M7’s Regional E-Warehouse REIT has seen pretax profit fall by 72% during Q2.
However, net asset value has stayed steady at £41.7m over the seven months since it joined the IPSX platform.
Chair James Max said the figures, which showed a fall from £4m to £1.1m, “were distorted by an extended first period”. The REIT’s first period started on the date it was admitted to the IPSX platform in December, extending the period by 10 days. However, Max added that the results also included “a number of one-off cash items related to the listing”.
He added: “Our performance in the second quarter of the year underlines the benefits of the stabilised and geographically diversified nature of the company’s portfolio. The continued strong cash generation and increase in valuation supports the attractive 8% pa dividend yield.”
Though dividend cover had fallen by 40%, he added: “We expect that the dividend will be fully covered going forward.”
And despite “current economic headwinds”, Max said the prospects remained good. “The portfolio is underpinned by strong fundamentals of continued occupier demand driven by structural changes to consumer behaviour and an increased focus from businesses on their supply chain.”
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