Warehouse REIT FY25 Overview
Warehouse REIT delivered a steady performance in FY25, showing resilience despite ongoing economic uncertainty. The company remains focused on multi-let industrial assets and continues to reshape its portfolio, improve sustainability metrics, and strengthen its financial position. A recommended takeover by Blackstone could mark a major turning point in the company’s future.
Earnings per share rose by 8.3% to 5.2p, with adjusted earnings now covering 81.3% of the dividend. Net tangible assets increased to 128.0p per share, while total portfolio value climbed to £805.4 million—a 3.8% rise on a like-for-like basis. IFRS profits were also up, reaching £41.7 million. Operating profit remained stable at £35.0 million. The dividend was held at 6.4p per share, and total return increased to 8.0%.
Leasing activity stayed strong, with 105 lease events securing £14.1 million of contracted rent. These deals were on average 24.4% ahead of previous rent levels, adding £3.7 million in new income. Occupancy dipped slightly to 93.7%, reflecting planned refurbishments and some expected vacancies.
The company made progress on its capital recycling plan. £85.7 million in asset sales were completed during the year, slightly above book value, bringing the total raised under its deleveraging strategy to £193.4 million since late 2022. On the buy side, it acquired Ventura Retail Park for £38.6 million at a 7.4% net initial yield. Net debt fell to £260.6 million, reducing the loan-to-value ratio to 32.4%.
Warehouse REIT continues to focus on capturing the reversionary potential in its portfolio. During FY25, it secured £3.7 million in new rent and captured £2.8 million in reversion. The portfolio remains around 25% reversionary, with £6.1 million in unrealised upside and a further £4.6 million of vacant space available for letting.
Cost control remains a focus. The company expects to save 0.7p per share in FY26 through management agreement amendments and lower debt costs, thanks to a refinancing that reduced the average cost of debt to 3.6%.
Sustainability remains a key area of progress. By floor area, 68.7% of the portfolio is now rated EPC A+ to C, up from 66.6% the year before. Scope 1 and 2 emissions were cut by over 30% on a like-for-like basis, and solar panels were added to over 50,000 sq ft. The company is targeting net zero for Scope 1 and 2 by 2030 and for Scope 3 by 2050. Most new leases now include environmental clauses, and occupier surveys show strong support for building quality and green upgrades.
The company continues to believe that multi-let assets offer a strong structural advantage. Their frequent lease events allow for regular rent reviews and increases. The assets are simple to maintain, and the economics of rebuilding new stock are poor—making the existing supply harder to replace and helping support rental growth. The tenant base is broad, spreading risk, and the flexible layout of the buildings means tenants can stay and grow without needing to relocate.
Industrial property made up 33% of all UK commercial investment in 2024, overtaking offices. Within this, multi-let industrial accounted for 37% of the sector, showing continued strong investor interest.
Warehouse REIT’s board includes six non-executive directors, the majority of whom are independent. A new management fee structure will be introduced from April 2025, aligning charges with the lower of market cap or net asset value. This is expected to save around £1.7 million a year. Governance priorities also include succession planning, greater diversity, and clear access for directors to independent professional advice.
Risks highlighted in the company’s update include exposure to property market cycles, tenant defaults, and rising borrowing costs. Regulatory compliance, especially maintaining REIT status, remains a key focus. Development and refurbishment plans may face delays or cost overruns. The most immediate uncertainty is the proposed takeover by Blackstone, which raises questions about future direction and control.
On 4 June 2025, the company announced the £34.75 million acquisition of Rycote Lane, a multi-let estate near Thame. On the same day, the board accepted a cash offer of 109p per share from Wapping Bidco Ltd, a vehicle controlled by Blackstone. This offer was unsolicited but is now backed by the board as being in shareholders’ best interests.
Yes, the provided documents include financial information that spans a period of three years, primarily covering the financial years ended 31 March 2023, 31 March 2024, and 31 March 2025. While the main Consolidated Statement of Comprehensive Income, Statement of Financial Position, and Statement of Cash Flows typically present data for the two most recent years (2025 and 2024), other detailed notes and supplementary information within the documents extend this financial data to cover three years.
For instance, the **Consolidated Statement of Changes in Equity** explicitly lists balances for 31 March 2023, 2024, and 2025. Similarly, the **Dividends** note provides a three-year history of dividend payments and dividends per share. Key performance indicators like **EPRA Earnings Per Share (EPS)** and **Adjusted EPS** are also presented for all three years. Furthermore, the **UK Investment Property** note details valuation movements that allow for the total portfolio valuation to be determined at 31 March 2023, 2024, and 2025. The **EPRA Net Tangible Assets (NTA) per share** also shows a clear trend across these three years.
Here is a summary of key financial metrics for the three years, presented in an easy-to-understand HTML table format with no commas:
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| Financial Metric | Unit | 31 March 2023 | 31 March 2024 | 31 March 2025 |
|---|---|---|---|---|
| Total Equity | GBP thousands | 528475 | 535589 | 550106 |
| IFRS ProfitLoss before tax | GBP thousands | -182800 | 34300 | 41700 |
| EPRA EPS | pence | 4.7 | 4.8 | 5.1 |
| Adjusted EPS | pence | 4.7 | 4.8 | 5.2 |
| Dividends per share | pence | 6.4 | 6.4 | 6.4 |
| Total Portfolio Valuation | GBP thousands | 828145 | 810220 | 805400 |
| EPRA NTA per share | pence | 122.6 | 124.4 | 128.0 |
