation of a managed wind-down of the Company was approved by the
Company's Shareholders. Following the approval by Shareholders of the revised
investment objective and policy, the Company is now in the middle of the
process for an orderly realisation of the Company's assets and a return of
capital to Shareholders.
The Board will endeavour to realise the Company's investments in a manner that
achieves a balance between maximising the value received from the sale of
investments and timely returns of net proceeds to Shareholders. Whilst the
Directors are satisfied that the Company has adequate resources to continue in
operation throughout the winddown period and to meet all liabilities as they
fall due, given that the Company is now in managed wind-down, the Directors
consider it appropriate to adopt a basis other than going concern in preparing
the financial statements. No material adjustments to accounting policies or
the valuation basis have arisen as a result of ceasing to apply the going
concern basis. Additional details about going concern are disclosed in note 1
to the financial statements.
Directors' Responsibility Statement
The Directors are responsible for preparing this half-yearly financial report
in accordance with applicable law and regulations. The Directors confirm that
to the best of their knowledge:
. the condensed set of financial statements contained within the half-yearly
financial report has been prepared in accordance with UK adopted International
Accounting Standard 34 'Interim Financial Reporting', and the Disclosure
Guidance and Transparency Rules sourcebook of the United Kingdom's Financial
Conduct Authority and gives a true and fair view of the assets, liabilities,
financial position and net return of the Company as at 30 June 2025; and
. the Interim Board Report (constituting the interim management report)
includes a fair review of the information required by rule 4.2.7R of the UK
Listing Authority Disclosure Guidance and Transparency Rules (being an
indication of important events that have occurred during the first six months
of the financial year and their impact on the condensed consolidated financial
statements and a description of the principal risks and uncertainties for the
remaining six months of the financial year) and rule 4.2.8R (being related
party transactions that have taken place during the first six months of the
financial year and that have materially affected the financial position of the
Company during that period).
Tony Roper
Chairman
26 September 2025
Condensed Consolidated Statement of Comprehensive Income
Notes Half year ended 30 June 2025 Unaudited Half year ended 30 June 2024 Unaudited Year ended 31 December 2024
Audited
Revenue €'000 Capital €'000 Total €'000 Revenue €'000 Capital €'000 Total €'000 Revenue €'000 Capital €'000 Total €'000
REVENUE 15,740 - 15,740 15,306 - 15,306 31,499 - 31,499
Rental income
Property service charge income 5,025 - 5,025 4,006 - 4,006 8,379 - 8,379
Other operating income 80 - 80 158 - 158 210 - 210
Total revenue 2 20,845 - 20,845 19,470 - 19,470 40,088 - 40,088
GAINS/(LOSSES) ON INVESTMENTS 9 - (505) (505) - (230) (230) - 35 35
(Losses)/gains on disposal of investment properties
Change in fair value of investment properties 9 - (20,160) (20,160) - (20,412) (20,412) - (6,284) (6,284)
Total income and gains/(losses) on investments 20,845 (20,665) 180 19,470 (20,642) (1,172) 40,088 (6,249) 33,839
EXPENDITURE (871) - (871) (1,386) - (1,386) (2,508) - (2,508)
Investment management fee
Direct property expenses (1,679) - (1,679) (590) - (590) (1,690) - (1,690)
Property service charge expenditure (5,025) - (5,025) (4,006) - (4,006) (8,379) - (8,379)
SPV property management fees (122) - (122) (199) - (199) (297) - (297)
Impairment loss on trade receivables 184 - 184 (217) - (217) (605) - (605)
Other expenses 3 (1,009) - (1,009) (2,638) (205) (2,843) - (4,105)
Total expenditure (8,522) - (8,522) (9,036) (205) (9,241) - (17,584)
Net operating return/(loss) before finance costs 12,323 (20,665) (8,342) 10,434 (20,847) (10,413) 22,504 (6,249) 16,255
FINANCE COSTS
Finance costs 4 (2,439) 797 (1,642) (5,721) (915) (6,636) (8,404) (915) (9,319)
Gains arising from the derecognition of derivative financial instruments - 12 12 - - - - 13 13
Effect of fair value adjustments on derivative financial instruments - (300) (300) - 18 18 - (1,311) (1,311)
Effect of foreign exchange differences 148 (345) (197) (93) (390) (483) (145) (282) (427)
Net return before taxation 10,032 (20,501) (10,469) 4,620 (22,134) (17,514) 13,955 (8,744) 5,211
Taxation 5 (777) (183) (960) (90) 900 810 (928) (1,253) (2,181)
Net return for the period 9,255 (20,684) (11,429) 4,530 (21,234) (16,704) 13,027 (9,997) 3,030
Total comprehensive return/(loss) for the year 9,255 (20,684) (11,429) 4,530 (21,234) (16,704) 13,027 (9,997) 3,030
Basic and diluted earnings per share 6 2.2¢ (5.0¢) (2.8¢) 1.1¢ (5.2¢) (4.1¢) 3.1¢ (2.4¢) 0.7¢
The accompanying notes are an integral part of the Financial Statements.
The total column of the Condensed Statement of Comprehensive Income is the
profit and loss account of the Company.
