Warehouse REIT boosts quarterly income 30 per cent with rent hikes
Warehouse REIT, the real estate investment trust, boosted its rental income for the quarter by over 30 per cent after renegotiating its warehouse rents.
In a trading update covering the first three months of 2024, the trust said it had completed 22 transactions, securing £1.4m of contracted rent.
The 22 transactions were nine new lettings, which saw a 38.3 per cent increase on their previous rent, seven renewals with an average 17.3 per cent increase, and six rent review, with a 27.4 per cent hike.
Notable transactions from the trust included a new letting at Foundry Point, Widnes, to a manufacturer of special purpose engineering equipment, with rent 50 per cent above previous levels, and a rent review in Oldbury Point, in the West Midlands, to a vehicle equipment producer, 47.4 per cent above prior rent.
Numis analyst Andrew Rees said the results highlighted “continued positive leasing momentum within the portfolio’s multi-let industrial space“.
Simon Hope, co-managing director of Warehouse REIT, said: “The consistency with which we are delivering rental uplifts is a testament to the expertise of our asset management team and the strength of our locations, which has underpinned like-for-like rental growth of five per cent for the financial year.
“The multi-let industrial market benefits from a diverse mix of occupiers, making it more resilient through the cycle and supporting our strategic priority to capture portfolio reversion,” Hope said.
“We expect the next key update that shareholders will be waiting for is news on the planned disposal of Radway Green development asset,” added Rees.
“In our view, a positive outcome on the Radway Green disposal will be key to helping shares improve from the current 35 per cent discount to net asset value (eight per cent yield).”