Warehouse REIT plc

Warehouse REIT completes two disposals totalling £13.4 million, 3.7% ahead of book value

Warehouse REIT, the multi-let industrial warehouse investor, announces the disposal of two assets in separate transactions for a total consideration of £13.4 million. The combined price is 3.7% ahead of the September 2023 book value and reflects an average net initial yield of 5.3%.

The sales comprise:

·      Warrington South Industrial Estate, a 106,000 sq ft single-let asset acquired in 2019, where we delivered a ten-year lease renewal in 2020; sold for a total consideration £11.6 million; and

·      Pellon Lane, a 20,000 sq ft multi-let asset in Halifax acquired in 2017, where we have successfully secured new lettings or renewals on nearly all the available space since acquisition; sold for £1.8 million. 

These transactions bring total sales since 1 April 2023 to £53.0 million, demonstrating good progress against our commitment to continued capital recycling. Proceeds from the sales will be used to pay down debt, supporting future earnings. 

Simon Hope, Warehouse REIT commented: “Strengthening our balance sheet and earnings position by releasing capital from assets which are low yielding or where we have successfully executed our business plan is a key priority for us. As these disposals show, we continue to evaluate all opportunities to do that. 

“While the investment market remains subdued, we have sold into pockets of demand, above book value, enabling us to crystallise value for shareholders and increase the portfolio weighting to multi-let assets where we see the most attractive opportunities.”