LONDON, UK: abrdn European Logistics Income plc, a UK-listed company that invests in high-quality logistics real estate in Continental Europe, has announced that it is undertaking a strategic review of the options available to the Company, including a potential sale of the Company or its portfolio.
The Company was launched in December 2017 with the aim of providing an attractive level of income and capital growth from investing in mid-box and urban logistics properties in Europe, benefiting from the forecast growth of e-commerce penetration in the region.
abrdn European Logistics Income plc has built a portfolio of 26 operational assets, diversified across the Netherlands, France, Germany, Spain and Poland, valued at €659.75 million. The portfolio has a long weighted average lease term of 8.6 years to expiry, with two thirds of the rental income subject to full uncapped indexation.
The Company has also achieved a five-star rating in the 2023 GRESB awards, reflecting its high environmental, social and governance standards.
However, the Company faces a number of challenges, such as a material dividend cover shortfall, a small market capitalisation of £234 million, and a persistent share price discount to net asset value per share. The Company is also required to propose a continuation vote at its next Annual General Meeting in June 2024, as per its constitutional terms.
The Board believes that the current point in time represents an appropriate juncture to consider the best way forward for the Company, having regard for the best interests of shareholders as a whole. The Board will consider all options available to the Company that offer maximum value for its shareholders, including, but not limited to, a consolidation, combination, merger or comparable corporate action, a sale of the entire issued share capital of the Company, or a sale of the Company’s portfolio and returning monies to shareholders. A continuation of the Company’s current investment strategy with a rebased target dividend level is also a potential outcome of the strategic review.
Tony Roper, Chairman of abrdn European Logistics Income plc, commented: “The Board’s priority at all times is to act in the best interests of shareholders. Whilst we retain a strong conviction in the strategy, today’s proactive decision to launch a strategic review reflects our recognition of the challenges faced by the Company and our desire to explore all avenues to maximise shareholder value.”
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