Donate to Remove ads

Got a credit card? use our Credit Card & Finance Calculators

Thanks to MrFahrenheit,SalvorHardin,Anonymous,johnhemming,Anonymous, for Donating to support the site

Warehouse REIT Plc (WHR)

richfool
Lemon Quarter
Posts: 2270
Joined: November 19th, 2016, 2:02 pm
Has thanked: 482 times
Been thanked: 465 times

Warehouse REIT raising more funds

#207671

Postby richfool » March 14th, 2019, 1:31 pm

LONDON (Alliance News) - Warehouse REIT PLC said on Tuesday it plans to raise GBP100 million through the issue of shares, which will go towards making new acquisitions and strengthening its portfolio.

The real estate investment trust will issue up to 97.1 million shares through a placing, subscription and open offer at 103.0 pence per share. The issue price reflects a 2% premium to Warehouse REIT's closing price on Monday at 101.00 pence.
Shares in Warehouse REIT were up 0.9% at 101.92 pence on Tuesday.

Shareholders can take part in the open offer for up to 66.4 million shares on the basis of two new shares for each five existing one held.


http://www.lse.co.uk/sharecast-news-art ... _portfolio

http://www.morningstar.co.uk/uk/news/AN ... ns-(alliss).aspx


Noting that the SP is currently 101.84p, as an existing shareholder and thus entitled to take up the offer, I can't see the point of taking it up at a price of 103p, or am I missing something? (Apart from the fact that I would be saving the trading fee charged by my broker). Surely I can buy more in the open market at or close to the market price of 101.84p.

richfool
Lemon Quarter
Posts: 2270
Joined: November 19th, 2016, 2:02 pm
Has thanked: 482 times
Been thanked: 465 times

Re: Warehouse REIT raising more funds

#207875

Postby richfool » March 15th, 2019, 12:56 pm

Since making the above post I have received the paperwork from my asset manager, which mentions that the offer price of 103p is at a discount of 2.4% to NAV. However, I still don't see any advantage in taking the offer up, if I am able to buy in the open market at a lower price.

PrefInvestor
Lemon Slice
Posts: 410
Joined: February 9th, 2019, 8:24 am
Has thanked: 18 times
Been thanked: 149 times

Re: Warehouse REIT raising more funds

#207891

Postby PrefInvestor » March 15th, 2019, 1:41 pm

Can only agree with you, unless you wanted only a really small number - in which case saving stamp duty and commission might make taking the offer worthwhile. But otherwise buying on the open market makes sense to me, why pay more. A bit cheeky pitching the offer price at a 2% premium anyway I would say. Who knows they might go lower, they have only recently recovered from the low 90s after all.

Personally I’m staying out of all REITS ATM until the brexit situation is resolved as I think it might have a significant effect on commercial property prices. The last mile warehouse sector (WHRs domain as I understand it) may be more immune to such effects than those exposed to retail and office space I suppose ?. Shame as REITS and housebuilders were major holdings of mine at one point, but no longer. I have some exposure to housebuilders still via some ETF Holdings but no direct holdings.

Good luck with it anyway.

ATB

Pref

midgesgalore
2 Lemon pips
Posts: 177
Joined: November 5th, 2016, 12:02 am
Has thanked: 125 times
Been thanked: 36 times

Re: Warehouse REIT raising more funds

#208985

Postby midgesgalore » March 20th, 2019, 10:49 pm

richfool wrote:Since making the above post I have received the paperwork from my asset manager, which mentions that the offer price of 103p is at a discount of 2.4% to NAV. However, I still don't see any advantage in taking the offer up, if I am able to buy in the open market at a lower price.


Hi richfool
Since you posted this message I also received the paperwork from my broker. It's baffling why WHR would do the placing at 103p which is higher than can be achieved in the open market. I kept reading and rereading the paperwork thinking I was missing something - like another incentive, this was pointless of course.

