Urban Logistics REIT plc (SHED) AI Stock Analysis

• Market Cap: £721.82M
• Dividend Yield: 5.61%
• Average Volume (3M): 9.69M
• Price to Earnings (P/E): 40.4
• Beta (1Y): 1.32
• Revenue Growth: 4.41%
• EPS Growth: N/A
• Country: UK
• Employees: N/A
• Sector: Real Estate
• Sector Strength: 73
• Industry: REIT - Industrial
• EPS (TTM): 0.04
• Shares Outstanding: 465,088,000
• 10 Day Avg. Volume: 9,370,741
• 30 Day Avg. Volume: 9,686,928
• PEG Ratio: -1.43
• Price to Book (P/B): 0.93
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 14.87
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: £145.00
• Price Target Upside: -7.29% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 73 Outperform
• Price Target: ―

Urban Logistics REIT plc scores well due to strong revenue growth, high gross profit margins, and strategic corporate actions like potential acquisitions and effective asset management. While technical indicators are bullish, valuation concerns due to a high P/E ratio and inconsistent profitability slightly temper the outlook. Nonetheless, the stock remains appealing due to its dividend yield and strategic initiatives.

Urban Logistics REIT plc Business Overview & Revenue Model

Company Description

Urban Logistics REIT plc (the Company) and its subsidiaries (the Group) carry on the business of property lettings throughout the United Kingdom. The Company is a public limited company incorporated and domiciled in England and Wales and listed on AIM, part of the London Stock Exchange. The registered office address is 124 Sloane Street, London, SW1X 9BW.

How the Company Makes Money

Urban Logistics REIT plc generates revenue primarily through the rental income from its logistics and warehouse properties. The company's revenue model is built on leasing these properties to tenants under long-term agreements, ensuring a stable and recurring income stream. The demand for logistics and warehouse space is driven by the growth of e-commerce and the need for efficient supply chain management, making these properties valuable assets. Additionally, the company may enhance its earnings through strategic acquisitions of new properties, property management services, and through capital appreciation of its real estate portfolio. Urban Logistics REIT may also engage in partnerships with other real estate developers or investors to expand its property offerings and enhance its market position.

Urban Logistics REIT plc Financial Statement Overview

Summary

Urban Logistics REIT plc shows strong revenue growth and high gross profit margins, reflecting healthy operations. However, inconsistent profitability and fluctuating net income impact stability. The balance sheet indicates moderate leverage and a strong equity base, while cash flow reveals potential volatility despite robust free cash flow.

Income Statement

Urban Logistics REIT plc has shown strong revenue growth, with a notable increase from £12.6M in 2020 to £60.1M in 2024, demonstrating a robust growth trajectory. The Gross Profit Margin is high at 95.8% for 2024, indicating efficient cost management. However, the Net Profit Margin has fluctuated significantly, turning negative in 2023 due to a large reported net loss, which impacts profitability stability.

Balance Sheet

The company's Debt-to-Equity Ratio is moderate, indicating balanced leverage, but an increase in total debt over the years suggests growing financial obligations. The Equity Ratio stands at 66.1% in 2024, reflecting a strong equity position in total assets. Return on Equity has been inconsistent, with negative values in 2023 affecting the overall performance.

