REG - abrdn Euro Logistics - Unaudited Net Asset Value as at 31 December 2024

abrdn European Logistics IncomeAnnouncement

24/02/2025 07:00

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RNS Number : 0933Y  abrdn European Logistics Income plc  24 February 2025

abrdn European Logistics Income plc

24 February 2025

abrdn European Logistics Income plc

Unaudited Net Asset Value as at 31 December 2024

24 February 2025 - abrdn European Logistics Income plc (the "Company" or
"ASLI"), the Company which is invested in a diversified portfolio of European
logistics real estate, announces its unaudited Net Asset Value ("NAV") for the
quarter ended 31 December 2024. The NAV is presented both including and
excluding estimated property disposal and SPV liquidation costs in order to
provide enhanced disclosure for shareholders. Further details can be found
below.

Summary

-    IFRS NAV per Ordinary share remained stable at 90.8c (GBp - 75.3p) (30
September 2024: 90.9c (GBp - 76.0p))

-    NAV per Ordinary share including full provision of estimated
portfolio disposal and company structure liquidation costs, increased by 0.6%
to 88.2c (GBp - 73.7p) (30 September 2024: 87.6c (GBp - 73.2p))

-    EPRA Net Tangible Assets also remained stable at 93.3c per Ordinary
share (30 September 2024 - 93.5c)

-    The portfolio valuation on a like-for-like basis (excluding Oss)
increased €2.24 million or 0.4% to €593.99 million

-    Sale of the freehold of the warehouse located in Oss, The Netherlands,
for a consideration of €15.7 million and repayment of €9.9 million of the
outstanding €44.2 million debt

-    Sale of two assets located in Spain completed in January 2025 for an
aggregate consideration of €29.7 million and repayment of €17.7 million of
the outstanding €51 million debt facility

-    At the quarter end, the Company had aggregate fixed debt facilities
totalling €235.7 million with a Loan to Value ('LTV') of 37% and an average
all-in interest rate of 2.02%

-    Accretive leasing activity during the quarter with two new lettings
concluded at Gavilanes, Spain.

Asset Sales

On 24 January 2025, the Company announced that it had concluded the sale of
the freehold of the 12,384 square metre warehouse located in Oss, The
Netherlands, in late December for a consideration of €15.7 million. The
asset, constructed in 2019 and strategically located between the Port of
Rotterdam and the Ruhr area, was sold to the tenant, Orangeworks.

The sale price was in line with the latest available valuation for Q3 2024
and, following the completion of the transaction, the Company paid down €9.9
million of the outstanding €44.2 million debt, which is cross collateralised
with Ede and Waddinxveen, provided by Berlin Hyp.

The Company also announced the sale of two assets located in Spain concluded
in January following a competitive open sales process to Fidelity Real Estate
Logistics for an aggregate consideration of €29.7 million, 11.9% ahead of
the Q3 2024 valuation.

The 6,805 square metre cross-dock warehouse in Coslada, Madrid, is leased to
DHL (Spain) and is located in a prime location near Madrid Barajas Airport,
within the A-2 Corridor del Henares - considered the first logistics ring in
Madrid.

The second asset sold was the 13,907 square metre warehouse in Polinyà,
Barcelona, located in a prime area within the first logistics ring 20 minutes
from the city centre of Barcelona, close to the AP-7 highway and leased to
Mediapost.

Of the net proceeds from the sale of these two Spanish properties, €17.7
million was applied in paying down a portion of the €51 million ING Bank
secured debt, which is cross collateralised with Gavilanes, Madrid, Unit 4
which is occupied by Amazon, reducing the Company's gearing further.

Continued sales process

Detailed due diligence is ongoing over three assets in the Company's portfolio
representing some 90,000 square metres of rentable area and further details
will be provided as sales complete.

Further assets are being prepared for sale with agents appointed with a view
to effecting further sales in Q2. In parallel, the Investment Manager
continues to have an open and direct dialogue with parties interested in
purchasing prime logistics space. The Investment Manager and the Board hold
monthly calls to discuss the sales programme that has been implemented,
progress to date and asset management initiatives where valuations may be
enhanced in advance of any sale.

Managed Wind-Down

Under the shareholder approved managed wind-down process, the Company's
investment objective is 'to realise all existing assets in the Company's
portfolio in an orderly manner' and to return net proceeds following the
repayment of debt to shareholders.

The quantum and timing of any return(s) of capital to Shareholders under the B
Share Scheme is at the discretion of the Board and dependent on the
realisation of the Company's investments and its liabilities, general working
capital requirements and the amount and nature (from a tax perspective) of its
distributable reserves. An initial return of capital following these sales and
the repatriation of cash from the Company's SPVs is expected by the end of
March 2025. An announcement will be released shortly with details.

Performance

For Q4 2024, the portfolio valuation increased in aggregate by €2.24 million
or 0.4% on a like-for-like basis (excluding Oss) to €593.99 million (30
September 2024: €591.75 million excluding Oss, €607.45 million including
Oss).

