REG - Warehouse REIT PLC - Update on disposals and refinancing

Warehouse ReitAnnouncement

27/07/2023 07:15

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RNS Number : 3119H  Warehouse REIT PLC  27 July 2023

27 July 2023

 

Warehouse REIT plc

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

 

Update on disposals and refinancing

 

Further to its Full Year 2023 results on 6 June 2023, Warehouse REIT announces
an update on recent asset sales as well as the terms of its new debt
refinancing.

The £29.9 million of disposals which had exchanged at the time of the results
have all completed.  This includes Dales Manor Business Park in Cambridge
sold for £27 million reflecting a NIY of c.4.5%.  Sales were on average 17%
ahead of 31 March 2023 book value demonstrating the ongoing liquidity for this
asset class despite the higher interest rate environment.  Proceeds will be
used to pay down the Company's debt, supporting earnings in the current
financial year.

Following the signing of its debt refinancing on 2 June 2023, the Company has
now completed its conditions precedent and drawn down on these new funds.
The new £320 million facility replaces the Company's previous £320 million
debt facility and extends the tenure from January 2025 to June 2028.  It
comprises a £220 million term loan and a £100 million revolving credit
facility ("RCF") with a club of four lenders, HSBC, Bank of Ireland, NatWest
and Santander. The minimum interest cover is 1.5 times compared to 2.0 times
under the previous facility and the maximum LTV has been extended to 60% from
55%.  Both the term loan and the RCF attract a margin of 2.2% plus SONIA for
an LTV below 40% or 2.5% if above.  The Company has £230m of interest rate
caps in place of which £200m fixes SONIA at 1.5% and the remaining £30m
fixes SONIA at 1.75%.

Following receipt of the sales proceeds, the Groups' net debt is now c. £275
million.

Peter Greenslade, Finance Director, Tilstone Partners commented: "The
combination of recent sales and the Company's refinancing has significantly
strengthened the balance sheet and earnings position.  The improved covenants
on the new facility are a testament to the strength of our banking
relationships as well as the quality of the Warehouse REIT portfolio."

 

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, Ellie Perham-Marchant           +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 a FTSE 250 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 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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