Cash Flow

Urban Logistics REIT plc's Free Cash Flow has grown over the years, but fluctuations in operating cash flow indicate potential volatility. The Operating Cash Flow to Net Income Ratio is inconsistent, with periods of negative net income affecting cash flow stability. Despite this, positive free cash flow growth reflects financial resilience.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
60.86M	60.10M	55.30M	37.81M	24.18M	12.60M
	Gross Profit
57.92M	57.59M	52.99M	36.55M	22.87M	12.16M
	EBIT
44.94M	41.51M	47.71M	26.30M	18.51M	6.46M
	EBITDA
49.39M	0.00	47.84M	26.39M	18.56M	6.48M
	Net Income Common Stockholders
18.12M	24.74M	-82.66M	171.77M	47.60M	9.36M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.68M	31.01M	30.16M	127.38M	60.46M	132.28M
	Total Assets
45.63M	1.15B	1.16B	1.18B	611.68M	343.29M
	Total Debt
18.20M	359.03M	356.49M	248.18M	206.20M	76.56M
	Net Debt
16.52M	334.81M	326.33M	120.80M	145.74M	-55.72M
	Total Liabilities
20.26M	389.30M	387.55M	286.43M	224.22M	84.53M
	Stockholders Equity
25.37M	758.64M	769.76M	892.63M	387.45M	258.76M
Cash Flow		Free Cash Flow
45.84M	46.59M	33.77M	405.79M	254.15M	7.39M
	Operating Cash Flow
45.84M	46.59M	33.77M	52.36M	-11.17M	7.39M
	Investing Cash Flow
-44.50M	3.33M	-201.30M	-353.43M	-265.32M	-14.29M
	Financing Cash Flow
-2.93M	-49.80M	70.31M	367.99M	204.67M	129.42M

Urban Logistics REIT plc Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 156.40
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:SHED, the sentiment is Positive. The current price of 156.4 is above the 20-day moving average (MA) of 152.91, above the 50-day MA of 142.46, and above the 200-day MA of 118.47, indicating a bullish trend. The MACD of 3.41 indicates Positive momentum. The RSI at 59.88 is Neutral, neither overbought nor oversold. The STOCH value of 36.07 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:SHED.

Urban Logistics REIT plc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BBOX	81 Outperform	£3.67B	7.52	11.28%	5.17%	38.97%	417.46%
WHR	77 Outperform	£452.90M	10.86	7.68%	6.00%	0.17%	―
PRSR	76 Outperform	£629.44M	5.74	15.17%	3.84%	16.81%	89.02%
SGRO	74 Outperform	£9.54B	15.77	5.18%	5.77%	-9.88%	―
SHED	73 Outperform	£721.82M	40.42	2.39%	5.61%	4.41%	―
Sector *	61 Neutral	$2.85B	10.99	0.40%	6.10%	5.75%	-21.23%
ASLI	53 Neutral	£247.30M	96.77	0.71%	5.00%	-7.28%	―

Urban Logistics REIT plc Corporate Events

Urban Logistics REIT Engages in Potential Acquisition Talks

Urban Logistics REIT plc announced that Achilles Investment Company Limited has withdrawn its requisition for a general meeting following discussions of a potential offer from LondonMetric Property plc. The board is engaged in discussions with LondonMetric regarding a possible recommended offer, though there is no certainty of an offer being made. Stakeholders are advised to await further announcements as confirmatory due diligence is underway, with a deadline set for LondonMetric to declare its intentions by May 9, 2025.

Spark’s Take on GB:SHED Stock

According to Spark, TipRanks’ AI Analyst, GB:SHED is a Outperform.

Urban Logistics REIT plc receives a solid score of 72, reflecting its strong revenue growth, high gross profit margins, and effective strategic initiatives, such as acquisitions and internal management shifts. However, the company’s inconsistent profitability and liquidity volatility slightly offset these strengths. The bullish technical indicators and attractive dividend yield support the stock’s appeal, despite a high P/E ratio suggesting overvaluation.

To see Spark’s full report on GB:SHED stock, click here.

Urban Logistics REIT Considers Acquisition Proposal from LondonMetric

Urban Logistics REIT plc has received a revised proposal from LondonMetric Property plc for a possible acquisition, which would involve Urban Logistics shareholders receiving new shares in LondonMetric and a cash component. The proposal values Urban Logistics at approximately £674 million, offering a significant premium over its recent share prices. The Board of Urban Logistics is considering the proposal, noting potential benefits such as increased value, continued participation in the logistics sector, and enhanced liquidity. Discussions are ongoing, and the internalization of management arrangements has been paused in light of the offer.

