Warehouse REIT PLC — Earnings Release 2022

Apr 27, 2022

National Storage Mechanism | Additional information

RNS Number : 6033J

M7 Regional E-Warehouse REIT PLC

27 April 2022

M7 Regional E-Warehouse REIT Plc

("M7 Regional E-Warehouse REIT" or the "Company")

Replacement announcement

27 April 2022

This announcement is made in replacement of the Rent Collection, Dividend Declaration, NAV and Business Update announcement released on 27 April 2022 (RNS number 4409J).  In the original announcement the details of the lead advisor & corporate broker were incorrectly stated. It is corrected below. 

RENT COLLECTION, DIVIDEND DECLARATION, NAV AND BUSINESS UPDATE

The Board of Directors of M7 Regional E-Warehouse REIT (ticker: REW), provides a trading and business update and declares an interim dividend for the period from 21 December 2021 (date of admission to International Property Securities Exchange, or 'IPSX') and ended 31 March 2022.

Financial and operational highlights for the period ended 31 March 2022

	31 March 2022
Net Asset Value (unaudited)	£41.71 million
Net Asset Value per share (unaudited)	109.31 p
Share price	100 p
Operating profit 1	£2.03 million
Profit before tax 1	£4.29 million
EPRA EPS 2	2.80 p
Dividend cover based on EPRA EPS	130.32%
Adjusted EPS 2	2.89 p
Dividend cover based on Adjusted EPS 2	138.68%
Inaugural dividend recommendation (per share)	2.15 p

1 Presented for the period from the date of Admission and ended on 31 March 2022.

2 Considered to be an Alternative Performance Measure.

•      Net Asset Value ("NAV") increased 11.5% to £41.71 million (Admission: £37.42 million) or 109.31p on a per share basis (Admission: 98p (net of Admission costs of 2p per share), driven by portfolio asset management and investment led yield compression for the retail warehousing sector

•      Increase in portfolio valuation of 2.85% to £113.85 million as at 31 March 2022, an uplift of £3.15 million compared to the property value at the date of Admission. The valuation reflects a net initial yield of 7.34% 3.

•      EPRA Earnings per share ("EPS") of 2.80 pence per share, with Adjusted PES of 2.89p, reflecting 130.32% and 138.68% cash dividend cover for the period, respectively.

•      Senior loan facility of £54.34 million and an unsecured loan note balance of £19.70 million, totalling £74.04 million, reflecting a loan to value ratio of 65.04%.

•      Rent collection remains strong with 98% of rents received in respect of the December 2021 and March 2022 rent quarters as at 20 April 2022.

•      £2.41 million of rent recognised during the period in line with passing rent.

•      As at 31 March 2022, there were 54 tenants and the weighted average unexpired lease term is 5.25 years to breaks.

•      Occupancy across the portfolio was 98.8% at 31 March 2022.

3 Including purchaser's costs of 6.65%.

Dividend

The Board declares today an interim dividend of 2.15 pence per share for the period 21 December 2021 to 31 March 2022, the first dividend since Admission. On a pro-rata basis, the dividend is in line with the annual 8 pence, or 8%, target dividend, as stated in the Company's Admission document. The dividend, which will be a Property Income Distribution, will be paid on or around 27 May 2022. The ex-dividend date will be 5 May 2022 and the record date will be 6 May 2022.

In addition, and in accordance with Sections 836 and 839 of the Companies Act 2006, Unaudited Initial Accounts of the Company covering the period from the date of incorporation of 11 October 2021 to 26 April 2022 have been prepared to support the payment of an interim dividend to the Ordinary shareholders of the Company on or around 27 May 2022.

The Unaudited Initial Accounts of the Company, which are not statutory financial statements, will be filed with Companies House and are also available upon request to the Company Secretary.

Debt Covenant

The financial covenants which apply to the Group's external senior debt are as follows:

•     Loan to value not to exceed 70%

•     Actual and Projected Interest Cover Ratio is at least 225%

In addition, the loan to value of the unsecured loan note balance must not exceed 85%.

There continues to be significant headroom in the debt covenants. The senior debt loan to value is 49.09% (default level is greater than 70%) and the interest cover ratio is 413.30% (default level is less than 225%). The Group has therefore complied with the above covenants in the latest interest payment date.

James Max, Non-Executive Chairman of M7 Regional Warehouse REIT plc, commented:

"Having successfully completed our listing on IPSX in December this trading update for a slightly extended period to the end of the first quarter 2022, points to a very positive start for the M7 Regional E-Warehouse REIT as a public company.  Portfolio valuation and, in turn, NAV have both increased driven by our own asset management initiatives as well as yield compression reflecting continued recognition amongst investors of the long term prospects for the asset class.  Furthermore, with rent collection remaining strong and a positive outlook for rental growth in the portfolio, we have declared a first dividend that is in line with the level set out at the time of our Admission and, at 8%, offers investors an attractive yield from an asset class underpinned by strong fundamentals."

ENQUIRIES

M7 Regional E-Warehouse REIT Plc
James Max - Chairman	via FTI Consulting below
M7 Real Estate Ltd Richard Croft	+44 (0) 20 3657 5500
WH Ireland (Cornerstone Investor Representative)	+44 (0) 20 7398 1145
Chris Hardie
FTI Consulting (Communications Adviser)	+44 (0) 20 3727 1000
Richard Sunderland Claire Turvey	M7regionale-warehousereit@FTIConsulting.com
Alter Domus (UK) Limited (Company Secretary)	+44 (0) 207 645 4800

The Company's ISIN is GB00BLN7H037.

Further information on M7 Regional E-Warehouse REIT plc is available at www.rewreit.co.uk1.

NOTES

M7 Regional E-Warehouse REIT Plc is a property investment company, listed on the International Property Securities Exchange offering shareholders with a sustainable level of income together with the potential for income and capital growth by investing in diversified portfolio of enhanced warehouse (e-warehouse) properties across the United Kingdom.

The Company's asset manager is M7 Real Estate Limited ("M7"), a leading specialist in the pan-European, regional, multi-tenanted real estate market. M7 has over 220 employees in 15 countries across Europe. The team manages over 570 properties with a value of circa €4.9 billion.

1   Neither the content of the Company's website, nor the content on any website accessible from hyperlinks on its website or any other website, is incorporated into, or forms part of, this announcement nor, unless previously published on a Regulatory Information Service, should any such content be relied upon in reaching a decision as to whether or not to acquire, continue to hold, or dispose of, securities in the Company.

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