I did note my broker's FAQ's raise this exact point:
"IMPORTANT INFORMATION WE ARE REQUIRED TO PROVIDE FOR YOU
Please be aware that if you take up your Entitlements your new Shares will be purchased at a price of 103p, regardless of the
prevailing market price of Warehouse REIT plc Shares. At the time of writing, Warehouse REIT plc Shares are trading with an offer
(buying) price of 102.5p per Share. You should bear in mind that if you take up your Entitlement to buy new Shares you could end
up paying more than or less than the prevailing market price. Please ensure that you check the Warehouse REIT plc Share price
before making your decision.
"

If roughly 100 Million shares are purchased in the open market the momentum would most likely cause the share price to rise to at least the offer price.
I think I'll pass though.

midgesgalore

richfool
Lemon Quarter
Posts: 2270
Joined: November 19th, 2016, 2:02 pm
Has thanked: 482 times
Been thanked: 465 times

Re: Warehouse REIT raising more funds

#209017

Postby richfool » March 21st, 2019, 8:33 am

midgesgalore wrote:
richfool wrote:Since making the above post I have received the paperwork from my asset manager, which mentions that the offer price of 103p is at a discount of 2.4% to NAV. However, I still don't see any advantage in taking the offer up, if I am able to buy in the open market at a lower price.


Hi richfool
Since you posted this message I also received the paperwork from my broker. It's baffling why WHR would do the placing at 103p which is higher than can be achieved in the open market. I kept reading and rereading the paperwork thinking I was missing something - like another incentive, this was pointless of course.

I did note my broker's FAQ's raise this exact point:
"IMPORTANT INFORMATION WE ARE REQUIRED TO PROVIDE FOR YOU
Please be aware that if you take up your Entitlements your new Shares will be purchased at a price of 103p, regardless of the
prevailing market price of Warehouse REIT plc Shares. At the time of writing, Warehouse REIT plc Shares are trading with an offer
(buying) price of 102.5p per Share. You should bear in mind that if you take up your Entitlement to buy new Shares you could end
up paying more than or less than the prevailing market price. Please ensure that you check the Warehouse REIT plc Share price
before making your decision.
"

If roughly 100 Million shares are purchased in the open market the momentum would most likely cause the share price to rise to at least the offer price.
I think I'll pass though.

midgesgalore

Hi Midgesgalore, Thanks for the confirmation of your understanding on this.

I did actually put in a buy order yesterday, to see what it came back with. Whilst it was showing a Guidance price of 103p, the system offered me a buy at 102.42. The only other factor (I could see) was that there was a broker fee on top, whereas the open offer would not incur a fee. I continue to watch, but don't feel any desire to take up the offer.

midgesgalore
2 Lemon pips
Posts: 177
Joined: November 5th, 2016, 12:02 am
Has thanked: 125 times
Been thanked: 36 times

Re: Warehouse REIT raising more funds

#209061

Postby midgesgalore » March 21st, 2019, 10:53 am

richfool wrote:... I continue to watch, but don't feel any desire to take up the offer.


Ditto

midgesgalore

richfool
Lemon Quarter
Posts: 2270
Joined: November 19th, 2016, 2:02 pm
Has thanked: 482 times
Been thanked: 465 times

Re: Warehouse REIT raising more funds

#215225

Postby richfool » April 15th, 2019, 4:37 pm

Further to their recent fund raising of £120M, WHR acquires Northampton and Aberdeen Estates
(Sharecast News) - British real estate investment outfit Warehouse REIT has exchanged contracts to acquire multi-unit estates in Northampton and Aberdeen for a total of £37m.

The consideration for the assets, purchased in two separate transactions, reflected a blended net initial yield of 6.6%.

In Northampton, Warehouse REIT snapped the freehold of two John Lewis distribution units, totalling 336,000 square feet with a headline rent of £1.83m per year.

Up in Aberdeen, the AIM-listed outfit acquired the long leasehold 125,000 square foot Murcar multi-let industrial estate, let to a range of occupiers and generating a total net passing rent of £776,030 per annum.

Current yield 6.00%

http://www.lse.co.uk/sharecast-news-art ... en_estates

richfool
Lemon Quarter
Posts: 2270
Joined: November 19th, 2016, 2:02 pm
Has thanked: 482 times
Been thanked: 465 times

Re: Warehouse REIT raising more funds

#290854

Postby richfool » March 14th, 2020, 7:39 pm

There is an offer underway currently on this REIT at a price of 111.0p. It's current SP is 103.00p if anyone is interested. Yield 5.85%

richfool
Lemon Quarter
Posts: 2270
Joined: November 19th, 2016, 2:02 pm
Has thanked: 482 times
Been thanked: 465 times

Re: Warehouse REIT raising more funds

#314762

Postby richfool » June 3rd, 2020, 11:11 am

Warehouse Reit revives fund raise to sniff out forced sellers
2 June 2020

Warehouse is reinstating plans for a big share issue that fund manager Andrew Bird said would allow the real estate investment trust to snap up prime properties at knock-down prices.

