TIDMSHED
RNS Number : 3462T
Urban Logistics REIT PLC
14 November 2019
Urban Logistics REIT plc
("Urban Logistics", the "Company" or the "Group")
Interim results for the six months ended 30 September 2019
Active asset management drives strong portfolio performance
Urban Logistics, (AIM: SHED) the specialist UK logistics REIT,
issues its interim financial results for the half year ended 30
September 2019.
Highlights 30 Sep 30 Sep Change
19 18 (%)
------- ------- -------
Income Statement
------- ------- -------
Net rental income (GBPm) 5.8 4.4 +31.3
------- ------- -------
EPRA Earnings (GBPm) 3.4 2.6 +30.9
------- ------- -------
EPRA Earnings per share (p) 3.9 3.1 +25.2
------- ------- -------
Interim dividend (p) 3.75 3.00 +25.0
------- ------- -------
Balance Sheet
------- ------- -------
EPRA NAV per share (p) 145.20 129.21 +12.4
------- ------- -------
Gross borrowings (GBPm) 75.7 64.4 +17.5
------- ------- -------
LTV (%) 34.1 34.3
------- ------- -------
Financial
-- EPRA net asset value ("NAV") up to 145.20 pence per share
-- Total Accounting Return (NAV + dividends) of 8.2%
-- GBP195.0 million portfolio valuation with a 3.8%
like-for-like increase since 31 March 2019
-- Interim dividend of 3.75 pence per share, up 25% on prior
year
Property
-- Eight logistics properties with asset management potential
acquired for GBP15.2 million
-- Disposals totalled GBP18.4 million representing an average
profit on cost of 57.4%
-- Portfolio fully occupied
-- WAULT of 6.1 years (31 March 2019: 5.5 years)
Nigel Rich, Chairman, commented:
"The strong results reflect our specialist focus which is
underpinned by a shift in retailing to e-commerce.
"We maintain a healthy acquisition pipeline which we expect to
fund through equity raising and bank debt when we have the
opportunity to do so.
"Looking forward we remain confident that our urban logistics
portfolio will continue to deliver attractive returns for
shareholders."
For further information contact:
Urban Logistics REIT plc
Richard Moffitt +44 (0)20 7591 1600
Montfort - Financial PR and IR adviser
Olly Scott +44 (0)78 1234 5205
N+1 Singer - Nominated Adviser and
Broker
James Maxwell / James Moat (Corporate
Finance)
Alan Geeves / James Waterlow / Sam
Greatrex (Sales) +44 (0)20 7496 3000
Panmure Gordon (UK) Limited - Joint
Broker
Chloe Ponsonby (Corporate Broking)
Emma Earl (Corporate Finance) +44 (0)20 7886 2500
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 invests 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 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.
Chairman's Statement
I am pleased to present the Group's consolidated results for its
interim reporting period from 1 April 2019 to 30 September
2019.
Overview
The Group continues to assemble a diversified logistics
portfolio of last mile properties that offer secure income from
high quality tenants, with the prospect of an attractive total
return through asset management initiatives undertaken by the
Manager. The strong results achieved reflect our focus, which is
underpinned by a structural shift in how consumers and businesses
are procuring goods across the UK.
At the end of September, we owned a portfolio of 38 properties
which were valued by CBRE at GBP195.0 million. As I write this, the
Company's market capitalisation stands at just over GBP118
million.
The Portfolio
At 30 September 2019, the portfolio of properties was fully
occupied with a WAULT of 6.1 years. A number of asset management
initiatives were completed during the period which increased rents
and lease terms. Contracted rent at 30 September 2019 increased to
GBP12.2 million, compared with GBP10.7 million last year.
During the period, the Group continued to acquire properties
suitable for logistics. We purchased a portfolio of parcel depots,
leased to Tuffnells Parcels Express, offering 20-year income at a
7.0% net initial yield to the Group for GBP9.9 million, and two
logistics properties which are let to DHL in the South East. In
addition, three properties were sold in Nuneaton, Bedford and
Dunstable for GBP18.4 million, with an average profit on original
cost of over 57%.
Financial Results
Turning to our results for the interim period ended 30 September
2019, rental income increased to GBP5.9 million compared with
GBP4.9 million at 30 September 2018. EPRA earnings are up to GBP3.4
million from GBP2.6 million, with EPRA earnings per share
increasing to 3.92 pence from 3.13 pence. The increases reflect
rents being received from purchased properties and increases in
rental income as a result of renewals or new leases at higher
rents.
Per CBRE's independent valuation, assets under management
increased from GBP186.4 million at 31 March 2019 to GBP195.0
million which reflects an increase of 3.8% in the value of existing
assets, plus the value of the new assets acquired. Our total return
(NAV and dividend) for the six-month period was 8.2%.
Following the increase in total asset value, the loan to value
("LTV") at 30 September 2019 was 34.1%.
Dividend
The Company has declared a first interim dividend of 3.75 pence
per Ordinary Share in respect of the financial year ended 31 March
2020. This will be paid as a property income distribution ("PID")
on 20 December 2019 to shareholders on the register at the close of
business on 22 November 2019. The ex-dividend date will be 21
November 2019.
Outlook
The outcomes of the upcoming General Election and ongoing Brexit
negotiations will inevitably have an impact on the economic outlook
for the UK.
Against this uncertain background Urban Logistics has continued
to perform well, benefitting from the shift in retailing to
e-commerce. We believe this structural change will continue to
drive demand for last mile logistics properties in the coming
years. Inevitably any major downturn in the economy could affect
our tenants; however, we believe our portfolio is well positioned
with no direct exposure to fashion retail.
We will continue to evaluate opportunities to raise capital to
accelerate our growth and we hope that following the General
Election the outlook for the UK will become more certain, enabling
us to continue to build our well positioned business in this very
attractive sector of the property market.
Nigel Rich CBE, Chairman
Manager's Report
The Group owns real estate in the urban logistics sub-sector of
the UK commercial property market. The investment proposition is
focused on last mile warehousing and parcel depots. Our facilities
principally operate business-to-business delivery of domestic goods
such as food or pharmaceuticals - not the historically volatile
area of fashion retail.
At a macro level there is strong structural support from
evolving consumer and business supply chain demands - led by
e-commerce and online retail which is driving the need for a
greater volume of warehouse space. Therefore, whilst we believe it
is right to have concern over a traditional "late cycle" position
in real estate, we see that current supply cannot meet changing
patterns of consumer demand and therefore have constructed a
portfolio to benefit from this secular growth.
