Total Leverage Employed

RNS Number : 2493T

Pacific Industrial & Log REIT PLC

10 October 2017

 

Pacific Industrial & Logistics REIT plc

("Pacific Industrial & Logistics", the "Company" or the "Group")

10 October 2017

Total Leverage Employed - AIFMD disclosure requirement

The Company is required under Article 109(3) of the Commission Delegated Regulation (EU) to disclose to its investors the total amount of leverage employed, as calculated in accordance with the gross and commitment methods under the Alternative Investment Fund Managers Directive (AIFMD). 

As at 31 March 2017 these were as follows:

	31 March 2017
Exposure	Gross	Commitment
Maximum exposure	300.00%	300.00%
Exposure	221.93%	177.77%

Moving forward, and in line with the Commission Delegated Regulation the Company will report the total amount of leverage employed on an annual basis in the Company's Annual Report.

The Company targets an overall loan-to-value (LTV) of between 35% and 40%.  As at 31 March 2017 the actual LTV was 42.4%.

For further information regarding Pacific Industrial & Logistics REIT plc: 

Pacific Industrial & Logistics REIT Plc Richard Moffitt Christopher Turner Sam Tucker	[phone]
Canaccord Genuity - Nominated Adviser and Joint Financial Adviser Bruce Garrow / Charlie Foster	[phone]
Kinmont- Joint Financial Advisor Mat Thackery	[phone]

Certain information contained in this announcement would have been deemed inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 until the release of this announcement.

About Pacific Industrial & Logistics REIT

Pacific Industrial & Logistics REIT plc is a property investment company, quoted on the AIM market of the London Stock Exchange.

The Company has been established to invest in UK based industrial and logistics properties with a view to delivering attractive dividends and capital returns to its shareholders. The investment strategy is focused on smaller single let industrial and logistics properties in key geographical locations servicing high quality tenants. Investment returns will be generated by an experienced management team focusing on quality stock selection and active asset management.

A number of structural and commercial factors currently support the attractive opportunity in the last mile/regional industrial and logistics real estate sub-sectors targeted by the Company, including: strong occupier demand (in particular due to growth in e-commerce and investment by retailers in their associated supply chain) and a decline in the supply of lettable space in industrial and logistics real estate across the UK (being more than one third lower than the most recent peak of 2009).

Acquisitions are targeted in the 6.5 to 7.5 per cent. Net Initial Yield bracket (with affordable underlying rents in the region of £4.50 to £5.50 per square foot), on an overall LTV of 35 to 40 per cent. with a significant margin over financing costs, thus presenting an attractive income, capital growth and total return proposition.

The Company's results for the period from IPO on 13^th April 2016 to 31^st March 2017 saw a 22.6 per cent total shareholder return, including aggregate dividends of 6 pence per ordinary share on an IPO price of 100p.

 

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