Annual Overview from QuotedData

Urban Logistics REIT - Annual Overview from QuotedData

10th January 2024

A re-rating candidate

If an inflexion point in the interest rates cycle has been reached, as seems to be the case, Urban Logistics REIT (SHED) is a compelling proposition. Valuations have stabilised - as evidenced by a 0.2% uplift in the value of SHED's portfolio in the six months to September 2023 - while the company has substantial reversion baked into its portfolio (reversion is the rental growth potential of the portfolio, being the difference between current portfolio rents and the estimated rental value of the portfolio).

SHED's manager has an enviable track record of creating value through asset management initiatives. It says that it will continue to be a focus for the company as it builds on the success of recent lease events that resulted in a 10% uplift in rents. Operating in the 'mid-box' segment of the logistics sector - where strong rental growth is forecast, and supply and demand characteristics remain favourable - gives it an advantage over both the wider real estate sector and some of its closest peers.

SHED's current discount to net asset value (NAV) of 23.5% seems both unjustified and highly attractive, especially if the next move in interest rates is down.

Full Research:

https://quoteddata.com/research/urban-logistics-reit-rerating-candidate-qd/

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NB: Marten & Co was paid to produce this note on Urban Logistics REIT Plc and it is for information purposes only. It is not intended to encourage the reader to deal in the security or securities mentioned in this report. Please read the important information at the back of this note. QuotedData is a trading name of Marten & Co Limited which is authorised and regulated by the Financial Conduct Authority. Marten & Co is not permitted to provide investment advice to individual investors categorised as Retail Clients under the rules of the Financial Conduct Authority.

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