Warehouse Reit Share Discussion Threads

[killing_time] 07/2/2021 10:02

Harlow is just down the road from me and last year i worked on a warehouse there that one of our clients bought. He bought the biggest one he could get paying about £2m a year on a 10 year lease. After they moved in they realised it wasn't big enough as they are growing really fast.
The problem is there just isn't that many on the market down here. Where our new warehouses are situated (WHR) its absolutely booming around this area. Getting 8.6% yield is great business and i wouldn't worry about them having to find new clients later down the line if that situation arose.
Bottom line, location is key and they have it spot on here. KT.

[cwa1] 05/2/2021 16:03

Placing results:-

[makinbuks] 05/2/2021 13:12

Whats wrong with the Harlow property? An initial yield of 8.6% seems a steal in this market. Is it the short tenure?

[keyno] 05/2/2021 13:10

I'd have thought the proposed movement to the Main Market would more than make up for the placing news.

[makinbuks] 05/2/2021 12:46

To be fair that is right, the differences here are very small. Good news about the full list too

[puzzler2] 05/2/2021 12:23

Decided to bite the bullet today and increase my shareholding by 10% anyway, by pretending that it was a rights issus and buying in the market whilst the share price is temporarily depressed - a couple of pence off the rights issue price is no big deal. Onwards and upwards.

[skinny] 05/2/2021 12:22

Yes, I've used them once recently and they do seem to be making inroads in to 'old school' issues.

[makinbuks] 05/2/2021 12:20

Yes I get that a rights issue is costly and long winded. But adding Primary Bid to the placing gives PI's the same access as the institutions. I used it for an issue by Augmentum Fintech and it was a superb service. I'm sure a lot of the platforms must be looking at similar offerings

[puzzler2] 05/2/2021 12:15

I imagine that most investors here would happily have participated in a 1 for 10 rights issue (which is roughly what it is) - I know that I would have been pleased to have taken up my rights. ...but I suppose it's just too difficult and inconvenient for management. I'll be writing to one of the directors, a former partner of mine, to express my displeasure.

[makinbuks] 05/2/2021 10:29

The following has some relevance to the market but not startling

hxxps://www.insidermedia.com/blogs/south-west/business-matters-phenomenal-demand-for-industrial-logistics-space-throughout-pandemic-means-businesses-seeking-quality-space-must-plan-ahead?utm_source=southwest_newsletter&utm_campaign=southwest_news_tracker_features_1_tracker&utm_medium=insider_features_article

[makinbuks] 05/2/2021 10:28

Somewhat surprised they haven't gone for a bigger fund raise, I will be taking up

[skyship] 05/2/2021 08:18

Knocked off the top by placing of 40m shares @ 121p to fund stated acquisitions - see news in Header...

[royalalbert] 05/2/2021 07:24

Ex divi date 05/03/2021, nothing wrong with giving them the divi.

[18bt] 05/2/2021 07:12

Not quite sure why they need to give the placees the divi that has already been declared, but otherwise seems a sensible move.

[skinny] 05/2/2021 07:06

.




Warehouse REIT, the AIM-listed company that invests in e-commerce urban and last-mile industrial warehouse assets in the UK, announces a placing to raise gross proceeds of up to GBP45.9 million through the issue of up to 37,934,400 new ordinary shares (the "Placing Shares") at a price of 121.0 pence per Placing Share (the "Placing Price") (the "Placing").

The Placing proceeds, together with the Group's existing facilities, will be used to help finance the acquisition of two adjacent distribution warehouses in Harlow for GBP13.9 million (including costs) and two further assets, which are under offer, as described below.

Highlights

-- Demand for warehouse space is coming from an increasingly diversified occupier base, many of whom are businesses responding to structural changes in their markets driven by the growth in e-commerce, with the current COVID-19 pandemic accelerating this trend.

-- This diversified occupier base competes for the same well-located buildings close to conurbations and transport infrastructure. The investment adviser to Warehouse REIT, Tilstone Partners Limited ("TPL"), believes that modern purpose-built assets with these attributes will outperform wider rental growth forecasts.

