Warehouse Reit Share Discussion Threads

[nimbo1] 24/10/2018 09:23

Riverman77 I used to work in an institutional property fund. I can tell you there is a discount price wise for a small lot size like this and not as many quality buyers for this type of asset. Bundle a load together and sell them to an institution and you'd get a higher price and a lower yield. They purchased it for 7.3 but as soon as they own it it will be valued at 6.5%. So there will be a small capital value uplift to boot.

[skinny] 24/10/2018 08:29

24 Oct 2018 Peel Hunt (again) Buy 94.00 120.00 Reiterates

[riverman77] 24/10/2018 07:59

I do also wonder how they are getting a 7.3% yield from a strong tenant, especially since both Hansteen and Mucklow have stated that they are unlikely to make further acquisitions as current valuations in this space can't be justified.

[killing_time] 24/10/2018 07:43

Yep, a good yield off a strong company, nice work WHR.

[spectoacc] 24/10/2018 07:23

Hats off to them, read several others this morning including a 4.5% yield, yet WHR somehow getting 7.3% off a tenant as good as Amazon.

@Jonwig - hopefully that was the PR's fault.. ;)

[jonwig] 24/10/2018 07:16

Don't invest in any company which doesn't know its role from its roll.

[skinny] 24/10/2018 07:06

WAREHOUSE REIT ACQUIRES AMAZON-LET LAST MILE DISTRIBUTION WAREHOUSE IN STRATEGIC NORTH WEST LOCATION

Warehouse REIT, the AIM-listed specialist warehouse investor, announces that it has exchanged contracts for the acquisition of a strategically located warehouse in Widnes, Cheshire for £2.765 million, reflecting a net initial yield of 7.3%. The asset is fully let to Amazon UK Services Ltd on a newly agreed five-year lease to serve the online retailer's last mile distribution requirements across the surrounding North West region.

Amazon is now the second largest tenant on the Company's rent role.

The modern warehouse facility offers 48,932 sq ft of high specification newly-refurbished space which includes two storey office accommodation and an electrically operated loading bay, all set within a self-contained 2.5 acre site. The asset is currently generating a comparatively discounted rental income of £216,432 per annum (£4.42 per sq ft), offering attractive growth prospects, while its low capital value of £56 per sq ft is less than the cost of replacement.

The warehouse is located in the heart of the North West in a prominent location on the established Halebank Industrial Estate in Widnes, Cheshire, benefitting from excellent motorway access. Widnes is approximately 14 minutes' drive time from Liverpool Airport, 30 minutes from both the Port of Liverpool and Manchester Airport, and only 20 minutes from the M62/M6 interchange, offering good infrastructure provision for a logistics company. The asset's tenant is leveraging its strong location by using the facility to service the distribution of small items being offered for sale by "Amazon Sellers".

more.....

[nimbo1] 17/10/2018 15:51

just got some too - interest rates in this country are going no where. Yield is growing here.

[ronin92] 12/10/2018 12:42

Topped up @92.4p. Unreasonably low price IMO.

[wirralowl] 11/10/2018 16:02

Also added today at 92.4p, 6.5% divvy and disc to NAV of c.10%.

[skinny] 11/10/2018 10:16

Just added.

[badtime] 11/10/2018 09:34

I did say only a nibble ...we'll see

[chucko1] 10/10/2018 23:59

Be careful - the big Dow drop, perhaps reflecting the fear of the result of QE ending, could affected everything.

[badtime] 10/10/2018 19:15

Hmm..might take a few at this level.

[jon123] 10/10/2018 17:45

life's tough n friends are few lol

[nimbo1] 10/10/2018 15:54

these stock markets are savage. buy uk income with a growing yield, trading below nav and you still get a bloody nose!

[ramellous] 10/10/2018 10:00

I see my buy showing as a sell lol..
I’m looking at maximising income now in prep for retirement in a couple of yrs. 5 to 7% would see me right. REITs are looking good value and seem to be stabilising. A useful addition to my portfolio.

[spectoacc] 10/10/2018 08:50

Good luck - discount to NAV, invested earlier than expected, divi target hit sooner, PP RNS'd yesterday. Brexit could still go wrong, or recession, but I'm a steady holder too.

[ramellous] 10/10/2018 08:19

I’m in this morning at 96.3 in sipp. Hopefully for long time.

[spectoacc] 09/10/2018 07:25

Fair point on volume. Also:

"Warehouse REIT, the AIM listed specialist warehouse investor, announces that it has secured planning permission for change of use on 16 acres of its land at the Queenslie Park industrial estate in Glasgow.

The proposed development will deliver up to 250,000 sq ft of employment-led space, comprising a combination of distribution/logistics, industrial, commercial, storage, retail and hospitality space. The variety of uses will appeal to a wide occupier base, driving capital investment and a significant number of new jobs to the estate, which benefits from its proximity to the adjacent M8 motorway which links the cities of Glasgow and Edinburgh. "

[chucko1] 08/10/2018 16:55

Generally, the REITs held up well today. No great volume today on WHR, so no idea what happened there!

[spectoacc] 08/10/2018 16:12

Some AT selling at 96p today, pretty weak (as is most stuff to be fair).

[chucko1] 27/9/2018 13:56

I agree with all your points. The WAULT would be an issue for some investors, although they are really making hay with their asset turnover for now.

40% debt is just about OK for me, but they do say that they are looking to reduce and recent activity will help them in that regard. Trouble occurs when you are in the region of 65% or so, but many have learned their lessons from 2006-8.

[belgraviaboy] 27/9/2018 13:31

I like WHR and have been buying.

On the downside for me is the WAULT at 4.1 years - which is lower than I would like. If there is an economic downturn, we will be relying on the imbalance of supply & demand in the warehouse market to keep the occupancy and rental levels high.

The positive flip side of this is the opportunity for near term value enhancing asset management activities - which is what we are seeing at the moment.

Debt was a little high, I am not keen on REIT debt being over 40% and the REIT is probably too small to appear on certain asset managers recommended lists. Also, anyone glancing at the historic yield will not immediately identify the income available. All of which may be holding it back a little at the moment.

Overall, happy to hold (and add) in a portfolio of REITs alongside SUPR, BBOX & SIR with much longer WAULTs (all trading at premiums) and more adventurous REITs such as RGL (trading at a discount).

With the current newsflow I can't see this remaining at a discount to NAV for long.