Warehouse REIT Sees Profit Surge on Higher Property Revaluations

London November 21, 2024: Warehouse REIT PLC reported a rise in profit for the first half of its current financial year, driven by a significant increase in the fair value gain on property revaluations.

The London-based real estate investor, specialising in UK industrial warehouses, posted a pretax profit of £25.1 million for the six months ending September 30, up 14% from £22.0 million in the previous year. This growth was primarily attributed to the fair value gain on investment property revaluations, which more than doubled to £17.2 million from £6.8 million.

Gross property income increased by 7.7%, reaching £25.1 million compared to £23.3 million the prior year. The company announced an interim dividend of 3.2 pence per share, maintaining the same level as last year.

According to a report by Alliance News, Chair Neil Kirton commented, "The occupational market for multi-let industrial continues to be resilient; rents are growing at an attractive rate, quality stock remains in short supply and, for the first time since March 2022, we have seen yield compression on multi-let assets which has supported a 4.1% increase in the value of the investment portfolio.”

"Our strategy continues to focus on maximising the income streams from our high-quality portfolio of predominantly multi-let, well-located, and highly reversionary warehouse assets. This approach goes hand-in-hand with reducing our debt and rebuilding dividend cover, which are strategic imperatives for the business. Key to this is executing on the sale of our Radway Green development, and we are pleased to have agreed terms on the first phase."Broker Shore Capital has forecasted full-year total property income for Warehouse REIT to reach £52.3 million, marking a 2.5% increase from £51.0 million recorded in the previous year. This positive outlook reflects the company's robust performance and growing property portfolio.

On November 19, Warehouse REIT shares saw a modest increase of 0.7%, trading at 84.32 pence each in London. The company's strong first-half results and resilient market conditions underscore its continued growth potential and strategic focus on maximising income streams and portfolio value.


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