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Highlights
- Leasing success: 25 transactions completed, securing £3.5 million in contracted rent, with deals averaging 32.2% ahead of previous rent levels.
- Capital activity: £12.8 million of non-core asset sales in Q4, bringing total disposals to £74.4 million for the first nine months of the financial year.
- Development progress: Ongoing sale of Phase 1 of Radway Green development in Crewe, with terms agreed and due diligence in progress.
Warehouse REIT (LSE:WHR), a leading investor in multi-let warehouse properties, has reported another positive quarter of leasing activity for the three months ending 31 December 2024. The company completed 25 leasing transactions, generating £3.5 million in contracted rent, with agreements on average 32.2% ahead of previous rents, underscoring the continued demand for high-quality logistics space.
Key Leasing Transactions
Among the standout deals in Q4 were:
- Gateway Park, Birmingham: A European logistics operator secured a lease generating £269,000 in rent, 52.2% above previous levels.
- Oldbury Point, Birmingham: A specialist van racking and wrapping supplier signed a lease for £114,000 in rent, 20.0% ahead of prior rent.
- Gawsworth Court, Warrington: An international air brake equipment supplier renewed its lease at £161,500, a 56.5% increase from the previous rent.
- Daneshill Industrial Estate, Basingstoke: A healthcare business completed a rent review, securing £1.2 million in rent, a 31.9% uplift.
For the first nine months of the financial year, Warehouse REIT has completed 71 transactions across 1.2 million sq ft, generating £9.0 million in total rent, with deals averaging 22.1% ahead of previous rent levels.
Capital Activity and Portfolio Optimization
Warehouse REIT also made significant progress in capital recycling, completing £12.8 million in non-core asset sales in the third quarter. The largest transaction was the sale of Swift Valley Industrial Estate in Rugby for £6.1 million. The overall sales were 8.1% ahead of the March 2024 book value, bringing total disposals for the first nine months to £74.4 million, 1.8% above book value.
Additionally, the company is advancing its plans for the sale of Phase 1 of its Radway Green development in Crewe. Terms have been agreed, and due diligence is well underway, with a further update expected soon.
