Warehouse Reit Share Discussion Threads

[skinny] 12/4/2022 08:46

RBC Capital Markets Sector perform 167.80p 0.00p 180.00p Reiteration

[makinbuks] 26/1/2022 10:46

"According to the CBRE UK Monthly Index, industrial capital values increased by 13.9% in the quarter to 31 December 2021" Looking good for NAV update at 31st March

The fact that the manager chooses to pursue development projects and emphasizes lease enhancement initiatives indicates that there is little available in the open market to acquire at sensible prices.

Strong hold for me

[skinny] 26/1/2022 08:07

Yes - well received :-

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Trading Update

Record levels of occupier demand drive new lettings significantly ahead of ERVs

Warehouse REIT, the AIM-listed specialist warehouse investor, announces a trading update covering the period since 1 October 2021.

During the period the Company completed 12 new lettings and 10 lease renewals across 141,400 sq ft of space. These transactions were completed at 10.5% ahead of 31 March 2021 ERVs, generating GBP0.9 million per annum of contracted rent. The portfolio's total occupancy has decreased by 1.1% from 30 September 2021 to 93.5% (as at 31 December 2021), however effective vacancy is just 1.6% excluding units under refurbishment or under offer to let (30 September 2021: 2.5%). The space currently under offer should deliver approximately GBP1.1 million per annum of rent.

Further progress has been made at the Company's Radway Green site in Cheshire, with the completed acquisition of an adjoining owner's 16 acre site for GBP7.5 million before costs. The Company now has full ownership of the 41 acre site, with planning consent for 803,000 sq ft of warehouse space. In addition, the Company has exchanged contracts to acquire a further 60 acres of land zoned for employment. As previously announced, a planning application has been submitted for an additional 1 million sq ft. Subject to planning, the entire scheme has the potential for c. 1.8 million sq ft of warehouse space in a prime logistics location, less than 1.5 miles from Junction 16 of the M6 motorway.

The Company also reaffirms its near-term intention to move to the Main Market of the London Stock Exchange.

Andrew Bird, Managing Director of Tilstone Partners Ltd, the investment advisor of Warehouse REIT, commented: "Occupational demand saw another record year in 2021, with take-up of UK warehouse space exceeding 50 million sq ft, meaning that supply is becoming increasingly constrained. It is against this backdrop that we have achieved new lettings substantially ahead of ERVs, which demonstrates the appeal of Warehouse REIT's space to occupiers and has established a new rental tone across a number of the Company's multi-let estates. Demand shows no sign of slowing, reflected by the level of space currently under offer at rental levels materially ahead of ERVs."

"This tightening of supply coupled with continued investment yield compression is underpinning the dual focus on continued asset management successes, alongside bringing forward the Company's development pipeline, notably the 100 acres at Radway Green."

Market overview

The industrial and warehouse sector has continued to outperform the UK property market with investors attracted by strong rental growth and secure income, which has put downward pressure on yields. According to the CBRE UK Monthly Index, industrial capital values increased by 13.9% in the quarter to 31 December 2021, with rental growth of 4.1%. The next valuation date for the Company's portfolio will be 31 March 2022.

Rent collection

Rent collection has remained strong with over 98% of rent due for the financial year ending 31 March 2022 collected. Rent collected for the current quarter is expected to be in line with previous quarters.

Asset management

The 12 new lettings represent 41,300 sq ft of space and were achieved at 10.4% ahead of 31 March 2021 ERVs, generating contracted rent in excess of GBP406,000 per annum. The Company has continued to capture reversionary potential from the portfolio, with 10 lease renewals generating a combined contracted rent of GBP511,000, an uplift of 23.5% compared to the previous rent and 11.5% ahead of 31 March 2021 ERVs.

Highlights during the period include:

-- A new 15-year lease with no break to a leading international food operator, on a 4,000 sq ft unit at Newport Road, Cardiff. The rent of GBP105,000 per annum represents a 23.5% premium to 31 March 2021 ERV.

