Urban Logistics sees investment flows growing

Urban Logistics expects to see a resurgence of investment into the logistics market after sentiment improved during recent months. Announcing results for the year to 31 March, Richard Moffit, chief executive of investment adviser Logistics Asset Management, said: “The two halves of the period under review were characterised by markedly different conditions. In the first half, uncertainty levels remained high with a lack of clarity on the likely trajectory for both interest rates and inflation. Towards the end of the second half of the year, confidence improved thanks to strengthening macro-economic conditions.” The company posted an 8.4% rise in net rental income to £57.4m, with a vacancy rate of 5.8%, down from 7.4% a year ago. Total property return stood at 4.8%, turning around -5% from a year earlier, on net assets of £758.6m. The portfolio valuation was largely flat at £1.1bn. The company was back in the black with a £24.7m profit. Moffit added: “Throughout the period, the strength of Urban Logistics’ business model was evident with a stable portfolio valuation, increasing rents and low vacancy levels. The robust performance, both operationally and financially, positions the business well, as we expect investment flow levels into logistics to pick up in the coming 12 months.”