Warehouse REIT PLC (WHR) AI Stock Analysis

• Market Cap: £438.46M
• Dividend Yield: 6.29%
• Average Volume (3M): 2.26M
• Price to Earnings (P/E): 11.6
• Beta (1Y): 1.37
• Revenue Growth: 0.17%
• EPS Growth: N/A
• Country: UK
• Employees: N/A
• Sector: Real Estate
• Sector Strength: 72
• Industry: REITs
• EPS (TTM): 0.09
• Shares Outstanding: 424,861,660
• 10 Day Avg. Volume: 3,942,528
• 30 Day Avg. Volume: 2,263,436
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• Price to Cash Flow (P/CF): 25.10
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: 95.00p
• Price Target Upside: -7.95% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

Warehouse REIT PLC's strong recovery in financial performance, coupled with positive technical momentum and strategic corporate moves, positions the company well in the market. The stock benefits from a solid valuation with an attractive P/E ratio and dividend yield, although the overbought RSI suggests caution in the short term. The rejection of an acquisition proposal adds a layer of uncertainty, but the company's strategic initiatives and strong leasing performance reinforce its market position.

Warehouse REIT PLC Business Overview & Revenue Model

Company Description

Warehouse REIT PLC (WHR) is a real estate investment trust specializing in the acquisition and management of warehouse and industrial properties in the United Kingdom. The company's portfolio primarily consists of logistics and distribution centers, serving a diverse range of sectors, including retail, manufacturing, and e-commerce. By focusing on high-demand areas with strong transport links, Warehouse REIT aims to provide attractive returns to its investors through income and capital growth.

How the Company Makes Money

Warehouse REIT PLC generates revenue primarily through the leasing of its warehouse and industrial properties to a variety of tenants. The company earns rental income, which is typically secured through long-term lease agreements, providing a stable and predictable cash flow. Additionally, Warehouse REIT may engage in property acquisitions and disposals, strategically buying or selling assets to optimize its portfolio and capitalize on market conditions. The company's earnings are further enhanced through active asset management, such as property refurbishments and lease renegotiations, which can lead to increased rental income and property value appreciation. Furthermore, Warehouse REIT benefits from its strategic partnerships with property developers and local authorities, which can offer opportunities for expansion and development of new logistics hubs.

Warehouse REIT PLC Financial Statement Overview

Summary

Warehouse REIT PLC demonstrated a strong recovery in its financial performance, with notable improvements in revenue and profitability. The balance sheet remains stable, though certain metrics indicate potential areas of concern in asset management. Cash flow metrics are generally healthy, reflecting strong operational cash generation. The company has shown resilience but should focus on maintaining its growth trajectory and managing its leverage effectively to sustain long-term stability.

Income Statement

The company exhibited a significant recovery in revenue from a negative position in the previous year to a positive $51 million, indicating strong revenue growth. The gross profit margin improved substantially, and the net profit margin turned positive, showcasing effective cost management and profitability improvements. However, the EBIT margin was unusually high due to the low revenue base in the prior year, which may not be sustainable.

Balance Sheet

The company's debt-to-equity ratio remained relatively stable, reflecting balanced leverage. However, the equity ratio decreased due to reduced stockholders' equity, highlighting potential concerns in asset management. ROE improved significantly, driven by the turnaround in profitability, yet it should be monitored for consistency.

Cash Flow

Operating cash flow remained strong, supporting a stable free cash flow. The free cash flow to net income ratio was robust, indicating efficient cash generation relative to profits. However, the significant drop in investing cash flow suggests high investment activities, which could impact future liquidity.

Breakdown
Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
51.03M	-170.39M	51.40M	35.76M	30.05M
	Gross Profit
36.74M	-186.77M	36.93M	26.62M	23.20M
	EBIT
55.63M	-196.54M	35.67M	24.82M	21.47M
	EBITDA
29.97M	0.00	35.85M	24.95M	21.35M
	Net Income Common Stockholders
34.31M	-182.86M	191.20M	123.11M	20.68M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
15.97M	25.05M	16.71M	27.18M	5.48M
	Total Assets
859.13M	888.43M	1.05B	840.24M	471.00M
	Total Debt
295.63M	319.12M	283.11M	234.00M	192.00M
	Net Debt
279.67M	300.13M	266.41M	206.81M	186.51M
	Total Liabilities
323.54M	359.96M	314.00M	266.15M	207.88M
	Stockholders Equity
535.59M	528.48M	738.95M	574.09M	263.12M
Cash Flow		Free Cash Flow
30.77M	30.70M	14.62M	18.61M	17.34M
	Operating Cash Flow
30.77M	35.32M	22.16M	19.65M	20.72M
	Investing Cash Flow
36.34M	-20.93M	-53.85M	-211.27M	-131.96M
	Financing Cash Flow
-76.20M	-5.65M	21.21M	213.32M	111.85M

Warehouse REIT PLC Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 103.20
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:WHR, the sentiment is Positive. The current price of 103.2 is above the 20-day moving average (MA) of 89.34, above the 50-day MA of 82.94, and above the 200-day MA of 82.51, indicating a bullish trend. The MACD of 5.73 indicates Negative momentum. The RSI at 83.46 is Negative, neither overbought nor oversold. The STOCH value of 97.62 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:WHR.