-- Despite increasing investor appetite for industrial exposure, the Company continues to benefit from the strength of its UK wide origination capability and is pleased to report the following progress on investment activity:

o The Group has acquired (as announced today) two reversionary freehold distribution units in Harlow, in the south-east of England, for GBP13.9 million (including costs), reflecting a Net Initial Yield ("NIY") of 8.6%.

o The Group has under offer two further purpose built modern multi-let warehouse estates located in two separate premier UK business locations, both being in very close proximity to key transportation hubs, for an aggregate consideration of GBP43.5 million (including costs) reflecting a blended NIY of 5.6%.

o The combined consideration of these three transactions (the "Acquisitions") equates to GBP57.4 million (including costs) to give a blended NIY of 6.3%.

-- Since July 2020, the Group has completed on GBP162.0 million of acquisitions totalling 1.8 million sq ft and taking the portfolio to approximately 7.9 million sq ft.

-- The Group has an attractive pipeline of further near-term acquisition opportunities which amounts to GBP263.3 million to give a blended NIY of 5.9% (when combined with the above mentioned GBP57.4 million of acquisitions).

-- Since 1 October 2020, the Group has completed 19 new lettings at 6.9% ahead of 30 September ERVs and 24 lease renewals at 5.6% above previous rent, across 0.2 million sq ft of space, generating GBP1.5 million per annum of contracted rent.

-- For the financial year ending 31 March 2021, the Group has now received 96% of rents due, which is expected to increase further over the quarter.

-- Proposed Placing to raise up to GBP45.9 million of gross proceeds at a Placing Price of 121.0 pence per Placing Share the proceeds of which will be used, together with the Company's existing facilities, to fund the Acquisitions.

-- Investors participating in the Placing will be eligible for the third quarterly dividend of 1.55 pence per share, which was declared on 26 January 2021 and is payable on 1 April 2021 to Shareholders on the register on 5 March 2021.

-- The Company has commenced the process of applying to the Financial Conduct Authority ("FCA") for the Company's issued share capital to be admitted to the Premium Segment of the Official List and to trading on the Main Market of the London Stock Exchange ("LSE") and hopes to conclude the process during its interim financial period ending 30 September 2021 (subject to FCA approval).

Andrew Bird, Managing Director of Tilstone Partners Limited, commented:

"We are seeing unprecedented demand for modern, fit-for purpose warehouse space in economically relevant locations, underpinned by e-commerce growth which has accelerated as businesses of all size look to adapt and future proof their operations. Having committed to an investment strategy founded on this evolution back in 2013, the Company has been able to amass a portfolio of scale, delivering both rental and capital growth even against the backdrop of the current pandemic, allowing for the generation of significant returns for shareholders.

"Despite increasing competition for exposure to what has been a standout performing asset class, a combination of our on the ground intelligence and deep relationships and a wide pool of motivated sellers has seen the Company deploy the proceeds from last year's capital raise on schedule and into highly attractive opportunities, offering both strong day one income and longer-term asset management opportunities. Having identified a sizeable pipeline at what we believe is favourable pricing and which will be immediately accretive, we look forward, with shareholder support, to building on this momentum."

Background to the Acquisitions

TPL continues to believe that demand for warehouse space in strong locations across the UK is outstripping supply. Businesses are responding to structural changes in their markets driven by the growth of e-commerce. The acceleration in this trend has been driven by the current Covid-19 pandemic and has resulted in an increasing need for last-mile logistics space to allow businesses to rationalise their supply chains and successfully serve their customers.

In addition, whilst the market for industrial real estate assets remains competitive, the Group continues to have two key advantages. Firstly, the strength of the Group's balance sheet provides vendors with a confidence that the Group will execute transactions without delay. Secondly, TPL's depth of experience of buying and letting commercial properties throughout the UK and its strong relationships with key participants operating in the warehouse sector means the Group continues to benefit from an attractive pipeline of acquisition opportunities, a proportion of which are sourced off-market, from both private and institutional vendors.

