abrdn European Logistics Income | Gearing

The Company employs gearing with the objective of improving shareholder returns. Debt is typically secured at the asset level and potentially at the Company level with or without a charge over some or all of the Company’s assets, depending on the optimal structure for the Company and having consideration to key metrics including lender diversity, cost of debt, debt type and maturity profiles.

The Board continues to keep the level of borrowings under review with the aggregate borrowings always subject to the absolute maximum set at 50% of gross assets, calculated at the time of drawdown for a property purchase. Despite a target gearing level of 35%, the actual level of gearing may fluctuate over the Company’s life as and when new assets are acquired or whilst short term asset management initiatives are being undertaken. Where borrowings are secured against a group of assets, such group of assets shall not exceed 25% of Gross Assets in order to ensure that investment risk remains suitably spread.