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Urban Logistics REIT plc (GB:SHED)
LSE:SHED

Urban Logistics REIT plc (SHED) AI Stock Analysis

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Urban Logistics REIT plc

(LSE:SHED)

Rating:73Outperform
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 (SHED) vs. iShares MSCI United Kingdom ETF (EWC)

Urban Logistics REIT plc Business Overview & Revenue Model

Company DescriptionUrban Logistics REIT plc (SHED) is a United Kingdom-based real estate investment trust specializing in the logistics sector. The company focuses on acquiring and managing a diverse portfolio of strategically-located logistics and warehouse properties across the UK. These properties are crucial for the supply chain operations of a wide range of customers, including e-commerce, manufacturing, and distribution companies, facilitating efficient delivery and storage solutions.
How the Company Makes MoneyUrban 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
75
Positive
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
70
Positive
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
68
Positive
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.
BreakdownTTMMar 2024Mar 2023Mar 2022Mar 2021Mar 2020
Income Statement
Total Revenue60.86M60.10M55.30M37.81M24.18M12.60M
Gross Profit57.92M57.59M52.99M36.55M22.87M12.16M
EBITDA49.39M0.0047.84M26.39M18.56M6.48M
Net Income18.12M24.74M-82.66M171.77M47.60M9.36M
Balance Sheet
Total Assets45.63M1.15B1.16B1.18B611.68M343.29M
Cash, Cash Equivalents and Short-Term Investments1.68M31.01M30.16M127.38M60.46M132.28M
Total Debt18.20M359.03M356.49M248.18M206.20M76.56M
Total Liabilities20.26M389.30M387.55M286.43M224.22M84.53M
Stockholders Equity25.37M758.64M769.76M892.63M387.45M258.76M
Cash Flow
Free Cash Flow45.84M46.59M33.77M405.79M254.15M7.39M
Operating Cash Flow45.84M46.59M33.77M52.36M-11.17M7.39M
Investing Cash Flow-44.50M3.33M-201.30M-353.43M-265.32M-14.29M
Financing Cash Flow-2.93M-49.80M70.31M367.99M204.67M129.42M

Urban Logistics REIT plc Technical Analysis

Technical Analysis Sentiment
Positive
Last Price156.00
Price Trends
50DMA
148.33
Positive
100DMA
132.63
Positive
200DMA
120.19
Positive
Market Momentum
MACD
2.41
Positive
RSI
61.59
Neutral
STOCH
46.53
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 is above the 20-day moving average (MA) of 155.10, above the 50-day MA of 148.33, and above the 200-day MA of 120.19, indicating a bullish trend. The MACD of 2.41 indicates Positive momentum. The RSI at 61.59 is Neutral, neither overbought nor oversold. The STOCH value of 46.53 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

Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
83
Outperform
£1.50B5.0913.69%5.93%1.66%11.42%
GBBYG
81
Outperform
$1.84B9.138.06%5.05%4.34%33.66%
78
Outperform
£3.58B7.3411.28%3.92%38.97%417.46%
GBWHR
77
Outperform
£472.45M11.327.68%5.75%0.17%
73
Outperform
$725.54M40.632.39%5.58%4.41%
68
Neutral
£9.05B14.975.18%6.04%-9.88%
64
Neutral
$7.01B18.92-1.36%6.84%4.67%-25.39%
* Real Estate Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:SHED
Urban Logistics REIT plc
156.00
44.64
40.09%
GB:BYG
Big Yellow Group
942.00
-166.57
-15.03%
GB:SAFE
Safestore Holdings
687.50
-69.75
-9.21%
GB:SGRO
Segro plc (REIT)
6.69
-1.97
-22.75%
GB:BBOX
Tritax Big Box REIT
144.30
-4.19
-2.82%
GB:WHR
Warehouse REIT PLC
1.11
0.34
44.16%

Urban Logistics REIT plc Corporate Events

M&A Transactions
Urban Logistics REIT Engages in Potential Acquisition Talks
Neutral
Apr 15, 2025

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.

M&A Transactions
Urban Logistics REIT Considers Acquisition Proposal from LondonMetric
Positive
Apr 14, 2025

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.

M&A Transactions
Urban Logistics REIT Receives Preliminary Offer from LondonMetric
Neutral
Apr 11, 2025

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.

M&A TransactionsBusiness Operations and Strategy
Urban Logistics REIT Enhances Portfolio with Strategic Acquisitions
Positive
Mar 28, 2025

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.

Executive/Board ChangesShareholder MeetingsBusiness Operations and Strategy
Urban Logistics REIT Faces Board Requisition Challenge
Neutral
Mar 26, 2025

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.

Shareholder MeetingsBusiness Operations and Strategy
Urban Logistics REIT Announces Strategic Moves and Shareholder Consultation
Positive
Mar 20, 2025

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.

Shareholder MeetingsBusiness Operations and Strategy
Urban Logistics REIT Announces Internal Management Shift and Shareholder Support
Positive
Mar 12, 2025

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.

Business Operations and Strategy
Urban Logistics REIT Boosts Portfolio with New Lettings
Positive
Feb 13, 2025

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Apr 15, 2025