Urban Logistics Regulatory News (SHED)

25 October 2021

Urban Logistics REIT plc

("Urban Logistics" or the "Company")

Trading Update

Intention to List on the Main Market of the London Stock Exchange

Urban Logistics (AIM: SHED), the last mile logistics focused REIT, is pleased to provide a positive trading update following the close of its interim reporting period ended 30 September 2021. The Company will report its half year results on 11 November 2021.

The Company also announces that the Directors believe that the market capitalisation of the Company now justifies a move to the premium segment of the Main Market ("Admission"). The Board believes that this move to the Main Market will provide the most appropriate market listing for the continuing growth of the Company. Further details on the Admission are expected to be announced shortly.

Highlights

· 99.4% occupancy across 91 logistics properties

· Rent collection over 99% for the half year ended 30 September 2021

· Deployment or commitment of capital from July 2021 fundraising across 8 transactions for consideration of £103 million (5.5% weighted NIY)

· Circa. £50 million of further investments are in advanced stages of contractual progress and are expected to be completed in the near term at a weighted average 6.2% NIY

· New pipeline of over £400 million of high-quality logistics properties identified, utilising the Company's extensive proprietary network to source off market deals

Asset Management Update

The Company has completed 15 new lease events across the portfolio, totalling 813,939 sq. ft. generating an uplift of £1.6 million in contracted rent. These events comprise 11 new lettings, 3 regears and an open market rent review. Notable asset management events include:

· The Unipart Group (part of a logistics contractor for the NHS) has extended its existing lease for the 136,383 sq. ft. property they occupy in Alfreton, north of Nottingham, for an additional 10 year period. The rent rose 18.0%, from £593,250 to £700,000 (£5.12/sq. ft.)

· An open market rent review was completed with Meritor Aftermarket UK Ltd, for the 26,179 sq. ft. property they occupy in Redditch, just south of Birmingham. The rental rate increased from £117,806 (£4.50/sq. ft.) to £138,749 (£5.30/sq. ft.), an increase of 17.8%

· Anglian Water Ltd has signed a new 15 year lease for £340,011 (£7.39/sq. ft.) on a property which the Company acquired through a forward funding agreement. The property, near Peterborough, comprises a 46,000 sq. ft. unit with 60 bay car park. The work was completed on time and ahead of budget.

· Wincanton Ltd has signed a new 15 year lease for a 132,487 sq. ft. unit in Paisley, near Glasgow. The building was purchased a year ago and the lease in place at the time was extended on a short term basis before the unit was substantially refurbished, The agreed rent was £828,044 (£6.25/sq. ft.), up 13.7% from the previous recognised rent of £727,986 (£5.28/sq. ft.)

Richard Moffitt, Chief Executive, commented:

"The logistics real estate sector continues to enjoy very positive market conditions in recent months with an ongoing supply and demand imbalance for suitable properties. We remain highly focused on our last mile, or last touch, strategy, where we have built a market leading position. Last mile logistics assets play a crucial role in the supply chains of our tenants demonstrated by our occupancy figures of 99.4%. Our activity in this sector is underpinned by a focus on acquiring high quality, well located assets let to robust counterparties as demonstrated by our recent rent collection figures, in excess of 99% for the past half year.

Going forward, we will continue to focus on active asset management to drive capital value creation in the existing portfolio, while our reputation as a reliable and well known counterparty continues to create opportunities in accessing attractive off market deals at compelling valuations.

Following the successful deployment of the considerable capital raised to date as an AIM company, we have created a major portfolio of 91 last mile assets, secured at an attractive blended NIY entry valuation. After continued dialogue with shareholders, the Board believes that a Main Market listing is the most effective platform to further grow and diversify the shareholder register and the asset base. We look forward to further updating shareholders on our plans shortly."

- Ends -

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About Urban Logistics REIT

Urban Logistics REIT plc is a property investment company, quoted on the AIM market of the London Stock Exchange (AIM: SHED).

The Company has been established to invest in UK-based logistics properties with the objective of generating attractive dividends and capital returns for its shareholders. Its investment strategy focuses on strategically located smaller single let properties servicing high-quality tenants. Investment returns will be generated by an experienced management team focusing on quality stock selection and active asset management.

A number of structural and commercial factors currently support the attractive opportunity in the last mile/regional industrial and logistics real estate sub-sectors targeted by the Company, including: strong occupier demand, (driven by the growth of e-commerce and investment by retailers in their associated supply chain) and a decline in the supply of smaller sized lettable space in industrial and logistics real estate across the UK.