Tritax Big Box Reit Share Discussion Threads

[tyranosaurus] 13/2/2017 13:15

I agree
Now looked closer at the prospectus.
They have a wide choice of sectors to choose from.

[jonwig] 13/2/2017 10:56

LXi will be a diverse company across just about all sectors. Logistics was just one mentioned in their prospectus.

[shauney2] 13/2/2017 10:41

LXI are more diverse than BBOX.

Logicorare mooted to be floating shortly.Very similar to BBOX in that they are mainly logistics.

[tyranosaurus] 11/2/2017 11:49

I see LXI REIT plc are floating on the market doing the same thing as BBOX

[greatgiginthesky] 09/2/2017 18:48

I cannot see the NAV being much in excess of 133p at the year end, so with the share price at a reasonable premium to that I doubt there will be any fireworks with the results. But that's to be expected from a 'get rich slowly' investment.

[cheshire man] 09/2/2017 10:02

A nice rise on the chart in anticipation of solid news :-)

[skinny] 07/2/2017 13:44

Full year results on Tuesday 7 March 2017.

[nimbo1] 28/1/2017 09:49

Doesn't specifically mention tritax but this article is singing the praises of large scale logistics warehouses from an investment perspective. In a good place here in terms of income and relative capital security.

hxxp://www.thetimes.co.uk/edition/money/why-a-warehouse-is-the-place-to-stash-your-cash-5z7p7329f

[shauney2] 26/1/2017 10:11

From Citywire



The possible listing of a potential rival in Logicor is mentioned again in Shares magazine.

Tritax owns and rents out huge warehouses to well-known companies including Amazon (AMZN:NDQ) and Tesco (TSCO). A 19 January update suggested demand continues ‘unabated’.
It could soon have a larger rival with private equity firm Blackstone reported to be looking to list warehouse business Logicor on the London Stock Exchange this year, potentially attracting a value in the region of £11bn.

[jonwig] 24/1/2017 09:47

One of my brokers is buying this for their discretionary clients, and recommended it to me. We got 140.2p. (I can't find that on the trade list, though.)

[davegk] 21/1/2017 12:40

Hargreaves Lansdown View 19/1/17
hxxp://www.hl.co.uk/shares/share-research/201701/tritax-big-box-reit-demand-unabated

The Big Box is in demand. They may not be pretty, looming alongside major roads and motorways, but they are at the heart of modern logistics and e-commerce. Companies need these huge buildings to house automated goods handling equipment, keeping stock flowing through to the end point of demand as efficiently as possible.

The portfolio is let to blue chip clients on long leases, with upward-only rental reviews providing the income growth to fund a progressive dividend policy. Because the nature of what the companies use these buildings for is so fundamental to their very existence, Tritax is unlikely to suffer from unexpected vacancies. Indeed, the company has found tenants seeking to extend leases many years before their current term expires, so determined are they to retain the use of the facility.

The business is very simple; they use the experience of the executive team to build a portfolio of in-demand assets where rental growth prospects look encouraging. The debt is kept low, to limit risks. With average interest rates on debt of around 2%, using borrowings to part fund the purchase of assets that have typically offered starting yields of 5.7% makes perfect sense.

As a REIT, Tritax is obliged to pay out the majority of profits after management costs, so can't retain much cash. That limits the group's ability to fund acquisitions organically and we've seen repeated equity raises as the company continues to grow. It would be no surprise to see more shares issued this year.

We view Tritax as a "get rich, slowly" scheme. It is not trying to shoot the lights out, simply to deliver a steadily increasing dividend. At present, the shares offer a prospective yield of 4.6%.

Full Year Trading Update
Tritax's £1.9bn portfolio contains 35 Big Box assets, let to 29 tenants, and includes 10 new investments made this year. The group's current weighted average unexpired lease term (WAULT) across the portfolio is 15.3 years.
The group exchanged contracts on two forward funded developments shortly before Christmas. The developments, totalling £102m, are both pre-let to Howdens Joinery Group.
The group is targeting a full year dividend for 2017 of 6.4p (up from 6.2p in 2016, of which 4.65p has so far been paid). Loan-to-value (LTV) currently stands at of 30%, with £150m in undrawn debt facilities.

[shauney2] 19/1/2017 16:29

Cheers rustle.

[rustle2] 19/1/2017 15:51

Well, fast response from company:

Thank you for your email. We are currently uploading the proposed timetable for 2017 to the Company's website and it should be available from tomorrow morning.

