REIT News - April 2022

Insights /

Welcome to Ince Corporate Finance’s REIT News update...

REIT Market Overview

The month of March saw the majority of REITs announcing and reviewing their interim or full year results at December 2021. In any case, it was still an active month in terms of investments, especially in the office, industrial and healthcare industries.

Assura announced the close of a £25 million development in Cramlington, Northumberland and a £31 million development funding for a cancer diagnostic and treatment centre in Guildford. CLS Holdings exchanged contracts to acquire a 23,982sqm office building in Dortmund for €66.25 million. Impact Healthcare REIT invested in two care homes in Mansfield, Nottinghamshire, for a total consideration of £11.1 million. The Unite Group disposed a portfolio of 11 properties for £306 million to an affiliate of Lone Star Funds. Warehouse REIT exchanged contracts to acquire a 170,000 sqft multi-let industrial development in Thame, Oxfordshire for a total consideration of £35 million.


Market Activity
(Ticker, Share Price, EPRA NAV per Share, Premium/Discount)


Alternative Income REIT Plc (LON:AIRE, 77.6p, 90.4p, -14.1%)

Alternative Income REIT, the owner of a diversified portfolio of UK commercial property assets predominantly let on long leases, announced its interim report and financial statements for the half year ended 31 December 2021.

  • The Net Asset Value increased by 6.7% or £4.58 million to £72.75 million, equivalent to 90.38 pence per share ('pps') as at 31 December 2021 (31 December 2020: £68.17 million and 84.68 pps). The majority of this increase is due to the £3.9 million valuation uplift in investment properties primarily due to improved market conditions, with previous year valuations impacted by poorer market conditions due to Covid-19;
  • Profit before tax increased 105.3% to £6.23 million and earnings per share to 7.74p for the half year (half year ended 31 December 2020: profit of £3.03 million and earnings per share of 3.77p). The majority of this increase is due to the £3.9 million valuation uplift in investment properties;
  • At 31 December 2021, the Group had a £41.00 million loan facility with Canada Life Investments, which represented a loan to Gross Asset Value ('GAV') of 35.22% (31 December 2020: 36.62%), with the weighted average interest cost of 3.19% (31 December 2020: same);
  • At 31 December 2021, the Group's property portfolio had a fair value of £107.73 million across 18 properties (31 December 2020: £108.53 million across 19 properties). During the year, the Group disposed of the investment property known as Trident Business Park, Huddersfield (refer to Financial Results section within the Chairman's Statement below). On a like-for-like basis the remaining 18 properties were valued at £107.73 million at 31 December 2021 (31 December 2020: £103.03 million), a valuation increase of £4.70 million or 4.6%;
  • EPRA Net Initial Yield ('NIY') improved to 5.72% at 31 December 2021 (31 December 2020: 5.49%);
  • Rent recognised during the half year was £3.73 million (half year to 31 December 2020: £3.49 million), of which, £0.25 million was accrued debtors for the combination of minimum uplifts and rent-free period (31 December 2020: accrued debtors of £0.24 million). The number of tenants at 31 December 2021 was 20 (31 December 2020: 22);
  • At 31 December 2021, the portfolio had Annualised Gross Passing Rental Income of £6.62 million across 18 properties (31 December 2020: £6.94 million across 19 properties);
  • 92.6% of the Group's income is inflation linked to Retail Price Index ('RPI') or Consumer Price Index ('CPI');
  • The assets were 99.4% let at 31 December 2021 (31 December 2020: fully let);
  • The weighted average unexpired lease term ('WAULT') at 31 December 2021 was 18.1 years to the earlier of break and expiry (31 December 2020: 18.3 years) and 20.2 years to expiry (31 December 2020: 20.3 years);
  • By 2 March 2022, in respect of the March, June, September and December 2021 rent quarters, the Group has collected 100% of rent. All current tenants have repaid outstanding arrears/deferrals, including Pure Gym who accelerated repayment of all arrears from July 2022 to December 2021;
  • The portfolio is fully let following a further letting to Bgen Ltd at St Helens;
  • The Company completed the acquisition of the Volvo car showroom in a prime location on the A4 Bath Road, Slough for £5.0 million (net of acquisition costs to the Company) with a materially longer WAULT of 15 years. This acquisition redeployed the net proceeds from the Group's disposal, announced on 30 November 2021, of its Audi car showroom in Huddersfield for £5.5 million.


Assura Plc (LON:AGR, 66.9p, 57.2p, +17.0%)

Assura, the leading primary care property investor and developer, announced it has reached financial close on the Northumbria Health and Care Academy, a £25 million development in Cramlington, Northumberland.

Assura announced it has reached financial close on a development funding agreement for a £31 million cancer diagnostic and treatment centre in Guildford. The building will be operated by and let to Genesis Cancer Care UK Limited ("GenesisCare") on a 30-year FRI lease with annual, index-linked rent reviews.


BMO Real Estate Investors Limited (LON:BREI, 94.0p, 121.0p, -22.3%)

BMO Real Estate Investments announced interim results in respect of the six-month period ended 31 December 2021. Key details are:

  • Net asset value total return of 20.6%;
  • Share price total return of 23.3%;
  • Portfolio ungeared total return of 16.3%;
  • Annualised dividend yield of 4.7% based on the period end share price;
  • Dividend cover of 100.5%.


British Land Plc (LON:BLND, 530.4p, 681.0p, -22.1%)

British Land and AustralianSuper announced the sale of 50% of British Land's share in the Canada Water Masterplan (the "Masterplan") to AustralianSuper for £290m. Following completion of the sale, British Land and AustralianSuper formed a 50:50 joint venture (the "JV") to accelerate the delivery of this 53-acre development, which is one of the largest and most sustainable London regeneration projects in history. This transaction values British Land's interest prior to the sale at £580m. AustralianSuper is Australia's biggest profit-to-member pension fund with more than £140bn in member assets under management and a growing presence in the UK property landscape.


