Investment Trust Dividends

Warehouse REIT

Warehouse REIT plc

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.”  

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