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magazineIncome letdown from Aberdeen Standard European Logistics
The income yield target of Aberdeen Standard European Logistics Income (ASLI) has been trimmed just 15 months after its launch.
Initially pitched at 5.5% based on its 100p IPO price in December 2017, the investment trust has cut that target to 5% after talks with its largest shareholders, including the East Riding Pension fund.
Yield compression from a re-pricing of European property assets has been blamed, a factor that has seen the share price fall 17% in six months.
This is surprising given the ballooning demand for the sort of modern warehouse assets that the trust invests in given thriving online commerce that requires complex delivery logistics.
Aberdeen Standard European Logistics Income currently has a portfolio of 10 assets with 26 tenants spread across mainland Europe.
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