REIT News - June 2021

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The month of May was characterised by mid-year and full-year financial and operating updates. Whilst overall the retail property sector continues to struggle, this decline is slowing for retail parks. The evidence - British Land announced its retail portfolio value was down 24.7% although the rate decline slowed for retail parks. Reinforcing this trend, AEW UK REIT has announced that it has acquired the 5.65 acre Arrow Point Retail Park in Shrewsbury for a purchase price of £8.35m. Warehousing continues to be a theme of strong activity. LondonMetric Property has announced the acquisition of an urban logistics warehouse in Waltham Cross for £43.8m through a sale and lease back transaction. Similarly, British Land concluded its first urban logistics acquisition: a 216,000sf warehouse in Enfield with development potential, acquired for £87m. 

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

AEW UK REIT Plc (LON:AEWU, 94.7p, 99.2p, -4.5%)

AEW UK REIT announced that it has acquired the 5.65 acre Arrow Point Retail Park in Shrewsbury for a purchase price of £8.35m. The established retail park is located on a busy commercial estate and is fully let. The purchase price reflects a low capital value of £88psf (£1.48m per acre). The estate provides a NIY of 8.7%. Arrow Point Retail Park comprises a modern purpose-built retail park constructed in 2007, arranged across nine units in two terraces with 176 car parking spaces to the front. The retail park is prominently located within the main retail warehouse provision of Shrewsbury, approximately 2.5 miles north east of the town centre, tenants include British Heart Foundation, Poundstretcher and Charlie's Stores and neighbours retail occupiers including Matalan and B&M Home Store.

Alternative Income REIT Plc (LON:AIRE, 72.0p, 85.1p, -15.4%)

Alternative Income REIT issued a trading and business update for the quarter ended 31 March 2021. Key details are:

  • Current quarter's rents are split 80% quarterly pay and 20% monthly pay - to date collected 87.9% of this quarter's rent with 10.3% contractually due during the remainder of the quarter. The remaining 1.8% of this quarter's rent due is subject to concessions, which are in the process of being formalised;
  • Since the start of the pandemic, collected 97.2% of rent due (with deferment agreed in respect of the 2.8% outstanding);
  • Property portfolio valued at £108.73m (31 December 2020: £108.53m);
  •  NIY of 5.94% (31 December 2020: 5.53%);
  • NAV was £68.53m, 85.13p per share (31 December 2020: £68.16m, 84.68p).
Assura Plc (LON:AGR, 74.4p, 57.2p, +30.1%)

Assura announced full year results to 31 March 2021. Key details are:

  • Passing rent roll up 12% to £121.7m (31 March 2020: £108.9m);
  • WAULT increased to 11.9 years (31 March 2020: 11.7 years);
  • PBT up 37% to £108.3m (FY 2020: £78.9m);
  • Portfolio increased 15% to £2.453m (31 March 2020: £2.139m);
  • Portfolio NIY at 4.58% (31 March 2020: 4.68%);
  • Rent collections continue to be in line with normal patterns;
  • Gross debt of £957m on a fully unsecured basis;
  • Undrawn facilities of £225m and cash of £46.6m;
  • Issued 10-year £300m Social Bond with coupon of 1.5% in September 2020;
  • Gross proceeds of £185 m from equity raise in April 2020;
  • LTV of 37% and weighted average interest rate of 2.47%.
Big Yellow Group Plc (LON:BYG, 1,308.0p, 889.2p, +47.1%)

Big Yellow Group announced full year results to 31 March 2021. Key details are:

  • Store revenue for the fourth quarter was £33.8m, an increase of 9.7% from £30.8m for the same quarter last year;
  • Average net achieved rent psf up 1.1% year-on-year;
  • Like-for-like closing store occupancy 87.4% (31 March 2020: 80.7%);
  • Cash flow from operating activities increased by 4.2% to £76.7m;
  • Adjusted PBT up 5.1% to £74.6m;
  • Statutory profit before tax of £265.8m, up 185% from prior year due to higher revaluation gain on investment properties;
  • Three new stores opened in the year in Camberwell (London), Bracknell and Battersea (London);
  • Placing in April 2020 raising £79.9m (net of expenses) to grow development pipeline;
  • Acquisition of four new development sites in Wapping, Staines, Epsom, and Kentish Town (all London) with a total estimated self storage development cost of £106m - acquisitions take the pipeline to 14 sites totalling approximately 1.0m sf (20% of current MLA);
  • Planning consent secured on five proposed stores in year, eight in total now have planning.
BMO Commercial Property Trust Limited (LON:BCPT, 88.7p, 119.5p, -25.8%)

BMO Commercial Property Trust has announced the disposal of a solus retail warehouse located in East Kilbride, Scotland for a total consideration of £19m, reflecting an increase of 7.2% over the last external valuation of 31 March 2021. The property is let to B&Q Limited for one of its large format stores on a lease due to expire in November 2029.

