Warehouse Reit Share Discussion Threads

[nimbo1] 05/11/2019 08:14

just sold half my position. will buy back if it drops below nav

[nimbo1] 25/10/2019 10:49

I am enjoying the move here - excellent.

Has anyone got their head around Stenprop? Looks v interesting, decent divi, large discount to nav - slightly weird set up with joint JSE listing and getting rid of all german property to focus simply on UK industrial.

[skinny] 23/10/2019 12:28

Warehouse REIT plc, the AIM listed specialist warehouse investor, will announce its half year results for the six months ended 30 September 2019 on Tuesday 5 November 2019.

[igoe104] 14/10/2019 14:58

IC Tip: Buy at 104p

The rise of ecommerce, combined with the high cost of building new logistics space, has driven up demand for distribution warehouses that are close to the UK’s cities. Warehouse Reit (WRH) has benefited from the resulting rise in value of its portfolio and its growing rental income, which has backed generous dividend payouts in the short time its shares have been quoted. The shortage in urban logistics space has driven consolidation within the sector already, notably LondonMetric’s (LMP) acquisition of smaller rival A&J Mucklow in May. Given that Warehouse Reit’s shares trade well below its per-share net asset value it is feasible that it, too, could become a target.



WHR:LSE
Warehouse REIT PLC

1mth
Today change
-0.69%
Price (GBP)
104.28

Warehouse Reit's shares were launched on London’s junior market in late 2017, raising £150m for management to invest in warehouse assets in urban areas. The portfolio is focused on small- to medium-sized warehouses with good transport links, catering to tenants carrying out so-called ‘last mile’ delivery services. It also looks for buildings that offer long-term flexibility, such as the ability to subdivide larger units or the potential to change permitted use.
During its first full year as a quoted company, Warehouse Reit made a total return of 13.3 per cent, ahead of the 10 per cent target at its flotation, thanks to a 7.4 per cent rise in adjusted net asset value (NAV) and a generous 6p a share in annual dividends. One way Warehouse Reit boosts its returns is by refurbishing vacated units to raise rents. That can add between £5 and £7 per square foot (sq ft) in rental value, according to management. The company aims to spend 0.75 per cent of its gross asset value on capital expenditure each year, with a target return of at least 10 per cent. Last year, 62 lettings of vacant space were completed for rents 13 per cent more than expected, which generated an additional £2.1m in rental income.
Lease renewals also help boost like-for-like rental income – last year 46 were completed at an average 14.6 per cent above previous rents or 6 per cent ahead of estimated rental values. Since March, demand has remained strong. For example, at the start of the month Warehouse agreed a 10-year lease renewal with the distribution arm of Walgreens Boots Alliance on 113,000 sq ft of distribution space at a 42 per cent uplift to the previous rent paid.

[ramellous] 14/10/2019 06:58

Good results at SHED today could impact here for the better.

[cheshire man] 26/9/2019 06:51

Another acquisition giving a good return

[ec2] 18/9/2019 11:36

Was going to subscribe for the new JP Morgan Core Real Assets Fund in the current IPO but several factors put me off of this so have invested into WHR instead as see this as a better "real assets" opportunity.

[skinny] 18/9/2019 09:35

FWIW :- Peel Hunt Buy 102.69 120.00 Reiterates

[chucko1] 18/9/2019 08:36

Maiken, exactly the case as I see it. NAV as of June of 109.7, can buy today at 102.7 for a pretty solid proposition.

[maiken] 18/9/2019 08:25

actually I think it was a forced seller Hugepants.Aviva are one of a number of open-ended property funds who are seeing redemptions in the face of the ubiquitous Brexit uncertainty.

[spectoacc] 18/9/2019 07:06

Has taken them since March to deploy the cash tho. Altho does that mean we're not far off yet another cash raise? We're a fair bit below NAV atm.

[hugepants] 18/9/2019 07:02

Hmm. If its a good deal for WHR its probably not a good deal for the seller. WHR are almost forced buyers.

