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Warehouse Reit offers ecommerce exposure at a bargain price

The logistics landlord stands to benefit from increasing demand for online delivery, but its shares trade at a discount to peers
Warehouse Reit offers ecommerce exposure at a bargain price
  • Shares trade at a discount to peers and forecast NAV
  • Dividend maintained in the wake of the pandemic and forecast to grow next year
Tip style
Income
Risk rating
Medium
Timescale
Long Term
Bull points
  • Rising rental income
  • Growing portfolio valuation
  • Dividend forecast to rise
  • High rent collection rates
Bear points
  • Potential pressure on retail tenants
  • Manufacturing could come under strain

Logistics landlords proved themselves to be among the most resilient within the real estate sector in 2020. The post-pandemic acceleration towards ecommerce and efforts to strengthen supply chains ahead of the UK’s exit from the EU drove demand for warehouse space – those forces are unlikely to dissipate in 2021.

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