Aberdeen Standard European Logistics Income PLC (ASLI) 2021年年度報告「LSE」.pdf

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1、eurologisticsincome.co.uk(formerly Aberdeen Standard European Logistics Income PLC)Capturing long-term income potential from logistics real estate in EuropeAnnual Report 31 December 2021abrdn European Logistics Income plc02Annual Report 2021DHL,Warsaw,PolandContentsTHIS DOCUMENT IS IMPORTANT AND REQ

2、UIRES YOUR IMMEDIATE ATTENTION.If you are in any doubt about the action you should take,you are recommended to seek your own independent financial advice from your stockbroker,bank manager,solicitor,accountant or other financial adviser authorised under the Financial Services and Markets Act 2000 if

3、 you are in the United Kingdom or,if not,from another appropriately authorised financial adviser.If you have sold or otherwise transferred all your Ordinary shares in abrdn European Logistics Income plc,please forward this document,together with the accompanying documents immediately to the purchase

4、r or transferee,or to the stockbroker,bank or agent through whom the sale or transfer was effected for transmission to the purchaser or transferee.Visit our Website To find out more about abrdn European Logistics Income plc,please visit:eurologisticsincome.co.ukAny Questions?If you should have any q

5、uestions in relation to this Annual Report and financial statements please send them by email to:European.LOverview Company Overview 04Chairmans Statement 05Strategic Report Overview of Strategy 11Results 22Performance 23Our Unique Selling Points 242021 Accomplishments 26Investment Managers Review 2

6、8Portfolio Property Portfolio 36Group Structure 50Environmental,Social and Governance(ESG)(Unaudited)53ESG Embedded in the Investment Philosophy(Unaudited)54Sustainability Performance(Unaudited)60Materiality(Unaudited)61Environmental Indicators(Unaudited)62Governance Your Board of Directors 67Direct

7、ors Report 69Directors Remuneration Report 77Statement of Directors Responsibilities in Respect of the Annual Report and the Financial Statements 80Report of the Audit Committee 81Financial Statements Independent Auditors Report to the Members of 84abrdn European Logistics Income plc 84Consolidated

8、Statement of Comprehensive Income 91Consolidated Balance Sheet 92Consolidated Statement of Changes in Equity 93Consolidated Statement of Cash Flows 94Notes to the Financial Statements 95Parent Company Balance Sheet 119Parent Company Statement of Changes in Equity 120Parent Company Notes to the Finan

9、cial Statements 121Corporate Information Information about the Investment Manager 131Investor Information 134EPRA Financial Reporting(Unaudited)137Alternative Investment Fund Managers Directive Disclosures(Unaudited)141Glossary of Terms and Definitions and Alternative Performance Measures 142Notice

10、Notice of Annual General Meeting 147Contact Addresses 15203Annual Report 2021OverviewCompany Overviewabrdn European Logistics Income plc(the“Company”or“ASELI”)is an investment trust investing in high quality European logistics real estate to achieve its objective of providing its shareholders with a

11、 regular and attractive level of income and capital growth.The Company invests in a portfolio of mid-box and urban logistics warehouses diversified by both geography and tenant throughout Europe,targeting well located assets in established distribution hubs and within population centres.In addition

12、to its performance objective,the Company is characterised by:A diverse portfolio of assets across five countriesA strong focus on ESG and green performanceInvestment predominantly in the more liquid mid-box and urban logistics segment of the real estate marketModest gearing parametersDurable inflati

13、on-linked rental incomeabrdn asset managers across EuropeFinancial Highlights as at 31 December 2021Net asset value total return12020:13.6%12.4%Net Asset Value(000)2020:293,596487,505 Net Asset Value per share()2020:1.201.29Share price total return12020:26.6%12.4%Premium to Net Asset Value12020:0.5%

14、6.9%Ordinary dividend per share2020:5.645.64Ongoing Charges12020:1.3%1.3%IFRS Earnings Per Share2020:14.815.4Portfolio valuation(000)22020:425,248660,973Number of assets2020:1423Average lease length in years (excl breaks)2020:11.08.0Loan-To-Value (%)2020:31.4%25.1%Average building size(sqm)2020:27,7

15、1023,403Rent collection2020:99.7%100%1 Alternative Performance Measure-see glossary on page 142.2 Excluding IFRS 16 lease liabilities.04Annual Report 2021OverviewChairmans StatementDear Shareholder,It is a pleasure to present to you the Companys fourth Annual Report in respect of the year ended 31 D

16、ecember 2021.2021 was a stand-out year for the Company and for the wider European logistics real estate asset class.While the onset of the pandemic in early 2020 created significant uncertainty across all sectors,this ultimately led to an acceleration of the key structural drivers impacting the logi

17、stics sector.Having been a first mover into the sector in the UK listed arena with our first investments in early 2018,the Company continued to benefit from these sector tailwinds,delivering a double digit net asset value(“NAV”)total return for the second year running.The Companys 2021 sector leadin

18、g GRESB rating was a further endorsement of our strategy.It has been a difficult few months watching events unfold in Ukraine and our thoughts are with all of those affected.At a portfolio level,we are monitoring for any potential impact on our tenants and their businesses.Whilst to date there is no

19、 indication that these businesses have been impacted in any way,we stand ready to try to help wherever there may be a need.The segment of the market that we operate in has seen extraordinarily fast growth,with little to suggest this is not a permanent shift.The 274 million of acquisitions during the

20、 year helped to further diversify the portfolio,with the landmark last-mile Madrid portfolio acquisition in particular adding further quality and a roster of high-quality tenants,including Amazon.Following completion of the Phase IV development shortly,the Companys portfolio will be 53%weighted by v

21、alue to the high-growth,urban logistics sector,the part of the market which is forecast to see the strongest capital and rental growth over the medium term.It was very pleasing to see the support shown from our existing shareholders as well as the introduction of some new names on the register as we

22、 raised additional funds to deliver on our ambition to scale the Company.Importantly,the 8-year portfolio WAULT and CPI indexation of the majority of our tenant leases provides for a durability of income and a strong degree of inflation protection.70%of our annual income is subject to uncapped CPI i

23、ndexation and the majority of the remainder subject to capped indexation.At the same time,rent remains a small element of our occupiers overheads.OverviewAs at 31 December 2021,the Companys property portfolio was independently valued at 661 million(556 million),and consisted of 23 assets located acr

24、oss five European countries.The like-for-like portfolio valuation increase was predominantly driven by yield compression across the entire portfolio,reflecting the continued strength of the European logistics real estate market alongside the high-quality nature of the Companys portfolio.We are pleas

25、ed to report that 100%of the rent due for the financial year has been collected.In April 2021,the Company completed the purchase of a new warehouse in d,Poland,for 28 million and this was followed in July by the acquisition of an urban logistics warehouse in Barcelona,Spain,for 18.7 million.In Decem

26、ber 2021,the Company announced the acquisition of a portfolio of newly constructed last-mile logistics warehouses with excellent sustainability credentials,located in Gavilanes in the first ring of Madrid,Spain,for a total acquisition price of 227 million.The best-in-class portfolio comprises seven

27、newly constructed logistics warehouses,with a further warehouse and multi-story parking station in development let to Amazon for 25 years.Tony Roper Chairman05Annual Report 2021The Madrid portfolio is let to five tenants and expected to generate 7.7 million of annual contracted rent,with Amazon Euro

28、pe accounting for 43%of this.The portfolio occupies a strategic micro location,with almost six million people accessible within a 30-minute drive time,and is near Madrid-Barajas International Airport and the Abroigal intermodal freight terminal,providing good connectivity with the rest of Europe.Our

29、 Investment Manager has the competitive advantage of being able to draw on the relationships and market knowledge of local abrdn teams across Europe,enabling it to originate and then execute on attractive acquisitions,as well as leveraging this insight to improve the portfolio performance.It has bui

30、lt a portfolio of assets diversified by both geography and tenant,in established distribution hubs and within close proximity of cities that have substantial labour pools and excellent transport links.Further details on the composition of the portfolio are provided in the Investment Managers Report.

31、ResultsAs at 31 December 2021 the audited Net Asset Value(“NAV”)per Share was 1.29(GBp-108.5p),an increase of 7.5%compared with the NAV per Share of 1.20 (GBp-107.9p)at 31 December 2020.With the interim dividends declared,this reflected a NAV total return of 12.4%for the year in euro terms(+5.4%in s

32、terling).The closing Ordinary Share price at 31 December 2021 was 116.0p(31 December 2020 108.5p),representing a premium to NAV per Share of 6.9%.With dividends reinvested this represented a strong share price total return over the year of 12.4%.DividendsFirst,second and third interim dividends in r

33、espect of the year ended 31 December 2021 of 1.41 euro cents(equivalent to 1.21p)per Ordinary Share were paid to Shareholders on 25 June 2021,24 September 2021 and 30 December 2021 respectively.On 18 February 2022 the Board declared a fourth interim dividend of 1.41 euro cents per Ordinary Share(equ

34、ivalent to 1.21p)which was paid to Shareholders on 25 March 2022,making a total of 5.64 euro cents paid in respect of the financial year under review.The equivalent sterling rate paid was 4.84p per Share(2020 4.96p per Share).It is the intention to continue to pay quarterly interim dividends in line

35、 with our policy.Shareholders may elect to receive dividend payments in Euros instead of Sterling.A currency election period is effective from the record date of each dividend for approximately 10 days to permit Shareholders to make their currency choices.Once a Shareholder has elected to receive di

36、vidends in Euros,then all future dividends will be paid in Euros unless the Shareholder elects to switch back to Sterling payments.Dividends are declared in respect of the quarters ending on the following dates:31 March,30 June,30 September and 31 December in each year.The dividend target and any di

37、vidend payment may be made up of both dividend income and income which is designated as an interest distribution for UK tax purposes and therefore subject to the interest streaming regime applicable to investment trusts.Further details on this breakdown can be found on page 22.Share IssuanceIn March

38、 2021 the Company announced the oversubscribed issue of 18.45 million new Ordinary shares,raising gross proceeds of 19.4 million(equivalent to approximately 22.6 million).This was followed in October with the issuance of a further 114.7 million new Ordinary shares,raising gross proceeds of 125 milli

39、on(equivalent to approximately 145.9 million).This issue was also oversubscribed with strong support from both existing and new investors and a scaling back exercise was undertaken due to the strong investor demand.Following the year end,on 4 February 2022 the Company issued a further 34,545,455 new

40、 Ordinary shares at a price of 110 pence per share in a placing and retail offer.This issue raised an additional 38 million(45.6 million),enabling the Company to continue with its near-term acquisition strategy.At the time of writing,the total number of shares in issue and therefore with voting righ

