RCS - Urban Logistics REIT - QD Newswire - HY results analysis

Urban Logistics Reit

07/11/2024 07:15

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RNS Number : 2431L  Urban Logistics REIT PLC  07 November 2024

SHED QD Newswire - HY results analysis from QuotedData

 

7 November 2024

 

•             Urban Logistics REIT (SHED) has reported half year
results for the six months to 30 September 2024 this   morning. EPRA net
tangible assets (NTA) was down 1.4% to 158.05p over the period, primarily due
to costs   associated with asset acquisitions. NAV total return for the
period was 1.3%.

•            The value of the company's portfolio of mid-box urban
logistics assets increased to £1.14bn (from £1.10bn at 31 March) due to
acquisitions and a 0.2% like-for-like valuation uplift over the six months.
The portfolio ERV grew 3.5% in the period, while the yield moved out slightly
to 6.4% (from 6.3%).

•             Management has taken strides to achieve full coverage
of its 7.6p annual dividend, with asset management initiatives, portfolio
recycling, and debt refinancing all feeding through to a 3.5% uplift in
adjusted earnings per share in the six months to 3.57p (annualised 7.14p).

•             Chairman Nigel Rich said: "We firmly believe that the
best method for delivering value for our shareholders is through the active
management of the portfolio, the delivery of earnings accretive acquisitions
and the demonstration of the portfolio value through sales where asset
management has been completed. This will lead to a growth in earnings,
allowing us to fully cover and, in due course, grow our dividend, and support
valuation growth in our portfolio. It is these activities, combined with our
continued belief in the single let logistics sector and strategy, that we
believe will help reduce the discount at which the shares currently trade at,
and grow shareholder value."

 

QuotedData's view: The manager has made encouraging steps in delivering on its
priority to grow earnings and achieve a fully covered dividend. Capturing
rental growth within its portfolio, where it attained a 21% uplift in rents on
lease events in the period, is the manager's bread-and-butter. It is also
undertaking an asset recycling programme, under which it acquired four
properties in the six months, utilising capital released from the refinancing
of a portion of its debt.

Further portfolio recycling can be expected, and post period end the company
sold a 'core' asset for £7.7m at a 4.65% net initial yield and bought a
vacant asset in Dunstable for £3.6m, where the manager completed a letting
between exchange of completion resulting in a net initial yield of 7.1%. If
this blueprint can be replicated, the positive impact on earnings will go a
long way to achieving a covered dividend.

 

 

Click here for the full report
(https://quoteddata.com/research/urban-logistics-reit-half-year-results-analysis/)

 

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NB: Marten & Co was paid to produce this note on Urban Logistics REIT Plc,
and it is for information purposes only. It is not intended to encourage the
reader to deal in the security or securities mentioned in this report. Please
read the important information at the back of this note. QuotedData is a
trading name of Marten & Co Limited which is authorised and regulated by
the Financial Conduct Authority. Marten & Co is not permitted to provide
investment advice to individual investors categorised as Retail Clients under
the rules of the Financial Conduct Authority.

 

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