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Warehouse REIT PLC on Thursday reported a solid performance in its financial year to date, with portfolio occupancy remaining stable, while new lettings and lease renewals generate rent.
For the period from April 1 to August 23, the industrial-focused real estate investment trust secured 15 new lettings, nine lease renewals and nine rent reviews across 198,000 square feet of space. This will generate £1.5 million in annual contracted rent, up 3.5% from estimated rental values at the end of March.
In addition, life-for-like contracted rent within the trust's portfolio has increased 1.6%.
Warehouse REIT's portfolio occupancy dipped to 93.4% as at August 23 from 93.7% at the end of March, while effective vacancy stood at 2.7%.
‘Whilst we remain alert to the increasingly challenging macroeconomic backdrop, our confidence in the warehouse and logistics sector remains strong. Underpinned by chronic undersupply and supply chain reconfiguration demands, H1 2022 take up reached a record 30.8 million sq ft, a 10% increase on H1 2021,’ said Andrew Bird, managing director of investment advisor Tilstone Partners.
‘At a portfolio level, demand for tenant critical assets which account for a fraction of an occupiers' costs, in commercially relevant locations, is enabling the company to continue to capture reversionary potential, as well as materially grow ERV's and contracted rent,’ Bird added.
Shares in Warehouse REIT were down 0.5% at 158.37 pence on Thursday in London.
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