DRIVING PERFORMANCE 2021 FULL YEAR RESULTS - Urban Logistics REIT
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DRIVING PERFORMANCE 2021 FULL YEAR RESULTS
AGENDA
Page
Introduction 3
Highlights 7
Portfolio Review 10
Market Outlook 21
Summary 24
Appendix 26
URBAN LOGISTICS | 2021 FULL YEAR RESULTS 2
INTRODUCTION
A highly experienced logistics investment management team
RICHARD MOFFITT CHRISTOPHER TURNER
CEO ASSET MANAGER
Former Head of UK Industrial and Logistics at CBRE Qualified Chartered Surveyor
Total of 25+ years of Logistics market experience. 25 years of experience in acquisition, performance
and disposal of investments
Experience includes:
Experience includes:
• Qualified as Chartered Surveyor 1988
• Acquired, managed and traded £175 million asset
• CBRE Head of Industrial and Logistics 2010-2015 portfolio
• Co-Founder M3 Agency 2000-2010 (specialist • Acquired and repositioned €135 million industrial
logistics consultancy) portfolio in Germany
• Chairman European Logistics Real Estate Partners • Formerly Director of Hill Samuel Investment
2018-present Management
• Member Chartered Institute of Logistics and • Formerly Director and Head of Asset Management
Transport at Lambert Smith Hampton
URBAN LOGISTICS | 2021 FULL YEAR RESULTS 3
URBAN LOGISTICS REIT PLC
A pure play on urban logistics
• UK REIT quoted on the AIM market of the London Stock DIFFERENTIATORS
Exchange
FOCUS ON “LAST MILE”
• Income and Total Return strategy through active asset
20,000-200,000 sq.ft
management
• Most appropriate size for last-mile delivery operators
• Invests in mid-box logistics buildings up to
200,000 sq.ft.
STRATEGIC LOCATIONS
• Assets located in key urban “last touch”/“last mile”
locations 31% South East bias¹
• Area had among the strongest take-up of logistics space
• The only London listed REIT with such a focus
• Management team with specific logistics experience
within the broader real estate market STRONG COVENANTS
89% low/low-moderate risk²
• 13.9% p.a. average Total Accounting Return from IPO
• Single-let assets
to 31 March 2021.
• High-quality tenants
• No fashion retail
1. Expressed as a percentage of capital value as at 31 March 2021
2. Per Dun & Bradstreet (Overall Business Risk) as at 3 May 2021
URBAN LOGISTICS | 2021 FULL YEAR RESULTS 4
URBAN LOGISTICS REIT
How we create value for our shareholders
1 BUY WELL 2 MANAGE WELL 3 PERFORM
82 assets 8 rent reviews and 4.8%
acquired since IPO1 23 new lettings/re-gears average disposal yield
completed in the year on assets sold in the year
6.4% 19% average LFL income 35% average premium to book
average purchase yield on growth for rent reviews value on disposals in year
properties acquired since IPO2 settled in the year
30-70% 69% of valuation uplift 79%
replacement cost achieved through Total Property Return generated
asset management in the year from assets sold in the year
VALUE CREATION3
9.0% 34.75p 13.9%
average EPRA NAV per share Total dividends declared average Total Accounting
growth pa Return pa
1. Excluding forward funded developments
2. The average purchase yield is based on headline purchase price, and excludes forward funded development assets
3. Performance from IPO to 31 March 2021
URBAN LOGISTICS | 2021 FULL YEAR RESULTS 5
URBAN LOGISTICS REIT
Driving performance through asset management
Like for like increase in portfolio value1 Total Property Return (“TPR”)2
13% 13%
11% 10% 11% 10% 11%
10%
4%
5% 6% 6% 6% 6% 6%
Mar-17 Mar-18 Mar-19 Mar-20 Mar-21
Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Income Capital
Driven by active management CAPITAL GROWTH ATTRIBUTED
AVERAGE TPR PER ANNUM2
TO ASSET MANAGEMENT3
75% 15%
22% 13%
31% 30% 31%
78% 87%
69% 70% 69%
Mar-17 Mar-18 Mar-19 Mar-20 Mar-21
Asset management Market movement
1. The like-for-like increase for the financial year ended 31 March 2021 includes 5 assets sold on 25 March 2021
2. Total Property Return is calculated as the capital growth in the portfolio, plus net rental income and profit or loss on the sale of investment properties expressed as a percentage return on the capital employed
during the year, however, this excludes acquisitions
3. Performance from IPO to 31 March 2021
