Abrdn European Logistics... Share Discussion Threads

[alan pt] 07/3/2022 17:39

Just calculated it to be sure:

31 Dec Value
NAV=487.5M
shares in issue=377628901
NAV per share=129.1

Estimated Current Value
NAV=487.5M+45.6M=533.1M
shares in issue=377628901+34545455=377628901
NAV per share=129.3

Marginal increase in NAV, since the issue was at a premium to NAV

Exchange rates have moved against the euro, so NAV in GBP is now 107.2

Price today hovering around 97, therefore a 9.5% discount on todays price

[alan pt] 23/2/2022 16:28

If you divide the 31Dec NAV by the number of shares NOW in issue (following the raise) then you get (more or less) to that Morningstar figure. But of course the NAV is now higher (if only because of the extra capital from that raise), so it's effectively a false reading, I believe. It should sort itself out in time :-)

[shieldbug] 23/2/2022 15:58

Alan PT. It seems odd that the NAV give in RNS and reports appears to be ex-income NAV. Only the website shows cum-income NAV - with no explanation. It seems equally odd that this NAV which is significantly lower and is the one used by the likes of Morningstar and thus by AJ Bell and others. For anyone glancing at (screening) the stock it looks as though it is still trading at a premium.

[alan pt] 23/2/2022 11:50

shieldbug I always use the NAV from the last valuation personally:

On my spreadsheet, at todays exchange rate, I get just over 7% discount

[alan pt] 23/2/2022 11:37

ASLI borrowings in euros, so a significant interest rate advantage vs UK REITs but the flip side of that is definitely currency risk

Even a decent yield (for the sector), I make it 4.7% at todays rates. So I agree, looks good for medium term. Only slight issue - hard to see what changes the direction in the near term?

[riverman77] 23/2/2022 11:08

Looks good value here on a 6-7% discount - a 12% nav return (in eur) over the year is pretty solid. Share price probably hit by a combination of rising interest rates, sterling strength versus euro, and the capital raise, but I think this should do well over the medium term.

[catch007] 23/2/2022 10:50

SP fall is overdone imho good activity in the portfolio, decent rent collection now and quality tenants.

[catch007] 23/2/2022 10:50

SP fall is overdone imho good activity in the portfolio, decent rent collection now and quality tenants.

[shieldbug] 22/2/2022 15:17

Speed - Do they have any funds to act on that pipline? The recent raise may have left them a bit short?

[alan pt] 22/2/2022 09:46

Well, I certainly picked the wrong point to buy back in...

The results aren't bad, perhaps just a little disappointing compared with some of the recent UK industrials numbers, but sentiment seems to be against it

[speedsgh] 22/2/2022 07:51

From the same rns...

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.

[speedsgh] 22/2/2022 07:46

Unaudited Net Asset Value as at 31 December 2021 -

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."

[speedsgh] 18/2/2022 14:29

Fourth Interim Distribution -

abrdn European Logistics Income plc (LSE: ASLI), the Company which invests in high quality European logistics properties, announces its fourth interim distribution for the year ended 31 December 2021.

The Directors have today declared a fourth interim distribution of 1.41 euro cents (equivalent to 1.21 pence) per Ordinary share, in respect of the year ended 31 December 2021. This fourth interim dividend will be paid in sterling on 25 March 2022 to Ordinary shareholders on the register on 4 March 2022 (ex-dividend date of 3 March 2022)...

... Of this fourth interim distribution declared of 1.21 pence per Ordinary share, 1.01 pence (equivalent to 1.18 euro cents) is declared as dividend income with 0.20 pence (equivalent to 0.23 euro cents) treated as qualifying interest income...

[alan pt] 16/2/2022 13:39

catch007 Unfortunately it's Tritax management calling the shots now and applying the same primary focus of growing assets under management

Still, I do think it's more healthy longer term to be around par than at a silly premium

[catch007] 16/2/2022 12:17

Added a few at 106.12p yesterday to my ISA. I believe the relatively poor take up of the latest fund raise will see some stability now and allow the share price to recover.

Ian Cowie ststes on II today: I agree with his sentiments

However, I know that I am not the only shareholder to be less than impressed by ASLI’s tendency to issue new stock that knocks the market price, as it did when the latter peaked at 130p last summer. No wonder City cynics claim that ASLI is better at gathering assets than growing shareholders’ capital.

[alan pt] 08/2/2022 13:51

Well, guess I should have waited...

Just had a few more at 107, which is within a whisker of par at end-Sept valuation, might see a bit of bounce when the end-Dec valuation is released

[alan pt] 02/2/2022 09:59

Maybe the time of free money is over and they will need to focus more on managing and turning over their existing stock?

Got to a viable size, just about, so they don't have the sub-scale problem of some of the UK REITs, more focus on management rather than buying might not be a bad thing

Picked up a top-up at 108.82 this morning, which was a nice bonus

[cwa1] 02/2/2022 07:53

Disappointing relative to what they expected but possibly better than I had thought given markets and the ruling share price of ASLI.

Could really do with some good news updates and a bit of decent publicity if they want to go back to the trough any time soon...

[speedsgh] 02/2/2022 07:42

ASLI have managed to raise EUR45.6m (£38m) in their latest placing. They did not have an explicit target but the placing announcement stated that they had a near-term funding requirement of approx. EUR142m so suspect that they may be disappointed with the amount raised.

Result of Placing and Retail Offer -

[alan pt] 12/1/2022 13:01

Interesting to see they are now spending a lot on development and looking at further sites with development potential

Seems reasonable - adds a bit of risk, but avoids overpaying for completed assets in a competitive market and should help support the dividend

[speedsgh] 12/1/2022 12:27

EXPECTED TIMETABLE

Placing Opens - 12 January 2022
Latest time and date for applications under the Placing - 2.00 p.m. on 1 February 2022
Result of Placing Announced - 7.00 a.m. on 2 February 2022
Admission and commencement of dealings in New Ordinary Shares - 8.00 a.m. on 4 February 2022

[speedsgh] 12/1/2022 12:24

ASLI are looking to raise more funds at 110p, just 4 months after they raised £125m in an oversubscribed placing at 109p (initial target was £75m). The Company has an expected near-term funding requirement of approx €142m (c.£118m). The placing is also being made available to private investors via PrimaryBid. Investors in the placing will be entitled to receive the Q4 dividend to be declared in Feb 2022 (payable March).

They also advise an estimated NAV increase of 1.5% for 3 months to 31/12/21.

Proposed Placing under the Company's Share Issuance Programme -

PrimaryBid Offer -

The Company currently has an expected near-term funding requirement of approximately €142 million, comprising the following:

· Drawings of €15.5 million under the Company's revolving credit facility, following the acquisition of Phases I-III of the Madrid portfolio

· Construction of Phase IV of the Madrid portfolio, comprising the last-mile warehouse and delivery van parking station let to Amazon for a period of 25 years, is due to complete in Q2 2022. Additionally in Q2, the Company will fund a 2,900 sq. m. extension to the Waddinxveen asset in the Netherlands on a pre-let basis to the current tenant, Combilo, at an attractive yield-on-cost. The aggregate funding requirement for these two assets is approximately €78 million

· The Investment Manager is at an advanced stage of due diligence on four assets, a mix of urban logistics and mid box distribution properties, currently under exclusivity. 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. The aggregate funding requirement for these four assets is approximately €49 million⁵

The Investment Manager is concurrently performing due diligence on a further, early-stage pipeline of acquisition opportunities predominantly sourced by abrdn's local transaction teams.

[petewy] 05/1/2022 16:48

Now I can sleep