Condensed Consolidated Balance Sheet
Notes 30 June 2025 30 June 2024 31 December 2024
Unaudited €'000 Unaudited €'000 Audited €'000
NON-CURRENT ASSETS 9 154,219 615,713 497,319
Investment properties
Deferred tax asset 5 1,684 3,367 2,941
Total non-current assets 155,903 619,080 500,260
CURRENT ASSETS 10 14,252 18,466 16,998
Trade and other receivables
Cash and cash equivalents 6,673 26,624 25,011
Other assets 1,514 1,527 750
Derivative financial assets 15 12 1,708 366
Investment property held for sale 9 410,910 - 117,609
Deferred tax asset - arising on held for sale 5 720 - 203
Total current assets 434,081 48,325 160,937
Total assets 589,984 667,405 661,197
CURRENT LIABILITIES 13 163,840 55,200 140,300
Bank loans
Lease liability 11 682 659 682
Liquidation provision - 1,120 -
Trade and other payables 12 14,311 16,131 15,322
Deferred tax liability - arising on held for sale 5 7,002 - 4,028
Total current liabilities 185,835 73,110 160,332
NON-CURRENT LIABILITIES 13 43,200 193,263 96,315
Bank loans
Lease liability 11 23,512 23,503 23,717
Deferred tax liability 5 2,802 9,305 6,725
Total non-current liabilities 69,514 226,071 126,757
Total liabilities 255,349 299,181 287,089
Net assets 334,635 368,224 374,108
SHARE CAPITAL AND RESERVES 14 4,717 4,717 4,717
Share capital
Share premium - 269,546 -
Special distributable reserve 145,016 152,099 145,016
Special distributable reserve II 230,192 - 269,546
Capital redemption reserve 19,677 - -
Capital reserve (94,881) (85,434) (74,197)
Revenue reserve 29,914 27,296 29,026
Equity shareholders' funds 334,635 368,224 374,108
Net asset value per share (cents) 8 81.2 89.3 90.8
Company number: 11032222
The accompanying notes are an integral part of the Financial Statements.
Condensed Consolidated Statement of Changes in Equity
Half year ended 30 June 2025 Unaudited Notes Share capital €'000 B share capital €'000 Share premium €'000 Special distributable reserve €'000 Special distributable reserve II €'000 Capital redemption reserve €'000 Capital reserve €'000 Revenue reserve €'000 Total €'000
Balance at 31 December 2024 4,717 - - 145,016 269,546 - (74,197) 29,026 374,108
Total comprehensive return for the period - - - - - - (20,684) 9,255 (11,429)
B shares issued during the year - 19,677 - - - - - - 19,677
B shares redeemed during the year - (19,677) - - (19,677) 19,677 - - (19,677)
Return of capital to B shareholders - - - - (19,677) - - - (19,677)
Interim distributions paid 7 - - - - - - - (8,367) (8,367)
Balance at 30 June 2025 4,717 - - 145,016 230,192 19,677 (94,881) 29,914 334,635
Half year ended 30 June 2024 Unaudited Notes Share capital €'000 B share capital €'000 Share premium €'000 Special distributable reserve €'000 Special distributable reserve II €'000 Capital redemption reserve €'000 Capital reserve €'000 Revenue reserve €'000 Total €'000
Balance at 31 December 2023 4,717 - 269,546 152,099 - - (64,200) 22,766 384,928
Total comprehensive return for the period - - - - - - (21,234) 4,530 (16,704)
Balance at 30 June 2024 4,717 - 269,546 152,099 - - (85,434) 27,296 368,224
Year ended 31 December 2024 Audited Notes Share capital €'000 B share capital €'000 Share premium €'000 Special distributable reserve €'000 Special distributable reserve II €'000 Capital redemption reserve €'000 Capital reserve €'000 Revenue reserve €'000 Total €'000
Balance at 31 December 2023 4,717 - 269,546 152,099 - - (64,200) 22,766 384,928
Total comprehensive return for the year - - - - - - (9,997) 13,027 3,030
Cancelation of share premium - - (269,546) - 269,546 - - - -
Dividends paid 7 - - - (7,083) - - - (6,767) (13,850)
Balance at 31 December 2024 4,717 - - 145,016 269,546 - (74,197) 29,026 374,108
The accompanying notes are an integral part of the Financial Statements.
Condensed Consolidated Cash Flow Statement
Notes Half year ended 30 June 2025 Half year ended 30 June 2024 Year ended 31 December 2024
Unaudited €'000 Unaudited €'000 Audited €'000
CASH FLOWS FROM OPERATING ACTIVITIES (10,469) (17,514) 5,211
Net return for the period before taxation
Adjustments for: 9 20,160 20,412 6,284
Change in fair value of investment properties
Losses/(gains) on disposal of investment properties 505 230 (35)
Decrease in lease liability 205 191 383
Decrease/(increase) in trade and other receivables 2,141 (4,432) (3,187)
(Decrease)/increase in trade and other payables (1,927) 168 (879)
Increase in provisions - 1,120 -
Change in fair value of derivative financial instruments 300 (18) 1,311
Result arising from the derecognition of derivative financial instruments (12) - (13)
Finance costs 4 1,642 5,721 9,319
Tax paid (1,552) (124) (1,966)
Cash generated by operations 10,993 5,754 16,428
Net cash inflow from operating activities 10,993 5,754 16,428
CASH FLOWS FROM INVESTING ACTIVITIES - (54) 56
Capital expenditure and costs of disposal
Disposal of investment properties 9 29,700 17,500 33,200
Net cash inflow from investing activities 29,700 17,446 33,256
CASH FLOWS FROM FINANCING ACTIVITIES 7 (8,367) - (13,850)
Dividends paid
B share scheme distribution paid (19,677) - -
Bank loans interest paid (2,339) (3,637) (5,134)
Bank loans repaid 13 (28,660) (11,000) (23,763)
Proceeds from derivative financial instruments 12 - 13
Net cash outflow from financing activities (59,031) (14,637) (42,734)
Net (decrease)/increase in cash and cash equivalents (18,338) 8,563 6,950
Opening balance 25,011 18,061 18,061
Closing cash and cash equivalents 6,673 26,624 25,011
REPRESENTED BY
Cash at bank 6,673 26,624 25,011
Notes to the Financial Statements
1. Accounting policies
The Unaudited Condensed Consolidated Financial Statements have been prepared
in accordance with UK adopted
International Financial Reporting Standard ("IFRS") IAS 34 'Interim Financial
Reporting', and with the Disclosure Guidance and Transparency Rules sourcebook
of the United Kingdom's Financial Conduct Authority and are consistent with
the accounting policies set out in the statutory accounts of the Group for the
year ended 31 December 2024 unless stated otherwise in this Half Year Report.
The Unaudited Condensed Consolidated Financial Statements for the half year
ended 30 June 2025 do not include all of the information required for a
complete set of IFRS financial statements and should be read in conjunction
with the Consolidated Financial Statements of the Group for the year ended 31
December 2024. These were prepared in accordance with IFRS, which comprises
standards and interpretations approved by the International Accounting
Standards Board ('IASB'), and International Accounting Standards and Standing
Interpretations Committee interpretations approved by the International
Accounting Standards Committee ('IASC') that remain in effect, and to the
extent that they have been adopted by the United Kingdom, and the Listing
Rules of the UK Listing Authority. The financial information in this Report
does not comprise statutory accounts within the meaning of Section 434436 of
the Companies Act 2006. Those financial statements have been delivered to the
Registrar of Companies and included the report of the auditor which was
unqualified and did not contain a statement under either section 498(2) or
498(3) of the Companies Act 2006. The financial information for the half year
ended 30 June 2025 and 30 June 2024 has not been audited or reviewed by the
Company's auditor.
Going Concern
Following the approval by Shareholders of the revised investment objective and
policy in 2024, the process for an orderly realisation of the Company's assets
and a return of capital to Shareholders has begun. The Board will endeavour to
realise the Company's remaining investments in a manner that achieves a
balance between maximising the value received from the sale of investments and
timely returns of net proceeds to Shareholders. Whilst the Directors are
satisfied that the Company has adequate resources to continue in operation
throughout the wind-down period and to meet all liabilities as they fall due,
given that the Company is now in managed wind-down, the Directors consider it
appropriate to continue to adopt a basis other than going concern in preparing
the financial statements. No material adjustments to accounting policies or
the valuation basis have arisen as a result of ceasing to apply the going
concern basis.
2. Revenue
Half year ended 30 June 2025 Half year ended 30 June 2024 Year ended 31 December 2024
Unaudited €'000 Unaudited €'000 Audited €'000
Rental income 15,740 15,306 31,499
Property service charge income 5,025 4,006 8,379
Other income 80 158 210
Total revenue 20,845 19,470 40,088
Rental income includes amortisation of operating lease incentives granted.
3. Other expenses
Included within other expenses for the half year to 30 June 2025 is a
€719,000 reversal related to a VAT refund received from tax authorities.
Other expenses for half year ended 30 June 2024 included €1.2m of costs
associated with the Strategic Review, of which €0.5m was incurred on
technical and environmental due diligence of properties.
Future operating costs in relation to the managed wind-down will be expensed
as incurred.
4. Finance costs
Half year ended 30 June 2025 Unaudited Half year ended 30 June 2024 Unaudited Year ended
31 December 2024 Audited
Revenue Capital Total Revenue Capital Total Revenue Capital Total
€'000 €'000 €'000 €'000 €'000 €'000 €'000 €'000 €'000
Interest on bank loans 2,322 - 2,322 2,591 - 2,591 5,126 - 5,126
Amortisation of loan costs - - - 2,939 - 2,939 1,779 - 1,779
Remeasurement of loan liability - (797) (797) - - - 1,159 915 2,074
Bank interest 117 - 117 191 - 191 340 - 340
Early loan repayment cost - - - - 915 915 - - -
Total finance costs 2,439 (797) 1,642 5,721 915 6,636 8,404 915 9,319
Following the announcement of the managed wind-down the Group intends to repay
a number of loans prior to maturity. The amortised cost of bank loans was
therefore remeasured and any unamortised balance of loan issue cost was fully
amortised as at 31 December 2024.
Remeasurement of loan liability includes reversal of provision related to
early repayment of bank loans which was not payable on sale of the SPV and
arrangement fees related to extension of existing agreements. These costs are
treated as capital within the Consolidated Statement of Comprehensive Income.
5. Taxation
The Company is resident in the United Kingdom for tax purposes. The Company is
approved by HMRC as an investment trust under sections 1158 and 1159 of the
Corporation Tax Act 2010. In respect of each accounting year for which the
Company continues to be approved by HMRC as an investment trust the Company
will be exempt from UK taxation on its capital gains. The Company is, however,
liable to UK Corporation tax on its income. The Company is able to elect to
take advantage of modified UK tax treatment in respect of its ''qualifying
interest income'' for an accounting year referred to as the ''streaming''
regime. Under regulations made pursuant to the Finance Act 2009, the Company
may, if it so chooses, designate as an ''interest distribution'' all or part
of the amount it distributes to Shareholders as dividends, to the extent that
it has ''qualifying interest income'' for the accounting year. Were the
Company to designate any dividend it pays in this manner, it would be able to
deduct such interest distributions from its income in calculating its taxable
profit for the relevant accounting year. The Company should in practice be
exempt from UK corporation tax on dividend income received, provided that such
dividends (whether from UK or non-UK companies) fall within one of the
''exempt classes'' in Part 9A of the CTA 2010.