URBAN LOGISTICS | 2021 FULL YEAR RESULTS 6
HIGHLIGHTS URBAN LOGISTICS | 2021 FULL YEAR RESULTS 7
FINANCIAL HIGHLIGHTS
Robust balance sheet with earnings momentum into FY22
• Net rental income of £22.9m for the year, representing an
NET RENTAL INCOME DIVIDEND PER SHARE
increase of 88.0%, driven primarily from new acquisitions
•
•
Gross to net rental income ratio of 96.5%
Declared interim dividend of 4.35p for the six-months to
£22.9m 7.60p
31 March 2021 (Mar 2020: £12.2m) (Mar 2020: 7.60p)
• EPRA Net Tangible Assets (NTA) per share of
152.33p at 31 March 2021, an increase of 10.5% from EPRA NTA PER SHARE1 LOAN TO VALUE (“LTV”)
152.33p 27.9%
31 March 2020
• Successfully completed two new loan facilities in the
year totalling £199.4m, including a 7-year Sustainable
Green debt facility with Aviva Investors (Mar 2020: 137.89p) (Mar 2020: nil)
• Net debt of £141.7m representing an LTV
of 27.9%, slightly below our target of 30-40% TOTAL ACCOUNTING RETURN TOTAL SHAREHOLDER RETURN
• £92m of equity capital raised in the year
15.6% 29.8%
(Mar 2020: 5.6%) (Mar 2020: 11.2%)
1. In October 2019, EPRA introduced new best practice recommendations for reporting of net asset value. The Group considers EPRA Net Tangible Assets (NTA) to be the most relevant measure for its operating
activities and has been adopted as the Group’s primary measure of net asset value.
URBAN LOGISTICS | 2021 FULL YEAR RESULTS 8
OPERATIONAL HIGHLIGHTS
Active asset management during the year
ACQUISITIONS PORTFOLIO VALUE LFI VALUATION UPLIFT2
• £295m1 of investments into attractive assets
•
•
Sourced off-market with a weighted average NIY of 6.2%
32% (by value) located in South East £507.6m 13.2%
(Mar 2020: £207.0m) (Mar 2020: 4.6%)
ASSET MANAGEMENT
• 8 rent reviews, 23 new lettings and lease re-gears agreed
in the year TOTAL PROPERTY RETURN3 EPRA VACANCY RATE
•
17.1% 6.9%
Active asset management on properties which accounted for 69%
of the growth in the year
• Low EPRA vacancy rate of 6.9% at period end, of which 1.5%
is undergoing refurbishment
(Mar 2020: 10.1%) (Mar 2020: 2.4%)
DISPOSALS
• £30m portfolio sale in March 2021 RENT COLLECTION DISPOSAL TPR
•
99.9% 78.8%
35.4% premium to book value
• Achieving a Total Property Return of 78.8%
• Average purchase yield of 7.0% vs. 4.8% disposal yield
(Mar 2020: 100.0%) (Mar 2020: 50%)
1. 36 assets acquired for a total consideration of £269 million (including acquisition costs and £5 million of refurbishment works) and advanced £26 million across 5 forward funded development assets
2. The like-for-like increase for the financial year ended 31 March 2021 includes 5 assets sold as part of a portfolio on 25 March 2021
3. Total Property Return is calculated as the capital growth in the portfolio, plus net rental income and profit or loss on the sale of investment properties expressed as a percentage return on the capital employed
during they year, however, this excludes acquisitions
URBAN LOGISTICS | 2021 FULL YEAR RESULTS 9
PORTFOLIO REVIEW URBAN LOGISTICS | 2021 FULL YEAR RESULTS 10
URBAN LOGISTICS REIT
Portfolio optimized for value creation
PORTFOLIO VALUE1 VALUATION NIY1 Location1,4
£507.6M 5.1% 14%
31% South East
13% Midlands
North West
WAULT2 PURCHASE NIY3
Yorkshire & NE
14%
7.4 years 6.4%
Other
29%
AREA CONTRACTED RENT
5.3m sq.ft £30.3M
GROSS TO NET RENT EPC RATINGS: A-C5
96.5% 76%
1. Portfolio metrics are stated as per CBRE independent valuation as at 31 March 2021
2. Based on contracted rent as at 31 March 2021, excluding short-term lettings and licences
3. Average purchase NIY for all stabilised properties acquired from IPO to 31 March 2021, therefore, excludes forward funded developments
4. By capital value
5. By floor area
URBAN LOGISTICS | 2021 FULL YEAR RESULTS 11URBAN LOGISTICS REIT
High quality tenants provide secure income
Tenant credit ratings1,2 Top 10 tenants (% of contracted rent)1,3
4% Culina Group 9.3%
7%
Low/low-moderate risk XPO 6.9%
Moderate risk
Moderate-high/high risk Unipart Group (NHS) 6.1%
89% Fidens Studios 5.6%
Giant Booker Ltd 4.7%
Tenant diversity1
Amazon 3.9%
23% Pegler Yorkshire Group Ltd 3.8%
Third Party Logistics
42%
Large Corporate Tuffnells Parcels Express Ltd 2.6%
