Warehouse REIT (WHR) H1 2025 earnings summary

Executive summary

• Portfolio value increased 2.3% like-for-like to £811.3m, driven by strong multi-let asset performance and leasing momentum.

• Operating profit rose 8% to £18.7m and IFRS profit after tax up 14.1% to £25.1m, reflecting valuation gains and higher earnings.

• 46 lease events secured £5.5m in contracted rent, 15.7% ahead of prior rents, with occupancy at 94.8%.

• Ongoing capital recycling with £61.6m in disposals and £38.6m in acquisitions, supporting portfolio optimization.

• Progressing Radway Green sale, with Phase 1 terms agreed and completion expected by end 2024.

Financial highlights

• Adjusted earnings per share rose to 2.9p for the half-year, up from 2.3p year-over-year; adjusted earnings up 26% to £12.3m.

• EPRA NTA per share up 2.5% half-year on half-year to 127.5p; NAV per share at 128.8p.

• Adjusted EBITDA up 8% to £18.7m; total accounting return 5.1% for the half year.

• Dividend per share maintained at 3.2p, with coverage at 90.6%.

• Loan-to-value (LTV) at 34.1%, with £37m headroom and 88% of debt hedged.

Outlook and guidance

• Focus on capturing rental reversion, reducing debt below £250m, and rebuilding dividend cover.

• Pathway to full dividend coverage linked to Radway Green sale, refinancing, and cost control initiatives.

• Further disposals planned to reduce LTV below hedged position and enhance portfolio quality.

• Market sentiment for multi-let industrials is improving, with further rental growth anticipated.