Warehouse REIT PLC Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WHR	76 Outperform	£438.46M	11.56	6.91%	6.29%	0.17%	―
SGRO	71 Outperform	£9.46B	15.65	5.18%	4.03%	-9.88%	―
SHED	69 Neutral	£585.08M	32.55	2.39%	6.08%	4.41%	―
Sector *	61 Neutral	$4.76B	18.86	-2.89%	8.05%	6.45%	-20.33%
BLND	61 Neutral	£3.53B	19.43	3.17%	6.44%	-30.83%	―
LAND	54 Neutral	£4.18B	39.59	1.61%	7.10%	-1.73%	―

Warehouse REIT PLC Corporate Events

Warehouse REIT Secures Major Lease Renewal with Wincanton at Midpoint 18

Warehouse REIT has secured a significant lease renewal with Wincanton plc at its largest asset, Midpoint 18 in Middlewich, for a 375,000 sq ft space over ten years. This renewal, which includes a 28.8% rent uplift, strengthens Warehouse REIT’s portfolio by extending its weighted average unexpired lease term and capturing additional reversion, positioning the company well in a tight UK warehousing market.

Warehouse REIT Rejects Unsolicited Acquisition Proposal

Warehouse REIT PLC has received an unsolicited proposal from a consortium including Sixth Street and Blackstone for a potential all-cash acquisition of its shares. The board, after consulting with its largest shareholder, rejected the latest offer as it undervalues the company and its assets, leaving uncertainty about whether a formal offer will be made.

Warehouse REIT Declares Third Interim Dividend for FY 2025

Warehouse REIT PLC has announced a third interim dividend of 1.60 pence per ordinary share for the financial year ending 31 March 2025. The dividend will be paid on 11 April 2025, reflecting the company’s commitment to delivering consistent returns to shareholders. As a Property Income Distribution, this announcement underscores Warehouse REIT’s strategic focus on maximizing shareholder value through its real estate investments in UK warehouses.

Warehouse REIT Reports Strong Third Quarter with Enhanced Leasing and Asset Sales

Warehouse REIT PLC reported a successful third quarter with strong leasing activity, completing 25 deals that were on average 32.2% above previous rents. The company secured £3.5 million in contracted rent and conducted asset sales exceeding book value, indicating effective portfolio management and resilience in the multi-let industrial market. Noteworthy transactions included significant rent increases across new lettings and renewals, contributing to a total of 71 transactions and £9.0 million in rent for the financial year. Additionally, the company made progress in selling non-core assets and announced strategic initiatives for cost savings, reinforcing its market position and operational efficiency.

Warehouse REIT Revises Management Fee Structure for Strategic Savings

Warehouse REIT PLC has amended its Investment Management Agreement with Tilstone Partners Limited to change the basis of its management fee calculation from net asset value to the lower of net asset value and market capitalization. This adjustment, effective from April 2025, is expected to result in annual savings of £2.1 million, supporting the company’s strategic objective to rebuild dividend cover and narrow its equity trading discount.

Warehouse REIT PLC Announces Change in Voting Rights Structure

Warehouse REIT PLC has announced a change in its voting rights structure due to recent acquisitions and disposals by major shareholders. Rathbones Investment Management Ltd, among others, has adjusted its holdings, resulting in a decrease of Rathbones’ voting rights from 17.9939% to 16.666%. This alteration could impact the company’s decision-making dynamics and reflects shifting interests among its major investors.

Warehouse REIT Sees Major Voting Rights Acquisition by FIL Limited

Warehouse REIT PLC has announced a significant change in its voting rights structure following a recent acquisition by FIL Limited, a Bermuda-based investment company. As a result of the transaction, FIL Limited now holds over 10.56% of voting rights in Warehouse REIT, indicating a substantial increase from its previous position. This change reflects an increased level of influence by FIL Limited over Warehouse REIT’s decision-making processes, potentially impacting the company’s strategic direction and stakeholder interests.

Warehouse REIT Voting Rights Update by Rathbones

Warehouse REIT PLC announced a change in the voting rights held by Rathbones Investment Management Ltd and associated entities, which resulted in a reduction of their total voting rights percentage to 17.9939% from a previous 18.9968%. This change reflects ongoing adjustments in shareholder positions, potentially impacting the company’s governance and investor relations by altering the distribution of influence among its major stakeholders.