SME
Agility Logistics 2.4%
35%
Iron Mountain 2.4%
1. As a percentage of contracted rent as at 31 March 2021 (excluding short-term lettings and licences)
2. Per Dun & Bradstreet (Overall Business Risk) as at 3 May 2021
3. Top 10 tenants represent 47.7% of the contracted rent as at 31 March 2021 (excluding short-term lettings and licences)
URBAN LOGISTICS | 2021 FULL YEAR RESULTS 12URBAN LOGISTICS REIT
Creating dependable income growth
Lease expiry profile1 LFL contracted rental income growth2
38% 6.5%
4.8%
22%
19% 3.4%
2.9%
12% 2.0%
9%
0-1 years 1-3 years 3-5 years 5-10 years 10+ years Mar-17 Mar-18 Mar-19 Mar-20 Mar-21
Contractual rent reviews1 AVERAGE LFL INCOME GROWTH ON
RENT REVIEWS SETTLED IN THE YEAR
12%
19%
19%
11%
7%
0-1 years 1-3 years 3-4 years 4-5 years
1. As a percentage of contracted rent as at 31 March 2021 (excluding short-term lettings and licences)
2. Based on income producing assets at the start and end of the period
URBAN LOGISTICS | 2021 FULL YEAR RESULTS 13URBAN LOGISTICS REIT
Acquisition activity in the year
South South North Yorkshire
East West Midlands West & NE Scotland
Purchase price1 £80.0m £30.4m £36.3m £44.8m £38.0m £22.1m
Net initial yield 5.5% 6.8% 5.8% 6.1% 6.7% 7.5%
Area (sq ft) 688,701 412,055 633,303 561,935 483,547 333,082
Contracted rent £4.7m £1.9m £2.1m £2.8m £2.6m £2.0m
Rent per sq ft £7.01 £4.65 £3.32 £4.97 £5.41 £6.03
Capital value per sq ft £119.63 £73.71 £57.32 £79.74 £78.62 £66.39
• £252 million1 of last mile logistics assets acquired in the year Location2
• 32% South East bias
9% South East
• 6.2% weighted average NIY
32% South West
15%
• On average, year end valuation 7.7% ahead of purchase price
Midlands
North West
Yorkshire & NE
18% Scotland
12%
14%
1. Headline purchase price, which excludes acquisition costs and also excludes forward funded developments
2. By purchase price (excluding acquisitions costs)
URBAN LOGISTICS | 2021 FULL YEAR RESULTS 14URBAN LOGISTICS REIT
Case Study: Charlton Mead, Hoddesdon
• A twelve-acre highly attractive “last-touch” distribution hub
close to London acquired in an off-market transaction during
the year for a total consideration of £34.3 million, representing
a NIY at 5.4%.
• The site is strategically located on the A10, which is seven miles
from the M25 and benefits from excellent access
• Adjacent to local power supply.
• At acquisition, three of the units were let to Muller UK & Ireland,
a major producer and distributor of dairy products. The other units
were vacant with a one-year rent guarantee.
• In February 2021, the vacant units were let on ten-year leases
at a rent of £13 per sq ft, 15% ahead of ERV.
• The year-end valuation of £41.4 million represents a 20.9%
uplift since acquisition
Contracted rent Area (sq ft) WAULT to expiry (years)1 NBV at 31 March 2021
£2.4m 181,996 9.7 £41.4m
1. WAULT to lease expiry 9.7 years (6.3 years to first break)
URBAN LOGISTICS | 2021 FULL YEAR RESULTS 15URBAN LOGISTICS REIT
Asset management driving returns
No. of Rental LFL Rental
Deals Uplift Uplift WAULT
Lettings & re-gears 23 £3.9m 9% 7.6 years
Fixed rent reviews 5 £0.3m 13% n/a
OMV rent reviews 3 £0.4m 29% n/a
Total 31 £4.6m 14%
• 31 deals completed in the year, generating £4.6 million of additional rental income per annum and
a WAULT of 7.6 years
• 14% like-for-like rental growth achieved, 19% on rent reviews settled in the year
• Rent collection: received 99.9% of rents demanded in the year
URBAN LOGISTICS | 2021 FULL YEAR RESULTS 16URBAN LOGISTICS REIT
Case Study: XPO lease restructuring
• Acquired three assets let to XPO Logistics in September 2017,
for a combined consideration of £11.9 million and representing
a weighted average NIY of 7.5%
• During the year, we granted new leases for 5-years on each
asset, increasing contracted rent by £0.3 million or 24.6% on
a like-for-like basis
• In addition to increasing rent and extending the term, the
negotiations included buying in all the freehold titles for each
site and agreeing the installation of car charging points and
low energy lighting, significantly enhancing EPC ratings
• The year-end valuation of £20.4 million representing a 72.1%
uplift since acquisition.