41、ts in the Company is 412,174,356 shares.FinancingFixed term debt from banks is secured on certain assets or groups of assets within the portfolio.These non-recourse loans range in maturities between 3.2 and 6.7 years with all-in interest rates ranging between 1.10%and 1.62%per annum.In December the

42、Company increased the asset level gearing on its Dutch portfolio by a further 17 million at an all-in interest rate of 1.34%.In November the Company increased its uncommitted master facilities loan agreement(the“Facility”)with Investec Bank plc from 40 million to 70 million.Under the Facility,the Co

43、mpany may make requests for drawdowns at selected short-duration tenors,as and when required,to fund acquisitions or for other liquidity requirements.Within the Facility,Investec also makes available a 3.3 million committed revolving credit facility(“RCF”)which is carved out of the total 70 million

44、limit of the Facility.This facility sits at the parent company level and provides added flexibility.06Annual Report 2021The year-end gearing level was 25.1%(2020-31.4%)with an average interest rate of 1.43%on the total fixed term debt arrangements of 161.6 million.GRESB and Asset ManagementThe Inves

45、tment Manager continues to focus on asset management initiatives,leveraging its network of locally based asset managers to enhance the value of the portfolios assets.This includes initiatives around building extensions and improvements to sites both internally and externally for the benefit of tenan

46、ts and their workforces and to enhance the future value of the assets.The planned extension to our Waddinxveen asset is a recent good example of this.I was pleased to report that in October,the Company was awarded Sector Leader status and placed first in the Listed European Industrial Distribution W

47、arehouse segment,in the 2021 GRESB survey(Global Real Estate Sustainability Benchmark),reflecting the continued work that the Investment Manager has undertaken in improving the sustainability credentials of the portfolio.The portfolio maintained its four Green Stars out of a maximum of five.The Comp

48、anys 2021 GRESB score of 84/100 represented an improvement on its 2020 GRESB survey score of 79/100.It also compared favourably against the 64/100 average peer score and 73/100 overall average 2021 GRESB score.This improved performance rewards the progress made with regards to environmental,social a

49、nd governance(“ESG”)factors.These include solar panel project initiatives,tenant satisfaction surveys,light sustainability audits and 100%data collection across the portfolio linked to Envizi sustainable reporting software which is used to analyse energy consumption.The Investment Manager obtains vo

50、lumetric usage data on energy use,waste disposal and water consumption for reporting and possible cost savings.In addition,all buildings have LED lighting and the Investment Manager continues with plans to further enhance ESG credentials going forward.ESG is embedded within the Investment Managers i

51、nvestment process and although many of our assets are recently built,a programme of works continues to enhance areas where improvements can be made.Sustainability is fundamental to our ability to create long-term value for all stakeholders and the Investment Manager has defined and continues to impl

52、ement a strategy to support our sustainability targets for positive environmental and socio-economic impacts.The ESG section gives further clarity on our processes including our initial thoughts on establishing a net zero carbon pathway.GovernanceThe Company is a member of the Association of Investm

53、ent Companies and seeks to follow best practice regarding appropriate disclosure.In accordance with good governance,the Directors offered to meet with a number of our substantial Shareholders during the year to hear their views on the Company and its performance.Directors are available to meet with

54、investors to discuss the Company in more detail throughout the year and may be contacted through the Company Secretary.The Board looks to undertake short annual site visits to view the properties owned,meet with tenants where possible and members of local staff and advisers of the Investment Manager

55、.Following best practice,the whole Board is standing for re-election at the forthcoming AGM and further details on each Director may be found on pages 67 and 68.Change of Company nameIn order to align the Companys name with the name of the Managers business,which changed to abrdn plc,the Board resol

56、ved to change the Companys name to abrdn European Logistics Income plc.This took effect on 1 January 2022 with the Companys ticker,ASLI,remaining unchanged.Annual General MeetingIt is currently the Boards intention to hold the Companys Annual General Meeting in London on Monday,6 June 2022 at 12:30p

57、m at the offices of abrdn plc,Bow Bells House,1 Bread Street,London EC4M 9HH.The formal Notice of AGM may be found on page 147.MarketLogistics remains a preferred real estate sector for investors,most recently demonstrated by the competition for Blackstones 21 billion Mileway portfolio,a transaction

58、 that on completion will be far and away the largest ever in the European real estate sector.We are witnessing unprecedented disruption caused by systemic changes to the way global economies function.With businesses of all shapes and sizes being forced to future proof their supply chains,and as e-co

59、mmerce penetration across Europe,which lags the UK,accelerates,so occupier demand has continued to strengthen with vacancy rates reaching historic lows.07Annual Report 2021Leasing tension remains robust,particularly for urban logistics,with land values under pressure from competing uses and with inc

60、ome growth prospects stronger than for big-boxes,where risk is higher at lease maturity with a more limited potential tenant base and where replacement costs are more in line with capital costs.Outlook 2021 was another successful year for the Company in terms of both acquisitions and NAV performance

61、,as we continue to benefit from our early entry into what is a fast growing and dominant subsector.The 666 million portfolio is diversified by property,tenant and geography and following the completion of Phase IV in Madrid,it will comprise 13 urban logistics warehouses and 11 mid-box logistics ware

62、houses,with 18 of the 24 assets constructed since 2018.Our tenant base is diversified across 50 tenants,consisting predominantly of third-party logistics providers,e-commerce related businesses and grocery-focused vendors.Our tenants businesses are generally well positioned in areas which remain ess

63、ential to the everyday operation of the modern economy.A strong commitment to sustainability,demonstrated by the Companys sector-leading GRESB rating with four out of five stars awarded for 2021,together with the inflation linked nature of the portfolios leases,provides a strong platform for further

64、 growth.The Investment Managers pipeline of logistics assets is regularly reviewed for quality of location and tenants,and the ability to ensure that they are future fit.We are expecting to shortly complete on an acquisition,located in the popular Venlo-Venray agrofood-dominated region in the Nether

65、lands and we expect to also complete in the coming month or so on the purchases of a further three well-placed assets we have under exclusivity in France.One of the Boards priorities is to grow the Company,albeit in a disciplined manner,in order to enjoy the benefits that come with increased scale a

66、nd liquidity providing our shareholders with income and capital growth.We retain a strong conviction in our investment strategy,which has allowed us to reward shareholders with an attractive and stable dividend,and continue to seek to grow and diversify the portfolio.During a period of rapid inflati

67、onary pressure,the Companys portfolio should provide continued growth with a level of inflation protection from CPI linked leases.Tony RoperChairman 21 April 202208Annual Report 2021Strategic ReportThe Company is a UK investment trust with a premium listing on the Main Market of the London Stock Exc

68、hange.The Company invests in European logistics real estate to achieve its objective of providing its shareholders with a regular and attractive level of income return together with the potential for long-term income and capital growth.The Company invests in a portfolio of mid-box and urban logistic

69、s warehouses diversified by both geography and tenant throughout Europe,predominantly targeting well-located assets at established distribution hubs and within population centres.2017 The Company was launched on the London Stock Exchange in December 2017.09Annual Report 2021Strategic ReportOverview

70、of StrategyThe CompanyThe Company is a UK investment trust with a premium listing on the Main Market of the London Stock Exchange.The Company invests in European logistics real estate to achieve its investment objective noted below.The Company was incorporated in England and Wales on 25 October 2017

71、 with registered number 11032222 and launched on 15 December 2017.Change of Company nameAs indicated at the time of the half yearly results,in order to align the Companys name with the name of the Managers business,which recently changed to abrdn plc,the Board resolved to change the Companys name to

72、 abrdn European Logistics Income plc.This took effect from 1 January 2022.The Companys ticker,ASLI,remainsunchanged.Investment ObjectiveThe Company aims to provide a regular and attractive level of income return together with the potential for long-term income and capital growth from investing in hi

73、gh quality European logistics real estate.Investment PolicyThe Company aims to deliver the investment objective through investment in,and active asset management of,a diversified portfolio of logistics real estate assets in Europe.The Company will invest in a portfolio of single and multi-let assets

74、 diversified by both geography and tenant throughout Europe,predominantly targeting well-located assets at established distribution hubs and within population centres.In particular,the Investment Manager will seek to identify assets benefitting from long-term,index-linked,leases as well as those whi

75、ch may benefit from structural change,and will take into account several factors,including but not limited to:.the property characteristics and whether they are appropriate for the location(such as technical quality,ESG credentials,scale,configuration,layout,transportation links,power supply,data co

76、nnectivity,manoeuvrability,layout flexibility,and overall operational efficiencies);.the location and its role within European logistics (city,regional,national or international distribution),key fundamentals supporting logistics activity within the micro location such as proximity to airport,port,t

77、ransport nodes,multimodal transport infrastructure,established warehousing hubs,transport corridors,population centres,labour availability and market dynamics such as supply(of both land and existing stock),vacancy rate and planned infrastructure upgrades;.the terms of the lease(s)focusing on durati

78、on,inflation-linked terms,ESG criteria,level of passing rent relative to market rent,the basis for rent reviews,and the potential for capturing growth in market rental income;.the strength of the tenants financial covenant;.the business model of the tenant and their commitment to the asset both in t

79、erms of capital expenditure and the role it plays in their operations;and.the potential to implement active asset management initiatives to add value over the holding period.The Company will invest either directly or through holdings in special purpose vehicles,partnerships,or other structures.The C

80、ompany may invest in forward commitments when the Investment Manager believes that to do so would enhance risk adjusted returns for Shareholders and/or secure an asset at an attractive yield.The Companys active asset management activities are expected to focus on adding value through:.negotiating or

81、 renegotiating leases to increase/secure rental income:managing vacancies;.undertaking refurbishments to maintain liquidity;.managing redevelopments as assets approach obsolescence;.adding solar panels to reduce carbon emissions and generate additional income streams;.where appropriate,extending exi

82、sting on-site buildings or developing adjacent plots;.refurbishment and redevelopment activity will,amongst other things,focus on:enhancing occupier wellbeing;operational efficiencies;energy efficiency;.reducing carbon emissions;and elevating technological provision as well as increasing lettable ar

83、ea.The Companys active management of debt will effectively manage costs and risk to enhance investment returns.10Annual Report 2021Diversification of RiskThe Company will at all times invest and manage its assets in a manner which is consistent with the spreading of investment risk.The following inv

84、estment limits and restrictions will apply to the Company and its business which,where appropriate,will be measured at the time of investment:.the Company will only invest in assets located in Europe;.no more than 50 per cent.of Gross Assets will be concentrated in a single country;.no single asset

