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September 07, 2022 | Press Release

Strong occupier demand and leasing activity across all key markets drive strong financial and operational performance for the six months ended 30 June 2022.

Logicor has delivered a strong financial and operating performance in the first half of 2022.

Our results reflect the high demand for our portfolio of well-located logistics space. Strong occupier demand, coupled with structural undersupply of logistics real estate across Europe, underpins our active asset management strategy, enabling our business to increase occupancy, drive rental growth and facilitate our customers’ growth objectives.

Alongside our strong operational performance, we have made great strides in implementing our ESG strategy – "Acting Responsibly" – in the first half of 2022. We have today launched our carbon reduction targets that will support our drive to reduce our operational carbon emissions by 36% and have also committed to being a fully climate resilient business by 2030."

Michael Slattery

CEO

Highlights:

  • Net Operating Income (NOI): €331 million, an increase of 3.2% from the six months ended 30 June 2021, reflecting increased occupancy levels and continued rental growth
  • LFL1 Net Rental Income increased by 4.2% from the six months ended 30 June 2021, driven by new leases and renewals at record re-leasing spreads and inflation-linked indexation and market rent reviews on standing leases
  • EPRA Occupancy: 94.1%, an increase of 80bps since 30 June 2021
  • Gross Asset Value: €16.2 billion, an increase of €528 million or 3.4% since 31 December 2021. Excluding currency movements and the impact of developments and disposals, the value increased by €887 million or 5.9% in the period.
  • LTV: 43.5%, below leverage policy of not more than 55.0%

1 Net Rental Income at constant currency rates excluding: the loss of income from disposals, growth from development activity, fees from third-party assets under management, rent-free straight-lining and COVID-19 related bad debts

ESG strategy – Acting Responsibly

We recognise that real estate is a significant contributor to global carbon emissions and has the potential to have a real impact in addressing the current climate crisis.

To play our part in this global effort, we have committed to reducing our operational carbon emissions by 36% by 2030 and have today launched the targets that will enable us to do so.

These targets have been developed in line with the Science Based Targets Initiative (SBTi) methodology2 to ensure we are playing our part in limiting global temperature change to below 1.5 degrees and alongside this, we have committed to being a fully climate resilient business by adopting the recommendations of the Task Force on Climate Related Financial Disclosures (TCFD) by 2030.

2 The Science Based Targets initiative is a collaboration between CDP, the United Nations Global Compact, World Resources Institute, and the Worldwide Fund for Nature. The initiative sets a methodology to meet the expectations of the Paris agreement on climate Change

In the first half of 2022, we accelerated our investment in energy efficiency measures across our portfolio including four onsite solar generation projects totaling over 2.7 MWp of potential on-site renewable energy, which takes our total capacity to over 41.7 MWp of solar generation.

Development and Expansion

We continue to invest in development through sourcing and executing accretive opportunities across key logistics markets where there are strong supply/demand dynamics. We remain focused on investments that support our customers’ growth objectives, including well located land for development or standing assets with potential to add value.

We completed two development projects in the first half of the year. We have several projects underway, and we anticipate a continued disciplined acceleration in the pace of development in key European markets.

Capital Structure

In the first half of 2022, we issued €1.5 billion of unsecured bonds across three tranches of €500 million each, maturing in November 2025, January 2030, and January 2034 respectively, with a weighted average coupon of 1.4%. This issuance included an inaugural €500 million Green Bond which is being used to support the acceleration of our ESG strategy – "Acting Responsibly".

Proceeds from the issuance were used to fully repay the notes with a maturity date in November 2022, leaving our group with no future debt maturities until the second half of 2024.

Interim Results Summary

  As at 30 June 2022 As at 30 June 2021 As at 31 December 2021
EPRA Occupancy 94.1% 93.3% 95.0%
GLA (million sqm) 13.4 13.5 13.7
GAV (€ million) 16,220 14,158 15,692
NOI (€ million) * 331 323 653
LTV 43.5% 46.8% 43.4%

*For the six-month periods ended 30 June 2022 and 30 June 2021, and the year ended 31 December 2021

END

For further information please contact:

Logicor Chief Financial Officer: Simon Clinton [email protected]
Logicor Director of Communications: Lizzie Beuzeval [email protected], +44 7464980257

About Logicor

Logicor is one of the largest owners and operators of modern logistics and distribution properties in Europe. As at 30 June 2022, we own a portfolio of 591 high-quality properties with a lettable area of 13.4 million square metres located in key European logistics markets. Logicor is headquartered in London and Luxembourg.