Aberdeen Standard European Logistics Income (ASLI) has reported an uplift in net asset value (NAV) in the quarter to 30 June 2021.
The group posted a 1.6% increase in NAV to 123.6 euro cents (2.4% in pound sterling to 106.1p), which reflected a NAV total return of 14.7% in the year to 30 June 2021.
The uplift in NAV was down to a 1.9% increase in the value of its portfolio in the quarter to €473.9m. This was despite a fall in the value of its Meung-sur-Loire asset in France, which has seen the tenant (Office Depot France) go into administration and the buyer of the company expected to vacate the property.
The administrator has continued to pay rent, with both the second quarter and third quarter 2021 rent (due in advance) paid in full. In total, one month’s rent plus a small element of deferred rent, amounting in aggregate to €258,000, remains outstanding and is not expected to be collected.
ASLI collected 100% of the rent that was due in the quarter, and has declared an interim dividend of 1.41 euro cents (1.21p).
Portfolio update
During the quarter, ASLI acquired an urban logistics assets near Barcelona for €18.8m, bringing its portfolio up to 16 assets in five countries with a gross value of more than €500m.
The group said it would look to make further acquisitions this year, and expects to shortly sign a revised revolving credit facility (RCF) agreement with Investec Bank, increasing the current facility’s capacity from €40m to €70m. It plans to use the RCF to purchase assets before raising equity (through a tap issue or small issue) to pay down the RCF and keep its loan to value (LTV) at or below its long-term target of 35% (LTV was 32% following the Barcelona acquisition).
Regarding the Meung-sur-Loire asset, the company said it was confident of securing a new tenant for the warehouse, which it said was ideally located for national distribution just south of Orleans and close to main motorways towards Bordeaux/ Northern Spain and towards Marseille/ Lyon/ Toulouse.
Sustainability initiatives
The group said it was focused on the sustainability of the portfolio, which is reflected in its four out of five stars GRESB rating. The company will shortly be piloting the use of smart meters to collect tenant utility usage data, initially at its Avignon and Waddinxveen properties, with a view to identifying new initiatives to further enhance the sustainability rating of the assets.
It has also agreed 20-year rooftop-solar leases at its Ede and Den Hoorn assets in the Netherlands. The Ede lease commenced on 1 June 2021 and the Den Hoorn lease will commence on 1 September 2021. The leases will further enhance the portfolio’s sustainability credentials and have provided a capital uplift of around €1m.
Nine out of 16 assets in the portfolio now have solar panels on the roof and the group is exploring the possibility of adding to or enhancing rooftop solar panels to selected assets.
ALSI : ASLI posts positive NAV update