Details of the Acquisitions

The Group today announced the acquisition of two adjacent distribution warehouses in Harlow, totalling 177,000 sq ft, for a consideration of GBP13.9 million (including costs) reflecting a NIY of 8.6%. Situated in the heart of the established Templefields industrial area, Harlow's premier industrial and distribution location, the property comprises two units of 115,000 sq ft and 62,000 sq ft respectively. It generates GBP1.2 million of contracted rent per annum which equates to a low passing rent of GBP6.72 per sq ft, offering significant potential for rental growth. The larger unit is let to the UK subsidiary of a global beauty & cosmetics company, with over 4 years remaining on the lease, and reflecting the strategic location, serves as its primary UK distribution hub. The second unit is occupied by a specialist in shop fittings and supplies currently assisting retailers with health and safety and PPE, on a short term lease.

The Group has under offer two purpose built modern multi-let warehouse estates located in two separate premier UK business locations, both being in very close proximity to key transportation hubs, for an aggregate consideration of GBP43.5m (including costs). The properties generate a combined passing rent of just over GBP2.4 million per annum from diversified occupiers, reflecting a blended NIY of 5.6%. These two acquisitions both demonstrate a number of attractive characteristics, fit with the Group's stated investment strategy and offer short and longer-term asset management opportunities.

The combined consideration of these three transactions equates to GBP57.4 million (including costs) to give a blended NIY of 6.3%.

Current trading

In its trading update covering the period since 1 October 2020 to 27 January 2021, the Company reported that rent collection has remained strong with 95% of the total rent due on the December quarter date collected as at 25 January 2021, of which 3% has been deferred by agreement with customers. This level of rent collection is higher than at the equivalent date for the March, June and September quarters. For the financial year ending 31 March 2021, the Group has now received 96% of rents due, which is expected to increase further over the quarter.

During the period, the Group completed 19 new lettings, 6.9% ahead of 30 September ERVs and 24 lease renewals, 5.6% above previous rent, across 0.2 million sq ft of space, generating GBP1.5 million per annum of contracted rent. The portfolio's total occupancy increased to 94.9% with effective vacancy of only 2.6% excluding units under refurbishment or under offer to let. The Company has also completed the acquisition of 11 warehouse assets totalling 0.9 million sq ft for a combined consideration of GBP80.2 million (excluding costs), reflecting a blended net initial yield of 6.3%.

The industrial and warehouse sector has continued to outperform the UK property market with investors attracted by rental growth and secure income which is putting downward pressure on yields. According to the CBRE UK Monthly Index, industrial capital values increased by 6.1% in the three months to 31 December 2020, with rental growth of 1.5%. The next valuation date for the Group's portfolio, which was valued at GBP563.2 million at 30 September 2020 (excludes acquisitions made post 30 September 2020), will be 31 March 2021.

Proposed move to Main Market of the London Stock Exchange

As disclosed in the Company's prospectus published on 18 June 2020, the Board has been considering moving the Company's admission to the Main Market and for its entire issued share capital to be admitted to the premium listing segment of the Official List of the FCA and to trading on the Main Market of the London Stock Exchange. The Board believes this would better align the Company with similarly sized companies in the sector and afford it access to a wider institutional investor base in the UK and overseas.

The Company confirms that, in conjunction with its professional advisers, it has begun this process and has made an initial submission to the FCA to assess its eligibility for the Company's admission to the FCA's Official List. The Company expects to conclude the process (subject to meeting the FCA's eligibility criteria and successful approval of an accompanying prospectus) during its interim financial period ending 30 September 2021.

Background to and reasons for the Placing

In the six month period from 1 July 2020 to 31 December 2020, the Group completed the acquisition of 13 warehouse assets totalling 1.8 million sq ft for a combined consideration of GBP162.0 million (excluding costs), reflecting a blended NIY of 5.9% and has invested the proceeds from the raise in line with management's target.

In addition to the Acquisitions described above, the Group continues to see attractive acquisition opportunities, including several that are well advanced, that meet Warehouse REIT's investment criteria, at both an individual asset and portfolio level.

