The Lemon Fool

WAREHOUSE REIT ACQUIRES MILTON KEYNES MULTI LET-INDUSTRIAL ASSET MANAGEMENT OPPORTUNITY FOR £62M

-Provides 69 last mile units across 335,000 sq ft of space, in a core Oxford-Cambridge Arc location-

Warehouse REIT, the AIM-listed company that invests in e-commerce urban and last-mile industrial warehouse assets in the UK, announces that it has exchanged contracts to acquire Bradwell Abbey Industrial Estate, for £62 million excluding acquisition costs. The purchase price reflects a net initial yield of c. 4% based on day one passing / guaranteed income and continues Warehouse REIT's stated aim of acquiring assets in the Oxford-Cambridge Arc (the "Arc").

The multi-let industrial estate totals 69 units across c. 335,000 sq ft, ranging from c. 1,000 to 15,000 sq ft in size. It is located just off the A5, providing fast access to the surrounding population of Milton Keynes and the wider motorway network, with the M1 being six miles to the East. The estate is currently 96% leased to a range of occupiers including Argos, F&F Stores and Taylor Kerr Engineering Ltd and produces a total annual income (including some rental guarantees) of over £2.6 million. The low average rent of c. £7.80 psf offers good reversionary potential, considering that prime rents in the area range from £10 to £14 per psf.

richfool wrote:Has anyone seen any notifications (or RNS's) about WHR's next, i.e. first, dividend?

It has paid 1.60p for each of the last 4 quarters, including the final. The next, 1st quarter, usually goes ex dividend in late August, in fact any day now, but I have seen no information as to whether the amount will stay the same, or go up, or down.

I have found these, including WHR's own website, but no answers there:
https://www.dividendmax.com/united-king ... /dividends

https://www.warehousereit.co.uk/investo ... formation/

https://www.hl.co.uk/shares/shares-sear ... rd-gbp0.01

https://www.hl.co.uk/shares/shares-sear ... /dividends

Charlottesquare wrote:I sold these in March 2022 at 156.82 each, booking a profit from purchases in April and May 2020 at 96.91 and 96.83.

I am not convinced the current pricing at 79.8p is fair, yes markets are a bit nasty, yes interest rates have impacted valuations, hence 2023 write down, yes even normal EPS dropping to 4.7p looks less than ideal, but they have capped £200m of borrowing, sheds in my humble opinion are easier to let than offices right now, so have they been hit with general REIT contagion marking them down more than really is fair- to me they look worth investigating, if cannot find anything dire I suspect I will buy back in.

Charlottesquare wrote:17.
At the year end, the Group had a debt facility with a club of four banks: HSBC, Bank of
Ireland, Royal Bank of Canada and Barclays. The facility runs until January 2025, with an
option to extend for a further two years (subject to lender consent), and comprises an RCF
of £138.0 million and a term loan of £182.0 million, to give a total facility of £320.0 million.
At 31 March 2023, £124.0 million was drawn against the RCF and £182.0 million against
the term loan. This gave total debt of £306.0 million (31 March 2022: £271.0 million); with
the Group also holding cash balances of £25.1 million (31 March 2022: £16.7 million), the
Group’s net debt as at 31 March 2023 is £280.9 million (31 March 2022: £254.3 million). The
LTV ratio at 31 March 2023 was therefore 33.9% (31 March 2022: 25.1%), with the increase
reflecting the acquisition in the year and the lower portfolio valuation, partially offset by the
asset disposals. All borrowings under these agreements attract a margin of 2.0% – 2.2% per
annum above SONIA, plus a credit adjustment spread equal to 11.93 bps.
As at 31 March 2023, there is £14.0 million (31 March 2022: £49.0 million) available to draw.

richfool wrote:Has anyone seen any notifications (or RNS's) about WHR's next, i.e. first, dividend?

It has paid 1.60p for each of the last 4 quarters, including the final. The next, 1st quarter, usually goes ex dividend in late August, in fact any day now, but I have seen no information as to whether the amount will stay the same, or go up, or down.

I have found these, including WHR's own website, but no answers there:
https://www.dividendmax.com/united-king ... /dividends

https://www.warehousereit.co.uk/investo ... formation/

https://www.hl.co.uk/shares/shares-sear ... rd-gbp0.01

https://www.hl.co.uk/shares/shares-sear ... /dividends

richfool wrote:

Charlottesquare wrote:17.
At the year end, the Group had a debt facility with a club of four banks: HSBC, Bank of
Ireland, Royal Bank of Canada and Barclays. The facility runs until January 2025, with an
option to extend for a further two years (subject to lender consent), and comprises an RCF
of £138.0 million and a term loan of £182.0 million, to give a total facility of £320.0 million.
At 31 March 2023, £124.0 million was drawn against the RCF and £182.0 million against
the term loan. This gave total debt of £306.0 million (31 March 2022: £271.0 million); with
the Group also holding cash balances of £25.1 million (31 March 2022: £16.7 million), the
Group’s net debt as at 31 March 2023 is £280.9 million (31 March 2022: £254.3 million). The
LTV ratio at 31 March 2023 was therefore 33.9% (31 March 2022: 25.1%), with the increase
reflecting the acquisition in the year and the lower portfolio valuation, partially offset by the
asset disposals. All borrowings under these agreements attract a margin of 2.0% – 2.2% per
annum above SONIA, plus a credit adjustment spread equal to 11.93 bps.
As at 31 March 2023, there is £14.0 million (31 March 2022: £49.0 million) available to draw.

That doesn't look like they have too much leeway then.

Charlottesquare wrote:I am still tempted but my portfolio has only got £1,500 in it ( mainly divs not spent) so I think I would have to sell something and I am never very keen on selling .

richfool wrote:

Charlottesquare wrote:I am still tempted but my portfolio has only got £1,500 in it ( mainly divs not spent) so I think I would have to sell something and I am never very keen on selling .

As share prices have picked up today, (due to the PMI figs)
I decided to wait to see what the BOE does with interest rates in early Sept., which, if they go up again, may well unsettle SP's again.

midgesgalore wrote:So in at last,
WHR Warehouse REIT FTSE 250 First Interim 1.6p
Declared 31-Aug
Dividend Xd 07-Sep
Paid 06-Oct

Courtesy of https://www.dividenddata.co.uk/exdividenddate.py?m=&fm=&sc=dd&st=1

midgesgalore

Charlottesquare wrote:

richfool wrote:As share prices have picked up today, (due to the PMI figs)
I decided to wait to see what the BOE does with interest rates in early Sept., which, if they go up again, may well unsettle SP's again.

Afraid I was more impatient and dipped my toe back in today buying 2000 @ average cost of 84.7975p. I expect I will double up in October using two month's pension contributions plus dividends received in the interim. (My August purchase may assist you with a lower price in September as is often the case with my purchases)