Tritax Big Box Reit Share Discussion Threads

[nimbo1] 31/3/2017 15:42

i wonder why this is so perky today. maybe no reason.

[jonwig] 16/3/2017 09:15

Yes, xd 1.55p ... so maybe this isn't, strictly, a down day just yet.

[grumpyoem] 16/3/2017 09:14

It's gone ex-dividend today that's why it's down

[wingrove4] 16/3/2017 09:10

Bought some more today. Hopefully they will recover from this, think they go ex dividend today. Usually there is a good run up to ex dividend day

[wingrove4] 16/3/2017 08:51

Buying opportunity?

[tyranosaurus] 16/3/2017 08:38

Make it 8 days in a row.

WTF

[davr0s] 15/3/2017 09:37

Down 7 days in a row since last weeks announcement. Hmmm

[essentialinvestor] 13/3/2017 18:47

Edmond Jackson has suggested BBOX holders may consider switching to Hansteen(HSTN),
as HSTN trades about 7-8% below estimated year end NAV.

I hold Hansteen and really rate it, however there are differences between
HSTN and BBOX, so not sure they are directly comparable.

[essentialinvestor] 08/3/2017 11:36

Point well made Jon.

[jonwig] 08/3/2017 11:34

EI - BBOX's latest tranche of debt is 2.54% 10 yr fix. Rates linked to LIBOR might be a problem. "Borrow now while stocks last."

[essentialinvestor] 08/3/2017 11:12

jon, hold HSTN so agree with your view, however these borrowing rates may not
be available in perpetuity, worth keeping in mind.

[steptoes yard] 08/3/2017 11:04

Thanks for replying jonwig

[steptoes yard] 08/3/2017 11:03

Agree with the 5% over the 2.5% scenario the term of the debt. I think of these how a filthy private landlord with 30 houses is placed once the debt is gone. Most of the break clauses on the loans are after the debt period (5-7 yrs). The threat is interest rates but they ain't hitting 5% anytime soon - besides the covenant is getting stronger and stronger

[jonwig] 08/3/2017 10:49

Steptoe - for a propco, having no debt makes no sense. If you can borrow at 2.5% fixed and collect rents at 5% rising, what's not to like? Shareholder returns would suffer without leverage.

That said, you can have too much, as companies with 70% LTV found in 2009. Most companies seem to have learned that 50% is a prudent ceiling, and 30 - 40 seems to be the norm.

[gswredland] 07/3/2017 19:15

Thanks Shauney

[shauney2] 07/3/2017 16:34

A good summary of the results from the DIY investor

[steptoes yard] 07/3/2017 10:19

Buying gradually into these with the aim of it being 20% of my portfolio on retirement date

[davegk] 07/3/2017 10:15

thanks for the explanation

[jonwig] 07/3/2017 10:07

dave - you've worked out the gross asset value - subtract the debt to get the net value.

[nimbo1] 07/3/2017 10:06

Yep but I assume you have to strip out the debt to get the NAV per share and if you did you would get to 129.

[davegk] 07/3/2017 10:04

A very pleasing set of results but the something I can’t quite get, hope somebody can help. It says in the results

“Portfolio independently valued at £1.89 billion as at 31 December 2016 which includes all forward funded commitments.”

And also that on 31 December 2016
“EPRA NAV per share 129.00p”

A market cap of £1.89 billion divided by the 1.11 billion shares in issue equals £1.70 per share

[cheshire man] 07/3/2017 09:46

Excellent yield here!

Progressive dividend target of 6.40 pence per share announced for 2017

I'm not complaining about the share price rise either nimbo1 :-)

[nimbo1] 07/3/2017 08:58

I really can't see it continuing to go higher but I have thought that for the last week and it keeps going higher! Its 10% of my pennies now so I will be delighted to be proved wrong.

[skinny] 07/3/2017 07:05

Financial highlights

· Dividends declared in relation to 2016 totalled 6.20 pence per share, in line with our target. Dividends fully covered by Adjusted earnings per share of 6.51 pence.

· Total Shareholder return for the period was 15.1% (based on the increase in share price assuming dividends reinvested), as compared to the FTSE 250 Index, the FTSE All-Share REIT Index and the EPRA NAREIT UK index which delivered total returns of 6.7%, (7.0%) and (8.5%) respectively.

· EPRA net asset value per share increased by 3.46% or 4.71%1 on a like-for-like basis to 129.00 pence at 31 December (31 December 2015: 124.68 pence).

· Total return (being the increase in EPRA NAV plus dividends paid) for the year was 9.6%, compared to our medium-term target of 9% per annum.

· Market capitalisation of £1.54 billion as at 31 December 2016.

· Portfolio independently valued at £1.89 billion2 as at 31 December 2016 which includes all forward funded commitments.

· The portfolio's contracted annual rent roll has increased to £99.66 million (31 December 2015: £68.37million), which includes all forward funded commitments.

· Further diversified our sources of borrowing, with a new £72 million, long-term, fixed-rate facility with Canada Life. The Loan to Value (LTV) as at 31 December 2016 was 30.0%.

· A reducing EPRA cost and total expense ratio of 15.8% and 1.06% respectively, reflecting the benefits of increased scale.

· Raised £550 million of equity during 2016, through two substantially oversubscribed share issues.

Operational highlights

· Acquired 10 Big Boxes during the year with an aggregate purchase price of £524.4 million, further diversifying the portfolio by geography and tenant.

· As at the year-end our portfolio comprised 35 assets, covering more than 18.2 million sq ft of logistics space.

· Four forward funded pre-let developments reached practical completion in the year, with a total valuation of £272.8 million at 31 December 2016.

· Average net initial yield of the portfolio at acquisition is 5.70%, against our year-end valuation of 4.93%.

· Our portfolio was fully let, or pre-let and income producing during the year.

· At the year-end, the weighted average unexpired lease term ("WAULT") was 15.3 years, against our target of at least 12 years.

Post Balance Sheet Activity

· Progressive dividend target of 6.40 pence per share announced for 2017.

· Invested in the forward funded development pre-let to Hachette UK.

· Agreed a new 10 year fixed term loan facility with a fixed rate payable of 2.54%pa.

1 Having stripped out the effect of the different timings of dividend payments between December 2015 and December 2016.
2 Excludes Howdens units II and III at Warth Park, Raunds.
* Each year makes reference to 31 December.