As at 31 December 2020, the Group had a pro forma LTV ratio of around 30.0% based on the 30 September 2020 portfolio valuation adjusted for subsequent purchases and disposals (30 September 2020: 20.2%). The Group had cash of around GBP8.0 million and also around a further GBP40.0 million of undrawn facilities and GBP55.0 million of accordion available. There are no debt maturities until January 2025 with an option to extend for a further two years. Recognising the need for prudence in uncertain times the Company's stated intention remains to have an LTV ratio of circa 35%.

In order to help finance the Acquisitions described above whilst continuing to maintain an appropriate LTV ratio, the Company is today announcing the Placing to raise up to GBP45.9 million of gross proceeds at a Placing Price of 121.0 pence per Placing Share.

The Company has consulted with a number of its leading shareholders regarding the rationale for the Placing and its non-pre-emptive nature ahead of this Announcement. The Board's belief that the Placing is in the best interests of shareholders and will promote the success of the Company has been strengthened by these discussions. The proposed issue and allotment of the Placing Shares is within the existing shareholder authorities granted to the Company at the Annual General Meeting held on 14 September 2020.

The Placing

The Company is proposing to raise up to GBP45.9 million through the issue of up to 37,934,400 Placing Shares at the Placing Price of 121.0 pence per share. The Placing Price represents a premium of 2.2 per cent. to the Company's EPRA Net Tangible Asset Value as at 30 September 2020 (unaudited) of 118.4 pence per Ordinary Share. The Placing Price represents a discount of 4.0 per cent. to the closing price per Ordinary Share on 4 February 2021 of 126.0 pence per Ordinary Share.

The Placing will be subject to the terms and conditions set out in the Appendix to this Announcement. The Placing will be conducted by way of an accelerated bookbuild (the "Bookbuild") which will open immediately following the release of this announcement. Peel Hunt LLP ("Peel Hunt") is acting as sole bookrunner in connection with the Placing. The Placing Shares are not being made available to the public and are only available to certain invited eligible institutional investors in certain specified jurisdictions as detailed in the terms and conditions.

Financial impact and dividends

The Company intends to use the net proceeds from the Placing to help finance the Acquisitions described above. In the event that any of the Acquisitions referred to above do not occur, the Company intends to use the net proceeds of the Placing for potential alternative acquisitions for which the Group is currently in advanced negotiations.

Following completion of the Acquisitions described above and assuming gross proceeds of approximately GBP45.9 million from the Placing, it is anticipated that the Group's LTV will be approximately 30.0% on a pro-forma basis (adjusting the LTV of 20.2% as at 30 September 2020 for completed acquisitions since that date). Management continue to believe that a LTV ratio of between 30% and 40% provides an optimum capital structure for the Group over the longer term. The additional equity allows the Group to make further acquisitions accretive to earnings whilst maintaining an LTV ratio of circa 35%.

Management continue to target a total dividend of 6.2 pence per share for the financial year. The Company has paid or declared dividends totalling 4.65 pence per share for the financial year ending 31 March 2021, having declared its third quarterly interim dividend of 1.55 pence per share on 26 January 2021. Investors participating in the Placing will be eligible for the third quarterly dividend, which was declared on 26 January 2021 and is payable on 1 April 2021 to Shareholders on the register on 5 March 2021.

Details of the Placing

Peel Hunt has entered into the Placing Agreement with the Company under which, subject to the conditions set out in that agreement, Peel Hunt will agree to use its reasonable endeavours to procure subscribers for the Placing Shares at the Placing Price.

A description of certain relevant aspects of the Placing Agreement can be found in the terms and conditions contained in the Appendix to this Announcement under the heading "Participation in, and principal terms of, the Placing". The Placing will be made on a non-pre-emptive basis. The Company will rely on the waiver of pre-emption rights authorities given by shareholders of the Company at the Annual General Meeting held on 14 September 2020.