• Like-for-like valuation uplift in the year was 55.1%,
representing a weighted average NIY of 5.9%.
Contracted rent Area (sq ft) WAULT to expiry (years)1 NBV at 31 March 2021
£1.4m 234,654 4.9 £20.4m
1. WAULT as at 31 March 2021
URBAN LOGISTICS | 2021 FULL YEAR RESULTS 17URBAN LOGISTICS REIT
Perform: £30m of asset disposals in the year, 35.4% premium to book value
Riverside Burryport
Bedford Way Road Leicester Holmewood
Purchase price1 £2.7m £0.8m £4.0m £6.7m £5.3m
Purchase NIY 5.8% 7.3% 5.5% 6.2% 9.8%
Sales price £4.9m £1.7m £5.3m £8.5m £9.6m
Sales price vs. NBV +7.5% +32.3% +32.0% +23.9% +76.8%
Exit NIY 4.9% 5.0% 5.0% 4.8% 4.8%
Total Property Return 109.4% 169.0% 50.5% 45.8% 114.3%
• 5 assets sold as part of a portfolio for £30.0 million Acquisition NIY Exit NIY
•
7.0% 4.8%
Over ownership period, increased contracted rent
by £0.2 million, representing an uplift of 12% and
increased WAULT to 7.4 years as compared to 3.9
years at acquisition
Premium to NBV Total Property Return
+35.4% 78.8%
1. Includes acquisition costs
URBAN LOGISTICS | 2021 FULL YEAR RESULTS 18URBAN LOGISTICS REIT
Development activity
• 5 development sites completed in the year, comprising
8 logistics units and 2 electric van parks
• Total gross development cost of £35.1 million
• Expected to generate £2.1 million of additional rent
per annum once fully let, representing a 5.7% yield on
cost
• 3 lettings agreed in the year, representing 39% of
ERV, however this increase to 89% when taking into
account rental guarantees
• All units achieved an EPC rating of A at practical
completion
• Target BREEAM rating of Excellent
Gross development cost Additional rent1 Yield on cost1 Total area (sq ft)
£35.1m £2.1m 5.7% 222,935
1. Based on estimated rental value
URBAN LOGISTICS | 2021 FULL YEAR RESULTS 19URBAN LOGISTICS REIT
An attractive pipeline1
South North Yorkshire
East Midlands West & NE
Purchase price £39.9m £59.1m £14.2m £40.2m
Net initial yield 6.5% 5.9% 5.7% 6.2%
Area (sq ft) 478,317 631,754 156,781 587,561
Contracted rent £2.8m £3.7m £0.9m £2.7m
Rent per sq ft £5.77 £5.86 £5.54 £4.56
WAULT (years) 5.3 6.1 11.3 12.5
Capital value per sq ft £83.41 £93.53 £90.67 £68.38
Location2 Low/low-moderate risk3 Weighted average NIY
26% 26% South East
Midlands
c.76% c.6.1%
North West
9% WAULT (to expiry) Average rent per sq ft
c.8.0 yrs c.£5.40
Yorkshire & NE
39%
1. Indicative figures, subject to, inter alia, further due diligence
2. By capital value
3. Per Dun & Bradstreet
URBAN LOGISTICS | 2021 FULL YEAR RESULTS 20MARKET OUTLOOK URBAN LOGISTICS | 2021 FULL YEAR RESULTS 21
URBAN LOGISTICS REIT
Structural tail winds remain strong
E-commerce as % of total retail sales¹ • E-commerce accounted for 35% of total retail sales in
February 2021, representing growth of c.56% since March
2020
35%
• The Covid-19 crisis has accelerated the adoption of
e-commerce
22%
19%
15% 16%
18%
• The pandemic highlighted the importance of supply
chain resilience, with many businesses now adopting
“just-in-case” mentality rather than “just-in-time”
2016 2017 2018 2019 Mar-20 Feb-21
• Reduced land availability in last mile/urban warehouse
Prime yields/rents2 space creating continuous upwards pressure on rent
Region Rent (£ psf) Cap rate
and land values
South East £16.50 3.75%
South West £7.35 4.35%
West Midlands £7.00 4.00% PORTFOLIO AVERAGE RENT PSF PORTFOLIO VALUATION YIELD
North West £7.25 4.00%
Yorkshire & NE
Scotland
£6.25
£6.25
4.35%
4.35%
£5.35 5.1%
1. Source: Office of National Statistics (ONS)
2. Sources: CBRE
URBAN LOGISTICS | 2021 FULL YEAR RESULTS 22URBAN LOGISTICS REIT
Record take-up while supply remains at low levels
Take-Up1 Supply1
60 40 60%
Sq ft (millions)
Sq ft (millions)
50 35
50%
30
40 40%
25
30 20 30%
20 15
20%
10
10 10%
5
0 - 0%
2015 2016 2017 2018 2019 2020 2021 Q4 2015 Q4 2016 Q4 2017 Q4 2018 Q4 0219 Q4 2020 Q3 2021
Q1 Q2 Q3 Q4 Total Sq ft Grade A proportion
• New leases signed for 50.1 million sq ft of warehouse space in 2020, 12.7 million sq ft ahead of previous record
set in 20161
• Online retailers took close to 50% of available space, with omnichannel retailers and supermarkets expanding their
online presence