85、may represent more than 20 per cent.of Gross Assets;.forward commitments will be wholly or predominantly pre-let and/or have the benefit of a rental guarantee and the Companys overall exposure to forward commitments and development activity will be limited to 20 per cent.of Gross Assets;.the Company

86、s maximum exposure to any single developer will be limited to 20 per cent.of Gross Assets;.the Company will not invest in other closed-ended investment companies;.the Company will predominantly invest in assets with tenants which have been classified by the Investment Managers investment process,as

87、having strong financial covenants.However,the Company may,on an exceptional basis,invest in an asset with a tenant with a lower financial covenant strength(and/or with a short lease term)where the Investment Manager believes that the asset can be leased on a longer term tenancy to a tenant with stro

88、ng financial covenants within a reasonable time period;and .no single tenant will represent more than 20 per cent.of the Companys annual gross income measured annually.The Company will not be required to dispose of any asset or to rebalance the Portfolio as a result of a change in the respective val

89、uations of its assets.The Company intends to conduct its affairs so as to continue to qualify as an investment trust for the purposes of section 1158 and 1159(and regulations made thereunder)of the Corporation Tax Act 2010.Borrowing and GearingThe Company uses gearing with the objective of improving

90、 shareholder returns.Debt is typically non-recourse and secured against individual assets or groups of assets with or without a charge over these assets,depending on the optimal structure for the Company and having consideration to key metrics including lender diversity,cost of debt,debt type and ma

91、turity profiles.The aggregate borrowings are always subject to an absolute maximum,calculated at the time of drawdown for a property purchase,of 50 per cent.of Gross Assets.Where borrowings are secured against a group of assets,such group of assets will not exceed 25 per cent.of Gross Assets in orde

92、r to ensure that investment risk remains suitably spread.The Board has established gearing guidelines for the Alternative Investment Fund Manager(“AIFM”)in order to maintain an appropriate level and structure of gearing within the parameters set out above.Under these guidelines,aggregate asset level

93、 gearing will sit,as determined by the Board,at or around 35 per cent of Gross Assets.This level may fluctuate as and when new assets are acquired until longer term funding has been established or whilst short-term asset management initiatives are being undertaken.The Board will keep the level of bo

94、rrowings under review.In the event of a breach of the investment guidelines and restrictions set out above,the AIFM will inform the Board upon becoming aware of the same,and if the Board considers the breach to be material,notification will be made to a Regulatory Information Service and the AIFM wi

95、ll look to resolve the breach with the agreement of the Board.The Directors may require that the Companys assets are managed with the objective of bringing borrowings within the appropriate limit while taking due account of the interests of shareholders.Accordingly,corrective measures may not have t

96、o be taken immediately if this would be detrimental to shareholders interests.Any material change to the Companys investment policy set out above will require the approval of shareholders by way of an ordinary resolution at a general meeting and the approval of the Financial Conduct Authority.Non-ma

97、terial changes to the investment policy may be approved by theBoard.Comparative IndexThe Company does not have a benchmark.DurationAlthough the Company does not have a fixed life,underthe Companys articles of association the Directorsare required to propose an ordinary resolution for the continuatio

98、n of the Company at the Annual GeneralMeeting to be held in 2024 and then every third year thereafter.11Annual Report 2021Key Performance Indicators(KPIs)The Board uses a number of financial performance measures to assess the Companys success in achieving its objective and to determine the progress

99、of the Company in pursuing its Investment Policy.The main KPIs identified by the Board in relation to the Company,which are considered at each Board meeting,are as follows:KPIDescriptionNAV Return(per share)1The Board considers the NAV total return to be the best indicator of performance over time a

100、nd is therefore the main indicator of performance used by the Board.Performance for the year and since inception is set out on page 21.The Company is targeting,for an investor in the Company at launch,a total NAV return of 7.5per cent.per annum(in terms).Share Price (on a total return basis)1The Boa

101、rd also monitors the price at which the Companys shares trade on a total return basis over time.A graph showing the share price performance is shown on page 22.Premium/(Discount)1The premium/(discount)relative to the NAV per share represented by the share price is closely monitored by the Board.A gr

102、aph showing the share price(discount)/premium relative to the NAV is shown on page 22.Dividends per ShareThe Boards aim is to pay a regular quarterly dividend enabling shareholders to rely on a consistent stream of income.Dividends paid are set out on page 21.The Company is targeting,for an investor

103、 in the Company at launch,an annual dividend yield of 5.0 per cent.per Ordinary Share(in terms).Ongoing Charges Ratio(“OCR”)1The OCR is the ratio of expenses as a percentage of average daily shareholders funds calculated in accordance with the industry standard.The Board reviews the OCR regularly as

104、 part of its review of all expenses.The aim is to ensure that the Company remains competitive and is able to deliver on its yield target to Shareholders.The Companys OCR is disclosed on page 21.1 Alternative Performance Measure-see glossary on page 142.ManagerUnder the terms of the Management Agreem

105、ent,the Company has appointed Aberdeen Standard Fund Managers Limited as the Companys alternative investment fund manager(“AIFM”)for the purposes of the AIFM Rules.The AIFM has delegated portfolio management to the Amsterdam Branch of Aberdeen Standard Investments Ireland Limited which acts as Inves

106、tment Manager.Pursuant to the terms of the Management Agreement,the AIFM is responsible for portfolio and risk management on behalf of the Company and will carry out the on-going oversight functions and supervision and ensure compliance with the applicable requirements of the AIFM Rules.The AIFM and

107、 the Investment Manager are both legally and operationally independent of the Company.Dividend PolicySubject to compliance with all legal requirements the Company pays interim dividends on a quarterly basis.The Company declares dividends in Euros,but shareholders will receive dividend payments in St

108、erling unless electing to receive payments in Euros through the Equiniti Shareview Portfolio website or via CRESTPay.If applicable,the date on which the Euro/Sterling exchange rate is set will be announced at the time the dividend is declared.Distributions made by the Company may take the form of ei

109、ther dividend income or qualifying interest income which may be designated as interest distributions for UK tax purposes.Principal Risks and Uncertainties There are a number of risks which,if realised,could have a material adverse effect on the Company and its financial condition,performance and pro

110、spects.The Board has carried out a robust assessment of the principal risks as set out below together with a description of the mitigating actions taken by the Board.The Board confirms that it has a process inplace for regularly reviewing emerging risks that mayaffect the Company in the future.The B

111、oard collectively discusses with the Manager areas where there may be emerging risk themes and maintains a register of these.Such risks may include,but are not limited to,future pandemics,cybercrime,12Annual Report 2021changes in interest rates and climate change.In the event that an emerging risk h

112、as gained significant weight or importance,that risk is categorised and added to the Companys risk register and is monitored accordingly.The principal risksassociated with an investment in the Companys shares can be found in the Companys latest Prospectus dated 8 September 2021,published on the Comp

113、anys website.The Board continues to monitor the residual impact of the UKs departure from the EU(“Brexit”).The Board and Manager do not believe that there will be a significant impact on the Company but continues to monitor the longer term impact and associated trends.The Board has kept the risks re

114、lated to the subsiding COVID-19 pandemic under regular review throughout the year and subsequently.The impact on the Company and its operations of the pandemic has been negligible through 2021 with rental income and services unaffected.The Board,through the Investment Manager,closelymonitors all thi

115、rd party service arrangements and is pleased to report that it has not seen any reduction in the level of service provided to the Company.The Board is very mindful of current events involving Russia and Ukraine which are causing significant market volatility across Europe and the World.Whilst diffic

116、ult to predict the eventual outcome and naturally upsetting for all involved,there has been no discernible impact to date on our tenants located in Poland and across the wider region.Inallother respects,the Companys principal risks and uncertainties have not changed materially since the dateof the A

117、nnual Report and are not expected to changematerially for the current financial year.DescriptionMitigating ActionStrategic Risk:Strategic Objectives andPerformance-The Companys strategic objectives and performance,both absolute and relative,become unattractive to investors leading to a widening of t

118、he discount,potential hostile shareholder actions and the Board fails to adapt the strategy and/or respond to investor demand.The Companys strategy and objectives are regularly reviewed by the Board to ensure they remain appropriate and effective.The Board receives regular presentations on the econo

119、my and also the property market to identify structural shifts and threats so that the strategy can be adapted if necessary.There is regular contact with shareholders both through the Investment Manager and the broker with additional direct meetings undertaken by the Chairman and other Directors.Boar

120、d reports are prepared by the Investment Manager detailing performance,NAV return and share price analysis versus peers.Cash flow projections are prepared by the Investment Manager and reviewed quarterly by the Board.Shareholder/market reaction to Company announcements is monitored.Investment and As

121、set Management Risk:Investment Strategy-Poorly judged investment strategy,regional allocation,use of gearing,inability to deploy capital and the mis-timing of disposals and acquisitions,resulting in poor investment returns.abrdn has real estate research teams which provide performance forecasts for

122、different sectors and regions.There is a team of experienced portfolio managers who have detailed knowledge of the markets in which they operate.abrdn has a detailed investment process for both acquisitions and disposals that require to be signed off internally before the Board reviews any final dec

123、ision.The Board is very experienced with Directors having a knowledge of property markets.13Annual Report 2021DescriptionMitigating ActionInvestment and Asset Management Risk:Developing and refurbishing property-Increased construction costs,construction defects,delays,contractor failure,lack of deve

124、lopment permits,environmental and third party damage can all impact the resulting capital value and income from investments.abrdn has experienced investment managers with extensive development knowledge with in-depth research undertaken on each acquisition/development.Development contracts are negot

125、iated by experienced teams supported by approved lawyers.Due diligence is undertaken on developers including credit checks and current pipelines.Construction and risk insurance checked.Post completion the developer is responsible for defects and monies are held in escrow for a period of time after h

126、andover.Investment and Asset Management Risk:Health and Safety-Failure to identify and mitigate major health&safety issues or to react effectively to an event leading to injury,loss of life,litigation and any ensuing financial and reputational impact.For new properties health and safety is included

127、as a key part of due diligence.Asset managers visit buildings on a regular basis.Property managers are appointed by abrdn to monitor health&safety in each building and reports are made to the asset managers on a monthly basis.Asset managers visit each building at least twice a year.Tenants are respo

128、nsible for day to day operations of the properties.Investment and Asset Management Risk:Environment-Properties could be negatively impacted by hazardous materials(for example asbestos or other ground contamination)or an extreme environmental event(e.g.flooding)or the tenants own operating activities

129、 could create environmental damage.Failure to achieve environmental targets could adversely affect the Companys reputation and result in penalties and increased costs and reduced investor demand.Legislative changes relating to sustainability could affect the viability of asset management initiatives

