The Abrdn European Logistics Income trust board has opted to not declare a dividend for its fourth quarter of the fiscal year in response to its strategic review.
The board explained the forgoing of a dividend payment allows the trust to maintain “maximum flexibility… to advance any particular proposal” but said it plans to begin dividend payments again “in line with the company’s standard dividend timetable” subject to the review outcome.
See also: Abrdn confirms 500 redundancies in cost-cutting ‘transformation plan’ amid £12.4bn outflows
“Since 27 November 2023, the company has received a number of broad ranging preliminary, indicative non-binding proposals. While there can be no certainty at this stage that the final terms of any proposal will prove to be sufficiently attractive to merit a board recommendation to the company’s shareholders, the board is encouraged by the progress made to date and the company’s advisers are actively engaging with a select number of parties to satisfy their due diligence requirements,” the release said.
In December, the trust paid out a dividend of 1.23, following a payment of 1.22 in September, 1.23 in June, and 1.20 last March. This year’s fourth quarter payment was anticipated to be announced in February and released in March.
Over the past five years, the share price total return for the trust has dropped 20.1%, and 41.3% in the past three years, according to the AIC. Across the Property-Europe AIC sector, share price has dropped 31.1% and 40.3% in those time periods.
On 24 January, Abrdn confirmed in a trading statement it would make near 500 employees redundant and targeting a cost reduction of £150m by end of 2025. The investment arm of the business suffered £12.5bn in outflows during H2 last year.
