Abrdn’s European Logistics Income fund has grown by more than 50% in the past year.
Last year’s €227.3m (£190.2m) deal for a portfolio of eight last-mile warehouses in Madrid has helped boost ASLI’s portfolio to €660.1m, up from €425m in December 2020. And that is likely to rise further, to €740m, once the fourth phase of the Madrid scheme is completed this year.
ASLI added that yield compression had also helped, with the portfolio rising by 9.1% on a like-for-like basis.
It is also the second consecutive year that ASLI has delivered double-digit total NAV return. However, the 12.4% return is far below last year’s 26.6%.
As well as the Madrid portfolio, ASLI bought a 340,000 sq ft warehouse in Lodz, Poland, for €28.1m, reflecting a net initial yield of 5.6%, and a €18.7m warehouse in Barcelona, Spain, reflecting a net reversionary yield of 4.7%.
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 growth strategy was supported by two oversubscribed equity issues completed during the year, including a £125m equity issuance in September 2021, with a further £38m raised post-period end.
He added: “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.”
Chair Tony Roper added that success on this side of the Channel had helped. “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.”
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