130、.The Investment Manager undertakes in depth research on each property acquisition with environmental surveys and considers its impact on the environment and local communities.The Investment Manager has adopted a thorough environmental policy which is applied to all properties in the portfolio.Experi

131、enced advisers on environmental,social and governance mattersare consulted both internally(within the Investment Manager)and externallywhere required.Financial Risks:Macroeconomic-Macroeconomic changes(e.g.levels of GDP,employment,inflation,interest rate and FX movements),political changes(e.g.new l

132、egislation)or structural changes(e.g.new technology or demographics)negatively impact commercial property values and the underlying businesses of tenants(market risk and credit risk).Falls in the value of investments could result in breaches of loan covenants and solvency issues.abrdn research teams

133、 take into account macroeconomic conditions when collating forecasts.This research is fed into Investment Manager decisions on purchases/sales and regional allocations.The portfolio is EU based and diversified across a number of different countries and also has a diverse tenant base seeking to minim

134、ise risk concentration.There is a wide range of lease expiry dates within the portfolio in order to minimise re-letting risk.The Company has no exposure to speculative development and forward funding is only undertaken where the development is predominantly pre-let.Rigorous portfolio reviews are und

135、ertaken by the Investment Manager and presented to the Board on a regular basis.Annual asset management plans are developed for each property and individual investment decisions are subject to robust risk versus return evaluation and approval.14Annual Report 2021DescriptionMitigating ActionFinancial

136、 Risks:Gearing-Gearing risk-an inappropriate level of gearing,magnifying investment losses in a declining market,could result in breaches of loan covenants and threaten the Companys liquidity and solvency.An inability to secure adequate borrowing with appropriate tenor and competitive rates could al

137、so negatively impact the Company.Regular covenant reporting to banks is undertaken as required.The gearing target is set at an indicative 35%asset level limit and an absolute Company limit of 50%.The Companys diversified European logistics portfolio,underpinned by its tenant base,should provide suff

138、icient value and income in a challenging market to meet the Companys future liabilities.The portfolio has attracted very competitive terms and interest rates from lenders for the Companys loan facilities.The Investment Manager has relationships with multiple funders and wide access to different sour

139、ces of funding on both a fixed and variable basis.Financial modelling is undertaken and stress tested annually as part of the Companys viability assessment and whenever new debt facilities are being considered.Loan covenants are continually monitored and reported to the Board on a quarterly basis an

140、d would also be reviewed as part of the disposal process of any secured property.Financial Risks:Liquidity Risk and FX Risk-The inability to dispose of property assets in order to meet financial commitments of the Company or obtain funds when required for asset acquisition or payment of expenses or

141、dividends.Movements in foreign exchange and interest rates or other external events could affect the ability of the Company to pay its dividends.The diversified portfolio is geared towards a favoured sector.A cash buffer is maintained and an overdraft facility is currently in place.Investment is foc

142、used on mid-sized properties which is considered the more liquid part of the sector.The assets of the Company are denominated in a non-sterling currency,predominantly the Euro.No currency hedging is planned for the capital,but the Board periodically reviews the hedging of dividend payments having re

143、gard to availability and cost.Financial Risks:Credit Risk-Credit Risk the risk that the counterparty will be unable or unwilling to meet a commitment entered into by the Group:failure of a tenant to pay rent or failure of a deposit taker,future lender or a current exchange rate swap counterparty.The

144、 property portfolio has a balanced mix of investment grade tenants and reflects diversity across business sectors.Rigorous due diligence is performed on all prospective tenants and their financial performance continues to be monitored during their lease.Rent collection from tenants is closely monito

145、red so that early warning signs might be detected.Deposits are spread across various abrdn approved banks and AAA rated liquidity funds.Financial Risks:Insufficient Income Generation-Insufficient income generation due to macro-economic factors including the current COVID-19 pandemic,and/or due to in

146、adequate asset management resulting in long voids or rent arrears or insufficient return on cash;dividend cover falls to a level whereby the dividend needs to be cut and/or the Company becomes unattractive to investors.Level of ongoing charges becomes excessive.The Investment Manager seeks a good mi

147、x of tenants in properties.A review of tenant risk and profile is undertaken using,for example,the Dun&Bradstreet Failure Scoring method and tenant covenants are thoroughly considered before a lease is granted.The abrdn team consists of asset managers on the ground who undertake asset management rev

148、iews and implementation and there is a detailed approval process within abrdn for lettings.At regular Board meetings forecast dividend cover is considered.There is regular contact with the broker and shareholders to ascertain,where possible,views on dividendcover.15Annual Report 2021DescriptionMitig

149、ating ActionRegulatory Risks:Compliance-The regulatory,legal and tax environment in which the Companys assets are located is subject to change and could lead to a sub-optimal corporate structure and result in increased tax charges or penalties.The Company has an experienced Company Secretary and eng

150、ages lawyers who will advise on changes once any new proposals are published.There is regular contact with tax advisers in relation to tax computations and transfer pricing.Directors have access to updates on relevant regulatory changes through the Companys professional advisers.The highest corporat

151、e governance standards are required from all key service providers and their performance is reviewed annually by the Management Engagement Committee.Operational Risks:Service Providers-Poor performance/inadequate procedures at service providers leads to error,fraud,non-compliance with contractual ag

152、reements and/or with relevant legislation or the production of inaccurate or insufficient information for the Company(NAV,Board Reports,Regulatory Reporting)or loss of regulatory authorisation.Key service providers include the AIFM,Company Secretary,the Depositary,the Custodian,the managing agents a

153、nd the Companys Registrar.abrdn has an experienced Investment Manager and Property Administration Team.The Company has engaged an experienced registrar:Equiniti is a reputable worldwide organisation.All service providers have a strong control culture that is regularly monitored.abrdn aims to meet al

154、l service providers once a year and the Management Engagement Committee reviews all major service providers annually.The Company has the ability to terminate contracts.Operational Risks:Business continuity-Business continuity risk to any of the Companys service providers or properties,following a ca

155、tastrophic event e.g.pandemic,terrorist attack,cyber attack,power disruptions or civil unrest,leading to disruption of service,loss of data etc.abrdn has a detailed business continuity plan in place with a separate alternative working office if required and the ability for the majority of its workfo

156、rce to work from home.abrdn has a dedicated Chief Information Security Officer who leads the Chief Information Security Office covering the following functions:Security Operations&Delivery,Security Strategy,Architecture&Engineering,Data Governance&Privacy,Business Resilience,Governance&Risk,Security

157、&IT.Properties within the portfolio are all insured.The IT environment of service providers is reviewed as part of the initial appointment and on an ongoing basis.16Annual Report 2021Promoting the CompanyThe Board recognises the importance of promoting the Company to prospective investors both for i

158、mproving liquidity and enhancing the value and rating of the Companys shares.The Board believes an effective way to achieve this is through subscription to,and participation in,the promotional programme run by abrdn on behalf of a number of investment trusts under its management.The Companys financi

159、al contribution to the programme is matched by abrdn.abrdns marketing team reports quarterly to the Board giving analysis of the promotional activities as well as updates on the shareholder register and any changes in the make up of that register.The purpose of the programme is both to communicate e

160、ffectively with existing shareholders and to gain new shareholders with the aim of improving liquidity and enhancing the value and rating of the Companys shares.Communicating the long-term attractions of the Company is key and therefore the Company also supports abrdns investor relations programme w

161、hich involves regional roadshows,promotional and public relations campaigns.Board DiversityThe Board recognises the importance of having a range of skilled,experienced individuals with the right knowledge represented on the Board in order to allow the Board to fulfil its obligations.The Board also r

162、ecognises the benefits and is supportive of the principle of diversity in its recruitment of new Board members.The Board will not display any bias for age,gender,race,sexual orientation,religion,ethnic or national origins,or disability in considering the appointment of its Directors.The Board will c

163、ontinue to ensure that any future appointments are made on the basis of merit against the specification prepared for each appointment and,therefore,the Company does not consider it appropriate to set diversity targets.At 31 December 2021,there were two male Directors and two female Directors on the

164、Board.Socially Responsible Investment PolicyFurther details on the socially responsible investment policies adopted by the AIFM are disclosed from page 50.Environmental,Social and Human Rights IssuesThe Company has no employees as the Board has delegated day to day management and administrative func

165、tions to Aberdeen Standard Fund Managers Limited.There are therefore no disclosures to be made in respect of employees.The Companys socially responsible investment policy is outlined in the Investment Managers Review.Due to the nature of the Companys business,being a Company that does not offer good

166、s and services to customers,the Board considers that it is not within the scope of the Modern Slavery Act 2015(“MSA”).In addition the Companys turnover is below the threshold of 36 million.The Company is therefore not required to make a slavery and human trafficking statement.In any event,the Board

167、considers the Companys supply chains,dealing predominantly with professional advisers and service providers in the financial services industry,to be low risk in relation to this matter.A copy of the Managers statement in compliance with the Modern Slavery Act is available for download at Emissions r

168、elating to properties owned by the Company are the responsibility of the tenants and any emissions relating to the Companys registered office are the responsibility of abrdn plc.The Company has no direct greenhouse gas emissions to report from the operations of its business,although it is responsibl

169、e for low emissions generated at certain properties within its portfolio reportable under the Companies Act 2006(Strategic Report and Directors Reports)Regulations 2013,see page 53.Viability Statement The Company does not have a formal fixed period strategic plan but the Board formally considers ris

170、ks and strategy at least annually.The Board considers the Company,with no fixed life,to be a long-term investment vehicle,but for the purposes of this viability statement has decided that a period of three years is an appropriate period over which to report.The Board considers that this period refle

171、cts a balance between looking out over a long-term horizon and the inherent uncertainties of looking out further than three years.17Annual Report 2021In assessing the viability of the Company over the review period the Directors have conducted a robust review of the principal risks focussing upon th

172、e following factors:.The principal risks detailed in the Strategic Report;.The ongoing relevance of the Companys investment objective in the current environment;.The demand for the Companys shares evidenced by the historical level of premium or discount;.The level of income generated by the Company;

173、.The level of gearing including the requirement to negotiate new facilities and repay or refinance future facilities;and.The flexibility of the Companys bank facilities and putting these facilities in place in time to meet commitments.The Directors have reviewed summaries from the portfolio models p

174、repared by the Investment Manager which have been stress tested to highlight the performance of the portfolio in a number of varying economic conditions coupled with potential opportunities for mitigation.The Directors have also stress tested the financial position of the Company with attention on u

175、pcoming funding for acquisitions,and particularly the loss of a tenant in a French asset.The Company has prepared cash flow forecasts which reflect the potential impact of further reductions in rental income due to a possible worsening COVID-19 situation,including reasonably possible downside scenar