The French and Polish assets saw small increases in aggregate valuations of
0.7% and 0.5% respectively while the German assets remained flat. The Dutch
assets declined in value by 2.4% in aggregate whilst the Company's Spanish
portfolio gained 2.9%.

As at 31 December 2024, the Company's share price was 58.8p, and as at the
date of this announcement the share price was 59.8p.

Leasing

Effective from 15 October 2024, MCR moved from its location at the Company's
Unit 2B asset (7,718 square metres) in Gavilanes, Madrid, taking up the
tenancy at the vacant Unit 3A and, in so doing, expanding its footprint to
16,500 square metres. The agreed rent per annum was €1,039,500 and the lease
is for a 7 year term with upward only CPI movements. MCR's previous lease for
Unit 2B had an approaching lease break in June 2025.

Simultaneously, Molecor, an international company in solutions for
infrastructure, building and waste treatment, took up the tenancy at the
vacated Unit 2B agreeing a 5 year lease with an annual rent per annum of
€509,388, with upward only CPI adjustments.

This accretive leasing activity improved the Company's WAULT and further
enhanced the positioning of the portfolio in Gavilanes, Madrid, ahead of
planned disposals this year.

Rent Collection

As at the date of this announcement, 98% of the expected rental income for the
quarter ended 31 December 2024 has been collected. Overall, tenants remain
stable and arrears are expected to be collected in due course as new leases
are agreed and signed.

Debt Financing

At the quarter end, the Company's fixed rate debt facilities totalled €235.7
million at an average all-in interest rate of 2.02%, with the earliest
refinancing of debt due in mid-2025. The LTV was 37.0%.

Following the sale of the two Spanish properties and repayment of €17.7m in
January 2025, the debt facility has reduced to €218m with all-in interest
rate of 1.93%.

As sales progress, the Manager continues to have close dialogue with the
Company's debt providers to ensure continuity of provision of facilities where
necessary.

Breakdown of NAV Movement

Set out below is a breakdown of the change to the unaudited net asset value
per Ordinary Share over the period from 1 October 2024 to 31 December
2024. To enhance shareholder information, the Company has prepared its
quarterly unaudited net asset value both including and excluding the
estimated costs of asset disposals and liquidation of the company structure.

EPRA Net Tangible Assets per share is 93.3 euro cents, which excludes deferred
tax liability.

                                                                               Per Share (€cents)     Attributable Assets (€m)    Comment
 IFRS Net assets as at 30 September 2024 excluding estimated liquidation and   90.9                   374.8
 disposal costs
 Unrealised and realised change in valuation of property portfolio             0.5                    2.2                         Portfolio of 24 assets, capital values of investments remained stable during
                                                                                                                                  the quarter
 Income earned for the period                                                  1.9                    8.0                         Income from the property portfolio and associated running costs
 Expenses for the period                                                       (1.5)                  (6.5)
 Deferred tax liability                                                        0.2                    0.9                         Net deferred tax liability on the difference between book cost and fair value
                                                                                                                                  of the portfolio and other temporary tax differences
 Interest rate swaps and caps/floors mark to market revaluation                (0.1)                  (0.4)                       Movement in the mark to market value of interest rate swaps
 Dividend declared on 28 November 2024                                         (1.0)                  (4.3)                       Third interim dividend 2024 of 1.05 euro cents per Ordinary share declared and
                                                                                                                                  paid during the quarter
 Other movements in reserves                                                   (0.1)                  (0.6)                       FX translation and movements in lease incentives
 IFRS Net assets as at 31 December 2024 excluding estimated liquidation and    90.8                   374.1
 disposal costs
 Estimated costs associated with disposal of portfolio and liquidation of the  (2.6)                  (10.7)
 Company structure
 Net assets as at 31 December 2024 including liquidation & disposal costs      88.2                   363.4

 

IFRS Net Asset Value analysis as at 31 December 2024 (unaudited)

                                    €m       % of net assets
 Fair value of Property Portfolio*  590.5    157.8%
 Cash                               25.0     6.7%
 Other Assets                       21.3     5.7%
 Total Assets                       636.8    170.2%
 External Debt                      (235.7)  -63.0%
 Other Liabilities                  (16.2)   -4.3%
 Deferred tax liability             (10.8)   -2.9%
 Total Net Assets                   374.1    100.0%

 

*After lease incentive adjustment.

The NAV per share as at 31 December 2024 is based on 412,174,356 shares of 1
pence each, being the total number of Ordinary shares in issue at that
time. As at the date of this announcement, the Company's share capital
consists of 412,174,356 Ordinary shares with voting rights.

The Board is not aware of any other significant events or transactions which
have occurred between 31 December 2024 and the date of publication of this
statement which would have a material impact on the financial position of the
Company.

Details of the Company and its property portfolio may be found on the
Company's website at: http://www.eurologisticsincome.co.uk

 

 

For further information please contact:

abrdn Fund Managers Limited
 

Ben
Heatley
                    +44 (0) 20 7156 2382

Investec Bank
plc
                +44 (0) 20 7597 4000

David Yovichic

Denis Flanagan

FTI
Consulting
+44 (0) 20 3727 1000

Dido Laurimore

Richard Gotla

Oliver Parsons

 

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