Latest news with #WarehouseREIT
Bloomberg
3 days ago
- Business
- Bloomberg
Blackstone Lowers Offer for Warehouse REIT, Extends Deadline
Funds managed by Blackstone Inc. have lowered an offer to purchase Warehouse REIT Plc after matters uncovered in due diligence made a previous bid unworkable, according to a statement. Blackstone submitted a final offer of 110.6 pence per share on May 19, valuing the real estate trust at roughly £470 million ($633 million), according to a statement from Warehouse REIT Friday. That's down from a previous proposal of 115 pence per share.
Yahoo
10-05-2025
- Business
- Yahoo
Why now is the perfect time to unlock passive income from UK real estate
For investors seeking passive income opportunities, few sectors are offering the stellar bargains currently in British real estate. Right now, almost every real estate investment trust on the London Stock Exchange is trading at a discount. And opportunistic investors have started to take notice. In the last couple of months, we've seen massive takeover deals being signed and rejected within this space. That includes Care REIT, which agreed to a £450m takeover, Urban Logistics REIT, which has accepted a £674m deal, and Assura at a whopping £1.6bn buyout. But not everyone is giving in to tempting takeover bids. Warehouse REIT (LSE:WHR) is one such business that rejected the recent attempt to take over its operations. This move sent its shares flying. Yet despite sitting close to its 52-week high, the shares are still trading at a 15% discount to net asset value, paying a tasty 5.9% dividend yield. Please note that tax treatment depends on the individual circumstances of each client and may be subject to change in future. The content in this article is provided for information purposes only. It is not intended to be, neither does it constitute, any form of tax advice. Since REITs have to pay the vast majority of their net rental income out as dividends, most are reliant on debt financing to expand their real estate portfolios. That was fine in the pre-pandemic days. But in 2025, with interest rates still elevated, debt is now far more expensive. And a lot of firms are struggling to cope. Pairing this with lower property prices, if businesses can't keep up with debt servicing costs, they might be forced to start gutting their real estate portfolios. In other words, the discounted valuations are a reflection of the risk of investing in debt-heavy businesses right now. However, investors haven't really been differentiating between the weak REITs and the strong. Given Warehouse REIT's firm rejection of the recent takeover attempt, it seems this stock, along with several others, belongs in the second category. At a near 6% yield, the passive income offered by Warehouse REIT in 2025 firmly beats the FTSE 100's 3.5%. And with the Bank of England steadily cutting interest rates, the group's financial performance has been slowly improving. In its last trading update, management confirmed another 25 new, renewed, or renegotiated leases with tenants totalling just shy of £3.5m in annualised contracted rent. That brings the total across the nine months leading to December 2024 to 71 customer transactions and £9m of annual rent – up 22.1% versus previous tenancy agreements. Needless to say, higher income is great news for income investors since that means there's more money to support the dividend. But it's important to highlight that the firm, like many other REITs has a significant pile of debt to deal with. As of September 2024, there's about £294m of loans & equivalents on its balance sheet, incurring around £22m in annual interest expenses. And it was this debt burden that caused institutional investors to downgrade the stock in 2024, on fears that management wouldn't be able to keep up with both interest and dividends. Despite these fears, the firm continues to pay both. To be fair, some sacrifices had to be made in its property portfolio. But the end result is its debts being refinanced and hedged to a more manageable position. And with property prices now back on the rise and interest rates falling, this strong position is set to improve throughout 2025 and beyond. That's why I've already added Warehouse REIT shares to my passive income portfolio. The post Why now is the perfect time to unlock passive income from UK real estate appeared first on The Motley Fool UK. More reading 5 Stocks For Trying To Build Wealth After 50 One Top Growth Stock from the Motley Fool Zaven Boyrazian has positions in Warehouse REIT Plc. The Motley Fool UK has recommended Warehouse REIT Plc. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. Motley Fool UK 2025
Yahoo
15-02-2025
- Business
- Yahoo
Looking for last-minute ISA buys? Here are 2 cheap UK shares to consider
It's human nature to leave certain things to the last minute. The same applies to investing, with many Stocks and Shares ISA investors waiting until the 11th hour to add to their portfolios. Here are two cheap UK shares I think are worth considering before the £20k annual ISA allowance resets on 6 April. I think it's a matter of time before the market drives their share prices higher. Some disappointing operational news has hammered Hochschild Mining's (LSE:HOC) share price in early 2025. Rising costs are an issue for Argentina's miners as inflation rockets again. In January, Hochschild predicted a rise of 5-10% in all-in sustaining costs for 2024, above forecast, and suggested further cost pressures ahead. However, I believe the scale of the sell-off could be unjustified (it's down 14% since 1 January). At 109.6p, the precious metals miner trades on a bargain-basement price-to-earnings (P/E) ratio of just 5.9 times for 2025. Its forward price-to-earnings growth (PEG) ratio, at 0.1, is also below the value watermark of 1. This cheapness is especially surprising given the overall robustness of Hochschild's earnings picture. Production remains strong at the FTSE 250 firm, with forecast-beating output at its Immaculada asset and maiden output at its Mara Rosa mine resulting in a robust final quarter in 2024. On top of this, gold and silver prices are buoyant, and are widely tipped continue soaring as worries over trade tariffs and broader geopolitical turbulence grow. Safe-haven gold hit new peaks around $2,945 per ounce this week, and is up 11% since New Year's Day. Fears over its cost base remain high. So signs of further pressure — for instance, if Argentina's inflation rate worsens — could pull Hochschild's share price lower again. But, on balance, I think the silver giant is a top bargain to think about at today's prices. While Hochschild has suffered in early 2025, Warehouse REIT (LSE:SHED) has had no such problems. Its shares have risen 4.3% in value since January 1. Ye, on paper, the property giant still looks dirt cheap to me. At 82p per share, the real estate investment trust (REIT) trades at a 37.9% discount to its estimated net asset value (NAV) per share. Its forward PEG ratio is 0.7. It also offers great value from an income perspective with its prospective dividend yield sitting at an impressive 7.8%. This, in part, reflects rules that state REITs must pay at least 90% of annual rental earnings out in the form of dividends. Please note that tax treatment depends on the individual circumstances of each client and may be subject to change in future. The content in this article is provided for information purposes only. It is not intended to be, neither does it constitute, any form of tax advice. Warehouse REIT's one of many property stocks that have jumped in 2025. They've risen on signs from the Bank of England that interest rates could fall steadily, boosting firms' NAVs and reducing their borrowing costs. Yet what goes up sharply can also fall if market sentiment changes. Prices here could dip if the interest rate outlook changes (for instance, if inflationary markers tick up again). I believe though, that this scenario's already baked into Warehouse REIT's rock-bottom valuation. For ISA investors, I think it's a great last-minute buy to consider alongside Hochschild. The post Looking for last-minute ISA buys? Here are 2 cheap UK shares to consider appeared first on The Motley Fool UK. More reading 5 Stocks For Trying To Build Wealth After 50 One Top Growth Stock from the Motley Fool Royston Wild has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. Motley Fool UK 2025
