Warehouse REIT PLC on Tuesday said it has sold two warehouses for £9.5 million in total.

The London-based industrial warehouse investor said, together, the sales are 30% ahead of the March 31 book value, reflecting an average net initial yield on passing rents of 6%.

It noted that proceeds from the sales will be used to pay down debt, supporting earnings in the current financial year.

The disposals comprise warehouses in Carisbrooke on the Isle of Wight, for £3.1 million, and on Newport Road, Cardiff for £6.4 million. These assets have been in the portfolio for six and three years respectively.

‘In both cases significant asset management enhancements have been delivered and these assets are now considered non-core,’ Warehouse REIT added.

The transactions bring total sales since April 1 to £39.6 million, and £94.3 million over the last 12 months.

Simon Hope, co-managing director of the company’s investment advisor Tilstone, commented: ‘These sales demonstrate good progress on the plan Warehouse REIT set out in June. Since then, its successful capital recycling has strengthened the company’s balance sheet and earnings position, whilst refining the portfolio and allowing the company to focus on assets with the strongest opportunities.’

Shares in Warehouse REIT were up 2.9% to 80.25 pence each in London on Tuesday around midday.

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