28th Jan 2022 08:23
(Alliance News) - Industrials REIT Ltd said on Friday strong leasing demand continued to drive up rental growth in the third quarter in spite of the emergence of Omicron variant of Covid-19.
Its shares tumbled 5.1% to ZAR37.00 on Friday morning in Johannesburg. But in London, the counter rose by 1.5% to 192.00 pence.
The London-based real estate investment trust focused on UK multi-let industrial estates posted another strong quarter of leasing activity.
The total rental value of new leases signed during the quarter increased by 31% to GBP1.54 million across 43 new lettings and 17 lease renewals, from GBP1.18 million in the previous quarter.
Industrials REIT said rents continued to track towards the top end of its expectations, with like-for-like passing rent up 0.7% during the quarter and 4.8% higher over 12 months.
Occupancy across the Industrials REIT portfolio remains largely unchanged at 93.8% as at December 31, from 93.9% as at the end of September 30. At the end of December 2020, Occupancy stood at 93.1%.
Industrials REIT Chief Executive Paul Arenson said that despite the onset of the Omicron variant at the end of last year, the company successfully completed one of the busiest periods for new lettings and renewals in the last quarter.
"This is the fifth successive quarter that we have achieved average uplifts in rent of more than 20% at lease expiry or renewal, illustrating the continued strength of the MLI market, which remains characterised by affordable rents and low levels of supply," Arenson said.
"These supportive market dynamics and high levels of portfolio activity have helped us deliver like-for-like growth in passing rents at the top end of our 4%-5% per annum target," he added, projecting a healthy pipeline of lettings and renewals.
By Artwell Dlamini; [email protected]
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