abrdn European Logistics Income (ASLI) H2 2024 earnings summary

Executive summary

• Entered managed wind-down phase after shareholder approval in July 2024, with the objective to realise all assets in an orderly manner and return capital to shareholders.

• Portfolio sales in France, the Netherlands, and Spain validated asset valuations and enabled significant debt repayments.

• Vacancy rate reduced from 11% to below 4% by March 2025, enhancing income generation and marketability.

• B Share scheme implemented to return £16.5 million to shareholders, with further distributions planned as assets are sold.

Financial highlights

• Net asset value (NAV) per share at 31 December 2024 was 90.8 euro cents, down from 93.4 euro cents in 2023.

• NAV total return for 2024 was 0.9% in euro terms (2023: -17.1%).

• Profit for the year was €3.0 million, compared to a loss of €81.8 million in 2023.

• Dividends paid per share totaled 3.36 euro cents (2.85p), down from 5.64 euro cents (4.88p) in 2023.

• Portfolio valuation at year-end was €593.99 million, with gearing at 37.0%.

• Ongoing charges ratio reduced to 1.5% (2023: 1.6%).

Outlook and guidance

• Majority of assets expected to be sold or under offer by late summer 2025, with proceeds returned to shareholders after debt repayment.

• Demand for high-quality logistics assets remains strong due to low vacancy rates, supply constraints, and robust tenant diversification.

• Rental growth in logistics anticipated to outpace inflation, supported by limited new development and high construction costs.

• Some market volatility expected due to global tariff impositions and geopolitical risks.