Urban Logistics REIT has reported a stellar set of annual results in which EPRA net tangible assets (NTA) increased 10.5%.
The uplift, to 152.33p per share at 31 March 2021 from 137.89p the previous year, reflected a jump in the value of its properties (by 13.2%) as the logistics sector continued its strong ascent. Total accounting return for the year was 15.6%.
The company has grown the size of its portfolio from £207m last year to £508m, off the back of deploying two capital raises in the period totalling £228.4m.
Net rental income rose 88% to £22.9m, while adjusted earnings per share was 6.76p (down 11.7% on the previous year due to the issuance of new shares and pace of investment being partly affected by impact of COVID-19 and the time it took to implement new banking facilities).
Its dividend remained at 7.6p for the year. The group has a prudent loan to value ratio (LTV) of 27.9%.
Operational highlights
- More than 99% of rent due was collected during the period
- 36 logistics assets acquired for £264.0m (blended 6.2% net initial yield)
- £26.2m forward funding across five development sites which reached practical completion
- £39.5m committed to five further sites where development work is ongoing
- Portfolio disposal totalling £30.0m (+35.4% uplift to book values) representing average Total Property Return of 78.8% and an exit yield of 4.8%
- WAULT of 7.4 years (2020: 4.9 years)
- Like-for-like contracted income growth across portfolio of 6.5% (2020: 3.4%)
Richard Moffitt, chief executive, said: “Urban Logistics continues to prosper with a portfolio focused on last mile, or last touch, logistics real estate. Logistics tenants continue to invest into their real estate footplate as they respond to strengthening underlying customer demand and build out their own future, medium-to-long term, infrastructure plans.
“Whilst in any real estate cycle or class there is no room for complacency, we have a significant asset management programme in place and our longer WAULT at the year-end evidences both shorter term lettings opportunities, from assets which have been in the portfolio for a while, as well as line of sight on medium to longer term potential across the portfolio as a whole.
“During the year we took advantage of strong market conditions, realising £30m in disposals at an attractive 4.8 per cent exit yield. High lettings levels, a shortage of supply in the market generally and a strong M&A market evidence further potential in our portfolio. Equally, in terms of the year ahead, we are fully invested and have a strong pipeline of attractive off market opportunities which would allow us to keep pace with our past track record of new investment.”
SHED : Urban Logistics REIT reports stellar results