REG - Urban Logistics REIT - Lettings Update

Urban Logistics ReitAnnouncement

13/02/2025 07:00

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RNS Number : 9244W  Urban Logistics REIT PLC  13 February 2025

13 February 2025

Urban Logistics REIT plc

("Urban Logistics" or the "Company")

Lettings Update

New leasing grows rental income

Urban Logistics (LON: SHED), the only London listed REIT offering a focused
exposure to single-let, last mile/last touch logistics real estate, has
completed new lettings over five units, totalling 301,000 square feet of space
and £3.0m per annum headline rent, since 30 September 2024.

Two leases were over assets acquired in September 2024 for a total new
headline rent of £1.3m per annum and a WAULT of 11 years. These leases
generated a 7% uplift on target rental levels on acquisition.

Three leases were over previously tenanted assets, for a total headline rental
income of £1.7m per annum and a WAULT of 18 years. This asset management
resulted in a like-for-like rental uplift of +46%, and ahead of external
valuer's ERV.

This letting activity reduces portfolio vacancy from 8.1% as at 30 September
2024 to 6.2%, on a proforma basis, with continued engagement over further
leasing ongoing.

Richard Moffitt, Investment Adviser CEO, commented:

"Underlying demand for the Company's last touch logistics assets remains
strong, as evidenced by the very positive like-for-like growth figures seen in
this leasing activity, as well as the premium to ERV that these properties are
commanding."

"These transactions also evidence the high quality of the assets acquired at
the end of 2024, and our ability to add value to them. Rapidly securing new
tenants and adding significantly to annual rental income will drive immediate
capital growth."

These lease events include:

Trax Park, Doncaster:

·    A 130,677 sq. ft. unit in Doncaster was let to Unipart Rail Ltd, a
5A2 covenant.

·    Contracted rent of £1.0m and a term of 10 years.

·    The asset was acquired in September 2024, and subject to a rent
guarantee, and this letting reflects rental level 10% above the rent guarantee
level.

·    The asset was refurbished, including ESG improvements and the
installation of significant solar generation capacity. An improvement in EPC
is anticipated at the next rating event.

Hedge End, Southampton:

·    A 113,071 sq. ft. unit in Southampton was let to A.G. Parfett &
Sons Limited, a 5A2 covenant.

·    Contracted rent of £1.3m and a term of 20 years.

·    The asset was vacated by the previous tenant and relet within the
same financial year at a rent ahead of both previous passing rent and external
valuer's ERV.

·    The asset was refurbished including significant ESG improvements. The
EPC has been improved in this process from a C to a B.

- Ends -

 

 

 Urban Logistics REIT plc

 Richard Moffitt                                         +44 (0)20 7591 1600

 Burson Buchanan                                         +44 (0)20 7466 5000

 Helen Tarbet                                            +44 (0) 7872 604453

 Simon Compton                                           +44 (0) 7979 497324

 Abigail Gilchrist                                       +44 (0) 7717 480063

 Panmure Liberum                                         +44 (0)20 7886 2500

 David Watkins / Emma Earl / Dougie McLeod

 Singer Capital Markets - Joint Broker                   +44 (0)20 7496 3000

 James Maxwell / Alaina Wong / Oliver Platts (Banking)

 Alan Geeves / James Waterlow / Sam Greatrex (Markets)

 Berenberg - Joint Broker                                +44 (0)20 3207 7800

 Carl Gough / Harry Nicholas / Patrick Dolaghan

 G10 Capital Limited (part of IQ EQ) - AIFM              +44 (0)20 397 5450

 Maria Baldwin

 

About Urban Logistics REIT

Urban Logistics REIT plc (LON: SHED) is a FTSE 250 property investment
company. The Company is the only London-listed REIT to focus on specialist
last mile / last touch logistics assets, with a tenant base which delivers
essential goods within the UK. The Company's strategy is to invest in
mid-sized logistics properties with the objective of generating attractive
dividends and capital returns through active asset management.

Urban Logistics' investment adviser team, led by Richard Moffitt, has
significant experience in investing in the logistics market within the broader
real estate market. The team's ability to source vital and strategically
located mid-sized single let properties, with high-quality tenants, off-market
at favourable terms, creates considerable value for shareholders. Tenants
include Amazon, XPO, DHL, Hermes, DPD, Boots, Unipart (for NHS), Royal Mail
and J Sainsbury Plc.

Buying well and pursuing additional value enhancing asset management
initiatives has driven the Company's growth, enabling Urban Logistics to grow
from a £10m market cap company at IPO in April 2016 to a FTSE 250 constituent
with a portfolio valued at over £1.1bn.

 

 

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