Whilst there are a number of broader near-term risks, including
continued Brexit uncertainty and a General Election, we remain
optimistic for the future given continued occupier interest;
particularly across the South East and Midlands of the UK where our
portfolio is centred.
The market
Investor activity in the logistics sub sector of the UK real
estate market has been robust. H1 2019 investment volumes stood at
GBP1.5bn, which is 5% higher than the corresponding period last
year (Savills briefing July 2019).
Structural changes, in particular e-commerce and the continuing
development of modern technology, are the drivers of demand as well
as a supply chain requirement to modernise and fulfil orders to
urban areas nationally.
Regionally, the East Midlands saw the strongest take up in H1
2019, accounting for just over 38% of total take up. The Group is
very well represented in this area.
Speculative building is continuing across the Midlands,
particularly in the 'big box' space of over 400,000 sq ft. New
build space also remains popular for occupiers with "design and
build" in particular driving take-up due to their increasingly
complex requirements.
Investment Activity
The Group acquired eight properties during the period, excluding
development land, all of which are high quality logistics
warehouses, with good geographical spread and an average WAULT of
15 years. The new properties all present a variety of asset
management opportunities, which have the potential to drive income
growth and capital appreciation.
Tuffnells Portfolio Thatcham Sittingbourne
------------------- -------------------- ---------- --------------
Purchase price* GBP9.9m GBP3.4m GBP1.9m
Net initial yield 7.0% 5.8% 5.9%
Area (sq.ft) 84,872 26,478 21,872
Contracted rent GBP0.80m GBP0.21m GBP0.12m
WAULT 20.0 years 4.5 years 2.5 years
Rent per sq.ft GBP7.08 GBP8.01 GBP5.49
*Purchase price excludes acquisition costs
Tuffnells portfolio
On 27 September 2019, a portfolio of parcel depots was acquired
for GBP9.9 million. The acquisition was sourced at a net initial
yield of 7.0%. The properties are close to established regional
transport hubs in last-mile locations. These well specified parcel
delivery hubs are leased to Tuffnells Parcel Express Limited, a
business-to-business distributor specialising in irregular
dimensions and weights, on fully repairing and insuring leases.
Thatcham and Sittingbourne
The Group acquired two logistics properties in Sittingbourne and
Thatcham for a combined consideration of GBP5.3 million at a 5.9%
blended net initial yield. The acquisitions further extend our
portfolio's weighting across the South East of England where there
is a chronic shortage of logistics properties in our size range.
Both properties are let to DHL's UK Mail business.
Disposals
The Group completed the sale of three logistics properties
located in Nuneaton, Bedford and Dunstable. The sales totalled
GBP18.4 million, representing an average profit on cost of 57%.
Taken together with the income returns generated during the Group's
ownership the combined sale price represents a total property
return of 50%.
Nuneaton Postley Road Cemetery Road
----------------------- --------- ------------- --------------
Purchase price* GBP6.7m GBP5.6m GBP0.6m
Sales price GBP8.1m GBP9.1m GBP1.2m
Total property return 23.3% 73.1% 126.3%
Sales price v NBV +1.3% +8.2% +14.3%
Disposal NIY 4.7% 4.7% 5.3%
*Purchase price excludes acquisition costs
Nuneaton
The building was purchased as part of a portfolio in September
2017 for GBP6.7 million. The unit was acquired with vacant
possession and was subject to a rent guarantee until September
2019. The property was sold to an owner occupier, Cofresh Limited,
in April 2019 and realised a Total Property Return of 23%.
Postley Road, Bedford
This property was purchased at IPO in 2016 for GBP5.6 million
and comprises four industrial units with a piece of development
land. After extensive asset management, increasing rents and lease
terms, the fully occupied site was sold in May 2019 for GBP9.1
million and realised a Total Property Return of 73%. The land
element has been retained and the purchaser has an option to
acquire it for GBP0.5m if planning for redevelopment is
granted.
Forward funding of new warehouses
We are forward funding, using the Group's internal resources,
three properties suitable for urban logistics by providing funds to
the developer, with further detail provided below.
Stone Hinckley Southwater
--------------- -------- --------- -----------
Unit size 86,000 63,500 24,000
Total cost GBP8.5m GBP6.9m GBP4.6m
Yield on cost 6.0% 6.0% 6.0%
Stone/M6
The site will provide a flexible gross internal floor area of
86,000 sq. ft. Stone Business Park is in an established logistics
location and benefits from direct access to junctions 14 and 15 of
the M6.
Hinckley/M1
The site will comprise two units with a total gross internal
floor area of 63,500 sq. ft. Lime Kilns Business Park has direct
access to the A5 and is close to junction 1 of the M69, enabling
access to both the M1 and M6.
Southwater, Horsham
This development of 24,000 sq. ft. is located in a prime
location in the South East and will comprise one unit.
Construction across all three sites is expected to commence
shortly with completion expected in the second quarter of calendar
year 2020. A number of pre-lets are at an advanced stage.
Pipeline
We seek to identify markets with high performance
characteristics. For example, the East of England has just 3 months
of supply in the 100-200,000 sq. ft. range. We note that 70% of
2018 take up was within this size range and we have a number of
assets in our pipeline located in this region. Through our track
record and experience, we are well-placed to continue sourcing
attractive new opportunities and have a strong pipeline of similar
product to our current portfolio.
Asset Management
During the interim period, the Group successfully completed
three new lettings and settled two rent reviews, which in total
generated GBP0.3 million of additional annual rental income.
Shortly after the period end, two further rent reviews were agreed
at 9% above ERV and further increased our annual contracted rent by
GBP0.3 million. Therefore, like-for-like income growth across the
interim period, including rent reviews settled post period end, was
3.1%.
No. of Deals Rental Uplift Like-for-like % of Sep WAULT (years)
Rental growth 19 Contracted
Rent
New lettings 3 GBP0.2m n/a 2% 7.3
Fixed rent
review 1 GBP0.1m 20% 2% n/a
OMV rent reviews* 3 GBP0.3m 44% 8% n/a
------------------- ------------- -------------- --------------- --------------- --------------
Total 7 GBP0.6m 38% 12%
------------------- ------------- -------------- --------------- --------------- --------------
*Includes two rent reviews settled shortly after the period
end
Valuation and portfolio growth
CBRE independently valued the portfolio at 30 September 2019.
The portfolio's market value was GBP195.0 million, compared with
the assets' combined purchase price of GBP163.3 million, excluding
purchaser costs. This represents an increase of GBP31.7 million, or
19.4%, when compared to the purchase prices. During the interim
financial period, property values increased by 3.8% on a
like-for-like basis, supporting our growth conviction. The
valuation increase reflects our focus on asset management and
buying well-located sites, in many cases off market.
