Warehouse REIT (WHR) H2 2024 earnings summary

Executive summary

• Achieved strong operational and financial performance, with portfolio value at £810.2m, high occupancy of 96.4%, and 5.1% like-for-like rental growth.

• Completed £165.2m of non-core asset disposals since November 2022, including £53.0m in FY24 at a 15.6% premium to book value, and acquired Ventura Retail Park for £38.6m.

• Strategic focus on multi-let industrial assets in key UK hubs, with significant reversionary potential and resilient market fundamentals.

• Maintained high occupancy at 96.4% and collected 99.3% of FY24 rent, reflecting a robust and diverse occupier base.

• Operating profit rose 8.7% to £35.0m, adjusted EPS increased to 4.8p, and dividend per share maintained at 6.4p.

Financial highlights

• IFRS profit before tax of £34.3m, a turnaround from a £182.9m loss in the prior year; IFRS EPS was 8.1p.

• EPRA NTA per share increased 1.5% to 124.4p; IFRS NAV per share was 126.1p.

• Adjusted EBITDA up 8.7% to £35.0m; adjusted earnings per share rose to 4.8p from 4.7p.

• EPRA cost ratio improved to 24.4%, down 640 bps year-over-year; total cost ratio: 24.4%.

• Loan-to-value reduced to 33.1% from 33.9%; headroom increased to £36.0m.

Outlook and guidance

• Expectation of continued ERV growth and resilience in the multi-let market, with 13.1% reversionary potential.

• Portfolio well positioned in vibrant economic areas, supporting further dividend cover improvements.

• Disposal plan near completion; future strategy includes selective acquisitions of higher-yielding warehousing assets.

• Confident in ability to rebuild dividend coverage and narrow the equity discount, despite sector challenges from higher interest rates.