EPRA earnings are in line with continued rental growth with a record year for lease events. The balance sheet has been impacted by wider NIYs, although outperforming the sector. The board is taking a cautious approach preferring to recycle capital rather than increase gearing. We adopt higher NIYs into our model reducing our NAV forecasts by 12-15%. ULR offers a real return (14% nominal total return) in an inflationary environment with an encouraging outlook for the asset class. We set a 175p 12m TP (FY24e NAV, from 190p); BUY.