Capital & Regional Plc (LON:CAL, 58.2p, 102.0p, -42.9%)

Capital & Regional, the UK focused REIT with a portfolio of in-town community shopping centres, announced its full year results to 30 December 2021. Key details are:

  • Strategic shift in 2017 to focus on providing non-discretionary goods and services ensured that all seven of the Company's community shopping centres remained open to some degree throughout the entirety of 2021, despite a full national lockdown from 6 January 2021 to 12 April 2021;
  • 143 new lettings and renewals achieved during the year at a combined average premium of 7.3% to previous rent and 15.6% to ERV, more than in 2020 and 2019 combined (63 and 66 respectively).  New lettings completed in the period include a 15-year lease agreement with Whittington Health NHS Trust to open a Community Diagnostics Centre at The Mall, Wood Green;
  • Occupancy begun to recover, standing at 93%, up from 90% at 30 June 2021 (December 2020: 92%);
  • Footfall outperformed the national index by 5.7%, with 47.7 million visits across the portfolio in 2021;
  • 93% of 2021 rent collected, including 5% on agreed formal payment plans, with 95% of Q1 2022 already collected;
  • Net Rental Income (NRI) was £29.0 million (December 2020: £34.1 million), with the £5.1 million reduction primarily attributable to a £4.0 million surrender premium secured in 2020, as well as the continued impact of Covid-19. This flowed through to a fall in Adjusted Profit to £8.1 million (December 2020: £11.0 million);
  • IFRS Loss for the period narrowed to £26.4 million due to H1 2021 valuation decline, partially offset by the gain from the discounted purchase of the Mall debt facility (December 2020: Loss of £203.9 million);
  • Hemel Hempstead and Luton reclassified as Held for Sale 'Managed Assets' reflecting substance of Group's ongoing involvement and expectation of a disposal;
  • Restructure of £100 million Mall debt facility completed in November 2021, debt acquired for £81 million funded by new £35 million facility, £30 million equity raise and existing cash resources;
  • Proceeds from sale of Maidstone House office building for £7.1 million in December 2021 used to reduce the £35 million facility in early January 2022;
  • Combination of above actions have reduced Group Net LTV to 49% from 72% at June 2021 and 65% at December 2020.  Walthamstow capital receipt will further reduce Group Net LTV by more than 200 basis points;
  • As at 30 December 2021, the Group had total cash on balance sheet of £58.5 million, of which more than £30 million was maintained centrally and without any restriction;
  • Property valuations stabilised in second half of 2021 with the Investment Assets portfolio marginally increasing in value to £380.1 million at year end (30 June 2021: £377.2 million) after 6.4% decrease in H1 2021;
  • Net Asset Value per share and EPRA NTA per share, at 102p (December 2020: 150p and 157p respectively) reflecting the H1 2021 valuation decline and the impact of equity raise, net of the benefit of discounted Mall debt repurchase;
  • To mitigate further debt levels the Group has not declared a final dividend.  The Group plans to resume dividend payments from the announcement of its Interim Results in the second half of 2022 in line with its previous dividend policy to distribute at least 90% of the Company's EPRA earnings.


CLS Holdings Plc (LON:CLI, 201.0p, 350.1p, -42.6%)

CLS Holdings announced that is has unconditionally exchanged contracts to acquire a 23,982sqm / 258,140sqft office building in Dortmund for €66.25 million (€2,763psqm) excluding costs. The property is located in a prime office location in the CBD of Dortmund, next to the central shopping district. The Central Station is within 800m of the asset and the underground station Stadtgarten is only a few hundred meters away. Dortmund is a top 10 city in Germany by population with a total office stock of 3.2m sqm. It is situated on the eastern side of the densely populated "Metropole Ruhr", the 3rd largest metropolitan area in Western Europe with a population of over 5 million people.

CLS Holdings also announced final results. Key details are:

  • EPRA NTA up 1.5% primarily due to EPRA earnings and portfolio valuation gains, which were offset by foreign exchange losses due to the strengthening of sterling;
  • Portfolio valuation up 1.6% in local currency with increases in all regions (3.1% in Germany, 0.7% in the UK and 0.3% in France) as a result of strong letting activity and slight yield tightening;
  • Profit before tax down 5.2% to £91.5 million (2020: £96.5 million) due to lower gains from disposals but statutory EPS up 54.2% because of the de-recognition of deferred tax liabilities on UK property revaluation gains following CLS' conversion of its UK operations to a Real Estate Investment Trust ("REIT");
  • A proposed final dividend of 5.35 pence per share to be paid on 29 April 2022, resulting in a total 2021 dividend of 7.70 pence per share, an increase of 2.0% (2020: 7.55 pence per share) and total accounting return for the year of 3.7% (2020: 8.1%);
  • Rent collection remained strong in 2021 with 99% collected (2020: 99%) and 97% of first quarter 2022 contracted rent due now collected (2020: 98%);
  • Net rental income stable at £108.0 million (2020: £109.8 million) due to redevelopment and leasing expiries, foreign exchange reductions and lower dilapidations income offset by contributions from net acquisitions;
  • Acquired six properties for £164.8 million, three of which had exchanged in 2020. The five properties in Germany and one in the UK were bought for their asset management opportunities at a combined net initial yield of 3.9% and a reversionary yield of 6.1%. Post period end, a further two properties have exchanged in Germany for £75.7 million, with a combined net initial yield of 5.1% and a reversionary yield of 5.6%. Both completions are due in April 2022;
  • Disposed of eight properties for £37.4 million (4.8% net initial yield) at 3.2% above 2020 book values. Post period end, two further properties exchanged for sale in the UK at £10.1 million (6.0% net initial yield);
  • Completed 125 lease events securing £12.9 million of annual rent at 0.4% above 31 December 2020 estimated rental values;
  • Vacancy rate increased to 5.8% (2020: 5.1%) due to the deliberately acquired vacancy in the 2021 German purchases.
  • Weighted average cost of debt at 31 December 2021 down 6 basis point to 2.22% (2020: 2.28%);
  • Loan-to-value at 37.1% (2020: 33.7%) reflecting net acquisitions during the year.  Gross debt of £1,031.6 million (2020: £970.7 million) with cash of £167.4 million (2020: £235.7 million) and £50 million (2020: £50 million) of undrawn facilities;
  • Second long-term, 'green' loan secured for £61.7 million with Scottish Widows at 2.65% fixed interest rate for 12 years, such that over 20% of CLS' loan portfolio is now 'green'. This transaction contributed to maintaining high weighted average debt maturity of 4.4 years (2020: 4.6 years);
  • Financed or refinanced £196.7 million of debt in 2021 at an average of 1.62%, including £172.8 million fixed at 1.70%, and repaid £88.2 million of debt;
  • The loan portfolio as at 31 December 2021 had 85% at fixed rates (31 December 2020: 84%);
  • 92% of Group electricity is now carbon-free and 83% of managed portfolio is achieving at least a Good BREEAM In-Use rating.


Custodian REIT Plc (LON:CREI, 101.8p, 113.7p, -10.5%)

Custodian REIT, the UK property investment company, has acquired a 24,134sqft industrial unit on Moorgreen Industrial Park, Nottingham. The unit is occupied by Hickling & Squires, with a weighted average unexpired term to first break or expiry of 7.0 years. The unit has a passing rent of £130,000 per annum, reflecting a net initial yield of 6.53%.


