(Alliance News) - Urban Logistics REIT PLC on Thursday maintained its dividend after reporting a surge in annual profit due to good market conditions.
The specialist UK logistics real estate investor recorded a pretax profit GBP171.8 million in the year which ended March 31, more than tripled from GBP47.6 million the year before.
Meanwhile, rental income grew 60% to GBP36.5 million from GBP22.9 million.
EPRA net tangible assets per share jumped 24% to 188.8 pence at March 31 versus a year before.
The company attributed this to strong market conditions.
"During the year the market for the type of assets in which we invest has strengthened considerably, driven by a continued lack of supply in the market, coupled with increased demand from companies building resilience into their supply chains," Urban Logistics explained.
Further, acquisitions with an average net initial yield of 5.3% and rent increases throughout the year enhanced its income and value.
The FTSE 250 company declared a second interim dividend of 4.35p per share, up 2.4% year-on-year from 4.25 pence. This took its total dividend to 7.60 pence per share, unchanged from the year before.
Looking ahead, Urban Logistics plans to "at least" maintain its dividend at the current level.
It also anticipates to see a "modest" improvement in earnings in financial 2023.
"The business is well capitalised and continues to benefit from the structural tailwinds in our sector. With further acquisitions in progress and significant opportunities for asset management within the existing portfolio, the business is well placed in the current inflationary environment and we are confident in its continued long term growth prospects," Chair Nigel Rich said.
Shares were trading 1.2% lower at 162.60 pence each on Thursday morning in London.
By Abby Amoakuh; abbyamoakuh@alliancenews.com
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Urban Logistics (SHED)