Urban Logistics upbeat as rents strengthen

17th Apr 2024 08:35

(Sharecast News) - Urban Logistics REIT struck a confident tone on Wednesday, after rents rose by nearly a quarter in the last three months of the year.

Updating on fourth quarter trading, the FTSE 250 real estate investment trust said the average like-for-like rental uplift was 23%, while the occupancy rate improved to 94.2% as at 31 March. That compares to 93.2% as at 31 December.

The firm, a specialist in last mile logistics real estate, also secured three new lettings and three rent reviews during the period.

Total new annualised rental income was £1.3m, equating to 0.3p of rental income per share.

Richard Moffitt, chief executive, said: "We have seen increased occupational activity in the latter stages of the financial year, with a significant rise in like-for-like rental rates.

"This provides evidence that valuations are stabilising and rents improving in our sector, as tenants continue to localise their distribution networks to be closer to their end customers.

"The optimism in our sub-sector supports our confidence for the coming year, during which we will see the benefit of a full year's rental income from recent leasing activities flowing through to higher earnings."

As at 0900 BST, shares in Urban Logistics were up 1% at 108p.