Empiric Student Property Plc (LON:ESP, 91.3p, 107.4p, -15.0%)

Empiric Student Property, the owner and operator of premium student accommodation serving key UK universities, reported its annual results for the 12 months ended 31 December 2021. Key details are:

  • Revenue in 2021 of £56.0 million (2020: £59.4 million), as occupancy for the first eight months in academic year 20/21 was 65% compared to 84% for the same period in 2020;
  • Like for like rental growth for the academic year 20/21 was 1.3%, as the Company prioritised occupancy levels over rental growth;
  • Started the academic year 21/22 at 81% revenue occupancy, which has increased to 84% since then;
  • Property costs were £23 million, up by 2%, mainly driven by having to pay council tax on empty rooms as a result of lower occupancy levels;
  • The impact of reduced revenue compared to pre-COVID levels produced a gross margin for the year of 58.8% (2020: 61.9%);
  • Adjusted Earnings for the year were £10 million (2020: £13.9 million), with Adjusted earnings per share of 1.65 pence (2020: 2.30 pence);
  • The net profit from a change in the fair value of investment properties was £17.6 million (2020: loss of £37.6 million);
  • Profit before tax of £29.2 million (2020: loss of £24.0 million), with basic earnings per share of 4.84 pence (2020: loss of 3.97 pence);
  • Resumed dividend payments in Q4 2021 with a payment of 2.5p;
  • Property portfolio valued at £1,022 million (2020: £1,005m). On a like for like basis, the investment property valuation increased by 3%;
  • Net Initial Yield improvement to 5.3% (2020: 5.6%);
  • EPRA Net Tangible Assets ("NTA") per share up 2.3% to 107.4 pence (2020: 105.0 pence);
  • Total accounting return, the sum of income and capital growth, increased by 228% to 4.6% (2020: minus 3.6%);
  • Sold five non-core assets for £26.5 million, in line with the latest book value and portfolio realignment strategy;
  • Acquired the freehold of a new 92-bed purpose-built studio asset in a prime location in Bristol city centre for £19 million with significant reversionary potential, helping to build out the Group’s presence in a key target city;
  • Two developments underway in Bristol and Edinburgh will complete in time for the forthcoming academic year and provide accommodation for an additional 212 students;
  • Loan to Value for the Group was 33.1%;
  • At 31 December 2021, before deduction of loan arrangement fees, the Group had committed investment debt facilities of £420 million, of which £375 million were drawn down. £277 million of this debt is fixed and £98 million is floating. The aggregate cost of debt was 3%, with a weighted average term of 4.9 years;
  • ESG Committee completed a detailed materiality assessment and have agreed clear metrics for the ESG programme including setting a target of achieving net zero in operations no later than 2035;
  • As at 2 March 2022, bookings of 36% for the 2022/23 academic year (20% for the 2021/22 academic year as at 16 March 2021), and broadly in line with pre-Covid bookings at this stage of the year;
  • Targeting revenue occupancy for the 2022/23 academic year of 85% to 95% and expect to be towards the top of this range, assuming no further disruption.


Great Portland Estates Plc (LON:GPE, 712.0p, 796.0p, -10.6%)

Great Portland Estates announced the acquisition of the long leasehold interest at 7/15 Gresse Street and 12/13 Rathbone Place, W1, for £36.5m (£847psf, 5.6% NIY). The building has been home to the Fashion Retail Academy since 2005, which will remain in occupation until the precise timing for its relocation to a larger new home is confirmed. The company also announced three lettings within its retail portfolio, totalling 8,800sqft at a combined rent of over £2.0 million per annum. Together, these lettings are on average 12% ahead of CBRE's September 2021 ERV demonstrating the increasing confidence in the continued recovery of the central London retail market by international and domestic retailers.


Hammerson Plc (LON:HMSO, 33.0p, 64.0p, -48.4%)

Hammerson announced full year results. Key details are:

  • Adjusted earnings up 122% to £81m (FY20: £37m), benefiting from increased net rental income, a strong recovery in Value Retail earnings, and lower finance costs. 2021 earnings benefit from a £17m year-on-year increase in surrender premiums and a £12m net rental income contribution from in year disposal;
  • Adjusted earnings per share up 38% to 1.8p (FY20: 1.3p - restated);
  • IFRS loss of £429m (FY20: £1,735m loss) largely due to £470m Group portfolio revaluation deficit (H1 £361m, H2 £109m). Basic loss per share of 9.8p (2020: 62.4p - restated);
  • Group portfolio value of £5.4bn, with capital returns beginning to stabilise in the second half: FY -7.9%, H2 -1.7%;
  • EPRA net tangible assets (NTA) per share reduced to 64p from 69p at 30 June and 82p at FY20;
  • £573m of disposals contracted in 2021, including £140m from Silverburn completed in March 2022:
    • Net debt down 19% to £1.8bn at 31 December 2021;
    • Ample liquidity of £1.5bn in undrawn committed facilities and cash at 31 December 2021;
    • Headline LTV 39% (FY20: 40%), fully proportionally consolidated (FPC) LTV 47% (FY20: 46%).
  • Further £120m disposal of Victoria, Leeds completed in 2022 bringing total disposals to £623m since the beginning of 2021:
    • Pro forma net debt down 27% to £1.6bn, liquidity £1.7bn;
    • Pro forma headline LTV 37%, FPC LTV 45%.
  • Investment grade credit rating re-affirmed by Moody's in February 2022; outlook changed from negative to stable;
  • Strong footfall recovery in all territories when restrictions relaxed; occupier sales ahead of footfall;
  • Strong demand for prime space: flagship leasing value of £25m, up 150% on 2020; flagship occupancy improved to 96% from 93% at half year;
  • Headline leasing broadly in line with previous passing rent, net effective rent -11% vs ERV (H1 -18%, H2 -5%);
  • Strong momentum on leasing into 2022, with YTD deals above previous passing rent and in line with ERV;
  • Subject to shareholder approval, the Board is proposing a final dividend of 0.2 pence per share in cash with an enhanced scrip dividend alternative of 2.0 pence per share. Both the Final 2021 Dividend and the Enhanced Scrip Dividend Alternative will be paid as a Property Income Distribution ("PID"), net of withholding tax where appropriate.


Hibernia REIT (LON:HBRN, 137.6p, 172.2p, -20.1%)

Hibernia REIT announces it has exchanged contracts to sell the Forum to a company controlled by Spear Street Capital for €30.8m. The price is in-line with the September 2021 carrying value and the transaction is expected to complete in the second quarter of 2022. The Forum is situated on Commons Street in Dublin's International Financial Services Centre ("IFSC") and comprises 47,000sqft of office accommodation over two floors, constructed in 2003, above a four-storey car park with 370 spaces.  The offices, which benefit from the use of 50 car parking spaces, are currently vacant. The remaining 320 car parking spaces are utilised by Park Rite Limited, paying €0.6m per annum, on a lease that expires in mid-2033.


