Warehouse REIT Announces 375,000 sq ft Lease Renewal
Why we think this is neutral
The RNS announcement appears to be a standard regulatory update regarding a lease renewal, which does not seem to have a material financial impact on the business based on the information provided. The lease renewal secures £2.4 million of contracted rent and extends the portfolio WAULT, which are positive developments, but there are no significant financial details or forecasts included.
Key Points
- 375,000 sq ft lease renewal with Wincanton plc at Midpoint 18, Middlewich
- New headline rent of £6.50 psf, rising to £7.00 psf, representing a 28.8% uplift
- £2.4 million of contracted rent secured
- Portfolio WAULT extended from 4.7 years to 5.1 years on a pro forma basis
Summary
Warehouse REIT has announced a 375,000 sq ft, ten-year lease renewal at its Midpoint 18 property in Middlewich with Wincanton plc, a major occupier in the company's portfolio. The new headline rent of £6.50 psf, rising to a minimum of £7.00 psf at the end of the fifth year, represents a 28.8% uplift on the previous passing rent and secures £2.4 million of contracted income. The transaction also extends the portfolio WAULT to expiry from 4.7 years to 5.1 years on a pro forma basis.