REG - M7 Regional E-Ware. - 1st Quarter Results

FTI ConsultingAnnouncement

27/04/2022 08:15

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RNS Number : 4409J  M7 Regional E-Warehouse REIT PLC  27 April 2022

M7 Regional E-Warehouse REIT Plc

("M7 Regional E-Warehouse REIT" or the "Company")

 

27 April 2022

 

RENT COLLECTION, DIVIDEND DECLARATION, NAV AND BUSINESS UPDATE

The Board of Directors of M7 Regional E-Warehouse REIT (ticker: REW), provides
a trading and business update and declares an interim dividend for the period
from 21 December 2021 (date of admission to International Property Securities
Exchange, or 'IPSX') and ended 31 March 2022.

 

Financial and operational highlights for the period ended 31 March 2022

                                                31 March 2022
 Net Asset Value (unaudited)                    £41.71 million
 Net Asset Value per share (unaudited)          109.31 p
 Share price                                    100 p
 Operating profit (1)                           £2.03 million
 Profit before tax (1)                          £4.29 million
 EPRA EPS (2)                                   2.80 p
 Dividend cover based on EPRA EPS               130.32%
 Adjusted EPS (2)                               2.89 p
 Dividend cover based on Adjusted EPS (2)       138.68%
 Inaugural dividend recommendation (per share)  2.15 p

1 Presented for the period from the date of Admission and ended on 31 March
2022.

(2) Considered to be an Alternative Performance Measure.

 

•      Net Asset Value ("NAV") increased 11.5% to £41.71 million
(Admission: £37.42 million) or 109.31p on a per share basis (Admission: 98p
(net of Admission costs of 2p per share), driven by portfolio asset management
and investment led yield compression for the retail warehousing sector

•      Increase in portfolio valuation of 2.85% to £113.85 million as
at 31 March 2022, an uplift of £3.15 million compared to the property value
at the date of Admission. The valuation reflects a net initial yield of 7.34%(
3).

•      EPRA Earnings per share ("EPS") of 2.80 pence per share, with
Adjusted PES of 2.89p, reflecting 130.32% and 138.68% cash dividend cover for
the period, respectively.

•      Senior loan facility of £54.34 million and an unsecured loan
note balance of £19.70 million, totalling £74.04 million, reflecting a loan
to value ratio of 65.04%.

•      Rent collection remains strong with 98% of rents received in
respect of the December 2021 and March 2022 rent quarters as at 20 April 2022.

•      £2.41 million of rent recognised during the period in line with
passing rent.

•      As at 31 March 2022, there were 54 tenants and the weighted
average unexpired lease term is 5.25 years to breaks.

•      Occupancy across the portfolio was 98.8% at 31 March 2022.

( 3)( Including purchaser's costs of 6.65%. )

( )

( )

( )

Dividend

The Board declares today an interim dividend of 2.15 pence per share for the
period 21 December 2021 to 31 March 2022, the first dividend since Admission.
On a pro-rata basis, the dividend is in line with the annual 8 pence, or 8%,
target dividend, as stated in the Company's Admission document. The dividend,
which will be a Property Income Distribution, will be paid on or around 27 May
2022. The ex-dividend date will be 5 May 2022 and the record date will be 6
May 2022.

 

In addition, and in accordance with Sections 836 and 839 of the Companies Act
2006, Unaudited Initial Accounts of the Company covering the period from the
date of incorporation of 11 October 2021 to 26 April 2022 have been prepared
to support the payment of an interim dividend to the Ordinary shareholders of
the Company on or around 27 May 2022.

 

The Unaudited Initial Accounts of the Company, which are not statutory
financial statements, will be filed with Companies House and are also
available upon request to the Company Secretary.

 

Debt Covenant

The financial covenants which apply to the Group's external senior debt are as
follows:

•     Loan to value not to exceed 70%

•     Actual and Projected Interest Cover Ratio is at least 225%

 

In addition, the loan to value of the unsecured loan note balance must not
exceed 85%.

 

There continues to be significant headroom in the debt covenants. The senior
debt loan to value is 49.09% (default level is greater than 70%) and the
interest cover ratio is 413.30% (default level is less than 225%). The Group
has therefore complied with the above covenants in the latest interest payment
date.

 

James Max, Non-Executive Chairman of M7 Regional Warehouse REIT plc,
commented:

"Having successfully completed our listing on IPSX in December this trading
update for a slightly extended period to the end of the first quarter 2022,
points to a very positive start for the M7 Regional E-Warehouse REIT as a
public company.  Portfolio valuation and, in turn, NAV have both increased
driven by our own asset management initiatives as well as yield compression
reflecting continued recognition amongst investors of the long term prospects
for the asset class.  Furthermore, with rent collection remaining strong and
a positive outlook for rental growth in the portfolio, we have declared a
first dividend that is in line with the level set out at the time of our
Admission and, at 8%, offers investors an attractive yield from an asset class
underpinned by strong fundamentals."

ENQUIRIES

 M7 Regional E-Warehouse REIT Plc
 James Max - Chairman                              via FTI Consulting below
 M7 Real Estate Ltd                                +44 (0) 20 3657 5500

 Richard Croft

 WH Ireland (Lead Advisor & Corporate Broker)      +44 (0) 20 7398 1145
 Chris Hardie

 FTI Consulting (Communications Adviser)           +44 (0) 20 3727 1000
 Richard Sunderland                                M7regionale-warehousereit@FTIConsulting.com

 Claire Turvey

 Alter Domus (UK) Limited                          +44 (0) 207 645 4800

 (Company Secretary)

 

 

The Company's ISIN is GB00BLN7H037.

Further information on M7 Regional E-Warehouse REIT plc is available at
www.rewreit.co.uk(1).

 

NOTES

M7 Regional E-Warehouse REIT Plc is a property investment company, listed on
the International Property Securities Exchange offering shareholders with a
sustainable level of income together with the potential for income and capital
growth by investing in diversified portfolio of enhanced warehouse
(e-warehouse) properties across the United Kingdom.

 

The Company's asset manager is M7 Real Estate Limited ("M7"), a leading
specialist in the pan-European, regional, multi-tenanted real estate market.
M7 has over 220 employees in 15 countries across Europe. The team manages over
570 properties with a value of circa €4.9 billion.

1   Neither the content of the Company's website, nor the content on any
website accessible from hyperlinks on its website or any other website, is
incorporated into, or forms part of, this announcement nor, unless previously
published on a Regulatory Information Service, should any such content be
relied upon in reaching a decision as to whether or not to acquire, continue
to hold, or dispose of, securities in the Company.

 

 

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