[cheshire man] 18/9/2019 06:57

Looks good to me too SpectoAcc :-)

[spectoacc] 18/9/2019 06:27

Finally! Fully invested the March proceeds. Can't help but think they didn't get what they'd originally raised the money for.

But nearly 1m sq ft of industrial space at c.7% and on low p.sq.ft rent, looks good to me. Amazon now 2nd largest tenant.

[skinny] 16/9/2019 15:51

.

And .

[cheshire man] 10/8/2019 17:13

Thanks SpectoAcc and delboy for that info,,,,,,,,,,let's see if it moves the share price next week,,,,,,a decent yield so a hold for me

[delboy99] 10/8/2019 16:44

Tipped on motley fool as well this weekend

[spectoacc] 09/8/2019 13:11

A decent tip in today's IC, reckons t/o potential not out of the question, & cheap/good yield if not. Points out debt at top end (39%) vs 30-40% target.

[igoe104] 05/8/2019 06:47

Warehouse REIT secures major lease renewal with Boots at Basingstoke

Warehouse REIT, the AIM-listed specialist warehouse investor, has agreed a 10-year lease renewal with Alliance Healthcare (Distribution) Ltd ('Alliance Healthcare'), the distribution arm of Walgreens Boots Alliance Inc., at Daneshill Industrial Estate in Basingstoke. It is one of a number of successful asset management initiatives executed by Tilstone Partners this year, as it continues to drive value and income growth across the portfolio.

Boots has been in occupation of Unit 2 of the estate, comprising 113,000 sq ft of distribution facilities on a 6 acre site, since 1989. The 10-year lease renewal, with no breaks, in return for market standard incentives, has been agreed at a 42% uplift to the previous rent paid, with a headline rent of £925,000 per annum, or £8.19 psf. The agreement reflects the strong demand for high quality warehouse facilities, and the shortage of alternatives, in this key distribution location as well as the importance of the unit to the tenant's supply chain.

Alliance Healthcare is one of the UK's leading pharmaceutical wholesalers and distributors, servicing 16,500 community pharmacies, dispensing doctors and hospitals. Its distribution facilities deliver 28,000 deliveries per day - one delivery every 2.5 seconds - with Basingstoke increasingly importance as a key distribution hub within its South Eastern network.

Andrew Bird of Tilstone commented: "This major lease renewal demonstrates our strong asset management capabilities, as we aim to increase rental income and extend the WAULT of the portfolio by actively working with our tenant partners to secure deals that benefit both owner and occupier.

"Daneshill continues to be a key asset within Warehouse REIT's portfolio and we are very pleased that Alliance Healthcare has signed for a further ten years, demonstrating both the property's importance to its distribution network and the continued demand for well-located distribution warehouses close to major conurbations."

[spectoacc] 05/8/2019 06:31

Nice RNS re Boots this morning. Warehouses still going gangbusters, what a contrast to retail!

[bathcoup] 18/7/2019 16:36

@riverman77(#251) - That they've managed to close good deals should be seen as positive news.
@JGH03(#254) - I agree the acquisitions are not big. BTW some of the £120m firepower has already been spent(15Apr2019: £37m; 1Apr19: £4.2m).

[skyship] 17/7/2019 14:27

Apollo - had never heard of STP. A cursory look flags up 4 concerns:

# 41% of portfolio in Germany
# LTV high @ 44.2%
# 19% of shares still held in S.Africa, down from 33% last year, so a continuing tap
# Debt at Maturity of just 3yrs

Other aspects more interesting; especially the strategic plan for 100% UK Multi-let Industrial - currently at 43%; and target of 60% by yr end (Mar'20).

[jgh03] 17/7/2019 13:50

bathcoup (post 250), the announcement is fine as far as it goes but it talks of less than £5.3m spent out of over £120m available. I suspect that investors might react more strongly when the remaining 95% has been invested.

[riverman77] 17/7/2019 13:29

I thought Hansteen had sold most of their euro assets - should only be minimal euro exposure now. Not looked into Stenprop, but do like Urban Logistics as well - looks fairly similar to WHR but doesn't seem to be on such a buying spree.