Abrdn European Logistics portfolio hits €661m

Abrdn European Logistics Income plc, a fund that invests in modern continental European warehouses, said on Friday that 2021 was a stand-out year for the investment trust and for the wider European logistics real estate asset class.

The investment trust said its portfolio was valued at €661 million on December 31, up from €425 million, consisting of 23 assets located across five European countries.

Announcing its results for the year to December 31, 2021, the fund said net asset value per ordinary share increased by 7.5% to €1.29, and dividends of 5.64 euro cents per share were paid.

The fund’s growth strategy was supported by two oversubscribed equity issues completed during the year, including a £125 million equity issuance in September 2021, with a further £38 million raised post-period end.

The investment trust’s chairman Tony Roper said: “2021 was a stand-out year for the company and for the wider European logistics real estate asset class.

“While the onset of the pandemic in early 2020 created significant uncertainty across all sectors, this ultimately led to an acceleration of the key structural drivers underpinning the logistics sector.

“Having been a first mover in the UK listed arena, making our initial investments in early 2018, the company continues to benefit from sector tailwinds, delivering a double-digit net asset value total return for the second year running.”

The investment trust’s lead fund manager Evert Castelein said: “With more than half the portfolio by value now weighted to high growth urban logistics assets, following the milestone Madrid acquisition which deployed the proceeds of September’s capital raise within three months, the company is well positioned to deliver further shareholder value.

“The attractive indexation characteristics of the portfolio leases and competitive advantage afforded by abrdn’s extensive network of local real estate professionals across Europe further underpin the compelling investment case.

“2021 was a record year for European logistics take up, with record low vacancy seen across a number of markets.

“We expect 2022 to continue in this vein, supporting favourable rental and capital growth.”