Blackstone has made a final indicative all cash bid to the board of Warehouse REIT of 115.0 pence per share, valuing the company at £489m.
This follows a proposal for the company of 110.5 pence in early March made by Blackstone and fellow US private equity company Sixth Street.
The new indicative offer (which has been made by Blackstone alone) still includes Warehouse REIT’s third quarterly dividend of 1.6p (which was declared on 19 February). Warehouse REIT’s board said that it was evaluating the proposed offer and would make an announcement when appropriate.
The offer price is still a 11.1% discount to the company’s EPRA net tangible assets (NTA) per share of 127.5p (at 30 September 2024) when the dividend is taken off the offer price.
Blackstone outlined that including the dividend, the offer price of 115.0p represents:
- a premium of 39.6% to the closing price of 82.4p on 28 February 2025 (being the trading day prior to the commencement of the offer period);
- a premium of 40.2% to the one-month volume weighted average share price of 82.0p;
- a premium of 42.5% to the three-month volume weighted average share price of 80.7p; and
- a premium of 4.9% to the two-year high closing share price of 109.6p on 17 April 2023.
Blackstone said that it believed the final indicative proposal “provides a highly deliverable and compelling alternative to shareholders, attributing a full valuation for the company and its future prospects”.
It added that the financial terms of the proposal are final and will not be increased.
[QD comment: We await a response from the board, but to us this still seems too low an offer at around an 11% discount to its last reported NAV, which has shown promising signs of recovery from recent lows inflicted by a high interest rate environment.]
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