Tritax Big Box Reit Share Discussion Threads

[tyranosaurus] 28/9/2016 08:12

This is not unexpected as they have to distribute 90% of profits.
I consider this a chance to increase my holding with no dealing costs or stamp duty.
I will be applying for more than my 1 for 11 entitlement.
Probability that offer will be increased to £250m as was the previous one.
Good yield of 4.7%

[18bt] 28/9/2016 07:30

Another Open Offer - this company has a large appetite for equity, so the investing technique seems to be to sell out just before the next offer and buy back in at a lower price - well done Frank!

[frankf1105] 10/9/2016 10:32

Sold out at 148 but will be jumping back in if we hit 140so hoping for a bit more of a decline

[tyranosaurus] 09/9/2016 20:54

That`s corrected the recent spike.
Now on the right price.
Any further weakness may indicate that a fund raising may be coming.
I`m not in the least bit concerned.

[gswredland] 01/9/2016 17:33

Excellent performance for a reit!

[skinny] 01/9/2016 16:16

I'm more than happy - I purchased @100.95p and more recently, @122.90p.

[chester] 01/9/2016 15:45

Nice Skinny. 29% gain since Brexit lows + divi ...

[skinny] 01/9/2016 14:06

A new high @148p.

[sogoesit] 23/8/2016 15:27

Finally got some momentum but regretting not adding on the "Brexit dip"!

[tyranosaurus] 18/8/2016 11:00

£1.40 after the 3.1p dividend is a good return for £1.24 paid in February.

Ignoring the Brexit blip the long term chart shows a 10p rise every 6 months.

As REIT`s have to pay out most of their profits in dividends there is a good chance of another share offering this year, which I shall be investing in.

[gilotron] 18/8/2016 05:43

Just keeps ticking upwards. I've not even checked what the divi is but could it be income people pushing this up? Safe as boxes.

[chester] 17/8/2016 16:07

25% increase since the low on 27th June. Nice.

[daveofdevon] 13/8/2016 07:33

Rath, sorry to disappoint you but that hefty buy was not a keen buyer. The trade type is flagged as UT which means an uncrossing trade and is an end of day cleardown of the orderbook. Just a bit of routine house keeping.

[gilotron] 13/8/2016 00:02

Yep this was supposed to be my boring share but under the radar of most peeps.

[gswredland] 12/8/2016 19:08

Interesting rath.
Shawney - thanks for link. I agree with HL there- get rich slowly - happy with that alongside racier shares

[rathlindri] 12/8/2016 18:40

Hefty buy after the bell. Someone is keen....

16:35 - 12/08
Buy 365647 141.60p £517,756.152

[skinny] 12/8/2016 11:09

And a new high @141.40p.

[sogoesit] 12/8/2016 11:00

Chronic Investor says today Jefferies says 143p NAV for 2017.

[shauney2] 12/8/2016 08:14

From HL.

We view Tritax as a "get rich, slowly" scheme

[gilotron] 11/8/2016 10:20

Liberum
UK | REAL ESTATE | BBOX LN | MARKET CAP £1.2bn | 11 August 2016

Tritax Big Box
Structural resilience

HOLD
Target price 135p | Published price 137p

H1 results were broadly in line and highlight the defensive strength of a portfolio of 28 fully occupied big box assets, yielding 4.8% with an average unexpired lease length of 16 years. H1 NAV +3% to 129p, was aided by a 2.5% LFL property gain and was just below our forecast. Earnings growth was supported by acquisitions and continued improvement in the expense ratio. Management continues to review its investment pipeline, however the completion of three post balance sheet deals highlights a clear appetite to further grow the portfolio. The shares trade on a CY16E P/NAV of 1.13x vs the UK Real Estate sector on 0.89x. We maintain a HOLD.

