May 24, 2018
The latest results from Urban Logistics, a REIT focused on regional and local logistics warehouses, reveal that earnings doubled last year, driven by the boom in online commerce as businesses fill sheds and regional warehouses to meet customer demand for quicker goods delivery.
EPRA earnings leapt 121 per cent to GBP2.5 million, taking dividends to 6.32p per share.
The Company owns a GBP132 million portfolio of properties across the UK and has rapidly expanded in the last year, tripling the size of its portfolio and increasing its market capitalisation from GBP25 million to over GBP100 million. It recently completed a GBP20.4 million fundraising to buy a new portfolio of sheds from LondonMetric, which when completed over the summer will take the portfolio to approximately GBP168m.
Chairman, Nigel Rich, described the year as transformational for the company and emphasised the subsector's resilience against Brexit and macroeconomic uncertainty: "The fundamentals of our market remain attractive and we are confident of delivering excellent returns for our shareholders."
Portfolio occupancy remained at over 93 per cent, with high-quality tenants in 29 assets including DHL, Culina, XPO, Sainsbury's, Travis Perkins and Puma. Rental income in the business grew 144 per cent to GBP5.6m; and EPRA NAY per share rose 5.5 per cent to 122.49p.
Nigel Rich, Chairman of Urban Logistics, says:
"This has been a transformational period for the Company, which underwent a significant capital raise, increasing its market capitalisation to over GBP100 million. We further diversified the shareholder base and the proceeds were well invested in a timely manner The fundamentals of our market remain attractive and we are confident of delivering excellent returns for our shareholders. In line with our focus and strategy, we recently underwent a name change, and are now known as "Urban Logistics REIT pie.”