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Investing.com -- Warehouse REIT (LSE:WHR) stock climbed 3% as the company reported robust results in its third-quarter trading update.
The real estate investment trust saw significant leasing activity, with 25 deals closed at rents 32.2% higher than previous rates. This leasing momentum contributed to a 22.1% average increase over prior rents across 1.2 million square feet in the first nine months, generating £9 million in rent.
The company also announced non-core asset sales totaling £12.8 million in the third quarter, exceeding the March 2024 book value by 8.1%. Cumulative disposals for the first nine months reached £74.4 million, 1.8% above the book value, signaling strong investor interest and portfolio management.
Warehouse REIT has taken steps to address dividend cover, particularly ahead of the sale of Phase 1 of the Radway Green development site in Crewe. The company has reported satisfactory progress on this front.
Additionally, the manager’s fee structure has been revised to 1.1% for net asset values (NAV) under £500 million and 0.9% for NAV over £500 million starting from the fiscal year 2026. This adjustment introduces a cost-saving measure that is expected to result in an annual saving of £2.1 million, or an earnings per share (EPS) increase of 0.5p.
CEO Simon Hope highlighted the company’s active asset management strategy, stating, "continue to actively manage our assets to drive rents across our portfolio which was c. 16% reversionary at the half year."
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