British Land Plc (LON:BLND, 510.0p, 648.0p, -21.3%)

The British Land announced full year results to 31 March 2021. Key details are:

  • Underlying profit down 34.3% primarily reflecting an increase in provisions for rent receivables;
  • 83% of FY 2021 rent collected. 99% Offices; 71% Retail;
  • Portfolio value down 10.8%; Offices down 3.8%, with moderate decline of 0.8% in the second half; Retail down 24.7% with the rate of decline slowing in Retail Parks; Developments broadly flat;
  • EPRA NTA down 16.3% to 648p;
  • £556m retail assets sold since April 2020, 7.0% ahead of book value;
  • £643m of standalone offices sold, 5.2% ahead of book value;
  • £1.8bn undrawn facilities and cash with no requirement to refinance until early 2025;
  • LTV at 32%; 46% headroom to Group debt covenants;
  • 168,000sf of office deals greater than one year; lettings and renewals on the standing portfolio 2.3% ahead of ERV; occupancy at 94%;
  • Total office lettings and renewals at 395,000sf; further 161,000sf deals agreed post period end; total leasing since 1 April 2020 of 556,000sf;
  • Storey operational across 348,000sf; launched at 100 Liverpool Street;
  • Commitment to develop 882,000sf across 1 Broadgate and Norton Folgate;
  • 962,000sf of retail deals greater than one year; 19% below previous passing rent; occupancy at 94%;
  • 37,000sf of short and temporary retail deals, bringing total leasing to 1.7m sf;
  • 583,000sf under offer, 5.8% below March 2021 ERV and 29% below passing rent;
  • First urban logistics acquisition: 216,000sf warehouse in Enfield with development potential, acquired for £87m;
  • £1.2bn assets sold, including £556m retail sales and £643m offices sales;
  • £1.6bn financing, including facility extensions and new loans.
Civitas Social Housing Plc (LON:CSH, 118.4p, 108.3p, +9.3%)

Civitas Social Housing announced its NAV at 31 March 2021. Key details are:

  • Annualised rent roll £50.4m (31 March 2020: £48.4m);
  • IFRS NAV per share of 108.30p (31 March 2020: 107.87p);
  • Rents received as expected with no COVID-19 impact;
  • Investment Grade Credit Rating obtained from Fitch ("A"/ "A-" Secured/Unsecured) - New M&G debt facility terms agreed and drawn.

Civitas Social Housing also announced that it has completed the acquisition of ten supported living properties across Hertfordshire, Essex, Suffolk and Wales for a total consideration of £8.6m (excluding purchase costs). The portfolio provides adapted homes along with personalised specialist care for 41 individuals with complex mental health care needs, administered by three care providers which already work across other properties within the Civitas portfolio. The properties are leased to Inclusion Housing Community Interest Company, with rents adjusted annually in line with CPI over the full-term and are subject to a lower limit of inflation of 0% per annum and a maximum indexation of 4% per annum. Additionally, Inclusion is a counterparty to existing leases within the Company's portfolio.

Custodian REIT Plc (LON:CREI, 97.0p, 97.6p, -0.6%)

Custodian REIT announced its NAV at 31 March 2021. Key details are:

  • 90% of rent collected in Q1 2021, adjusted for contractual rent deferrals, resulting in 91% of rent having been collected for the year ended 31 March 2021, adjusted for contractual rent deferrals;
  • EPRA EPS for FY 2021 of 5.6p (FY 2020: 7.0p) due to prudent assumptions regarding the collection of deferred and overdue rent and a 5.0% decrease in the annual rent roll;
  • Property portfolio value of £551.9m (31 December 2020: £546.8m);
  • £3.6m aggregate valuation increase for Q1 2021, comprising £2.6m increases from asset management initiatives (0.5% of property portfolio), £5.2m general valuation increases in the industrial sector, partially offset by other aggregate decreases of £4.2m primarily in retail and office sectors;
  • Disposal of a high street retail unit at valuation for £0.3m;
  • NAV per share of 97.6p (31 December 2020: 96.4p);
  • NAV of £409.9m (31 December 2020: £405.0m);
  • NAV total return per share for FY 2021 of 0.9% (2020: 1.1%), comprising 5.1% of income (2020: 6.2%) and a 4.2% capital decrease (2020: 5.1%);
  • Net gearing of 24.9% LTV (31 December 2020: 24.0%);
  • EPRA occupancy at 91.5% (31 December 2020: 92.3%).