-- A 25,000 sq ft lease renewal at Rossendale Industrial Estate in Burnley. The new lease generates total rent of GBP114,000 per annum secured over a 10-year term, with a break at year five and is 39.0% ahead of the previous rent.

-- A 37,000 sq ft lease renewal at Maxwell Road, Peterborough, for 10 years with no break. The new lease generates GBP160,000 per annum and is 11.0% ahead of the previous rent.

-ENDS-

[markie7] 26/1/2022 08:04

Nice update. Can't helping thinking they need to comment on dividend growth if they want these shares to break out of the recent range. Happy holder though, it's been a great run

[makinbuks] 08/12/2021 12:19

Nice article, can't argue with any of it

[skinny] 20/11/2021 17:12

From today's Daily Mail :-

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[bathcoup] 15/11/2021 18:26

Clever
"LTV ratio 26.2% providing firepower of c.£100m based on maximum level of 35%"
(Half-year results presentation on 11 Nov 2021)

[earwacks] 15/11/2021 10:00

They do have cash but also they already own sites with possible development opportunities. The last fund raise was oversubscribed. The placing was hardly discounted and never dropped below that price which is a rarity in the history of placings. I am more than happy and prepared to take part if theree is one. However they may wait till move to main index and the share price is nearer £2 as forecast by one broker

[clever] 15/11/2021 09:30

Do WHR still have cash in the bank for further acquisitions? Otherwise they will need to do a new round of fund raise soon.

[skinny] 12/11/2021 18:14

Interesting view nimbo1 - I hold SHED and my wife holds WHR!

[nimbo1] 12/11/2021 17:46

I decided I don't like shed raising 400 mil - too much imo given existing portfolio size and will be drag on performance.

Also reading the results for WHR there is substantial development upside mooted and larger insider ownership. Don't get me wrong I've done well from shed and would be back at a lower price but for the moment I think this is better.

[makinbuks] 12/11/2021 15:54

Interesting Nimbo, I hold both although more here. I like the initial yields SHED seems still to be finding and if anything they should gain even more than WHR if yields contract.

[nerja] 12/11/2021 12:00

Let’s hope can crack that 166/168 level this time

[nimbo1] 12/11/2021 11:35

I sold my urban logistics reit and put it in here

[makinbuks] 12/11/2021 10:16

All helps, directors own 6% I think

[petewy] 11/11/2021 19:21

Yeah Chunkie

[nerja] 11/11/2021 17:37

A nice director buy

[makinbuks] 09/11/2021 09:02

Yes been in from the start, attracted by the yield! Would never have imagined NAV could rise by 50%+ in such a short period of time. Will attend the presentation at 10:30 and expect they will emphasise the rental potential

[igoe104] 09/11/2021 08:44

Excellent set of results, these have frequently trading 20% above net assets. So we could see £1.80 over the coming month..

Started buying these at 99p, so I'm a happy longterm holder.

[earwacks] 09/11/2021 08:09

Stonking set of results. Net tangibles £1.52 per share. Portfolio up 9.4% since March. Only down side is the main index beckons. I suppose that makes them more attractive to the big investors and clearly they have a lot of ambition for major growth. Must be a decent rerate on the cards.

[bountyhunter] 07/11/2021 09:28

Skyship - I can easily add those, are they all REITS? I only started the thread yesterday so the header can be expanded on, I could see there was no existing thread available to compare REITs which is why I created a thread. The idea is to compare existing REITs and highlight IPOs and placings/public offerings.
There are two charts now comparing the share performance of nine REITs over the past year, both with SUPR as a baseline. (The limit is five shares per chart but more charts can be added). The advantage of charts over tabulated text is that they are self updating with a rolling year.
There is also a link to fundamentals of all UK listed REITs, again I've put this as a link as directly tabulated data would soon become stale.