Warehouse Reit Share Discussion Threads

[spooky] 14/1/2025 14:22

If you are being picky there are a number of reasons why you could decide not to buy WHR, several of which have been touched on. However, a major driver for many months, has been the continued selling by Rathbones. Hopefully, Fidelity have taken some of their overhang.

[hybrasil] 14/1/2025 13:54

When fidelity increase their stake by 5% things can’t be that bad

[hindsight] 09/1/2025 12:27

As 10% of assets are in development land, the value of which is falling on rates and the new NPPF this deserves a slightly wider discount than say shed

[riverman77] 09/1/2025 11:28

The dividend is not quite covered, which I think is largely due to their relatively high debt costs. I must admit I'm holding this mainly on the expectation that this gets taken out, given the strong demand for these assets and the very deep discount. Blackstone spent £1bn last year on UK logistics, and the likes of SGRO and LMP are also looking to acquire - I'm sure there are many others.

[spectoacc] 09/1/2025 10:48

WHR still not covering their divi I believe? With some large refinancings ahead.

[chucko1] 09/1/2025 10:44

With medium term rates trending higher, you might allow for a further cut to NAV. Even then, the numbers look strong.

[skyship] 09/1/2025 10:12

Possibly top value in the sector IMO.

At 75.4p for a 40.9% discount and 8.5% yield. Clearly a possible bid target; so consider this.

A bid at a 12.5% NAV discount would deliver 111.6p and a 48% gain!
A bid at a 15.0% NAV discount would deliver 108.4p and a 44% gain!

Bought quite a few today - averaging c75.4p

[nickrl] 08/1/2025 13:09

Wasn't questioning whether it was an acquisition target my view remains the share price of this one is far more realistic compared to its peers so if that transpires can't see the premium being that great but a premia is a premia.

[riverman77] 04/1/2025 15:00

Exactly, a bidder such as Blackstone would be able to refinance at a much lower rate. Given the strong institutional demand for warehouses I would be very surprised if this is not snapped up in the next year or so.

[skyship] 04/1/2025 13:38

nick - the debt cost irrelevant to a bidder; they use their own cash or re-finance at their much lower rate.

WHR very vulnerable; just like SHED.

[nickrl] 03/1/2025 18:49

Divi well uncovered at the cash level. It also has one of its interest rate caps rolling off in July which covers 100m of debt at 1.5% which albeit will probably lower than todays rate is going to be above 4%. This why they are trying to off load Radway so they can lower debt.
This one deserves to be at this share price its peers less so.

[riverman77] 02/1/2025 10:53

Looks very good value on a 38% discount and underlying property looks good. Only downside is the expensive debt which partly explains the lack of dividend cover, but this will hopefully start to come down a bit as rates fall. In any case, this wouldn't be an issue for an acquirer who would simply refinance at a better rate. As well as Blackstone, you also have LMP and SGRO on the acquisition trail so can see there being a strong demand for logistic REITs if the UK stock market fails to value them.

[skinny] 02/1/2025 10:36

Here's .

I sold the bulk of mine @155 in June 2021 and have been looking to add - perhaps now is the time?

[riverman77] 02/1/2025 10:28

Story in the Times about how Blackstone are busily buying up UK warehouses - apparently spending £1bn over the past year. They seem to be focused on last mile warehouses where they're seeing strong demand coupled with limited supply. I have a position in SHED which I expect to be snapped up soon. Haven't looked into WHR in much detail but wondering if this could also be a target.

[skyship] 13/12/2024 16:27

First exploratory purchase at 80.225p; also a small CFD purchase.

A minute after my trade someone bought 250k @ 80.3p. Need to see more like that!

[killing_time] 12/12/2024 15:05

True, these things take time. Hopefully some good news on sale and price very soon.

[sleepy] 12/12/2024 14:59

Thanks killing time but I believe terms were agreed months ago. The problem seems to be getting the deal signed.

[killing_time] 12/12/2024 14:39

Sleepy, part of it has come.

Terms have been agreed on the sale for phase 1 of Radway Green which is 0.8 million Sq. Ft.
That leaves phase 2 at 1 million Sq. Ft.
This was announced with the interims on 21/Nov/24
Money will be used to reduce the debt.

[sleepy] 12/12/2024 14:28

Sky - they own a lot of development land in or near Crewe worth many tens of millions. They have been in discussions for a sale and/or JV for yonks. Shareholders have been waiting for a positive announcement but it hasn’t come.

[skyship] 12/12/2024 14:07

At 80.4p the discount is at 36.9% and the yield just a tad under 8% at 7.96%.

Statistically looking really good value down here; but the chart looks dire with the share price below both the 50day SMA & the 200day SMA.


free stock charts from uk.advfn.com

[bathcoup] 30/11/2024 22:48

StrollingMolby,

Many thanks.

Curiously, the H1 results do have a paragraph under "Dividends" but it said the 1.6p was (to be) declared on "22 November 2024" (not 21 November 2024!) - must be a typo?

In any case, why don't they just lump all related information in the same paragraph.

[strollingmolby] 29/11/2024 20:55

It was buried in the Notes...

24. Post balance sheet events

A second interim dividend of 1.6 pence per share in respect of the year ended 31 March 2025 will be paid full PID on 27 December 2024 to shareholders on the register on 29 November 2024.

[bathcoup] 29/11/2024 20:35

However, an ex-d date was not given in the recent H1 results released on 21 Nov.

[bathcoup] 28/11/2024 22:40

XD today for the Q2 dividend of 1.6p payable on 27/12/2024, according to

[essentialinvestor] 22/11/2024 10:01

spooky, I agree with your take on the sector, gilts are key and the recent movement has been highly damaging to sector sentiment.