Warehouse REIT Reports Strong FY25 Results Amid Takeover Offer
Why we think this is good
The financial results for Warehouse REIT are largely positive, showing resilience and growth in a challenging market. Profit after tax increased by 21.6%, and adjusted earnings per share rose by 8.3%. The portfolio valuation saw a 3.8% like-for-like increase, with multi-let assets performing particularly well. Leasing activity remained robust, with new lettings and renewals significantly ahead of previous contracted rents. While occupancy dipped slightly, the overall financial health of the company appears strong, with a maintained dividend and improved total accounting return of 8.0%. The ongoing takeover offer from Blackstone at 109 pence per share adds an interesting dynamic, potentially providing additional value for shareholders. However, it's important to note that this also introduces some uncertainty about the company's future direction.
Key Points
- IFRS Profit after tax up 21.6% to £41.7 million
- Adjusted EPS up 8.3% at 5.2p
- Like-for-like portfolio valuation up 3.8% to £805.4 million
- Occupancy down to 93.7% (FY24: 96.4%)
- 105 lease events securing £14.1 million of contracted rent
- £85.7 million of sales, 0.7% ahead of book value
- LTV at 32.4%, in-line with stated target
- Dividends paid per share maintained at 6.4p
- Total accounting return of 8.0% (FY24: 6.7%)
- Recommended takeover offer from Blackstone at 109 pence per share
Summary
Warehouse REIT has delivered a strong set of results for FY25, demonstrating resilience in its urban warehouse portfolio. Profit after tax increased by 21.6% to £41.7 million, while adjusted earnings per share rose 8.3% to 5.2p. The company's portfolio valuation saw a 3.8% like-for-like increase to £805.4 million, with multi-let assets performing particularly well, up 7.1%. Leasing activity remained robust, with 105 lease events securing £14.1 million of contracted rent, significantly ahead of previous rates. Despite a slight decrease in occupancy to 93.7%, the company maintained its dividend at 6.4p per share and delivered an improved total accounting return of 8.0%. The LTV ratio stands at 32.4%, in line with the company's target. Notably, Warehouse REIT has received a takeover offer from Blackstone at 109 pence per share, which the board has recommended to shareholders, potentially signaling additional value creation.