Trading Statement & Dividend Announcement

30 January 2018

Warehouse REIT plc

(the 'Company' or 'Warehouse REIT')

TRADING UPDATE & DIVIDEND ANNOUNCEMENT

DELIVERING ON FOCUSED STRATEGY, AS SET OUT AT IPO

Warehouse REIT plc (LSE: WHR), the AIM-listed specialist warehouse real estate investor, today provides a trading update for the period since the Company's Admission to trading on the London Stock Exchange on 20 September 2017 to 30 January 2018.

In line with the dividend policy set out at IPO, the Company is today declaring its maiden interim dividend of 1.00 pence per share. The Company remains on track to deliver a dividend of 5.5p for the year ending 31 March 2019, in line with objectives set out at IPO. The 1.00 pence per share dividend payment will be made on 9 March 2018 to shareholders on the register as at 9 February. The ex-dividend date will be 8 February 2018.

Highlights over the period:

- On Admission, completed the acquisition of the seed portfolio of 27 freehold and long leasehold warehouse assets for £108.85 million, reflecting a 7% net initial yield. 

- Since IPO, a further £54 million invested across 14 UK warehouse estates totalling 1.1 million sq ft, let to a diverse range of occupiers and reflecting a 7.6% blended net initial yield. The properties' low average passing rents of £4.44 psf present an opportunity to grow rental income to bring in line with ERV, while a combined 7.7% vacancy rate provides further growth prospects.

- 19 new lettings completed, generating annual rent of £778,000 pa, ahead of ERV. Of these transactions, 13 were new lettings of previously vacant space (generating £371,000pa) with the balance being renewals.

- Five new lettings of 45,790 sqft of vacant space currently under offer for a combined rent of £284,000 pa, 10% ahead of ERV.

- Notice has been received to exercise a lease break from six tenants, representing combined passing rents of £304,000 pa, or £3.63 psf as compared to an ERV of £4.07 psf, providing an opportunity to increase revenue. In the majority of instances, the tenant is vacating due to the Company's inability to accommodate their demand for additional space.

- New and enlarged financing facilities totalling £65 million secured with HSBC which, if fully drawn, would crystalise an LTV of less than 30%. 

- Strong pipeline of attractive investment opportunities identified, including a mix of single assets and portfolios, exhibiting similar characteristics to the current portfolio.

Neil Kirton, Non-Executive Chairman of Warehouse REIT, commented:

"We have made solid progress in terms of delivering against our strategy for Warehouse REIT, with the business's performance since IPO exceeding our expectations. At this early stage of the Company's life, we are pleased to be assembling a portfolio of multi-let UK urban warehouse assets aligned to the Investment Strategy, demonstrating the sourcing abilities of our experienced team. Letting activity continues to proceed at levels ahead of our business plan. Furthermore, with an active pipeline of new investment opportunities under review, we are confident in our ability to deploy our remaining IPO proceeds ahead of initial forecasts."

-ENDS-

Enquiries:

Warehouse REIT plc via FTI Consulting

Further information on Warehouse REIT is available on its website:

http://www.warehousereitplc.co.uk

Notes to editors:

Warehouse REIT announced the results of its IPO on 15 September, having raised gross proceeds of £150 million (£146.8 million net) to invest in a diversified portfolio of UK warehouse assets located in urban areas.

Occupier demand for urban warehouse space is increasing as the structural growth in e-commerce has driven the rise in internet shopping and investment by retailers in the "last mile" delivery sector. The urban warehouse sector offers one of, if not the highest, initial yield of all UK property sectors.

The Company is an alternative investment fund ("AIF") for the purposes of the AIFM Directive and as such is required to have an investment manager who is duly authorised to undertake the role of an alternative investment fund manager. The Investment Manager is currently G10 Capital Limited, whose role will pass to Tilstone Partners Limited ("TPL"), on receipt of FCA approval.