176、ios.The impact of reductions in rental income could be mitigated through a reduction in dividends to shareholders if considered necessary by the Board.The Company has modelled severe but plausible downside scenarios,taking into account specific tenant risks.These scenarios modelled reduced rental in

177、come through to 2023 and the worst case model equates to an overall 20%reduction of rental income per annum over that period.Accordingly,taking into account the Companys current position and the potential impact of its principal risks and uncertainties,the Directors have a reasonable expectation tha

178、t the Company will be able to continue in operation and meet its liabilities as they fall due for a period of three years from the date of this Report.In making this assessment,the Board has considered that matters such as significant economic uncertainty,stock market volatility and changes in inves

179、tor sentiment could have an impact on its assessment of the Companys prospects and viability in the future.The Board recognises that this assessment makes the assumption that the resolution to continue the Company,which will be put to shareholders at the sixth AGM of the Company,which will be held i

180、n 2024,is passed and subsequent triennial continuation resolutions are also passed.s172 StatementThe Board is required to describe to the Companys shareholders how the Directors have discharged their duties and responsibilities over the course of the financial year under section 172(1)of the Compani

181、es Act 2006 (the“s172 Statement”).This s172 Statement requires the Directors to explain how they have promoted the success of the Company for the benefit of its members as a whole,taking into account the likely long-term consequences of decisions,the need to foster relationships with all stakeholder

182、s and the impact of the Companys operations on the environment.The Boards philosophy is that the Company should operate in a transparent culture where all parties are treated with respect and provided with the opportunity tooffer practical challenge and participate in positive debate which is focuse

183、d on the aim of achieving the expectations of shareholders and other stakeholders alike.The Board reviews the culture and manner in which the Investment Manager operates at its regular meetings and receives regular reporting and feedback from the other key service providers.Investment trusts are lon

184、g-term investment vehicles,with no employees.The Companys Board of Directors sets the investment mandate as published in the most recent prospectus,monitors the performance of all service providers and is responsible for reviewing strategy on a regular basis.The key service provider for the Company

185、is the Alternative Investment Fund Manager(the“Manager”)and this relationship is reviewed at each Board meeting and relationships with other service providers are reviewed at least annually.Shareholders are seen as key stakeholders in the Company.The Board seeks to meet at least annually with shareh

186、olders at the Annual General Meeting.This is seen as a very useful opportunity to understand the needs and views of the shareholders.In between AGMs the Directors and Investment Manager also conduct programmes of investor meetings with larger institutional,private wealth and other shareholders to en

187、sure that the Company is meeting their needs.Such regular meetings may take the form of joint presentations with the Investment Manager or meetings solely with a Director where any matters of concern may be raised directly.18Annual Report 2021The other key stakeholder group is that of the underlying

188、 tenants that occupy space in the properties that the Company owns.The Board aims to conduct a site visit at least annually with the aim of meeting tenants locally and discussing their businesses and needs and assessing where improvements may be made or expectations managed.The Investment Managers a

189、sset managers are tasked with conducting meetings with building managers and tenant representatives in order to ensure the smooth running of the day to day management of the properties.The Board receives reports on the tenants activities at its regular Board meetings.The Board via the Management Eng

190、agement Committee also ensures that the views of its service providers are heard and at least annually reviews these relationships in detail.The aim is to ensure that contractual arrangements remainin line with best practice,services being offered meet the requirements and needs of the Company and p

191、erformance is in line with the expectations of the Board,Manager,Investment Manager and other relevant stakeholders.Reviews will include those of the Company depositary,custodian,share registrar,broker,legal adviser and auditor.The Investment Managers Report on pages 27 to 34 details the key investm

192、ent decisions taken during the year and subsequently.The Investment Manager has continued to invest the Companys assets in accordance with the mandate provided by shareholders at launch,under the oversight of the Board.In line with the increased equity base,further gearing was introduced into the po

193、rtfolio with the aim of maintaining gearing at asset level at or around 35%over the longer term.abrdns dedicated treasury team has been successful in negotiating the debt facilities at competitive market rates,resulting in the Companys blended all-in interest rate across all its debt being 1.43%whic

194、h is to the benefit of all shareholders.In October 2020 the Board announced that the Company had entered into a uncommitted four year 40 million master facilities loan agreement with Investec Bank plc which was increased in 2021 to 70 million to provide additional flexibility.This facility increases

195、 the Companys ability to acquire new assets prior to any fresh equity raise and will reduce the impact of cash drag on investment returns.Details of how the Board and Investment Manager have sought to address environmental,socialand governance matters across the portfolio aredisclosed on pages 50 to

196、 63.The Company is just over four years old having been launched at the end of 2017.However,it is a long-term investor and the Board has established the necessary procedures and processes to promote the long-term success of the Company.The Board will continue to monitor,evaluate and seek to improve

197、these processes as the Company grows,to ensure that the investment proposition is delivered to shareholders and other stakeholders in line with their expectations.FutureMany of the non-performance related matters likely to affect the Company in the future are common across all closed ended investmen

198、t companies,such as the COVID-19 pandemic and its impact,theattractiveness of investment companies as investment vehicles,geopolitical tensions and the impact of regulatory changes.These factors need to be viewed alongside the outlook for the Company,both generally and specifically,in relation to th

199、e portfolio.The Boards view on the general outlook for the Company can be found in my Chairmans Statement on page 8 whilst the Investment Managers views on the outlook for the portfolio are included on page 34.Tony RoperChairman21 April 202219Annual Report 2021Annual General Meeting(AGM)The AGM norm

200、ally provides an opportunity for directors to engage with shareholders,answer their questions and meet them informally.The 2022 AGM iscurrently scheduled to take placeon6 June 2022 in London.The Board is looking forward to meeting as many shareholders as possible at the AGM which is currently expect

201、ed to be an in-person meeting.Annual ReportWe publish a full annual report each year that contains a strategic report,governance section,financial statements and additional information.The report is available online and in paper format.Company AnnouncementsWe issue announcements for all substantive

202、news relating to the Company,including the purchase and sale of properties.You can find these announcements on the website.Results AnnouncementsWe release a full set of financial and operational results at the interim and full year stage.Updated net asset value figures are announced on a quarterly b

203、asis in line with our valuation policy.WebsiteOur website contains a range of information on the Company and includes details of our property investments.Details of financial results,the investment process and Manager and Investment Manager together with Company announcements and contact details can

204、 be found here:eurologisticsincome.co.uk.The ways we engage with our shareholders include:20Annual Report 2021Strategic ReportResultsFinancial Highlights31 December 202131 December 2020Total assets(000)728,386484,104Total equity shareholders funds(net assets)(000)487,505293,596Net asset value per sh

205、are(euros)1.291.20Net asset value per share(pence)108.48107.95Share price(mid market)(pence)117.00108.50Market capitalisation(000)438,050265,283Share price premium to sterling net asset value17.8%0.5%Dividends and earningsNet asset value total return per share()112.4%13.6%Dividends paid per share5.6

206、4c(4.84p)5.64c(4.96p)Revenue reserves(000)12,89511,720Gain/(Loss)(000)44,44335,389Operating costsOngoing charges ratio(Group only expenses)11.3%1.3%Ongoing charges ratio(Group and property expenses)11.8%1.6%Performance(total return)Year ended 31 December 2021Since Launch%returnShare price112.4%37.6%

207、Net Asset Value(EUR)112.4%34.3%1 Considered to be an Alternative Performance Measure(see Glossary on page 143 for more information).Dividends declared in respect of the Financial Year to 31 December 2021(cents)Dividend DistributionGBP penceDividend DistributionEURO cents Equivalent2Qualifying Intere

208、stGBP penceQualifying InterestEURO cents Equivalent2xd DateRecord DatePayDateFirst Interim0.80n/a0.41n/a03/06/202104/06/202125/06/2021Second Interim0.95n/a0.26n/a02/09/202103/09/202124/09/2021Third Interim0.971.130.240.2802/12/202103/12/202130/12/2021Fourth Interim1.011.180.200.2303/03/202204/03/202

209、225/03/2022Total3.731.112 The interim distributions are paid in GBP to shareholders on the register.However,with effect from the payment of the 3rd interim distribution,shareholders are able to make an election to receive distributions in euros.21Annual Report 2021Strategic ReportPerformanceShare Pr

210、ice Premium to Net Asset ValueLaunch to 31 December 20211Premium/(Discount)-15-12-9-6-303691215Dec 21Dec 20Dec 19Dec 18Dec 17Source:abrdn,Factset.1 Using the daily share prices together with the quarterly NAVs as announced by the Company at data points.Share Price Total Return Launch to 31 December

211、2021(rebased to 100 at launch)60708090100110120130140150Dec 21Dec 20Dec 19Dec 18Dec 17Source:abrdn,Factset.22Annual Report 2021abrdn European Logistics Income plc was launched in December 2017 and has already built a strategic position in the real estate market that the Board and Investment Manager

212、believe will deliver the investment objective to shareholders over the longer term.Our main USPs are listed below:1The Investment Manager has local teams on the ground that know the marketThe property business is a local business.You have to speak the local language and have a network withbrokers,de

213、velopers,investors and owner-occupiers to find the best opportunities at the right price.abrdn is one of the largest real estate investors in Europe with over 50 billion of real estate under management.abrdn has local boots on the ground with 290 real estate professionals with expertise in fund mana

214、gement,research,transactions,asset management,financing and other specialist property activities.2Investing in the most liquid mid-box and strong growth segment of urban logisticsDurability of income stream is key for an income driven strategy.The Investment Manager looks beyond the length of the in

215、itial lease contract to see if a warehouse has a second life after the lease matures.The mid-box section of the market,with building sizes reaching up to a maximum of 50,000 square metres,is where most of the leasing activity takes place providing us with options in the future.This means we operate

216、in a more liquid area of the sector than the ultra big-box part of the market where leasing options are more limited.Equally from a disinvestment perspective there will be limited numbers of potential investors who can take on these larger investment volumes.Our portfolio is now weighted towards urb

217、an logistics and this is where we have highest growth expectations.The urbanisation trend across Europe and the competition for shorter deliverytimes amongst parcel delivery specialists has created a higher demand for land in dense population areas resulting in higher land prices and stronger rental

218、 growth.3An increasingly diversified,high quality portfolio with long indexed leases to tenantsDurability of income streams will be achieved by acquiring the right warehouses in the right locations.The Company now has 23 buildings in the portfolio,of which 17 were new builds,in five European countri

219、es with 50 tenants providing good risk diversification.All buildings in the portfolio are either located alongside main transport corridors or within a short distance to dense population urban locations.Our buildings have modern specifications in terms of free height,floor load capacity,number of lo

