REG - Warehouse REIT PLC - Disposals totalling £9.5 million achieved

Warehouse ReitAnnouncement

10/10/2023 07:00

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RNS Number : 4522P  Warehouse REIT PLC  10 October 2023

10 October 2023

 

Warehouse REIT plc

(the "Company" or "Warehouse REIT", together with its subsidiaries, the
"Group")

 

Disposals totalling £9.5 million achieved, 30% ahead of book value

Warehouse REIT is pleased to announce that it has completed the sale of two
assets totalling £9.5 million, together 30% ahead of the 31 March 2023 book
value, reflecting an average net initial yield on passing rents of 6%.

These transactions bring total sales since 1 April 2023 to £39.6 million, and
£94.3 million over the last 12 months, demonstrating good progress against
the Company's commitment to continued capital recycling. Proceeds from the
sales will be used to pay down debt, supporting earnings in the current
financial year.

The disposals comprise warehouses in Carisbrooke on the Isle of Wight, for
£3.1 million, and on Newport Road, Cardiff for £6.4 million. These assets
have been in the portfolio for six and three years respectively. In both cases
significant asset management enhancements have been delivered and these assets
are now considered non-core.

Following these successful transactions, as at 30 September 2023, the Company
has net debt of £276.0 million and an LTV of c. 35% based on the 31 March
2023 valuation.

Simon Hope, Co-Managing Director of Tilstone, Investment Advisor to Warehouse
REIT commented: "These sales demonstrate good progress on the plan Warehouse
REIT set out in June. Since then, its successful capital recycling has
strengthened the Company's balance sheet and earnings position, whilst
refining the portfolio and allowing the Company to focus on assets with the
strongest opportunities.

"The premium to book value achieved across these sales provides further
evidence that liquidity for well-let warehouse assets remains and illustrates
Warehouse REIT's ability to create and crystallise value for shareholders
through asset management despite the difficult macro-economic conditions."

 

Enquiries

 Warehouse REIT plc                                             via FTI Consulting

 Tilstone Partners Limited                                      +44 (0) 1244 470 090

 Simon Hope, Peter Greenslade, Jo Waddingham

 G10 Capital Limited (part of the IQEQ Group), AIFM              +44 (0) 20 7397 5450

 Maria Baldwin

 FTI Consulting (Financial PR & IR Adviser to the Company)

 Dido Laurimore, Richard Gotla, Oliver Parsons                  +44 (0) 20 3727 1000

 

Further information on Warehouse REIT is available on its website:
http://www.warehousereit.co.uk (http://www.warehousereit.co.uk)

 

Notes

Warehouse REIT is UK Real Estate Investment Trust, listed on the main market
of the London Stock Exchange that invests in UK warehouses, focused on
multi-let assets in industrial hubs across the UK.

 

We provide a range of warehouse accommodation in key locations which meets the
needs of a broad range of occupiers.  Our focus on multi-let assets means we
provide occupiers with greater flexibility so we can continue to match their
requirements as their businesses evolve, encouraging them to stay with us for
longer.

 

We invest in our business by selectively acquiring assets with potential and
by developing opportunities we have created. Through pro-active asset
management we unlock the value inherent in our portfolio, helping to capture
rising rents and driving an increase in capital values to deliver strong
returns for our investors over the long term.

Sustainability is embedded throughout our business, helping us meet the
expectations of our stakeholders today and futureproofing our business for
tomorrow.

 

The Company is an alternative investment fund ("AIF") for the purposes of the
AIFM Directive and as such is required to have an investment manager who is
duly authorised to undertake the role of an alternative investment fund
manager ("AIFM"). The AIFM and the Investment Manager is currently G10 Capital
Limited (Part of the IQEQ Group).

 

Forward-looking Statements

Certain information contained in these half-year results may constitute
forward looking information. This information relates to future events or
occurrences or the Company's future performance. All information other than
information of historical fact is forward looking information. The use of any
of the words "anticipate", "plan", "continue", "estimate", "expect", "may",
"will", "project", "should", "believe", "predict" and "potential" and similar
expressions are intended to identify forward looking information. This
information involves known and unknown risks, uncertainties and other factors
that may cause actual results or events to differ materially from those
anticipated in such forward-looking information. No assurance can be given
that this information will prove to be correct and such forward looking
information included in this announcement should not be relied upon.
Forward-looking information speaks only as of the date of this announcement.

 

The forward-looking information included in this announcement is expressly
qualified by this cautionary statement and is made as of the date of this
announcement. The Company and its Group do not undertake any obligation to
publicly update or revise any forward-looking information except as required
by applicable securities laws.

 

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