REG - abrdn Euro Logistics - Unaudited NAV as at 31 March 2025

abrdn European Logistics IncomeAnnouncement

28/05/2025 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:20250528:nRSb2949Ka&default-theme=true

RNS Number : 2949K  abrdn European Logistics Income plc  28 May 2025

abrdn European Logistics Income plc
LEI: 213800I9IYIKKNRT3G50

Unaudited Net Asset Value as at 31 March 2025

28 May 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 March 2025. 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

 -        B share issue/ redemption during the quarter returned €19.7m to shareholders
          equating to 4.8c (4.0p) per share

 -        The portfolio valuation on a like-for-like basis (excluding Barcelona and
          Madrid) increased €4.3 million or 0.8% to €568.6 million

 -        IFRS NAV per Ordinary share on a like-for-like basis increased by 1.1% at

        87.0c (GBp - 72.7p) (31 December 2024: 90.8c (GBp - 75.3p)), excluding share
          redemption of 4.8c during the quarter

 -        NAV per Ordinary share including full provision of estimated portfolio
          disposal and company structure liquidation costs, increased by 1.2% to 84.5c
          (GBp - 70.6p) (31 December 2024: 88.2c (GBp - 73.7p)), excluding B share
          redemption of 4.8c during the quarter

 -        EPRA Net Tangible Assets increased by 1% to 89.4c per Ordinary share (31
          December 2024 - 93.3c) excluding B share redemption of 4.8c during the quarter

 -        Sale of two assets located in Spain completed in January 2025 for an aggregate
          consideration of €29.7 million with associated repayment of €17.7 million
          of the outstanding €51 million debt facility. Bid process ongoing for sale
          of Getafe assets

 -        At the quarter end, the Company had aggregate fixed debt facilities totalling
          €218 million with a Loan to Value ('LTV') of 36.2% and an average all-in
          interest rate of 1.93%

 

Asset Sales

In January 2025, the Company announced the successful sale of the freehold of
the 12,384 square metre warehouse located in Oss, The Netherlands. The
transaction, completed in late December 2024, achieved a sale price of €15.7
million, in line with the most recent independent valuation at the time.
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.

Additionally, the Company announced the completion of the sale of two Spanish
assets in January 2025 to Fidelity Real Estate Logistics. The assets were sold
through a competitive open sales process for an aggregate consideration of
€29.7 million, representing a premium of 11.9% over the Q3 2024 valuations.

Of the net proceeds from the sale of these two properties, located in
Barcelona and Coslada, Madrid, €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.

Repayment of Capital via B shares

Pursuant to the authority received from Shareholders at the general meeting
held on 22 November 2024 and following the sale of the above assets, the Board
resolved to return approximately £16.5 million in aggregate to Shareholders
via the issue of B Shares. On 7 March 2025 1,648,697,424 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 on 6 March 2025.

The B Shares were immediately redeemed at their nominal value of one penny per
B Share with a Redemption Date of 7 March 2025. The proceeds from the
redemption of the B Shares, which was equivalent to 4 pence per Ordinary
Share, were sent to uncertificated Shareholders through CREST with cheques
posted to certificated Shareholders on 20 March 2025. No certificates were
issued in respect of the B Shares.

It is currently the Boards's intention to use this route again for the return
of capital as further assets are sold and cash becomes available.

Continued sales process

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 Company is currently under offer for the sale of five assets totalling
approximately 120,000 square metres and the Board is hopeful that contracts
will be exchanged in the coming weeks. Subject to successful completion of
these transactions and repayment of the associated debt, the Board anticipates
that this will enable a further distribution of capital to Shareholders by
mid-Q3. In addition, detailed due diligence and negotiations remain ongoing
over three further assets in the Company's portfolio representing
approximately 90,000 square metres of rentable space. Further updates will be
provided as these transactions progress and complete.

Further assets are at various stages of the sales process: some are already
being marketed or prepared for sale, and several have agents appointed with a
view to effecting sales in Q3. In parallel, the Investment Manager continues
to maintain active and direct engagement with parties interested in acquiring
prime logistics space. The Investment Manager and the Board hold monthly calls
with further ad-hoc meetings to review the progress of the sales programme,
assess asset management initiatives, and identify opportunities to enhance
value in advance of potential disposals.