220、ading doors and yard depth,all features that are particularly important for e-commerce focused logistics operators.Average lease length is 8.0 years(excluding breaks)and all leases are index-linked,the majority with indexation uncapped.Strategic ReportOur Unique Selling Points23Annual Report 20214A

221、clear focus on the European ContinentThis is a European strategy with a very clear focus on the European Continent and not the UK.There are several reasons for this.Firstly,e-commerce penetration has been materially behind that seen in the UK with high growth expected.Secondly,CPI-linked leases give

222、 a level of protection against inflation.Thirdly,the European market has seen lower long-term debt costs and finally,the region provides diversification options with 75%of the investable European market in continental Europe.5ESG is embedded in the investment philosophy resulting in a sector leading

223、 GRESB ratingabrdn,as a management house,has the ambition to become carbon neutral by 2050.As an investment company,the Company has a clear focus on improving the green performance of our buildings with the asset and property managers working closely with our tenants.One of the key focuses is the im

224、plementation of solar panels on the roofs of our buildings which are now on nine of our warehouses.The Company,through abrdn,is in the process of taking the first steps in describing a path to zero carbon emission.The progress being made is clearly reflected in the 2021 GRESB survey with a maintaine

225、d score of 4 out of a maximum 5 green stars and the award of Regional Sector Leader status making the Company the strongest performer in the peer-group with six listed strategies focusing on pan-European (including UK)logistics.6Modest gearing with attractive all-in costsThe Company has a modest lon

226、g-term target Loan-To-Value ratio(LTV)of c.35%,with a current LTV of 25%(as at 31 December 2021).The maximum LTV is 50%at the time of drawdown but the level of LTV may fluctuate through the use of shorter term loan facilities and in advance of cash raises allowing the Company to commit to further op

227、portunities as they arise.All-in costs of the current loanportfolio are 1.4%.7Low investment management feesThe investment management fee is set at a competitive rate of 75 basis points of NAV up to 1.25 billion which will drop to 60 basis points above this.24Annual Report 2021Strategic Report2021 A

228、ccomplishmentsIn 2021 the logistics market once again showed its strength and resilience.Logistics has been growing in importance and scale thanks to changes in consumption behaviour and much needed supply chain reconfiguration.The success of the sector is also reflected in the Companys 2021 rent co

229、llection statistics,sitting at 100%.The strength of the sector and strong yield compression led to double-digit net asset value returns and strong outperformance of our targets.2021 was also a transformational year with accelerated growth in terms of the number of assets we manage.Two successful ove

230、rsubscribed capital raises generated an additional 144.4 million(168.2 million)allowing the Investment Manager to purchase ten further warehouses for a total purchase price of 274.1 million and thus adding further diversification to our property portfolio.With the growing urban profile of the strate

231、gy and the highest ESG rating in the peer group in the annual GRESB survey,the portfolio looks future-fit and well positioned for further growth.Having local teams on the ground is crucial in managing an international logistics portfolio and a key factor in abrdns real estate offering.With these tea

232、ms based around Europe,the Investment Manager is able to find good assets with competitive pricing and liaise far more easily with tenants helping to protect value by keeping them in good condition and to add value through active management.ACQUISITIONSApril 2021:the Company finalised the acquisitio

233、n of a new logistics warehouse in Lodz,Poland,for a net purchase price of 28.1 million.July 2021:the Company finalised the acquisition of an urban logistics warehouse in Barcelona,Spain,for a net purchase price of 18.7 million.December 2021:the Company finalised the acquisition of a portfolio of sev

234、en existing logistics warehouses with one ongoing development in Madrid,Spain(Gavilanes),for a net purchase price of 227.3 million.FUNDINGMarch 2021:the Company issued 18.45 million new Ordinary shares,raising gross proceeds of 19.4 million (22.3 million)at the issue price of 105.0 pence per share.S

235、eptember 2021:the Company issued 114.7 million new Ordinary shares,raising gross proceeds of 125 million (145.9 million)at the issue price of 109.0 pence per share.November 2021:the Company signed a revised revolving credit facility agreement with Investec Bank,increasing the facilitys capacity to 7

236、0 million,providing further flexibility in the acquisition of new properties.December 2021:the Company increased by 17 million the fixed term debt on the existing Dutch portfolio at an all-in interest rate of 1.34%and with a remaining loan duration of 4.6 years.25Annual Report 2021ESGFebruary 2021:t

237、he Investment Manager completed a tenant satisfaction survey undertaken by Keepfactor.The results of these surveys informs discussions with tenants and provides a better understanding of areas where improvements can be made.June and September 2021:the Company completed the installation of rooftop so

238、lar panels on the Ede and Den Hoorn assets in the Netherlands generating annual income of 96,000 per annum,helping to reduce the carbon footprint of the building and providing clean,renewable on-site energy for the tenants.October 2021:achieved BREEAM-in-Use certification for the warehouses in Den H

239、oorn,Ede and Waddinxveen in the Netherlands.November 2021:the Company was awarded Sector Leader status in the annual GRESB survey with 84/100 points and a maintained 4 out of 5 Green Stars making the Company the strongest performer in the peer group of six listed strategies focusing on European logi

240、stics.December 2021:the Investment Manager finalised its first analysis of the portfolios carbon footprint with its appointed consultant Verco Advisory Services Limited as part of an ambition to create a detailed Net Zero Carbon strategy.ASSET MANAGEMENTFull year 2021:the Company collected 100%of to

241、tal rent for the full calendar year 2021.April 2021:a lease extension was signed,expiring in December 2031,with Maintrans in Flrsheim for 5,337 square metres with an annual starting rent of 315,000.June 2021:saw the completion of the solar panel project in Ede,the Netherlands,reducing the carbon foo

242、tprint of the buildings and generating an annual rent of 15,000.September 2021:witnessed the completion of the solar panel project in Den Hoorn,the Netherlands,reducing the carbon footprint of the building and generating an annual rent of 81,000.November 2021:the Company signed a Letter Of Intent wi

243、th tenant Combilo for the extension of the warehouse in Waddinxveen,the Netherlands,which requires a total investment of 4.9 million and will generate a 5%yield.POST PERIOD END HIGHLIGHTSJanuary 2022:to align with the Managers parent company rebranding,the Companys name was changed to abrdn European

244、 Logistics Income plc.February 2022:the Company issued an additional 34,545,455 new Ordinary shares,raising gross proceeds of 38 million(45.6 million)at the issue price of 110.0 pence per share.26Annual Report 2021Strategic ReportInvestment Managers Review2021 European Logistics-another strong yearN

245、otwithstanding the unprecedented global impact of the pandemic,it is encouraging to witness economies across Europe recovering thanks to the positive impact of the mass vaccination roll-outs.While supply chains were disrupted at the start of the pandemic logistics has proven to be a very resilient a

246、sset class.Indeed,parts of the sector were beneficiaries of European lockdowns as changes in consumer behaviour accelerated,with more and more people buying online.E-commerce is the key driver behind the strong demand for logistics space,and this is further supported by the building up of inventory

247、levels and the near-shoring,or re-siting,of manufacturing facilities away from Asia and back to Europe.Making long distance supply chains more resilient to external shocks is key within industry,as the pandemic and the recent blocking of the Suez Channel have taught us.For many years,the amount of n

248、ew logistics space being developed has not been sufficient to keep up with demand resulting in a supply/demand imbalance and an average vacancy rate sitting at a historically low level of under 4%.The lack of modern warehouse stock and rising construction costs is underpinning rental growth,explaini

249、ng why investors focusing on yield and growing income streams are trying to build their exposure to the sector.Competition for product is fierce.However,abrdns large and established local network and reputation provides a competitive advantage when sourcing the right deals for our clients.abrdn is o

250、ne of Europes largest real estate investors,managing approximately 53 billion of real estate,with 21 billion of logistics assets across 12 countries.Its eight offices across Europe-London,Edinburgh,Frankfurt,Amsterdam,Madrid,Paris,Brussels and Copenhagen-employ a total of 290 abrdn real estate colle

251、agues including portfolio managers,local transaction and asset managers and researchers.Portfolio with urban profile well positioned for future growthIn the four years since inception,the Companys strategy has been clear and focused on the most liquid or in-demand part of the market where growth exp

252、ectations are highest.Urban logistics and mid-sized(mid-box)warehouses are the areas of the market where supply/demand dynamics are the strongest and the potential tenant base the largest.A typical mid-box warehouse sits between 20,000 50,000 square metres in size and for urban logistics,often calle

253、d the final touch in the supply chain,building sizes are generally smaller and located in close proximity to dense population centres.With our focus on long-term,sustainable income,the future-proofing or second life of our warehouses is an important consideration when acquiring new assets.Building s

254、pecifications the Investment Manager considers important,amongst others,are the eaves height,floor-load capacity,number of loading doors,manoeuvrability around the building and increasingly important,a buildings sustainability credentials.Buildingspositioned alongside main transport corridors,close

255、to seaports,infrastructural nodes or in the case of urban logistics,close to large population concentrations,are important criteria in analysing new acquisition opportunities.The big-box warehouse segment,often with building sizes over 100,000 square metres,is not a focus of our investment strategy,

256、as the number of tenants that can occupy that size of space is limited thus reducing liquidity.The Companys focus is Continental Europe,where 75%of the investable European logistics market can be found,providing a deep pool of potential acquisition targets and strong diversification options,limiting

257、single market risk.Astandard lease agreement on the Continent often includes full annual CPI indexation of rents,therebyproviding a strong hedge against inflation.Despite recent upward pressure,our investment strategy continues to benefit from lower financing costs achievable Evert Castelein Fund Ma

258、nager27Annual Report 2021from European banks.Finally,e-commerce penetration is still at an early stage on the Continent with strong forecast growth,creating an attractive investment backdrop.Growth is expected to be strongest in the urban logistics sub sector,especially assets in dominant cities tha

259、t have warehousing supply constraints and demand from different land uses,resulting in higher land costs and ultimately underpinning higher rents.Parcel delivery specialists are continuing to improve their services by reducing delivery times and thereby transportation costs.Operating a logistics war

260、ehouse in close proximity to their ultimate customer base is the best way to reduce their cost base with rental and building costs materially less impactful than transportation costs.Approximately 53%of the Companys portfolio by value comprises urban logistics warehouses with locations such as Barce

261、lona,Madrid,Frankfurt Rhine-Main,Warsawand Den Hoorn located in the Netherlands between the cities of The Hague and Rotterdam.In 2021,nine of the ten assets acquired were urban logistics warehouses,all located in first ring city locations.In December 2021,the Company closed a milestone transaction i