• Vacant, ready to occupy space, remains low at sub 6%1
• Lack of new, ready to occupy units has pushed occupiers towards the second-hand market
1. Source: Savills
URBAN LOGISTICS | 2021 FULL YEAR RESULTS 23SUMMARY URBAN LOGISTICS | 2021 FULL YEAR RESULTS 24
SUMMARY
Proven track record with attractive pipeline
STRONG MARKET FUNDAMENTALS CAPITAL GROWTH
ATTRIBUTED TO ASSET
• UK continues to be one of the fastest-growing adopters of e-commerce MANAGEMENT SINCE IPO
75%
• Resilient demand creating upwards pressure on rent and land values, (land values up c.7% in 2020 1)
• Supply remains at all time low of sub 6%1
• Inflation in construction costs continue to drive up replacement cost
STRONG INCOME GENERATION CHARACTERISTICS AVERAGE TAR PER ANNUM
SINCE IPO
• Average NIY at acquisition of 6.4%
•
13.9%
Low average rent per sq ft of £5.35 across our portfolio
• c.20% of our portfolio is subject to review or renewal in next 12-months
• Lowered debt costs of c.2.50% (subject to movements in LIBOR)
EXCITING PIPELINE TO MAINTAIN MOMENTUM AVERAGE RENT PER SQ.FT
• High quality logistics properties which are complementary to our existing portfolio
•
£5.35
Weighted average NIY of c.6.1% and WAULT of c.8.0 years
• Average rent per sq ft of c.£5.40
• Capital uplift potential plus tenant diversification
1. Source: Savills
URBAN LOGISTICS | 2021 FULL YEAR RESULTS 25APPENDIX URBAN LOGISTICS | 2021 FULL YEAR RESULTS 26
URBAN LOGISTICS REIT
Creating a responsible business
RESPOND TO CLIMATE CHANGE SOCIAL & GOVERNANCE
BOARD INDEPENDENCE
• Over 98% of our properties have • Engage with occupiers on a
66%
recorded Environmental regular basis and actively encourage dialogue
Performance Certificate (“EPC”)
ratings
• We spoke with our occupiers at least once a
month during the lockdown periods
• EPC ratings A-C: 76% as at
31 March 2021
• 66% of Board members are independent PROPERTIES WITH EPC RATING
A-C
• Implementing an EPC strategy
• 17% of Board members are female
•
for every individual asset in
the portfolio
• Audit and Management Engagement
Committees 100% independent 76%
Working towards GRESB and • The Board and Manager own 1.5% of the
EPRA sBPR. First GRESB rating issued share capital
expected next year
• Adoption of, and compliance with, Quoted
• All leases for the past Companies Alliance Corporate Governance
18-months encompass Code
“green clauses”
• EPRA Gold Award for March 2020 Annual
• Committed to our first Sustainable Report and Accounts
Green debt facility with Aviva
URBAN LOGISTICS | 2021 FULL YEAR RESULTS 27URBAN LOGISTICS REIT A Board with experience and expertise NIGEL RICH JONATHAN GRAY BRUCE ANDERSON HEATHER HANCOCK MARK JOHNSON RICHARD MOFFITT Independent Independent Independent Independent Non Independent Director and CEO Non-Executive Non-Executive Non-Executive Non-Executive Non-Executive Chairman Director Director Director Director Nigel brings a wealth of Jonathan has Bruce has considerable Heather brings many Co-founded Pacific Richard was formerly Board experience, considerable financial real estate, REIT and years of high-level Investments with Head of UK Industrial having operated across services experience financial services experience in strategy, Sir John Beckwith. and Logistics at CBRE. the globe in senior having worked in senior experience having governance and Richard has over 25 positions, most recently roles at HSBC, UBS worked in senior roles leadership in the real years’ experience of the at Segro plc where he and NCB. at Green, Lloyds, HBoS estate sector and UK Industrial and was Chairman for 10 and Bank wider economy. Logistics markets. years. of Scotland. URBAN LOGISTICS | 2021 FULL YEAR RESULTS 28
URBAN LOGISTICS REIT
Income statement
£m 31 Mar 21 31 Mar 20 Variance INCOME LEAKAGE
3.5%
Net rental income 22.9 12.2 +88.0%
Other income 0.2 -
Administrative expenses (4.2) (2.3)
(Mar 2020: 1.7%)
EBIT 18.8 9.9 +89.6%
Net finance costs1 (4.0) (2.7)
TOTAL COST RATIO
ADJUSTED EARNINGS 14.8 7.2 +105.7%
LTIP
EPRA EARNINGS
(0.3)
14.5
(3.5)
3.7 +287.1%
21.3%
Fair value movements 26.1 5.0 (Mar 2020: 18.9%)
Profit on disposal 7.0 0.6
INTEREST COVER RATIO
IFRS PROFIT 47.6 9.4 +408.6%