Financial Review
The interim financial period to 30 September 2019 was a busy
operational time for the Company with a focus on both asset
management and investment activity.
The results demonstrate some significant achievements and how
the stated strategy of the Group, namely adding scale whilst
focusing on investment returns, continues to prosper. We expect the
results to continue to improve as the Group achieves scale and
undertakes its rent and lease driven asset management
initiatives.
EPRA earnings for the period were GBP3.4 million (H1 Sep 18:
GBP2.6 million), or 3.92 pence per share (H1 Sep 18: 3.13 pence per
share). There were two principal drivers for this positive
performance. The first was full capital utilisation, as
acquisitions replaced sold properties and the portfolio was fully
occupied. The second was successful asset management undertaken
during the prior and current periods across a number of sites.
Administrative and other expenses, which include the Manager's
fee and other costs of running the Group, were GBP1.1 million (H1
Sep 18: GBP0.18m). The EPRA cost ratio was 18.6% for the period (H1
Sep 18: 26.2%).
The Company has seen strong NAV growth over the period, up 5.2%
from 137.96 pence at 31 March 2019, to 145.20 pence per share at 30
September 2019. With the Company fully invested, and a range of
asset management initiatives ongoing, we expect earnings and
capital growth to continue.
Financing and hedging
As at 30 September 2019, the Group had a senior debt facility
with Santander and Barclays totalling GBP75.7 million. This is 72%
hedged using interest rate swaps. It reflects a conservative loan
to value (LTV) of 34.1% which is felt appropriate. The Group's
target LTV is 35-40%.
Market Outlook
The Manager believes that this property sub sector continues to
show resilience in a context of wider economic and political
uncertainty.
The UK continues to be one of the fastest growing adopters of
online retail sales and there is a requirement for tenants to
develop their e-fulfilment capability accordingly. As such, key
geographic regions across the UK are seeing buoyant leasing
activity.
We also see a strong market for local delivery driven by 10%
expected population growth across major UK conurbations by 2038
(source: Savills). Furthermore, supply in the 20,000-200,000 sq ft
logistics space, where Urban Logistics is focused, has fallen by
36.0% since 2012 with land being lost to higher value uses.
Growth of online retail could account for up to 25% of all
retail sales by 2021, creating yet more demand for distribution
warehousing, particularly in our size range of unit.
Our focus will be to continue acquiring assets and implementing
asset management initiatives with a focus on rental growth in light
of the current market dynamic of diminishing supply and increasing
occupier demand. We will also focus on maintaining and building
existing tenant relationships with a view to extending the Group's
reputation as the leader in the smaller lot size urban logistics
market.
We will continue to build a pipeline of property acquisitions in
the expectation that we will be able to raise new equity capital in
the not too distant future.
Richard Moffitt
Independent Review Report to Urban Logistics REIT plc
1 Introduction
We have been engaged by Urban Logistics REIT plc (the "Company")
to review the condensed set of financial statements in the interim
report for the six months ended 30 September 2019 which comprise
the Condensed Consolidated Statement of Comprehensive Income, the
Condensed Consolidated Statement of Financial Position, the
Condensed Consolidated Cash Flow Statement and the Condensed
Consolidated Statement of Changes in Equity and related explanatory
notes.
We have read the other information contained in the interim
report and considered whether it contains any apparent
misstatements or material inconsistencies with the financial
information in the condensed set of financial statements.
2. Directors' responsibility
The interim report is the responsibility of, and has been
approved by, the Directors. The Directors are responsible for
preparing the interim report in accordance with AIM Rule 18.
As disclosed in note 2, the annual financial statements of the
Group are prepared in accordance with IFRS as adopted by the
European Union. It is the responsibility of the Directors to ensure
that the condensed set of financial statements included in this
interim report have been prepared on a basis consistent with that
which will be adopted in the Group's annual financial
statements.
3. Our responsibility
Our responsibility is to express to the Company a conclusion on
the condensed set of financial statements in the interim report
based on our review.
4. Scope of review
We conducted our review in accordance with International
Standard on Review Engagements (UK and Ireland) 2410 "Review of
Interim Financial Information Performed by the Independent Auditor
of the Entity" issued by the Financial Reporting Council for use in
the United Kingdom.
A review of interim financial information consists of making
enquiries, primarily of persons responsible for financial and
accounting matters, and applying analytical and other review
procedures.
A review is substantially less in scope than an audit conducted
in accordance with International Standards on Auditing (UK) and
consequently does not enable us to obtain assurance that we would
become aware of all significant matters that might be identified in
an audit. Accordingly, we do not express an audit opinion.
5. Conclusion
Based on our review, nothing has come to our attention that
causes us to believe that the condensed set of financial statements
in the interim report for the six months ended 30 September 2019 is
not prepared, in all material respects, in accordance with the
requirements of the AIM rules.
6. Use of our report
This report is made solely to the Company in accordance with the
terms of our engagement to assist the Company in meeting the
requirements of the AIM Rule 18. Our review has been undertaken so
that we might state to the Company those matters we are required to
state to it in this report and for no other purpose. To the fullest
extent permitted by law, we do not accept or assume responsibility
to anyone other than the Company for our review work, for this
report or the conclusions we have reached.