262、n Gavilanes,Madrid,acquiring a portfolio of seven income-producing urban warehouses(“Phases I-III”)with a further warehouse/parking station under development,with a completion date anticipated in Q2 2022(“Phase IV”).The total investment cost was 227.3million with a net initial yield of 3.4%.The larg

263、est tenant within this portfolio is Amazon,accounting for approximately 43%of total rental income with other tenants including the global supermarket retailer Carrefour,operating their first grocery e-commerce platform in Spain,electric vehicle manufacturer Arrival,electronics distributor MCR which

264、boasts Amazon as its main client and Talentum,amarketing and distribution company with 130employees across Spain and Asia.After London and Paris,Madrid is the third largest city in Europe and continues to grow with development land scarce.Thisportfolio is located in Galivanes,a key last-mile logisti

265、cs hub located in the first ring of Madrid,only17kilometres south of Madrid city centre and with a population of approximately 6 million people accessible within a 30minute drive.We are extremely excited to see the completion of PhaseIV of the Madrid portfolio,expected in Q2 2022.Thisasset comprises

266、 a state-of-the-art parcel delivery hub,optimised for last-mile delivery,let to Amazon on a 25 year lease(15 years to first break).The asset includes a multi-level van parking station,offering over 500 parking spaces and electric charging for last-mile delivery vans,significantly increasing the oper

267、ational efficiency of the asset.As is typical of last-mile distribution units,theproperty has been configured for the high volume turnover of inventory with the assets low site cover,multi-deck parking and large canopy with numerous van loading areas maximising the number of parcels which can be loa

268、ded and distributed.We believe this asset represents the next-generation of urban logistics warehousing and we look forward to seeing it become operational and income producing later this quarter.In July 2021,we acquired an urban logistics warehouse located in the first ring of Barcelona for a net p

269、rice of 18.7 million,yielding 3.7%.The asset is let to Mediapost and is highly reversionary,with a net reversionary yield on acquisition of 4.7%.Barcelona is supply constrained by nature due to the presence of the sea and the surrounding mountains making it very hard to replicate this building which

270、 is surrounded by residential units.This undersupply situation is clearly reflected in the low vacancy rates of 2.4%providing further confidence that this asset has strong upside potential.An earlier transaction that the Company concluded in April2021 was the purchase of a brand new,multi-tenanted w

271、arehouse in Lodz,Poland,for a net purchase price of 28.1 million and a net initial yield of 5.6%.Lodz is the third largest city in Poland and centrally located making it an ideal location for national distribution.The warehouse is located on the Bosch-Siemens Campus and alongside a key intermodal ra

272、il terminal for the Silk Road railway connection between Asia and Europe.Low labour costs have created a dominant manufacturing industry in Poland and Lodz,creating an attractive environment for tenants inthis warehouse who work partly as subcontractors for theseindustries.At the time of writing thi

273、s report,the Company is in exclusive talks with regard to the purchase of a warehouse in the Netherlands.The building is located close to the German border in one of the main logistics hubs in the Netherlands.The Manager believes there is good potential for this asset as there is ample land availabl

274、e and the current site coverage of the building is only 16%of the plot against a market standard of around 50%.Having the flexibility to extend and possibly double the size of a building in the future is very attractive and can add value to the portfolio.The Manager is also in exclusivity over a por

275、tfolio of three assets in France which have comparable low site coverage characteristics.It is expected that the purchase of these warehouses located across three different areas in France will complete in the coming weeks.As at the Companys year-end,17 out of the 23warehouses held in the portfolio

276、were newly developed at the point of purchase and have been constructed since 2018.This means specifications are very modern and in line with tenant requirements.The portfolio is well diversified with 23 buildings spread across five different countries.As at 31December2021,New stacking system at Zee

277、wolde,Netherlands28Annual Report 2021the Netherlands represented the largest geographic exposure in the portfolio by value(35%),followed by Spain(30%),Poland(14%),France(11%)and Germany(10%).Taking account of the development of the fourth phase of the recent Madrid deal,these estimated allocation pe

278、rcentages change to the following:Spain(36%),followed by the Netherlands(33%),Poland(12%),France(10%)and Germany(9%).Country allocation Q4 2021(by%of portfolio value)NetherlandsSpainGermanyPolandFrance35%30%14%11%10%Country allocation including 2022 Madrid acquisition(by%of portfolio value)Netherlan

279、dsSpainGermanyPolandFrance33%36%12%10%9%29Annual Report 2021Property Portfolio as at 31 December 2021CountryLocationBuiltWAULT1WAULT2Q4 2021%of Portfolio ValueEstimated%of Portfolio Value on completion of outstanding acquisitionFranceAvignon2018 5.6 9.7 8.07.1 FranceMeung sur Loire2004 0.3 0.3 3.2 2

280、.9 GermanyErlensee2018 5.9 8.2 6.55.8GermanyFlrsheim2015 3.1 6.8 4.0 3.6NetherlandsDen Hoorn2020 8.4 8.4 9.0 8.1NetherlandsEde1999/2005 6.0 6.0 5.14.5NetherlandsOss2019 12.5 12.5 2.8 2.5Netherlandss Heerenberg2009/2011 10.0 10.0 5.1 4.5 NetherlandsWaddinxveen1983/1994/2002/2018 11.9 11.9 7.4 6.6 Net

281、herlandsZeewolde2019 12.5 12.5 5.8 5.2 PolandKrakow2018 3.0 3.0 4.43.9 PolandLodz2020 6.1 6.1 4.6 4.1 PolandWarsaw2019 5.9 5.9 4.6 4.1SpainBarcelona2019 4.5 7.5 2.9 2.6SpainMadrid(Coslada)1999 5.0 8.0 1.9 1.6SpainLeon2019 7.2 7.2 2.7 2.4 SpainMadrid-Gavilanes 1.12019 8.1 8.1 5.6 5.0SpainMadrid-Gavil

282、anes 1.22019 1.6 8.6 3.1 2.8 SpainMadrid-Gavilanes 2.12020 4.6 14.6 2.4 2.2 SpainMadrid-Gavilanes 2.22020 2.5 4.5 2.01.8SpainMadrid-Gavilanes 2.32020-1.9 1.6 SpainMadrid-Gavilanes 32019 5.4 9.4 7.0 6.3TOTAL-as at 31 December 20216.68.0100.089.2SpainMadrid-Gavilanes 42021 15.0 25.0 10.8TOTAL incl.Mad

283、rid Phase IV100.01 Weighted average unexpired lease term including break options.2 Weighted average unexpired lease term excluding break options.30Annual Report 2021A strong tenant base with inflation linked incomeLong-term sustainable income streams to pay quarterly dividends is one of the Managers

284、 key objectives and for the full year 2021 the Company collected 100%of total rents due.With 50 tenants in the portfolio,thereis a diversified tenant base across different sectors.Thecovenant strength of our tenants is monitored on a regular basis using a variety of data sources including Dun&Bradst

285、reet.In terms of exposure by sector,third party logistics providers(“3PLs”)represent the largestsegment with 29%of total portfolio rent.3PLs are thriving,particularly those specialised in parcel deliveries with DHL occupying our assets in Madrid and Warsaw as a good example,representing 4.6%of total

286、 rent.Manufacturers(20%)and companies related to the food industry(19%)complete the top three.Food related companies often have a long history and are of a scale that makes them stable income producers with supermarkets like Biocoop or Carrefour and traders in food such as Combilo all holding up wel

287、l during the pandemic.The retail exposure(14%of total rent),is largely related to Netherlands based drugstore Kruidvat(part of the A.S Watson group)and its e-commerce platform and Decathlon,the global discount sports retailer,whose products have been in high demand since the pandemic.The direct expo

288、sure to e-commerce(3%of total rent)will increase significantly in 2022 once Phase IV in Madrid,let to Amazon,is completed.This will be the largest asset in the portfolio by value.Wholesalecurrently represents 12%of total rent and is expected to reduce in 2022 when the administrator responsible for O

289、ffice Depot,the tenant in Meung-sur-Loire,is due to vacate the warehouse.Pre-COVID,Office Depots plan was to consolidate its French business within this building in combination with a large extension as the low site coverage provides for this option,which furthers its appeal to a new tenant.Our loca

290、l French asset management team,alongside local agents are conducting site inspections with prospective tenants,with positive initial feedback.All the outstanding rent for 2021 has been paid for this asset.A standard lease agreement on the Continent typically has annual CPI indexation of rents which

291、is not the standard in the UK.Having this annual inflation protection is more important than ever with rising energy prices and supply chain issues driving inflation up to 5%in 2021 in the Eurozone.70%of the portfolios current income has full CPI or ILAT3 indexation,22%has a cap at a level between 2

292、-3%,7%is German threshold indexation and 1%other.This2021 inflation as it flows through will help to grow our 2022 income on our existing leases which have an average length of 6.6 years including break options and 8.0years excluding breaks.Strong rent collection and a low cost loan portfolio with g

293、ood covenant headroom underpins the Companys stated distribution policy.The loan portfolio is still young with asset level loan facilities effected immediately after full deployment of capital from Q1 2019 onwards.Stresstesting on the existing financial covenants such as Interest Cover Ratios and Lo

294、an-To-Value(LTV)indicates a good level of headroom,even more so now that property values have increased strongly and all expected rents paid.In order to diversify risk,the loan facilities have also been cross-collateralised with groups of single-tenanted buildings or have diversified risk thanks to

295、multi-tenanted leasing structures.Exposure by sector(%of total rent)as at 31 December 2021Transport/LogisticsManufacturingWholesaleFoodRetailOtherE-commerce29%22%18%12%14%3%2%Indexation of rental income(%of total rent)as at 31 December 2021CPI/ILATCPI/ILAT with a capOtherThreshold indexation70%22%1%

296、7%3 French indexation which is a blend between CPI,GDP and construction cost index.31Annual Report 2021Lease expiry profile(%of total rent)0%5%10%15%20%204120342033203220312030202920282027202620252024202320227%7%5%6%0%0%4%6%6%10%8%8%16%17%Top 10 tenants based on current rents TenantPropertyContracte

297、d rent(000 p.a.)Contracted rent(%)WAULT incl.breaks(years)WAULT excl.breaks(years)1van der HelmDen Hoorn 2,922 10%8.4 8.4 2BiocoopAvignon(Noves)2,331 8%5.6 8.6 3CombiloWaddinxveen 1,879 6%11.9 11.9 4VSHZeewolde 1,585 5%12.5 12.5 5KruidvatEde 1,518 5%6.6 6.6 6JCLs Heerenberg 1,485 5%10.0 10.0 7Office