The Placing is conditional upon, inter alia, Admission becoming effective not later than 8.00 a.m. (London time) on 9 February 2021 (or such later time and/or date, being not later than 8.00 a.m. (London time) on 28 February 2021, as Peel Hunt may agree with the Company) and the Placing Agreement not being terminated in accordance with its terms before that time.

Prior to launch of the Placing, the Company consulted with a number of its shareholders to gauge their feedback as to the terms of the Placing. Feedback from this consultation was highly supportive and as a result the Board has chosen to proceed with the Placing. The Placing is being structured as a Bookbuild to minimise execution and market risk. The Board intends to apply the principles of pre-emption when allocating Placing Shares to those shareholders that participate in the Placing.

Application will be made for the Placing Shares to be admitted to trading on AIM ("Admission"). Subject to Admission becoming effective, it is expected that settlement of subscriptions in respect of the Placing Shares and trading in the Placing Shares will commence at 8.00 a.m. on 9 February 2021.

The above proposed dates may be subject to change at the discretion of the Company and Peel Hunt.

The Placing Shares will rank, from Admission, pari passu in all respects with the Company's existing Ordinary Shares and will have the right to receive all dividends and distributions declared in respect of issued Ordinary Share capital of the Company after Admission including the third quarterly dividend, which was declared on 26 January 2021 and is payable on 1 April 2021 to Shareholders on the register on 5 March 2021.

The Appendix to this Announcement (which forms part of the Announcement) sets out the terms and conditions of the Placing. This Announcement, including the Appendix, should be read in its entirety. By choosing to participate in the Placing and by making an oral or written offer to acquire Placing Shares, investors will be deemed to have read and understood this Announcement in its entirety (including the Appendix) and to be making a legally binding offer on the terms and subject to the terms and conditions in it, and to be providing the representations, warranties and acknowledgements contained in the Appendix.

Unless otherwise indicated, capitalised terms in this Announcement have the meaning given to them in the definitions section included in the Appendix.

[skinny] 05/2/2021 07:04

.




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 two adjacent distribution warehouses in Harlow, totalling 177,000 sq ft, for GBP13.9 million including costs. The purchase price reflects a net initial yield of 8.6%.

Situated in the heart of the established Templefields industrial area, Harlow's premier industrial and distribution location, the property comprises two modern units of 115,000 sq ft and 62,000 sq ft respectively. It generates GBP1.2 million of contracted rent per annum which equates to a low passing rent of GBP6.72 psf, offering significant potential for rental growth. The larger unit is let to the UK subsidiary of a global beauty & cosmetics company, with over four years remaining on the lease, and reflecting the strategic location, serves as its primary UK distribution hub. The second unit is occupied by a specialist in shop fittings and supplies, currently assisting retailers with H&S and PPE, on a short term lease.

Harlow is an established commercial centre in the South East, located in the north east quadrant of London's Orbital M25 motorway and 30 miles (45 km) north of Central London. It forms part of the London commuter belt, with approximately 200,000 people living within a 6 mile (10 km) radius. It benefits from excellent arterial connectivity, 4 miles (6 km) from Junction 7 of the M11 and 8 miles (13 km) from Junction 27 of the M25.

The South East industrial market continues to be characterised by strong take up with a number of major international and national retailers, 3PLs and manufacturers basing their national distribution operations in the region in order to benefit from the proximity to London, the South East and the Midlands. Harlow is especially attractive to occupiers due to a combination of readily available labour at comparably lower rates and discounted rental levels versus other M25 orbital locations.

Andrew Bird, Managing Director of the Investment Advisor, Tilstone Partners Limited, commented: "Harlow is a highly sought after and fast growing South East industrial location offering access to a significant portion of the UK population in a relatively short drive time. These acquisitions fit with the Company's strategy of acquiring a mix of strong day one income, near term lease events allowing us to capture the reversion as well as longer term asset management opportunities.

"Despite increasing investor appetite for industrial exposure, the strength of our UK wide origination capability means we are constantly screening new opportunities. Advanced due diligence and negotiations are underway on several assets that meet Warehouse REIT's investment criteria, at both an individual asset and portfolio level."

