Warehouse Reit Share Discussion Threads

[spectoacc] 15/4/2019 08:49

Seem like quality assets - they need to get invested relatively quickly to avoid cash drag.

[igoe104] 15/4/2019 07:55

5 April 2019
Warehouse REIT plc
(the 'Company' or 'Warehouse REIT')
Warehouse REIT agrees Northampton and Aberdeen logistics acquisitions for GBP37 million
-Transactions follow successful fund raise which provides over GBP120 million of investment firepower-
Warehouse REIT, the AIM-listed specialist warehouse investor, has exchanged contracts to acquire a multi-unit estate in Northampton let to John Lewis and a multi-let industrial estate in Aberdeen. The assets were purchased in two separate transactions for a total consideration of GBP37 million, reflecting a blended net initial yield of 6.6%.
In Northampton, the Company has acquired the freehold of two John Lewis distribution units, totalling 336,000 sq ft. John Lewis, which has a 5A1 covenant rating, the highest available and which has been onsite for over 25 years, has signed new 5 year leases, with a headline rent of GBP1,836,395 per annum across both units.
The units are situated within the 'Golden Triangle' on the Brackmills Industrial Estate, one of the UK's premier distribution locations providing excellent access to the M1 motorway. Other local occupiers include DHL, Yodel, Great Bear and ASDA. With 85% of the UK's population within a 4.5 hour HGV time of Northampton, the warehouses are extremely well positioned to support John Lewis' growing ecommerce operations, where its online sales are forecast to rise to over 50% by 2020.
In its second transaction, the Company has acquired the long leasehold 125,000 sq ft Murcar multi-let industrial estate in Aberdeen. The estate is arranged across four separate terraces and is 100% let to a range of occupiers with a weighted average unexpired lease term of 8 years (5.2 years to break), it generates a total net passing rent of GBP776,030 per annum.
The 8.5 acre site is situated within the Bridge of Don Industrial estate, a major industrial and business area, and benefits from both its prominent position fronting the A90 dual carriageway and proximity to Aberdeen City Centre, which is four miles away.
Andrew Bird of Tilstone commented: "Following the successful fund raise providing the REIT with GBP120 million of capital to deploy, it is pleasing to deliver these high quality acquisitions, including another from our identified near term pipeline at the time of the equity raise, as we continue to demonstrate that we have the team in place to originate and acquire a range of favorably yielding opportunities across the UK. In Northampton, the warehouses are operational critical to John Lewis in what is still an undersupplied part of the UK for mid box warehouses, whilst the Murcar industrial estate will deliver attractive day one income at the same time as presenting a number of value-enhancing asset management initiatives to both improve the rental tone and deliver capital growth."
-ENDS-

[petewy] 12/4/2019 14:39

Agreed Chuck

[spectoacc] 04/4/2019 14:21

They'll lose a bit of NAV on purchases I'm guessing - stamp duty, mainly.

[chucko1] 04/4/2019 12:47

Nimbo1, agreed. Additionally, is somewhat immune to a variety of Brexit outcomes so has some diversification qualities.

A good bedrock stock, this one.

[nimbo1] 04/4/2019 12:19

I wonder what the next nav will be - should be 5 percent higher than the last I reckon with asset management and a some yield compression

[spectoacc] 04/4/2019 10:11

Agreed - pretty much all in for some, at close to highs, and could have bought (marginally) cheaper in the market rather than the placing. Feels like WHR is in a sweet spot.

[nimbo1] 04/4/2019 09:51

Very nice to see such strong director buying in the placing.

[skinny] 01/4/2019 09:30

Warehouse REIT agrees £4.2 million logistics acquisition in Wakefield

Transaction follows successful fund raise which provides over £120 million of investment firepower

Warehouse REIT, the AIM-listed specialist warehouse investor, has exchanged contracts to acquire a 53,000 sq ft single-let industrial unit in Wakefield for £4.2 million, reflecting a net initial yield of 6.3%. It follows the announcement on Friday 29 March 2019 that the Company had raised £76.48 million of equity, which along with leverage, provides it with over £120 million of investment firepower to deploy into a near term pipeline of opportunities, as it looks to benefit from the favorable investment backdrop for the single-let and multi-let warehouse sector.

more.....

[jgh03] 01/4/2019 09:15

Fair point. And if they raised less than they could use it will mean that they have to prioritise which may be no bad thing.

[nimbo1] 29/3/2019 19:22

I was surprised they got that much - they did it at almost 0 discount to price! That’s a much better effort than big box normally do and as a shareholder the price and divi per share is the only thing I care about. Not 100 or 75 mil raised...

[jgh03] 29/3/2019 09:17

Successful ? They were hoping to raise £100m and actually raised £76.5m ...

[jon123] 29/3/2019 08:03

i took up my entitlement and added a few extra one's but its only small change

[nimbo1] 29/3/2019 08:00

Yes good news. I didn’t buy any more as already have a 10 percent position here.

[spectoacc] 29/3/2019 07:56

Slightly surprised it's been so successful! 103p, co can move onwards & upwards.

[ronin92] 19/3/2019 17:11

During that dip, my take was that it was at least partly driven by the prospect of higher interest rates and tightening credit as a result of a hawkish Fed. Aren't many REITs seen as bond proxy-like and therefore are believed to inversely correlate with interest rates? Some propcos are highly geared too.

With the Fed turning dovish and the prospect of low interest rates out as far as the eye can see, perhaps things could look rosy for WHR price for a while yet?

[alter ego] 19/3/2019 16:05

As stated above, this is is from HL's Q&A

"Can I take up the Offer in a different Hargreaves Lansdown Account?

You must take up the Offer within the Account that you hold your existing Warehouse REIT plc Shares. The only exception to this is that Entitlements issued within an ISA may be taken up outside of the ISA either within a Vantage Fund & Share Account or in your own name in certificated form. Please note that there is a £25 charge for each certificate produced."

[apollocreed1] 19/3/2019 14:27

@niggle @ronin92- Hargreaves Lansdown allow ISA holders to take up the rights in a standard share dealing account, even if the rights were awarded due to a holding in the ISA. It might be worth asking other brokers if they can offer the same service.

[skyship] 17/3/2019 16:25

Ramellous - you're right - looks as though the December sell-off was pretty universal; just hit propcos more than other sectors perhaps:


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[ramellous] 17/3/2019 15:34

Skyship, I think they just followed the general marketsdown in Dec. The ftse100 and the Dow both dipped to their lows at end of dec and have recovered somewhat. The charts for both indexes correlate similarly with a number of reits.

[skyship] 17/3/2019 14:20

REITs don't have redemptions; they are closed end funds. The property unit trusts are dinosaurs whose time has come, certainly ones for whom the bell tolls; but the listed REITs swing in the Market according to the weight of buys and sells.

Something happened in December; some fund or other pressed the exit button and got it hopelessly wrong. I would just love to know who...

[sleepy] 17/3/2019 12:16

There has been comment that open ended property funds which mainly own physical property but also have cash and, in at least some cases, REIT shares have had net redemptions recently

[skyship] 17/3/2019 11:40

Asked this question over on the RGL thread:

Does anyone have any idea why so many of the secondary/tertiary propcos sold off so severely last December? Provided great buying opportunities; but which fund was so strapped for cash it was having to liquidate at totally stupid levels:


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