17 April 2024

Urban Logistics REIT plc

("Urban Logistics" or the "Company")

Q4 Performance Update

Continued progress marked by significant like-for-like rental increases and a number of new lettings

Urban Logistics (LON: SHED), the only London listed REIT offering a focused exposure to single-let, last mile/last touch logistics real estate, announces a strong portfolio performance for the period from 1 January 2024 to 31 March 2024, with continued progress in the strategy of providing investors with sustainable high quality earnings and capital appreciation. Urban Logistics has a strong market position in its focus area, having built a c.£1bn portfolio of strategically located assets.

Urban Logistics will hold a Site Visit and Capital Markets Presentation on 15 May 2024. Analysts and institutional investors will have the opportunity to visit two of the Company's assets in Peterborough and attend a presentation on SHED's strategy in action including leasing activity, active asset management, strong tenant base, robust balance sheet and the attractive cashflow characteristics of the assets. For further details and to register your interest please contact urbanlogistics@buchanan.uk.com

Highlights:

·    Average like-for-like rental uplift of 23% across all lease events

·    Three new lettings and 3 rent reviews in the period, covering 374,000 sq. ft. of space, including one vacant asset

·    £1.3m total new annualised rental income equating to 0.3 pence of rental income per share

o  £1.1m new rental income generated from new lettings, with a WAULT of 11.9 years

o  £0.2m new rental income generated from rent reviews

·    Post period end, disposal of an asset in Bedford for £3.8m, at a 1.9% premium to net book value, at a 5.4% NIY, with proceeds used to pay down floating rate debt

·    Occupancy rate at 31 March 2024 of 94.2%, compared with an occupancy rate of 93.2% at 31 December 2023, with further leases under offer post period end.

Richard Moffitt, of Urban Logistics, commented:

"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, and demand for our mid-size, single-let assets continues to increase.

"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. Our increased occupancy rate is welcome, and the majority of our remaining vacancy is made up of two assets, for one of which a new lease is at an advanced stage of negotiation.

"Going forward, we remain focussed on our strategy: delivering earnings and capital growth from targeted real estate acquisitions, active asset management, supported by a strong balance sheet, a low LTV, and strong relationships with banking partners.

"We look forward to presenting our plans and activities in greater detail at our Capital Markets Event in May. This will give us the opportunity to set out the strong investment case for single-let, last mile/ last touch mid-box assets across tenant appeal, their role in the build out of logistics infrastructure in the UK, the positive long term cash flow characteristics of our assets and our strong total return proposition."

Notable lease events in the period:

·    A new lease has been signed at Interlink way in Bardon with Elliott Baxter and Company Ltd, over a 73,791 sq. ft. warehouse. The new lease ensured the property was vacant for only 2 months on expiry of the existing lease, with a 19% increase in like for like rental income

·    An agreement for lease has been signed with Corndell Quality Furniture Ltd, which is expected to complete in May 2024, over a vacant 121,078 sq. ft. warehouse in Andover, generating £0.9m in additional rental income

·    A rent review has been settled with H&K Distribution Ltd, at a 128,460 sq. ft. unit in Swift Park, Rugby, providing a 28% increase in like for like in rental income

Disposal

Elms Industrial Estate, Bedford

·    Acquired in April 2016 for £1.25m

·    24,462 sq. ft. industrial warehouse facility let to UK Power Networks ("UKPN")

·    Comprehensive refurbishment completed in 2022, including PV cells on the roof and improving EPC from an E to an A

·    Significant asset management including a new lease to UKPN

·    Sold post period end for £3.83m, representing a 40% profit on cost, after accounting for refurbishment costs, and a 1.9% premium to net book value (as at 30 September 2023)

·    Receipts used to pay down the small amount of floating rate debt outstanding

The Company expects to report its annual results for the year ended 31 March 2024 on Thursday, 20 June 2024.

- Ends -

About Urban Logistics REIT

Urban Logistics REIT plc (LON: SHED) is a FTSE 250 property investment company. The Company is the only London listed REIT offering exposure to the specialist last mile / last touch logistics sector, with a single-let tenant base which delivers essential goods within the UK. The Company's strategy is to invest in mid-sized logistics properties with the objective of generating attractive dividends and capital returns through active asset management and asset recycling to generate significant valuation uplift.

Urban Logistics' investment adviser team has significant experience in investing in the fast-growing logistics sub-sector within the broader real estate market. The team's ability to source important and strategically located mid-sized single let properties, with high-quality tenants, off-market at favourable terms, creates considerable value for shareholders. Tenants include Amazon, XPO, DHL, Hermes, DPD, Boots, Unipart (for NHS), Royal Mail and J Sainsbury Plc.

Buying well and pursuing additional value enhancing asset management initiatives has driven the Company's growth, enabling Urban Logistics to grow from a £10m market cap company at IPO in April 2016 to a FTSE 250 constituent with a portfolio valued at circa £1bn.