Logicor announces results for six months ended 30 June 2020

Logicor announces strong financial results for the six months ended 30 June 2020 despite economic uncertainty caused by the COVID-19 pandemic.

• Net Operating Income (NOI): €319 million driven by 1.3% LFL⁽¹⁾ period-on-period growth in Net Rental Income delivered through our strategy of capturing rental growth through active asset management.
• Cash Collection: Q2 cash rent collection rate was 92%, with an additional 6% of agreed rent relief primarily in the form of deferred payments.
• Gross Asset Value: €12.9 billion, a valuation increase of €47 million since 31 December 2019 on a constant currency basis.
• EPRA Occupancy: 92.7%, a decrease of 130bps due to a small number of scheduled move outs, with the volume of signed leases remaining in line with the same period in 2019.
• LTV: Stable at 48.8%.

⁽¹⁾ At constant currencies excluding the loss of income from disposals, the growth from development activity, and impacts of rent free straight-lining and provisioning

Rent Collection

Despite widespread economic uncertainty, cash collection for second quarter rents remained robust, reflecting our strong customer relationships and diversified tenant base. Rent relief amounting to 6% of rents for the second quarter of 2020 has been agreed to help certain customers who have been severely impacted by COVID-19, with the majority in the form of deferred payments.

Development and Expansion

We continued to execute on our logistics property development and expansion programme with the successful completion of two projects in Germany and one in Finland. Eleven further projects are currently underway, with all projects fully pre-leased to customers prior to commencement.

Capital Structure

In the first half of 2020, we completed the refinancing of our historic secured debt facilities with primarily unsecured, fixed-rate debt. In January, we issued £300 million of 10-year unsecured bonds with a 2.75% coupon. Proceeds were used to repay a portion of the outstanding balance under our RCF as well as the remainder of our historic secured bank debt. In July, after the interim balance sheet date, we issued a further €500 million of 6-year unsecured bonds with a 1.50% coupon. Proceeds from this issuance were partially used to repurchase, at par value, €159 million of our 2021 notes through a tender offer, as well as to fully repay the outstanding balance under our RCF.

Environmental, Social and Governance ("ESG")

Reaffirming our strong commitment to sustainability, we have published our first dedicated ESG report. The report, entitled Acting responsibly for a sustainable future, provides detail on our five-year strategy for continued positive change and highlights actions that are already underway.