Urban Logistics REIT : Annual Report and Accounts 2021

DRIVING PERFORMANCE

URBAN LOGISTICS REIT PLC

ANNUAL REPORT AND ACCOUNTS 2021

WE PROVIDE HIGH-QUALITY LOGISTICS PROPERTIES TO ENABLE OUR TENANTS TO OPERATE THE ESSENTIAL MODERN DISTRIBUTION NETWORKS DEMANDED BY E-COMMERCE.

VISIT OUR WEBSITE WWW.URBANLOGISTICSREIT.COM

URBAN LOGISTICS REIT PLC	1
Annual Report and Accounts 2021

CONTENTS

STRATEGIC REPORT pages 1 to 33

	Our Highlights	2
	At a Glance	4
	Chairman's Statement	6
	Business Model	8
	Q&A with the CEO	10
	Manager's Report	12
	Key Performance Indicators	25
	Principal Risks and Uncertainties	26
	s172 Statement and Stakeholder Engagement	29
	Environmental, Social and Governance	32
	GOVERNANCE pages 34 to 49
	Board of Directors	34
	Chairman's Corporate Governance Statement	36
	Audit Committee Report	40
	Management Engagement Committee Report	43
	Nomination Committee Report	44
	Directors' Report	45
	Directors' Responsibility Statement	49
	FINANCIAL STATEMENTS pages 50 to 83
	Independent Auditor's Report	50
	Consolidated Statement of Comprehensive Income	56
	Consolidated Statement of Financial Position	57
	Company Statement of Financial Position	58
	Consolidated Statement of Cash Flows	59
	Company Statement of Cash Flows	60
	Consolidated Statement of Changes in Equity	61
	Company Statement of Changes in Equity	62
	Notes to the Financial Statements	63
	Supplementary Information	80
	ADDITIONAL INFORMATION pages 84 to 92
	Glossary of Terms	84
	Company Information	85
	Financial Information	86
	Notice of Annual General Meeting	87

REPORT STRATEGIC

2		URBAN LOGISTICS REIT PLC
	Annual Report and Accounts 2021

OUR HIGHLIGHTS

Urban Logistics is the only listed company giving investors a focused exposure to urban logistics assets, which remains real estate's top performing sub-sector.

FINANCIAL HIGHLIGHTS

NET RENTAL INCOME

£22.9M

+88.0% 31 March 2020: £12.2m

ADJUSTED EPS1

6.76P

-11.7% 31 March 2020: 7.66p

DIVIDEND PER SHARE

7.60P

31 March 2020: 7.60p

TOTAL ACCOUNTING RETURN ("TAR")

15.6%

31 March 2020: 5.6%

IFRS NET ASSETS

£387.5M

+49.7% 31 March 2020: £258.8m

EPRA NTA PER SHARE2

152.33P

+10.5% 31 March 2020: 137.89p

IFRS PROFIT BEFORE TAX

£47.6M

+408.6% 31 March 2020: £9.4m

LOAN TO VALUE ("LTV")

27.9%

31 March 2020: n/a

1. A full reconciliation between IFRS earnings and adjusted earnings per share can be found in note 12 of the Financial Statements.
2. In October 2019, EPRA introduced new best practice recommendations for reporting of net asset value. The Group considers EPRA Net Tangible Assets ("NTA") to be the most relevant measure for its operating activities and has been adopted as the Group's primary measure of net asset value. Reconciliations for all EPRA performance measures are shown in the Supplementary Information to this Report. Prior year comparatives have been adjusted to reflect these new measures.

URBAN LOGISTICS REIT PLC	3
Annual Report and Accounts 2021

REPORT STRATEGIC

OPERATIONAL HIGHLIGHTS

PORTFOLIO VALUATION

£507.6M

+145.2% 31 March 2020: £207.0m

WAULT

7.4 years

31 March 2020: 4.9 years

LIKE-FOR-LIKE CONTRACTED RENT GROWTH2

6.5%

31 March 2020: 3.4%

EPC - % OF PORTFOLIO RATED A-C3

76.2%

31 March 2020: 84.4%

PORTFOLIO LIKE-FOR-LIKE

VALUATION GROWTH1

13.2%

31 March 2020: 4.6%

GROSS TO NET RENTAL INCOME RATIO

96.5%

31 March 2020: 98.3%

EPRA VACANCY RATE

6.9%

31 March 2020: 2.4%

TOTAL PROPERTY RETURN

17.1%

31 March 2020: 10.1%

1. Including the five assets sold on 25 March 2021.
2. Based on income producing assets at the start and end of each reporting period.
3. On a like-for-like basis EPCs are 84.4%.