Asset Management Update

RNS Number : 8113U

Warehouse REIT PLC

17 July 2018

 

17 July 2018

Warehouse REIT plc

(the 'Company' or 'Warehouse REIT')

Asset Management Update

Warehouse REIT, the AIM listed specialist warehouse investor, announces an asset management update for the period 1 April to 30 June 2018.  During the period the Company completed eleven new lettings and five lease renewals across 125,983 sq ft, 2.3% ahead of 31 March 2018 ERVs, generating £449,623 of additional income.

Highlights include:

·    A new 15 year lease, with a break at year 10, to existing tenant DFS at South Gyle Industrial Estate, Edinburgh, more than doubling its occupancy to 47,744 sq ft on the 3.69 acre site. The favourable rent of £7 per sq ft equates to £334,208 per annum. The site benefits from its close proximity to key local infrastructure including J1 of the M8 and Edinburgh Airport.

·     A 48,152 sq ft regear to Asda Stores at Vantage Point, one of the Company's multi-let industrial estates in Leeds. The new 10 year lease, with a break at year 5, reflects a passing rent of £209,100 per annum (£4.34psf), in line with the previous rent paid, with a rent review currently under way.  

·     A 7,713 sq ft letting to Grove Logistics Services Ltd at Farthing Road, Ipswich, on a 5 year lease with a break at year 3, at £38,565 per annum, 11.1% ahead of the 31 March 2018 ERV. 

The eleven new lettings represent 63,547 sq ft of space let, 4.7% ahead of the 31 March 2018 ERV, generating rental income of £437,283 per annum. The five lease renewals generate a combined annual rent of £286,600, an uplift of 4.5% as compared to the previous rent paid.

Following this recent activity, the weighted average unexpired lease term of the portfolio has marginally increased to 4.2 years to expiry (31 March 2018: 4.1 years).

Andrew Bird, Managing Director of Tilstone Partners Ltd, the manager of Warehouse REIT, commented: "It has been a busy period for our growing asset management team, with this portfolio wide activity demonstrating both the continued demand from a range of new and existing occupiers for our well-located, good quality urban warehouses, alongside our ability to identify and deliver on the significant reversionary potential outlined at our recent maiden financial results. In particular, the significant letting to DFS for additional warehouse space to support its fast growing e-commerce operations is a trend that we are seeing replicated by retailers across the UK.

"The outlook in the markets where the portfolio is weighted remains appealing, with rental growth forecast to outperform other sectors, and with a number of asset management enhancing initiatives underway, our focus remains on further improving the income profile of the portfolio and delivering value on behalf of shareholders."

-ENDS-

Enquiries:

Warehouse REIT plc                                                                                                   via FTI Consulting

Tilstone Partners Limited   Andrew Bird, Paul Makin	[phone]
G10 Capital Limited (part of the Lawson Conner Group),   acting as AIFM   Agnese Soldane, Gerhard Grueter	[phone]
Peel Hunt (Financial Adviser, Nominated Adviser and Broker) Capel Irwin, Carl Gough, Harry Nicholas	[phone]
FTI Consulting (Financial PR & IR Adviser to the Company) Dido Laurimore, Ellie Sweeney, Richard Gotla	[phone]

Further information on Warehouse REIT is available on its website:

Notes to editors:             

Warehouse REIT announced the results of its IPO on 15 September, having raised gross proceeds of £150 million (£146.8 million net) to invest in a diversified portfolio of UK warehouse assets located in urban areas.  As at 31^st March 2018 the Warehouse REIT has fully invested the IPO proceeds with the entire portfolio valued at £291m. 

Occupier demand for urban warehouse space remains strong as the structural change in the retail sector reduces the demand for high street stores in favour of the continuing growth in e-commerce and investment by retailers in the associated "last mile" delivery sector.

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. 

 

END

 

 

UPDSFMEFMFASEDW