Nexia Smith & Williamson
Statutory Auditor
Chartered Accountants
25 Moorgate
London
EC2R 6AY
Condensed Consolidated Statement of Comprehensive Income
Six months to 30 Sep 19 Six months to 30 Sep 18 Year ended
(unaudited) (unaudited) 31 Mar 19
(audited)
Note GBP'000 GBP'000 GBP'000
---------------------------------------------- ----- ------------------------ ------------------------ -----------
Rental income 5,853 4,853 10,771
Property operating expenses (46) (431) (694)
Net Rental Income 5,807 4,422 10,077
Administrative and other expenses (1,045) (840) (1,833)
Long-term incentive plan charge 8 (60) (59) (119)
---------------------------------------------- ----- ------------------------ ------------------------ -----------
Operating profit before changes in fair value
of
investment properties 4,702 3,523 8,125
Changes in fair value of investment property 10 5,636 6,658 13,352
Profit/(Loss) on disposal of investment
property 582 (64) 160
---------------------------------------------- ----- ------------------------ ------------------------ -----------
Operating profit 10,920 10,117 21,637
Finance income 7 25 29
Finance expense 6 (1,272) (923) (2,210)
Changes in fair value of interest rate
derivatives 12 (612) 63 (709)
---------------------------------------------- ----- ------------------------ ------------------------ -----------
Profit before taxation 9,043 9,282 18,747
---------------------------------------------- ----- ------------------------ ------------------------ -----------
Tax credit/(charge) for the period - - -
---------------------------------------------- ----- ------------------------ ------------------------ -----------
Profit and total comprehensive income
(attributable to the shareholders) 9,043 9,282 18,747
---------------------------------------------- ----- ------------------------ ------------------------ -----------
Earnings per share - basic 7 10.31p 11.14p 22.12p
Earnings per share - diluted 7 10.31p 11.08p 22.10p
EPRA earnings per share - diluted 7 3.92p 3.13p 7.01p
Condensed Consolidated Statement of Financial Position
30 Sep 19 30 Sep 18 31 Mar 19
(unaudited) (unaudited) (audited)
Note GBP'000 GBP'000 GBP'000
------------------------------- ----- ------------- ------------- -----------
Non-current assets
Investment property 10 196,900 173,840 186,420
Intangible assets 20 25 22
Interest rate derivatives 12 - 82 -
------------------------------- ----- ------------- ------------- -----------
Total non-current assets 196,920 173,947 186,442
Current assets
Trade and other receivables 4,189 1,284 1,531
Cash and cash equivalents 9,103 4,756 9,760
------------------------------- ----- ------------- ------------- -----------
Total current assets 13,292 6,040 11,291
------------------------------- ----- ------------- ------------- -----------
Total assets 210,212 179,987 197,733
------------------------------- ----- ------------- ------------- -----------
Current liabilities
Trade and other payables (2,762) (1,457) (1,808)
Deferred rental income (2,698) (2,288) (2,388)
------------------------------- ----- ------------- ------------- -----------
Total current liabilities (5,460) (3,745) (4,196)
Non-current liabilities
Long-term rental deposits (953) (949) (951)
Lease obligation (1,865) - -
Interest rate derivatives (1,302) - (690)
Bank borrowings 11 (74,522) (63,321) (71,420)
------------------------------- ----- ------------- ------------- -----------
Total non-current liabilities (78,642) (64,270) (73,061)
------------------------------- ----- ------------- ------------- -----------
Total liabilities (84,102) (68,015) (77,257)
------------------------------- ----- ------------- ------------- -----------
Total net assets 126,110 111,972 120,476
------------------------------- ----- ------------- ------------- -----------
Equity
Share capital 13 878 861 877
Share premium 14 93,937 92,283 93,877
Share warrant reserve - 62 14
Other reserves 254 134 194
Retained earnings 31,041 18,632 25,514
------------------------------- ----- ------------- -----------
Total equity 126,110 111,972 120,476
------------------------------- ----- ------------- ------------- -----------
NAV per share basic 16 143.71p 130.08p 137.39p
NAV per share diluted 16 143.71p 129.30p 137.18p
EPRA NAV - diluted 16 145.20p 129.21p 137.96p
Condensed Consolidated Cash Flow Statement
Six months to 30 Sep 19 Six months to 30 Sep 18 Year ended 31 Mar 19
(unaudited) (unaudited) (audited)
Note GBP'000 GBP'000 GBP'000
------------------------------------ ----- ------------------------ ------------------------ ---------------------
Cash flows from operating
activities
Profit for the period (attributable
to shareholders) 9,043 9,282 18,747
Add: depreciation and amortisation 3 - 4
Less: changes in fair value of
investment property (5,636) (6,658) (13,352)
Add/(less): changes in fair value
of interest rate derivatives 612 (63) 709
(Less)/add: (profit)/loss on
disposal of investment property (582) 64 (160)
Less: finance income (7) (25) (29)
Add: finance expense 1,272 923 2,210
Long-term investment plan 60 59 119
Increase in trade and other
receivables (2,658) (699) (946)
Increase in trade and other
payables 1,265 844 1,291
------------------------------------ ----- ------------------------ ------------------------ ---------------------
Cash generated from operations 3,372 3,727 8,593
Net cash flow generated from
operating activities 3,372 3,727 8,593
------------------------------------ ----- ------------------------ ------------------------ ---------------------
Investing activities
Purchase of investment properties 10 (20,488) (38,502) (52,088)
Disposal of investment properties 18,091 3,101 11,030
Purchase of intangible assets - (26) (26)
Net cash flow used in investing
activities (2,397) (35,427) (41,084)
------------------------------------ ----- ------------------------ ------------------------ ---------------------
Financing activities
Proceeds from issue of Ordinary
Share capital - 21,268 20,400
Proceeds from issue of warrant
shares 59 - 2,430
Cost of share issue - (664) (664)
Bank borrowings drawn 10,771 17,200 28,931
Bank borrowings repaid (7,667) (1,361) (4,930)
Loan arrangement fees paid (165) (351) (610)
Interest paid (1,109) (762) (1,853)
Interest received 7 25 29
Dividends paid to equity holders (3,528) (2,179) (4,762)
------------------------------------ ----- ------------------------ ------------------------ ---------------------
Net cash flow generated (used
in)/generated from financing
activities (1,632) 33,176 38,971
------------------------------------ ----- ------------------------ ------------------------ ---------------------
Net (decrease)/increase in cash and
cash equivalents for the period (657) 1,476 6,480
------------------------------------ ----- ------------------------ ------------------------ ---------------------
Cash and cash equivalents at start
of period 9,760 3,280 3,280
------------------------------------ ----- ------------------------ ------------------------ ---------------------
Cash and cash equivalents at end of
period 9,103 4,756 9,760
------------------------------------ ----- ------------------------ ------------------------ ---------------------
Condensed Consolidated Statement of Changes in Equity
Share Share Share Other Retained Total
capital premium warrant reserves earnings
reserves
Six months ended GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
30 September 2019
(unaudited)
--------------------------- --------- --------- ---------- ---------- ---------- --------
1 April 2019 877 93,877 14 194 25,514 120,476
--------------------------- --------- --------- ---------- ---------- ---------- --------
Profit for the period - - - - 9,043 9,043
--------------------------- --------- --------- ---------- ---------- ---------- --------
Total comprehensive
income - - - - 9,043 9,043
Dividends to shareholders - - - - (3,528) (3,528)
Long-term incentive
plan - - - 60 - 60
Exercise of warrant
shares 1 60 (2) - - 59
Expiry of warrant
shares - - (12) - 12 -
30 September 2019 878 93,937 - 254 31,041 126,110
--------------------------- --------- --------- ---------- ---------- ---------- --------
Six months ended
30 September 2018
(unaudited)
1 April 2018 681 71,832 89 75 11,529 84,206
--------------------------- --------- --------- ---------- ---------- ---------- --------
Profit for the period - - - - 9,282 9,282
--------------------------- --------- --------- ---------- ---------- ---------- --------
Total comprehensive
income - - - - 9,282 9,282
Dividends to shareholders - - - - (2,179) (2,179)
Long-term incentive
plan - - - 59 - 59
Issue of Ordinary
Shares 171 19,565 - - - 19,736
Exercise of warrant
shares 9 886 (27) - - 868
30 September 2018 861 92,283 62 134 18,632 111,972
--------------------------- --------- --------- ---------- ---------- ---------- --------
Year ended 31 March
2019 (audited)
--------------------------- --------- --------- ---------- ---------- ---------- --------
1 April 2018 681 71,832 89 75 11,529 84,206
--------------------------- --------- --------- ---------- ---------- ---------- --------
Profit for the period - - - - 18,747 18,747
--------------------------- --------- --------- ---------- ---------- ---------- --------
Total comprehensive
income - - - - 18,747 18,747
Dividends to shareholders - - - - (4,762) (4,762)
Long-term incentive
plan - - - 119 - 119
Issue of Ordinary
Shares 171 19,565 - - - 19,736
Exercise of warrant
shares 25 2,480 (75) - - 2,430
31 March 2019 877 93,877 14 194 25,514 120,476
--------------------------- --------- --------- ---------- ---------- ---------- --------
