(Alliance News) - Urban Logistics REIT PLC on Thursday said that it is "well set" to eventually increase its dividend, after swinging back to profit in the year just ended.
For the year ended March 31, the UK-focused logistics real estate investment trust reported pretax profit of GPB24.7 million, swung from a loss of GBP82.7 million a year prior.
Net rental income came to GBP57.4 million from GBP53.0 million, attributed to a full year of income from assets acquired in the previous year, as well as "significant asset management activity".
Adjusted earnings, however, remained broadly flat, with adjusted earnings per share falling to 6.89 pence from 6.93p a year earlier. Urban Logistics noted the impact of higher interest costs from a full year of interest from debt drawn in the year prior, as well as higher interest rates.
The firm declared a dividend of 7.60p per share, unchanged from a year prior.
Looking ahead, Urban Logistics offered an optimistic outlook, noting that opportunities "should emerge once again" as inflation falls.
"The portfolio has performed well through the property cycle, and we are well set to grow earnings, allowing us to maintain and ultimately grow the dividend. We continue to believe that our shares trade at a value which does not reflect either the demand for the underlying real estate or the operational performance of the company, and believe there is significant upside to be captured in the years ahead," said Chair Nigel Rich.
Shares in Urban Logistics REIT were trading 0.3% higher at 122.81 pence each in London on Thursday morning.
By Holly Beveridge, Alliance News senior reporter
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Urban Logistics (SHED)