Urban Logistics reports jump in demand, rise in rental income

(Sharecast News) - Urban Logistics reported a continued surge in demand for space in an update on Wednesday, within its niche sub-sector of last-mile, last-touch delivery of essential goods in urban areas. The FTSE 250 real estate investment trust said that since 1 October, it had completed seven lease events with an additional two leases either in solicitors' hands or under offer.

It said the lease events resulted in like-for-like increases in passing rent of 31% across more than 400,000 square feet of space, generating an additional £0.5m in rental income for the company.

Additionally, Urban Logistics said it had appointed Berenberg as its joint broker alongside its existing corporate broker Singer Capital Markets, with immediate effect.

"We have seen a more active occupational market in recent months, as companies continue to focus on simplifying and localising their distribution networks to be closer to their end customers," said director and chief executive officer Richard Moffitt.

"Two additional leases under offer and in solicitors' hands will further reduce portfolio vacancy.

"We remain confident in Urban Logistics' unique strategy of acquiring last mile single let mid box assets with appealing opportunities to add value through active asset management, which will continue to drive the company forward in 2024 and beyond."

At 1007 GMT, shares in Urban Logistics REIT were down 2.13% at 119.2p.

Reporting by Josh White for Sharecast.com.