Adjusted earnings per share 6.76p 7.66p -11.7% 5.4x
EPRA earnings per share 6.62p 3.99p +65.9% (Mar 2020: 4.1x)
DIVIDEND PER SHARE2 7.60p 7.60p -
1. Adjusted for changes in fair value of interest rate derivatives
2. Paid and declared with respect to the financial year
URBAN LOGISTICS | 2021 FULL YEAR RESULTS 29URBAN LOGISTICS REIT
Balance sheet
£m 31 Mar 21 31 Mar 20 Movement TOTAL ACCOUNTING RETURN
15.6%
Investment property1 507.6 207.0 +145.2%
Cash 60.5 132.3
(Mar 2020: 5.6%)
Gross bank debt (199.4) (75.7)
LOAN TO VALUE
27.9%
Interest rate derivatives (1.1) (1.3)
Other net liabilities 19.9 (3.4)
(Mar 2020: N/A)
NET ASSETS 387.5 258.8 +49.7%
EPRA adjustments 1.1 1.3
EPRA NET TANGIBLE ASSETS 388.5 260.1 +49.4%
EPRA NTA PER SHARE 152.33p 137.89p +10.5%
1. Excludes right-of-use assets and tenant lease incentives
URBAN LOGISTICS | 2021 FULL YEAR RESULTS 30URBAN LOGISTICS REIT
EPRA NTA per share bridge
160.00p
155.00p
2.82p
152.33p
150.00p
11.75p
3.21p 4.34p
145.00p
6.62p
140.00p
137.89p +10.5%
135.00p
130.00p
125.00p
EPRA NTA EPRA earnings Profit on disposal Dividends Property Equity issue EPRA NTA
Mar 20 paid ¹ revaluation costs Mar 21
1. Dividend per share is based on weighted average number of shares in issue in the year.
URBAN LOGISTICS | 2021 FULL YEAR RESULTS 31URBAN LOGISTICS REIT
Financing overview
LOAN TO VALUE1 WEIGHTED AVERAGE COST OF DEBT
38.5% 3.2%
34.4% 33.7% 3.1% 3.1%
27.9% 3.0%
2.9%
0.0%
Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Mar-17 Mar-18 Mar-19 Mar-20 Mar-21
INTEREST COVER RATIO2 DEBT MATURITY (years)
4.7
5.4x
4.4x 4.4x 3.7
4.1x 3.5
3.3x 2.7
2.0
Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Mar-17 Mar-18 Mar-19 Mar-20 Mar-21
1. At 31 March 2020, the Group was in a net cash position, therefore, LTV was 0.0%
2. Interest cover for the financial years ended 31 March 2018 and 2020 has been adjusted to exclude exceptional costs with respect to the LTIP crystallisation
URBAN LOGISTICS | 2021 FULL YEAR RESULTS 32URBAN LOGISTICS REIT
Five year summary
FY 2017 FY 2018 FY 2019 FY 2020 FY 2021
Net rental income £2.3m £5.0m £10.1m £12.2m £22.9m
Adjusted earnings £1.1m £3.1m £5.9m £7.2m £14.8m
Adjusted earnings per share 7.82p 6.12p 7.01p 7.66p 6.76p
DIVIDEND PER SHARE 6.23p 6.32p 7.00p 7.60p 7.60p
Total cost ratio 22.3% 20.1% 23.5% 18.9% 21.3%
Number of stabilised assets 13 29 33 42 76
Portfolio valuation £43.4m £131.8m £186.4m £207.0m £507.6m
EPRA net tangible assets £25.5m £84.2m £121.2m £260.1m £388.5m
EPRA NTA PER SHARE 116.11p 122.49p 137.96p 137.89p 152.33p
EPRA NTA per share growth 16.1% 5.5% 12.6% 0.0% 10.5%
Loan to value 38.5% 34.4% 33.7% n/a 27.9%
TOTAL ACCOUNTING RETURN 19.1% 10.9% 17.7% 5.6% 15.6%
URBAN LOGISTICS | 2021 FULL YEAR RESULTS 33URBAN LOGISTICS REIT
Management arrangements
Investment management agreement runs to April 2024
ANNUAL MANAGEMENT LONG TERM INCENTIVE SHARE PRICE
EPRA NAV ELEMENT:
FEE: PLAN (“LTIP”): ELEMENT:
0.95% p.a. of the Group’s The LTIP has a NAV Element and a The EPRA NAV element will be 5 per The share price element would be 5
EPRA NAV up to, Share Price Element. cent. of the amount by which the per cent of the amount by which the
and including, £250m; It is assessed for the period Company’s EPRA NAV at the market capitalisation of the
from 7 February 2020 Second Calculation Date exceeds Company at the Second Calculation
(the “Revised First Calculation the Company’s EPRA NAV as at the Date exceeds the market
0.90% p.a. of the Group’s EPRA
Date”) to 30 September 2023 (the Revised First Calculation Date and capitalisation of the Company as at
NAV in excess of £250m and up to
“Second Calculation Date”). an annualised 10 per cent. hurdle the Revised First Calculation Date
and including £500m; and
thereon (adjusted for any new issue and an annualised 10 per cent.
of shares; all distributions including hurdle thereon (adjusted for any
0.85% p.a. of the Group’s inter alia dividends and any returns new issue of shares, all distribution
EPRA NAV in excess of £500m. of capital). including inter alia dividends and
any returns of capital).
• The LTIP payment shall be capped at three times the average annual management fees paid from 7 February 2020 to the Second