Performance

For Q1 2025, the portfolio valuation increased in aggregate by €4.3 million
or 0.8% on a like-for-like basis (excluding Barcelona and Madrid) to €568.6
million (31 December 2024: €564.3 million excluding Oss, €593.99 million
including Madrid and Barcelona).

The French, German and Spanish assets saw increases in aggregate valuations of
1.7%, 1.2% and 1.8%% respectively while the Dutch and Polish assets
experienced marginal declines of 0.2% and 0.4%.

As at 31 March 2025, the Company's share price was 57.2p, and as at the date
of this announcement the share price was 57.0p.

Leasing

In March, tenant MCR signed a new 7-year lease (with a tenant break option
after 4 years) over the 5,500 square metre Unit 3C at Getafe, Madrid. The
lease was agreed at an annual rent of €375,000, with upward-only CPI
indexation, aligning with the ERV.

This leasing activity has reduced the Company's void rate to 2.6%.

Rent Collection

As at the date of this announcement, 99.6% of the expected rental income for
the quarter ended 31 March 2025 has been collected. Overall, the tenant base
remains stable and arrears continue to be collected as new leases have been
agreed and signed.

Debt Financing

At the quarter end, the Company's fixed rate debt facilities totalled €218
million, with an average all-in interest rate of 1.93%. The loan-to-value
(LTV) ratio was 36.2%. The earliest debt maturity is scheduled for mid-2025
and as asset sales progress, the Investment Manager remains in regular
dialogue with the Company's lenders to ensure continued access to facilities
as needed.

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 January 2025 to 31 March 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 89.4 euro cents, which excludes deferred
tax liability.

                                                                               Per Share (€cents)     Attributable Assets (€m)    Comment
 IFRS Net assets as at 31 December 2024 excluding estimated liquidation and    90.7                   374.1
 disposal costs
 Unrealised and realised change in valuation of property portfolio             0.9                    3.8                         Portfolio of 22 assets, capital values of investments increased by €4.3m
                                                                                                                                  during the quarter.

                                                                                                                                  Realised loss on sale of Barcelona and Madrid
 Income earned for the period                                                  1.9                    7.9                         Income from the property portfolio and associated running costs
 Expenses for the period                                                       (0.8)                  (3.4)
 Deferred tax liability                                                        0.1                    0.6                         Net deferred tax liability on the difference between book cost and fair value
                                                                                                                                  of the portfolio and other temporary tax differences
 Dividend declared on 17 February 2025                                         (1.0)                  (4.0)                       Fourth interim dividend 2024 of 0.97 euro cents per Ordinary share declared
                                                                                                                                  and paid during the quarter
 B shares issue/ redemption                                                    (4.8)                  (19.7)                      B shares issued and redeemed during Q1 2025 returning capital to shareholders
 Other movements in reserves                                                   (0.2)                  (0.7)                       FX translation and movements in lease incentives
 IFRS Net assets as at 31 March 2025 excluding estimated liquidation and       86.8                   358.6
 disposal costs
 Estimated costs associated with disposal of portfolio and liquidation of the  (2.3)                  (10.4)
 Company structure
 Net assets as at 31 March 2025 including liquidation & disposal costs         84.5                   348.2

 

IFRS Net Asset Value analysis as at 31 March 2025 (unaudited)

                                    €m       % of net assets
 Fair value of Property Portfolio*  564.8    157.5%
 Cash                               19.7     5.5%
 Other Assets                       17.4     4.9%
 Total Assets                       601.9    167.9%
 External Debt                      (218.0)  -60.8%
 Other Liabilities                  (15.3)   -4.3%
 Deferred tax liability             (10.0)   -2.8%
 Total Net Assets                   358.6    100.0%

 

*After lease incentive adjustment.

The NAV per share as at 31 March 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 31 Marh 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

 

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

 

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  NAVSEAFMWEISEFI