(a) Tax charge in the Group Statement of Comprehensive Income
Half year ended 30 June 2025 Unaudited Half year ended 30 June 2024 Unaudited Year ended
31 December 2024 Audited
Revenue Capital Total Revenue Capital Total Revenue Capital Total
€'000 €'000 €'000 €'000 €'000 €'000 €'000 €'000 €'000
Current taxation:
Overseas taxation 777 392 1,169 90 - 90 928 482 1,410
Deferred taxation:
Overseas taxation - (209) (209) - (900) (900) - 771 771
Total taxation 777 183 960 90 (900) (810) 928 1,253 2,181
Current taxation charged to capital of €392,000 (2024: €482,000) relates
to capital gains tax paid on disposal of investment property.
(b) Tax in the Group Balance Sheet
30 June 2025 Unaudited 30 June 2024 Unaudited 31 December 2024
€'000 €'000 Audited
€'000
Deferred tax assets: 2,202 3,025 3,036
On overseas tax losses
On other temporary differences 202 342 108
Total taxation on return 2,404 3,367 3,144
30 June 2025 Unaudited 30 June 2024 Unaudited 31 December 2024
€'000 €'000 Audited
€'000
Deferred tax liabilities: 2 426 53
Differences between tax and derivative valuation
Differences between tax and property valuation 9,802 8,879 10,700
Total taxation on return 9,804 9,305 10,753
6. Earnings per share (Basic and Diluted)
30 June 2025 Unaudited 30 June 2024 Unaudited 31 December 2024 Audited
Revenue net return attributable to Ordinary shareholders (€'000) 9,255 4,530 13,027
Weighted average number of shares in issue during the period 412,174,356 412,174,356 412,174,356
Total revenue return per ordinary share 2.2¢ 1.1¢ 3.1¢
Capital return attributable to Ordinary shareholders (€'000) (20,684) (21,234) (9,997)
Weighted average number of shares in issue during the period 412,174,356 412,174,356 412,174,356
Total capital return per ordinary share (5.0¢) (5.2¢) (2.4¢)
Basic and diluted earnings per ordinary share (2.8¢) (4.1¢) 0.7¢
Earnings per share is calculated on the revenue and capital loss for the
period (before other comprehensive income) and is calculated using the
weighted average number of Shares in the period of 412,174,356 shares (2024:
412,174,356 shares).
7. Distributions
Half year ended 30 June 2025 Half year ended 30 June 2024 Year ended 31 December 2024
Unaudited €'000 Unaudited €'000 Audited €'000
2024 Fourth Interim dividend of 0.97c/0.81p per 3,998 - -
Share paid 31 March 2025
(2023 No fourth Interim dividend)
2025 First Interim dividend of 1.06/0.89p per 4,369 - 5,812
Share paid 30 June 2025
(2024 First Interim dividend of 1.41c/1.21p per
Share paid 5 July 2024)
2024 Second Interim dividend of 0.90c/0.77p per - - 3,710
Share paid 27 September 2024
2024 Third Interim dividend of 1.05c/0.87p per - - 4,328
Share paid 31 December 2024
Total dividend paid 8,367 - 13,850
Fourth quarterly interim dividend for 2024 was split 0.64¢ (0.53p) dividend
income and 0.33¢ (0.28p) qualifying interest income. Although the payment
relates to year ended 31 December 2024, under International Financial
Reporting Standards, the distribution is recognised when paid, therefore
reflected in half year ended 30 June 2025. First quarterly interim dividend
for 2025 was split 0.85¢ (0.71p) dividend income and 0.21¢ (0.18p)
qualifying interest income.
On 27 February 2025, the Board resolved to return approximately £16.5 million
in aggregate to Shareholders via a first issue of B Shares. B Shares of one
penny each were paid up from the Company's special distributable reserve and
issued to all Shareholders by way of a bonus issue on the basis of 4 B Shares
for every 1 Ordinary Share held at the record date of 6 March 2025. The B
Shares were issued and immediately redeemed with the proceeds totalling
£16,486,974, equivalent to 4 pence per Ordinary Share, paid on 20 March 2025.
On 16 July 2025, the Board further resolved to return approximately £49.5
million in aggregate to Shareholders via a second issue of B Shares on the
basis of 12 B Shares for every 1 Ordinary Share held at the record date of 30
July 2025. The proceeds from the redemption of the B Shares, equivalent to
12.0 pence per Ordinary Share and totalling £49,460,923, were paid to
Shareholders on 13 August 2025.
On 29 August 2025 the Board resolved to return approximately £53.5 million in
aggregate to Shareholders via a third issue of B Shares on the basis of 13 B
Shares for every 1 Ordinary Share held at the record date of 16 September
2025. The proceeds from the redemption of the B Shares, equivalent to 13.0
pence per Ordinary Share and totalling £53,582,666, have a pay date of 30
September 2025.
