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Industrials REIT says occupational conditions "strong" amid challenges

28th Apr 2023 08:55

(Alliance News) - Industrials REIT Ltd on Friday said the underlying occupational conditions remained "strong" in the UK multi-let industrial market, despite the challenging macro-economic backdrop.

In a trading statement, the London-based real estate investment trust investing in UK multi-let industrial properties said the occupancy ratio was almost flat at 92.3% in the fourth quarter that ended March 31 from 92.4% in the third quarter. But occupancies fell from 93.7% a year before.

Industrials REIT said like-for-like growth in passing rent was 4.8% in the fourth quarter, slowing from 5.0% in the previous quarter and 5.6% a year before. It saw 11% growth in rental values over the 12-month period.

It said 92% of rents due for the quarter ended March 31 had been collected by April 21 from 90% at the same point last year, and 96% of rents due for the financial year that ended March 31 had been collected by April 21, down from 98% at the same period last year.

"Our final trading update of the financial year has seen continued strong underlying occupational conditions in the MLI market driven by high demand, limited supply and affordable rents," Industrials REIT Chief Executive Paul Arenson said.

"Whilst the macro-economic backdrop remains challenging in the UK, our MLI portfolio has delivered on target, with 4.8% like-for-like growth in passing rents and 10.6% growth in estimated rental values over the 12 month period."

Industrials REIT shares inched up 0.3% to 167.00p in London on Friday. They were flat at ZAR37.87 in Johannesburg.

By Artwell Dlamini, Alliance News reporter

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