Notes to the Interim Financial Statements
1. Corporate information
Urban Logistics REIT plc (the "Company") and its subsidiaries
(the "Group") carry on the business of property lettings throughout
the United Kingdom. The Company is a public limited company
incorporated and domiciled in England and Wales and listed on AIM,
part of the London Stock Exchange. The registered office address is
124 Sloane Street, London, SW1X 9BW.
2. Basis of preparation
The interim financial information in this report has been
prepared using accounting policies consistent with IFRS as adopted
by the European Union. IFRS is subject to amendment and
interpretation by the International Accounting Standards Board
(IASB) on the IFRS Interpretations Committee and there is an
ongoing process of review and endorsement by the European
Commission. The financial information has been prepared on the
basis of IFRS that the Directors expect to be adopted by the
European Union and applicable as at 30 September 2019. The Group
has chosen not to adopt IAS 34 "Interim Financial Statements" in
preparing the interim financial information.
The Group's financial information has been prepared on a
historical cost basis, except for investment property and
derivative interest rate caps which have been measured at fair
value.
The functional currency of the Group is considered to be pounds
sterling as this is the currency of the primary environment in
which the Group operates.
Non-statutory financial statements
Financial information contained in this document does not
constitute statutory accounts for the year ended 31 March 2019
within the meaning of Section 434 of the Companies Act 2006. The
statutory accounts for the year ending 31 March 2019 have been
delivered to the Registrar of Companies. The audit report was
unqualified and did not contain a statement under Section 498 of
the Companies Act 2006 nor did it include references to any matters
to which the auditor drew attention by way of emphasis.
Going concern
The Directors have reviewed the current and projected financial
position of the Group, making reasonable assumptions about future
trading performance. As part of the review, the Group has
considered its cash balances, its debt maturity profile, including
undrawn facilities, and the long-term nature of the tenant
leases.
On the basis of this review, and after making due enquiries, the
Directors have a reasonable expectation that the Company and the
Group have adequate resources to continue in operational existence
for the foreseeable future. Accordingly, they continue to adopt the
going concern basis in preparing the Interim Report and financial
statements.
Standards in issue and effective from 1 April 2019
IFRS 16: Leases
The Group has adopted IFRS 16: Leases for the six months ended
30 September 2019. On adoption the Group initially recognises the
lease liability at the present value of the remaining lease
payments, discounted using the Group's weighted average cost of
debt. The associated right-of-use "(ROU)" assets were measured
equal to the lease liability.
The leases are comprised of Head leases: A small proportion of
the investment properties owned by the Group are situated on land
held through leasehold arrangements, as opposed to the Group owning
the freehold. The remaining lease terms for the leasehold
arrangements range between 124 to 131 years.
The Balance Sheet impact of recognising the lease liability and
associated ROU asset at 30 September 2019 is set out below. Opening
balances have not been restated as the impact at 31 March 2019 was
not material.
30 Sep 19
(unaudited)
GBP'000
-------------------------------------------------------- --------------
Investment property (ROU asset) 1,865
Non-current Trade and other Payables (lease liability) 1,865
As the head leases meet the definition of investment property,
it is initially recognised in accordance with IFRS 16, and then
subsequently accounted for as investment property in accordance
with IAS 40 and the Group's accounting policy.
3. Significant accounting judgements, estimates and
assumptions
The preparation of the financial statements in conformity with
the generally accepted accounting practices requires management to
make estimates and judgements that affect the reported amounts of
assets and liabilities as well as the disclosure of contingent
assets and liabilities at the statement of financial position date
and the reported amounts of revenue and expenses during the
reporting period.
Business combinations
The Group has acquired companies that own real estate. At the
time of acquisition, the Group considers whether each acquisition
represents the acquisition of a business or the acquisition of an
asset. The Group accounts for an acquisition as a business
combination where an integrated set of activities is acquired in
addition to the property.
Where such acquisitions are not judged to be the acquisition of
a business, they are not treated as business combinations. Rather
the cost to acquire the corporate entity is allocated between
identifiable assets and liabilities of the entity based upon their
relative fair values at the acquisition date. Accordingly, no
goodwill or additional deferred tax arises.
Long-term incentive plan
In determining the fair value of the long-term incentive plan
and the related charge to the Statement of Comprehensive Income,
the Group makes assumptions about future events and market
conditions. In particular, judgement must be formed as to the
likely number of shares that will vest, and the fair value of each
award granted.
The fair value is determined using a valuation model which is
dependent on a number of assumptions of the Group's future dividend
policy and the future volatility in the price of the Group's
shares. Such assumptions are based on publicly available
information and reflects market expectation. Different assumptions
about these factors to those made by the Group could materially
affect the reported value of the long-term investment plan.
Details of the Group's long-term incentive plan can be found in
note 8.
Fair value of investment property
The fair value of investment property is market value as
determined on a half-yearly basis, to be the estimated amount for
which a property should exchange on the date of the valuation in an
arm's length transaction. Each property has been valued on an
individual basis. The valuers use recognised valuation techniques
and the principles of IFRS 13. The valuations have been prepared in
accordance with RICS Valuation - Global Standards July 2017 (the
"Red Book"). Factors reflected include current market conditions,
annual rentals, lease lengths and location. The significant methods
and assumptions used by the valuers in estimating the fair value of
investment property are set out in note 10.
