Urban Logistics Regulatory News (SHED)

Urban Logistics REIT plc

("Urban Logistics" or the "Company")

Trading update

Urban Logistics REIT plc (AIM: SHED), the specialist UK logistics REIT, is pleased to provide a trading update following the close of the interim financial reporting period to 30 September 2018. The Company intends to report its half year results on 15 November 2018.

Highlights

§ Portfolio valuation of £173.8m, a like-for-like increase of 6.6% since 31 March 2018

§ EPRA NAV up 5.5% to 129.21p (122.49p at 31 March 2018)

§ Total accounting return (NAV + dividend) for the interim period of 8.1%

§ Portfolio occupancy increased to 98.9% (93.3% at 31 March 2018)

§ WAULT unchanged at 5.0 years since 31 March 2018

§ LTV of 37.1% (36.9% at 31 March 2018)

§ £20.4m gross proceeds raised in April 2018 to acquire a portfolio of logistics assets for £36.0m

Portfolio update

Leasing

§ The Company has let two logistics units following extensive refurbishment, increasing portfolio occupancy to 98.9%:

§ A 108,873 sq ft site in Chesterfield, signing a five-year lease with Strata Products at £3.97 sq ft. The site offers further reversionary potential

§ A 103,268 sq ft site in Leigh, Manchester, signing a 10-year lease with OTC Direct, part of Alliance Boots, at £4.94 sq ft

§ Rent review agreed at a 38,762 sq ft site in Bedford, increasing rent by 24%

Sales

§ Disposed of two sites following implementation of the Company's asset management strategies, including rental increases and lease term extensions:

§ Completed sale of a 44,195 sq ft site in Bedford, representing a profit on cost of 44%

§ Post period end, on 8 October 2018, a site was sold in Leeds representing a profit on cost of 17%

Richard Moffitt, Chief Executive, commented:

"We have again exceeded expectations through ongoing active asset management in a sector that continues to show strong fundamentals.

"Following the £20m April fundraising, we were fully invested by September, purchasing six well located logistics assets across the Midlands.

"Recent lettings have focused on supporting the distribution operations of high-quality tenants operating in essential goods sectors, underpinning the Company's income and total return capabilities.

"Our well-located portfolio continues to offer significant reversionary potential that we intend to capture as part of our ongoing asset management programme."

Market commentary

Investor interest remains strong in the logistics sub-sector of the UK real estate market, with record levels of take-up registered to 30 June 2018, ("H1/18").

This interest is driven by structural changes, e-commerce as well as modern technology. The driver of this demand remains the online retail sector which at 5.6m sq ft in H1/18 represented 32% of overall take-up.

H1/18 has seen more take-up than the whole of 2017, (17.42m sq ft vs 17.26m sq ft) despite the backdrop of some weaker economic data on the retail side of the UK economy.

Forward-thinking retailers and distributors are continuing to invest in manufacturing plants and distribution centres that ease delivery to the consumer.

Whilst there are a number of near-term risks, including continued Brexit uncertainty and retailer CVAs and administrations, we remain optimistic about the future given occupier interest and wider supply constraints in our smaller lot size space.

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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 industrial and 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 industrial and logistics 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.