UK Commercial Property Reit Limited (UKCM)

Sector:

Real Estate

Index:

FTSE 250

80.00p
   
  • Change Today:
      2.30p
  • 52 Week High: 81.20
  • 52 Week Low: 59.80
  • Currency: UK Pounds
  • Shares Issued: 1,299.41m
  • Volume: 4,971,421
  • Market Cap: £1,039.53m
  • RiskGrade: 248

UK Commercial Property REIT buys five distribution warehouses for GBP85.4m

By Michele Maatouk

Date: Monday 24 Dec 2018

LONDON (ShareCast) - (Sharecast News) - UK Commercial Property REIT has announced the acquisition of a portfolio of five distribution warehouses across the Midlands from Clipstone Logistics REIT for £85.4m, reflecting a headline net initial yield of 5.5%.
The acquisition has been funded from existing cash resources and is a continuation of the company's strategy to recycle capital from the sale of lower yielding assets into higher yielding opportunities with sustainable income.

The portfolio totals 909,030 sq ft and is 100% let to a diverse mix of tenants with a low average headline rent of £5.52 per sq ft, and an unexpired lease term of 7.4 years to break and 9.6 years to expiry. The acquisition is earnings accretive and will increase dividend cover by around 10%.

The assets are strategically located on established industrial parks across the East and West Midlands, close to the M1 and M6 motorways, at Cannock, Derbyshire, Leicester, Stoke-on-Trent and Newcastle-Under-Lyme. UK Commercial Property REIT said the offer good connections by road as well as access to strong local workforces, which is becoming an increasingly important factor for tenants in deciding where to locate.

Tenants include Clipper Logistics, Roca Limited, Bestway Pharmacy NDC Limited, Rhenus Logistics Limited and TJX UK, the owner of TK Maxx.

Will Fulton, lead manager of UKCM at Aberdeen Standard Investments, said: "We believe that this acquisition is an excellent use of the proceeds from previous disposals, boosting the company's property yield and balancing our exposure to the industrial sector, which has good prospects for rental growth, through the addition of more diverse and well located regional assets. It will be immediately earnings enhancing and provides income security from strong tenants, many of whom have invested significantly in the properties.

"As the structural changes from the widespread adoption of e-commerce in the UK pervade, a trend which has proven resilient against a backdrop of Brexit negotiations, we expect the outperformance of the logistics market to continue as occupier demand for space remains high."

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Note 1: Prices and trades are provided by Digital Look Corporate Solutions and are delayed by at least 15 minutes.

Note 2: RiskGrade figures are provided by RiskMetrics.

 

UKCM Market Data

Currency UK Pounds
Share Price 80.00p
Change Today 2.30p
% Change 2.96 %
52 Week High 81.20
52 Week Low 59.80
Volume 4,971,421
Shares Issued 1,299.41m
Market Cap £1,039.53m
RiskGrade 248

UKCM Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
4.64% above the market average4.64% above the market average4.64% above the market average4.64% above the market average4.64% above the market average
55.1% below the sector average55.1% below the sector average55.1% below the sector average55.1% below the sector average55.1% below the sector average
Price Trend
12.44% below the market average12.44% below the market average12.44% below the market average12.44% below the market average12.44% below the market average
1.89% below the sector average1.89% below the sector average1.89% below the sector average1.89% below the sector average1.89% below the sector average
Income
48.91% above the market average48.91% above the market average48.91% above the market average48.91% above the market average48.91% above the market average
23.08% below the sector average23.08% below the sector average23.08% below the sector average23.08% below the sector average23.08% below the sector average
Growth
65.98% below the market average65.98% below the market average65.98% below the market average65.98% below the market average65.98% below the market average
73.08% below the sector average73.08% below the sector average73.08% below the sector average73.08% below the sector average73.08% below the sector average

What The Brokers Say

Strong Buy 0
Buy 1
Neutral 0
Sell 0
Strong Sell 0
Total 1
buy
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UKCM Dividends

  Latest Previous
  1st Interim 5th Interim
Ex-Div 13-May-21 06-May-21
Paid 28-May-21 21-May-21
Amount 0.64p 0.53p

Trades for 18-Jun-2021

Time Volume / Share Price
17:05 11,658 @ 80.00p
16:50 98,537 @ 80.00p
16:48 107,568 @ 80.00p
16:48 21,258 @ 80.00p
16:47 9,208 @ 80.00p

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