298、 DepotMeung sur Loire 1,472 5%0.3 0.3 8DHLMadrid,Warsaw 1,352 5%6.6 7.7 9TalentumMadrid 1,322 4%8.1 8.1 10DecathlonLeon 1,061 4%7.2 7.2 Subtotal 16,92757%7.8 8.3 Other tenants 12,518 43%6.1 7.5 Portfolio as at 31 December 2021 29,445 100%6.6 8.0 32Annual Report 2021Loan portfolioCountryPropertyBankE

299、xisting loan(million)End date LoanDuration in YearsInterest (incl margin)GermanyErlenseeDZ Hyp17.8January 2029101.62%GermanyFlorsheimDZ Hyp12.4January 202671.54%FranceAvignon+Meung sur LoireBayerbLB33.0February 202671.57%NetherlandsEde+Oss+WaddinxveenBerlin Hyp44.2June 202561.37%Netherlandss Heerenb

300、ergBerlin Hyp11.0June 202561.13%NetherlandsDen Hoorn+ZeewoldeBerlin Hyp43.2January 202881.40%Total 161.67.261.43%2021 Performance double digit returns for second year runningFor the second year in a row,we are very pleased to have delivered a double digit NAV total return for shareholders.The NAV to

301、tal return for 2021 was 12.4%(in euro terms)which was also equal to the 2021 total shareholder return.Assets held at the end of 2020 increased in value by 9.1%during 2021,with additional valuation uplifts for the Barcelona and Lodz assets acquired during 2021.Valuation gains were predominantly drive

302、n by yield compression.Growth within the logistics sector is clearly reflected in increasing portfolio valuations.The two solar projects in Den Hoorn and Ede in the Netherlands added c.1 million to portfolio value.In terms of future growth,the portfolio has been positioned to focus on mid-boxes and

303、urban logistics,the part of the market which the Investment Manager believes has good potential,especially with respect to rents.There are several options within the portfolio where value may be added and where a tenant may require additional space.A good example is the small extension project alrea

304、dy underway in Waddinxveen in the Netherlands on an adjacent piece of land owned by the tenant which is to be purchased at an attractive yield.Continent benefiting from low cost debtCurrent gearing is 25%of gross asset value,materiallybelow the long-term target of 35%.TheCompany has arranged asset l

305、evel fixed rate bank debt gearing in those markets where all-in loan costs are the lowest,such as France,Germany and the Netherlands with German banks particularly active in this space.The average all-in cost of the loan portfolio is currently 1.4%which had an average loan duration of 7.3 years,of w

306、hich 4.7 years remain.The most recent addition to the loan portfolio was a 17 million top-up on the existing Dutch loan portfolio at an all-in interest rate of 1.3%and a remaining loan duration of 4.6 years.During the year,the Company also revised its revolving credit facility agreement with Investe

307、c Bank,increasing the facilitys capacity from 40 million to 70 million and providing further flexibility for the acquisition of new properties or for the implementation of asset management initiatives.ESG:sector leading GRESB Rating4In 2015,the Paris climate agreement was signed stating an ambition

308、to keep global warming below 2 degrees by the year 2050.Reducing carbon emissions is a crucial part of this target and has led to an increased awareness of ESG across the market.ESG is strongly embedded in the Investment Managers investment process and driven by its dedicated ESG team.As an investme

309、nt management house,abrdn is aiming for carbon neutrality by 2050.The Company now measures the carbon footprint of its property portfolio and is taking advice on the required steps for reducing this.Our starting point is strong as the portfolio is modern,with the majority of assets constructed after

310、 2018 resulting in good energy efficiency across the portfolio.LED lighting and rooftop solar panels further enhance the energy efficiency of the portfolio.In 2021,twosolar panel projects were completed with panels installed in Den Hoorn and Ede,which added c.1 million to portfolio value,bringing th

311、e total number of buildings with solar panels to nine.This is an efficient way to reduce carbon emissions whilst helping retain tenants in our buildings as many of these tenants have comparable sustainability ambitions and seek buildings with strong ESG credentials.Staying close to,and liaising with

312、,our tenants is important to help us understand what is expected from abrdn as a manager and one of the reasons for implementing our annual tenant satisfaction survey.4 Global Real Estate Sustainability Benchmark.33Annual Report 2021A key objective is to have a portfolio of buildings that are future

313、 fit and attractive to current and potential tenants.One of the milestones of the year was the result from the 2021 GRESB survey.This saw the Company being awarded Sector Leader status and placed first in the peer group of six listed funds with strategies focusing on pan-European logistics.A score o

314、f 84 points out of 100 resulted in the Company maintaining 4 out 5 Green Stars and further improving on the 79/100 and 63/100 ratings awarded in the two preceding years.OutlookThe fundamentals supporting the logistics real estate sector continue to strengthen.Structuralgrowth in e-commerce penetrati

315、on and the resulting increase in demand for logistics space this creates continues to support and drive valuation growth.This is further supported as businesses of all shapes and sizes target larger inventories or reshoring their manufacturing activities back to Europe in order to make their supply

316、chains more resilient.This comes after the COVID-19 pandemic and the Suez canal blockage highlighted how easily supply chains,which often operate to a just in time model,can be disrupted.The structural growth we have witnessed in the sector has led to record low vacancy rates and this is likely to c

317、ontinue with increasing demand and limited speculative development,particularly as increasing regulation and land scarcity limits scope to build.European economies are cyclical and there are potential headwinds arising from the conflict in Ukraine increasing inflation.However,the pandemic highlighte

318、d the critical nature of logistics real estate which is reflected in our high rent collection statistics and double-digit total return performance over the last two years.The number of investors seeking to increase their exposure to the sector continues unabated,attracted by the Continents inflation

319、 protecting,indexed-linked leases and strong rental growth prospects due to the favourable supply/demand dynamics and ever rising construction costs.Having local teams on the ground with in-depth knowledge provides us with a significant advantage in this extremely competitive sector.We believe that

320、the sector will continue to out-perform,not only in 2022 but beyond.Our focus over the short term is completing the planned acquisitions which together with the ongoing asset management initiatives,will support further capital and income growth,underpinning an attractive dividend.Evert CasteleinFund

321、 Manager,abrdn21 April 202234Annual Report 2021PortfolioProperty Portfolio143256981718222119207101116151214 13Property Portfolio as at 31 December 2021PropertyTenurePrincipal Tenant2021 valuation(m)1France,Avignon(Noves)FreeholdBiocoop53.12France,Meung sur LoireFreeholdOffice Depot administrator21.4

322、3Germany,ErlenseeFreeholdBergler43.14Germany,FlrsheimFreeholdErnst Schmitz26.95Poland,KrakowFreeholdLynka29.17Poland,LodzFreeholdCompal30.46Poland,WarsawFreeholdDHL30.58Spain,BarcelonaFreeholdMediapost19.310Spain,Madrid(Coslada)FreeholdDHL12.49Spain,LeonFreeholdDecathlon18.011Spain,Madrid 1.1 Freeho

323、ldTalentum37.412Spain,Madrid 1.2FreeholdAmazon20.613Spain,Madrid 2.1 FreeholdCarrefour16.314Spain,Madrid 2.2 FreeholdMCR13.315Spain,Madrid 2.3 FreeholdVacant(with rental guarantee)12.416Spain,Madrid 3(2 buildings)FreeholdArrival47.022the Netherlands,Den HoornLeaseholdVan der Helm60.317the Netherland

324、s,EdeFreeholdAS Watson(Kruidvat)33.918the Netherlands,OssFreeholdOrangeworks18.519the Netherlands,s HeerenbergFreeholdJCL Logistics33.920the Netherlands,WaddinxveenFreeholdCombilo International49.521the Netherlands,ZeewoldeFreeholdVSH Fittings38.7Market Value as at 31 December 2021666.0Less Lease In

325、centives(5.0)Total Market Value Less Lease Incentive Debtor661.0Add IFRS 16 Leasehold Asset22.9Total per Balance Sheet 683.935Annual Report 2021FRANCE AVIGNON.Avignon(92,000 inhabitants)is located in the heart of the Provence close to larger cities Montpellier(280,000)and Marseille(978,000).The Prov

326、ence is the#1 region for the production of fruit and vegetables in France explaining why tenant Biocoop(organic food retailer)and other supermarkets(Carrefour,Aldi,Systeme U)and food specialists have located distribution centres here.New sustainable warehouse with modern specifications and solar pan

327、els.Property consists of 4 cells,2 of which are treated as cold storage (1/3 of floor space)SPA signed/closingJul 18/Oct 18On-/off-marketOff-marketYear of construction2018Net leasable area28,469 sqmMain tenantsBiocoop and Bargreen(solar panels)Indexation100%ILAT(annual)WAULT(incl/excl breaks)5.6/9.7

328、 yearsProperty specificationsFree height of 10.5m,floor load capacity of 5 t/sqm,24 loading doors,sprinklers,HQE Excellent certificate,11%office space,LED,solar panelsMEUNG SUR LOIRE.The property is located in the heart of France 27km southwest of Orleans(115,000 inhabitants).Due to its excellent lo

329、cation the unit serves Paris,Central and the South of France for both national and international distribution.Established and growing logistics location,for DHL,ID Logistics,XPO and Rexel.Office Depot,specialising in the office supplies market,is in the process of vacating but has paid rent until Q1

330、 2022.Brokers have been instructed and several site inspections have taken place.Asset with modern specifications and low site cover of 29%provides space for future expansionSPA signed/closingNov 18/Feb 19On-/off-marketOn-marketYear of construction2004Net leasable area30,180 sqmMain tenantsOffice De

331、pot(vacating)Indexation100%ILAT(annual)WAULT(incl/excl breaks)0.3/0.3 years(tenant vacating with rents paid until Q1 2022)Property specificationsFree height of 12-17m,28 loading doors,floor load capacity of 5-7 t/sqm,sprinklers,site cover of 29%,6%office space,LED(partial)36Annual Report 2021GERMANY

332、ERLENSEE.Two new logistics buildings on a new logistics hub to the West of the Frankfurt Rhine-Main region(6m inhabitants)with other companies like Dachser and Wilhelm Brandenburg Group located close by.Acquired via forward funding.The project comprises two modern multi-let new logistics buildings o

333、f 10,936 and 15,764 sqm.Limited logistics supply in Rhine-Main region creating space for strong future rental growthSPA signed/closingJun 18/Feb 19On-/off-marketOff-marketYear of construction2018Net leasable area26,700 sqmMain tenantsBergler,DS SmithIndexationThreshold indexations with combination of 5%/80%and 10%/80%WAULT(incl/excl breaks)5.9/8.2 yearsProperty specificationsFree height of 10.5m,5