Our commitment to shareholders is to acquire well‑located assets with the correct

specification for occupiers, typically at below replacement cost. Our focus on tenant

covenants, in sectors which have been less volatile historically, has served us well.

Only London‑listed REIT with a focus

onsingle‑let, mid‑box logistics assets

with a sweet spot of between

20,000‑200,000 sq ft

Ambitious but deliverable targets to

deliver on ESG priorities of shareholders

andtenants

Assets located in key urban “last touch”

and “last mile” locations

Investment Adviser with decades of

experience in this sector, and a strong

Board providing oversight

assets and portfolios for several large real

estate investment managers.

I am grateful to all our Directors, past and

present, for their commitment to the

Company.

The portfolio has performed well through

there is significant upside to be captured in

the years ahead.

Given the highly challenging economic

circumstances during the financial

year, the Company has put in a very

in the capital markets has limited the

amount of asset recycling we have

been able to do. On this stable

portfolio, rental income has increased

through asset management,

significant economic headwinds, with

a 0.3% like‑for‑like valuation reduction,

while ERVs have grown £1.8 million, or

2.5%, on a like‑for‑like basis. These

figures reflect both the high quality of

the underlying portfolio the Company

has built, and the growth that we have

driven through our strategy.

The year end vacancy is 5.8%; with one

lease under offer, and further asset

The higher interest rate environment

has made it hard to price industrial

assets, and this can be seen in the

significantly reduced transaction

volumes across the property sector,

management.

We only want the Company to sell

assets if we are confident that we can

get optimal value for shareholders

from the transaction, and for this

reason we have delayed some of the

recycling programme. Post period end,

a further asset was sold for £3.8 million

at a NIY of 5.4%, and we are confident

of completing further transactions over

Quarterly Index suggests that throughout the course of 2023 rental growth across the

Given the market context discussed earlier in the report, we are very pleased to see the

portfolio valuation holding up well, with valuations on a like‑for‑like basis down just 0.3%.

We aim to manage a balanced portfolio, split between core assets with secure, long‑term

income, as well as an active asset management pool where we can drive returns. We are

a very active asset manager, and have signed 35 new leases, rent reviews or re‑gears in the

period, driving an additional £3.0 million in rental income on an annual basis, representing

a like‑for‑like uplift of 19%. This asset management activity allows us to offset yield‑driven

erosions in value.

management plan to move rents on, extend lease term, improve covenant strength or make

significant improvements to the environmental performance of the building.

These assets are forward‑funded developments typically on a maximum commitment basis

to insulate us from build cost inflation. They are done either with or without a pre‑let tenancy

in place. We target a yield on cost of circa 6% and aim to further enhance the sustainability

credentials of the portfolio with these assets.

Capital value £563m £530m £7m £1,100m

EPC A‑B 77% 47% NA 60%

Equivalent yield 5.7% 6.6% NA 6.3%

In a typical year, we would aim for circa 35% of the portfolio to be made up of the ‘Core’

assets. The fact that this has grown to just over 50% is an inevitable result of successfully

completing asset management plans in a dislocated capital market. These assets do of

course have growth opportunities, as shown by the 10% reversion to ERV, but at 77% A/B in

terms of EPC and a WAULT of 9.7 years, the major plans have largely been completed.

this category at year end are made up of plots of development land which adjoin existing

sites and were acquired as part of a larger asset deal. These represent an opportunity in the

future, when we see a change in the market.

Capital value £306m £346m £249m £176m £16m £7m £1,100m

Percentage of

portfolio 28% 31% 23% 16% 1% 1% 100%

Area (sq ft) 2.3m 2.9m 2.4m 2.1m NA NA 9.7m

WAULT 6.7 years 6.7 years 6.4 years 7.1 years 9.0 years 8.1 years 15.5 years 7. 5 years

EPC A‑B 59% 56% 81% 42% 62% 57% 0% 60%

Equivalent yield 5.5% 6.3% 6.1% 7.8% 6.3% 6.1% 7.0% 6.3%

During the year to 31 March 2024, the Group disposed of assets for a combined consideration of £15.00 million, representing a combined capital appreciation of 23.0% and an uplift on net

book value of 3%. The proceeds of these sales was used to pay down our higher‑rate, floating debt, and which was therefore accretive to earnings.

Hilary’s Blinds, Nottingham £8.75m £9.50m £9.66m £0.9m 10.5% £0.16m 2% 6.8%

During the year to 31 March 2024, the Company invested £5.7 million, completing two

development properties. This is significantly down on the prior year when £28.7 million was

Newhall 7, Sheffield

Unit 100, Colchester £3.3m 6.9% 12,437 £0.2m

It is notable that the occupational market was much stronger in the second half of the year,

and post period end. Lease events settled in H2 reflected a like‑for‑like increase of 27%,

It is this generation of additional rental income and lease length through asset management

that allows us to offset market‑driven yield expansion, and helps explain why the portfolio

valuation has outperformed the wider market.

New lettings 11 £2.1m 15% 9.4

In times of financial stress, we will always experience some tenants in difficulty. We protect