Custodian REIT also announced that it has sold a retail unit in Nottingham at auction for £0.7m, in line with the most recent valuation. A lease renewal had recently been completed with The White Company on a five-year lease with 2.5 year tenant only break option with annual rent decreasing from £140k to £65k. The disposal has reduced the Company's high street retail sector weighting by income from 10% to 9%.

Derwent London Plc (LON:DLN, 3,469.5p, 3,812.0p, -9.0%)

Derwent London issued a Q1 update. Key details are:

  • £1.3m of new lettings achieved year to date, together with another £4.3m under offer;
  • 93% of March 2021 quarter day rent collected, up from 87% on 13 April with another 4% expected later in the quarter;
  • 95% of office rents collected with a further 4% expected later in the quarter;
  • Vacancy rate of 2.3%, up from 1.8% in December 2020;
  • Soho Place W1: 285,000sf - 87% pre-let or forward sold;
  • The Featherstone Building EC1: 125,000sf;
  • Currently procuring the main contractor at 19-35 Baker Street W1, a 297,000sf scheme, with demolition to start in H2 2021;
  • Planning decisions expected in June 2021 on Network Building W1 for up to 130,000sf;
  • Creating future potential at Holford Works WC1 after acquisition of long leasehold interest for £22.6m before costs where we already own the freehold;
  • LTV 16.0%;
  • Undrawn facilities and cash £621m.
GCP Student Living Plc (LON:DIGS, 172.6p, 179.1p, -3.6%)

GCP Student Living has announced its EPRA NTA at 31 March 2021. Key details are:

  • Portfolio value of £1.06bn;
  • EPRA NTA (cum-income) up 4.5% to 179.07p (31 December 2020: 171.38p);
  • EPRA NTA (ex-income) up 4.5% to 178.82p (31 December 2020: 171.13p);
  • Temporary adjustment to the assumed level of income generated by the portfolio as a result of Covid-19 of £25.4m (5.6p per share);
  • Bookings across the portfolio for the 2020/21 academic year have remained at 68%;
  • Approximately 71% of booked rooms are currently occupied and/or subject to nominations agreements, showing a slight improvement in physical occupancy to the 64% reported in March 2021;
  • Bookings for the 2021/22 academic year are currently at 26%;
  • Cash resources of c.£45.8m and a redrawable credit facility of which c.£12 million was available to be drawn at that date;
  • LTV at 23%.
Ediston Property Investment Company Plc (LON:EPIC, 69.0p, 84.3p, -18.1%)

Ediston Property Investment Company announced half-year results to 31 March 2021. Key details are:

  • EPRA NAV per share of 84.26p (31 March 2020: 86.01p);
  • NAV total return of 0.3% (31 March 2020: minus 16.6%);
  • EPRA vacancy rate of 5.6% (31 March 2020: 5.1%);
  • 95.7% of the rent due was collected for the period.
Great Portland Estates Plc (LON:GPOR, 721.0p, 779.0p, -7.4%)

Great Portland Estates announced full year results to 31 March 20211. Key details are:

