Unaudited Net Asset Value as at 31 December 2021
Updated : 07:00
LEI: 213800I9IYIKKNRT3G50
abrdn European Logistics Income plc
Unaudited Net Asset Value as at 31 December 2021
2021 saw double digital NAV Total Return growth for a second consecutive year
22 February 2022 - abrdn European Logistics Income plc (LSE: ASLI), the Company which invests in high quality European logistics properties, announces its unaudited quarterly Net Asset Value ("NAV") for the quarter ended 31 December 2021.
Highlights
· NAV per Ordinary share increased by 1.9% to 129.1c (GBp - 108.5p) (Exchange rate £1 : €1.19 (30 September 2021: £1 : €1.16) (30 September 2021: 126.7c (GBp - 109.0p)), reflecting a NAV total return of 12.4% (in Euro terms) for the 12 months to 31 December 2021
· Portfolio valuation increased by 2.5% or €16.5 million to €666.0 million, reflecting continued yield compression
· Madrid Phase IV, once completed, increases portfolio valuation to €740 million, using agreed purchase price
· Portfolio will comprise 13 urban logistics warehouses and 11 mid-box logistics warehouses, with 18 of the 24 assets constructed since 2018
· 98% of the rent due for the year ended 31 December 2021 collected
· A tenant base diversified across 50 occupiers, consisting predominantly of a mix of domestic and international third-party logistics providers, e-commerce and grocery-focused businesses
Evert Castelein, Fund Manager, abrdn, commented:
"In 2021, we deployed €274 million of capital into ten high-quality logistics assets, nine of which were last-mile logistics warehouses, the subsector which we believe offers the strongest rental growth potential. The portfolio is highly diversified by property, tenant and geography and we remain confident of maintaining the strong performance achieved to date in 2022 and beyond."
Tony Roper, Chairman of the Company, added:
"2021 was a successful year for the Company in terms of both acquisitions and NAV performance, as we continue to benefit from our early entry into what is a fast growing and dominant subsector. A strong commitment to sustainability, demonstrated by the Company's sector-leading GRESB rating with four out of five stars awarded for 2021, together with the inflation linked nature of the portfolio's leases, provides a strong platform for further growth."
Performance
The unaudited portfolio valuation increased by €16.5 million, or 2.5% (on a like-for-like basis and using the Madrid warehouse portfolio purchase price).
For the 12 month period to 31 December 2021, the share price total return (with dividends reinvested) was 12.4%, with the Company's net asset value total return over the same period 12.4% in Euro terms (5.4% in sterling terms).
As at 31 December 2021, the Company's share price was 116.0p.
Madrid Last-mile Portfolio Acquisition
On 14 December 2021 the Company announced the acquisition of a portfolio of newly constructed last-mile logistics warehouses with excellent sustainability credentials, located in the first ring of Madrid, Spain, for a total acquisition price of €227 million.
The portfolio consists of four phases ("Phases") with Phases I-III comprising seven newly constructed logistics warehouses and Phase IV comprising one in-development, logistics warehouse with accompanying multi-level delivery van parking station (together the "Madrid Portfolio"). Phases I-III were acquired on 10 December 2021 with Phase IV due for completion in Q2 2022.
The Madrid Portfolio is let to five tenants, with Amazon Europe ("Amazon") accounting for 43% of the total rental income. Global food retailer Carrefour, UK electric delivery vehicle maker Arrival and Spanish companies Talentum and MCR comprise the remaining tenants. On completion of Phase IV, Amazon is expected to become ASLI's largest tenant by rental income.
The Madrid Portfolio occupies a strategic micro location, at the intersection of Madrid's ring road, the M-50 motorway, and A-4 motorway, Spain's main north-south motorway, with occupiers benefiting from direct access via a newly constructed dual carriageway. The Madrid Portfolio is in close proximity to Madrid-Barajas International Airport and the Abroñigal intermodal freight terminal, providing good connectivity with the rest of Europe.
Equity raise
Following the successful September 2021 share issue, on 4 February 2022 the Company issued a further 34,545,455 new Ordinary shares at a price of 110.0 pence per new share pursuant to a placing and retail offer. This issue raised an additional £38 million (€45.6 million) enabling the Company to continue with its near-term acquisition strategy. As at the date of this announcement, the Company's share capital consists of 412,174,356 Ordinary shares with voting rights.
