Industrials REIT Ltd said on Friday it had a record quarter for deal volumes following several substantial leasing transactions in Ashby de la Zouch and Paddock Wood.

Even without these, the company said the deal volumes were in line with previous quarters illustrating the continued depth of demand for multi-let industrial space across the UK.

In a quarterly trading update, the real estate investment trust investing in UK multi-let industrial properties said it had seen an increase in like-for-like rents of 1.5% for the fourth quarter ended March 31 and delivered its target income growth of 4% to 5% per annum.

With a backdrop of strong demand and scant new supply of multi-let industrial sector, Industrials REIT sees the potential for further rental growth continuing for the foreseeable future.

The total rental value of new leases signed during the quarter was up 90% to £2.9 million across 54 new lettings and 32 lease renewals, a record value of deals, up 31% from £1.54 million of new income over 43 new lettings and 17 renewals in the previous quarter.

Occupancy across the multi-let industrial portfolio remains stable at 93.8% as at March 31, unchanged from December 31. At September 30, occupancy was at 93.9%, remained at 94.7% at June 30 and stood at 93.7% at March 31, 2021.

To recover Covid-19 debts, Industrials REIT said rent collections from early in the pandemic are now 97%, with more recent periods indicating a path back towards pre-Covid collection rates of over 98%.

The group said it will continue to buy assets, with attractive cash flows and prospects for further rental growth and accretive asset management.

In London, shares in Industrials REIT were 0.2% lower at 199.56 pence on Friday. But they remained unchanged at R 39.00 in Johannesburg.

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