Strong start for M7’s second IPSX listing

M7’s Regional E-Warehouse REIT has boasted an 11.5% rise in net asset value since it was listed on IPSX in December. In a slightly extended first-quarter update – it was listed on 21 December – the REIT declared unaudited NAV to be £41.7m, up from the £37.4m when it listed. James Max, non-executive chair said that the extended first quarter update “points to a very positive start for the M7 Regional E-Warehouse REIT as a public company.” The portfolio valuation increased by 2.85% to £113.85m, an uplift of £3.15m. The valuation reflects a net initial yield of 7.34%. NAV per share is now 109.3p, up from the 98p at listing after 2p per share admission costs. Max added that the increased valuation and NAV had been driven by asset management initiatives as well as yield compression. “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.” An inaugural dividend has been suggested at 2.15p. The listing of the e-warehouse REIT was the second for the M7 team, which floated its Mailbox REIT on the IPSX in May. E-Warehouse REIT started trading with a £110.7m portfolio of 17 assets located across the UK, all of which currently trade as retail warehouses. The portfolio extends to 911,641 sq ft and is let to 54 occupiers, including Matalan, Go Outdoors, Odeon, B&M, B&Q and Homebase. It has a weighted average unexpired lease term of 6.3 years.   To send feedback, e-mail piers.wehner@eg.co.uk or tweet @PiersWehner or @EGPropertyNews Image from E-Warehouse REIT