Urban Logistics Regulatory News (SHED)

8 February 2022

Urban Logistics REIT plc

("Urban Logistics" or the "Company")

Trading Update

Urban Logistics (LON: SHED), the last mile logistics focused REIT, provides a further update on recent activity following its move to the Main Market and £250 million equity raise in December 2021.

Key points

· £39.5 million of logistics assets recently acquired at a blended NIY of 5.0%

· In aggregate £68.1m of capital deployed or committed since the December raise

· Group portfolio now consists of 110 strategically positioned last mile/last touch urban logistics assets

· £9 million asset disposal which has generated an IRR of c. 25%

· £40 million Aviva Investors debt draw down completed with interest only payments on a fixed rate of 2.26% in a 7 year term facility

· 100% of prior quarter rent demanded has been collected

Richard Moffitt, Chief Executive, commented:

"I'm pleased to be able to announce a good package of acquisitions which provides a mix of long term stable income and near term asset management opportunities, a further disposal at an attractive return and an additional £40 million green debt with Aviva Investors.

"We have grown into a major player in last mile / last touch urban logistics, and our continued focus on pipeline assembly and execution has put us in a position to complete 11 properties since our December equity raise. We remain focused on well let, strategically positioned assets in existing and emerging logistics hubs. Looking ahead, we are confident that we can continue to find attractive yield spreads on acquisitions with asset management opportunities.

"We welcome the development of our relationship with Aviva Investors, a key financing partner. The new debt comes with specific ESG clauses, as we seek to continue to build our sustainability credentials in line with the commitments we have made to investors."

Acquisitions

Ashville Way, Oxford

A 21,650 sq. ft. warehouse at Ashville Way, Oxford. The purchase price paid was £3,920,000 at a NIY of 5.7%. The unit is let to Mayfield Press (Oxford) Ltd until October 2031.

Sabre Way, Peterborough

An industrial unit of 56,385 sq. ft. in Sabre Way, Peterborough. The purchase price was £5,250,000 at a NIY of 5.8%. The site is let to Malco Holdings Ltd until August 2027.

The Triangle portfolio

The Company has completed a transaction with a single vendor to acquire three assets for a purchase price of £9,175,000 at a NIY of 4.9%. The portfolio is fully let and benefits from near term contractually committed rental improvements to bring the yield to 5.8% within the calendar year 2022:

· Communications House, Norwich: A 42,172 sq ft warehouse let to Ingram Micro Services Ltd until December 2028

· Burdon Drive, Peterlee: A 69,178 sq ft warehouse let to Saica Pack Ltd until June 2026

· Rosevale Road, Newcastle Under Lyme: A 55,588 sq ft warehouse let to Diebold Nixdorf until July 2031

Nene House and Logistics House, Daventry

A site in Daventry, comprising two logistics units totalling 159,699 sq ft let to Ceva Logistics until September 2027, a self-contained warehouse comprising 8,147 sq ft let to Futures Homeway Ltd until January 2026 and a 23,256 sq ft multi let office building. The purchase price paid was £21,200,000 at a NIY of 4.8%, with short term asset management opportunities to bring it up to 5.5%.

Disposal

Following agreement of a new long lease, the Company has disposed of a 93,928 sq ft industrial warehouse, let to G Plan Upholstery until March 2036. The disposal was for gross proceeds of £9,000,000, representing a 10.4% uplift of net book value and a 35% gross uplift on acquisition cost. The exit NIY was 4.9% and an IRR of c. 25% has been generated. This continues the Company's strategy of selective, targeted recycling of capital into new opportunities.

Debt Update

On 12 March 2021 Urban Logistics entered into a new 7 year £48 million loan facility with Aviva Investors.

Urban Logistics has now signed a further £40m interest-only facility provided at a fixed rate of 2.26% pa. The facility includes, inter alia, margin rate improvement available on hitting environmental targets across the assets charged. The facility with Aviva Investors is secured across a portfolio of 13 logistics assets totalling 1.2m sq ft. over a 7 year term.

- Ends -

About Urban Logistics REIT

Urban Logistics REIT plc is a property investment company, quoted on the Main Market of the London Stock Exchange (LON: SHED). The Company is the only listed REIT to focus on specialist last mile / last touch logistics assets, with a tenant base which delivers essential goods within the UK. The Company's strategy is to invest in UK-based logistics properties with the objective of generating attractive dividends and capital returns for its shareholders.

The Company's investment management team has over 50 years' experience in investing in the logistics market. It's ability to source vital and strategically located smaller single let properties servicing high-quality tenants, off-market at favourable terms, creates considerable value for shareholders. Buying well and providing additional value enhancing asset management initiatives has helped the Company pursue its successful growth strategy, enabling the Company to grow from a £10m market cap company in April 2016 to over £800m at present.