DRIVING PERFORMANCE 2021 FULL YEAR RESULTS - Urban Logistics REIT

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DRIVING PERFORMANCE 2021 FULL YEAR RESULTS - Urban Logistics REIT
DRIVING
PERFORMANCE
2021 FULL YEAR RESULTS
DRIVING PERFORMANCE 2021 FULL YEAR RESULTS - Urban Logistics REIT
AGENDA
                                           Page

Introduction                                  3

Highlights                                    7

Portfolio Review                             10

Market Outlook                               21

Summary                                      24

Appendix                                     26

URBAN LOGISTICS | 2021 FULL YEAR RESULTS          2
DRIVING PERFORMANCE 2021 FULL YEAR RESULTS - Urban Logistics REIT
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

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DRIVING PERFORMANCE 2021 FULL YEAR RESULTS - Urban Logistics REIT
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
DRIVING PERFORMANCE 2021 FULL YEAR RESULTS - Urban Logistics REIT
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
DRIVING PERFORMANCE 2021 FULL YEAR RESULTS - Urban Logistics REIT
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

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DRIVING PERFORMANCE 2021 FULL YEAR RESULTS - Urban Logistics REIT
HIGHLIGHTS

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DRIVING PERFORMANCE 2021 FULL YEAR RESULTS - Urban Logistics REIT
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.

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DRIVING PERFORMANCE 2021 FULL YEAR RESULTS - Urban Logistics REIT
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
DRIVING PERFORMANCE 2021 FULL YEAR RESULTS - Urban Logistics REIT
PORTFOLIO
REVIEW

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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                                                                                                                                        11
URBAN 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                                                                                                                                                 12
URBAN 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

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URBAN 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)

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URBAN 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)

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URBAN 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                                                                             16
URBAN 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                                                                                     17
URBAN 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                                                                                        18
URBAN 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                                                              19
URBAN 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                                                                                                              20
MARKET
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                                                                                                          22
URBAN 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                                                                                                                                            23
SUMMARY

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                                                                                              25
APPENDIX

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                                                                                    27
URBAN 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                                                                                       29
URBAN 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                                                                                   30
URBAN 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                                                                                                          31
URBAN 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                                                                                                                                                   32
URBAN 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                                                     33
URBAN 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                                                                                                                          34
IMPORTANT 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
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other jurisdiction outside of the United Kingdom where such distribution or availability may lead to a breach of any law or regulatory             described in this document are indicative, subject to detailed due diligence and may subsequently change as a result.
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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"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
                                                                                                                                                   warranty, express or implied, is made by Panmure Gordon as to, and no liability is accepted by Panmure Gordon in respect of, any of the
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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to this document.                                                                                                                                  immediately to the Company, N+1 Singer or Panmure Gordon.

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
goals and expectations relating to its future financial condition and performance and which involve a number of risks and uncertainties. No        represented, warranted and undertaken that: (i) you have read and agree to comply with the contents of this notice; (ii) if you are located in
forward-looking statement is a guarantee of future performance and actual results could differ materially from those contained in the              the United States, you are a QIB; (iii) you will observe the foregoing provisions, limitations and conditions; and (iv) you will not forward this
forward-looking statements.                                                                                                                        document (including any information given in the verbal presentation of the slides) to any other person, or reproduce or publish this
                                                                                                                                                   document, in whole or in part, for any purpose.
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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URBAN LOGISTICS | 2021 FULL YEAR RESULTS                                                                                                                                                                                                                                                           35
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