Aberdeen Standard Eur Lgstc Inc PLC Net Asset Value as at 30 September 2018 (1201I)

TIDMASLI

RNS Number : 1201I

Aberdeen Standard Eur Lgstc Inc PLC

21 November 2018

Aberdeen Standard European Logistics Income PLC

LEI: 213800I9IYIKKNRT3G50

Net Asset Value as at 30 September 2018

21 November 2018: Aberdeen Standard European Logistics Income PLC (LSE: ASLI) (the "Company") announces its unaudited quarterly Net Asset Value ("NAV") as at 30 September 2018.

Highlights

-- NAV per share of EUR1.09 as at 30 September 2018 (30 June 2018 - EUR1.11) (GBP - 97.3p, 30 June 2018 GBP - 98.3p)

   --     First interim dividend of 0.7p per Ordinary share paid to shareholders on 28 September 2018. 

-- Second interim dividend of 1.0p per Ordinary share declared on 21 November 2018 and payable to shareholders on 20 December 2018.

The Company expects to pay, in aggregate, dividends totalling no less than 3.0p per Ordinary Share in respect of the period from initial admission to 31 December 2018.

   --     During and post the period end, seven assets have been acquired or committed to: 

o An income producing freehold logistics warehouse in Ede in the Netherlands for a net value of EUR26.5 million. 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 net initial yield on the property is 5.9%.

o A newly built partly cooled logistic warehouse near Avignon, for a net value of EUR44.5 million. This income producing asset has been fully let to Biocoop, a French supermarket operator, with a 12 year lease. Net initial yield 5.0% reflecting agreed passing rent which will be subject to annual indexation.

o A new development in a modern logistics hub located in Erlensee, Frankfurt for an expected net value of EUR33.4 million from regional developer Ferdinand Fäth. Net initial yield is 4.8% reflecting forecast passing rent and annual indexation. The target date for completion is end November 2018.

o Agreement signed for a new development in Oss, the Netherlands, for a purchase price of EUR15.7 million, with developer Heembouw Breda B.V. reflecting a net initial yield of 5.3%. The Development is structured as a forward funding deal with a 5.5% coupon rate and an expected delivery mid-2019. Orangeworks Group B.V. has agreed a 15 year lease with full CPI indexation.

o Development in Leon, Northern Spain, with a net value of EUR15.3 million signed up for completion by March 2019. Net initial yield is 6.0% reflecting agreed passing rent which will be subject to annual indexation.

o Contracts exchanged to acquire a newly built warehouse in Zeewolde, the Netherlands, for a purchase price of EUR29.25 million reflecting a net initial yield of 5.0%. Work commenced with developer Borghese on this high quality asset pre-let to VSH Fittings B.V. on a 15 year lease term. The development is structured as a forward funding deal with a 2.55% coupon rate and an expected delivery by mid-2019.

o Sale and leaseback agreement signed to acquire an existing cross-dock warehouse in Waddinxveen, the Netherlands, for EUR33.0 million with a net initial yield of 5.0%. The existing freehold property is leased to Combilo International B.V. on a 15 year triple net lease with capped CPI indexation of 2.5% per annum.

-- Continued strong demand for the Company's shares. As at 20 November 2018 the share price was GBP 103.5p representing a premium to the 30 September 2018 NAV of EUR1.09 (97.3p) of 6.4%.

Investment Manager Commentary

With the recently announced acquisitions in the Netherlands we have now invested in or committed to invest the net equity proceeds raised at the launch of the Company in December 2017. This deployment of capital will see a quality portfolio consisting of 8 properties spread over 4 countries, of which 5 are brand-new high quality assets. We are confident that we can generate a solid and sustainable income stream from our portfolio. We are seeing very strong demand in the market for modern, best-in-class logistics facilities.

We continue to see a strong pipeline of investment opportunities with assets in advanced stages of due diligence meaning that we will very soon deploy significant gearing as these come on-stream. Further announcements are expected shortly. Despite the continued tightening of logistics yields in many countries and increasing investor demand in the European logistics space, we continue to build a really well-diversified portfolio of very high quality European logistics properties.

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 July 2018 to 30 September 2018.

 
 Aberdeen Standard European       Per Share (EURcents)    Attributable           Comment 
  Logistics Income                                        Assets (EURm) 
 Net assets as at 30 June 
  2018                                   111.1               208.2 
                                 ---------------------  ---------------  ----------------------- 
                                                                          Increase in valuation 
                                                                           of Florsheim asset 
 Unrealised decrease in                                                    and purchase costs 
  valuation of property                                                    of Ede acquired in 
  portfolio                              (0.1)               (0.1)         the period. 
                                 ---------------------  ---------------  ----------------------- 
 Capital expenditure during 
  the period                             (0.9)               (1.7) 
                                 ---------------------  ---------------  ----------------------- 
                                                                          Reflects income from 
                                                                           Florsheim and Ede 
                                                                           offset by negative 
 Income earned for the                                                     interest rate on Euro 
  period                                  0.4                 0.7          cash holdings. 
                                 ---------------------  ---------------  ----------------------- 
 Expenses for the period                 (0.4)               (0.6) 
                                 ---------------------  ---------------  ----------------------- 
                                                                          First interim dividend 
 Dividend paid on 28 September                                             of 0.7p per Ordinary 
  2018                                   (0.8)               (1.5)         Share. 
                                 ---------------------  ---------------  ----------------------- 
 Foreign currency gain 
  / (loss)                               (0.0)               (0.1) 
                                 ---------------------  ---------------  ----------------------- 
 Net assets as at 30 September 
  2018                                   109.3               204.9 
                                 ---------------------  ---------------  ----------------------- 
 

The EPRA NAV per share is EUR1.09.

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

 
                                         EURm   % of net assets 
 Total Property Portfolio             46.8           22.8% 
                                   ----------  ---------------- 
 Adjustment for lease incentives      (0.1)          0.0% 
                                   ----------  ---------------- 
 Fair value of Property 
  Portfolio                           46.7           22.8% 
                                   ----------  ---------------- 
 Cash                                 153.3          74.8% 
                                   ----------  ---------------- 
 Other Assets                          5.9           2.9% 
                                   ----------  ---------------- 
 Total Assets                         205.9         100.5% 
                                   ----------  ---------------- 
 Current liabilities                  (1.0)          -0.5% 
                                   ----------  ---------------- 
 Total Net Assets                     204.9          100% 
                                   ----------  ---------------- 
 

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 September 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: http://www.eurologisticsincome.co.uk/eurologisticsincome

For further information please contact:

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

The above information is unaudited.

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(END) Dow Jones Newswires

November 21, 2018 10:55 ET (15:55 GMT)