Pivot to retail warehouses pays off for Ediston

Ediston Property Investment Company has boosted its portfolio by 11% after refocusing on retail warehouses. Announcing its preliminary results, the REIT said its investment portfolio was valued at £238.8m, a rise of 11% over the six months to the end of March. It added that it had completed the first phase of its revised investment strategy, selling off its four remaining offices. The sale has raised £60m to invest in retail sheds. The portfolio now comprises 11 retail warehouses, valued at £233m and accounting for 97.7% of the portfolio, and two leisure assets. William Hill, Ediston’s chairman, said: “In the first half of the year the company focused on the execution of its refreshed investment strategy announced last July. It has made significant progress. This strategy committed the company to be invested in retail warehouse assets for the foreseeable future. Encouragingly, the assets already owned have increased in value with positive NAV increases recorded for the last four quarters.” Net asset value for the six months to the end of March also increased by 7.1% to 96.1p per share. The group has also closed its discount to NAV to 17.3%, down from 24% for the same period last year. However, Hill added: “While the retail warehouse market has flourished over the past six months, the macro picture has become more challenging as the optimism from the lifting of Covid-19 restrictions has been dissipated by world events and an inflationary cost of living crisis.” To send feedback, e-mail piers.wehner@eg.co.uk or tweet @PiersWehner or @EGPropertyNews