Warehouse REIT is aiming to continue its drive for further acquisitions, after posting robust rent collection rates and occupancy levels.
The REIT collected 95% of rents due in December, 3% of which were deferred payments. For its latest financial year ending 31 March, the company has received 96% of rents.
During the period the landlord completed 19 new lettings and 24 lease renewals across 238,900 sq ft. Warehouse REIT said these completed ahead of September book values, generating £1.5m per annum of contracted rent.
Total occupancy across its portfolio grew by 0.6% to 94.9% at the end of December. Its vacancy rate stood at 2.6%, excluding spaces under offer or undergoing refurbishment.
The landlord said it bought 11 assets for a combined £80.2m before costs, at an average net initial yield of 6.3%, which has taken the portfolio to more than 7.5m sq ft.
Andrew Bird, managing director of investment adviser Tilstone Partners, said the company has achieved rents on new lettings in excess of valuation as “competition for space from a broad range of tenants has translated into increased occupancy levels”.
He said: “Whilst the market for industrial assets remains competitive, we continue to identify attractive acquisition opportunities.
“Advanced purchase due diligence is under way on several assets that meet Warehouse REIT’s investment criteria, at both an individual asset and portfolio level.”
The firm completed its investment of a £153m equity raise in late December last year.
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