Replacement NAV 30 Jun 20 &Q3 Rental Income Update
AMENDMENT
The following amendment has been made to the "NAV as at 30 June 2020 & Q3 Rental Income Update" announcement released on 25 August 2020 at 15.03pm under RNS Number 1261X.
The EPRA NAV per share has changed from the published 118.6c to 116.3c . All other information remains unchanged. Please see the updated announcement below.
Aberdeen Standard European Logistics Income PLC
LEI: 213800I9IYIKKNRT3G50
Investor demand for logistics real estate in Europe expected to remain strong
Unaudited Net Asset Value as at 30 June 2020 and Q3 rental income update
30 September 2020: Aberdeen Standard European Logistics Income PLC (LSE: ASLI) (the "Company" or "ASLI") announces its unaudited quarterly Net Asset Value ("NAV") as at 30 June 2020 and provides an update on Q3 2020 rental income collection.
Highlights
· NAV per Ordinary Share of 112.8c (GBp - 103.0p) as at 30 June 2020 (31 March 2020: 112.7c (GBp - 99.92p)). Exchange rate £1 : €1.10 (31 March 2020: £1 : €1.13).
· Resilient portfolio of assets with latest portfolio capital valuation unchanged from 31 March 2020. The Company's high-quality, well located and diversified European logistics portfolio of 14 assets remained valued at €404.9 million as at 30 June 2020.
· Rent collection remains strong with Q3 rental income expected to be in line with our previous projections, allowing the Board to reaffirm its intention to continue to pay distributions in line with its stated policy.
· A first interim distribution of 1.24 pence per Ordinary share in respect of the year ending 31 December 2020 was paid on 26 June 2020.
· A second interim distribution of 1.24 pence per Ordinary share in respect of the year ending 31 December 2020 declared on 25 August 2020.
At the valuation date of 30 June 2020 the independent valuer's report from CBRE had removed the "material uncertainty" relating to property valuations that was in place as at 31 March 2020.
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 April 2020 to 30 June 2020. 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 31 March 2020 |
112.7 |
264.3 |
|
|
Unrealised change in valuation of property portfolio |
- |
- |
Portfolio of 14 assets. Capital values remained stable from the prior quarter. Acquisition costs incurred in the period relate predominantly to the final adjustment of Warsaw acquisition price. |
|
Acquisition costs incurred during the period |
(0.3) |
(0.7) |
|
|
Income earned for the period |
2.1 |
5.1 |
Income from the property portfolio and associated running costs. |
|
Expenses for the period |
(0.8) |
(1.9) |
|
|
Deferred tax liability |
0.3 |
0.7 |
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 dividend hedge entered into in Q1 2020 to fix the EUR:GBP conversion of the 2020 dividend. |
|
Dividend paid 26 June 2020 |
(1.4) |
(3.3) |
First interim distribution of 1.24 pence (1.41 euro cents) per Ordinary Share. |
|
Foreign currency loss |
(0.1) |
(0.2) |
|
|
Share issue |
(0.0) |
5.7 |
Issue of 5,000,000 new Ordinary shares on 23 June 2020. |
|
Other movements in reserves |
0.3 |
0.7 |
Movement in lease incentives in the quarter. |
|
Net assets as at 30 June 2020 |
112.8 |
270.3 |
|
The EPRA NAV per share is 116.3 Euro cents, which excludes deferred tax liability and fair value of the FX derivative.
Net Asset Value analysis as at 30 June2020 (unaudited)
|
|
€m |
% of net assets |
|
Property Portfolio |
404.9 |
149.8% |
|
Adjustment for lease incentives |
(4.7) |
(1.7%) |
|
Fair value of property portfolio |
400.2 |
148.1% |
|
Cash |
18.7 |
6.9% |
|
Other Assets |
12.7 |
4.7% |
|
Total Assets |
431.6 |
159.7% |
|
Bank Loans |
(143.4) |
(53.1%) |
|
Other Liabilities |
(10.0) |
(3.7%) |
|
Deferred Tax Liability |
(7.9) |
(2.9%) |
|
Total Net Assets |
270.3 |
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 2020 is based on 239 ,500,001 shares of 1 pence each, being the total number of Ordinary Shares in issue at that time.
Rental Collection Update
No new requests for support have been received from tenants and rent collection remains strong.
Monthly and quarterly advance payments received in respect of Q3 2020 rental income represent well over 90% of rental income due for the quarter and this is expected to rise to over 95% after accounting for previously notified rent free periods.
The Company successfully concluded negotiations with certain tenants negatively impacted by the COVID-19 pandemic and previously confirmed that 85% of Q2 rental income due was collected, slightly in excess of the forecast collection percentage of 82%. As previously disclosed, for the remaining outstanding rental income, the Investment Manager agreed short-term rent deferrals and a small number of rent free periods, in exchange for material lease extensions.
The Board, through the Investment Manager, continues to closely monitor the performance of the Company's tenants as they recover from enforced lockdowns and lighter trading. In light of the Q3 rental collection outcome and the previously agreed tenant positions, it remains the Board's intention to pay quarterly distributions in line with the Company's dividend policy.
Dividends
The Directors have today declared a second interim distribution of 1.24 pence (equivalent to 1.41 euro cents) per Ordinary Share, in respect of the year ending 31 December 2020. This second interim distribution will be paid in sterling on 25 September 2020 to Ordinary Shareholders on the register on 4 September 2020 (ex-dividend date of 3 September 2020).
Evert Castelein, Aberdeen Standard Investments, commented:
"Having witnessed uncertain and difficult times of late, it is gratifying to see our latest portfolio valuation demonstrate stable values for the June 2020 quarter end which is a reflection of the quality and locations of the asset base that we have built up. The COVID pandemic showed the importance of the real estate logistics sector across Europe with increasing online retail sales and an obvious focus on supply chains and their resilience.
With no new requests from tenants for support we have seen strong levels of rent collection, but nonetheless we continue to monitor the situation closely for any possible impacts on our tenant base. We remain, through our local network, in contact with our tenants and available to support them where and when required.
There are attractive opportunities across Europe to invest in high-quality, modern and well-located assets. We believe that the outlook for European logistics real estate remains compelling, perhaps even more so now given the impact that the COVID-19 crisis is likely to have on consumer behaviour and supply chain logistics in the future.
As the European logistics market evolves, our local managers expect to see increased levels of interesting investment opportunities as companies seek to bring certain operations back to their home territories. Our local transaction managers have an increased focus on urban logistics warehouses as the importance of e-commerce accelerates."
Tony Roper, Chairman of the Company, commented:
"The latest Q3 rent collection figures give the Board confidence and underpin the distribution policy of the Company. Today we have declared a second distribution for the year of 1.24 pence (1.41 euro cents) per share, in line with our previous guidance. Our Investment Manager continues to maintain regular dialogue with our tenants and it is pleasing to note that no further requests for support have been received.
European logistics have fared well over a period when many other real estate sectors have seen very challenging times. We remain confident that the quality of the portfolio that has been built should deliver solid returns for our shareholders.
There is no doubt that the increased focus on supply chain management and online sales and deliveries will underpin the increased interest that we are seeing in this sector of the real estate market.
The quality, location and age of our assets together with improving sustainable credentials should give confidence for the future as we look to build on the European logistics story."
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 a Regulatory Information Service this inside information is now considered to be in the public domain.
The Board is not aware of any other significant events or transactions which have occurred between 30 June 2020 and the date of publication of this statement which would have a material impact on the financial position of the Company.
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:
Luke Mason / Gary Jones
Aberdeen Asset Management PLC
0207 463 6000
The above information is unaudited.
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