Calculation Date.
• If there is a change of control, the LTIP will continue to be assessed by applying the relevant offer price of the EPRA NAV element and
the share price element calculations at the date of the change of control.
• The LTIP will be paid in shares of Urban Logistics REIT plc, or, at the Board’s discretion, in cash.
URBAN LOGISTICS | 2021 FULL YEAR RESULTS 34IMPORTANT LEGAL NOTICE
This document has been prepared by Urban Logistics REIT plc (the "Company") solely for your information in connection with a pipeline Examples of forward-looking statements include, amongst others, statements regarding or which make assumptions in respect of the
update and possible equity fundraise by the Company. References in this disclaimer to "this document" shall be deemed to include any planned use of the proceeds for the possible equity fundraise by the Company, the Group's liquidity position, the future performance of the
accompanying verbal presentation. Group, future interest rates and currency controls, the Group's future financial position, plans and objectives for future operations and any
other statements that are not historical fact. By their nature, forward-looking statements involve risk and uncertainty because they relate to
This document has not been approved by the Financial Conduct Authority as a prospectus under the Prospectus Regulation Rules (made future events and circumstances, including, but not limited to, economic and business conditions, the effects of continued volatility in credit
under Part VI of the Financial Services and Markets Act 2000 ("FSMA")) or by London Stock Exchange plc, nor is it intended that any markets, market-related risks such as changes in interest rates and foreign exchanges rates, the policies and actions of governmental and
documents in connection with the Issue will be so approved in relation to the Company or any subsidiary of the Company (together the regulatory authorities, changes in legislation, the further development of standards and interpretations under IFRS applicable to past,
"Group"). This document does not constitute or form part of any prospectus, admission document, listing particulars, invitation or offer for current and future periods, evolving practices with regard to the interpretation and application of standards under IFRS, the outcome of
sale or solicitation or any offer to buy or subscribe for any securities nor will they or any part of them form the basis of, or be relied on in pending and future litigation or regulatory investigations, the success of future acquisitions and other strategic transactions and the impact
connection with, or act as any inducement to enter into, any contract or commitment. Recipients of this document should not use the of competition. A number of these factors are beyond the Company's control. As a result, the Company's actual future results may differ
information contained in this document to deal, or to recommend or induce another person to deal in the securities of the Company (or to materially from the plans, goals, and expectations set forth in the Company's forward-looking statements. Any forward-looking statements
attempt to do so). made in this document by or on behalf of the Company speak only as of the date they are made. These forward-looking statements reflect
the Company's judgement at the date of this document and are not intended to give any assurance as to future results. Except as required
by the FCA, the London Stock Exchange, the AIM Rules or applicable law, the Company expressly disclaims any obligation or undertaking
This document is confidential and is being supplied to you solely for your information and may not, without the Company’s consent, be
to release publicly any updates or revisions to any forward-looking statements contained in this document to reflect any changes in the
reproduced, distributed or otherwise disclosed to any other person or published, in whole or in part, for any purpose. You shall not use this
Company's expectations with regard thereto or any changes in events, conditions or circumstances on which any such statement is based.