  • Portfolio valuation of £2.5bn, down 8.7%2 (-1.7% offices and -27.3% retail);
  • Rental values down by 4.0% (+0.5% offices and -16.7% retail); yield expansion of 11 bps;
  • Total property return of -5.9%, with capital return of -8.4%;
  • Office rental value guidance range for new financial year at 5% to -2.5% (retail: - 5% to -10%);
  • IFRS NAV and EPRA NTA per share of 779 p, down 10.3% in last 12 months;
  • After revaluation deficit, IFRS loss after tax of £201.9m (FY 2020: £51.8 m profit);
  • £12.9m p.a. let, market lettings 2.4% above March 2020 ERV;
  • Flex space now c.13% of office portfolio, appraising further 134,100sf;
  • Underlying vacancy rate of 6.6%; average office rent of £56.70psf; 7.8% reversionary;
  • Total potential rent roll growth of 104% to £194m;
  • £8.0m of lettings since 1 April, 13.9% above March 2021 ERV;
  • c.£40m of new annual rent in negotiation;
  • 85% of March rent collected (82% excluding deposits; 91% from office units; 59% from RHL sectors);
  • 87% of rent for the year to 31 March 2021 now collected (79% excluding deposits); - Property LTV of 18.4%, weighted average interest rate and maturity of 2.5% and 8.1 years;
  • Enhanced debt profile with £150m USPP; average coupon and term of 2.77% and 14.5 years;
  • £400m of ESG-Linked RCF extended to 2026; strong outperformance against ESG targets;
  • Prospective capex of c.£900m (incl. refurbishments); reviewing £1.7bn of acquisitions and £0.4bn of sales; financial discipline to be maintained.
Impact Healthcare REIT Plc (LON:IHR, 111.0p, 110.5p, +0.5%)

Impact Healthcare REIT issued a business and trading update for the quarter to 31 March 2021. Key details are:

  • NAV at 31 March 2021 of £352.4m, 110.48p per share (31 December 2020: £349.5m, 109.58p per share);
  • NAV total return for the quarter was 2.3%;
  • Portfolio valued at £427.0m (31 December 2020: £418.8m);
  • Net valuation uplifts of £2.8m or 0.7% on a like-for-like basis;
  • Continued to receive 100% of rent payments as they fall due;
  • 69 rent reviews contributed a £328,000 increase to contracted rent;
  • Contracted rent increased to £31.7m (31 December 2020: £30.9m);
  • WAULT of 19.8 years;
  • LTV of 21.3% following the Group's drawdown of £20m to fund the acquisition in the quarter and maintain cash reserves, which stood at £24.1m at the quarter end.
Land Securities Plc (LON:LAND, 703.2p, 985.0p, -28.6%)

Land Securities Group announced full year results to 31 March 2021. Key details are:

  • Revenue profit down 39.4% to £251m;
  • Loss before tax of £1.393m (FY 2020: loss of £837m);
  • Combined Portfolio valued at £10.8bn, with a valuation deficit of £1,646m or 13.7%;
  • EPRA NTA per share down 17.4% to 985p;
  • Ungeared total property return of minus 9.6%;
  • Total business return of minus 15.9%;
  • Like-for-like net rental income, down £165m or 30.4%;
  • Group LTV ratio at 32.2% (31 March 2020: 30.7%);
  • Adjusted net debt of £3.5bn (31 March 2020: £3.9bn);
  • Weighted average cost of debt at 2.2% (31 March 2020: 1.8%);
  • Weighted average maturity of debt at 11.5 years (31 March 2020: 9.6 years);
  • Cash and available facilities of £1.6bn.
LXI REIT Plc (LON:LXI, 137.8p, 125.7p, +9.6%)

LXi REIT has announced the acquisition of an Aldi foodstore and a Dobbies garden centre for a total cost of £24m. The acquisitions benefit from an accretive average NIY of 5.45% (net of acquisition costs), with an average unexpired lease term to first break of 29 years. The properties are  let on sustainable, low rents, and 100% of the income is index-linked to RPI inflation through contractual rental uplifts. 

LXi REIT also announced it has exchanged contracts on the forward funding acquisition of a portfolio of Costa drive-thrus and an industrial asset for a total cost of £36m, fully deploying the balance of the Company's £125m equity capital raise of 11 March 2021. The acquisitions benefit from a long average unexpired lease term to first break of 22 years, an accretive average NIY of 5.25% (net of acquisition costs), are let to strong tenant covenants on sustainable rents, and 100% of the income is index-linked to RPI inflation through contractual rental uplifts.

LXi REIT announced full year results to 31 March 2021. Key details are:

  • EPRA NTA per share up 1.1% to 125.7p (31 March 2020: 124.3p);
  • Total NAV return of 5.6% (2020: 13.4%);
  • Portfolio valuation up 0.2% to £938.4m (31 March 2020: £914.0m);
  • LTV of 23% (31 March 2020: 20%);
  • Total expense ratio of 0.9% (2020: 1.1%);
  • Rental income up 11.2% to £42.8m (FY 2020: £38.5m);
  • Operating profit before fair value changes up 15.7% to £36.9m (FY 2020: £31.9m);
  • Total assets up 18.8% to £990.1m (31 March 2020: £833.7m);
  • Net assets p 20.6% to £781.4m (31 March 2020: £648.0m);
  • NAV per share up 1.1% to 125.7p (31 March 2020: 124.3p).
LondonMetric Property Plc (LON:LMP, 234.8p, 190.3p, +23.4%)

