Urban Logistics eyes opportunities

Last-mile logistics REIT Urban Logistics is planning to recycle assets as the market “remains robust”. The firm, which published a trading update for the period 1 April to 30 June this morning, said it had sold two assets during the period under review for gross proceeds of £15m – a 3.4% premium to their March valuations. Chief executive Richard Moffitt said: “The market for assets in the company lot size remains robust and over the coming months we intend to recycle additional assets, further validating our net asset value. “The board consistently reviews the best use of capital and, where appropriate, will use the funds to selectively acquire assets which have compelling value accretive asset management opportunities to deliver strong income and total returns.” The REIT signed four new leases over the period, generating some £850,000 of new rental income, and settled two rent reviews at a weighted average uplift of 20%. This generated some £300,000 of additional rent. The administration of Tuffnells Parcel Express in June has seen the company reassign nine of the 12 leases impacted on the same lease terms. The three remaining units are being marketed. Moffitt said the REIT’s recent refinancing – it has agreed a £57m fixed-rate and sustainability-linked loan with Aviva Investors – had given it a “very secure debt position” with capital available to be allocated as opportunities arise. Some 93% of Urban Logistics’ debt is now hedged or fixed to term, with the earliest debt maturity in August 2025. To send feedback, e-mail samantha.mcclary@eg.co.uk or tweet @samanthamcclary or @EGPropertyNews