Urban Logistics REIT (SHED) H2 2024 earnings summary

Executive summary

• Net rental income rose 8.4% year-over-year to £57.4m, with robust rent collection and a diversified tenant base.

• Adjusted earnings were £32.5m, with adjusted EPS of 6.89p, and dividend per share maintained at 7.60p.

• Portfolio value remained stable at £1,099.5m, with EPRA NTA per share at 160.27p, down 1.3% from last year.

• Loan to value ratio held steady at 29.3%, with 96.9% of debt fixed or hedged.

• Asset management and selective recycling drove operational performance, with a focus on capturing reversionary potential and maintaining a strong balance sheet.

Financial highlights

• Net rental income increased to £57.4m from £53.0m year-over-year.

• Adjusted earnings per share slightly decreased to 6.89p from 6.93p.

• Dividend per share held at 7.60p.

• Portfolio valuation marginally decreased to £1,099.5m from £1,106.5m.

• EPRA NTA per share declined to 160.27p from 162.44p.

Outlook and guidance

• Focus on letting down 5.8% vacancy and capturing £5.8m of near-term reversionary rent.

• Exploring additional debt headroom to acquire assets at 6.5–7% NIY, targeting EPS accretion from day one.

• Anticipated improvement in capital market activity as interest rate expectations stabilize.

• Continued emphasis on asset management, recycling, and selective acquisitions to drive growth.