Warehouse REIT PLC Pipeline Update (8080R)
March 05 2019 - 1:00AM
UK Regulatory
TIDMWHR
RNS Number : 8080R
Warehouse REIT PLC
05 March 2019
5 March 2019
Warehouse REIT plc
(the "Company" or "Warehouse REIT")
Pipeline Update
Warehouse REIT, the AIM-listed company that invests in and
manages urban and 'last-mile' industrial warehouse assets in
strategic locations in the UK, announces a pipeline update.
The Company was admitted to AIM in September 2017 (the "IPO"),
raising gross investment proceeds of GBP150.0 million. It acquired
a seed portfolio of 27 assets valued at GBP108.9 million on IPO.
Since IPO, the Company has acquired a further GBP186.8 million of
assets, with the largest transaction completing in March 2018 for a
consideration of GBP116.0 million. The Company financed this
activity by investing the remaining equity raised at IPO ahead of
schedule and by enlarging its debt facility with HSBC. During this
period, the Company increased its target dividend for the year
ending 31 March 2019 to 6.0 pence per share from 5.5 pence per
share as set out in the prospectus issued at IPO. At 30 September
2018, the Company's portfolio was valued at GBP284.3 million,
following GBP19.0 million of disposals in the period achieved at a
27 per cent premium to book values. The portfolio valuation
reflected an increase of 6.5 per cent on the aggregate purchase
price and a 1.6 per cent like-for-like increase on the 31 March
2018 valuation. Since 1 October 2018, the Company has completed two
further acquisitions for GBP13.9 million in aggregate.
The Company continues to see opportunities to purchase assets at
prices below replacement value, with the potential to secure robust
and growing income streams which can be distributed to shareholders
through the Company's quarterly dividend programme. Occupational
take-up remains resilient with the Company continuing to experience
demand for vacant space (as referenced in the Asset Management
Update RNS announced on 5 February 2019).
Tilstone Partners Limited ("the Investment Advisor"), on behalf
of the Company, continually reviews the market for potential
investment opportunities, typically involving a potential pipeline
of GBP1 billion over a 12 month period, with in excess of GBP2.5
billion of assets screened during 2018. Location remains a key
criteria when reviewing the pipeline as the Company continues to
focus on economically-active geographical areas that are expected
to respond (in particular, in respect of rental growth) to active
asset management initiatives.
The Investment Advisor has recently witnessed an increase in the
range of acquisition opportunities and believes the Company is
well-placed to capitalise upon this having identified a number of
assets which meet the Company's investment policy (including
off-market assets identified through the Investment Advisor's
network) giving rise to a near-term pipeline of capital deployment
opportunities exceeding GBP100 million.
The Company believes that the acquisition of assets identified
in the pipeline would further diversify the Company's income and be
accretive to shareholder returns, in addition to continuing to
strengthen the portfolio's sustainability, quality and prospects
for growth.
With only limited resources available to complete acquisitions,
the Company is contemplating an equity fundraising to capitalise on
this pipeline of near term opportunities, which it will seek to
deploy, together with debt finance where appropriate, in line with
its investment strategy. Any such fundraising is expected to follow
the publication of a prospectus and further details will follow in
due course.
This announcement contains inside information for the purposes
of Article 7 of EU Regulation 596/2014.
Enquiries:
Warehouse REIT plc (via FTI Consulting)
+44 (0) 1244 470
Tilstone Partners Limited 090
Andrew Bird, Peter Greenslade, Paul Makin
+44 (0) 20 7418
Peel Hunt (Nominated Adviser and Broker) 8900
Capel Irwin, Carl Gough, Harry Nicholas
FTI Consulting (Financial PR & IR Adviser +44 (0) 20 3727
to the Company) 1000
Dido Laurimore, Ellie Sweeney, Richard Gotla
Notes to editors:
Warehouse REIT is an AIM listed UK Real Estate Investment Trust
that invests in and manages urban and 'last-mile' industrial
warehouse assets in strategic locations in the UK.
Occupier demand for urban warehouse space is increasing as the
structural growth in e-commerce has driven the rise in internet
shopping and investment by retailers in the "last mile" delivery
sector. The urban warehouse sector offers one of the highest
initial yields of all UK property sectors.
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. The Investment Manager is
currently G10 Capital Limited.
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contact rns@lseg.com or visit www.rns.com.
END
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