Logicor announces results for year ended 31 December 2018

Logicor announces strong financial performance for the year ended 31 December

• Net Operating Income (NOI): €639 million, which represents year on year growth of 2.5%, reflecting our strategic focus on increasing occupancy and capturing market rental growth. Over 60% of NOI is generated in the key markets of the UK (26%), Northern Europe (21%) and France (15%).
• Gross Asset Value: €12.5 billion, a 3.3% increase in valuation, which reflects the strong performance of our portfolio, in particular in Northern Europe.
• EPRA Occupancy: 94.4%, with physical occupancy up 70 bps over the year, underpinned by strong growth in each of our three largest regions of the UK (+120 bps), Northern Europe (+110 bps) and France (+220 bps).
• LTV: 51%, down from 52% at year end 2017 following increases in property values. At year end, our debt to EBITDA ratio was 11.3x.

Capital Structure

In 2018 Logicor (rated BBB (Stable) by S&P) established a Euro Medium Term Note (‘EMTN’) programme and raised €1.8 billion of unsecured fixed-rate debt in the public capital markets alongside a €750 million unsecured Revolving Credit Facility (‘RCF’).

Through a combination of the bond proceeds, €300 million drawn under the RCF and €207 million of cash, Logicor repaid a portion of the secured, floating-rate facility, allowing us to move to a more flexible, diversified capital structure and increasing our weighted average maturity to 4.4 years.

Development and Expansion

In 2018 we invested €80 million in developing and expanding new logistics space for our customers, with four development projects completing in Italy, Finland, Germany and Romania with a total project cost of €74 million and an average yield on cost of 11%. We have eight further projects under way in Germany (4), Finland (2), UK (1) and Poland (1), with total projected costs of €79 million and a projected average yield on cost of 8%. All of these projects were 100% fully pre-leased before commencement.

Additionally, we have client-led development opportunities consisting of 18 projects that are primarily located in our core markets of Germany and France. These projects would deliver approximately 390,000 sqm of additional GLA with a total projected cost of €292 million.