Urban Logistics delivers solid first half as rental income rises

7th Nov 2024 14:29

(Sharecast News) - Warehouse-focused real estate investment trust Urban Logistics has delivered a solid set of results for its first half, during which it refinanced debt facilities and delivered an increase in both rental income and adjusted profits.

Gross rental income over the six months to 30 September was £30.6m, up 3% on last year, while the portfolio's like-for-like estimated rental value improved by 3.5% since the start of the financial year.

Adjusted earnings improved to £16.8m, from £16.3m a year earlier. However, negative changes in the fair value of investment properties and the fair value of interest-rate derivatives meant the bottom-line pre-tax profit slumped to £10.2m from £16.9m.

The company maintained its interim dividend at 3.25p per share.

In August, Urban Logistics refinanced its debt, extending the facility by two years and increasing the size of it from £151m to £190m. The company said it now has fixed debt costs with no refinancing events until August 2027, which "gives security of costs and earnings potential".

"The refinancing has delivered a 47bps reduction in the margin the company pays, extended the maturity of the near term debt and provided additional investment capital at attractive rates," said investors adviser CEO Richard Moffitt.

Looking forward, Moffitt said: "We see significant value potential within the portfolio, which the company will continue to realise through the team's hands on approach to asset management as well as the recycling of the value created in 'core' assets into higher yielding assets as the company drives for full dividend cover."

The stock finished Thursday's session up 0.2% at 111.2p.