11th Jun 2025 11:55
(Alliance News) - Warehouse REIT PLC on Wednesday reported growth in profit during its most recent financial year, ahead of the firm's planned takeover by Blackstone Inc.
The London-based investor in real estate, with a focus on UK industrial warehouses, said pretax profit rose 22% to GBP41.7 million in the year that ended March 31, from GBP34.3 million the year before.
Gross property income grew 3.0% to GBP48.6 million from GBP47.2 million, while property operating expenses increased 28% to GBP5.5 million from GBP4.3 million.
Warehouse REIT recorded GBP30.2 million in fair value gains on investment properties, against GBP15.1 million a year prior.
EPRA net tangible assets per share were 2.9% higher at 128.0 pence from 124.4p, delivering a total return of 8.0% against 6.7% the year before.
"Throughout the financial year the board has focused on the continued execution of our strategic plan - the key objectives being to reduce debt and move towards dividend cover. In a day-to-day sense, our occupational markets have continued to be resilient, and well-located, quality space has continued to be in short supply. We have driven rental growth through our active asset management, and our portfolio continues to provide attractive opportunities to capture reversion over time," said Chair Neil Kirton said.
Warehouse REIT last week said it has agreed the terms of an acquisition by Blackstone that values it at GBP470 million. The acquisition will be put to Warehouse shareholders at a court and general meeting.
Under the terms of the acquisition, Wapping Bidco Ltd, a newly-formed company indirectly owned by investment funds advised by affiliates of Blackstone, will pay 109.00 pence in cash for each share.
Shareholders will receive a total of 110.60p per share, including the third interim dividend of 1.6p per share.
Chair Kirton continued: "Despite the company's strong operational performance and the board's continued conviction that we are invested in a very attractive asset class, given our size, the low liquidity of our shares, and with other, risk-free asset classes offering attractive returns, we have traded at a significant discount to net asset value for some time. It is in that context that the board has evaluated an offer for the company."
Warehouse REIT declared a total dividend of 6.4p per share, unchanged from a year prior.
Shares in Warehouse REIT were up 0.1% at 106.88 pence each in London on Wednesday morning. The stock is up 33% over the past year.
By Emily Parsons, Alliance News reporter
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