Last checked at 
10 Jan 2024 16:20
Urban Logistics REIT - Annual Overview from QuotedData
10th January 2024
A re-rating candidate
If an inflexion point in the interest rates cycle has been reached, as seems to be the case, Urban Logistics REIT (SHED) is a compelling proposition. Valuations have stabilised - as evidenced by a 0.2% uplift in the value of SHED's portfolio in the six months to September 2023 - while the company has substantial reversion baked into its portfolio (reversion is the rental growth potential of the portfolio, being the difference between current portfolio rents and the estimated rental value of the portfolio).
SHED's manager has an enviable track record of creating value through asset management initiatives. It says that it will continue to be a focus for the company as it builds on the success of recent lease events that resulted in a 10% uplift in rents. Operating in the 'mid-box' segment of the logistics sector - where strong rental growth is forecast, and supply and demand characteristics remain favourable - gives it an advantage over both the wider real estate sector and some of its closest peers.
SHED's current discount to net asset value (NAV) of 23.5% seems both unjustified and highly attractive, especially if the next move in interest rates is down.
Full Research:
https://quoteddata.com/research/urban-logistics-reit-rerating-candidate-qd/
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