Warehouse (WHR ) is reinstating plans for a big share issue that fund manager Andrew Bird said would allow the company to snap up prime properties at knock-down prices from forced sellers.

The £336m AIM-listed real estate investment trust (Reit) was forced to put a capital raise on ice when the coronavirus pandemic stuck global markets in March.

https://www.theaic.co.uk/aic/news/cityw ... ed-sellers

richreduk
Posts: 2
Joined: December 5th, 2019, 8:53 am
Has thanked: 1 time
Been thanked: 1 time

Re: Warehouse REIT raising more funds

#319349

Postby richreduk » June 18th, 2020, 11:37 am

Fundraise launched again:

RNS 18/6/20 - Bolding mine

"Summary

· Issue of up to 159,090,908 New Ordinary Shares pursuant to a Firm Placing, Placing, Open Offer and Offer for Subscription and Intermediaries Offer, raising gross proceeds of up to £175.0 million
· Firm Placing of up to 68,181,818 New Ordinary Shares to be conducted through an accelerated bookbuild process which will be launched immediately following this announcement
· Placing of up to 90,909,090 New Ordinary Shares open to institutional investors immediately following this announcement
· Qualifying Shareholders are being offered the opportunity to participate in the Open Offer of up to 80,084,681 New Ordinary Shares on the basis of 1 New Ordinary Share for every 3 Existing Ordinary Shares
· Qualifying Shareholders are also being offered the opportunity to subscribe for New Ordinary Shares in addition to their Open Offer Entitlement under the Excess Application Facility
· The Board has the ability to increase the size of the Firm Placing, the Placing and/or the Offer for Subscription (including the Intermediaries Offer) by a further 68,181,818 New Ordinary Shares in aggregate should there be sufficient demand
· The Issue Price is 110.0 pence per New Ordinary Share. This represents a premium of 0.5 per cent. to the Net Asset Value per Ordinary Share as at 31 March 2020 (audited) of 109.5 pence per Ordinary Share
· The Issue Price represents a discount of 1.3 per cent. to the Closing Price per Ordinary Share on 17 June 2020 of 111.5 pence per Ordinary Share"

Fell this morning to c. 108 pence but back up to c. 110 pence as I write. 5.6% yield at that price if they meet the targeted divi's.

richfool
Lemon Quarter
Posts: 2270
Joined: November 19th, 2016, 2:02 pm
Has thanked: 482 times
Been thanked: 465 times

Re: Warehouse REIT raising more funds

#320265

Postby richfool » June 21st, 2020, 3:23 pm

richreduk wrote:Fundraise launched again:

RNS 18/6/20 - Bolding mine

"Summary

· Issue of up to 159,090,908 New Ordinary Shares pursuant to a Firm Placing, Placing, Open Offer and Offer for Subscription and Intermediaries Offer, raising gross proceeds of up to £175.0 million
· Firm Placing of up to 68,181,818 New Ordinary Shares to be conducted through an accelerated bookbuild process which will be launched immediately following this announcement
· Placing of up to 90,909,090 New Ordinary Shares open to institutional investors immediately following this announcement
· Qualifying Shareholders are being offered the opportunity to participate in the Open Offer of up to 80,084,681 New Ordinary Shares on the basis of 1 New Ordinary Share for every 3 Existing Ordinary Shares
· Qualifying Shareholders are also being offered the opportunity to subscribe for New Ordinary Shares in addition to their Open Offer Entitlement under the Excess Application Facility
· The Board has the ability to increase the size of the Firm Placing, the Placing and/or the Offer for Subscription (including the Intermediaries Offer) by a further 68,181,818 New Ordinary Shares in aggregate should there be sufficient demand
· The Issue Price is 110.0 pence per New Ordinary Share. This represents a premium of 0.5 per cent. to the Net Asset Value per Ordinary Share as at 31 March 2020 (audited) of 109.5 pence per Ordinary Share
· The Issue Price represents a discount of 1.3 per cent. to the Closing Price per Ordinary Share on 17 June 2020 of 111.5 pence per Ordinary Share"

Fell this morning to c. 108 pence but back up to c. 110 pence as I write. 5.6% yield at that price if they meet the targeted divi's.


