28th Sep 2022 12:38
(Alliance News) - abrdn European Logistics Income PLC on Wednesday reported a small increase in net asset value per share in its interim report.
The investment fund specialising in logistics real estate increased its NAV per share by 1.4% to 130.9 cents at June 30 compared to 129.1 cents at December 31 2021.
The portfolio was valued at EUR676,000, up 2.2% from EUR661,000 last year.
Dividend distributions of 2.82 cents per share were paid during the period, up 23% from 2.39 pence last year.
Looking forward, the fund's investment manager, Evert Castelein, said "despite economic turmoil in the short-term, we strongly believe logistics will continue to outperform with rents growing especially in urban locations where demand is highest." This was because costs for property developers have gone up, driving rents further upwards.
Chair Tony Roper said: "Given the evolving geopolitical and economic environment, it is understandable that market expectations are being downgraded and an element of de-risking in portfolios is taking place.
"However, the European logistics occupier market is characterised by record low vacancy and high activity, with strong leasing momentum reflecting that Europe is at a much earlier stage of its supply chain reconfiguration and e-commerce penetration is still some way behind the UK. The incontrovertible shift in the way consumers shop and the infrastructure required to service that demand close to population centres is a source of greater certainty."
Shares in abrdn European Logistics were trading 1.3% lower at 75.19 pence each on Wednesday morning.
By Chris Dorrell; [email protected]
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