Further to its announcement on 25 March 2021 that it had priced a £380m private debt placement, LondonMetric Property has announced the completion of the placement which has a blended maturity of 11.1 years and a blended coupon of 2.27%. Simultaneously with the completion, the Company has completed two new RCFs totalling £400m. They comprise:

  • £175m facility for a five-year term with two plus one-year options with Wells Fargo;
  • £225m facility for a three-year term with two plus one year options with NatWest, Barclays, HSBC and Santander.

Taken together with the placement, the Company has completed £780m of new debt, replacing the existing £444m RCF due to mature in April 2022 and two bilateral loans with Wells Fargo of £75m and HSBC of £75m. The Company will also repay its £130m secured debt facility with Helaba. Overall, the refinancings increase the Company's loan maturity by 4 years to 8.2 years and the average cost of debt on a drawn basis will be 2.6% (31 March 2020: 2.9%).

LondonMetric Property announced the acquisition of an urban logistics warehouse in Waltham Cross for £43.8m through a sale and lease back transaction. The 115,000sf warehouse is let to Reynolds, a national foodservice business, on a new 23 year lease with the benefit of CPI+1 linked rent reviews of between 2-4%. The building is located in an established logistics area of Enfield adjacent to the M25, less than a five minute drive from Junction 25. It occupies a 5.6 acre site and has a site cover of 41%, which is low for a London location. The property generates a rent of £1.6m pa which is just under 10% below market rent. There are no lease incentives as part of the sale and leaseback and the contractual rent reviews will increase the purchase net initial yield from 3.5% to an expected 4.0% after five years.

LondonMetric Property also announced the acquisition of two vacant London warehouse assets in Brent Cross and Streatham for a combined purchase price of £13.5m. The Company has agreed a new 20-year lease with Jacuna Kitchens across c.75% of the combined space. Jacuna will operate c.100 dark kitchens across both locations and LondonMetric will refurbish and upgrade the warehouses to provide enhanced power, ventilation and drainage to the buildings. Letting of the remaining space is under negotiations with a new delivery start up. Following completion of the letting and refurbishment, LondonMetric expects to deliver a blended yield on cost of 5.4% from the acquisitions.

LondonMetric Property announced full year results to 31 March 2021. Key details are:

  • Net rental income up 6% to £123.3m, on an IFRS basis increased by 8%;
  • Rent collection strong with less than 1% forgiven or outstanding for the year;
  • EPRA earnings up 15% to £85.6m;
  • IFRS reported profit up 400% to £257.3m, after adjusting prior year for exceptional costs;
  • Dividend progression of 4.2% to 8.65p, 110% covered, including Q4 dividend declared today of 2.35p;
  • Q1 2022 dividend guidance of 2.2p, a 4.8% progression on Q1 21;
  • TPR of 13.4%;
  • Capital return of 8.0% - urban logistics assets delivered a capital return of 15.5%;
  • EPRA NTA per share up 11.7% to 190.3p, driven by 19.3p valuation gain, on an IFRS basis increased by 11.9%;
  • TAR of 16.7%;
  • Distribution weighting at 71%, including urban logistics at 39% and grocery/ roadside at 11%;
  • £245m of acquisitions with a WAULT of 17 years and 87% of rent subject to contractual uplifts;
  • £159m of disposals, largely shorter let urban logistics and long income assets, with a WAULT of nine years;
  • Post year end, £68m acquired, increasing urban logistics portfolio to £1.1bn, representing 41% of the portfolio;
  • 173 asset management initiatives completed and strong progress on developments;
  • £5.3m pa income uplift and 3.1% like for like income growth, with open market rent reviews +18%;
  • Occupancy of 98.7%;
  • WAULT of 11.4 years with only 8% of income expiring in next three years;
  • Gross to net income ratio of 98.6% and contractual rental uplifts on 56.8% of income;
  • £120m equity raise in year and £780m of refinancing with green framework post year end;
  • LTV of 32.3% with weighted average debt maturity increased to 8.2 years (2020: 4.7 years) and cost of debt at 2.5%;
  • EPRA cost ratio of 13.6% (-60bps).
McKay Securities Plc (LON:MCKS, 219.0p, 309.0p, -29.1%)

