Urban Logistics collects nearly all rent due as demand for warehouses remains high

Urban Logistics has demonstrated how the warehouse property sector has performed well during the pandemic, by reporting that it collected more than 99% of rent due in the first half.

While many retail landlords and some office owners have seen lower rental income during the Covid-19 crisis as lockdowns bit, firms that own warehouses have seen high demand for space. Many online retailers have needed extra transport and storage facilities to cope with strong order levels.

Urban Logistics said in the six months to September 30 it had 99.4% occupancy across 91 properties.

It added that it completed 15 new lease deals across the portfolio, totalling 813,939 square feet during the period.

Chief executive Richard Moffitt, said: "The logistics real estate sector continues to enjoy very positive market conditions in recent months with an ongoing supply and demand imbalance for suitable properties.”

The AIM-listed company said its directors believe that the market capitalisation of the company now justifies a move to the premium segment of the main market.

It is valued at around £552 million.