(Alliance News) - Urban Logistics REIT PLC on Thursday remained optimistic about its future prospects after posting an interim earnings rise, despite being unable to buy new assets.

For the six months ended September 30, the UK-focused logistics real estate investment trust reported pretax profit of GBP16.9 million, multiplying from GBP2.4 million a year prior.

Revenue came to GBP29.7 million, up 12% from GBP26.5 million the previous year. Net rental income was GBP28.5 million, up 12% from GBP25.4 million.

As at September 30, net asset value per share was 162.32 pence, versus 184.54p year-on-year.

"Of all areas in commercial real estate, the logistics market retains some of the strongest fundamentals. Our belief is that the Urban Logistics sub-sector, comprising well located, single let logistics warehousing serving the UK's urban areas, remains the most exciting part of this market," said Investment Adviser Chief Executive Officer Richard Moffitt.

Yet according to Urban Logistics' announcement on Thursday, it will not be possible for the firm to raise money to buy assets in the near future, as its shares are trading "at a substantial discount".

"We will continue to recycle mature assets for those offering asset management opportunities and actively manage the existing portfolio to capture the reversionary value in the rents," said Urban Logistics.

It added: "We do not believe this is the time to radically increase the LTV. While we will regularly review the desirability of conducting share buy backs it will be in the context of asset acquisition opportunities and the self-imposed restriction on LTV."

The firm declared an interim dividend of 3.25p, unchanged from a year prior.

Urban Logistics REIT shares were trading 0.2% lower at 116.00 pence each in London around midday on Thursday.

By Holly Beveridge, Alliance News reporter

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