Warehouse REIT expects the rental market to grow faster than other sectors following a busy period in the second quarter.
In Q2, the AIM-listed warehouse investor completed 11 new lettings and five lease renewals across 125,983 sq ft, generating nearly £450,000 of additional income.
Andrew Bird, managing director of Tilstone Partner, the manager of Warehouse REIT, said: “The outlook in the markets where the portfolio is weighted remains appealing, with rental growth forecast to outperform other sectors, and with a number of asset management-enhancing initiatives underway, our focus remains on further improving the income profile of the portfolio and delivering value on behalf of shareholders.”
Bird highlighted a 15-year lease renewal to DFS at South Gyle industrial estate in Edinburgh, which saw the tenant more than double its occupancy to nearly 50,000 sq ft. “The significant letting to DFS for additional warehouse space to support its fast-growing e-commerce operations is a trend that we are seeing replicated by retailers across the UK.”
In May, Warehouse REIT announced its maiden full-year results since listing on AIM in September last year. It posted an NAV per share of 102.1p and pretax profit of £8.4m.
The specialist warehouse investor, on its entry to the London Stock Exchange, acquired a seed portfolio of 27 assets for £108.9m, reflecting a 7% net initial yield, and more recently acquired the IMPT Portfolio, comprising 51 warehouse properties for £116m with a net initial yield of 7%.
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