An investment in Ordinary Shares is only suitable for institutional investors, professionally-advised private investors and highly knowledgeable investors who understand and are capable of evaluating the risks of such an investment and who have sufficient resources to be able to bear any losses (which may equal the whole amount invested) that may result from such an investment.
Any investment in the Company is subject to a number of risks.
The risks below are not the only ones that the REIT Group will face. Some risks are not yet known and some that are not currently deemed material could later turn out to be material. Any of these risks could materially affect the REIT Group, its reputation, business, results of operations and overall financial condition. In such a case, the market price of Ordinary Shares may decline and Shareholders could lose all or part of their investment.
The UK economy and property market specific conditions may have a negative impact on or delay the REIT Group’s ability to execute investments in suitable Big Box assets that generate acceptable returns.
The REIT Group is exposed to risks related to the result of the referendum on the United Kingdom’s continued membership of the EU
Competition for investment property in the Big Box sector
The Company’s performance will depend on the performance of the UK retail sector
The Company’s use of floating rate debt will expose the business to underlying interest rate movements
A lack of debt funding at appropriate rates may restrict the Company’s ability to grow
The Company must be able to operate within its banking covenants
The REIT Group is dependent on the efforts of the Manager and the Investment Team
If the Company fails to remain qualified as a REIT, its rental income and gains will be subject to UK corporation tax
Trading market for the Ordinary Shares
The share price of listed companies can be highly volatile and shareholdings illiquid. The market price of the Ordinary Shares may be subject to wide fluctuations in response to many factors, some specific to the REIT Group and its operations and others to the broader equity markets in general. In addition, stock markets have from time to time experienced extreme price and volume fluctuations which could adversely affect the market price of the Ordinary Shares.
Future sales of Ordinary Shares could cause the share price to fall
Sales of Ordinary Shares by significant investors could depress the market price of the Ordinary Shares. A substantial amount of Ordinary Shares being sold, or the perception that sales of this type could occur, could also depress the market price of the Ordinary Shares. Both scenarios may make it more difficult for Shareholders to sell the Ordinary Shares at a time and price that they deem appropriate.
The Company may in the future issue new equity, which may dilute Shareholders’ equity
The Company may issue new equity in the future. Where pre-emption rights in the Articles are disapplied, any additional equity finance will be dilutive to those Shareholders who cannot, or choose not to, participate in such financing.
Default of one or more of our tenants
The default of one or more of our tenants would immediately reduce revenue from the relevant asset(s).
For further information please refer to the Company’s latest Prospectus:
Prospectus – Proposed fundraising April 2017