Tritax Big Box Reit Share Discussion Threads

[janeann] 26/4/2017 07:45

see pg 37 of the link speedsgh kindly posted!

[saj3] 26/4/2017 07:25

Does anyone know how long you have to take up the offer?

[nimbo1] 25/4/2017 20:58

many thanks - for some reason i couldn't find it - probably being inept : )

[speedsgh] 25/4/2017 15:58

nimbo - see pg37 Expected Timtable on the prospectus...

[nimbo1] 25/4/2017 15:53

Anyone know what the timetable is?

[jonwig] 25/4/2017 06:22

Citywire:

A £200 million equity raise by property fund Tritax (BBOX), which invests in ‘big box’ large logistics warehouses, will help strengthen the income potential, says Jefferies.

Analyst Mike Prew retained his ‘buy’ recommendation and target price of 165p on the stock after the company said it was seeking to raise £200 million of new equity at a share price offer of 136p to fund a pipeline of ‘attractive investment assets’, including three assets in advance negotiations. It currently has 36 assets and a commitment to forward funded developments for Howdens.

Prew said the investment would spread the fixed operating costs over a large base.

‘At full-year 2016, the company detailed that the big box market remained strong with income growth potential,’ he said.

‘The tenant line-up reads like an AAA corporate bond portfolio with 25 assets of which 80% have been bought off market and the low-risk income trisected between the foundation assets of the portfolio, value add, and growth, and the longest income in the UK Reit sector with only 6% of rent expiring in five years.’

[skinny] 24/4/2017 14:53

Numis Hold 140.20 136.00 136.00 Retains

[jonwig] 24/4/2017 14:45

gig - "value-accretive over the medium term" is one of those things every company says. So the day when one doesn't, because it's obvious, is the day they'll get a pile of e-mails and phone calls.

[greatgiginthesky] 24/4/2017 14:10

Interestingly, the three potential purchases are stated as being "value-accretive over the medium term". Well, aren't all purchases meant to be? It will be very interesting to see what yields the purchases are being made on and if the introduction of debt funding will make them income-accretive as well (after accounting for the dividend cost of servicing the new shares).
Regrettably, I will not be taking up my allocation this time. I applied for extra shares in the last issue and am now full of BBOX. Good luck all.

[joe say] 24/4/2017 11:12

Fair points gents

[n0rbie] 24/4/2017 10:36

Great opportunity to top up at a discounted price, will be taking my full open offer entitlement and hoping for more in the placing, but it is highly likely to be scaled back and heavily oversubscribed as in past raises.

[salchow] 24/4/2017 10:00

Joe Say - why would you worry about that possibility? No one would have been holding at 147p on Friday if they were concerned about reversion to NAV. Of course, had I expected this I would have preferred to have sold on Friday and then bought in again at a lower price. This will depress the price for a short while but it will recover.
If it recovers as quickly as Segro recently did following its placing then it will be good news.

[nimbo1] 24/4/2017 09:55

Firstly as they are trading above NAV, which means their shares are in demand - the company know they can access more money. From the companies perspective their aim is to keep growing bigger.

This is the first time a raise has been conducted at a premium to the NAV which is also beneficial to existing holders, granted it doesn't move the needle much. (ignoring the short term inevitable fall in the share price). The share price will probably do what it always does, go down a bit and then recover as if they use the dosh well again it will be earnings enhancing per share.

[joe say] 24/4/2017 09:41

Nimbo - why would you though - the risk is always that the share price reverts to or even below the NAV?

[shauney2] 24/4/2017 09:18

"The Directors have the ability to increase the size of the Issue to up to £350 million"

[nimbo1] 24/4/2017 09:13

Companies whose share price exceeds the NAV can never resist raising more money at or above the NAV. I'll be taking up my allocation.

[tyranosaurus] 24/4/2017 08:12

No mention of whether this offer will be increased to meet demand, as the previous one was.
I am surprised that this offer has come this soon.
Is this the first offer to be at a premium to NAV ?

[jonwig] 24/4/2017 07:44

The offer looks too good to pass over, and I'd expect it to be oversubscribed. It's also considerate of them to make it at the start of the new ISA season, when individual investors won't be cash-constrained. (Or maybe just a lucky accident!)