4. Principal accounting policies
The principal accounting policies applied in the preparation of
these financial statements are consistent with those applied within
the Company's Annual Report and Financial Statements for the year
ended 31 March 2019, apart from IFRS 16: leases which is applied as
below:
Leases
At inception, the Group assesses whether a contract is or
contains a lease. This assessment involves the exercise of
judgement about whether the Group obtains substantially all the
economic benefits from the use of that asset, and whether the Group
has the right to direct the use of the asset.
The Group recognises a right-of-use ("ROU") asset and a
corresponding lease liability at the commencement date of the
lease. The ROU asset is initially measured based on the present
value of lease payments, plus initial direct costs and the cost of
obligations to refurbish the asset, less any incentives
received.
Lease payments generally include fixed payments and variable
payments that depend on an index (such as an inflation index). When
the lease contains an extension or purchase option that the Group
considers reasonably certain to be exercised, the cost of the
option is included in the lease payments.
Each lease payment is allocated between the liability and
finance cost. The lease payments are discounted using the interest
rate implicit in the lease if that rate can be readily determined
or if not, the incremental borrowing rate is used. The finance cost
is charged to profit or loss over the lease period so as to produce
a constant rate of interest on the remaining balance of the
liability for each period.
As the head leases meet the definition of investment property,
it is initially recognised in accordance with IFRS 16, and then
subsequently accounted for as investment property in accordance the
Group's accounting policy. After initial recognition the ROU head
lease asset is subsequently carried at fair value and the valuation
gains and losses recognised within 'Realised and unrealised
property gain' in the Income Statement.
ROU assets are included in the heading Non-current assets, and
the lease liability included in the heading non-current liabilities
on the Balance Sheet.
Where the ROU asset relates to land or property that meets the
definition of investment property under IAS 40, the ROU assets are
included in the heading Investment properties, and the lease
liability in the heading Non-current liabilities on the Balance
Sheet.
5. Revenue
The Group is involved in UK property ownership and letting and
is considered to operate in a single geographical and business
segment. The total revenue of the Group for the year was derived
from its principal activity, being that of property lettings.
For the interim period to 30 September 2019, one tenant
accounted for 11% Group's gross rental income. This tenant is XPO
Logistics, one of the largest providers of logistics services
globally.
6. Finance expense
Six months Six months Year ended
to 30 Sep to 30 Sep 31 Mar
19 18 19
(unaudited) (unaudited) (audited)
GBP'000 GBP'000 GBP'000
---------------------------------- -------------- -------------- ------------
Interest on bank borrowings 1,109 762 1,853
Amortisation of loan arrangement
fees 163 161 357
---------------------------------- -------------- -------------- ------------
1,272 923 2,210
---------------------------------- -------------- -------------- ------------
7. Earnings per share
The calculation of the basic earnings per share ("EPS") was
based on the profit attributable to Ordinary Shareholders divided
by the weighted average number of Ordinary Shares outstanding
during the period, in accordance with IAS 33.
Six months Six months Year ended
to 30 Sep to 30 Sep
19 18
(unaudited) (unaudited) 31 Mar
19
(audited)
GBP'000 GBP'000 GBP'000
------------------------------------- ------------- -------------- ------------
Profit attributable to Ordinary
Shareholders
Total profit (GBP'000) 9,043 9,282 18,747
------------------------------------- ------------- -------------- ------------
Weighted average number of Ordinary
Shares in issue 87,738,937 83,328,855 84,734,355
Basic earnings per share (pence) 10.31p 11.14p 22.12p
------------------------------------- ------------- -------------- ------------
Number of diluted shares under
option/warrant - 439,140 89,866
Weighted average number of Ordinary
Shares for the purpose of dilutive
earnings per share 87,738,937 83,767,995 84,824,221
------------------------------------- ------------- -------------- ------------
Diluted earnings per share (pence) 10.31p 11.08p 22.10p
------------------------------------- ------------- -------------- ------------
Adjustments to remove:
Changes in fair value of investment
property (GBP'000) (5,636) (6,658) (13,352)
Changes in fair value of interest
rate derivatives (GBP'000) 612 (63) 709
(Profit)/ loss on disposal of
investment properties (582) 64 (160)
------------------------------------- ------------- -------------- ------------
EPRA earnings (GBP'000) 3,437 2,625 5,944
EPRA diluted earnings per share 3.92p 3.13p 7.01p
------------------------------------- ------------- -------------- ------------
8. Long-term incentive plan
The Company has a LTIP, accounted for as an equity settled
share-based payment. At 30 September 2019, Pacific Industrial LLP,
an affiliate of Pacific Capital Partners Limited, has subscribed
for 1,000 B Ordinary Shares of GBP0.01 each and 1,000 C Ordinary
Shares of GBP0.01 each issued in Pacific Industrial & Logistics
Limited, a subsidiary of the Company.
Fair value Charge
at grant for the
period
Date options granted Class of GBP'000 GBP'000
share
---------------------- ------------ ----------- ---------
April 2016 B Ordinary 307 49
August 2017 C Ordinary 131 11
60
----------------------------------- ----------- ---------
The LTIP has an EPRA NAV element and a share price element and
will be assessed on: i) 30 September 2020 (the "First Calculation
Date") and ii) 30 September 2023 (the "Second Calculation Date").
The EPRA NAV element will be 10 per cent. of the excess of the EPRA
NAV per Ordinary Share return, including dividends, over an
annualised 9 per cent. hurdle, multiplied by the number of Ordinary
Shares in issue at the relevant calculation date. The share price
element will be 10 per cent. of the excess of the share price
return, including dividends, over an annualised 9 per cent. hurdle,
multiplied by the number of Ordinary Shares in issue at the
relevant calculation date.
At the First Calculation Date, the share price element and the
EPRA NAV element hurdle will be calculated by reference to the
Placing Price of 115.0 pence.
At the Second Calculation Date, if a payment has been made at
the First Calculation Date under either element, the hurdle for
that element at the Second Calculation Date will be re-set to be
based on the prevailing EPRA NAV per Ordinary Share/share price as
at the First Calculation Date (as applicable). If no payment is
made under an element at the First Calculation Date, then the
hurdle for that element will continue to be calculated by reference
to the Placing Price of 115.0 pence.
The LTIP will be paid in shares or, at the Board's discretion,
in cash.