Pipeline
The Investment Manager remains in exclusivity on four assets, a mix of urban logistics and mid box distribution properties, located in France and the Netherlands, with an aggregate value of approximately €49 million. Three assets are located in France, on long-term leases with a French national third-party logistics provider, and one asset is located in the Netherlands let to a well-established food focused operator. All four assets currently have very low site coverage; and the Investment Manager anticipates attractive medium-term asset management opportunities, while benefiting from inflation-linked rental income.
Debt Financing
In November 2021, the Company signed a revised revolving credit facility agreement with Investec Bank, increasing the facility's capacity to €70 million, providing further flexibility for the acquisition of new properties. As at 31 December 2021, the Company level loan to value ("LTV") ratio was 25%.
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 2021 to 31 December 2021. The unaudited net asset value has been prepared under International Financial Reporting Standards ("IFRS").
| Per Share (€cents) | Attributable Assets (€m) | Comment |
| |||
Net assets as at 30 September 2021 | 126.7 | 333.1 |
|
Unrealised change in valuation of property portfolio | 4.4 | 16.5 | Capital values increased 2.5% or €16.5 million (on a like-for-like basis and using the purchase price for the Madrid warehouse portfolio). Acquisition costs of €1.15m relate to the Madrid portfolio acquisition. Capital expenditure of €0.15m at the Company's Ede warehouse in the Netherlands relates to preparatory roof works to facilitate the installation of solar panels.
|
Acquisition and capital expenditure costs during the period | (0.3) | (1.3) | |
Income earned during the period | 1.6 | 6.2 | Income from the property portfolio and associated running costs. |
Expenses for the period | (0.9) | (3.3) | |
Deferred tax liability | (0.7) | (2.8) | Net deferred tax liability on the difference between book cost and fair value of the portfolio. |
FX hedge mark to market revaluation | 0.0 | 0.1 | Movement in the mark to market value of a hedge entered into in March 2021 to fix the EUR:GBP conversion of the 2021 dividend. |
Dividend paid 30 December 2021 | (1.4) | (5.3) | Third interim dividend of 1.41 euro cents (1.21 pence) per Ordinary share. |
Share issuance 1 October 2021 | (0.3) | 143.8 | Issue of 114,678,900 new ordinary shares. |
Foreign currency gain | 0.2 | 0.9 | Foreign currency gain in the period. |
Other movements in reserves | (0.2) | (0.4) | Movement in lease incentives in the period. |
Net assets as at 31 December 2021 | 129.1 | 487.5 |
|
EPRA Net Tangible Assets per share is 136.4 Euro cents, which excludes deferred tax liability and fair value of the FX derivative.
Net Asset Value analysis as at 31 December 2021 (unaudited)
| €m | % of net assets |
Property Portfolio | 666.0 | 136.6% |
Adjustment for lease incentives | (5.0) | (1.0%) |
Fair value of property portfolio | 661.0 | 135.6% |
Cash | 23.3 | 4.8% |
Other Assets | 21.2 | 4.4% |
Total Assets | 705.5 | 144.8% |
Bank Loans | (175.9) | (36.1%) |
Other Liabilities | (14.6) | (3.1%) |
Deferred Tax Liability | (27.5) | (5.6%) |
Total Net Assets | 487.5 | 100.0% |
The property portfolio valuation is based on the independent external valuation of the Company's direct property portfolio undertaken by CBRE GmbH and Savills Aguirre Newman Valoraciones y Tasaciones, S.A.U.
The NAV per share at 31 December 2021 is based on 377,628,901 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 2021 and the date of publication of this statement which would have a material impact on the financial position of the Company.
In line with its financial calendar, the Company expects to report its audited annual financial results for the year ended 31 December 2021 in April 2022.
Details of the Company and its property portfolio may also be found on the Company's website which can be found at: http://www.eurologisticsincome.co.uk
For further information please contact:
Aberdeen Standard Fund Managers Limited +44 (0) 20 7463 6000
Luke Mason
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
The above information is unaudited
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