Warehouse Reit Share Discussion Threads

[skinny] 22/12/2020 07:08

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WAREHOUSE REIT ACQUIRES 200,000 SQ FT LAST MILE WAREHOUSE PORTFOLIO FOR GBP18.6M

-GBP163 million of acquisitions completed since July capital raise-

Warehouse REIT, the AIM-listed company that invests in e-commerce urban and last-mile industrial warehouse assets in the UK, announces the acquisition of a portfolio comprising four single and multi-let distribution warehouse assets for GBP18.6 million. The purchase price reflects a blended net initial yield of 6.1%.

Situated in key strategic last mile distribution hubs within the North West and the West Midlands, the 200,000 sq ft portfolio is 100 per cent occupied on leases producing a total rent of GBP1.22 million per annum with an average rent GBP6.10 psf, which is both reversionary and offers good potential for rental growth. Whilst the portfolio already has a WAULT of circa five years, there is also good potential to increase the longevity of the income in the short term. The individual assets are:

-- Stonebridge Cross, Droitwich Spa, comprising two modern detached industrial units totalling 48,000 sq ft within the 77-acre Stonebridge Cross Business Park, situated two miles to the north west of Droitwich Spa town centre and three miles from Junction 5 of the M5, a key arterial route linking the Midlands with South West England. The asset is let to two service companies taking advantage of its close proximity to employment and ease of access to the national motorway distribution network.

-- Valley Point, Rugby, a 39,000 sq ft unit on Swift Valley Park, situated in one of West Midlands Prime industrial locations, with access to the M6 (J1) and the M1 (J19) in under ten minutes. The property has a short unexpired term and offers the potential to capitalise on its situation within the UK's 'Golden Triangle' formed by the M1, M6 and M69 motorways, providing access to 80% of the UK's population within a four-hour drive time.

-- 1 Kingsland Grange, Warrington, a 71,000 sq ft property on the established Kingsland Grange Business Park, in one of the UK's prime industrial, logistics and distribution locations located approximately three miles from Warrington town centre and adjacent to J21 of the M6. The property is currently let to a leading global supplier of high-performance plastic compounds.

-- Milner Street, Warrington, a 42,000 sq ft multi-let warehouse situated in a prime location in the heart of the Bank Quay Gateway Quarter close to Warrington town centre, a well-established commercial location. The property is fully let to Selco Trade Centres and UK Storage Company.

These latest additions continue the deployment of July's GBP153 million capital raise, providing multiple immediate opportunities for value creation through asset management, whilst further improving cost ratio efficiencies.

Andrew Bird, Managing Director of the Investment Advisor, Tilstone Partners Limited, commented: "We are pleased with this latest addition to the Company's portfolio, which represents an increasingly rare opportunity to acquire a strategic portfolio of assets, in tactical last mile distribution locations, capable of serving the growing e-commerce demand benefitting from ease of access to major UK conurbations in the North West and West Midlands regions. Furthermore, a number of lease events offer the opportunity to increase the longevity and quality of income over the short and medium term.

"Having invested the equity from July's capital raise, we remain focused on advising Warehouse REIT in deploying the remaining associated debt in order to further improve the portfolio metrics and continue to generate shareholder value."

-ENDS-

[makinbuks] 07/12/2020 12:33

Another decent acquisition by the looks of it. Contrast the 5.7% yield with the 6.7% paid for the non exec properties. So all the fundraise has now been spent at an average yield of 6%. I a hot market I think that's good going and all credit to them. I expect we'll get another fundraise shortly

[skinny] 07/12/2020 07:04

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Warehouse REIT continues to grow multi-let industrial exposure with GBP17.5 million Milton Keynes acquisition

Warehouse REIT, the AIM-listed company that invests in e-commerce urban and last-mile industrial warehouse assets in the UK, announces that it has acquired Granby Industrial Estate in Milton Keynes, comprising 24 urban logistics and trade counter units. The purchase price of GBP17.5 million reflects a net initial yield of 5.7%.

Granby Industrial Estate benefits from a highly prominent position opposite two of Milton Keynes' most popular leisure destinations, MK Dons Football Stadium and MK1 Shopping Park, circa three miles south of the town centre. Its appeal is further enhanced by being positioned just off the A5/A421 Junction in turn providing easy access to junctions 13 & 14 of the M1, thereby benefiting from excellent connectivity to the South East and wider national motorway network.

