Aberdeen Standard European Logistics Income PLC, the Continental European investor in modern warehouses, which is managed by Aberdeen Standard Investments, today announces its final results for the 12 months to 31 December 2020.

[emaillocker id=”71749″]

Strong financial performance, with valuation increase underpinning double-digit NAV total return:

  • Net asset value increased by 8.1% to €1.20 (31 December 2019: €1.11)
  • Share price total return +26.6% (31 December 2019: -7%)
  • NAV total return of +13.6% (31 December 2019: 8.6%), primarily driven by favourable yield movement
  • IFRS earnings per share 14.8 euro cents (31 December 2019: 9.6 euro cents)
  • €65 million of cash and undrawn facilities, following a €40 million credit facility signed with Investec Bank, providing additional financial and operational flexibility
  • Loan to Value of 31.4% (all-in cost of debt 1.36%, average term to maturity 7.3 years)
  • Dividends of 4.96 pence per share paid in respect of the year, in line with the target for the financial year

Asset and counterparty quality delivered resilient income, with acquisitions supporting growth ambitions:

  • Strong rent collection with 97% of rent due for the year collected
  • Portfolio valued at €425 million, reflecting yield compression and new acquisitions; positive progression in valuations expected into 2021
  • Two acquisitions, totalling €78 million, taking the total portfolio to 15 modern properties, diversified by geography and tenant:
    • A 43,300 sqm warehouse in Den Hoorn, the Netherlands, purchased for €49.9 million, reflecting a net initial yield of 4.5%
    • Post year end, the acquisition of a 34,000 sqm warehouse in Lodz, Poland, for €28 million, reflecting a net initial yield of 5.6%
  • Weighted average unexpired lease term (“WAULT”) increased to 11 years

Modern, fit for purpose portfolio underpinning continued ESG outperformance:

  • GRESB score of 79/100, which compares favourably with the 68/100 average score for the Western Europe Industrial Distribution Warehouse peer group
  • Four out of a maximum of five Green Stars awarded

Tony Roper, Chairman, Aberdeen Standard European Income Logistics, commented:

“As Europe’s economy starts to open up once again and the mass vaccination programmes allow for a return to some sort of ‘normal’, the fundamentals underpinning investment in logistics real estate should continue to drive further rental and capital growth which equally should translate into attractive returns for shareholders. Progression in portfolio valuations is expected through 2021 with Q1 looking positive.

“The Continental European logistics market offers a compelling investment case, with e-commerce penetration rates lagging behind other comparable regions. With the pandemic having accelerated the shift to online, businesses have had to urgently future proof their supply chains to meet resulting demand.  As a result, we retain a strong conviction in our strategy, which predates many of these market trends and which to date has delivered a high quality portfolio with strong sustainability credentials, the performance of which has allowed us to reward shareholders with an attractive and, more importantly, stable dividend. Looking forward, a clear priority is to grow the Company, in a sensible and measured way, in order to enjoy the benefits that come with increased scale and liquidity.”

Evert Castelein, Lead Fund Manager, Aberdeen Standard European Income Logistics, added:

“As the logistics sector continues to mature, we expect to see increased polarisation in performance across the different asset types. We see mid box properties, in established distribution hubs with good connectivity, as especially attractive, offering strong income and capital appreciation opportunities, whilst also benefitting from their suitability for a range of uses, further underpinning liquidity. With access to a widespread network of local teams giving us a competitive advantage across both our investment and asset management activity, and a clear path to further improving the portfolio’s already strong ESG credentials, we are well placed to continue delivering attractive returns for the Company’s shareholders.”

[/emaillocker]