Warehouse REIT has completed the sale of two warehouses for £9.5m. The REIT said the sale price was 30% ahead of the 31 March 2023 book value, reflecting an average net initial yield on passing rents of 6%.
On the Isle of Wight, Warehouse REIT has sold a warehouse in Carisbrooke to an unnamed buyer for £3.1m and on Newport Road, Cardiff, it has sold a warehouse for £6.4m, also to an unnamed buyer.
Warehouse REIT said proceeds from the sales will be used to pay down debt, supporting earnings in the current financial year.
Simon Hope, co-managing director of Tilstone, investment advisor to Warehouse REIT, said: “These sales demonstrate good progress on the plan Warehouse REIT set out in June. Since then, its successful capital recycling has strengthened the company’s balance sheet and earnings position, whilst refining the portfolio and allowing the company to focus on assets with the strongest opportunities.
“The premium to book value achieved across these sales provides further evidence that liquidity for well-let warehouse assets remains and illustrates Warehouse REIT’s ability to create and crystallise value for shareholders through asset management despite the difficult macro-economic conditions.”