Impact Healthcare REIT (LON:IHR, 122.2p, 112.4p, +8.7%)

Impact Healthcare REIT has invested in two care homes, which were owned and operated by Woodleigh Care whose owners are retiring from the care home business. Both homes will be operated by an existing Group tenant, Welford Healthcare, and are in Mansfield, Nottinghamshire, offering 107 high quality predominantly en-suite beds, located within established residential areas. The homes each have a track record of delivering high quality care with CQC ratings of Good and Outstanding and Welford Healthcare will look to continue the strong operational performance under its stewardship. The consideration is £11.1 million and has been made initially by way of a loan to Welford Healthcare, which will allow it to complete the acquisition of Woodleigh Care immediately. The structure creates several benefits for all stakeholders, including enabling Welford Healthcare to take immediate operational control of the homes, thereby avoiding a potentially lengthy transition period while regulatory approvals are sought to register the operation of the homes in new legal entities, as well as other financial and operational efficiencies.

Impact Healthcare REIT announced its full year results for the 12 months ended 31 December 2021. Key details are: 

  • Contracted annual rent at 31 December 2021 was £38.0 million (2020: £30.9 million). 104 properties had rent reviews during the year, adding £0.7 million to the contracted rent, representing an annualised 2.5% increase on a like-for-like basis;
  • Total accounting return comprised dividends paid in the year of 6.41p per share and NAV growth of 2.85p per share and totalled 8.42%, against a target of 9.0% per annum;
  • The Company declared four quarterly dividends of 1.6025p each in respect of the year, meeting its target for 2021 of 6.41 pence per share:
    • Dividends declared for the year were 126% covered by EPRA EPS and 104% covered by Adjusted EPS.
  • Target dividend for 2022 is 6.54p, representing 2.03% growth;
  • EPS for the year was 9.41 pence (2020: 9.02 pence) and EPRA EPS was 8.05 pence (2020: 7.25 pence). Adjusted EPS, which better reflects underlying cash earnings in the year, was 6.68 pence (2020: 5.98 pence);
  • As at 31 December 2021, the portfolio was valued at £459.4 million, an increase of £40.6 million from the valuation of £418.8 million at 31 December 2020.
  • The NAV at 31 December 2021 was £394.2 million or 112.43 pence per share (31 December 2020: £349.5 million or 109.58 pence per share). NAV growth continued to be driven primarily by rental growth and the benefits of active asset management;
  • This was an important year for the evolution of the Group's debt financing, reflecting the growing maturity of the business:
    • Agreed a new £26 million NatWest facility, with an accordion agreement to extend up to £50 million;
    • Secured the Group's first long-term institutional fixed interest debt of £75 million facility with an average maturity 14 years. This provides an attractive fixed interest rate over the long term in an uncertain inflationary environment;
    • The Group now has £168 million of available debt facilities, as well as the second £38 million tranche of institutional debt, which is committed to be issued in June 2022, and the option to expand the NatWest facility by a further £24 million.


Life Science REIT Plc (LON:LABS, 100.0p, 100.2p, -0.2%)

Life Science REIT, the real estate investment trust focused on UK life science properties, announced its unaudited Net Asset Value as at 31 December 2021 together with an update on its corporate activity. Key details are:

  • Since the Company's IPO on 19 November 2021, the Company has completed five acquisitions, totalling nine individual properties, for a total value of £184.2 million including acquisition costs. The assets, which are all in the life science "Golden Triangle" of Oxford, Cambridge and London, have been acquired at an average net initial yield of 4.9% with the current passing rent (including rent guarantees) being £9.1 million and an average unexpired lease term across the portfolio of 6.4 years.
  • The Company's portfolio has been valued by an independent valuer at £192.2 million as at 31 December 2021. The uplift in the portfolio valuation of £14.5 million over the aggregate acquisition price, is a result of the acquisitions being agreed off-market and in advance of the IPO, further progress with lettings, and some yield shift arising from the strength of investment demand for well positioned, high quality assets in the life science sector.
  • The Company's unaudited NAV at 31 December 2021 was approximately £350.6 million or 100.2 pence per ordinary share.

Life Science REIT also announced that it has agreed a £150 million debt financing facility with HSBC UK Bank PLC, comprising a £75 million 3-year term loan facility and an equally sized revolving credit facility.


LXI REIT Plc (LON:LXI, 148.0p, 139.5p, +6.1%)

LXi REIT announced £73 million of new investments, funded by its recent £250 million equity capital raise. The acquisitions, which have been transacted on an off-market basis, reflect an accretive 5.4% net initial yield (net of purchase costs), versus the current portfolio valuation yield of 4.5%. The assets benefit from strong tenant covenants on long-term, fixed uplift leases and are underpinned by affordable rents. The Company has now fully deployed the net proceeds of the £250 million capital raise, which closed on 9 February 2022, and is in solicitors' hands on a range of further assets to be funded through the Company's debt facilities.


Palace Capital Plc (LON:PCA, 274.0p, 362.0p, -24.3%)

Palace Capital announces that it has completed the sale of Pelham House, Pelham Square, Brighton for £1.6 million. In April 2021, the Company announced a strategic disposal programme, which identified 15 non-core properties for sale, with an aggregate value of at least £30 million. Pelham House is the fourteenth of the 15 properties to be sold and brings the total gross proceeds from the disposal programme to £31.5 million, which is 20% above the aggregate book value of the 14 properties and 12% ahead of the original purchase prices paid plus any capital expenditure. Of the proceeds secured to date, £15.7 million has been allocated towards debt reduction, leaving £15.8 million for redeployment into properties that satisfy the Company's acquisition criteria.


Picton Property Income Plc (LON:PCTN, 98.3p, 112.0p, -12.2%)

Picton provides a portfolio update, ahead of its annual results to be released in May 2022. Key transactions, recently completed include:

  • In Long Acre, Covent Garden, Picton has let a flagship retail unit to an international fashion retailer for 10 years, subject to break.  The rent of £0.5 million per annum is 22% ahead of the March 2021 ERV. The lease starts in May 2022 and the incentive package was less than one year’s rent. This was the Company’s single largest retail void;
  • At Swiftbox, Rugby, Picton has let the unit to a logistics operator for 10 years, subject to break. The lease commenced the day after the existing occupier vacated. The new rent agreed at £0.7 million per annum is 11% ahead of both the previous passing rent and the March 2021 ERV. This was the Company’s largest lease event in the industrial sector, by passing rent, in 2022;
  • At 180 West George Street, Glasgow, Picton has let a floor to an engineering consultancy for 10 years, subject to break.  The rent agreed is £0.2 million per annum, 28% ahead of the March 2021 ERV. There is one remaining floor, which is under offer;
  • At 50 Farringdon Road, London EC1, Picton has extended a lease, due for expiry later this year.  This was the Company’s largest lease event in the office sector, by passing rent in 2022, retaining £0.6 million per annum, which is 2% ahead of the March 2021 ERV. The transaction follows an upgrade of the heating and cooling system last year, transitioning from gas to electric, reducing carbon emissions from the building and upgrading the EPC from a D to a B; 
  • Rent collection for the December quarter now stands above 99%;
  • Proforma occupancy has increased to 92% (December 2021: 91%);
  • Picton has increased and extended one of its long-term debt facilities, in a refinancing transaction that improves the debt maturity profile, provides additional funding and reduces the overall cost of fixed rate debt within the Group. The proceeds will be used to substantially repay the revolving credit facility, which was recently drawn to fund property acquisitions. The remaining proceeds will be used to fund identified acquisitions and capital projects within the portfolio. By repaying the revolving credit facility, this will provide the Group flexibility to use the undrawn funds to take advantage of further growth opportunities when identified, whilst minimising cash drag. Picton will have £65 million available for investment;
  • Overall Group borrowings increase from £196 million to £219 million;
  • The proforma LTV is 22%;
  • The fixed rate facilities have an average maturity profile of ten years; 
  • The weighted average interest rate of the drawn debt will be reduced from 4.0% to 3.7%;
  • The redemption fee to reset the interest to a lower rate on the existing £80 million loan is £4 million;
  • There will be future interest savings of £0.7 million per annum on the £80 million tranche of debt;
  • The proforma December NAV reflecting these changes has reduced by 0.8 pence to 112.0 pence per share.