9. Dividends
Six months Six months Year ended
to 30 Sep to 30 Sep 31 Mar
19 18 19
(unaudited) (unaudited) (audited)
GBP'000 GBP'000 GBP'000
-------------------------------- -------------- -------------- ------------
Ordinary dividends paid
2018: Third interim dividend:
3.20p per share - 2,179 2,180
2018: Fourth interim dividend:
0.02p per share - - 17
2019: First interim dividend:
2.98p per share - - 2,565
2019: Second interim dividend: 3,528 - -
4.02p per share
Total dividends paid 3,528 2,179 4,762
-------------------------------- -------------- -------------- ------------
The Company has declared a first interim dividend of 3.75p pence
per Ordinary Share in respect of the financial year ended 31 March
2020. The total dividend of 3.75p pence per Ordinary Share will be
paid as a property income distribution ("PID") on 20 December 2019
to shareholders on the register at the close of business on 22
November 2019. The ex-dividend date will be 21 November 2019.
10. Investment properties
In accordance with IAS 40 "Investment Property", investment
property is carried at its fair value as determined by an external
valuer. This valuation has been conducted by CBRE and has been
prepared as at 30 September 2019, in accordance with the RICS
valuation - Professional Standards UK January 2017 (the "Red
Book").
The valuations have been prepared in accordance with those
recommended by the International Valuation Standards Committee and
are consistent with the principles in IFRS 13.
Investment Investment Total
properties properties
freehold leasehold
GBP'000 GBP'000 GBP'000
----------------------------------------- ------------ ------------ ---------
As at 1 April 2019 137,690 48,730 186,420
Property additions through acquisitions 15,784 4,704 20,488
Property additions through recognition
of Right of Use Asset - 1,865 1,865
Disposals in year (9,482) (8,027) (17,509)
Change in fair value during the
period 5,432 204 5,636
----------------------------------------- ------------ ------------ ---------
As at 30 September 2019 149,424 47,476 196,900
----------------------------------------- ------------ ------------ ---------
Total rental income for the interim period recognised in the
Condensed Consolidated Statement of Comprehensive Income amounted
to GBP5.9 million (H1 Sep 18: GBP4.9 million).
11. Bank borrowings and reconciliation of liabilities to cash
flows from financing activities
Bank borrowings
GBP'000
-------------------------------------------------- ----------------
Balance at 1 April 2019 71,420
Bank borrowings drawn in the year 10,771
Bank borrowings repaid in the year (7,667)
Loan arrangement fees paid (165)
Non-cash movements:
Amortisation of loan arrangement fees 163
-------------------------------------------------- ----------------
Total bank borrowings per the Consolidated Group
Statement of Financial Position 74,522
-------------------------------------------------- ----------------
Being:
Drawn debt 75,698
Unamortised loan arrangement fees (1,176)
-------------------------------------------------- ----------------
Total 74,522
-------------------------------------------------- ----------------
On 5 December 2018, the Group, Santander UK plc and Barclays
Bank plc entered into a facility agreement pursuant to which
Santander UK plc has agreed to provide the Group with a loan
facility of GBP72.6 million for a term of five years.
On 23 August 2019, the loan facility was renegotiated so the
Group could draw a further GBP10.8m. At 30 September 2019 the
amount of drawn debt was GBP75.7m.
12. Interest rate derivatives
The Group has used interest rate swaps to mitigate exposure to
interest rate risk. The total fair value of these contracts are
recorded in the Statement of Financial Position. The interest rate
derivatives are marked to market by the relevant counterparty banks
on a quarterly basis in accordance with IFRS 9. Any movement in the
fair value of the interest rate derivatives are taken to finance
costs in the Statement of Comprehensive Income.
Six months Six months Year ended
to 30 Sep to 30 Sep 31 Mar
19 18 19
(unaudited) (unaudited) (audited)
GBP'000 GBP'000 GBP'000
------------------------------------ -------------- -------------- ------------
Non-current assets/(liabilities):
derivative interest rate swaps:
At beginning of period (690) 19 19
Change in fair value in the period (612) 63 (709)
------------------------------------ -------------- -------------- ------------
(1,302) 82 (690)
------------------------------------ -------------- -------------- ------------
13. Share capital
30 Sep 19 30 Sep 19
(unaudited) (unaudited)
Number GBP'000
-------------------------------- -------------- --------------
Issued and fully paid up at 1p
each 87,751,604 878
-------------------------------- -------------- --------------
At beginning of period 87,690,604 877
Issued and fully paid - 10 May
2019 61,000 1
At 30 September 2019 87,751,604 878
-------------------------------- -------------- --------------
On 10 May 2019, 61,000 warrant shares were redeemed for an issue
price of 97.0 pence per share.
14. Share premium
Share premium relates to amounts subscribed for share capital in
excess of nominal value less any associated issue costs that have
been capitalised.
Six months Six months Year ended
to 30 Sep to 30 Sep 31 Mar
19 (unaudited) 18 19
(unaudited) (audited)
GBP'000 GBP'000 GBP'000
------------------------------- ---------------- -------------- -----------
Balance brought forward 93,877 71,832 71,832
Share premium on the issue of
Ordinary Shares 60 21,115 22,709
Share issue costs - (664) (664)
------------------------------- ---------------- -------------- -----------
93,937 92,283 93,877
------------------------------- ---------------- -------------- -----------
15. Related party transactions
The terms and conditions of the Investment Management Agreement
are described in the Management Engagement Committee Report. During
the interim period, the amount paid for services provided by
Pacific Capital Partners Limited (the "Manager") totalled
GBP587,568.
Long-term incentive plan
Under the terms of the Company's long-term incentive plan, at 30
September 2019 Pacific Industrial LLP, an affiliate of Pacific
Capital Partners Limited, has subscribed for shares in Pacific
Industrial & Logistics Limited, a subsidiary of Urban Logistics
REIT plc. Further details have been provided in note 8.
Acquisition of investment properties
During the interim period, the Group incurred fees totalling
GBP315,570 from M1 Agency LLP, a partnership in Richard Moffitt is
a member. These fees were incurred in the acquisition and sale of
investment properties.
For the transactions listed above, Richard Moffitt's benefit is
derived from the profit allocation he receives from M1 Agency LLP
as a member and not from the transaction.
The Board, with the assistance of the Manager, and excluding
Richard Moffitt, review and approve each fee payable to M1 Agency
LLP, and ensure the fees are in line with market rates and on
standard commercial property terms.
16. Net asset value per share
Basic NAV per share is calculated by dividing net assets in the
Consolidated Statement of Financial Position attributable to
Ordinary Shareholders by the number of Ordinary shares at the end
of the period.