Broadly in line H1: NAV +3.4% & EPS +15.8%

H1 results were broadly in line with EPRA NAV +3.4% to 129p, 2% below our forecast of 132p. Adjusted EPS (EPRA + licence fee income) was +15.8% to 3.2p, 4% below our 3.3p forecast.

DPS +3.3% to 3.1p was 3% ahead of our 3.0p forecast, albeit BBOX remains committed to a progressive, fully covered dividend policy, targeting 6.2p for the full year, in line with our expectation.

LFL portfolio value +2.5%, +16.6% total to £1.53bn

A £41m +2.5% LFL revaluation gain reflected ~10bps of yield compression with the net initial yield now at 4.8%. Our current forecasts factor H2 yield expansion of ~20bps, which does not seem excessive.

The total portfolio value increased +16.6% to £1.53bn. 3 assets were acquired in H1 for a total of £177m at an average net initial yield of 5.5% (above the existing portfolio average 4.8%). Subsequent to H1 a further three deals have been announced totalling £122.7m at an average NIY of ~5.6%.

Contracted rent +14.9%, 4.7% reversion potential

Contracted rent increased 14.9% to £78.6m with reversion upside now at 4.7% (FY15: 5.2%). All leases contain upward only rent reviews offering visible earnings growth. Leases with explicit RPI linked uplifts total ~17% and provide useful inflation hedging.

The total expense ratio fell from 1.09% to 0.54%, one of the lowest in the sector, reducing income leakage. The portfolio remains fully let (or pre-let) at 100%, with a weighted average unexpired lease length of 16.3yrs, the longest of our real estate coverage.

Successful delivery of 4 pre-let forward funded developments

BBOX successfully delivered 4 forward funded developments in H1, with a total value of £271m, including the £102m, 0.6m sfqt distribution centre for Ocado in Erith. Since period end BBOX has entered into a further £56.3m forward funded agreement in Wolverhampton.

Net debt was stable in H1 with LTV down by 100bps from 33.2% to 32.2%. The Group’s weighted average margin payable on its borrowings remained at 1.42%. Substantially all of BBOX's drawn debt is hedged with an average capped borrowing rate of 2.85%.

Structural support from e-commerce

BBOX’s portfolio of 28 big box assets will continue to benefit from secular growth of e-commerce and more efficient distribution practices. The sector is not immune from greater EU referendum uncertainty, but we expect industrial to remain relatively resilient boosted by e-commerce, a lack of new supply as well as supportive demand from export-led occupiers (aided by weaker Sterling). CBRE's latest data confirmed industrial has, to date, suffered the lowest capital value shock with values falling only 2.2% in July. The shares trade on a CY16E P/NAV of 1.13x vs the UK Real Estate sector 0.89x. HOLD.

Figure 1: Summary Financials & Valuation (not updated forH1 results)

Valuation Summary (CY)
2015A
2016E
2017E
2018E
P/NAV (x)
1.10
1.13
1.11
1.07
P/E (x)
29.2
21.3
19.6
19.3
Div Yield (%)
4.4%
4.5%
4.7%
4.8%
EV/Sales (x)
27.3
19.2
18.0
18.1
EV/EBITDA (x)
33.3
22.4
20.9
21.0
EV/EBIT (x)
33.3
22.4
20.9
21.0
FCF Yield (%)
4.3%
7.0%
8.1%
8.4%





Financials (FY - Dec y/e)
2015A
2016E
2017E
2018E
Gross rental income (£m)
43.8
72.2
82.6
85.8
Net rental income (£m)
43.8
72.2
82.6
85.8
Gross to net (%)
100.0%
100.0%
100.0%
100.0%
Adj. EBITDA (£m)
35.9
62.0
71.3
73.9
EBITDA margin (%)
82.1%
85.8%
86.3%
86.1%
Adj. EBIT (£m)
35.9
62.0
71.3
73.9
EBIT margin (%)
82.1%
85.8%
86.3%
86.1%
Adj. net Interest (£m)
-8.7
-9.7
-12.5
-14.2
Adj. PBT (£m)
27.2
52.3
58.8
59.7
Adj. EPRA EPS - diluted (p)
4.7
6.4
7.0
7.1
DPS (p)
6.0
6.2
6.4
6.6
Cover (x)
0.8
1.0
1.1
1.1





