Industrials REIT: Q4 2022 Update, Record Quarter of Lettings
MLI trading update Q4 FY22
Continued strong demand for affordable MLI space drives a record quarter of lettings
Industrials REIT Limited, the UK multi-let industrial (“MLI”) property company, today publishes a trading update on its MLI portfolio for the period 1 January 2022 to 31 March 2022 and up-to-date information on transactions and rent collection across the Company’s whole portfolio.
Commenting on the trading update Paul Arenson, CEO of Industrials REIT, said:
“We have had a record quarter for deal volumes following several substantial leasing transactions in Ashby de la Zouch and Paddock Wood. Even without these, the volumes were in line with previous quarters illustrating the continued depth of demand for MLI space across the UK. Average uplifts in rent across all new lettings and renewals averaged 22% for the quarter, with a record high of a 34% average uplift in rent on new lettings where competitive tension is the highest.
“Correspondingly we have seen an increase in like-for-like rents of 1.5% during the quarter and delivered our target income growth of 4-5% per annum. With a backdrop of strong demand and scant new supply of MLI space, coupled with the affordability of our rents as a proportion of our typical SME client’s operating costs, we see the potential for further rental growth continuing for the foreseeable future.
“Elsewhere, the lifting of the moratorium on taking action to recover unpaid rents on 26 March 2022 has restored the balance between landlords and tenants. Rent collections on the MLI portfolio from early in the pandemic are now 97%, with more recent periods indicating a path back towards pre-Covid collection rates of 98%+. Whilst Industrials REIT will continue to take a fair and reasonable approach to settling lockdown debts, we are confident that the impact of the pandemic upon rent collections is now behind us.
“We have had good success in acquiring further MLI estates for our portfolio this quarter, with £21 million of acquisitions and a strong pipeline of opportunities. We continue to buy assets at well below replacement cost with attractive cash flows and prospects for further rental growth and accretive asset management.”
Below is a link to the Trading Update Webinar for Q3 FY2022