8. Net asset value per share
30 June 2025 Unaudited 30 June 2024 Unaudited 31 December 2024 Audited
Net assets attributable to shareholders (€'000) 334,635 368,224 374,108
Number of shares in issue 412,174,356 412,174,356 412,174,356
Net asset value per share (cents) 81.2¢ 89.3¢ 90.8¢
9. Investment properties
30 June 2025 30 June 2024 31 December 2024
Unaudited €'000 Unaudited €'000 Audited €'000
Opening carrying value 497,319 636,187 636,187
Acquisition costs, disposal costs and capital expenditure - 2 31
Proceeds from disposal of investment property - - (15,700)
Realised gain on disposal - - 265
Right of use asset reassessment - - 429
Valuation losses (19,089) (7,962) (6,915)
Provision for disposal costs under non going concern basis - (12,450) -
Movements in lease incentives (802) (64) 1,010
Decrease in leasehold liability (205) - (379)
Transfer to Investment property held for sale (323,004) - (117,609)
Total carrying value 154,219 615,713 497,319
Movements in investment property held for sale can be analysed as follows:
30 June 2025 30 June 2024 31 December 2024
Unaudited €'000 Unaudited €'000 Audited €'000
Opening carrying value 117,609 17,500 17,500
Transfer to investment property held for sale 323,004 - 117,609
Disposal of investment property held for sale (29,700) (17,500) (17,500)
Disposal costs 502 230 230
Realised loss on disposal (505) (230) (230)
Total carrying value 410,910 - 117,609
The fair value of investment properties amounted to €545,199,000 (31
December 2024: €593,991,000). For properties that were disposed of
subsequent to the period end, the Company has reflected the disposal proceeds
(before deduction of sales costs) as the fair value at the reporting date.
Independent valuations continue to be used for all other investment
properties. Management considers the disposal proceeds to represent the best
estimate of fair value for these assets, given the proximity of the disposal
dates to the reporting period end.
The difference between the fair value and the value per the Condensed
Consolidated Balance Sheet as at 30 June 2025 consists of accrued income
relating to the pre-payment for rent-free periods recognised over the life of
the lease of €4,264,000 (31 December 2024: €3,462,000) and lease asset
relating to future use of the leasehold at Den Hoorn of €24,194,000 (31
December 2024: €24,399,000). The rent incentive balance is recorded
separately in the financial statements as a current asset and the lease asset
is offset by an equal and opposite lease liability.
On 24 January 2025 the Group announced that it completed the sale of two
warehouses located in Spain for €29,700,000 realising a loss of €518,000.
These properties were classified as an investment property held for sale in
the 31 December 2024 financial statements.
10. Trade and other receivables
30 June 2025 30 June 2024 31 December 2024
Unaudited €'000 Unaudited €'000 Audited €'000
Trade debtors 8,331 8,101 9,748
Bad debt provisions (352) (183) (573)
Lease incentives 4,264 3,346 3,462
Deposit on sale of Investment properties held with notary - - 2,970
Held with Registrar - 5,812 -
VAT receivable 1,173 706 455
Tax receivables 830 678 930
Other receivables 6 6 6
Total receivables 14,252 18,466 16,998
Amounts held with registrar relate to the first interim distribution that was
transferred to the Registrar before 30 June 2024 but not paid to the
Shareholders until 5 July 2024.
Lease incentives include accrued income resulting from the spreading of lease
incentives and/or minimum lease payments over the term of the lease. A
proportion of this balance relates to periods over 12 months.
11. Leasehold liability
30 June 2025 30 June 2024 31 December 2024
Unaudited €'000 Unaudited €'000 Audited €'000
Maturity analysis - contractual undiscounted cash flows 682 659 682
Less than one year
One to five years 2,728 2,636 2,728
More than five years 25,559 25,889 25,900
Total undiscounted lease liabilities 28,969 29,184 29,310
Lease liability included in the Condensed 682 659 682
Consolidated Balance Sheet
Current
Non - Current 23,512 23,503 23,717
Total lease liability 24,194 24,162 24,399
12. Trade and other payables
30 June 2025 30 June 2024 31 December 2024
Unaudited €'000 Unaudited €'000 Audited €'000
Rental income received in advance 4,020 4,126 3,912
Tenant deposits 3,565 3,781 3,759
Trade payables 4,652 3,669 2,496
Deposit on sale of Investment properties - - 2,970
Accruals 765 2,322 869
Management fee payable 530 1,386 573
VAT payable 779 847 743
Total payables 14,311 16,131 15,322
13. Bank loans
30 June 2025 30 June 2024 31 December 2024
Unaudited €'000 Unaudited €'000 Audited €'000
Opening balance 236,615 256,524 235,700
Bank loans repaid (28,660) (11,000) (6,384)
Accumulated amortisation of capitalised borrowing costs - 2,939 5,224
Remeasurement of loan liability (915) - 2,075
Closing balance 207,040 248,463 236,615
Following the announcement of the managed wind-down the Group intends to repay
a number of loans prior to maturity. The amortised cost of bank loans was
therefore remeasured and any unamortised balance of loan issue cost was fully
amortised as at 31 December 2024.
Remeasurement of loan liability for 30 June 2025 includes reversal of
provision for break cost not payable on sale of property companies completed
after 30 June 2025.
30 June 2025 30 June 2024 31 December 2024
Unaudited €'000 Unaudited €'000 Audited €'000
Maturity less than 1 year 163,840 55,200 140,300
Maturity above 1 year 43,200 193,263 96,315
Total payables 207,040 248,463 236,615
14. Share capital
30 June 2025 30 June 2024 31 December 2024
Unaudited €'000 Unaudited €'000 Audited €'000
Opening balance 4,717 4,717 4,717
Closing balance 4,717 4,717 4,717
Ordinary Shareholders participate in all general meetings of the Company on
the basis of one vote for each Share held. Each Ordinary share has equal
rights to dividends and equal rights to participate in a distribution arising
from a winding up of the Company. The Ordinary Shares are not redeemable.