Primary Health Properties Plc (LON:PHP, 148.3p, 116.7p, +27.1%)

Primary Health Properties, one of the UK's leading investors in modern primary healthcare facilities, announces that it has acquired a newly refurbished clinical facility in Chertsey, Surrey for a total consideration of £6.95 million. The property is let on a new 20-year FRI lease to the Surrey and Borders Partnership NHS Foundation Trust (the "Trust") and benefits from RPI led rent reviews. The Trust will mainly be providing Drug and Alcohol rehabilitation services from the building together with office based administrative functions. This acquisition is accretive to the overall portfolio WAULT and will increase PHP's portfolio to 522 assets, of which 20 are in Ireland, with a contracted rent roll of £141 million.


Real Estate Investors Plc (LON:RLE, 39.5p, 58.8p, -32.8%)

Real Estate Investors, the UK's only Midlands-focused Real Estate Investment Trust (REIT) with a portfolio of 1.5 million sqft of investment property, reported its final results for the year ended 31 December 2021. Key details are:

  • Delivered revenue of £16.0 million (FY 2020: £16.4 million) allowing for disposals;
  • Profit before tax of £13.9 million (FY 2020: loss £20.2 million) including £4.9 million gain on property revaluations, £1.2 million profit on sale of investment property and £1.4 million surplus on hedge valuation;
  • Completed 15 disposals totalling £17.55 million (an aggregate uplift of 7.3% before costs above December 2020 valuation):
    • Disposal proceeds used to pay down £11.9 million of debt in 2021;
    • LTV (net of cash) reduced to 42.2% (FY 2020: 49.2%);
    • £9.8 million cash at bank;
    • Average cost of debt of 3.5% with 90% of debt fixed (as at 1 January 2022).
  • Renewed £51 million facility with NatWest for 3 years at 2.25% above LIBOR in March 2021;
  • Underlying profit before tax of £6.4 million (FY 2020: £8.1 million);
  • EPRA EPS of 3.7p (FY 2020: 4.5p);
  • EPRA Net Tangible Assets ("NTA") per share of 58.8p (FY 2020: 55.2p);
  • Final dividend of 0.8125p per share, payable in April 2022 as a Property Income Distribution;
  • Like-for-like valuation increased by 2.7% to £188.5 million (FY 2020: £183.5 million);
  • Gross property assets of £190.8 million (FY 2020: £201.3 million) with 256 occupiers/47 assets;
  • Near normal rent collection levels for 2021 of 97.81% (2020 Overall collection: 96.35%) and Q1 2022 rent collection to date 99.42% (adjusted for monthly/deferred agreements);
  • Completed 54 lease events during the period;
  • Improved WAULT to 5.03 years to break and 6.76 years to expiry (FY 2020: 4.84 years /6.54 years);
  • Contracted rental income of £14.3 million (FY 2020: £16.7 million) net of disposals;
  • Occupancy levels at 85.75%, further lettings should provide additional valuation gains, as market place normalises post-COVID19;
  • £1.115 million disposals completed since year end at 12.6% above 2020 book value;
  • Barclays £12 million facility extended by 12 months to 31 December 2024 in February 2022.


Regional REIT Plc (LON:RGL, 87.5p, 97.2p, -10.0%)

Regional REIT announced its full year results for the year ended 31 December 2021. Key details are:

  • Strong performance and significant increase in both portfolio valuation and rent roll;
  • Significant portfolio value increase of 23.7% to £906.1m (2020: £732.4m), following the £236m portfolio acquisition August 2021;
  • Valuation per share remains resilient: IFRS NAV per share of 97.4p (2020: 97.5p); EPRA NTA per share of 97.2p (2020: 98.6p);
  • EPRA total return of 41.2% since IPO in November 2015; representing 5.8% annualised returns for shareholders;
  • Total rent collection or within terms for 2021 was 99.2% of rent due, improved against the 95.9% of rent collected for the equivalent period in 2020;
  • Rent roll increased by 12.3% to £72.1m (2020: £64.2m);
  • EPRA EPS of 6.6pps (2020: 6.5pps); IFRS EPS 6.3pps (2020: loss 7.2pps);
  • Net initial yield was 5.6% (2020: 6.9%);
  • 2021 dividend, of 6.50pps (2020: 6.40pps), fully covered by EPRA earnings;
  • Group's cost of debt remained the same at 3.3% (2020: 3.3%);
  • Net LTV of 42.4% (2020: 40.8%);
  • Weighted average debt duration remains robust at 5.5 years (2020: 6.4 years);
  • Rental income generated from a large spread of tenants and industries across a geographically diversified portfolio of 168 properties (2020: 153), 1,511 units (2020: 1,245) and 1,077 occupiers (2020: 898);
  • The Group made disposals amounting to £76.9m (net of costs) during 2021. The proceeds from these disposals were promptly recycled into acquiring higher yielding properties;
  • A significant acquisition was completed in August 2021, when the Group acquired a £236.0m portfolio comprising of predominately office assets, in exchange for the issuance of 84,230,000 of the shares, £76.7m of existing cash resources, and additional borrowings of £76.2m. The acquired portfolio further de-risked the Company's offering increasing diversification by geography, occupier and type of income streams;
  • At the period end, 89.8% (2020: 83.5%) of the portfolio by market value was offices, 5.1% (2020: 11.1%) was industrial, retail 3.7% (2020: 4.1%) and 1.4% (2020: 1.3%) other;
  • Portfolio valuation split by region was:
    • England 75.7% (2020: 78.3%);
    • Scotland 19.0% (2020: 17.3%);
    • Wales 5.3% (2020: 4.4%);
    • In England, the largest regions were the South East, Midlands and the North West.
  • EPRA Occupancy (by ERV) was 81.8% (2020: 89.4%) as expected. EPRA Occupancy has been impacted by the £236.0m (before costs) portfolio acquisition made in Q3 2021. Asset management plans are in place to improve occupancy;
  • Completed 55 new lettings in 2021, totalling 194,716 sq. ft., which when fully occupied will provide a gross rental income of c. £2.5m;
  • Post 31 December 2021, the Company has disposed eight non-core properties for a total consideration of £33.5m, at a 1.3% premium to the 31 December 2021 valuation, with a net initial yield of 5.1% (6.3% excluding vacant properties);
  • The Company declared the Q4 2021 dividend of 1.70pps, which will be paid to shareholders on 8 April 2022.


