abrdn European Logistics Income 2025: wind-down almost done, cash handed back
abrdn European Logistics Income plc (ASLI) has pushed hard on its shareholder-approved wind-down. By year end, 25 of the original 27 warehouses had been sold, with aggregate gross proceeds of over €507 million before associated debt. The pace of capital return was punchy too: £160.75 million was paid back via four B share redemptions in 2025 – equal to 39.0 pence per Ordinary Share.
The Board says the programme should complete broadly in line with original value expectations. One of the two remaining assets is under offer with completion expected in early Q2 2026; the final asset is being marketed, although timing may be influenced by wider geopolitical jitters.
Wind-down progress: 25 of 27 assets sold, final disposals in sight
ASLI sold across Germany, Spain, the Netherlands, Poland and France in 2025, with notable deals including:
- Two German multi-let warehouses (Flörsheim and Erlensee) for approximately €66.5 million.
- Madrid Gavilanes portfolio and two further Spanish assets for approximately €176 million (net, corporate sale).
- Three Dutch warehouses for approximately €62 million and Zeewolde for approximately €27.2 million.
- Three Polish estates (Krakow, Lodz, Warsaw) for approximately €84 million.
- Two French warehouses to Dachser France for approximately €15.6 million.
Post year end, three more sales closed:
- Gevrey, Dijon for approximately €7.9 million.
- Waddinxveen (NL) for €35 million, 4.5% ahead of the independent Q3 2025 valuation.
- Noves, near Avignon (FR) for €47.5 million.
Leasing work helped smooth the runway: portfolio voids were cut to 0% by 31 December 2025, supporting liquidity and pricing.
Cash returns: B share scheme delivered 39p in 2025
The B share mechanism – a capital return tool that issues and immediately redeems special shares – was used four times in 2025, paying 4.0p, 12.0p, 13.0p and 10.0p per share on 20 March, 13 August, 30 September and 30 December respectively. In total, £160.75 million went back to investors during the year.
At the upcoming AGM (1 June 2026), the Board is asking shareholders to approve the cancellation of the Capital Redemption Reserve (Resolution 11). That would create an additional distributable reserve and keep the capital return spigot open as the last sales complete. If you want more cash out faster, this one matters.
Results snapshot: NAV, returns and the discount
IFRS NAV per share at 31 December 2025 was 33.5 euro cents (GBp: 29.3p), with a “liquidation NAV” (reflecting estimated realisation costs) of 32.6 euro cents (GBp: 28.4p). The Board also flags a potential further latent CGT of up to 1.2p per share depending on how the final disposals are structured.
- NAV total return (EUR) for 2025: -11.2%.
- Share price total return (GBP): +24.2% – helped by those 39p capital returns, even though the year-end share price printed 26.6p (down from 58.8p).
- Discount to NAV narrowed to 9.2% (from 21.9%).
On the income statement, ASLI reported a total loss of €33.3 million versus a €3.0 million profit in 2024, reflecting disposal losses and valuation movements as assets were sold.
Debt and gearing: risk dialled down again
Gearing (a measure of debt to asset value) fell to 27.6% from 37.0%. Year-end fixed-rate debt totalled €58.2 million at an average 2.51% all-in cost. The €34.3 million Berlin Hyp facility, extended to June 2026 at a floating 3.30%, was repaid in full after the Waddinxveen sale in March 2026. The only remaining fixed facility is secured against Den Hoorn, €23.9 million at 1.38%, maturing 14 January 2028. Cash at year end was €47.8 million.
Banking covenants remained compliant and the maximum permitted loan-to-value is 50% under the prospectus. The steady de-leveraging materially reduces endgame risk.
Dividends and income profile during wind-down
ASLI paid aggregate distributions of 3.06 euro cents per share in 2025 (sterling equivalent 2.63p), split across three interim payments. As the portfolio shrinks, income naturally declines and operating costs are increasingly met from capital – you’ll see that in the NAV as it’s incurred. Expect distributions to be ad hoc and focused on preserving investment trust status and returning sale proceeds efficiently.
Shareholder dynamics: DL Invest challenge defeated
On 20 February 2026, shareholders voted against proposals from the largest shareholder, DL Invest Group ISR SARL (c.17.9%), to reverse the wind-down and change the manager. Excluding DL Invest’s own votes, only a further 0.9% supported the resolutions. The Board continues to engage but will only consider proposals that clearly benefit all shareholders and do not delay the wind-down.
What could move the shares next
- Final disposals – one asset under offer for early Q2 2026; the remaining asset sale process continues. Proceeds and timing are the two needles to watch.
- Further B share returns – Resolution 11 at the AGM would facilitate additional capital distributions as cash lands.
- Macro and geopolitics – the Board highlights heightened uncertainty, including the situation involving Iran, which could elongate transaction timetables for larger deals.
- Latent CGT – up to 1.2p per share could crystallise depending on disposal structures and pricing.
Josh’s take: why this update matters
This is the business end of a wind-down. The heavy lifting is largely done, gearing is low, and the discount has tightened as execution risk falls. The 2025 capital return of 39p per share shows the model working – and the share price total return of 24.2% proves that “on-screen price down” doesn’t tell the whole story when lump-sum returns are in play.
What’s left is about tidying up the last two sales, keeping costs lean, and turning cash into more B share redemptions. The key near-term swing factors are timing and tax. A clean exit on the final assets, plus shareholder approval to unlock distributable reserves at the AGM, should pave the way for further paybacks. Conversely, any slippage driven by market nerves could push proceeds into H2 2026, as the Board itself flags.
Key numbers from the RNS
| Assets sold to date | 25 of 27 |
| Aggregate gross sale proceeds | Over €507 million (before associated debt) |
| Capital returned in 2025 | £160.75 million (39.0p per share via B shares) |
| IFRS NAV (31 Dec 2025) | €138.26 million |
| NAV per share | 33.5 euro cents (29.3p) |
| Liquidation NAV per share | 32.6 euro cents (28.4p) |
| NAV total return (EUR) | (11.2%) |
| Share price total return (GBP) | 24.2% |
| Discount to NAV | 9.2% |
| Gearing | 27.6% (down from 37.0%) |
| Debt at year end | €58.2 million at 2.51% avg all-in |
| Debt post Waddinxveen sale | Only Den Hoorn €23.9 million at 1.38%, matures Jan 2028 |
| Cash (31 Dec 2025) | €47.8 million |
| 2025 distributions (dividends) | 3.06 euro cents (2.63p) per share |
| Ongoing charges ratio | 1.8% (ex property costs); 3.6% (incl property costs) |
Bottom line
ASLI is nearing the finish line. If the final sales clear broadly to plan, shareholders should see more capital returned, with limited balance sheet risk left in the structure. Keep an eye on the AGM vote to cancel the Capital Redemption Reserve and on updates to the last disposal timetable. The direction of travel remains clear: sell, de-gear, distribute.