McKay Securities announced full year results to 31 March 2021. Key details are:

  • Adjusted PBT up 2.4% to £9.96m (FY 2020: £9.73m);
  • IFRS loss before tax of £16.58m (FY 2020: £9.49m profit);
  • Gross rental income down 2.1% to £24.62m (FY 2020: £25.16m);
  • Portfolio ERV £31.45m (31 March 2020 £34.91 m) down 2.0% on a like for like basis;
  • IFRS NAV per share down 5.8% to 309p (31 March 2020: 328p);
  • Portfolio valuation of £437.90m (31 March 2020: £510.00m), resulting in a 4.7% valuation deficit of £21.58m;
  • EPRA NTA down 6.1% to 309p per share (31 March 2020: 329p);
  • LTV of 32.4% (31 March 2020: 37.6%) following the disposal of 30 Lombard Street, EC3 for £70.06m;
  • Cash and undrawn facilities of £103.25m;
  • 538,542 shares acquired by the year-end at a cost of £1.15m.
Picton Property Income Limited (LON:PCTN, 85.8p, 97.0p, -11.5%a)
  • Picton Property Income announced full year results to 31 March 2021. Key details are:
  • Profit after tax up 50% to £33.8m (FY 2020: £22.5m)
  • Net assets up .7% to £528m, or 97p per share (31 March 2020: 2020: £509m or 93p)
  • EPS of 6.2p (FY 2020: 4.1p)
  • Total return of 6.6% (2020: 4.5%)
  • Received 92% of rental income over the financial year, with a further 1% deferred
  • Combined reduction of 6% in property, operating and finance costs over the year
  • Total dividends paid of £15.0m with dividend cover of 134% (2020: £19.0 m and 105%)
  • LTV ratio reduced to 21% with significant headroom against loan covenants (31 March 2020: 22%)
  • New £50m revolving credit facility completed
  • Total property return of 7.3%, outperforming MSCI UK Quarterly Property Index of 1.2%
  • Upper quartile outperformance against MSCI over one, three, five and ten years and since inception
  • Portfolio comprising Industrial 53%, Office 36%, Retail and Leisure 11%
  • Like-for-like valuation increase of 3.2%
  • Like-for-like increase in passing rent of 1.9%
  • Like-for-like estimated rental value increase of 1.1%
  • One retail asset disposal for £4.0 m, 30% ahead of March 2020 valuation
  • Increased occupancy to 91% (31 March 2020: 89%)
  • Occupier retention of 88%
  • 90 asset management transactions completed including:
      -  17 rent reviews, 7% ahead of ERV
      -  30 lease renewals or regears, 10% ahead of ERV
      -  25 lettings or agreements to lease, 3% ahead of ERV
  • £5m invested into asset refurbishment and repositioning projects.
Primary Health Properties Plc (LON:PHP, 153.8p, 175.5p, -12.4%)

Primary Health Properties issued a trading update for the period 1 January to 31 March 2021. Key details are:

  • Four live development projects with an estimated capital value of approx. £21m;
  • 91 rent reviews settled in the first quarter, increasing rent by £0.5m pa, with a weighted average annualised increase of 1.7% (2020: 1.8%);
  • At 30 April 2021, over 99% of the Q2 FY21 rent had been received;
  • At 31 March 2021, net debt of £1,081.3m (31 December 2020: £1,055.7m);
  • LTV ratio was 41.9% (31 December 2020: 41.0%);
  • Undrawn loan facilities and cash on deposit totalling £335m (31 December 2020: £362m).
Regional REIT Limited (LON:RGL, 87.8p, 98.6p, -11.0%)

Regional REIT issued a trading update for the year to date. Key details are:

  • Completed a number of lease renewals during the quarter, achieving rental uplifts of 6.4% versus the prior rent level;
  • Retention rates at 71.4% by area and 79.3% of units with lease renewals remain occupied;
  • Exchanged on 12 new leases, totalling 71,598sf - when fully occupied these new leases will provide £0.9m pa of rental income;
  • As at 14 May 2021, the rent collection for Q1 rent due has increased to 96.1% from 90.4%, as previously announced on the 21 April 2021. The 96.1% comprises 93.8% rents received, monthly rents of 1.2% and agreed collection plans of 1.1%, compared to rent received of 89.6% for the equivalent period in 2020.
Residential Secure Income Plc (LON:RESI, 96.2p, 105.1p, -8.5%)

