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RNS Number : 3569A Warehouse REIT PLC 22 January 2024
22 January 2024
Warehouse REIT plc
(the "Company" or "Warehouse REIT", together with its subsidiaries, the
"Group")
Third quarter leasing update
Continued leasing momentum with 0.9m sq ft of activity, 22.1% ahead of
previous rents
Warehouse REIT, the multi-let industrial warehouse investor, is pleased to
report a strong quarter of leasing activity for the three months to 31
December 2023. This reflects the resilience of the UK multi-let warehouse
sector as well as our active asset management focused on capturing reversion
across our 8 million sq ft portfolio, which is a key priority for the year.
During the period, the Company completed 0.9m sq ft of leasing activity,
securing £5.2 million of contracted rent, on average 22.1% ahead of previous
contracted rent, comprising:
· 15 new lettings, 33.2% ahead of previous contracted rent, 8.4%
ahead of March ERV
· 16 renewals, 38.2% ahead of previous contracted rent, 9.8% ahead
of March ERV
· 6 rent reviews, 13.7% ahead of previous contracted rent, 1.4%
ahead of March ERV
Notable deals included:
· A new lease to a leading UK intralogistics business at Bradwell
Abbey in Milton Keynes generating £97,000, 10.5% ahead of March ERV;
· A renewal to a thermoplastics business at Kingsland Grange,
Warrington at a new rent of £498,000, 42.3% ahead of previous contracted
rent;
· A renewal to a tile business at Matrix Park, Chorley at a rent of
£320,500, 22.7% ahead of previous contracted rent;
· A rent review to a precision manufacturer of machines for the oil and
gas industry, at a new rent of £55,000, 57.1% ahead of previous contracted
rent.
Nine months performance
This brings total leasing activity for the nine months to 31 December 2023 to
1.4 million sq ft, on average 26.9% ahead of previous contracted rent. It
demonstrates good progress against our objectives, with £1.2 million of
reversion captured, equivalent to 0.3 pence per share on an annualised
basis. Total rent attributable to these transactions is £8.5 million and
the like-for-like contracted rental growth for the nine month period is 3.7%,
significantly ahead of a healthy half year rate of 1.7%.
Simon Hope, Co-Managing Director of Tilstone Partners, Investment Advisor to
Warehouse REIT commented: "This pace of activity demonstrates that the market
for affordable, well-located, multi-let industrial space is holding up well.
Deals have been agreed well ahead of prior rents and the portfolio is
successfully appealing to more higher value occupiers from a wide variety of
sectors. The Warehouse REIT portfolio was 11.7% reversionary at half year
and this good performance demonstrates great progress capturing that upside."
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 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 delivering 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).
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