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abrdn European Logistics mulls sale as shares trade at "discount"

27th Nov 2023 11:09

(Alliance News) - abrdn European Logistics Income PLC on Monday announced a strategic review which could result in its sale.

The investor in urban logistics real estate assets, said [the company] is of a size "which might deter some potential investors due to lower share liquidity and a higher relative cost base".

abrdn European said its portfolio was "highly modern, with 16 of the 26 assets constructed since 2018".

It added: "The company's shares have continued to trade at a significant and persistent discount to net asset value per share, which the board and investment manager believe does not reflect the long-term prospects of the portfolio."

Chair Tony Roper said: "Whilst we retain a strong conviction in the strategy, today's proactive decision to launch a strategic review largely reflects the unprecedented macro backdrop that real estate companies are operating against and provides greater optionality to deliver shareholder value."

Meanwhile, abrdn European reported its NAV for September 30, which it said fell by 7.8% to 99.8 euro cents from 108.3c as at June 30. EPRA net tangible assets declined to 104.3c from 113.1c.

abrdn European's valuation, undertaken by estate agent company Savills UK Ltd, decreased by EUR33.7 million, or 4.9% in the quarter. It added its Spanish assets had the largest decline of 11%, followed by France with 2.4%, the Netherlands with 2.0% and Poland with a 1.0% fall. The German portfolio valuation was broadly flat, the firm said.

The company declared a dividend of 1.41c per share, unchanged from a year prior.

Looking ahead, lead fund Manager Troels Andersen said: "The key long-term structural drivers underpinning the logistics sector's rental and capital growth prospects remain in place, however. E-commerce, near-shoring and supply chain modernisation are all set to drive demand for future-fit logistics properties in good locations, which is where our portfolio is 100% aligned."

abrdn European shares rose 6.3% to 60.37 pence each on Monday morning in London.

By Tom Budszus, Alliance News slot editor

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Copyright 2023 Alliance News Ltd. All Rights Reserved.

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