abrdn European Logistics Income saw the net asset value (NAV) of its portfolio of European logistics assets decrease from €758.7m to €722.7m in Q1 2023 – a 4.7% like-for-like valuation decline.
The company said the fall was caused by market wide outward yield movements related to higher interest rates. Its NAV per ordinary share decreased by 6.5% and its EPRA net tangible assets decreased by 7.3%.
During the quarter, the company agreed a number of new leasing deals with occupiers and post quarter end – on 5 May 2023 – it announced the completion of the sale of its 32,645 sq m warehouse, in Leon, Northern Spain, to SCPI Iroko Zen, for €18.5m – the company acquired the asset in 2018 for €15.3m.
Troels Andersen, lead fund manager, abrdn, said: “The portfolio has again demonstrated its resilience despite wider market uncertainty, reflecting the strategic location of our assets, the strength of the occupational market, low vacancy rates, and rents which are underpinned by annual indexation.
“The recent asset management successes are a demonstration of the competitive advantages of abrdn’s asset management and transaction teams across our European offices as well as the ongoing liquidity for good quality logistics.”