Diluted EPRA NAV (p)
124.2
121.4
123.0
127.5
Net cash/(debt) (£m)
-316.4
-505.8
-611.6
-670.1
LTV (%)
27%
33%
37%
38%

[joe say] 11/8/2016 08:08

Agreed 18BT

Unusual way of wording the dividend imo - not seen this before

"payable on or around 25 August 2016"

What's with the "or around"?

[18bt] 11/8/2016 07:12

Steady results as expected. Move to quarterly dividends from Jan will help some.

[gilotron] 10/8/2016 14:40

Tritax Big Box REIT Plc (BBOX LN, BUY, PT: 150.00p, Mkt. Cap: £1.15B) First View: Kellogg's Acquisition; Snap, Crackle and Pop [Mike Prew]

BBOX has acquired a Kellogg distribution facility at Trafford Park, Manchester, for £23.5m (before costs) on an unexpired lease of 1.75yrs with a passing rent of £4.50psf and a capital value cost equiv to £75psf. This is a investment grade covenant on a highly accretive 5.9% initial yield, reflecting the short lease term but with significant rental reversionary growth on re-letting or lease re-gear. The asset will be funded from existing equity with senior debt finance introduced in the near term at a 30%-40% LTV. This is one of three Kellogg distribution and production facilities at Trafford Park close to Kellogg's largest European manufacturing facility. The asset was built to a high specification in 2007 with eaves height of c.15m, offices and extensive parking and loading facilities, with significant tenant capital investment and a gross internal floor area of 311,602 sq ft and a site cover of approximately 46%.

[skinny] 10/8/2016 08:25

The Board of Tritax Big Box REIT plc (ticker: BBOX) is pleased to announce that it has acquired the distribution centre at Kingston Park, Peterborough, let to Amazon UK Services Ltd ("Amazon") (and guaranteed by Amazon EU Sarl), for a purchase price of £42.9 million (net of acquisition costs), reflecting a net initial yield of 5.6% on the corporate acquisition. The purchase is being funded from equity proceeds, with senior debt finance expected to be introduced in the near term.

The property is one of Amazon's major distribution centres in the UK, fulfilling general merchandise online orders and groceries throughout the UK and Europe. The distribution centre has benefited from significant capital investment from the tenant with further initiatives currently underway. The property was built to a high specification in 2006, comprising an eaves height of 15 metres, offices, a secure HGV trailer park and extensive parking. The facility has a gross internal floor area of 549,788 sq ft with a low site cover of approximately 42%.

Kingston Park, Peterborough is well positioned in a core logistics location with excellent motorway connectivity across the UK, located just off junction 17 of the A1M, and links to the M1 (via A47) and A14, which provides a direct route to the Port of Felixstowe and the Midlands. Furthermore, Peterborough was the second fastest growing UK city over the last 10 years (as at 2015), thereby providing a large and growing workforce to draw from, underpinning the longevity of the area as a major UK distribution location.

The property is being acquired with an unexpired lease term of approximately 8.7 years subject to five yearly upward only rent reviews indexed to the Consumer Price Index (collared and capped at 1.5% p.a. and 2.75% p.a.). The next rent review is due in April 2020. The passing rent is c. £4.50 per sq ft with a capital value cost equivalent to approximately £78 per sq ft.

[18bt] 10/8/2016 07:44

Are these new acquistions being funded in the short term thorugh the new loan facilty agreed earlier this month or is the reason they are announcing before the results tomorrow that another placing is coming? I probably don't mind if there is another placing provided that I get the chance to subscribe again and follow my investment at a discount.