23rd Apr 2019 09:48
LONDON (Alliance News) - Aberdeen Standard European Logistics Income PLC on Tuesday announced the upcoming departure of its chair and posted a negative net asset value total return for its first year of trading due to transaction costs from property acquisitions.
For the period from its initial public offering on December 15, 2017 to the end of 2018 the company, which invests in logistics warehouses and assets, posted a net asset value total return of negative 3.0% .
"This return is mainly attributable to the impact of transaction costs on acquiring properties, reflecting the fact that the company was in its initial investment period in 2018," said Chair Pascal Duval.
As at December 31, the company's net asset value per share stood at EUR1.08. No comparative figure was provided. Its closing price per share on that date was 102.25 pence, up 2.3% from a 100p per share launch price.
The stock was down 0.9% on the day Tuesday at 93.20p.
Aberdeen Standard European Logistics Income raised GBP187.5 million from its IPO in December 2017, which it has invested into "big box" logistics assets.
The company paid a 3.0p per share dividend in the year, equalling its target. The dividend was comprised of interim payments of 0.7p, 1.0p, and 1.3p.
In preparation for Brexit, the company has reorganised its European subsidiaries and created a new entity based in Dublin, Aberdeen Standard Investments Ireland Ltd, for its investment management business in Europe.
In terms of the harms caused to the company by Brexit, the "most material" will be foreign exchange as company's income is largely in euros and its dividends are paid in sterling. However, Brexit is not expected to cause significant problems.
"For 2019, the main aim will be to manage the portfolio in the best possible way together with the local asset managers and generate the maximum amount of income from the assets that we hold in the portfolio while ensuring its prime quality. The European logistics market is sizeable and growing, with the sector benefiting from rapid take-up of facilities and long inflation-linked leases to quality tenants. The board believes that Europe maintains a clear advantage in terms of yields and low financing costs and that strong demand when combined with the lack of suitable product reinforces the scope for further capital and income growth in the years ahead," said Duval.
Duval also announced that, having moved to a full time role elsewhere, he will not seek re-election as chair at Aberdeen Standard European Logistics Income's upcoming annual general meeting. Tony Roper, currently a director at the company, will be made chair once Duval leaves, and there are currently no plans to appoint new board members.
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