Aberdeen Standard European Logistics Income (ASLI) has posted a 6.1% jump in net asset value (NAV) for the first quarter of 2020.
The company, which owns a portfolio of 14 logistics assets across Europe, reported NAV per share of 99.92p (112.7c) at 31 March 2020, up from 94.21p (111.0c) on 31 December 2019.
The increase in sterling NAV is in part due to a more favourable exchange rate (£1:€1.13 vs £1:€1.18 in December) but the 1.5% increase in Euro currency reflects strong growth in the European logistics sector.
ASLI’s portfolio increased in value by 0.7% on a like-for-like basis to €404.9m. During the quarter it acquired a logistics warehouse in Den Hoorn, the Netherlands, for €49.9m, providing a net initial yield of 4.5%.
The group also declared a dividend for the first quarter of 1.41 euro cents (1.24p).
Rent collection
ASLI has now collected 75% of rent for the current quarter (ending June 2020) and expects this to rise to 82% shortly.
Of the remaining 18%, representing around €1m in monthly and quarterly rental payments, it has been agreed that €820,000 will be deferred, with €720,000 of this deferred rent due for payment by December 2020 and €100,000 of this due prior to June 2022.
The remaining €180,000 of unpaid rent relates to six tenants who have requested rent free periods. ASLI said that this rent will likely be forgiven for Q2, along with an additional €210,000 for the remainder of 2020 and €130,000 in respect of 2021/22, in exchange for lease extensions of up to five years.
The group said it expects to collect around 95% of Q2 rental income by December 2020, with an additional 2% payable in the period to June 2022 and the remaining 3% forgiven, in exchange for lease extensions.
ASLI’s manager Evert Castelein, said: “This valuation uplift reflects the fact that, notwithstanding the severe short-term negative impact suffered by a number of our tenants, the outlook for European logistics real estate remains compelling, perhaps even more so following the impact this crisis will likely have on consumer behaviour and supply chain logistics.
“As previously noted, while a number of our tenants are experiencing unprecedented levels of demand, a number of tenants have inevitably been negatively affected by the covid-19 pandemic. Lease extensions are being agreed where rental income has been forgiven and we are very pleased with how these discussions have progressed.”
ASLI : ASLI posts 6.1% jump in NAV