Urban Logistics Reit (SHED)

Sector:

Property Investment Trusts

Index:

FTSE 250

111.80p
   
  • Change Today:
      0.80p
  • 52 Week High: 128.80
  • 52 Week Low: 107.00
  • Currency: UK Pounds
  • Shares Issued: 471.98m
  • Volume: 1,683,918
  • Market Cap: £527.67m
  • Beta: 0.99

Urban Logistics refinances £151m facility, acquires four assets

By Josh White

Date: Tuesday 17 Sep 2024

LONDON (ShareCast) - (Sharecast News) - Urban Logistics REIT announced the successful refinancing of its £151m debt facility on Tuesday.
The FTSE 250 company said it had swiftly deployed the majority of the net proceeds to acquire four high-quality logistics assets, totaling £42.2m.

It said the refinancing replaced its existing £100m term loan and £51m revolving credit facility with a new £140m term loan and a £50m revolving credit facility.

The new debt carried a fixed interest rate of 4.48% until August 2025, which would increase marginally to 4.98% until its maturity in 2027.

It said the arrangement secured favourable borrowing costs for the company over the next several years.

The company said it invested the net proceeds into four strategically located logistics properties, achieving a blended net initial yield (NIY) of 6.6%.

It said the spread between the acquisition NIY and the cost of debt was expected to result in immediate earnings per share accretion, enhancing shareholder value from the outset.

Urban Logistics said it had also identified asset management initiatives within the properties that offered the potential for additional income and total return enhancement.

The initiatives were designed to optimise property usage and tenant mix, further boosting the assets' performance.

Urban Logistic said the refinancing had led to a modest increase in the company's pro forma loan-to-value (LTV) ratio to 32.6%, up from previous levels but still reflecting conservative leverage.

It said it remained modestly geared and benefitted from having 100% of its debt facilities at fixed or hedged interest rates, providing protection against potential future rate fluctuations.

"At our full year results announcement in June, we flagged an arbitrage emerging between debt rates and asset pricing in our pipeline of opportunities," said director Richard Moffitt.

"We have been able to deploy additional capital into the acquisition of carefully selected buildings at very attractive initial yields.

"The properties also provide the potential for active asset management opportunities to drive additional income and capital returns for our shareholders."

Moffitt said the activity supported the growth in earnings, while still maintaining its balance sheet discipline and low loan-to-value.

"The refinancing provides strong validation of our business from our lenders with our debt maturity extended and our debt costs fixed at attractive rates.

"With a view to generating a strong total return for shareholders we are actively seeking to sell selected assets where our asset management initiatives have been completed and their sale will deliver an attractive return on investment.

"We will be reinvesting that capital into assets that not only provide a good income return but also provide asset management opportunities and can therefore provide a meaningful contribution to total return going forward.

"To that end we have a number of assets already under offer and a strong pipeline of further potential acquisition opportunities."

At 1012 BST, shares in Urban Logistics REIT were up 1.13% at 125.6p.

Reporting by Josh White for Sharecast.com.

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Note 1: Prices and trades are provided by Digital Look Corporate Solutions and are delayed by at least 15 minutes.

 

SHED Market Data

Currency UK Pounds
Share Price 111.80p
Change Today 0.80p
% Change 0.72 %
52 Week High 128.80
52 Week Low 107.00
Volume 1,683,918
Shares Issued 471.98m
Market Cap £527.67m
Beta 0.99

SHED Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
81.92% above the market average81.92% above the market average81.92% above the market average81.92% above the market average81.92% above the market average
68.00% above the sector average68.00% above the sector average68.00% above the sector average68.00% above the sector average68.00% above the sector average
Price Trend
33.21% below the market average33.21% below the market average33.21% below the market average33.21% below the market average33.21% below the market average
33.33% below the sector average33.33% below the sector average33.33% below the sector average33.33% below the sector average33.33% below the sector average
Income
51.08% above the market average51.08% above the market average51.08% above the market average51.08% above the market average51.08% above the market average
41.67% above the sector average41.67% above the sector average41.67% above the sector average41.67% above the sector average41.67% above the sector average
Growth
74.81% above the market average74.81% above the market average74.81% above the market average74.81% above the market average74.81% above the market average
79.31% above the sector average79.31% above the sector average79.31% above the sector average79.31% above the sector average79.31% above the sector average

What The Brokers Say

Strong Buy 2
Buy 2
Neutral 0
Sell 0
Strong Sell 0
Total 4
strong_buy
Broker recommendations should not be taken as investment advice, and are provided by the authorised brokers listed on this page.

SHED Dividends

  Latest Previous
  1st Interim 2nd Interim
Ex-Div 21-Nov-24 27-Jun-24
Paid 13-Dec-24 19-Jul-24
Amount 3.25p 4.35p

Trades for 08-Nov-2024

Time Volume / Share Price
16:35 2,693 @ 111.80p
16:35 5,734 @ 111.80p
16:35 11,004 @ 111.80p
16:35 2,571 @ 111.80p
16:35 1,133 @ 111.80p

SHED Key Personnel

CEO Richard Moffitt

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