Residential Secure Income Plc (LON:RESI, 110.0p, 107.9p, +1.9%)

Residential Secure Income, which invests in independent retirement living and shared ownership, has agreed to acquire 182 shared ownership freehold houses for £21m of cash consideration. The diversified portfolio is fully occupied and primarily located in the South East and East of England and has a current annual passing rent of £0.7mn. As such the portfolio will be immediately earnings enhancing from completion (expected on or around 1 April) and will generate an expected inflation-linked leveraged yield in line with the Group’s 8% total return and c. 5% dividend targets.


Safestore Plc (LON:SAFE, 1,340.0p, 596.0p, +124.8%)

Safestore announced that it has acquired the remaining 80% of the equity owned by Carlyle Europe Realty (CER) in the Joint Venture formed in 2019 ("the Joint Venture"). The total consideration paid to Carlyle was €67m. The total initial cash outflow is €139m and includes the share purchase (€67m), refinancing of the existing borrowings (€67m), transfer tax and other deal costs (€5m) and was funded from the Group's existing loan facilities. The Joint Venture was acquired based on an enterprise value of €146m.

The Joint Venture was setup in 2019 to acquire and develop assets in The Netherlands and Belgium in order to leverage Safestore's operating platform outside its core markets. Since then, the Joint Venture has grown to a portfolio of 55,000 sqm of MLA which is currently 74% occupied. The portfolio is made up of fifteen high quality properties (twelve freehold properties, two ground leases and one leasehold property). Nine properties are located in the Netherlands, six of which are concentrated in the Haarlem / Amsterdam area with additional properties in The Hague, Het Gooi and the recently opened Nijmegen store. In Belgium, two stores are located in the Brussels area, two in the city of Liege and further properties in Nivelles and Charleroi. Safestore has managed the properties since acquisition by the Joint Venture.

The Group's investment is expected to be marginally accretive to Group earnings per share in FY2021/22 and will support the Group's future dividend capacity. The expected initial yield based on total enterprise value is 3.9%, which is expected to grow to Safestore's normal returns as the portfolio matures. Post transaction, the Group's LTV will increase to 31%. Financing capacity under RCF and Shelf facilities, combined with cash reserves, is expected to be c. £219m following this transaction.


Schroder Real Estate Investment Trust Plc (LON:SERE, 115.0p, 150.4p, -23.5%)

Schroder European Real Estate Investment Trust provided a business update and announced its unaudited net asset value as at 31 December 2021. Key details are:

  • Unaudited NAV as at 31 December 2021 increased by 0.8% to €201.2 million or 150.4 cents per share;
  • NAV total return amounted to 2.1% over the quarter and 4.5% for the twelve months to 31 December 2021;
  • A first interim dividend of 1.85 euro cents per share to be paid for the year ending 30 September 2022;
  • Property portfolio is independently valued at €221.4 million, reflecting a like-for-like increase of the directly held properties over the quarter of 2.2%, or €4.4 million;
  • Key portfolio level initiatives during the period included:
    • The strategic purchase of a 3,800sqm industrial warehouse in Venray, the Netherlands, increasing the portfolio's industrial weighting to c. 23%;
    • The Paris Boulogne-Billancourt refurbishment remains on budget from both a cost and timing perspective. The remaining 40% (c. €40 million) of the sale price is due to be received during 2022, with the proceeds partially used to fund the remaining c. €16 million refurbishment cost;
    • Rent collection during the quarter, and January and February 2022, of 96%.
  • The Company has an investable cash balance of approximately €30 million and a loan to value ratio on the total portfolio of approximately 18% net of cash and 28% gross of cash;
  • The Company continues to pay a full dividend equating to the pre-covid dividend level;
  • Approximately 96% of the rent due for the quarter ended 31 December 2021 has been collected which is ahead of the average amount collected in the previous financial year of 93%. As at 8 March 2022, 96% of the rent due for January 2022 and February 2022 has been collected;
  • As at 31 December 2021, the property portfolio was independently valued at €221.4 million, reflecting a NIY of 5.8%.


Secure Income REIT Plc (LON:SIR, 452.5p, 424.1p, +6.7%)

Secure Income REIT announced its results for the year ended 31 December 2021. Key details are:

  • 11.8% uplift in EPRA NTA per share to 424.1 pence per share;
  • Investment property valuation up 9.3% over the year and up 7.1% since 30 June 2021:
    • Net Initial Yield of 5.1%, down from 5.4% at 31 December 2020;
    • Rent reviews in the year on 77% of the portfolio resulted in a like for like rental increase of 3.1%;
    • Weighted Average Unexpired Lease Term increased by some 50% over the year to 30.0 years following the regearing of the Merlin leases.
  • Merlin leases extended and enhanced in December 2021:
    • Leases have been extended by 35 years to a 55.5 year term without break;
    • Rent reviews on UK assets Alton Towers, Thorpe Park and Warwick Castle modified to CPI + 0.5% per annum with 1% minimum and 4% maximum uplifts;
    • Rental uplifts on German assets remain at 3.34% per annum throughout the extended term;
    • £33.5 million premium recouped through valuation uplift;
    • Enhancements to leases including formalisation of the existing close working relationship on ESG matters.
  • Merlin leisure facility refinanced in March 2022, post year end:
    • £282.5 million committed credit facility signed with drawdown scheduled for April 2022 subject only to conventional conditions precedent;
    • Risk management through non-recourse structure, no LTV default provision and low 100% interest cover requirement;
    • Four year term certain with one year extension option;
    • Lower borrowing level through accretive deployment of surplus cash and 15% reduction in cost of debt provides platform for targeted dividend increase from July 2022.
  • 400% increase in Adjusted EPRA EPS to 17.5p per share:
    • Like for like earnings have increased by 10% as rents have returned to their pre-pandemic course following expiry of all temporary rent reductions.
  • Shareholder returns have rebounded:
    • Total Accounting Return of 15.8% in the year;
    • Total Shareholder Returns:
      • 46.7% over the year;
      • 15.3% pa from listing to 8 March 2022.
  • Net LTV reduced to 33.8%, down from 36.4% at 31 December 2020; 
  • EPRA Cost Ratio of 12.6% among the lowest in the UK REIT sector.


