Warehouse REIT, a real estate investment trust, reported an increase in profit for the 2024 financial year as it completed the reshaping of its portfolio. The company’s operating profit rose to £35 million, up from £32.2 million in the previous year. The trust also experienced a 5% increase in like-for-like growth in contracted rents, with occupancy rates at 96.4%. Approximately 99% of rent for the 2024 financial year has already been collected.
Neil Kirton, Chair of Warehouse REIT, noted the “resilience” of industrial occupational markets as a key highlight of the year. He emphasized that the market continues to face a structural undersupply of well-located, quality assets, which has supported an increase in the company’s valuation and allowed for nearly a 30% uplift in rents.
Over the past year, Warehouse REIT has been focusing on rebalancing its portfolio towards multi-let warehouses. The trust’s disposal plan is nearly complete, with sales worth £53 million during the 2024 financial year, representing a 15.6% premium over the March 2023 book value. Post year-end sales have reached £57.5 million, with negotiations for the final sale at Radway Green in Crewe well advanced. The company maintained its annual dividend at 6.4p per share and reported an EPRA net tangible asset value per share of 124.4p, a 1.5% increase.
Additionally, Warehouse REIT is identifying opportunities to selectively acquire higher-yielding warehousing assets. The trust recently announced the acquisition of Ventura Retail Park in Tamworth for £38.6 million, which Kirton described as “highly complementary” to the business. Kirton acknowledged that the commercial real estate sector may face ongoing challenges due to higher interest rates but expressed confidence in the board’s proactive management approach. He affirmed the board’s commitment to making strategic decisions to ensure a strong operational platform that will drive value for shareholders.
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