[makinbuks] 28/1/2021 09:20

From BBOX this morning:

High levels of investment demand in Q4 2020 drove prime logistics yields below 4%

[makinbuks] 27/1/2021 11:31

A yield of 5.9% from an asset class where valuations rise by 6.1% in a quarter. Very attractive. New funds swiftly deployed at 6.3% average

[skinny] 27/1/2021 07:05

.




Strong rent collection, further reduction in vacancy and growing income achieved alongside continued deployment of equity raise proceeds with GBP80.2m of acquisitions

Warehouse REIT, (the "Company"), the AIM-listed specialist warehouse investor, announces a trading update covering the period since 1 October 2020.

Rent collection has remained strong with 95% of the total rent due on the December quarter date collected as at 25 January 2021, of which 3% has been deferred by agreement with customers. This level of rent collection is higher than at the equivalent date for the March, June and September quarters. For the financial year ending 31 March 2021, the Company has now received 96% of rents due, which is expected to increase further over the quarter.

During the period the Company completed 19 new lettings and 24 lease renewals across 238,900 sq ft of space. These transactions completed ahead of 30 September 2020 ERVs, generating GBP1.5 million per annum of contracted rent. The portfolio's total occupancy has increased by 0.6% to 94.9% (as at 31 December 2020) with effective vacancy just 2.6% excluding units under refurbishment or under offer to let.

The Company also completed the acquisition of 11 assets for a combined price of GBP80.2 million (before costs), at an average net initial yield of 6.3%, taking the portfolio to over seven and a half million sq ft.

Andrew Bird, Managing Director of Tilstone Partners Ltd, the investment advisor of Warehouse REIT, commented: "Alongside Warehouse REIT's disciplined deployment of shareholders' funds from the July 2020 fundraise, we continue to deliver strong operational performance from the Company's diversified portfolio of UK warehouse assets. Once again, the Company has achieved rents on new lettings in excess of valuation as competition for space from a broad range of tenants has translated into increased occupancy levels. This has been achieved against a backdrop of local and national lockdowns, reflecting the tenant critical nature of our assets and strength of our occupier relationships."

"Whilst the market for industrial assets remains competitive, we continue to identify attractive acquisition opportunities. Advanced purchase due diligence is underway on several assets that meet Warehouse REIT's investment criteria, at both an individual asset and portfolio level. Underpinned by the Company's high levels of rent collection and confidence in the ongoing asset management and with the benefit of the recent deployment of capital ahead of target, the Company is pleased to have declared a quarterly dividend of 1.55 per share."

Market overview

The industrial and warehouse sector has continued to outperform the UK property market with investors attracted by rental growth and secure income which is putting downward pressure on yields. According to the CBRE UK Monthly Index, industrial capital values increased by 6.1% in the three months to 31 December 2020, with rental growth of 1.5%. The next valuation date for the Company's portfolio will be 31 March 2021.

Asset management

The 19 new lettings represent 120,600 sq ft of floor space, generating rental income in excess of GBP714,000 per annum, 6.9% ahead of 30 September 2020 ERVs. The Company has continued to capture reversionary potential from the portfolio, with 24 lease renewals generating a combined annual rent of GBP773,000, an uplift of 5.6% compared to the previous rent.

Highlights during the period include:

-- A new 10-year lease with no break to a leading building and construction company, on a 17,000 sq ft unit at Delta Drive, Tewkesbury. The rent of GBP110,000 per annum represents a 31.6% premium to the 30 September 2020 ERV.

-- A 21,000 sq ft letting to a home furniture company, at Farthing Road, Ipswich, on a five-year lease with a break at year three, at GBP103,000 per annum, 11% ahead of the 30 September 2020 ERV.

-- The renewal of 15,000 sq ft and an additional letting of a 6,000 sq ft to an outdoor sports company that has grown its presence online and internationally. The new lease generates total rent of GBP97,000 per annum secured over a 10-year term, with a break at year 5; the renewal generates income 27% ahead of the previous rent.