The total number of Shares authorised, issued and fully paid is 412,174,356.
The nominal value of each Share is £0.01 and amount paid for each Share was
£1.00.
On 22 November 2024 shareholders approved the implementation of a B Share
mechanism to facilitate the return of capital as part of the managed
wind-down. The Board believes that one of the fairest and most efficient ways
of returning substantial amounts of cash to shareholders is by means of bonus
issues of redeemable B Shares (with a nominal value of one penny each) which
are then immediately redeemed by the Company in consideration for a cash
payment equal to the amount treated as paid up on the issue of the B Shares.
The use of B Shares enables the Company to return capital on a strictly pro
rata basis, ensuring that no individual shareholder or group of shareholders
is disadvantaged. When issued, B Shares are issued to shareholders (at no cost
to Shareholders) pro rata to their holdings of Ordinary Shares at the time of
issue of the B Shares and, shortly thereafter, redeemed and cancelled in
accordance with their terms for an amount not exceeding the amount treated as
paid up on the issue of the B Shares. The Company will not allot any fractions
of B Shares, and the entitlement of each shareholder will be rounded down to
the nearest whole B Share.
15. Financial instruments and investment properties
Fair value hierarchy
IFRS 13 requires the Group to classify its financial instruments held at fair
value using a hierarchy that reflects the significance of the inputs used in
the valuation methodologies. These are as follows:
Level 1 - quoted prices in active markets for identical investments;
Level 2 - other significant observable inputs (including quoted prices for
similar investments, interest rates, prepayments, credit risk, etc.); and
Level 3 - significant unobservable inputs.
The following table shows an analysis of the fair values of investment
properties recognised in the balance sheet by level of the fair value
hierarchy:
Level 1 €'000 Level 2 €'000 Level 3 €'000 Total fair value €'000
30 June 2025 (unaudited) - - 154,219 154,219
Investment properties - - 410,910 410,910
Investment properties held for sale
30 June 2024 (unaudited) - - 615,713 615,713
Investment properties - - - -
Investment properties held for sale
31 December 2024 (audited) - - 497,319 497,319
Investment properties - - 117,609 117,609
Investment properties held for sale
The lowest level of input is the underlying yields on each property which is
an input not based on observable market data.
The following table shows an analysis of the fair values of derivative
financial instruments recognised in the balance sheet by level of the fair
value hierarchy:
Level 1 Level 2 Level 3 Total fair value €'000
€'000
€'000
€'000
30 June 2025 (unaudited) - 12 - 12
Interest rate swaps and caps
30 June 2024 (unaudited) - 1,708 - 1,708
Interest rate swaps and caps
31 December 2024 (audited) - 366 - 366
Interest rate swaps and caps
The lowest level of input for interest rate swaps and caps are current market
interest rates and yield curve over the remaining term of the instrument.
Derivatives are measured at fair value calculated by reference to forward
exchange rates for contracts with similar maturity profiles.
Bank loans are measured at amortised cost. The fair value is estimated using
discounted cash flows with the current interest rates and yield curve
applicable to each loan. Due to wind-down of Company bank loans' fair value is
considered to be the same as amortised cost as at 30 June 2025.
Level 1 Level 2 Level 3 Total fair value €'000
€'000
€'000
€'000
30 June 2025 (unaudited) - 207,040 - 207,040
Bank loans
30 June 2024 (unaudited) - 248,463 - 248,463
Bank loans
31 December 2024 (audited) - 235,580 - 235,580
Bank loans
16. Related party transactions
The Company's Alternative Investment Fund Manager ('AIFM') throughout the
period was abrdn Fund Managers Limited ("aFML"). Under the terms of a
Management Agreement dated 17 November 2017 the AIFM is appointed to provide
investment management, risk management and general administrative services
including acting as the Company Secretary. The agreement is terminable by
either the Company or aFML on not less than 12 months' written notice.
Under the terms of the agreement portfolio management services are delegated
by aFML to abrdn Investments
Ireland Limited ("aIIL"). The total management fees charged to the
Consolidated Statement of Comprehensive
Income during the period were €871,000 and €530,000 was payable at the
period end. Under the terms of a Global Secretarial Agreement between aFML and
abrdn Holdings Limited ('aHL'), company secretarial services are provided to
the Company by aHL.
For half year to 30 June 2025, the Directors of the Company received fees for
their services totalling £71,000 equivalent to €82,000.
17. Post balance sheet events
On 11 July 2025 the Company announced that it had successfully concluded the
sale of its two warehouses located in Flörsheim and Erlensee, Germany, for an
aggregate property value of approximately €66.5 million.
Following the completion of these two sales and of the Company's two German
assets, the Board resolved to make a second capital distribution to
Shareholders under the shareholder approved B Share Scheme of the aggregate
net sales proceeds available, which totalled approximately £49.5 million. The
B Shares were issued on 31 July 2025 and immediately redeemed at one penny per
B Share. On 16 July 2025 the Company concluded the sale of two further
warehouses, located in Horst and s'Heerenberg, the Netherlands, for an
aggregate property value of €34.7 million.
On 31 July 2025 the Company completed the sale of its Gavilanes warehouse
portfolio in Madrid, Spain. The transaction was structured as a corporate
disposal, involving the sale of the Spanish subsidiaries that held the
underlying property assets, for a net consideration of approximately €146
million.
On 29 August the Company announced a third capital distribution to
Shareholders totalling approximately £53.6 million. B Shares were issued on
17 September 2025 and immediately redeemed at one penny per B Share.
18. Ultimate parent company
In the opinion of the Directors on the basis of shareholdings advised to them,
the Company has no immediate or ultimate controlling party.
