11th Feb 2025 11:06
(Alliance News) - Warehouse REIT PLC on Tuesday reported securing GBP3.5 million in rent for its third quarter, and an amended investment management contract to help "[rebuild] dividend cover".
The London-based investor in real estate, with a focus on UK industrial warehouses, said the three months ended December 31 was "another positive quarter of leasing activity".
Warehouse REIT said it completed 25 transactions in total, letting 363,300 square feet and securing GBP3.5 million in contracted rent. This represented a 32% increase from "previous contracted rent" and a 7.2% rise against the estimated rental value.
Of the transactions, four deals were rent reviews worth GBP2.3 million in contracted rent, up 43% on previous rents and 15% against ERV.
"These transactions bring total leasing activity for the first nine months of the financial year to 71 transactions, across 1.2 million [square feet], generating GBP9.0 million of rent," Warehouse REIT said. "On average, deals have been agreed 22.1% ahead of prior rent."
The company said it completed non-core asset sales worth GBP12.8 million in the quarter, which overall were 8.1% ahead of their book value in March.
Also on Tuesday, Warehouse REIT announced amendments to the fee calculation agreement with its investment advisor Tilstone Partners Ltd, effective from April 1.
The new arrangement will see the basis of the quarterly management fee move from net asset value to the lower of net asset value and market capitalisation, the trust said.
However there will be an adjustment period with the fee calculation subject to a floor of 70% of EPRA NAV, for the first financial year ending March 31, 2026.
The trust said it expects the new agreement to save GBP2.1 million per annum or GBP1.7 million under the transitional agreement. The former equates to an additional 0.5 pence in earnings per share.
Shares in the company were trading 2.3% higher at 82.18p each in London late on Tuesday morning.
Warehouse REIT Chair Neil Kirton commented: "The saving that this new arrangement will generate is an important milestone for the company in achieving its strategic objective of rebuilding dividend cover, which the board sees as an important step towards narrowing the discount at which its equity trades."
By Emma Curzon, Alliance News reporter
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