TIDMWHR
RNS Number : 1347D
Warehouse REIT PLC
17 February 2020
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES
OF ARTICLE 7 OF THE MARKET ABUSE REGULATION ((EU) 596/2014)
THIS ANNOUNCEMENT IS NOT FOR RELEASE, PUBLICATION OR
DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN THE UNITED STATES,
AUSTRALIA, CANADA, JAPAN, NEW ZEALAND, THE REPUBLIC OF SOUTH AFRICA
OR ANY OTHER JURISDICTION WHERE TO DO SO MIGHT CONSTITUTE A
VIOLATION OF THE RELEVANT LAWS OR REGULATIONS OF SUCH
JURISDICTION
17 February 2020
Warehouse REIT plc
(the "Company" or "Warehouse REIT")
Pipeline Update and Potential Equity Raise
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 and a
potential equity raise.
Driven by structural demand from the rise in e-commerce,
occupational take-up remains robust. The Company has recently
completed a number of successful portfolio initiatives and
continues to extract strong operational performance from the
Company's portfolio. In the period from 1 October 2019 to 31
January 2020 Warehouse REIT has:
-- Completed 28 new lettings and 28 lease renewals across
209,000 sq ft of space, achieved at 5.5% ahead of 30 September 2019
ERVs and generating GBP1.2 million per annum of contracted rent,
reflecting the reversionary nature of the portfolio;
-- Completed or exchanged on the sale of 13 smaller non-core
assets for a combined price of GBP17.6 million at an average of
7.6% ahead of 30 September 2019 book values and 10.1% ahead of
cost, reflecting a blended 6.7% net initial yield; and
-- Increased total occupancy in the portfolio to 92.7% from
91.5% at 30 September 2019 (with effective vacancy only 2.9%
excluding units under refurbishment or under offer to let).
These portfolio initiatives follow the acquisition of the
29-acre Midpoint Estate in October 2019 for a purchase price of
GBP15.5 million, representing a net initial yield of 6.6%.
Furthermore, as announced on 24 January 2020, Warehouse REIT has
entered into a new five year GBP220 million debt facility to
replace the existing GBP210 million HSBC facility. The new facility
extends the term of the debt and reduces the margin by 14 basis
points from a blended 2.14% above LIBOR to 2.00% above LIBOR, and
reflects the positive impact that Warehouse REIT's increasing scale
has when accessing debt markets.
Following the successful deployment of the funds raised in April
2019 and its positive outlook on earnings, the Company announced a
third quarterly dividend for the financial year ending 31 March
2020 of 1.6 pence per ordinary share, representing a 6.7% increase
on the two interim dividends paid to date of 1.5 pence per ordinary
share each. As a result the dividend target for the year ending 31
March 2020 has been increased to 6.2 pence per share from 6.0 pence
per ordinary share.
Tilstone Partners Limited (the "Investment Adviser") continues
to see good 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.
The Investment Adviser currently has in advanced negotiations,
or has identified, a pipeline of investment opportunities with a
target investment yield in excess of 6% amounting to approximately
GBP352 million, of which approximately GBP72 million are in
exclusive or final negotiations or have solicitors instructed and
approximately a further GBP280 million are in detailed
negotiations.
The Company believes that the acquisition of assets identified
in this 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 limited capital resources available to complete
acquisitions, the Company is contemplating an equity fundraising to
benefit from 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
G10 Capital Limited (part of the Lawson Conner +44 (0) 20 3696
Group), AIFM 1302
Maria Glew, Gerhard Grueter
+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, yet supply remains constrained giving rise to rental
growth.
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.
The contents of this announcement do not constitute or form part
of an offer of or invitation to purchase or subscribe for, or any
solicitation of any offer to purchase or subscribe for, any
securities for sale in any jurisdiction.
Forward-looking statements
This announcement contains forward-looking statements,
including, without limitation, statements containing the words
"believes", "expects", "intends", "may", "will", or "would" or in
each case, their negative or other variations or similar
expressions. Such forward-looking statements involve unknown risk,
uncertainties and other factors, which may cause the actual results
of operations, performance or achievement of the Group, or industry
results, to be materially different from any future results,
performance or achievements expressed or implied by such
forward-looking statements.
Given these uncertainties, prospective investors and
shareholders are cautioned not to place any undue reliance on such
forward-looking statements. These forward-looking statements speak
only as at the date of this announcement. Subject to its compliance
with its legal and regulatory obligations (including under the
Listing Rules, the Disclosure Guidance and Transparency Rules, the
Market Abuse Regulation and the Prospectus Rules), the Company
undertakes no obligation to update or revise any forward-looking
statement contained herein to reflect any change in expectations
with regard thereto or any change in events, conditions or
circumstances on which any statement is based.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
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END
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February 17, 2020 02:00 ET (07:00 GMT)
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