Pipeline Update

RNS Number : 7645Y

Urban Logistics REIT PLC

06 January 2020

 

THIS ANNOUNCEMENT AND THE INFORMATION CONTAINED IN IT ARE NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN WHOLE OR IN PART, IN OR INTO OR FROM ANY JURISDICTION WHERE TO DO SO MIGHT CONSTITUTE A VIOLATION OF LOCAL APPLICABLE SECURITIES LAWS OR REGULATIONS.

THIS ANNOUNCEMENT IS FOR INFORMATION PURPOSES ONLY AND DOES NOT ITSELF CONSTITUTE AN OFFER FOR SALE OR SUBSCRIPTION OF ANY SECURITIES IN THE COMPANY. THIS ANNOUNCEMENT HAS BEEN ISSUED BY AND IS THE SOLE RESPONSIBILITY OF THE COMPANY.

This announcement contains inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 ("MAR"). 

Urban Logistics REIT plc

("Urban Logistics" or the "Company")

Pipeline Update

Urban Logistics, the AIM-listed REIT focused on last mile logistics, is pleased to announce an update on proposed acquisitions.

Urban Logistics is solely focussed on the urban logistics real estate sector and invests in smaller, single let units. Since IPO in April 2016, Urban Logistics has assembled a well-diversified and high-quality urban logistics portfolio of 38 properties and applies a strategy of active asset management and capital recycling. The Company offers an attractive dividend yield and there are opportunities to grow income which in turn supports NAV growth.

Over the period from IPO to 30 September 2019:

§ EPRA NAV per share increased by 45.2%, representing an average increase of 11.4% per annum;

§ The Company paid out dividends totalling 19.55p per share; and

§ The Company achieved a cumulative total accounting return of 55.9%, equivalent to 16.1% per annum.

(Source: Pacific Capital Partners Limited)

Pacific Capital Partners Limited, the Company's investment manager (the "Manager") has significant experience in sourcing high quality properties off-market with opportunities for significant value creation. It constantly reviews the market for potential investment opportunities and has identified a substantial pipeline of high-quality logistics properties which meet the Company's investment policy and objectives. As at the date of this announcement, the total pipeline is in excess of £300 million. This pipeline includes units for an aggregate consideration of £146 million where the Manager is in advanced negotiations (the "Advanced Portfolio") and further properties with an aggregate consideration of more than £150 million where the Manager is in preliminary stage discussions.

The Advanced Portfolio assets, which comprise three portfolios and 12 single assets, have a weighted average unexpired lease term of approximately 7.8 years and are expected to have a weighted average net initial yield of approximately 6.8%.

The Manager believes that the acquisition of the properties will be accretive to shareholder returns and will further diversify the Company's income, in addition to continuing to strengthen the portfolio's quality, size and prospects for further growth. The pipeline assets referred to are subject to ongoing negotiation and due diligence by the Manager and no contractually binding obligations have been entered into for their sale and purchase.

Urban Logistics has a stated strategy of utilising the platform of its Manager to grow the Company and deliver attractive income and capital returns to its shareholders. To that end the Company is now considering an equity fundraising, alongside debt finance where appropriate, to enable it to capitalise on the pipeline, and will commence a period of engagement with existing and potential new investors. Any equity fundraising would be conditional upon, amongst other things, the approval of shareholders passing the resolutions necessary to authorise the fundraising.

Whilst there can be no assurance that the Company will complete the acquisition of any of the pipeline properties on the expected terms or at all, the Manager believes that the net proceeds of a potential fundraise would be substantially invested within a three-month period following completion.

Further announcements and details regarding any potential equity fundraise will be made as and when appropriate.

- Ends -

For further information contact: 

Urban Logistics REIT plc Richard Moffitt	[phone]
Montfort - Financial PR and IR adviser Olly Scott	[phone]
N+1 Singer - Nominated Adviser and Joint Broker James Maxwell / James Moat (Corporate Finance) Alan Geeves / James Waterlow / Sam Greatrex (Sales)	[phone]
Panmure Gordon (UK) Limited - Joint Broker Chloe Ponsonby (Corporate Broking) Emma Earl (Corporate Finance)	[phone]

About Urban Logistics REIT plc

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.

The Company's 2019 interim results announcement and investor presentations can be viewed at https://www.urbanlogisticsreit.com/investors/results-reports-and-presentations.

IMPORTANT NOTICE

This announcement contains inside information for the purposes of Article 7 of MAR. Upon publication of this announcement, the inside information is now considered to be in the public domain for the purposes of MAR. The person responsible for arranging the release of this announcement on behalf of the Company is Pacific Capital Partners Limited.

