REG - Urban Logistics REIT - Q4 Performance Update

Urban Logistics ReitAnnouncement

17/04/2024 07:01

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RNS Number : 8720K  Urban Logistics REIT PLC  17 April 2024

17 April 2024

Urban Logistics REIT plc

("Urban Logistics" or the "Company")

Q4 Performance Update

Continued progress marked by significant like-for-like rental increases and a
number of new lettings

Urban Logistics (LON: SHED), the only London listed REIT offering a focused
exposure to single-let, last mile/last touch logistics real estate, announces
a strong portfolio performance for the period from 1 January 2024 to 31 March
2024, with continued progress in the strategy of providing investors with
sustainable high quality earnings and capital appreciation. Urban Logistics
has a strong market position in its focus area, having built a c.£1bn
portfolio of strategically located assets.

 

Urban Logistics will hold a Site Visit and Capital Markets Presentation on 15
May 2024. Analysts and institutional investors will have the opportunity to
visit two of the Company's assets in Peterborough and attend a presentation on
SHED's strategy in action including leasing activity, active asset management,
strong tenant base, robust balance sheet and the attractive cashflow
characteristics of the assets. For further details and to register your
interest please contact urbanlogistics@buchanan.uk.com
(mailto:urbanlogistics@buchanan.uk.com)

 

Highlights:

·    Average like-for-like rental uplift of 23% across all lease events

·    Three new lettings and 3 rent reviews in the period, covering 374,000
sq. ft. of space, including one vacant asset

·    £1.3m total new annualised rental income equating to 0.3 pence of
rental income per share

o  £1.1m new rental income generated from new lettings, with a WAULT of 11.9
years

o  £0.2m new rental income generated from rent reviews

·    Post period end, disposal of an asset in Bedford for £3.8m, at a
1.9% premium to net book value, at a 5.4% NIY, with proceeds used to pay down
floating rate debt

·    Occupancy rate at 31 March 2024 of 94.2%, compared with an occupancy
rate of 93.2% at 31 December 2023, with further leases under offer post period
end.

 

Richard Moffitt, of Urban Logistics, commented:

"We have seen increased occupational activity in the latter stages of the
financial year, with a significant rise in like for like rental rates.  This
provides evidence that valuations are stabilising and rents improving in our
sector, as tenants continue to localise their distribution networks to be
closer to their end customers, and demand for our mid-size, single-let assets
continues to increase.

"The optimism in our sub-sector supports our confidence for the coming year,
during which we will see the benefit of a full year's rental income from
recent leasing activities flowing through to higher earnings. Our increased
occupancy rate is welcome, and the majority of our remaining vacancy is made
up of two assets, for one of which a new lease is at an advanced stage of
negotiation.

"Going forward, we remain focussed on our strategy: delivering earnings and
capital growth from targeted real estate acquisitions, active asset
management, supported by a strong balance sheet, a low LTV, and strong
relationships with banking partners.

"We look forward to presenting our plans and activities in greater detail at
our Capital Markets Event in May. This will give us the opportunity to set out
the strong investment case for single-let, last mile/ last touch mid-box
assets across tenant appeal, their role in the build out of logistics
infrastructure in the UK, the positive long term cash flow characteristics of
our assets and our strong total return proposition."

 

Notable lease events in the period:

·    A new lease has been signed at Interlink way in Bardon with Elliott
Baxter and Company Ltd, over a 73,791 sq. ft. warehouse. The new lease ensured
the property was vacant for only 2 months on expiry of the existing lease,
with a 19% increase in like for like rental income

·    An agreement for lease has been signed with Corndell Quality
Furniture Ltd, which is expected to complete in May 2024, over a vacant
121,078 sq. ft. warehouse in Andover, generating £0.9m in additional rental
income

·    A rent review has been settled with H&K Distribution Ltd, at a
128,460 sq. ft. unit in Swift Park, Rugby, providing a 28% increase in like
for like in rental income

 

Disposal

Elms Industrial Estate, Bedford

·    Acquired in April 2016 for £1.25m

·    24,462 sq. ft. industrial warehouse facility let to UK Power Networks
("UKPN")

·    Comprehensive refurbishment completed in 2022, including PV cells on
the roof and improving EPC from an E to an A

·    Significant asset management including a new lease to UKPN

·    Sold post period end for £3.83m, representing a 40% profit on cost,
after accounting for refurbishment costs, and a 1.9% premium to net book value
(as at 30 September 2023)

·    Receipts used to pay down the small amount of floating rate debt
outstanding

The Company expects to report its annual results for the year ended 31 March
2024 on Thursday, 20 June 2024.

- Ends -

 

 Urban Logistics REIT plc

 Richard Moffitt                             +44 (0)20 7591 1600

 Buchanan                                    +44 (0)20 7466 5000

 Helen Tarbet                                +44 (0) 7872 604453

 Simon Compton                               +44 (0) 7979 497324

 George Beale                                +44 (0) 7450 295099

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

 Graham Fetcher

 

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 offering exposure to the
specialist last mile / last touch logistics sector, with a single-let 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 and
asset recycling to generate significant valuation uplift.

Urban Logistics' investment adviser team has significant experience in
investing in the fast-growing logistics sub-sector within the broader real
estate market. The team's ability to source important 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 circa £1bn.

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