REG - abrdn Euro Logistics - Unaudited NAV as at 30 June 2025

abrdn European Logistics IncomeAnnouncement

03/09/2025 07:00

For best results when printing this announcement, please click on link below:
https://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20250903:nRSC7097Xa&default-theme=true

RNS Number : 7097X  abrdn European Logistics Income plc  03 September 2025

abrdn European Logistics Income plc
LEI: 213800I9IYIKKNRT3G50

Unaudited Net Asset Value as at 30 June 2025

3 September 2025 - abrdn European Logistics Income plc (the "Company" or
"ASLI") announces its unaudited Net Asset Value ("NAV") for the quarter ended
30 June 2025. To enhance disclosure for shareholders, the NAV is presented
both including and excluding estimated property disposal and SPV liquidation
costs.

Summary

 -        The portfolio valuation decreased by €23.4 million (-4.1%) to €545.2
          million. The valuations used in the NAV reflect actual sale prices achieved on
          properties sold post quarter end, with the reduction in valuation
          predominantly reflecting adjustments associated with the Gavilanes portfolio
          disposal.
 -        IFRS NAV per Ordinary Share decreased by 6.7% to 81.2c (GBp - 69.5p) (31 March
          2025: 87.0c (GBp - 72.7p)).
 -        NAV per Ordinary Share including provision for estimated portfolio disposal
          and company structure liquidation costs decreased by 6.7% to 78.8c (GBp -
          65.8p)(1) (31 March 2025: 84.5c (GBp - 70.6p)).
 -        EPRA Net Tangible Assets decreased by 6.5% to 83.6c per Ordinary Share (31
          March 2025 - 89.4c)
 -        Post the quarter end, the Company announced:

          -     Completion of disposals in Germany, the Netherlands and Spain
          totalling c.€275 million, further advancing the managed wind-down;

          -     Return of capital of approximately £103 million by way of the B
          Share scheme in two tranches, equivalent to 12.0 pence and 13.0 pence per
          Ordinary Share respectively.
 -        During the quarter, the Company repaid an €11 million loan expiring in June
          2025. At the quarter end, the Company had aggregate fixed debt facilities
          totalling €207 million with a Loan to Value ('LTV') of 36.6%. Following the
          completion of sales announced post quarter end, the Company's loans
          outstanding amount to €80.2 million.
          (1  ) The 30 June 2025 NAV figures set out above do not take account of the
          two B Share distributions declared after the quarter end, one of which was
          paid on 13 August 2025 and the other scheduled for payment on 30 September
          2025.  Additionally, the NAVs do not reflect the potential latent capital
          gains tax liability of 1-2 pence per share as disclosed in the RNS
          announcement dated 6 August 2025, the actual impact of which will depend on
          the structure and terms of future disposals.

Tony Roper, Chairman, commented:

"Since the managed wind-down began, we have announced returns of over £119
million to shareholders following the sale of 17 of the Company's assets.
While lower Eurozone rates have modestly improved the macroeconomic backdrop,
ongoing trade tensions, monetary divergence and geopolitical risks continue to
weigh on investor demand for logistics assets, factors which remain relevant
to the Company's ongoing sales processes for the remaining ten assets. The
Board and Investment Manager remain focused on balancing value, execution
certainty and speed of capital return."

Asset Sales

In July, the Company announced 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 31 March
2025 valuation. These sales were structured as SPV disposals, allowing the
associated secured debt provided by DZ Hyp Bank of €30.2 million to transfer
with the two properties.

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% discount to the 31 March 2025
valuation. The €11 million loan provided by Berlin Hyp related to these
assets was repaid during Q2 and is reflected in the Q2 2025 NAV.

The Company realised a net consideration of €146 million from the sale of
its nine-asset portfolio in Gavilanes, Madrid, completed on 31 July via a
corporate disposal of the Spanish subsidiaries. As previously noted, while no
CGT was crystallised on the disposal, the agreed pricing reflected the buyer
assuming responsibility for the latent CGT liability within the acquired
entities. The transaction enabled repayment of €77.3 million of ING Bank
debt. As at 31 March 2025, prior to disposal, the portfolio had been valued at
€168.6 million in the Company's NAV.

Finally on 6 August 2025, the Company announced the completion of the disposal
of its warehouse located in Zeewolde, the Netherlands, for approximately
€27.2 million, representing a 2.5% discount to the 31 March 2025 valuation.
Following this sale, €19.3 million of debt provided by Berlin Hyp was
repaid.

Repayment of Capital via B Shares

Following the completion of sales, the Board has resolved to make further
capital distributions to shareholders of available net proceeds under the
shareholder-approved B Share scheme.

On 16 July 2025, the Company announced a second return of capital to
shareholders of approximately £49.5 million, equivalent to 12.0 pence per
Ordinary Share which was paid on 13 August 2025.

On 29 August 2025, the Company announced a third B share distribution of
approximately £53.5 million, equivalent to 13.0 pence per Ordinary Share,
payable to shareholders on 30 September 2025. The distribution has a record
date of 16 September 2025.

