Aberdeen European Logistics Income (ASLI) has reported stellar results for 2020 in which it posted a 13.6% net asset value (NAV) total return.
The group, which owns a portfolio of 15 logistics assets in continental Europe, said NAV increased 8.1% to €1.20 (31 Dec 19: €1.11).
This was primarily driven by yield compression as investor demand for logistics assets intensified during the year as online shopping increased during the pandemic.
IFRS earnings per share was 14.8 euro cents (31 Dec 19: 9.6 euro cents), while it paid dividend for the year of 4.96 pence per share, in line with its target.
The group has €65m of cash and undrawn facilities, following a €40m credit facility signed with Investec Bank, giving it a loan to value (LTV) of 31.4%. All-in cost of debt is 1.36%, with an average term to maturity 7.3 years.
ASLI has collected 97% of rent due for the year, reflecting the strength of the sector.
On the ESG front, ASLI’s portfolio has a GRESB score of 79/100, which compares favourably with the 68/100 average score for the Western Europe Industrial Distribution Warehouse peer group.
Tony Roper, chairman, said: “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.”
ASLI : Aberdeen Standard European Logistics had stellar 2020