The 10-acre estate offers 147,000 sq ft of gross lettable area which is let to 16 tenants, across 19 of the 24 units, with occupiers including Toolstation, Sally Salon and an NHS Foundation Trust. The warehouses offer a range of unit sizes from 1,600 sq ft to 28,000 sq ft with the potential to increase the rental tone through continuing the refurbishment of the units and enhancing the occupier mix for urban logistics or trade counter uses. The estate generates total rental income of GBP1.1 million per annum equating to a low average rent of GBP7.20 per sq ft, with almost half of the space secured for over eight years.

Following this transaction, Warehouse REIT will have substantially deployed the proceeds of July's GBP153 million equity raise. Since April this year, the Company has acquired or agreed to acquire 1.7 million sq ft of warehouse space across six acquisitions, for a combined aggregate purchase price of GBP152 million, which will generate GBP9.2 million of new annualised rental income.

Andrew Bird, Managing Director of the Investment Advisor, Tilstone Partners Limited, commented: "This acquisition is a strong fit with the Company's strategy of buying in strong economically relevant locations with asset management opportunities; it offers both long-dated day one income whilst an element of vacancy, shorter leases and un-refurbished units provide the chance to capture the reversionary potential and significantly improve the rental profile.

"The purchase continues to focus the Company's portfolio on the urban logistics and trade counter sectors, two standout performers since the outbreak of the pandemic because of changing consumer shopping patterns. With over 15 million annual vehicle movements on the adjacent roads and rents in excess of around GBP40 per sq ft on the adjacent retail warehouse premises, there is potential scope to capture higher value uses. The transaction also establishes the Company's footprint in Milton Keynes, one of the UK's premier logistics hubs due to its unrivalled connectivity in the heart of the UK Growth Corridor."

-ENDS-

[makinbuks] 30/11/2020 15:32

hxxps://quoteddata.com/2020/11/qd-view-black-friday-boon-logistics/

[makinbuks] 24/11/2020 11:55

Thanks salchow, the shareholder circular is silent on the matter disappointingly but as you say the accounts of Greenstone Oxford show an acquisition for £31m in 2017 or early 2018 with additions of £3m the following year and now we are paying £44m. the cash consideration as I read it gives them their money back and the shares are therefore their profit which effectively they are rolling into WHR.

As I say, the valuation in todays terms looks reasonable and you can't argue with issuing shares at NAV and premium to then market price. So nothing to complain about but the management arrangements here are murky. That may be in everyones best interests in the long run and certainly while we are in a "hot" market.

[jombaston] 23/11/2020 16:39

I didn't know what to make of these related party transactions when I first read about it. I am sure the Directors are following all the appropriate procedures but it doesn't look good to me. I wonder how this sort of behavior would be regarded in a larger main market REIT? Surely if the Directors are getting a fair market price, they could have sold these properties to another company and WHR could have found something else to buy?

These guys are non-execs so fair enough they can pursue their own business interests, but the market is surely large enough that they don't have to get matters this messy. Why put themselves into such a conflict of interest?

[salchow] 23/11/2020 08:46

With regard to the questions raised by Sleepy and Makinbuks on 16th November, it appears that Greenstone Oxford probably bought the properties in September 2017 which was around the time that Warehouse REIT was formed. So yes, they seem to have bought them when they were directors of Warehouse REIT. They have made a very good profit by buying them for their own company in a period when prices of warehouses have risen and I guess so long as Warehouse REIT are paying current value there is not too much of an issue. Why they didn't have Warehouse REIT buy them it the first place at the much lower price I couldn't comment upon. Having bought lower down I have sold myself at the current increased price for a good gain but longer term it will probably be a reasonable investment with the directors having bought heavily in July at 110p.

[makinbuks] 19/11/2020 15:52

Couldn't see it this morning. Thought Id leave it and look again this evening

[petewy] 19/11/2020 10:19

Same things for me sleepy. email company.

[sleepy] 19/11/2020 09:36

Announcement this morning that Circular has been posted to shareholders and is now available on their website at This is a link to the investor section of their website and not to the Circular. Does anyone have a link to the Circular?

[sleepy] 17/11/2020 11:28

Yes

Presumably the Circular will answer the above questions as well as showing the valuation of each asset, when it was bought and how much Simon and Stephen paid for it.

[makinbuks] 17/11/2020 11:04

another interesting possibility.

[sleepy] 16/11/2020 18:22

Is it the case that Simon and Stephen used funds, raised from the Warehouse REIT IPO, which were then recycled through Tedel to purchase industrial properties for their own private company after the IPO?

[makinbuks] 16/11/2020 17:14

To be fair an initial yield of 6.7% looks a decent price to pay and furthermore they are taking part in shares issued at NAV but I share your concerns Sleepy. I think given the closeness of the transaction there should be more detail disclosed, namelu what they paid for these assets and when. So if they bough them ten years ago and have made a gain in line with markets fair enough but if they bought them whilst directors of WHR that begs a lot of questions.

