abrdn European Logistics Income Nears Wind-Down Completion with £160.75M Returned to Shareholders in 2025

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.