The contents of this announcement, which have been prepared and issued by, and are the sole responsibility of the Company, have been approved by the Manager solely for the purposes of section 21(2)(b) of the Financial Services and Markets Act 2000 ("FSMA").

The information contained in this announcement is for information purposes only and does not purport to be full or complete. The information contained in this announcement is given at the date of its publication (unless otherwise marked) and is subject to updating, revision and amendment from time to time. No reliance may be placed for any purpose on the information contained in this announcement or its accuracy, fairness or completeness.

This announcement is directed only at persons in the United Kingdom who: (a) are Professional Investors (within the meaning of the Alternative Investment Fund Managers Directive (2011/61/EU)) (b) have professional experience in matters relating to investments falling within article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the "Order"); (c) fall within article 49(2)(a) to (d) (high net worth companies, unincorporated associations, etc) of the Order; or (d) are persons to whom it may otherwise be lawfully communicated.

This announcement has been issued by, and is the sole responsibility of, the Company. No undertaking, representation, warranty or other assurance, express or implied, is made or given by or on behalf of the Company or any member of the Company's group, Pacific Investments Management Limited, the Manager, Nplus 1 Singer Advisory LLP ("N+1 Singer"), Panmure Gordon (UK) Limited ("Panmure Gordon") or Kinmont Limited ("Kinmont") or any of their respective directors, officers, partners, employees, agents or advisers or any other person as to the accuracy or completeness of the information or opinions contained in this announcement and no responsibility or liability is accepted by any of them for any such information or opinions or for any errors, omissions or misstatements, negligence or otherwise in this announcement.

N+1 Singer, which is a member of the London Stock Exchange, is authorised and regulated in the UK by the Financial Conduct Authority ("FCA") and is acting as nominated adviser and joint broker to the Company. N+1 Singer is not acting for, and will not be responsible to, any person other than the Company for providing the protections afforded to its customers or for advising any other person on the contents of this announcement or on any transaction or arrangement referred to in this announcement. N+1 Singer's responsibilities as the Company's nominated adviser under the AIM Rules are owed solely to the London Stock Exchange and are not owed to the Company, any director of the Company or to any other person. No representation or warranty, express or implied, is made by N+1 Singer as to, and no liability is accepted by N+1 Singer in respect of, any of the contents of this announcement.

Panmure Gordon is authorised and regulated in the UK by the FCA and is acting as joint broker to the Company. Panmure Gordon is not acting for, and will not be responsible to, any person other than the Company for providing the protections afforded to its customers or for advising any other person on the contents of this announcement or on any transaction or arrangement referred to in this announcement. No representation or warranty, express or implied, is made by Panmure Gordon as to, and no liability is accepted by Panmure Gordon in respect of, any of the contents of this announcement.

The information in this announcement may not be forwarded or distributed to any other person and may not be reproduced in any manner whatsoever. Any forwarding, distribution, reproduction, or disclosure of this information in whole or in part is unauthorised. Failure to comply with this directive may result in a violation of applicable securities laws and regulations of other jurisdictions.

This announcement contains (or may contain) certain forward-looking statements with respect to certain of the Company's current expectations and projections about future events and the Company's future financial condition and performance. These statements, which sometimes use words such as "aim", "anticipate'', "believe", "may", "will", "should", "intend", "plan", "assume'', "estimate", "expect' (or the negative thereof) and words of similar meaning, reflect the current beliefs and expectations of the directors of the Company and/or the Manager and involve known and unknown risks, uncertainties and assumptions, many of which are outside the Company's control and difficult to predict, that could cause actual results and performance to differ materially from any expected future results or performance expressed or implied by the forward-looking statement. The information contained in this announcement speaks only as of the date of this announcement and is subject to change without notice and the Company does not assume any responsibility or obligation to, and does not intend to, update or revise publicly or review any of the information contained to this announcement, whether as a result of new information, future events or otherwise, except to the extent required by the FCA, the London Stock Exchange or by applicable law.

Any information in this announcement in respect of past performance (including without limitation past performance of the Company, its group, shares in the Company and/or the Company's portfolio) cannot be relied upon as a guide to future performance. The price of shares and the income from them may fluctuate upwards or downwards and cannot be guaranteed.

The acquisition of any potential investments by the Company is subject, among other things, to the Company completing satisfactory due diligence, successful negotiation of terms with vendors and the approval of the directors of the Company. There can be no guarantee that any of the potential investments described in this announcement will be completed. All information relating to the potential investments described in this announcement are indicative, subject to detailed due diligence and may subsequently change as a result.

 

END

 

 

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