[sleepy] 16/11/2020 16:38

Interesting deal

Greenstone Oxford had properties valued by Simon and Stephen, as Directors, at £34.1 million on 31 March 2020

Are these the properties WHR have just bought for £43.6 million?

Were any of them purchased by Greenstone while Simon and Stephen were also WHR Directors?

[skinny] 16/11/2020 07:07

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WAREHOUSE REIT TO ACQUIRE 570,000 SQ FT WAREHOUSE PORTFOLIO FOR GBP44 MILLION

-Continues deployment of July equity raise as portfolio passes 7.5 million sq ft-

Warehouse REIT, the AIM-listed company that invests in e-commerce urban and last-mile industrial warehouse assets in the UK, announces that it is to acquire a portfolio of five single-let and multi-let warehouse assets located across the UK (the "Portfolio"), totalling 570,000 sq ft (the "Transaction"), owned by Greenstone Property Holdings Limited ("Greenstone"). The purchase price of GBP43.6 million reflects an attractive blended net initial yield of 6.7% and provides a combined WAULT of 5.5 years.

Located in established logistics markets, the portfolio is 90 per cent occupied on leases with a total contracted annual rent of GBP2.95 million. The Portfolio has been independently valued by CBRE as at 29 September 2020 at GBP44.55 million in aggregate. The individual assets are:

-- Gateway Park, which accounts for 56% of the portfolio by value, is a 28-unit industrial estate totalling 220,000 sq ft adjacent to Birmingham Airport and less than two miles from Junction 6 of the M42, a key arterial route in the Midlands. The park generates GBP1.3 million per annum of contracted rent and is let to a high-quality tenant mix including global 3PL FedEx, pan-European freight distributor Circle Express and Swissport cargo services.

-- A 50,000 sq ft unit on Viables Business Park in Basingstoke, occupied on a lease expiring in 2026 by global golf manufacturer TaylorMade and serving as its European headquarters, guaranteed by Adidas. The property is let off a low passing rent of GBP422,000, reflecting sub GBP9 psf and is ideally located less than five minutes' drive from the town centre, whilst Junction 6 of the M3, which connects London and the South of England, is just 2.5 miles east of the park.

-- Chittening Industrial Estate in Avonmouth, outside of Bristol and within one mile of the new M49 motorway junction, is a 200,000 sq ft, 10-unit scheme generating GBP545,000 per annum of contracted rent. It is 88% let to a diverse range of tenants including Palletways UK, Encon Insulation and DS Smith.

-- A three-unit warehouse property on Newport Road, Cardiff, totalling 50,000 sq ft. The asset generates GBP519,000 per annum of topped up rent.

-- A 54,000 sq ft warehouse in Ebbw Vale, South Wales, leased to global 3PL DHL, on an eight-year term off a low rent reflecting just GBP3 psf.

These latest additions continue the deployment of July's GBP153 million equity raise and take Warehouse REIT's portfolio to over seven and a half million sq ft, providing multiple opportunities for value creation through asset management, whilst further improving cost ratio efficiencies.



more.....

[igoe104] 03/11/2020 14:33

If the S/p goes up 10% a year would good, as well as 5.6% yield thats not bad for a solid investment like this..

[chucko1] 03/11/2020 11:22

I will eat all the hats at Lock's of St. James (with the profits) should this stock double within a year. This is utility real estate, not a flying car stock.

[fuji99] 03/11/2020 09:32

IMO this stock will progress in a "silent rising mode" for a while until it gets noticed by PI's. So the earlier one accumulates, the better it will be. One can at least double his/her money from here in a maximum of 1 year.

[igoe104] 03/11/2020 09:19

Nav £118.4, yield near 5.7%. These are definitely worth adding too.

[chucko1] 03/11/2020 08:33

"Hard times" - yes, but WHR are already seen as a mild winner from the situation, so I am not sure there are going to be riches here. However, as a solid income producer at 5.68% yield, yes, bring it on. I have quite a few.

[fuji99] 03/11/2020 08:25

IMO if they are doing so well during hard times, what will be their performance when the economy will prosper ? I will keep adding for the long term. This is a decent stock in a decent sector in great demand as most industries do not want to build too many warehouses, preferring to rent.

[ec2] 03/11/2020 07:41

Pleasing Interims today. 97.1% rent collection through to 30 Sept. They are certainly well positioned in the very much in demand area of the property market. This level of good performance looks likely to continue.

[fuji99] 02/11/2020 16:38

Very interesting stock and sector. Just bought today.