Aberdeen Standard European Logistics Income (ASLI) has reported solid half-year results with a net asset value (NAV) total return of 4.2%.
The company, which owns a portfolio of 14 logistics assets across Europe, posted an unaudited NAV per share of €1.13 (103.0p), compared with the NAV per share of €1.11 (94.21p) at the end of 2019.
The strong growth in NAV is no surprise given the strength of the logistics market during the COVID-19 pandemic. An uptick in online shopping across Europe has resulted in a surge in demand from companies wanting to let space, particularly in the e-commerce and parcel delivery sectors.
Average vacancy across Europe is at a very low rate of 4%, meaning rental growth is highly likely.
Rent collection
ASLI said it expects to collect 97% of rent for 2020. A breakdown of its current rent collection figures show that it has received 85% of rent for the second quarter, where it has agreed rent free periods for six tenants in small units in return for lease extensions and a couple of rent deferrals, which will be collected in Q4 2020 or Q1 2021.
In the third quarter, the company has received 96% of rent billed.
Dividends
The company has continued to pay its dividend in line with its target throughout the COVID-19 pandemic and in May 2020 declared its first interim dividend of 1.41 euro cents (1.24p). Last month it declared its second dividend at the same rate.
Finance
ASLI said it was in advanced discussions with Investec Bank over a €40m revolving credit facility (RCF). The RCF will give the company flexibility to acquire new assets prior to raising fresh equity, and will reduce the impact of cash drag on the company’s investment returns.
Its current loan to value (LTV) is 34% and the RCF will increase this on a temporary basis to 39% before it makes a down payment on the RCF with equity raised in the market.
Manager Evert Castelein said in due course a larger capital raise was on the horizon to help the group in its ambition to grow to €1bn.
ASLI : ASLI posts 4.2% NAV total return in half-year results