abrdn European Logistics Income (ASLI) H1 2024 earnings summary

Executive summary

• Shareholders approved a managed wind-down, shifting the investment objective to orderly asset realisation and capital return, following persistent NAV discount and uncovered dividend issues.

• The portfolio consists of 25 modern logistics warehouses across five European countries, with robust tenant diversification and a focus on urban logistics.

• Initial asset sales are underway, with strong buyer interest and a first capital return to shareholders expected by early 2025.

• The Board cancelled the share premium account, creating a special distributable reserve of £269.5m for capital distributions.

Financial highlights

• Net asset value (NAV) per share fell to 89.3¢ at 30 June 2024 from 93.4¢ at year-end 2023; NAV total return was -4.3% in EUR, or -0.8% excluding wind-down provisions.

• IFRS net asset value was €368.2m, down from €384.9m at 31 December 2023.

• Share price total return for H1 2024 was -0.7% in GBP; discount to NAV per share narrowed to 20.6%.

• Ordinary dividend per share for H1 2024 was 1.41¢, with distributions expected to decrease as assets are sold.

• IFRS earnings per share for H1 2024 was -4.1¢, compared to -19.8¢ for FY 2023.

Outlook and guidance

• The logistics sector outlook has improved, with lower interest rates, strong market fundamentals, and increased investor interest expected to support asset values.

• The Board anticipates sustained occupier demand, especially from e-commerce and near-shoring trends, and expects to return capital to shareholders as asset sales progress.