Hardman & Co Research: Plenty of future growth stored up

Urban Logistics (SHED) results (24 May) were robust. Prospects for continuing value-adding investment and capital recycling are clear and strong. SHED owns "mid-box", "last mile" distribution warehouses. Just as important is that this asset class is clearly placed to benefit consistently from engrained market trends in logistic requirements. SHED's marketplace is broader than the rising demand for logistics space from online (or multichannel) retail. But, this driver alone sustains strong demand. Supply is strictly constrained by the dominant trend ‒ that the cost of new-build is generally above the current valuations placed on assets in SHED's category (last-mile logistics).

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