The urban warehouse market is compelling for asset owners and presents us with significant opportunities for long-term value creation, through further growth in the portfolio enhanced by active asset management.
Urban warehouses are critical to a wide range of businesses, from small manufacturers to multinational companies. The structural shift from high street retail to e-commerce is a key driver of demand for warehouse space, increasing competition for available units.
Capital values for small and medium‑sized warehouses are typically well below replacement cost, making it uneconomic to develop new assets in many areas. Combined with strong occupational demand, this means there is limited supply of urban warehouse space available to let in attractive locations.
The demand and supply imbalance, coupled with the benefits of our active asset management and the strong reversionary potential in the portfolio, are contributing to robust rental growth each year.
We have an experienced Board and a highly knowledgeable Investment Advisor, Tilstone Partners Limited (“Tilstone”), which gives us a deep understanding of the sector and a wide network of industry contacts.
We continue to see good opportunities to acquire assets at below their replacement cost, while further diversifying our income and strengthening the portfolio’s sustainability, quality and growth prospects.
Progressive dividends and strong returns
Our diversification by tenant, lease length and geography reduces risk and gives us a sustainable income stream, allowing us to reward shareholders through attractive and progressive dividends. These dividends, along with capital growth, contribute to a total return target of 10% per annum.