document or the information contained herein in any manner detrimental to the Company. This document is being supplied to you for your
own information and may not be distributed, published, reproduced or otherwise made available to any other person, in whole or in part, for The acquisition of any potential investments by the Company is subject, among other things, to the Company completing satisfactory due
any purposes whatsoever. In particular and subject to limited circumstances set out below, it should not be distributed to or otherwise made diligence, successful negotiation of terms with vendors and the approval of the directors of the Company. There can be no guarantee that
available within the United States, Australia, Canada, New Zealand, the Republic of Ireland, the Republic of South Africa or Japan or in any any of the potential investments described in this document will be completed. All information relating to the potential investments
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requirements. The distribution of this document in other jurisdictions may be restricted by law, and persons into whose possession this
document come should inform themselves about, and observe, any such restrictions. Any failure to comply with these restrictions may N+1 Singer, which is a member of the London Stock Exchange plc, is authorised and regulated by the FCA and is acting as nominated
constitute a violation of the laws of the relevant jurisdiction. adviser and joint broker to the Company. N+1 Singer is not acting for, and will not be responsible to, any person other than the Company
for providing the protections afforded to its customers or for advising any other person on the contents of this document or on any
transaction or arrangement referred to in this document. N+1 Singer's responsibilities as the Company's nominated adviser under the AIM
These materials do not constitute an offer to sell, or a solicitation of an offer to buy, securities in the United States. The securities of the Rules are owed solely to the London Stock Exchange plc and are not owed to the Company, any director of the Company or to any other
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securities laws of any state of the United States. Any securities of the Company will only be offered or sold; (i) outside the United States in respect of, any of the contents of this document.
"offshore transactions" as defined in and pursuant to Regulation S under the US Securities Act; or (ii) within the United States to a limited
number of investors reasonably believed to be "qualified institutional buyers" ("QIBs") as defined in Rule 144A under the US Securities Act, Panmure Gordon is authorised and regulated by the FCA and is acting as joint broker to the Company. Panmure Gordon is not acting for,
pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the US Securities Act. There will be no and will not be responsible to, any person other than the Company for providing the protections afforded to its customers or for advising any
public offer of securities in the United States. other person on the contents of this document or on any transaction or arrangement referred to in this document. No representation or
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The information set out in this document is given at the date of its publication and is subject to updating, completion, revision, verification contents of this document.
and amendment without notice. No reliance may be placed for any purpose on the information or opinions contained in this document or on
their completeness, accuracy or fairness. Recipients of this document who are considering participating in any possible equity fundraise by Kinmont is authorised and regulated in the UK by the FCA and is acting as financial advisor to the Company. Kinmont is not acting for, and
the Company are reminded that any such purchase or subscription must be made only on the basis of information contained in the terms will not be responsible to, any person other than the Company for providing the protections afforded to its customers or for advising any
and conditions of the purchase or subscription which will be contained in any subscription material published by the Company in due other person on the contents of this document or on any transaction or arrangement referred to in this document. No representation or
course in connection with any such equity fundraise and which may be different from the information contained in this document. No warranty, express or implied, is made by Kinmont as to, and no liability is accepted by Kinmont in respect of, any of the contents of this
representation or warranty, express or implied, is given by or on behalf of the Company or any member of its Group or Pacific Capital document.
Partners Limited, Nplus1 Singer Advisory LLP ("N+1 Singer"), Panmure Gordon (UK) Limited ("Panmure Gordon") or Kinmont Limited
("Kinmont") or their respective shareholders, directors, members, officers, employees, agents, affiliates, representatives or advisers or any This document is for distribution in or from the UK only to persons authorised or exempted within the meaning of those expressions under
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This document contains (or may contain) certain forward-looking statements with respect to certain of the Company's plans and its current By accepting this document you agree to be bound by the foregoing limitations and restrictions and, in particular, will be taken to have
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These forward-looking statements can be identified by the fact that they do not relate only to historical or current facts. Forward-looking
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