# Urban Logistics a realistic growth stock? Mike Foster Reveals all (Interview)

- Link: https://www.directorstalkinterviews.com/urban-logistics-a-realistic-growth-stock-mike-foster-reveals-all-interview/412805916
- Published: 2020-02-19T08:09:40+00:00
- Author: Giles Arbor

**Urban Logistics Reit PLC** (LON:SHED) is the topic of conversation when Mike Foster,
Analyst at Hardman & Co joins DirectorsTalk. Mike explains what the company does,
why rents are low, supply and demand, risks involved, if this is a realistic growth
stock, key valuation metrics and stock rating.

Urban Logistics REIT focus on a specialist sub-sector of the UK real estate market,
investing in industrial and logistics properties that enable businesses to operate
essential modern distribution networks capable of responding to the challenges created
by e-commerce and evolving infrastructure demands.

The supply of urban logistics assets in the UK is constrained by a variety of factors
which, taken together with the shift towards online commerce and the need for faster
supply chains, creates heightened demand for well-located smaller-sized warehouses.

We are building a portfolio of high quality assets with strong income generating
and capital growth capabilities through a diverse base of tenants operating in a
variety of sectors. Acquisitions are added to the portfolio through a mix of equity
and conservative levels of debt, targeting Net Initial Yields of 6.0% to 7.5% with
affordable underlying rents in the region of £4.50 to £5.50 per sq.ft.. We actively
manage our acquired assets, enabling us to deliver attractive returns to shareholders.

Share on: