STRONG HALF YEAR RESULTS WITH LIKE-FOR-LIKE MLI VALUATION GROWTH IN THE PERIOD OF 8.7%

Industrials REIT Limited (‘Industrials REIT’ or the ‘Company’ and together with its subsidiaries, the ‘Group’), the specialist UK multi-let industrial (‘MLI’) property company, announces results for the six months to 30 September 2021 which show continued rental and asset value growth across the MLI portfolio.

Commenting on the results Paul Arenson, CEO of Industrials REIT, said:

“Over the course of the first half we have seen consistently high occupier demand for space in our multi let portfolio, right across the UK. This helped drive rental growth and has also driven strong valuation growth of 8.7%. We have also been active in growing our MLI portfolio, acquiring seven new estates since the start of the financial year and a further four post period end, for a total consideration of

£59.8 million. With the disposals agreed to date, we remain on track to be a fully focused MLI REIT by year end. We look forward to the second half with a high degree of confidence that these trends will continue.”

MLI Operational Highlights: Continued rental growth and strong occupier demand

• Four consecutive quarters of 20%+ average growth in rent at lease renewal or upon new letting now recorded
• 5.0%^ growth in like-for-like annual passing rent (2020: 5.1%), with a 5.1%^ increase in like-for-like annual ERV (2020: 4.2%)
• Occupancy remained robust at 93.9%, up from 93.7% at 31 March 2021
• Strong rent collections with over 95% of invoices billed in 2020 now paid and 2021 trending to the same level

Continued progress in investment strategy with transition to 100% MLI on track

• Seven MLI estates acquired in the period for an aggregate purchase price of £36.5 million, generating an additional £2.5 million of rental income per annum
• Purchase of a further four MLI estates completed post period end for £23.3 million in total, generating an additional £1.7 million of annualised rental income
• Completed the sale of two non-MLI assets in separate transactions for £82 million in aggregate during the period reflecting a 1.4% discount to March 2021 valuations
• On 10 November 2021, a contract of sale for the Switzerland property, known as Lugano, was signed and notarised for CHF12.5 million (£9.9 million;31 March 2021 book value: £12.0 million). We anticipate completion in the next few weeks. The balance sheet at 30 September 2021 reflects this lower sale valuation

• MLI 92.5% of total portfolio based on valuations as at 30 September 2021, compared to 74.3% at year end, with the Company on track to achieve 100% MLI target by 31 March 2022

Financial Highlights: Net asset value continues to grow

• Total accounting return of 9.8% for the six-month period (2020: 6.8%)
• 59.2% increase in diluted IFRS EPS to 13.34 pence (2020: 8.38 pence) with adjusted EPS increasing to 3.45 pence (2020: 3.40 pence)
• Declared covered interim dividend of 3.375 pence per share (2020: 3.375 pence), with guidance maintained for full year dividend of at least 6.75p
• 7.4% increase in diluted IFRS net asset value per share to £1.59 (31 March 2021: £1.48)
• 7.5% increase in EPRA NTA per share to £1.58 (31 March 2021: £1.47)
• Portfolio valued at £574.0 million (31 March 2021: £582.3 million) reflecting transactions in the period and revaluations
• Like-for-like valuation growth of 7.5%, driven largely by an 8.7% like-for-like MLI portfolio valuation increase

^ The 5.0% growth in like-for-like annual passing rent is restated from 6.7% reported in the Q2 trading update issued by the Company on 29 October 2021. The discrepancy arose as like-for-like data inadvertently included an acquisition from December 2020, which formed part of an already owned estate, Capital Business Park in Cardiff. The same applies to like-for-like ERV growth which is restated from 6.5% to 5.1%.

News in full

In the film below Industrials REIT CEO Paul Arenson highlights the ongoing trend to MLI, hastened by the COVID enforced lockdowns