Aberdeen Standard European Logistics Income – Poised to expand?
Aberdeen Standard European Logistics Income (ASLI) has built a portfolio of 10 assets, deployed all the money it raised at IPO and has declared dividends totalling 3p per share in respect of its first accounting period (in-line with its target). Borrowing facilities are being arranged that will fund the purchase of one more asset and meet stage payments for construction projects that it has financed.
The growth of ecommerce is transforming the logistics market in Europe. Investors are drawn to the attractive prospective returns available from this sector and this has pushed up prices, depressing yields. In response, the ASLI board and manager have taken the commendable step of cutting the management fee, but also trimmed the target dividend from 5.5% of the IPO price to 5.0% for ASLI’s second accounting year.
The manager and board are confident that the European logistics sector will continue to offer many attractive investment opportunities, and their intention is to seek to expand the company in due course.
Big box logistics and last mile urban warehouses in Europe
ASLI invests in a diversified portfolio of ‘big box’ logistics and ‘last mile’ urban warehouse assets in Europe (this includes both the UK and the Nordic countries but, in practice, the UK is unlikely to feature in the portfolio) with the aim of providing its shareholders with a regular and attractive level of income return. It is targeting a 3% yield on the IPO price in its first accounting period and a 5% yield in its second accounting year, both in euro terms, together with the potential for long-term income and capital growth (target total return of 7.5% a year in euros).
ASLI : Aberdeen Standard European Logistics Income – Poised to expand?