MLI trading update Q1 FY 2023

Another strong quarter of leasing with continued diverse demand driving rental growth

Industrials REIT Limited, the UK multi-let industrial (“MLI”) property company, today publishes a trading update on its MLI portfolio for the period 1 April 2022 to 30 June 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:

“Since the start of the first quarter in April, the MLI market has continued to be driven by the same high level of occupier demand as last year. Given the backdrop of negative headlines around inflation, rising interest rates and the threat of recession, the fact that our MLI space remains highly affordable to our customers and that demand for space continues to outstrip supply across the UK, provides us with a great deal of comfort and confidence. These dynamics have combined with the quality of our well-located portfolio and the efficiency of our operating platform and enable us to report an average uplift in passing rent of 27% on new lettings and renewals completed during the quarter. Furthermore, like-for-like ERVs are up 11.4% over the last 12 months to £6.76 psf on average, providing further potential for income growth in the future.

“We have also seen continued successes with our asset management initiatives, generating attractive returns on capital expenditure through strategic investment in the portfolio. Further evolution in our Industrials Hive platform is also driving efficiency improvements in our marketing and leasing functions, particularly the speed at which we can relet space, as well as enhancing our customer service proposition.

“On the investment side, during the quarter we completed two small MLI acquisitions and sold a single-let asset in Reading, releasing funds for further accretive multi-let industrial opportunities. The UK commercial investment market is currently experiencing volatility as buyers take stock of rising interest rates and economic uncertainty. Industrials REIT remains well placed to capitalise on any opportunities which arise from this volatility, with a low LTV of 26% and free cash available to deploy into acquisitions at the right time.”

News in full

Below is a link to the Trading Update Webinar for Q1 FY2023