Urban Logistics REIT (SHED) investor relations material

Executive summary

• Gross rental income rose 3% to £30.6m and adjusted EPS increased 3.2% to 3.57p, with robust rent collection over 99% and 94% of tenants rated low or low-moderate risk.

• Portfolio rebalancing from core to higher-yielding asset management opportunities is underway, with 27% reversionary potential and £7.1m reversion to be captured before year-end.

• Active capital recycling: £45.8m of acquisitions at 6.7% NIY and £7.7m of disposals at 4.85% NIY, releasing capital for accretive investments.

• Vacancy rate increased to 8.1% (from 5.8% in March), but all vacancies are under offer or in advanced negotiations, supporting near-term earnings growth.

• Completed refinancing reduced margin by 47bps, extended debt maturity to August 2027, and increased facility size.

Financial highlights

• Gross rental income: £30.6m (+3.0% YoY); adjusted EPS: 3.57p (+3.2% YoY); net rental income: £29.0m (+1.8% YoY).

• EPRA NTA per share: 158.05p (down from 160.27p in March) due to uncovered dividend and acquisition costs.

• Loan to value: 33.2% (up from 29.3% in March), within 30–40% target range; all debt fixed or hedged.

• Interest cover: 3.2x; weighted average cost of debt: 3.9–4.15%; weighted average debt maturity: 5.1 years.

• EPS for the period was 6.2p, with a run-rate of 7.2p, approaching the 7.6p dividend.

Outlook and guidance

• 27% portfolio reversion provides a platform for further rental and earnings growth, with £6.5–7.1m ERV available for near-term leasing.

• Vacancy expected to decline in 2025 as demand remains robust and supply is constrained.

• No refinancing events until August 2027; fixed debt costs provide earnings security.

• Dividend expected to be maintained at 7.6p per share for the full year.

• Capital recycling to exceed £25m in H2, with further disposals planned as market liquidity improves.