Warehouse Reit (WHR) hit its annual dividend target for the year to March 2020, after declaring a fourth quarterly payment of 1.6p a share. The logistics landlord has collected 94 per cent of rent due on the March quarterly payment date. However, Andrew Bird, managing director of investment adviser Tilstone Partners, said he anticipated further pressure on rental income in June, with more tenants switching to monthly payment. He is optimistic collections will hold up, “but it might take a little longer to come through”, he said.
Net asset value (NAV) per share was flat at 110p, held back by the issuance of new shares in April last year, the proceeds of which contributed towards the acquisition of warehouse assets worth a total of £150m. Mr Bird said a further fundraising was planned for this year to take advantage of anticipated forced asset sales by property funds.
The loan-to-value ratio of the portfolio edged-up above the upper end of management’s target of 40 per cent, which it is eager to bring back down by the end of September by disposing of two remaining offices and other non-core assets.
The consensus forecast for NAV at the end of March 2021 is 111p a share, rising to 119p the same time the following year.
| WAREHOUSE REIT (WHR) | ||||
| ORD PRICE: | 112p | MARKET VALUE: | £359m | |
| TOUCH: | 112-114.5p | 12-MONTH HIGH: | 122p | LOW: 69p |
| DIVIDEND YIELD: | 5.5% | TRADING PROPERTIES: | nil | |
| PREMIUM TO NAV: | 2% | NET DEBT: | 71% | |
| INVESTMENT PROPERTIES: | £459m | |||
| Year to 31 Mar | Net asset value (p) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) ^ |
| 2018* | 102 | 8.4 | 5.0 | 2.5 |
| 2019 | 110 | 22.8 | 13.7 | 6.0 |
| 2020 | 110 | 20.7 | 8.6 | 6.2 |
| % change | -9 | -37 | +3 | |
| Ex-div: | 11 Jun | |||
| Payment: | 3 Jul | |||
| *Trading for 1 Aug to 31 Mar. ^Dividends paid quarterly, XD and payment dates refer to fourth-quarter dividend of 1.6p a share. | ||||