Kind regards

[rustle2] 19/1/2017 15:26

So re-iterated that we move to quarterly dividends from Jan 1st but no announcements or on website about when to expect first payment or ex-div date? Have I missed this?

[ny boy] 19/1/2017 12:50

Looks a good one to park some cash, with quarterly divi payments from 01Jan this year too.

Prefer to get in around 130p though, resistance 139p & 148p, support 130p

[izztre] 19/1/2017 08:03

Tricky to understand what this update is saying since little comparison to last year

[skinny] 19/1/2017 07:09

The Board of Tritax Big Box REIT plc (ticker: BBOX) is pleased to announce the following update ahead of the publication of the Company's results for the year ended 31 December 2016 (currently expected to be released on or around 8 March 2017).

PORTFOLIO HIGHLIGHTS

· A portfolio of £1,877 million (including forward funded commitments)1 invested in 35 Big Box assets let to 29 tenants

· 33 standing assets and two pre-let forward funded developments, with a combined floor space of 18.2 million sq. ft. (of which 1.1 million sq. ft. is under construction)

· Ten new investments made in 2016, with an aggregate purchase price of £524 million

· Contracts exchanged on 23 December 2016 for two forward funded developments totalling £102 million, both pre-let to Howdens Joinery Group Plc, conditional on receiving planning consent. Planning consent is expected to be obtained in March 2017, which will further enhance the portfolio value

· 80% of assets acquired off-market since inception with average purchase yield of 5.7%

· Current weighted average unexpired lease term across the portfolio of 15.3 years2

· Portfolio 100% let with contracted annual rental income of £99.7 million as at 31 December 2016

· All leases provide for upward only rent reviews, of which 44% are open market, 35% are fixed uplift, 14% are RPI/CPI-linked and 7% are hybrid

· High quality institutional grade tenant mix with strong financial covenants - 81% of tenants are listed PLCs (61% in the FTSE 100 or FTSE 250)3

· Strong price resilience observed in the industrial logistics sector with modest capital value improvement during H2 2016

· Strong pipeline of attractively priced, off-market investment opportunities identified with several properties currently under offer


FINANCIAL HIGHLIGHTS

· Progressive dividend policy with target dividend of 6.2p per share for the year ended 31 December 2016, of which 4.65p per share has been paid for the nine months ended 30 September 2016

· Share price total return of 15.1% over 2016 compared to 10.2% for the FTSE EPRA/NAREIT UK Index over the same period4

· Extension of the Investment Management Agreement ("IMA") (earliest termination date of 31 December 2021), between the Company and the Manager, Tritax Management LLP, has resulted in a reduction of the management fee at new upper bands and lowers the Company's total expense ratio.

· Successful oversubscribed £350 million equity issue in October 2016

· £691.5 million of committed debt financing in place of which £541.5 million is currently drawn (30% LTV)

· Weighted average term to maturity of debt facilities of 4.8 years as at 31 December 2016, increasing to 5.6 years with extension options

· Current blended margin payable of 1.43% above three month LIBOR or the referenced GILT rate and a weighted average capped cost of borrowing of 2.82%

· Market capitalisation of £1,542 million4; FTSE 250, FTSE EPRA/NAREIT and MSCI index constituent

· £3.5 million average daily traded value in 2016; £5.2 million average daily traded value post the October 2016 equity raise5

more.....

[tyranosaurus] 09/1/2017 18:21

Tesco are moving out of their Chesterfield distribution centre.
This appears to be one of BBOX`s sites.
Lease runs to 2020.

[greatgiginthesky] 31/12/2016 16:13

355, 364 and 366 all look prescient now.

[cheshire man] 30/12/2016 12:52

Good end to the year here for BBOX :-)

[bit thick] 30/12/2016 12:49

"0rient - 8 Dec '16 - 11:12 - 484 of 500 1 0
OMG..an up day!! It's been a while :-)

140p by xmas ;-) ha ha"

139 by new year is OK with me!! Good call Orient

[steptoes yard] 30/12/2016 10:33

Tremendous performance in the last few days. And big thanks to Shauney for some quality Xmas reading.

[rathlindri] 30/12/2016 10:07

Our Christmas rally has come a bit late, but is very welcome nonetheless

[speedsgh] 29/12/2016 11:17

Yes, thanks Shauney. Thought the following comment was particularly noteworthy...

“At some point soon the value of industrial may go down, but the income from rent will remain.”