Inclusive of these distributions, since the commencement of the managed
wind-down, shareholders will have received a total of 29.0 pence per Ordinary
Share in B share distributions, equivalent to an aggregate return of
approximately £119.5 million.

Continued Sales Process

The Company has continued to make progress with its shareholder-approved
managed wind-down. To date, 17 of the original 27 assets in the portfolio have
been sold, generating aggregate gross sales proceeds of more than €320
million before repayment of associated debt.

The remaining 10 assets are at various stages of the sales process, with
further completions targeted from Q4 2025 onwards.

Performance

For Q2 2025, the portfolio valuation decreased by €23.4 million,
representing a decline of 4.1% to €545.2 million (31 March 2025: €568.6
million). The Q2 valuation reflects the actual sale prices achieved on sales
completed after the quarter end with the reduction in valuation predominantly
reflecting adjustments associated with the Gavilanes portfolio disposal.

The German assets saw increases in aggregate valuations of 11.4%, Poland
remained stable whilst Spain, France and the Netherlands reduced by 13.5%,
6.2% and 1.6% respectively.

Rent Collection

As at the date of this announcement, 100% of the expected rental income for
the quarter ended 30 June 2025 had been collected. Overall, the remaining
tenant base remains stable.

Debt Financing

At the quarter end, the Company's fixed rate debt facilities totalled €207
million, with an average all-in interest rate of 2.2%, representing a
loan-to-value (LTV) ratio of 36.6%.

Following the completion of asset sales post quarter end and the associated
repayment of debt, the Company's outstanding debt has 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.

 Property           Country      Bank        Loan amount  End date      Interest        Bank margin

                                             (€'000)                    (incl margin)
 Avignon            France       BayernLB    22,000       12 Feb 2026   1.57%           1.00%
 Ede + Waddinxveen  Netherlands  Berlin Hyp  34,300       06 June 2026  3.30%           1.32%
 Den Hoorn          Netherlands  Berlin Hyp  23,928       14 Jan 2028   1.38%           1.20%
                                             80,228

 

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 March 2025 to 30 June 2025. 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 83.6 euro cents, which excludes deferred
tax liability.

 

                                                                                 Per Share (€cents)     Attributable Assets (€m)    Comment
 IFRS Net assets as at 31 March 2025 excluding estimate of liquidation and       86.8                   358.6
 disposal costs
 Unrealised and realised change in valuation of property portfolio               (5.5)                  (23.4)                      Portfolio of 22 assets, capital values of investments decreased by €23.4m
                                                                                                                                    during the quarter with assets sold post quarter end reflected in Q2 NAV at
                                                                                                                                    sales proceeds achieved.
 Income earned for the period                                                    2.0                    7.9                         Income from the property portfolio and associated running costs
 Expenses for the period                                                         (0.6)                  (2.4)
 Deferred tax liability                                                          (0.2)                  (0.8)                       Net deferred tax liability on the difference between book cost and fair value
                                                                                                                                    of the portfolio and other temporary tax differences
 Dividend declared on 19 May 2025                                                (1.1)                  (4.4)                       1(st) interim dividend for 2025 of 1.06 euro cents per Ordinary Share
                                                                                                                                    declared and paid during the quarter
 Other movements in reserves                                                     (0.2)                  (0.9)                       FX translation and movements in lease incentives
 IFRS Net assets as at 30 June 2025 excluding estimated liquidation and          81.2                   334.6
 disposal costs
 Estimate of costs associated with disposal of portfolio and liquidation of the  (2.4)                  (9.8)
 company structure
 Net assets as at 30 June 2025 including estimate of liquidation &           78.8                   324.8
 disposal costs

 

The 30 June 2025 NAV figures set out above do not take account of the two B
Share distributions declared after the quarter end, one of which was paid on
13 August 2025 and the other scheduled for payment on 30 September 2025.
Additionally, the NAVs do not reflect the potential latent capital gains tax
liability of 1-2 pence per share as disclosed in the RNS announcement dated 6
August 2025, the actual impact of which will depend on the structure and terms
of future disposals.

IFRS Net Asset Value analysis as at 30 June 2025 (unaudited)

                                    €m       % of net assets
 Fair value of Property Portfolio*  540.9    161.7%
 Cash                               6.7      2.0%
 Other Assets                       18.2     5.4%
 Total Assets                       565.8    169.1%
 External Debt                      (207.0)  -61.9%
 Other Liabilities                  (14.4)   -4.3%
 Deferred tax liability             (9.8)    -2.9%
 Total Net Assets                   334.6    100.0%

 *After lease incentive adjustment.

The NAV per share as at 30 June 2025 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 30 June 2025 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.aberdeeninvestments.com/en-gb/asli
(http://www.aberdeeninvestments.com/en-gb/asli)

 

For further information please contact:

abrdn Fund Managers Limited        +44 (0) 20 7156 2382

Ben Heatley

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

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  NAVSSMFIEEISEEU