Warehouse REIT plc, a UK-based real estate investment trust, released its final results for the year ended March 31, 2025, highlighting a strong operational performance and successful execution of strategic initiatives.
The companys like-for-like portfolio valuation increased by 3.8% to £805.4 million, driven by the outperformance of strategically located multi-let assets.
EPRA NTA per share increased by 2.9% to 128.0p, delivering a total accounting return of 8.0%.
The companys focus on well-located, multi-let space resulted in resilient demand, with leasing activity 24.4% ahead of previous rents and £3.7 million of new contracted rent added.
The companys financial performance improved, with IFRS profit after tax up 21.6% to £41.7 million and adjusted EPS up 8.3% at 5.2p.
Strategic initiatives included a £300 million debt refinancing on improved terms and amendments to the Investment Management Agreement, resulting in cost savings.
The companys LTV was at 32.4%, in line with its stated target, and it had significant headroom of £31.0 million in cash and available facilities.
Progress was made on disposals, with £85.7 million of sales at 0.7% ahead of book value, and the company continued to recycle capital into value-accretive opportunities.
The companys sustainability strategy progressed, with 68.7% of the portfolio EPC A+ to C rated, and it received EPRA sBPR Gold for the fourth consecutive year.
On June 4, 2025, the company announced that it had received an all-cash offer for the entire issued and to-be-issued share capital at 109 pence per share from Blackstone Inc.
The companys financial highlights included an increase in IFRS profit before tax to £41.7 million, adjusted earnings per share of 5.2p, and a total accounting return of 8.0%.
The companys investment portfolio statistics showed a contracted rent of £42.5 million, an EPRA NTA per share of 128.0p, and a loan-to-value ratio of 32.4%.
The companys key performance indicators included an occupancy rate of 93.7%, like-for-like rental income growth of 4.7%, and a total cost ratio of 28.1%.
The companys investment advisor, Tilstone Partners Limited, highlighted the successful execution of strategic priorities, including capturing reversionary potential, recycling capital, progressing the disposal of Radway Green, and increasing dividend cover.
The companys capital activity included £85.7 million in disposals and £38.6 million in acquisitions, focusing on mature or non-core assets and earnings-enhancing opportunities.
The companys valuation increased by 3.8% on a like-for-like basis to £805.4 million, driven by ERV growth of 6.8% and an improvement in the portfolios equivalent yields.
The companys leasing and asset management activities resulted in 105 lease events, securing £14.1 million in contracted rent, and a weighted average unexpired lease term of 5.0 years.
The companys ESG performance showed progress, with 68.7% of the portfolio EPC A+ to C rated, an improvement in its MSCI rating, and a 30.8% like-for-like reduction in scope 1 and 2 emissions.
The companys financial review highlighted flat net operating income, an increase in adjusted earnings per share, and a total accounting return of 8.0%.
The companys capital allocation and balance sheet management included a focus on efficient capital allocation, with net debt standing at £260.6 million and a loan-to-value ratio of 32.4%.
The companys key performance indicators for the year included an occupancy rate of 93.7%, like-for-like rental income growth of 4.7%, and an EPRA NTA per share of 128.0p.
The companys investment advisor, Tilstone Partners Limited, provided an overview of its activities, including capturing reversionary potential, recycling capital, progressing the disposal of Radway Green, and increasing dividend cover.
The companys post-period end activity included the acquisition of Rycote Lane, a multi-let industrial estate near Thame, for £34.75 million.
The companys principal risks and uncertainties included economic downturn, poor returns on the portfolio, poor performance of key third-party service providers, loss of REIT status, breach of loan covenants, and climate-related risks.
The company provided a going concern and viability statement, highlighting the impact of the ongoing bid process on its financial statements and the existence of a material uncertainty that may cast significant doubt on its ability to continue as a going concern.
The companys consolidated statement of comprehensive income, consolidated statement of financial position, consolidated statement of changes in equity, consolidated statement of cash flows, and notes to the consolidated financial statements provided detailed financial information for the year ended March 31, 2025.
The companys supplementary notes included EPRA performance measures, EPRA income statement and earnings performance measures, EPRA balance sheet and net asset value performance measures, EPRA net initial yield, EPRA vacancy rate, EPRA cost ratio, EPRA capital expenditure, EPRA like-for-like rental income, EPRA loan to value ratio, and EPRA total accounting return.
