21 August 2015
Tritax Big Box REIT plc (ticker: BBOX), the only real estate investment trust giving pure exposure to very large logistics warehouse assets (“Big Boxes”) in the UK, is today reporting its interim results for the Group for the six months ended 30 June 2015.
- Our investment properties were independently valued at £1.09 billion as at 30 June 2015
(including forward funded commitments), representing an increase of £114.80 million or 11.7%
over the aggregate acquisition price (excluding acquisition costs).
- The portfolio’s contracted rental income has increased to £58.87 million per annum (30 June
2014: £20.84 million), including forward funded assets.
- Dividends declared in relation to the six months ending 30 June 2015 (the “period”) totalled 3.0
pence per share, putting us on track to meet our stated 6.0 pence per share target for 2015.
- Total return for the six month period of 10.71% compared to our target of 9% per annum for the
- We raised an additional £229 million of equity during the period, issuing 159.09 million new
shares at an issue price of 110 pence per share in March 2015, and a further 47.79 million new
shares at an issue price of 113 pence per share in June 2015, pursuant to the Company’s share
issuance programme which expired on 7 July 2015.
- We acquired eight Big Boxes during the period, three of which were forward funded pre-let
investments, expanding the portfolio to 22 assets. The acquisitions further diversified the
portfolio both by geography and by tenant.
- The weighted average unexpired lease term across the portfolio is 15.77 years, which
compares well to our target of at least 12 years.
- The average net initial yield of the portfolio at acquisition is 5.8% against our period end
valuation of 5.1% net initial yield.
- The total expense ratio for the period was 0.50%, down from 0.71% for the period from 1
January 2014 to 3o June 2014, which compares favourably with our real estate peers.
- Our portfolio was fully let or pre-let and income producing during the period.
- The Company’s shares were included in the FTSE EPRA/ NAREIT Global Developed Index
from 23 March 2015 and the FTSE 250 Index from 8 June 2015, helping to attract new
investors and support liquidity in the shares.
- Growth of the portfolio to provide a total of over 11 million sq ft of logistics space forming the
Post Balance Sheet highlights
- In July 2015 a new five year loan facility totalling £50.87 million was agreed with Landesbank
Hessen- Thüringen Girozentrale (“Helaba”) to finance the forward funded investment pre-let to
Ocado in Erith.
Richard Jewson, Chairman of Tritax Big Box REIT plc, commented:
“Our investment manager continues to identify and negotiate good opportunities to buy assets and create capital value enhancement for our shareholders, both at the point of purchase and through a variety of asset management initiatives. We will continue to build an increasingly diversified and high quality portfolio, as we deploy the equity and debt financing raised during the period.
We see the potential for further yield compression in our sub-sector and logistics more generally, especially when viewed against current gilt yields. Big Boxes are becoming increasingly central to retail fulfilment, suggesting that yields have the potential to move towards the levels historically applied to prime retail assets.
The profile of rent reviews across the portfolio means we are well placed to capture rental growth in the market. We believe that the balance of occupational supply and demand should remain favourable for landlords, leading the Group to continue to be confident of strong rental growth in the near term. The outlook for the remainder of 2015 remains strong and the Company anticipates achieving the dividend target of 6.0 pence per share for the full year.”
For further information, please contact:
Colin Godfrey (Partner, Fund Manager) via Newgate (below)
Newgate Communications (Financial PR)
Tel: 020 7680 6550
Meeting for investors and analysts and audio recording of results available
A meeting for investors and analysts will be held at 9.30am today at:
Sky Light City Tower
50 Basinghall Street
London, EC2V 5DE
In addition, later in the day an audio recording of this meeting and the presentation will also be available to download from the Company’s website: www.tritaxbigbox.co.uk
Tritax Big Box REIT plc is a real estate investment trust to which Part 12 of the UK Corporation Tax Act 2010 applies (“REIT”). The Company invests in a portfolio of well-located, modern “Big Box” assets, typically greater than 500,000 sq. ft., let to institutional-grade tenants on long-term leases (typically at least 12 years in length) with upward-only rent reviews (giving inflation linked earnings growth), and with geographic and tenant diversification throughout the UK. The Company seeks to exploit the significant opportunity in this sub-sector of the UK logistics market owing to strong tenant demand in high growth areas of the economy and limited stock supply. The Company is the first listed vehicle to give pure exposure to the “Big Box” asset class in the UK.
Further information on Tritax Big Box REIT is available at www.tritaxbigboxreitplc.co.uk