Well I top-sliced/reduced my holding of WHR on the 16th June, a few days before this, selling at 113.6p, as it was my only REIT to be significantly in profit (excluding PHP). Although I felt demand should hold up for warehouses, I didn't want to be unduly exposed in that sector. The question now arises whether to take up the offer at 110.0p. I may well give it a miss. I note the SP in the open market is now about 110p.

gnawsome
2 Lemon pips
Posts: 138
Joined: November 6th, 2016, 4:44 pm
Has thanked: 124 times
Been thanked: 23 times

Warehouse REIT Plc (WHR)

#321101

Postby gnawsome » June 24th, 2020, 2:35 pm

Any views on WHR's latest fund raising?

EQi's latest secure message seems to be giving me a number equal to my present holding entirely for free...

midgesgalore
2 Lemon pips
Posts: 177
Joined: November 5th, 2016, 12:02 am
Has thanked: 125 times
Been thanked: 36 times

Re: Warehouse REIT Plc (WHR)

#321601

Postby midgesgalore » June 25th, 2020, 10:29 pm

Hi gnawsome
I hold already but the only thing free for me is my entitlement to buy 1 new share for every 3 I own already as guaranteed if the vote at their AGM on Monday 6 July supports raising the capital. I can apply for more than my entitlement and in the event of over subscription the excess request would be scaled back.
If I take up the entitlement the cost is 110p per share where all purchase costs / commissions are waved.
WHR are currently priced at 110.5p in the open market; a rise of 3p on the day but there would be tax and commission to do it that way. (bid offer spread is only 0.5p).

Not this time for me. It is not a bargain given the volatility of the markets although this warehouse REIT is still paying all its dividends so far. It dipped to 70p in March this year.
Market cap is £265.45 million and they hope to raise further £175 million (before expenses) with this exercise which I think is a bit ambitious.
Only my opinion of course.

midgesgalore

gnawsome
2 Lemon pips
Posts: 138
Joined: November 6th, 2016, 4:44 pm
Has thanked: 124 times
Been thanked: 23 times

Re: Warehouse REIT Plc (WHR)

#322098

Postby gnawsome » June 27th, 2020, 4:17 pm

midgesgalore wrote:Hi gnawsome
I hold already but the only thing free for me is my entitlement to buy 1 new share for every 3 I own already as guaranteed if the vote at their AGM on Monday 6 July supports raising the capital. I can apply for more than my entitlement and in the event of over subscription the excess request would be scaled back.


The message reads as Holding *****, Entitlement ***** (the same), Cost £0.I would like that!

WHR are currently priced at 110.5p in the open market; a rise of 3p on the day but there would be tax and commission to do it that way. (bid offer spread is only 0.5p).

Not this time for me. It is not a bargain given the volatility of the markets although this warehouse REIT is still paying all its dividends so far. It dipped to 70p in March this year.
Market cap is £265.45 million and they hope to raise further £175 million (before expenses) with this exercise which I think is a bit ambitious.
Only my opinion of course.


midgesgalore


I look at how the first attempt was pulled and now back at a similar price and seemingly firm. With the yield reasonable I think I'll have the entitlement plus.
Tho' I'm getting a bit too reliant on the REITs and wonder what might dampen the enthusiam...

midgesgalore
2 Lemon pips
Posts: 177
Joined: November 5th, 2016, 12:02 am
Has thanked: 125 times
Been thanked: 36 times

Re: Warehouse REIT Plc (WHR)

#322533

Postby midgesgalore » June 29th, 2020, 12:49 pm

gnawsome wrote:Tho' I'm getting a bit too reliant on the REITs and wonder what might dampen the enthusiam...


I would expect sector contagion from the likes of the other REITS in difficulty collecting their rent. Also INTU calling in the administrators on Friday.
Not a happy background although this REIT is mainly in last mile warehousing.

You can buy at 109.5p at the time of writing - even as a quote. Also they are already XD

midgesgalore


Return to “REITs & Property Companies”

Who is online

Users browsing this forum: No registered users and 3 guests