Warehouse Reit Share Discussion Threads

[chucko1] 27/9/2018 12:47

I did buy more this morning. What was notable was that the first small trades were at 98.00, then when I bought further at 98.20, the bid was 98.09. Tight, and no stamp duty to pay either. Next offer is now 98.309, so it’s pretty thin, I suppose, and yet it can be traded tightly if desired.

I wonder if this is one of those boring stocks with a small market cap (£162mm) that is simply not on many peoples’ radar screens. The fact that they have just effectively revalued up about 12% of their portfolio at an average 20% ish premium and the share price is unchanged to a tad lower may suggest that there is some overhang of stock from somewhere or another. This can often be the case when there is a tight bid/offer at a lower than expected price.

Not to mention the rent uplifts etc. Or that the dividend has been increased to 6pps and is fully covered. These are not EPRA earnings, and so, with the fact that the accounts run for only 8 months, certain assumptions need to be made. Nevertheless, it seems as though future dividends are likely to be covered by EPRA earnings, which the market ought to take some comfort from.

Could I be missing something like a market fear of some bad asset within its portfolio? Do I really care? They have 92 assets so it is unlikely that there is any worrying concentration other than everything being roughly industrial.

[chucko1] 27/9/2018 10:14

I must say I am surprised that there has not been a positive market reaction to what is a clear demonstration again of the competence of this management. It is reasonable to suppose that further parts of their portfolio are liable for a valuation uplift (either by market sale or reappraisal at some stage).

Like the previous two posters, I am buying more and happy at this price.

[cheshire man] 27/9/2018 08:13

Same here nimbo1 :-)

[nimbo1] 27/9/2018 08:06

Should be trading 15 percent higher. Don’t mind though as for me this is just about income so happy to keep buying more over time.

[spectoacc] 27/9/2018 07:58

Agreed; and fair point re rent reviews, +7.5% on last one isn't to be sniffed at.

[belgraviaboy] 27/9/2018 07:56

SpectoAcc

You are correct and I should rephrase:

The latest in a number of deals has been announced at a significant premium to NAV, including:

Stukely Meadows 16%
Connaught Business Centre 36%
Quantum Park 33%
Warwich House 12%

Combined with the recent progress made with lettings and rent reviews things seem to be heading in a promising direction...

Happy to hold.

[spectoacc] 27/9/2018 07:33

A deal anyway ;) All good stuff - WHR continuing to manage well, & brought gearing down below 40%:

"Disposals

Warehouse REIT, the AIM listed specialist warehouse investor, announces that it has completed the sale of a 30,000 sq ft multi-let industrial estate at Stukeley Meadows, in Huntingdon, for GBP3.25 million, reflecting a net initial yield of 5.4% and a 16% premium to the March 2018 book value. In addition, as announced on 19 September, it has completed the sale of Warwick House, in Solihull, for GBP2.9 million, reflecting a 12% premium to the March 2018 book value.

In the short term, the sale proceeds will be utilised to reduce the RCF element of the Company's bank facility prior to any redeployment. Subsequent to the recent property disposals, the LTV, based on the 31 March 2018 valuation, has fallen to 38%.
"

[belgraviaboy] 27/9/2018 07:32

Deals being done at significant premiums to March 2018 valuations...

[sleepy] 19/9/2018 15:22

Thanks maiken

[maiken] 19/9/2018 15:05

I 've just got back from AGM.The word was Hansteen fell through because Hansteen put up the asking price midway through negotiations.of course there are always 2 sides to every story...

[sleepy] 19/9/2018 12:41

Anyone go to AGM?

Anyone know why Hansteen deal didn’t happen?

[chucko1] 19/9/2018 12:12

A 29% premium on 7.5% of the net NAV of WHR is worth 2p on the share price in my books. [£15.75/1.29 / £162.7 = 0.07504]. Maybe more if you then think positively about other assets in the portfolio.

[nimbo1] 19/9/2018 11:16

I've got a large round number here now, same as in DGOC - blended 7% yield to keep the wolf from the door :)

[cheshire man] 19/9/2018 11:03

My reason for holding also nimbo1 :-)

[nimbo1] 19/9/2018 10:49

i bought a few more - over 6 percent and growing divi. ok for me for some income.

[cheshire man] 19/9/2018 08:25

19 Sep 18 Peel Hunt Buy 98.00 120.00 - Reiterates

[spectoacc] 19/9/2018 08:13

Thought this morning's RNS read very well, tho would have liked something on abortive acquisition costs.

"The Company is therefore pleased to announce that it has disposed of three properties during the period for a total consideration of GBP15.75 million. The disposals reflect a blended net initial yield of 5.3% and a combined 29% premium to March 2018 book values whilst delivering a combined ungeared IRR in excess of 50%"

[maiken] 06/9/2018 14:26

it hasn't dented my confidence.They say they simply walked away because they thought the price was too high.If correct,that's fine by me.

they still have loads of skin in the game and the other deals they've done have resulted [in my opinion]in a portfolio attractively positioned with good upside.

The shares are ex-div 1.5p today and there is also bound to be a small backlog of sellers from the last month who are released today.

[makinbuks] 06/9/2018 13:59

The shares may drift because this has dented confidence in the teams ability to make deals. Not terribly well handled

[belgraviaboy] 06/9/2018 08:19

Bought this morning - looks well set

[nimbo1] 06/9/2018 08:10

I’m glad whr wouldn’t overpay

[igoe104] 06/9/2018 07:40

Why Drift Skyship, with the size of the divi for early 2019 and the potential of the market WHR operate in, they should start moving upwards.

[spectoacc] 06/9/2018 07:32

Hooray! As predicted - though they're claiming it's "unable to agree terms" rather than unable to raise the money at a reasonable level. @maiken - seems you were right about it leaking early, early enough for terms not even to have been agreed.

@Sky - I see no reason for the share price to drift.

[skyship] 06/9/2018 07:28

Talks off....quote back....sp drift likely

[maiken] 05/9/2018 16:33

I believe WHR had to make an announcement much earlier than they wanted due to a leak that discussions had started.That meant an awful lot of due diligence and negotiation with the vendor had to be worked through in the weeks post suspension of WHR.of course it still might be that your foreboding is correct Skyship...