SEGRO Plc (LON:SGRO, 1,345.5p, 1,137.0p, +18.3%)

SEGRO announces the launch and pricing of its debut issuance from its recently announced European Medium-Term Note programme. The €1.15 billion senior unsecured Green Bond issue is split into two tranches:

  • €650 million with a four-year term, priced at 70 basis points above euro mid-swaps with an annual coupon of 1.250 per cent; and
  • €500 million with an eight-year term priced at 110 basis points above euro mid-swaps with an annual coupon of 1.875 per cent.

The bond issuance was six times oversubscribed. The proceeds of the issue will principally be used to finance and/or refinance Eligible Green Projects as outlined in the SEGRO Green Finance Framework, including the continued development programme, as well as providing funding for general corporate purposes.


Supermarket Income REIT Plc (LON:SUPR, 126.5p, 113.0p, +11.9%)

Supermarket Income REIT reported its interim results for the Group for the six months ended 31 December 2021. Key details are:

  • 48% Total Shareholder Return since the initial listing in July 2017;
  • On track to deliver full-year 2022 target dividend of 5.94 pence per share;
  • Direct Portfolio independently valued at £1,413.5 million, increasing by £265.1 million for the Period following valuation growth of £21.7 million and new acquisitions of £243.4 million:
    • 2% valuation growth on a like-for-like basis for the Period;
    • Direct Portfolio net initial yield ("NIY") of 4.7%;
    • Direct Portfolio weighted unexpired lease term ("WAULT") of 15 years.
  • Annualised passing rent increased by 52% to £70.2 million following rent reviews and new acquisitions during the Period;
  • Value of investment in the Sainsbury's Reversion Portfolio increased by £37.2 million to £167.5 million, following the exercise of purchase options by Sainsbury's;
  • EPRA NTA per share increased by 5 pence in the Period to 113 pence as at 31 December 2021;
  • Further portfolio growth through the deployment of £200.0 million of equity raised via an upsized and over-subscribed Placing and Offer for Subscription in October 2021;
  • Acquisition of eight omnichannel supermarkets at an aggregate purchase price of £243.4 million:
    • New acquisitions weighted average NIY of 4.5%;
    • New acquisitions WAULT of 16 years.
  • Seven rent reviews, adding £0.9 million annualised rental income, and a lease regear completed;
  • Sainsbury's exercised its first option to acquire 13 supermarkets in the Sainsbury's Reversion Portfolio;
  • Fitch Ratings Limited ("Fitch") Investment Grade credit rating of BBB+ assigned to the Group; 
  • Purchase of three omnichannel supermarkets for £128.3 million:
    • New acquisitions weighted average NIY of 4.8%;
    • New acquisitions WAULT of 19 years.
  • Sainsbury's exercised its second option to acquire eight further stores in the Sainsbury's Reversion Portfolio, acquiring in total 21 of 26 stores upon current lease expiry in mid-2023.


Target Healthcare REIT Plc (LON:THRL, 112.2p, 110.8p, +1.3%)

Target Healthcare REIT, the UK listed specialist investor in modern, purpose-built care homes, announced its results for the six months ended 31 December 2021. Key details are:

  • Significant portfolio growth, driven by new investment and development commitments of £191 million, including an 18-home portfolio acquisition, the Group's largest to date, which added stable assets with a mature trading history and annual rental income of £9.3 million;
  • Enhanced balance sheet stability and flexibility from new, long-term capital, with £100 million of additional long-term debt secured at attractive fixed interest rate and a £125 million oversubscribed equity issuance in September 2021;
  • Resilient portfolio performance with robust rent collection, and like-for-like rental and valuation growth;
  • Portfolio market value increased by £186 million, or 27.1%, to £870.5 million (June 2021: £684.8 million), primarily driven by £171 million of acquisitions and development activity; like for like portfolio valuation uplift of 2.2%;
  • Contractual rent increased by 29.6% to £53.4 million (June 2021: £41.2 million), including like for like rental growth of 2.8%;
  • Growing and diversified tenant base, increasing to 31 (June 2021: 28 tenants);
  • Weighted average unexpired lease term of 27.5 years (June 2021: 28.8 years);
  • EPRA NTA per share increased by 0.4% to 110.8 pence (June 2021: 110.4 pence);
  • NAV total return of 3.4% (2020: 3.3%);
  • Portfolio total return of 4.8% (2020: 4.1%);
  • Rent collection of 96%;
  • 96% of leases benefit from upwards only inflation-linked rent reviews; 4% fixed uplifts;
  • Weighted average cost of drawn debt at 3.1% (June 2021: 2.9%), with average term to maturity significantly increasing to 7.4 years (June 2021: 4.8 years);
  • Net LTV increased to 20.7% (June 2021: 15.9%);
  • Dividends increased by 0.6% to 3.38 pence (2020: 3.36 pence);
  • Selective investment into new developments of new-build care homes; two homes (134 beds) opened in the period, and four homes (270 beds) being funded at period end;
  • EPC ratings: 100% A-C ratings, with 88% A or B ratings.


The PRS REIT Plc (LON:PRSR, 107.5p, 99.0p, +8.6%)

The PRS REIT reported final results. Highlights include:

  • Strong performance from completed assets:
    • Continued high demand for homes, with 99% of homes occupied or reserved;
    • Extremely strong rent collection relative to rent invoiced at 99%, with arrears remaining at c. 1% of annualised ERV despite a significant increase in rent roll;
    • Net rental income up 95% to £16.4m (2020: £8.4m);
    • Like-for-like rental growth for H1 was 2.4%.
  • Portfolio target has increased to c.5,700 homes with an ERV of c.£55m per annum following a c.£55.6m equity placing in September 2021:
    • Proceeds of placing fully committed by December 2021.
  • Continued progress in delivery, against challenges of coronavirus and supply chain disruption:
    • 505 new homes added in H1, taking portfolio to 4,489 completed homes, with an ERV of £43.5m p.a., and a further 949 homes under way;
    • three development sites and one fully-completed and let site acquired in H1;
    • two additional development sites expected to be acquired in H2;
    • Total dividends per share declared in H1, 2.0p (2020: 2.0p);
    • Minimum dividend target of 4.0p* per share for the financial year.
  • As at 11 March 2022, an additional 72 homes have been added to the portfolio, taking it to 4,561 completed homes, with an ERV of £44.8m pa and a further 877 were under way;
  • Rental demand remains very strong, underpinned by nationwide undersupply of quality rental housing for families, and will support prospects for further rental growth.


The Unite Group Plc (LON:UTG, 1,158.0p, 880.0p, +31.6%)

The Unite Group, the UK's leading owner, manager and developer of student accommodation, announced the disposal of a portfolio of 11 properties, comprising 4,488 beds for £306 million to an affiliate of Lone Star Funds.


