TIDMPILR
RNS Number : 8543F
Pacific Industrial & Log REIT PLC
26 February 2018
Pacific Industrial & Logistics REIT plc
("Pacific Industrial & Logistics" or the "Company")
Trading Update
Overview
Proceeds from the Company's placing in August 2017 have been
fully invested. When combined with the Company's existing
portfolio, the recent acquisitions bring the total value of the
Company's portfolio to approximately GBP125m:-
-- Total of 28 assets with 31 tenancies and a limited vacancy
rate of 6.4%
-- Weighted average unexpired lease term of 5.2 years across the
portfolio
-- Weighted average purchase yield since IPO of 7.4%
-- Low average rents of GBP4.88 per sq. ft. with significant
upside potential
Richard Moffitt, Chief Executive, commented:
"We remain focused on growing our portfolio of urban logistics
assets, enabling our diverse tenant base to meet the challenges of
e-commerce, modern logistics and changing infrastructure
demands.
"Urban logistics as a subsector continues to outperform the
wider real estate market - proving to be resilient to the
challenges presented by Brexit and other shifting economic
dynamics. We expect c.GBP4bn of assets to change hands in 2018,
enabling us to selectively focus on high-quality assets which will
underpin our returns. The Company remains ambitious to build a
bigger business and, with a strong pipeline of off-market
opportunities, continues to assess potential additional equity and
debt financing for further acquisitions."
Acquisitions and disposals
Recent acquisitions (GBP37.3m in total) included:-
-- Six logistics assets acquired for GBP31.5m at a net initial
yield of 7.1%. Current tenants include DHL, who occupy three of the
warehouses (c.53% of acquired rent roll)
-- Moulton Park, Northampton acquired for GBP3.0m at a net
initial yield of 6.4%, let to Panther Logistics
-- Seacroft, Leeds acquired for GBP2.8m at a net initial yield
of 6.8%, let to Komori UK Limited and Pharmacy2u Limited
In addition, the GBP5.8m disposal of an asset in Bedford
delivered a 6.0% net initial yield and a return of 64% on the April
2016 purchase cost.
Asset management
Across the existing portfolio:-
-- Rent review agreed at a 44,195 sq. ft. site in Bedford at
GBP6.00 per sq. ft., a 66% increase to existing passing rent
-- Break options were removed across several sites, including
assets in:
-- Bardon (73,791 sq. ft.), unexpired term to 2024
-- Haverhill (232,320 sq. ft.), unexpired term to 2023
-- Planning has been submitted to add a further 25,000 sq. ft.
of distribution capacity at a site located on Edison Road,
Bedford
Financing
The Company's loan facility with Santander has been extended to
a five-year term from December 2017 at a margin of 210bps. The
Company has fixed terms over 70% of the drawn balance for five
years, representing an all-in cost of c.3.3%. The loan-to-value
across the Company's portfolio is currently 39%.
Outlook
The Company expects to pay total dividends of not less than 6.0
pence per share in respect of the financial year to 31 March
2018.
The Board anticipates that year-end earnings and portfolio
valuation to 31 March 2018 will be in line with market
expectations. Preliminary results will be announced in May
2018.
In addition, the Board is considering various potential
acquisitions and the necessary equity and debt financing to
complete them.
- Ends -
For further information contact:
Pacific Industrial &
Logistics REIT plc
Richard Moffitt +44 (0)20 7591 1600
Canaccord Genuity - Nominated
Adviser and Broker
Simon Bridges
Charlie Foster
Andrew Buchanan +44 (0)20 7523 8000
Montfort - Financial
PR and IR adviser
Nick Miles
Olly Scott +44 (0)78 1234 5205
About Pacific Industrial & Logistics REIT
Pacific Industrial & Logistics REIT plc is a property
investment company, quoted on the AIM market of the London Stock
Exchange, (AIM: PILR).
The Company has been established to invest in UK based
industrial and logistics properties with the objective of
generating attractive dividends and capital returns for its
shareholders. Its investment strategy focuses on strategically
located smaller single let industrial and logistics properties
servicing high-quality tenants. Investment returns will be
generated by an experienced management team focusing on quality
stock selection and active asset management.
A number of structural and commercial factors currently support
the attractive opportunity in the last mile/regional industrial and
logistics real estate sub-sectors targeted by the Company,
including: strong occupier demand, (driven by the growth of
e-commerce and investment by retailers in their associated supply
chain) and a decline in the supply of lettable space in industrial
and logistics real estate across the UK (being more than one third
lower than the most recent peak of 2009).
Acquisitions are targeted in the 6.0-7.5% net initial yield
bracket, (with affordable underlying rents in the region of
GBP4.50-GBP5.50 per sq ft.), on an overall LTV of 35-40% and a
significant margin over financing costs, thus presenting attractive
income, capital growth and total return opportunities.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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Pacific Ind (LSE:PILR)
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Pacific Ind (LSE:PILR)
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부터 6월(6) 2023 으로 6월(6) 2024