19. Half yearly report
This Half Yearly Report was approved by the Board and authorised for issue on
26 September 2025.
* Neither the Company's website nor the content of any website accessible from
hyperlinks on it (or any other website) is (or is deemed to be) incorporated
into, or forms (or is deemed to form) part of this announcement.
By order of the Board
ABRDN HOLDINGS LIMITED
26 September 2025
Glossary of Terms and Definitions and Alternative
Performance Measures
Aberdeen
The brand of the investment businesses of Aberdeen Group Plc
AIC
Association of Investment Companies
AIC SORP
Association of Investment Companies Statement of Recommended Practice:
Financial Statements of Investment Trust Companies and Venture Capital Trusts,
issued November 2014 and updated July 2022
AIFMD
The Alternative Investment Fund Managers Directive
AIFM
The alternative investment fund manager, being aFML
Alternative performance measures
Alternative performance measures are numerical measures of the Company's
current, historical or future performance, financial position or cash flows,
other than financial measures defined or specified in the applicable financial
framework. The alternative performance measures that have been adopted by the
Company are in line with general comparable measures used widely across the
investment trust industry such as the level of discount/ premium, NAV/Share
price total return and ongoing charges which are each explained more fully
below. The Company's applicable financial framework includes IFRS and the AIC
SORP
Annual rental income
Cash rents passing at the Balance Sheet date
aFML or AIFM or Manager
abrdn Fund Managers Limited
aIIL or the investment manager
abrdn Investments Ireland Limited is a wholly owned subsidiary of abrdn plc
and acts as the Company's investment manager
Asset cover
The value of a company's net assets available to repay a certain security.
Asset cover is usually expressed as a multiple and calculated by dividing the
net assets available by the amount required to repay the specific security
Contracted rent
The contracted gross rent receivable which becomes payable after all the
occupier incentives in the letting have expired
Covenant strength
This refers to the quality of a tenant's financial status and its ability to
perform the covenants in a lease
Dividend cover**
The ratio of the Company's net profit after tax (excluding the below items) to
the dividends paid
As at As at
30 June 2025 €'000 31 December 2024 €'000
Earnings per IFRS income statement (11,429) 3,030
Adjustments to calculate dividend cover:
Net changes in the value of investment property 20,160 6,284
(Losses)/gains on disposal of investment property 505 (35)
Gains on termination of derivative financial instruments (12) (13)
Capitalised finance costs (797) 915
Remeasurement of loan liability - 1,159
Tax on disposal of investment property 392 482
Deferred taxation (209) 771
Effect of fair value adjustments on derivative financial instruments 300 1,311
Effects of foreign exchange differences 197 427
Profits (A) 9,107 14,331
Dividend (B) 8,367 13,850
Dividend Cover (A)/(B) 108.8% 103.5%
Discount to net asset value per share**
The amount by which the market price per share of an investment trust is lower
than the net asset value per share. The discount is normally expressed as a
percentage of the NAV per share. The opposite of a discount is a premium
Half year ended 30 June 2025 Year ended 31 December 2024
Share price (A) 62.0p 58.8p
NAV (B) 69.5p 75.3p
Discount (A-B)/B (10.8%) (21.9%)
Earnings per share
Profit for the period attributable to shareholders divided by the weighted
average number of shares in issue during the period
EPRA
European Public Real Estate Association
EPRA earnings per share**
Earnings per share calculated in line with EPRA best practice recommendations
30 June 2025 €'000 31 December 2024 €'000
Earnings per IFRS income statement (11,429) 3,030
Adjustments to calculate EPRA Earnings, exclude: 20,160 6,284
Changes in value of investment properties
(Losses)/gains on disposal of investment properties 505 (35)
Tax on profits on disposals 392 482
Deferred tax (209) 771
Gains on termination of financial instruments (12) (13)
Early loan repayment costs (797) 915
Changes in fair value of financial instruments EPRA Earnings 300 1,311
8,910 12,745
Weighted average basic number of shares ('000) 412,174 412,174
EPRA Earnings per share (cents) 2.2¢ 3.1¢
EPRA net tangible assets per share**
A set of standardised NAV metrics prepared in compliance with EPRA best
practice recommendations
30 June 2025 €'000 31 December 2024 €'000
IFRS NAV 334,635 374,108
Exclude: (12) (366)
Fair value of financial instruments
Deferred tax adjustment in relation to fair value gain on investment property# 9,802 10,700
344,425 384,442
Shares in issue at period end ('000) 412,174 412,174
EPRA NAV (Net Tangible Assets) per share (cents) 83.6 93.3
# Excludes deferred tax adjustments on other temporary differences, recognised
under IFRS.