Residential Secure Income announced half-year results to 31 March 2021. Key details are:

  • Operating profit before property disposals and change in fair value up 17% to £5.6m (H1 2020: £4.8m);
  • 1.1% like-for-like rental growth in line with RPI;
  • 99% of rent collected during the half year to March 2021;
  • IFRS NAV Total Return of 2.9p per share, including 1.8 pence recurring income (H1 2020: 0.8p);
  • IFRS NAV of £179.7m, or 105.1p per share (30 September 2020: 105.0p);
  • Adjusted EPS up 29% to 1.8p (H1 2020: 1.4p);
  • Total dividends for the half-year of 2.5p per share (H1 2020: 2.5p per share);
  • Dividend cover of 82% for Q2, ahead of 80% full year target;
  • Gross rental income up 5%, to £10.7m (H1 2020: £10.2 m).
Safestore Holdings (LON:SAFE, 943.5p, 532.0p, +77.3%)

Safestore Holdings issued an update for its Q2 to 30 April 2021. Key details are:

  • Group revenue for the quarter in constant exchange rates (CER) up 11.2%;
  • Group like-for-like storage revenue in CER up 10.5% and like-for-like total revenue up 9.9%;
  • Like-for-like occupancy up 10.8ppts at 82.3% (Q2 2020: 71.5%);
  • UK up 11.8ppts at 82.4% (Q2 2020: 70.6%);
  • Paris up 6.6ppts at 81.7% (2020 75.1%);
  • Contracts exchanged for two new development sites and two store extensions in London as well as four new development sites in Spain in Madrid and Barcelona which will together add c. 280,000sf of maximum lettable area;
  • £150m of new competitively priced US Private Placement financing secured with a further uncommitted Shelf debt facility of c. £80m equivalent;
  • COVID 19- stores operating normally with full observation of social distancing rules and protective personal equipment provided to employees.
SEGRO Plc (LON:SGRO, 1,043.5p, 814.0p, +28.2%)

SEGRO, in its role as venture adviser to the SEGRO European Logistics Partnership (SELP) joint venture, has announced the launch and pricing of an 8- year, €500m senior unsecured Green bond issue for SELP. The bonds were priced at 90 basis points above euro mid-swaps and have an annual coupon of 0.875%. 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.

Shaftesbury Plc (LON:SHB, 621.5p, 583.0p, +6.6%)

Shaftesbury announced half-year results to 31 March 2021. Key details are:

  • 94 commercial and 144 residential leasing transactions across 211,000sf., with a rental value of £14.0m completed during the period (H1 2020: £15.0m, H2 2020: £8.6m);
  • Momentum continued since 31 March: 47 lettings and renewals concluded across 41,000sf (rental value £2.1m);
  • EPRA vacancy at 11.9% of ERV at 31 March 2021 falling to 11.3% six weeks later; - Available to let space decreased by 0.7% to 8.4%; further decrease to 7.2% in the six weeks since 31 March 2021;
  • Space under offer up 2.4% over six months to 3.5% reflecting improved occupier demand; subsequently increased further to 4.1% in following six weeks;
  • 50% of contracted rents now collected for the year to 31 March 2021; collection rate in six months to March 2021: 43%;
  • Net property income down 42.6% to £26.5m (31 March 2020: £46.2m) 19.4% like-for-like decrease in rental income;
  • Charges for expected credit losses and impairments of £10.6m (31 March 2020: £3.9m);
  • Loss after tax: £338.5m (H1 2020: £287.6m loss). Decrease primarily due to £342.6m of revaluation deficits;
  • EPRA NTA down 215% to £5.83 per share (30 September 2020: £7.43);
  • Wholly owned portfolio valuation of £2.8bn; 10.1% like-for-like decrease, concentrated in retail and hospitality;
  • Valuation movements: hospitality and leisure -11.0%; retail -18.2%; offices -3.7%; residential +0.5%;
  • Equivalent yield widened 15 basis points to 4.1% (30.9.20: 3.95%); increase predominantly in retail and hospitality uses. Office yields broadly stable;
  • Portfolio ERV down 6.3%2 to £131.7m (30.9.20: £140.3m).
Standard Life Investments Property Income Trust Limited (LON:SLI, 64.2p, 85.3p, -24.7%)

Standard Life Investments Property Income Trust announced its NAV at 31 March 2021. Key details are:

  • NAV per share up 4.0% to 85.3p (31 December 2020: 82.0p);
  • NAV total return, including dividends, of 4.9% for Q1 2021;
  • Portfolio valuation (before CAPEX) up 2.5% on a like-for-like basis;
  • Completed three sales – two offices (Derby: £4.65m and Dartford: £3.1m) and one a retail warehouse in Bradford for £2.65m;
  • Lease renewal of entire office building in Kidlington, Oxford for 10 years securing rent of £429,000pa;
  • Letting of whole office in Bishops Stortford on 10 year lease to previous sub tenant of part at £290,000pa;
  • £55m available for investment in the form of low cost, revolving credit facility plus uncommitted cash after dividend and other financial commitments of £9m;
  • LTV of 21.3% - overall blended interest rate of 2.725% pa;
  • Rent collection provision of £3.3m as at 31 March 2020 (31 December 2020: £2.58m);
  • Total of 94.1% of rent due was collected in 2020;
  • Q1 2021 rent collection at 87%;
  • Q2 2021 at 86%.
Triple Point Social Housing REIT Plc (LON:SOHO, 105.2p, 106.6p, -1.3%)

Triple Point Social Housing REIT has announced its NAV at 31 March 2021. Key details are:

  • NAV per share up 0.12% to 106.55p (31 December 2020: 106.42p);
  • The Portfolio NAV per share was 117.06p.
Tritax Big Box REIT Plc (LON:BBOX, 197.1p, 175.6p, +12.2%)

Tritax Big Box REIT issued an update on its performance for the financial year to date.

  • Demand for logistics space in the UK remains high following a record year of take-up in 2020. Take-up in Q1 2021 was lower than average reflecting the acute shortage of ready-to-occupy sites with vacancy falling below 4%. With a record 16m sf of logistics real estate space under offer in the market, nearly twice the level at the end of 2020, take-up for the rest of the year is expected to rise;
  • Investment demand remained at record levels, with volumes reaching £2bn, the highest Q1 level on record;
  • 99.8% of FY 2020 rents have been received with full collection expected by the Summer;
  • 98% of Q1 2021 and 95% of Q2 2021 rents received, 99% expected to be received in respect of Q1 and Q2 by the end of June 2021;
  • All arrears for Q1 and Q2 2021 are in relation to a rent deferral agreed with one customer where full collection is expected by the end of FY 2021;
  • Undertaken approximately one third of the rent reviews falling due during 2021 which, combined with two historic reviews settled during the period, added £3.1m to annual contracted rent (FY 2020: £2.0m);
  • Completed acquisition of an 872,000sf distribution facility in Avonmouth for £90m, with 12.8 years unexpired lease term, an attractive 5.1% NIY, adding £4.6 to passing annual rent.
Warehouse REIT Plc (LON:WHR, 144.2p, 135.1p, +6.7%)

Warehouse REIT announced that it has completed the acquisition of Cambridge South Industrial Estate, comprising newly built multi-let industrial units and an adjacent development site, located on the wider Dales Manor Business Park, just seven miles south of Cambridge city centre, six miles north of Chesterford Research Park and within four miles of both the Wellcome Genome Park and Granta Park. The purchase price of £20.15m reflects a NIY of 4.15% on the apportioned price for the completed buildings. Totalling 68,000sf across 13 multi-let industrial units, phase one of the estate was recently completed. It is 83% let, with a further 5% under offer, to a diverse range of tenants. The property currently generates £672,000 of contracted rent pa, including a guarantee on the last three vacant units, which equates to a low passing rent of £9.89psf and has a weighted average unexpired lease terms of over 8 years.

Warehouse REIT announced full year results to 31 March 2021. Key details are:

  • Revenue of £35.8m (FY 2020: £30.1m);
  • Operating profit before gains on investment properties of £24.8m (FY 2020: £21.1m);
  • IFRS PBT of £123.1m (FY 2020: £20.7m);
  • TAR of 27.7% (FY 2020: 5.4%);
  • Total cost ratio of 29.5% (FY 2020: 27.1%);
  • Portfolio valuation of £792.8m (31 March 2020: £450.5m); - IFRS NAV of £574.1m (31 March 2020: £263.1m);
  • IFRS NAV per share of 135.1p (31 March 2020: 109.5p); - EPRA NTA per share of 135.1p (31 March 2020: 109.5p); - LTV ratio of 24.6% (31 March 2020: 40.2%). 

Data sourced through the London Stock Exchange and RNS announcements.