Warehouse REIT (WHR) H2 2024 earnings summary

Executive summary

• Portfolio value reached £810.2m with 96.4% occupancy; asset sales supported deleveraging and improved financial flexibility.

• Strategic focus remains multi-let industrial assets in key UK locations, supported by reversionary potential and resilient market fundamentals.

• Adjusted earnings covered 75% of the dividend, rising to 95% including disposal profits; full cover is targeted in 2025.

Financial highlights

• IFRS profit before tax was £34.3m, versus a £182.9m loss in the prior year; adjusted EBITDA rose 8.7% to £35.0m.

• Adjusted earnings per share increased to 4.8p from 4.7p; the full-year dividend was maintained at 6.4p per share.

• EPRA NTA per share rose to 124.4p from 122.6p; a revaluation gain was partly offset by interest-rate cap and accelerated borrowing costs.

• EPRA cost ratio was 24.4%, down 6.4 percentage points year on year; ongoing charges ratio was 1.4%.

• Asset disposals generated £5.5m profit above March 2023 valuations and added 1.3p to EPS; total accounting return was 6.7%.

Outlook and guidance

• ERV growth of 7.7% is expected to normalize; active management, leasing and rental reversion remain key rent-growth drivers.

• Full dividend cover is targeted in 2025 through rent capture, cost and occupancy control, earnings-enhancing disposals and accretive acquisitions.

• Radway Green negotiations with three parties are advanced; options include outright or phased sale, retained stake or performance fees, with a prudent six-month timeline.

• EPRA cost ratio is expected to settle at 23%–25%, with some further improvement possible but no dramatic decline expected.

• £100m of rate caps expire in 2025; replacement hedging or fixed-term debt will be assessed before July 2025, with a goal of keeping hedged debt cost near 3.8%.