Warehouse REIT posted an increase in profit after tax and enjoyed an uplift in the value of its portfolio in the six-month period to 30 September.
The REIT’s IFRS profit after tax was up 14.1% to £25.1m, its operating profit rose to £18.7m – up 8% – and its like-for-like portfolio valuation increased by 2.3% to £811.3m.
Warehouse REIT said its portfolio valuation uplift was driven by the outperformance of strategically located multi-let assets, which now comprise 79.1% of its investment portfolio.
Neil Kirton, chairman of Warehouse REIT, said: “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 predominately 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.
“Discussions are underway between the independent directors and Tilstone Partners directed at making some changes to the management arrangements. It is intended that these discussions will result in a lower cost of managing the portfolio and further increase alignment between the plc shareholders and the adviser.”