-- A 9,000 sq ft unit at Gawsworth Court, Warrington has been re-let on a four and a half year term, to a logistics service provider, at 36.8% ahead of the previous rent.

In the quarter from 1 October 2020 to 31 December 2020, the total portfolio occupancy increased from 94.3% to 94.9%, with the effective vacancy rate only 2.6% with 1.7% of the portfolio ERV under refurbishment and a further 0.8% under offer to let. The space currently under offer will deliver approximately GBP0.4 million per annum of rent, with lettings 6.8% ahead of 30 September 2020 ERVs. Occupancy excluding units under offer and units undergoing refurbishment was 97.4% as at 31 December 2020 compared to 96.6% as at 30 September 2020.

Since 31 March 2020 contracted rent for properties owned throughout the period has increased by 1.9%, reflecting the positive impact of new lettings as well as rent reviews and renewals which more than offset space returned. Total contracted rent is now GBP40.2 million (as at 31(st) December 2020).

Acquisitions and disposals

Since 1 October 2020 the Company has completed the acquisition of eleven warehouse assets totalling 924,000 sq ft for a combined consideration of GBP80.2 million before costs, reflecting a blended net initial yield of 6.3%.

A total of GBP162 million of acquisitions have now been completed since the July 2020 capital raise, providing multiple opportunities for value creation through asset management, whilst further improving cost ratio efficiencies, with the proceeds invested in line with target. The disposal of one small non-core asset was completed during the period for GBP0.7 million, reflecting a 5.5% net initial yield.

The acquisitions since 1 October 2020, which all completed in December, include:

-- A portfolio of five single-let and multi-let warehouses located in established logistics markets totalling 570,000 sq ft from Greenstone Property Holdings Limited. The price of GBP43.6 million reflected an attractive net initial yield of 6.7%. The transaction was satisfied by a combination of cash and GBP9.0 million by the allotment and issue of 7.6 million Ordinary Shares.

-- Granby Industrial Estate in Milton Keynes for GBP17.5 million, at a net initial yield of 5.7%. The 147,000 sq ft multi-let estate is located three miles south of the town centre and with easy access to junctions 13 and 14 of the M1 with a low average rent of GBP7.20 per sq ft.

-- A portfolio of four distribution warehouses for GBP18.6 million reflecting a blended net initial yield of 6.1%. Located in key strategic last mile distribution hubs in the North West and the West Midlands the 200,000 sq ft portfolio is fully-let with an average rent of GBP6.10 per sq ft, which is both reversionary and offers good potential for rental growth.

Balance sheet and financing

As at 31 December 2020, the Company had cash of circa GBP8 million and a pro forma LTV ratio of approximately 30% based on the 30 September 2020 portfolio valuation adjusted for subsequent purchases and disposals (30 September 2020: 20.2%). There are also approximately a further GBP40 million of undrawn facilities and GBP55 million of accordion available. There are no debt maturities until January 2025 with an option to extend for a further two years. Recognising the need for prudence in uncertain times the intention remains to have an LTV ratio of approximately 35%.

Dividend

Yesterday the Company declared its third quarterly interim dividend for the financial year ending 31 March 2021 of 1.55 pence per ordinary share payable on 1 April 2021 to shareholders on the register on 5 March 2021. The ex-dividend date will be 4 March 2021. The dividend of 1.55 pence per ordinary share will be paid in full as a Property Income Distribution. The dividend target for the year is to pay dividends totalling at least 6.2 pence per share. Thereafter, the Company will adopt a progressive dividend policy, in line with anticipated growth in earnings.

[nerja] 21/1/2021 12:25

Seems to be trying to breakout

[ec2] 03/1/2021 11:49

Thanks. Good to know what's driving the price movement.

[petewy] 31/12/2020 18:32

Big tip Markie a whole page.

[markie7] 31/12/2020 18:01

Tipped in IC as a 2021 prospect

[makinbuks] 22/12/2020 10:42

Another "steady as she goes" acquisition