Triple Point Social Housing REIT Plc (LON:SOHO, 93.7p, 108.3p, -13.5%)

Triple Point Social Housing REIT announced its audited results for the year ended 31 December 2021. Key details are:

  • EPRA Net Tangible Assets per share of 108.27 pence as at 31 December 2021 (2020: 106.42 pence), an increase of 1.7%;
  • Portfolio independently valued as at 31 December 2021 at £642.0 million on an IFRS basis (2020: £571.5 million), reflecting a valuation uplift of 8.7% against total invested funds of £590.4 million;
  • The portfolio's total annualised rental income was £35.8 million as at 31 December 2021 (2020: £31.6 million);
  • Operating profit for the year ended 31 December 2021 was £35.2 million (2020: £30.2 million);
  • Ongoing Charges Ratio of 1.54% as at 31 December 2021 (2020: 1.57%);
  • The Company has paid dividends totalling 5.20 pence per Ordinary Share in respect of the year ended 31 December 2021, in line with the Company's target for the year;
  • In August 2021, the Group refinanced all of its £130.0m of drawn floating-rate debt and put in place £195.0 million of long dated, fixed rate, interest only sustainability-linked loan notes through a private placement with MetLife Investment Management clients and Barings. The Company was assigned an Investment Grade Long-Term Issuer Default Rating of 'A-' with a stable outlook, and a senior secured rating of 'A' for the new loan notes.
  • Acquired 44 properties (345 units) during the year for a total of £60.0 million (including costs) bringing the total investment portfolio to 488 properties;
  • IFRS blended net initial yield of 5.25% based on the value of the portfolio on an IFRS basis as at 31 December 2021, against the portfolio's blended net initial yield on purchase of 5.90%;
  • As at 31 December 2021, the weighted average unexpired lease term ("WAULT") was 26.2 years;
  • 100% of contracted rental income was either CPI or RPI linked;
  • The Company acquired a further eight properties comprising 57 units in total for an aggregate consideration of approximately £10.0 million (including costs).
Tritax Big Box REIT Plc (LON:BBOX, 241.8p, 194.2p, +24.5%)

Tritax Big Box REIT reports its results for the 12 months to 31 December 2021. Key details are:

  • Adjusted EPS up 14.8% to 8.23p (2020: 7.17p) driven by development completions, portfolio rental growth and higher development management agreement (DMA) income;
  • Strong market take-up of 42.4 million sqft in 2021 (2020: 43.0 million sqft), 64% higher than the annual average since 2010;
  • Limited supply response has led to record low 1.6% market vacancy (2020: 4.1% vacancy) and strong rental growth;
  • Sustainability initiatives improving environmental, social and governance (ESG) ratings;
  • 24.3% increase in portfolio value to £5.48 billion (31 December 2020: £4.41 billion) from development gains, asset management activity and strong market conditions, including a capital valuation surplus of 19.1%;
  • 100% rent collection achieved for both 2020 and 2021, WAULT of 13.0 years as at 31 December 2021 (31 December 2020: 13.8 years). 0% vacancy (2020: 0%);
  • £15.0 million increase in contracted rent roll to £195.6 million, including £5.0 million generated from rent reviews achieving an 8.7% increase in passing rent across 32% of the portfolio, translating into EPRA like-for-like rental growth of 3.3% for the year;
  • Like-for-like ERV growth of 7.5% over the year, with an 11.0% portfolio rental reversion at the year-end;
  • Acquired a 0.9 million sqft facility in South West England, for £90 million at a net initial yield of 5.1%, securing long-term income and value creation opportunities;
  • Progressing assets disposals with target to dispose of £100-200 million in 2022;
  • Development achievements during FY 2021 include:
    • 3.7 million sqft of lease completions adding £24.0 million to contracted rent;
    • 1.3 million sqft of developments under construction, with the potential to add a further £10.2 million to contracted rent, of which 21% has been let;
    • 3.0 million sqft of new planning consents secured. 
  • Strong start to FY 2022 with 1.8 million sqft of near-term development starts in Q1 2022, adding a potential £13.1 million of contracted rent, of which 56% has been pre-let;
  • Total near-term development pipeline of 8.8 million sqft with £60-70 million of rent potential;
  • Significant capacity to fund opportunities through balance sheet strength and potential asset disposals.


Tritax EuroBox Plc (LON:EBOX, 105.6p, 135.0p, -21.8%)

Tritax EuroBox which invests in high-quality, prime logistics real estate strategically located across continental Europe, announced that it entered into a conditional agreement with a subsidiary of Dietz AG  for the speculative forward funding acquisition of a €76.41 million logistics asset in the Düsseldorf region of Germany. The asset, currently being constructed by the Company's development partner Dietz Aktiengesellschaft ("Dietz AG"), is held freehold and once built will comprise three adjacent units with a total gross internal area of approximately 36,437 square metres. The three units offer flexible leasing options either to be let to multiple tenants or a single tenant. The asset benefits from an eighteen-month rental guarantee from the Dietz Seller at a rent reflecting €5.60 per square metre per month for warehouse space. The acquisition price of €76.4 million reflects a net initial yield of 3.3% based on the rental guarantee income. Market rental levels in this location are expected to exceed €6.00 per square metre per month for warehouse space.


Urban Logistics REIT Plc (LON:SHED, 190.5p, 164.3p, +15.9%)

Urban Logistics, the last mile logistics focussed REIT, has acquired approximately £72 million of income producing assets at a blended NIY of 4.6%, with significant asset management potential.
Key points:

  • £72 million of logistics assets acquired since the February 2022 trading update at a blended NIY of 4.6%;
  • 4 transactions completed, including its first central London property, purchased for £28 million at a NIY of 4.2%, and other assets strategically located in existing and emerging logistics hubs across the UK;
  • All transactions are income producing immediately, and benefit from strong covenants;
  • In aggregate £140 million of capital has been deployed or committed since the December 2021 fund raise, at a blended NIY of 5.0%.


Warehouse REIT Plc (LON:WHR, 173.6p, 152.4p, +13.9%)

Warehouse REIT, the AIM-listed company that invests in e-commerce urban and last-mile industrial warehouse assets in the UK, announced that it exchanged contracts to acquire, via a forward funding agreement, a 170,000 sqft multi-let industrial development in Thame, Oxfordshire. The total commitment is £35 million. A partnership between W Lamb Ltd, Blakelands and Westhall Estates will be responsible for delivering the scheme under a fixed price turn-key contract. The Scheme has just secured detailed planning permission and is scheduled to practically complete in December 2022.  A 12-month rent guarantee has been agreed with the vendor and would show a running yield in excess of 4.6% based on the fixed total price of £35 million.


Workspace Group Plc (LON:WKP, 685.0p, 928.0p, -26.2%)

Workspace Group announced the simultaneous exchange and completion on the disposal of Highway Business Park in Limehouse, E14, and an adjoining property owned by Canada Life Investments. Highway Business Park comprises 20,000 sqft of light industrial space and Workspace will receive £23.7m for its share of the sale, a significant premium to the 30 September 2021 valuation of £11.6m.



Data sourced through the London Stock Exchange and RNS announcements.