Spark’s Take on GB:SHED Stock

According to Spark, TipRanks’ AI Analyst, GB:SHED is a Outperform.

Urban Logistics REIT plc receives a solid score of 72, reflecting its strong revenue growth, high gross profit margins, and effective strategic initiatives, such as acquisitions and internal management shifts. However, the company’s inconsistent profitability and liquidity volatility slightly offset these strengths. The bullish technical indicators and attractive dividend yield support the stock’s appeal, despite a high P/E ratio suggesting overvaluation.

To see Spark’s full report on GB:SHED stock, click here.

Urban Logistics REIT Receives Preliminary Offer from LondonMetric

Urban Logistics REIT plc has received a preliminary proposal from LondonMetric Property plc regarding a potential offer for the company. The board is reviewing the proposal with advisors, and while there is no certainty of an offer being made, stakeholders are advised to await further announcements. This development could impact Urban Logistics’ market positioning and shareholder interests, pending the outcome of the review.

Spark’s Take on GB:SHED Stock

According to Spark, TipRanks’ AI Analyst, GB:SHED is a Outperform.

Urban Logistics REIT plc receives a solid score of 72, reflecting its strong revenue growth, high gross profit margins, and effective strategic initiatives, such as acquisitions and internal management shifts. However, the company’s inconsistent profitability and liquidity volatility slightly offset these strengths. The bullish technical indicators and attractive dividend yield support the stock’s appeal, despite a high P/E ratio suggesting overvaluation.

To see Spark’s full report on GB:SHED stock, click here.

Urban Logistics REIT Enhances Portfolio with Strategic Acquisitions

Urban Logistics REIT plc announced the acquisition of two logistics assets for £21.1 million, following recent disposals of £26.3 million. The acquisitions, located in Leeds and Liverpool, offer a blended net initial yield of 7.34%, significantly higher than the disposal yield, enhancing the company’s income and asset management opportunities. These strategic moves align with Urban Logistics’ proactive strategy to grow income and rebalance its portfolio, reinforcing its position in the logistics real estate market.

Urban Logistics REIT Faces Board Requisition Challenge

Urban Logistics REIT plc has received a requisition for a general meeting from Achilles Investment Company Limited, proposing changes to the board of directors. The current board recommends voting against these changes and plans to present shareholders with comprehensive information on the company’s potential and governance strategies. The board is also working on finalizing an internalization proposal based on shareholder feedback, aiming to enhance shareholder value.

Urban Logistics REIT Announces Strategic Moves and Shareholder Consultation

Urban Logistics REIT plc has announced a shareholder consultation exercise regarding its proposed internalization, which aims to enhance alignment with shareholders and secure a leading logistics real estate management team. The company has also disposed of three assets for £26.3 million, reflecting a strategic move to recycle capital into higher-yielding opportunities. With 122 asset management opportunities identified, Urban Logistics is poised for significant EPS growth and capital value uplift. The company continues to benefit from strong sector dynamics, including high tenant demand and limited new space availability, positioning it well for future growth.

Urban Logistics REIT Announces Internal Management Shift and Shareholder Support

Urban Logistics REIT plc has announced a move towards an internalized management structure, highlighting the potential for significant rental increases and strategic asset acquisitions. The company has engaged in discussions with shareholders, who largely support the proposals, and clarified that no corporate acquisition offers have been received, though any future offers will be evaluated accordingly.

Urban Logistics REIT Boosts Portfolio with New Lettings

Urban Logistics REIT plc has successfully completed new lettings over five logistics units, totaling 301,000 square feet and securing an annual headline rent of £3.0 million. This activity has reduced portfolio vacancy from 8.1% to 6.2%, demonstrating strong demand in the logistics sector. The transactions, including notable leases in Doncaster and Southampton, highlight the company’s effective asset management and ability to exceed target rental levels, contributing to capital growth and enhanced property value.