[skinny] 24/4/2017 07:16

The Board of Directors of Tritax Big Box REIT plc (ticker: BBOX) has today declared an interim dividend in respect of the period from 1 January to 31 March 2017 of 1.60 pence per ordinary share, payable on or around 22 May 2017 to shareholders on the register on 5 May 2017. The ex-dividend date will be 4 May 2017.

This dividend will be a Property Income Distribution ("PID").

The Company is targeting an aggregate dividend of 6.40 pence per ordinary share for the year ending 31 December 20171, payable quarterly, representing a 3.2 per cent. increase in the total dividend of 6.20 pence per Ordinary Share declared for 2016, in excess of the rate of RPI inflation for the period from 1 January 2016 to 31 December 2016. Dividends are expected to be fully covered by Adjusted Earnings from the Company's portfolio of properties.



Issue highlights

· The Issue, which is not underwritten, comprises the Placing, Open Offer and Offer for Subscription, of, in aggregate, up to 147,058,823 New Shares at the Issue Price of 136 pence per New Share (based on the target size of £200 million).

· The Issue Price represents a discount of 6.6 per cent. to the closing price of 147.2 pence per Existing Ordinary Share as at the close of business on 21 April 2017, net of the Q1 2017 interim dividend of 1.60 pence per Ordinary Share described below and a premium of 6.7 per cent. to the audited EPRA Net Asset Value per Existing Ordinary Share (129.00 pence as at 31 December 2016), net of the interim dividend of 1.55 pence per Ordinary Share paid on 3 April 2017.

· The New Shares will rank pari passu in all respects with the Existing Ordinary Shares, save in respect of the Q1 2017 dividend of 1.60 pence per Ordinary Share declared today for the three month period to 31 March 2017.

· Under the Open Offer, up to an aggregate amount of 100,517,096 New Shares will be made available to Qualifying Shareholders at the Issue Price, pro rata to their holdings of Existing Ordinary Shares, on the basis of:

1 New Ordinary Share for every 11 Existing Ordinary Shares held on the Record Date.

· The balance of New Shares to be made available under the Issue together with New Shares not taken up pursuant to the Open Offer will be made available for subscription under the Excess Application Facility, the Placing and the Offer for Subscription.

· The Placing and Offer for Subscription are subject to scaling back at the discretion of the Directors. The Open Offer is not subject to scaling back in favour of the Placing or the Offer for Subscription.

· The Issue, which is not underwritten, is conditional, amongst other things, upon the passing of the Resolutions at the General Meeting, Admission of the New Shares occurring no later than 8.00 a.m. on 15 May 2017 (or such later time and/or date as the Company and Jefferies may agree) and the Placing Agreement not being terminated and becoming unconditional in accordance with its terms. If these conditions are not met, the Issue will not proceed and an announcement to that effect will be made via a Regulatory Information Service.

· Application will be made for the New Shares to be admitted to the premium listing segment of the Official List of the FCA and to trading on the London Stock Exchange's main market for listed securities.


Benefits of the Issue

The Directors believe that the Issue will have the following principal benefits for Shareholders:

· the net proceeds of the Issue will be used to make additional investments in accordance with the Company's investment criteria, further diversifying the Company's Portfolio in terms of both tenant exposure and geographical location and capitalising on the Company's leading position in the UK Big Box logistics market;

· an increase in the size of the Company should improve liquidity and enhance the marketability of the Company's Ordinary Shares, resulting in a broader investor base over the longer term; and

· an increase in the size of the Company will spread its fixed operating expenses over a larger capital base, which should reduce ongoing expenses per Share.

more.....

[gilotron] 07/4/2017 13:58

Yea i think isas

[tyranosaurus] 07/4/2017 13:13

Third time at this price. Is it third time lucky or will it fall back next week ?

There could be new ISA money being invested here

[18bt] 07/4/2017 10:08

Dividend reinvestment?

[nimbo1] 07/4/2017 10:04

seems to be repeating the trick.

[cheshire man] 31/3/2017 15:50

Tipped maybe ? very nice end to the week tho :-)