ERV
The estimated rental value of a property, provided by the property valuers
Europe
The member states of the European Union, the European Economic Area ("EEA")
and the members of the European Free Trade Association ("EFTA") (and including
always the United Kingdom, whether or not it is a member state of the European
Union, the EEA or a member of EFTA)
Gearing (see note 9 for details)
Calculated as gross external bank borrowings dividend by total assets
As at As at
30 June 2025 31 December 2024
€'000 €'000
Bank Loans 207,040 235,700
Gross Assets 589,984 661,197
Exclude IFRS 16 right of use asset (24,194) (24,399)
Adjusted gross assets 565,790 636,798
Gearing 36.6% 37.0%
Group
The Company and its subsidiaries
Gross assets
The aggregate value of the total assets of the Company as determined in
accordance with the accounting principles adopted by the Company from time to
time
FRC
Financial Reporting Council
IFRS
International Financial Reporting Standards
Index linked
The practice of linking the review of a tenant's payments under a lease to a
published index, most commonly the Retail Price Index (RPI) but also the
Consumer Price Index (CPI) and French Tertiary Activities Rent Index (ILAT)
Key information document or KID
The Packaged Retail and Insurance-based Investment Products (PRIIPS)
Regulation requires the AIFM, as the Company's PRIIP "manufacturer," to
prepare a key information document ("KID") in respect of the Company. This KID
must be made available by the AIFM to retail investors prior to them making
any investment decision and is available via the Company's website. The
Company is not responsible for the information contained in the KID and
investors should note that the procedures for calculating the risks, costs and
potential returns are prescribed by law. The figures in the KID may not
reflect the expected returns for the Company and anticipated performance
returns cannot be guaranteed
Lease incentive
A payment used to encourage a tenant to take on a new lease, for example by a
landlord paying a tenant a sum of money to contribute to the cost of a
tenant's fit-out of a property or by allowing a rent free period
Leverage
For the purposes of the Alternative Investment Fund Managers Directive,
leverage is any method which increases the Company's exposure, including the
borrowing of cash and the use of derivatives. It is expressed as a ratio
between the Company's exposure and its net asset value and can be calculated
on a gross and a commitment method. Under the gross method, exposure
represents the sum of the Company's positions after the deduction of sterling
cash balances, without taking into account any hedging and netting
arrangements. Under the commitment method, exposure is calculated without the
deduction of sterling cash balances and after certain hedging and netting
positions are offset against each other. At the period end actual level of
leverage was 162.9% (31 December 2024: 158.8%)
Liquidation net asset value**
Following the announcement of the managed wind-down, the Company also prepares
a net asset value on a liquidation basis that includes deduction of estimated
costs associated with liquidation of the properties and companies. This
excludes day-to-day operating expenses which are dependent on the progression
of sales and eventual liquidation of the Company and underlying SPVs
Half year ended Year ended
30 June 2025 31 December 2024
€'000 €'000
Net asset value 334,635 374,108
Provision for disposal and liquidation costs (11,375) (12,382)
Deferred tax impact 1,546 1,662
Liquidation NAV 324,806 363,388
Liquidation net asset value per share**
Half year ended 30 June 2025 Year ended 31 December 2024
Liquidation NAV (€'000) 324,806 363,388
Number of shares ('000) 412,174 412,174
Liquidation NAV per share (cents) 78.8 88.2
Net asset value total return (EUR) per share**
The return to shareholders, expressed as a percentage of opening NAV,
calculated on a per share basis by adding dividends paid in the period to the
increase or decrease in NAV. Dividends are assumed to have been reinvested in
the period they are paid, excluding transaction costs
Half year ended 30 June 2025 Year ended 31 December 2024
Opening NAV 90.8¢ 93.4¢
B Share redemption (4.8¢) 0.0¢
Movement in NAV (4.8¢) (2.6¢)
Closing NAV 81.2¢ 90.8¢
% decrease in NAV (5.3%) (2.8%)
Impact of reinvested dividends 1.9% 3.7%
NAV total return (3.4%) 0.9%
Net asset value or NAV per share**
The value of total assets less liabilities. Liabilities for this purpose
include current and long-term liabilities. The net asset value divided by the
number of shares in issue produces the net asset value per share
Ongoing charges ratio(**)
Ratio of expenses as a percentage of average daily shareholders' funds
calculated as per the industry standard
Passing rent
The rent payable at a particular point in time
PIDD
The pre-investment disclosure document made available by the AIFM in relation
to the Company
Premium to net asset value per share**
The amount by which the market price per share of an investment trust exceeds
the net asset value per share. The premium is normally expressed as a
percentage of the net asset value per share. The opposite of a premium is a
discount
Prior charges
The name given to all borrowings including long and short-term loans and
overdrafts that are to be used for investment purposes, reciprocal foreign
currency loans, currency facilities to the extent that they are drawn down,
index-linked securities, and all types of preference or preferred capital,
irrespective of the time until repayment
Portfolio fair value
The market value of the company's property portfolio, which is based on the
external valuation provided by Savills (UK) Limited
The Royal Institution of Chartered Surveyors (RICS)
The global professional body promoting and enforcing the highest international
standards in the valuation, management and development of land, real estate,
construction and infrastructure
Share price total return (GBP) per share**
The return to shareholders, expressed as a percentage of opening share price,
calculated on a per share basis by adding dividends paid in the period to the
increase or decrease in share price. Dividends are assumed to have been
reinvested on the ex-dividend date, excluding transaction costs
Half year ended 30 June 2025 Year ended 31 December 2024
Opening Share Price 58.8p 61.6p
B Share redemption (4.0p) 0.0p
Movement in share price 7.2p (2.8p)
Closing share price 62.0p 58.8p
% increase/(decrease) in share price 12.2% (4.5%)
Impact of reinvested dividends 3.9% 4.6%
Share price total return 16.2% 0.1%
SPA
Sale and purchase agreement
SPV
Special purpose vehicle
Total assets
Total assets less current liabilities (before deducting prior charges as
defined above)
WAULT
Weighted Average Unexpired Lease Term. The average time remaining until the
next lease expiry or break date
** Defined as an Alternative Performance Measure
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. END IR BLGDCXBDDGUIRecent news on abrdn European Logistics Income
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Announcement