Yahoo Finance Urban Logistics sees rental income jump, with warehouses in demand
Urban Logistics owns warehouses across the UK
(Urban Logistics)Urban Logistics said its rental income soared during the pandemic, as the warehousing landlord experienced high tenant demand for space during a period when online orders jumped.
Chairman Nigel Rich said: “During the worst periods of the pandemic, the high streets were empty with shops and hospitality closed in the successive lockdowns. Household needs were provided by e-commerce. Life will return to the high streets but the trend towards e-commerce, which preceded the pandemic, is likely to continue.”
The company counts Amazon and a number of third-party logistics firms among its tenant base.
Watch: Am I wasting my money by renting?
Urban Logistics posted net rental income of £22.9 million for the year to March, up from £12.2 million. It said that was driven by rent increases on a comparable basis and from new properties that were purchased.
It agreed a number of acquisitions during the period, contributing to the value of the estate jumping to £508 million from £207 million.
During the year more than 99% of rent due has been collected.
Unlike other parts of the commercial property market, such as high street retail, where a number of landlords have struggled to collect payments due to Covid-19 disruption, warehouse investors have had more success.
Miranda Cockburn, real estate analyst at house broker Panmure Gordon, said: “The urban logistics sub-sector remains well-placed to benefit from ongoing tenant demand and we expect further rental growth given limited supply of space.”
Watch: What UK government COVID-19 support is available?
Read More
