Warehouse REIT PLC Trading Statement & Dividend Announcement (2695D)
30 January 2018 - 6:00PM
UK Regulatory
TIDMWHR
RNS Number : 2695D
Warehouse REIT PLC
30 January 2018
30 January 2018
Warehouse REIT plc
(the 'Company' or 'Warehouse REIT')
TRADING UPDATE & DIVIDEND ANNOUNCEMENT
DELIVERING ON FOCUSED STRATEGY, AS SET OUT AT IPO
Warehouse REIT plc (LSE: WHR), the AIM-listed specialist
warehouse real estate investor, today provides a trading update for
the period since the Company's Admission to trading on the London
Stock Exchange on 20 September 2017 to 30 January 2018.
In line with the dividend policy set out at IPO, the Company is
today declaring its maiden interim dividend of 1.00 pence per
share. The Company remains on track to deliver a dividend of 5.5p
for the year ending 31 March 2019, in line with objectives set out
at IPO. The 1.00 pence per share dividend payment will be made on 9
March 2018 to shareholders on the register as at 9 February. The
ex-dividend date will be 8 February 2018.
Highlights over the period:
- On Admission, completed the acquisition of the seed portfolio
of 27 freehold and long leasehold warehouse assets for GBP108.85
million, reflecting a 7% net initial yield.
- Since IPO, a further GBP54 million invested across 14 UK
warehouse estates totalling 1.1 million sq ft, let to a diverse
range of occupiers and reflecting a 7.6% blended net initial yield.
The properties' low average passing rents of GBP4.44 psf present an
opportunity to grow rental income to bring in line with ERV, while
a combined 7.7% vacancy rate provides further growth prospects.
- 19 new lettings completed, generating annual rent of
GBP778,000 pa, ahead of ERV. Of these transactions, 13 were new
lettings of previously vacant space (generating GBP371,000pa) with
the balance being renewals.
- Five new lettings of 45,790 sqft of vacant space currently
under offer for a combined rent of GBP284,000 pa, 10% ahead of
ERV.
- Notice has been received to exercise a lease break from six
tenants, representing combined passing rents of GBP304,000 pa, or
GBP3.63 psf as compared to an ERV of GBP4.07 psf, providing an
opportunity to increase revenue. In the majority of instances, the
tenant is vacating due to the Company's inability to accommodate
their demand for additional space.
- New and enlarged financing facilities totalling GBP65 million
secured with HSBC which, if fully drawn, would crystalise an LTV of
less than 30%.
- Strong pipeline of attractive investment opportunities
identified, including a mix of single assets and portfolios,
exhibiting similar characteristics to the current portfolio.
Neil Kirton, Non-Executive Chairman of Warehouse REIT,
commented:
"We have made solid progress in terms of delivering against our
strategy for Warehouse REIT, with the business's performance since
IPO exceeding our expectations. At this early stage of the
Company's life, we are pleased to be assembling a portfolio of
multi-let UK urban warehouse assets aligned to the Investment
Strategy, demonstrating the sourcing abilities of our experienced
team. Letting activity continues to proceed at levels ahead of our
business plan. Furthermore, with an active pipeline of new
investment opportunities under review, we are confident in our
ability to deploy our remaining IPO proceeds ahead of initial
forecasts."
-ENDS-
Enquiries:
Warehouse REIT plc via FTI Consulting
Tilstone Partners Limited +44 (0) 1244 470
Andrew Bird, Paul Makin 090
G10 Capital Limited (part of the Lawson Conner Group),
acting as AIFM +44 (0) 20 3696
Agnese Soldane, Gerhard Grueter 1302
Peel Hunt (Financial Adviser, Nominated Adviser
and Broker)
Capel Irwin, Edward Fox +44 (0)20 7418 8900
FTI Consulting (Financial PR & IR Adviser to the
Company) +44 (0) 20 3727
Dido Laurimore, Ellie Sweeney, Richard Gotla 1000
Further information on Warehouse REIT is available on its
website:
http://www.warehousereitplc.co.uk
Notes to editors:
Warehouse REIT announced the results of its IPO on 15 September,
having raised gross proceeds of GBP150 million (GBP146.8 million
net) to invest in a diversified portfolio of UK warehouse assets
located in urban areas.
Occupier demand for urban warehouse space is increasing as the
structural growth in e-commerce has driven the rise in internet
shopping and investment by retailers in the "last mile" delivery
sector. The urban warehouse sector offers one of, if not the
highest, initial yield of all UK property sectors.
The Company is an alternative investment fund ("AIF") for the
purposes of the AIFM Directive and as such is required to have an
investment manager who is duly authorised to undertake the role of
an alternative investment fund manager. The Investment Manager is
currently G10 Capital Limited, whose role will pass to Tilstone
Partners Limited ("TPL"), on receipt of FCA approval.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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