Net assets have been calculated as follows:
30 Sep 19 30 Sep 18 31 Mar
19
(unaudited) (unaudited) (audited)
Net assets per Condensed Statement
of Financial Position (GBP'000) 126,110 111,972 120,476
----------------------------------------- -------------- -------------- ------------
Add:
Cash received from issued share
warrants (GBP'000) - 2,005 444
----------------------------------------- -------------- -------------- ------------
Diluted NAV (GBP'000) 126,110 113,977 120,920
----------------------------------------- -------------- -------------- ------------
Adjustment for:
Fair value of interest rate derivatives
(GBP'000) 1,302 (82) 690
----------------------------------------- -------------- -------------- ------------
EPRA NAV (GBP'000) - basic 127,412 111,890 121,166
EPRA NAV (GBP'000) - diluted 127,412 113,895 121,610
----------------------------------------- -------------- -------------- ------------
Ordinary shares:
Number of Ordinary Shares in issue
at period end 87,751,604 86,080,818 87,690,604
Number of Ordinary Shares for
the purposes of dilutive Net Asset
Value per share at period end 87,751,604 88,147,854 88,147,854
----------------------------------------- -------------- -------------- ------------
Basic NAV 143.71p 130.08p 137.39p
EPRA NAV - basic 145.20p 129.98p 138.17p
----------------------------------------- -------------- -------------- ------------
Diluted NAV 143.71p 129.30p 137.18p
EPRA NAV - diluted 145.20p 129.21p 137.96p
----------------------------------------- -------------- -------------- ------------
Supplementary Information
i. EPRA performance measures summary
Six months Six months Year ended
to 30 Sep to 30 Sep 31 Mar
19 18 19
(unaudited) (unaudited) (audited)
GBP'000 GBP'000 GBP'000
------------------------------------- ------------- ------------- -----------
EPRA EPS (diluted) 3.92p 3.13p 7.01p
EPRA NAV per share (diluted) 145.20p 129.21p 137.96p
EPRA triple NAV per share (diluted) 143.71p 129.30p 137.18p
------------------------------------- ------------- ------------- -----------
EPRA net initial yield 6.2% 6.1% 5.9%
EPRA "topped up" net initial yield 6.7% 6.5% 6.1%
EPRA vacancy rate 0.0% 1.1% 0.0%
EPRA cost ratio (including vacant
property costs) 18.6% 26.2% 23.5%
EPRA cost ratio (excluding vacant
property costs) 18.5% 17.9% 17.5%
------------------------------------- ------------- ------------- -----------
ii. Income statement
Six months Six months Year ended
to 30 Sep to 30 Sep 31 Mar
19 18 19
(unaudited) (unaudited) (audited)
GBP'000 GBP'000 GBP'000
---------------------------------- ------------- ------------- -----------
Gross rental income 5,853 4,853 10,771
Property operating costs (46) (431) (694)
---------------------------------- ------------- ------------- -----------
Net rental income 5,807 4,422 10,077
Administrative expenses (1,045) (840) (1,833)
Long-term incentive plan charge (60) (59) (119)
Operating profit before interest
and tax 4,702 3,523 8,125
---------------------------------- ------------- ------------- -----------
Net finance costs (1,265) (898) (2,181)
Profit before tax 3,437 2,625 5,944
---------------------------------- ------------- ------------- -----------
Tax on EPRA earnings - - -
EPRA earnings 3,437 2,625 5,944
---------------------------------- ------------- ------------- -----------
iii. Balance sheet
Six months Six months Year ended
to 30 Sep to 30 Sep 31 Mar
19 18 19
(unaudited) (unaudited) (audited)
GBP'000 GBP'000 GBP'000
-------------------------------- ------------- ------------- -----------
Investment property 196,900 173,840 186,420
Other net assets/(liabilities) 5,034 1,371 6,166
Net borrowings (74,522) (63,321) (71,420)
-------------------------------- ------------- ------------- -----------
EPRA net assets 127,412 111,890 121,166
-------------------------------- ------------- ------------- -----------
iv. EPRA net initial yield and 'topped up' net initial yield
Six months to 30 Sep 19 Six months to 30 Sep 18 Year ended 31 Mar 19
(unaudited) (unaudited) (audited)
GBP'000 GBP'000 GBP'000
------------------------------------------- ------------------------ ------------------------ ---------------------
Investment property - wholly owned 196,900 173,840 186,420
------------------------------------------- ------------------------ ------------------------ ---------------------
Completed property portfolio 196,900 173,840 186,420
Less:
Development Properties (4,300) - -
Right of Use Asset (1,865) - -
------------------------------------------- ------------------------ ------------------------ ---------------------
Add:
Allowance for estimated purchasers' costs 12,919 11,482 12,332
EPRA property portfolio valuation (A) 203,654 185,322 198,752
------------------------------------------- ------------------------ ------------------------ ---------------------
Annualised passing rent 12,737 11,520 11,883
Less irrecoverable property costs (63) (247) (247)
------------------------------------------- ------------------------ ------------------------ ---------------------
Annualised net rents (B) 12,674 11,273 11,636
------------------------------------------- ------------------------ ------------------------ ---------------------
Contractual rental increased for rent free
period 886 708 503
"Topped up" annualised net rent (C) 13,560 11,981 12,139
EPRA net initial yield (B/A) 6.2% 6.1% 5.9%
EPRA "topped up" net initial yield (C/A) 6.2% 6.5% 6.1%
v. EPRA Cost Ratio
Six months Six months Year ended
to 30 Sep to 30 Sep 31 Mar
19 18 19
(unaudited) (unaudited) (audited)
GBP'000 GBP'000 GBP'000
--------------------------------------- ------------- ------------- -----------
Costs
Property operating expenses (1) 46 431 694
Administrative expenses 1,045 840 1,833
Less:
Ground rents (1) (1) (1)
Total costs including vacant property
costs (A) 1,090 1,270 2,526
--------------------------------------- ------------- ------------- -----------
Group vacant property costs (9) (403) (638)
Total costs excluding vacant property
costs (B) 1,081 867 1,888
--------------------------------------- ------------- ------------- -----------
Gross rental income 5,853 4,853 10,771
Less:
Ground rents (1) (1) (1)
Total gross rental income (C) 5,852 4,852 10,770
--------------------------------------- ------------- ------------- -----------
Total EPRA cost ratio (including
vacant property costs) (A/C) 18.6% 26.2% 23.5%
Total EPRA cost ratio (excluding
vacant property costs) (B/C) 18.5% 17.9% 17.5%
--------------------------------------- ------------- ------------- -----------
1) Property operating expenses are cost of sales. These
typically include Utilities, Business rates, Letting fees, and
other direct costs.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
IR KXLFFKFFEFBX
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