 17 March 2025
Urban Logistics REIT plc
Achilles Investment Company Limited ("Achilles") notes the potential conflict of interest concerning Richard Moffitt, Chief Executive Officer of Logistics Asset Management LLP, the Investment Adviser to Urban Logistics REIT plc ("Urban Logistics" or "the Company"). Mr. Moffitt also holds an interest in M1 Agency LLP, where he is a member.
As disclosed in Urban Logistics' financial statements for the four years ending 31 March 2024, the Company has paid over £6.3 million in fees to M1 Agency LLP, in addition to £22.7 million paid to Logistics Asset Management LLP over the same period.
On 4 and 5 March 2025, through the Board's adviser, Kinmont Advisory, Achilles urged the Board to ensure that no further fees are paid by Urban Logistics to M1 Agency LLP.
Achilles notes recent press reports that Mr. Moffitt is now considering divesting his partnership interest in M1 Agency LLP to his fellow members. Achilles welcomes this development, as it acknowledges that the substantial payments made to M1 Agency LLP, though disclosed in the notes to Urban Logistics' financial statements, may not be appropriate.
Achilles formally requests that the Board of Urban Logistics confirm that, should Mr. Moffitt in fact proceed with the sale of his partnership interest in M1 Agency LLP, there is no understanding or agreement for any future payments to be made to M1 Agency LLP.
Achilles remains committed to ensuring that the Board acts in the best interests of all Urban Logistics' shareholders. Furthermore, Achilles will be writing to shareholders in the near future to explain why the recent proposal to internalise the Company's management, while it may have merit in principle, is not in shareholders' financial interests. This view is shared by nearly all the Company's largest shareholders. |
Bottom line is the board isn't independent.
You wonder if Nigel Rich, Chairman is really holding Moffitt (who is on the board of the adviser and the trust) to account.
Nigel Rich's CV on the Urban Logistics website says he is currently a director of British Empire Trust.
1. British Empire Trust hasn't been called that for years.
2. He resigned in December 2021.
Mmmm,,,what do you make of that? |
A reminder of what SHED said:
"... A significant majority of shareholders spoken to were supportive of the proposals.."
Guess the two statements could be correct - majority of shareholders in favour, but nearly all the largest shareholders against. Would be a serious stretch tho, someone's fibbing IMO.
(Agree re internalisation cost, & the M1 stuff adds another dimension, AIC may be right on that part at least). |
That's the thing about activists - they can be the sock puppets of larger investors - conversely all the big short research houses are actually tiny - but act in concort with institutional money The payment for internalising is too much relative to SUPR (and from memory PHP too) |
Interesting. The precise opposite of what SHED RNS'd (also some interesting bits on "M1"/Moffit).
Fwiw, Mills doesn't hold nearly enough to be calling the shots IMO.
"Achilles will be writing to shareholders in the near future to explain why the recent proposal to internalise the Company's management, while it may have merit in principle, is not in shareholders' financial interests. This view is shared by nearly all the Company's largest shareholders." |
This was published around the time of the spike - has anyone got access to the content? |
Approach denied |
shorts closing out? there was around 2.9% shorts declared, which was surprising given the recent reit activity |
"As regards speculation on corporate activity, the Board is not in receipt of an approach by or on behalf of a potential offeror for Urban Logistics. "
Edit - wonder if Mills is against the earlier move:
"Following that announcement, a comprehensive dialogue with shareholders has been ongoing and a significant majority of shareholders spoken to were supportive of the proposals set out in the announcement. Dialogue with shareholders will continue." |
It absolutely is - but if the share price gets up close to NAV it's a good chance of staying listed and becoming a consolidator - would far prefer that to being taken out We could end up with just SGRO and BBOX left Ideally the rest would merge such that you had three industrial/logisitics REITs |
above 129p on the chart, there is very little stop up to around 140p. hope it keeps going up |
joined the list |
Loads of buys between 14.35 and 14.39. |
hello hello, what's goin on ere then?? |
Achilles locks its sights on Urban Logistics REIT. |
Alas this chance of this still been listed in 12 months can't be much more than 50/50 |
Somethings lit the paper |
Move on move on, nothing to see here ...
OR is there ? |
The 10yr gilt is back up over 4.6%pa so indeed this is a big come back from Reits. rather than just interest rate fluctuations. |
I need 140 to break even! |
Great recovery to £1.25, forecast that price target on 06/02, but didn't expect to reach target so quickly!. Would have bought more, last month but have a heavy weighting already in my SIPP 12%.
Reits in general having a good day, assume not directly affected by Trumps Tarriff meddling & tech coming off boil could be a safe harbour next few months. Also like GRI & LAND, both up today. |
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