Aberdeen Standard Eur Lgstc Inc PLC Net Asset Value as at 30 June 2018 (5240X)

TIDMASLI

RNS Number : 5240X

Aberdeen Standard Eur Lgstc Inc PLC

13 August 2018

Aberdeen Standard European Logistics Income PLC (LSE: ASLI) (the "Company")

LEI: 213800I9IYIKKNRT3G50

Net Asset Value at 30 June 2018

13 August 2018: Aberdeen Standard European Logistics Income PLC announces its unaudited quarterly Net Asset Value ("NAV") as at 30 June 2018.

Highlights

-- NAV per share of EUR1.11 (31 March 2018 - EUR1.11) as at 30 June 2018 (GBP - 98.3p, 31 March 18 GBP- 97.4p)

-- On 8 June, the Company announced that it has exchanged contracts to acquire a new development in a modern logistics hub located in Erlensee Langendiebach, Frankfurt for an expected net value of EUR33.3 million (subject to final rental conditions and full occupancy) from regional developer Ferdinand Fäth. Gross initial yield is 5.1% reflecting forecast passing rent and full occupancy. The target date for completion is end October 2018. An earn-out agreement means that the Company will pay the purchase price, based on the effective letting of the building, after completion of the construction works with a minimum occupancy rate to be delivered by the developer which has already signed lease agreements with two high quality tenants. Full take-up is expected for this prime asset by or around the time of completion.

   --       Post the period end three other assets have been acquired: 

o Conditional contracts to acquire a new freehold distribution warehouse in France, for an expected net value of EUR44.5 million at a gross yield of 5.29%. The property is fully leased out on a firm 9 years lease (fully indexed) to a leading supermarket chain in France. Contracts are expected to become unconditional by no later than 30 October 2018.

o A new logistics warehouse in the North of Spain for a net value of EUR15.3 million. The warehouse is currently under development with completion expected by mid-2019. On completion, the property will be fully let to a large international retailer on a fixed ten year lease with annual CPI indexation. The gross yield is 6.9%.

o A 39,840 square metres freehold logistics warehouse in Ede, Netherlands for a net value of EUR26.5 million from David Hart Group. A fully CPI-indexed lease has been signed with Dutch retail and pharmacy operator Kruidvat (part of the A S Watson Group) which commenced on 1 August 2018 for a period of 10 years (with no break option). A large part of the warehouse will be used to expand the company's growing e-commerce business. The estimated gross yield on the property is 6.3%.

-- Continued strong demand for the Company's shares. As at 31 July 2018 the share price was GBP1.075p - a premium to the 30 June 2018 NAV of 9.4%.

Investment Manager Commentary

We are on course to invest the proceeds from the Initial Public Offering ("IPO") by the end of the year, as we indicated in the IPO prospectus, with a number of assets in advanced stages of due diligence or in the pipeline. In addition we are already considering our debt options in order to fund additional acquisitions once the IPO proceeds have been fully utilised.

We believe the medium to long term outlook for the logistics sector remains very favourable. Given the strong tailwinds from healthy economic output and structural shifts in consumption patterns, demand drivers are likely to remain supportive, while construction levels remain relatively low. Development finance for speculative developments is still a barrier to a substantial increase in construction. Yields have compressed sharply, but we expect further compression over the next 12 to 24 months. Net operating income should grow as occupancy rates rise, inflation comes through in indexation in lease terms and headline rents continue to edge upwards in supply constrained markets. We forecast logistics total returns to reach mid-high single digits per annum over the next 3 years.

Breakdown of NAV movement

Set out below is a breakdown of the change to the unaudited net asset value per share calculated under International Financial Reporting Standards ("IFRS") over the period from 1 April 2018 to 30 June 2018.

 
 Aberdeen Standard European    Per Share (EURcents)    Attributable           Comment 
  Logistics Income                                     Assets (EURm) 
 Net assets as at 31 March 
  2018                                111.1               208.4 
                              ---------------------  ---------------  ---------------------- 
                                                                       Increase in valuation 
 Unrealised increase in                                                 of Florsheim asset 
  valuation of property                                                 acquired in February 
  portfolio                            0.1                 0.1          2018. 
                              ---------------------  ---------------  ---------------------- 
                                                                       Reflects income from 
                                                                        Florsheim offset by 
                                                                        negative interest 
 Income earned for the                                                  rate on Euro cash 
  period                               0.2                 0.2          holdings 
                              ---------------------  ---------------  ---------------------- 
 Expenses for the period              (0.2)               (0.4) 
                              ---------------------  ---------------  ---------------------- 
 Foreign currency loss                (0.1)               (0.1) 
                              ---------------------  ---------------  ---------------------- 
 Net assets as at 30 June 
  2018                                111.1               208.2 
                              ---------------------  ---------------  ---------------------- 
 

The EPRA NAV per share is EUR1.11

Net Asset Value analysis as at 30 June 2018 (unaudited)

 
                                         EURm   % of net assets 
 Total Property Portfolio             20.4           9.8% 
                                   ----------  ---------------- 
 Adjustment for lease incentives       0.0           0.0% 
                                   ----------  ---------------- 
 Fair value of Property 
  Portfolio                           20.4           9.8% 
                                   ----------  ---------------- 
 Cash                                 188.1          90.3% 
                                   ----------  ---------------- 
 Other Assets                          0.1           0.1% 
                                   ----------  ---------------- 
 Total Assets                         208.6         100.2% 
                                   ----------  ---------------- 
 Current liabilities                  (0.4)          -0.2% 
                                   ----------  ---------------- 
 Total Net Assets                     208.2         100.0% 
                                   ----------  ---------------- 
 

The NAV per share is based on the external valuation of the Company's direct property portfolio undertaken by CBRE.

The NAV per share at 30 June 2018 is based on 187,500,001 shares of 1p each, being the total number of shares in issue at that time.

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014). Upon the publication of this announcement via Regulatory Information Service this inside information is now considered to be in the public domain.

Details of the Company may also be found on the Company's website which can be found at: www.eurologisticsincome.co.uk

For further information:

Aberdeen Fund Managers Limited

0207 463 6000

William Hemmings

Gary Jones

Jonathon McManus

Canaccord Genuity Limited

0207 523 8000

Will Barnett

Neil Brierley

Dominic Waters

David Yovichic

Notes to Editors:

Aberdeen Standard European Logistics Income PLC is a UK investment trust with a premium listing on the Main Market of the London Stock Exchange. The Company invests in European logistics real estate to achieve its objective of providing its shareholders with a regular and attractive level of income return together with the potential for long term income and capital growth. The Company aims to invest in a portfolio of assets diversified by both geography and tenant throughout Europe, predominantly targeting well-located assets at established distribution hubs and within population centres.

The Company launched on 15 December 2017 raising gross proceeds of GBP187.5m. Portfolio management services are undertaken by Aberdeen Asset Managers Limited.

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 [e-mail] or visit www.rns.com.

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August 13, 2018 02:00 ET (06:00 GMT)