Urban Logistics REIT PLC Trading Update (6350Y)

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RNS Number : 6350Y

Urban Logistics REIT PLC

09 May 2023

9th May 2023

Urban Logistics REIT plc

("Urban Logistics" or the "Company")

Trading Update

Significant value creation from active asset management

Strengthened management team

Urban Logistics (LON: SHED), the last mile logistics focused REIT, announces an update for the period from 1 January 2023 to 31 March 2023. The Company will report its annual results for the year ended 31 March on 22 June 2023.

Highlights

-- 15 new lettings and regears signed in the period, covering 490,188 sq. ft. of space and generating GBP1.6m of additional rental income, with a like-for-like rental uplift of 24% for new lettings and 5% for regears ;

-- 4 further deals agreed post quarter end covering 237,163 sq. ft. of space and generating GBP0.8m in new rent;

-- Within these new lettings the Company's recently completed developments at Nottingham and Rochdale are now fully let at a blended yield on cost of 7.7%;

-- 52% of the portfolio now rated EPC A/B, up from 40% at 31 December 2022 (and 27% at 31 March 2022);

-- Appointment to the Board of Lynda Heywood as an Independent Non-Executive Director, and a member of the Audit Committee, Management Engagement Committee and Nomination Committee (with effect from 1 May 2023); and

-- The Manager has appointed Justin Upton as Chief Investment Officer (CIO) , adding depth and additional expertise to the management team.

Richard Moffitt, Chief Executive of the Investment Advisor, commented:

"Our active asset management strategy is key to delivering value throughout the property cycle and this quarter has been no different with the completion of some significant new lettings to tenants who deliver essential goods across the UK and are therefore less vulnerable to fluctuations in economic conditions.

"We're particularly pleased to see our recently completed developments at Rochdale and Nottingham now fully let, and generating a very attractive yield on cost, as well as our continuing EPC improvements, in line with our ESG targets.

"As we continue to grow, we are delighted to announce that Justin Upton, who previously managed a GBP2.2bn M&G property portfolio, has joined as CIO of the Manager to strengthen the management team. Justin's experience and expertise will be invaluable as we look to recycle capital and create value for shareholders."

- Ends -

 
 Urban Logistics REIT plc 
  Richard Moffitt                                [phone] 
 Buchanan                                        [phone] 
  Helen Tarbet                                    [phone] 
  Simon Compton                                   [phone] 
  George Beale                                    [phone] 
                                                --------------------- 
 Singer Capital Markets - Joint Broker 
  James Maxwell / Alaina Wong / Oliver Platts 
  (Banking) 
  Alan Geeves / James Waterlow / Sam Greatrex 
  (Markets)                                      [phone] 
                                                --------------------- 
 Panmure Gordon (UK) Limited - Joint Broker 
  David Watkins (Corporate Broking) 
  Emma Earl (Corporate Finance)                  [phone] 
                                                --------------------- 
 

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 management 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 GBP10m market cap company at IPO in April 2016 to a FTSE 250 constituent.

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May 09, 2023 02:00 ET (06:00 GMT)