Tritax Big Box Reit Share Discussion Threads

[18bt] 07/3/2018 09:11

It makes that land at Dartford more valuable c25m sq ft, say density 50% =12m sq ft of Box space look a very good purchase.

[malcolmmm] 07/3/2018 08:40

Good results,looking forward to the ever increasing dividend and sp

[jonwig] 07/3/2018 07:30

Gosh, so they did!

Despite the uncertainties it brings, Brexit may provide a silver lining, since with increased border controls our Customers will require more warehousing domestically, further supporting our business case.

[18bt] 07/3/2018 07:26

No - Tritax!

[jonwig] 07/3/2018 07:24

@ 18BT - which company said Brexit would be positive for the property sector? (A demolition company, surely?)

[18bt] 07/3/2018 07:19

Shares currently standing at discount to YE NAV on basis of results. Should provide underpin to price. One company commenting that Brexit brings a positive to the property sector! c4.75% prospective yield, but expectations that total return should be v attractive yet again in 2018.

[skinny] 07/3/2018 07:07

Financial highlights

· Dividends declared in relation to 2017 totalled 6.40 pence per share, in line with our target.

· EPRA net asset value per share increased by 10.3% to 142.24 pence at 31 December 2017 (31 December 2016: 129.00 pence).

· Total return (being the increase in EPRA NAV plus dividends paid) for the year was 15.2%, compared to our target of in excess of 9% per annum over the medium term.

· Adjusted earnings per share totalled 6.37 pence per share.

· Market capitalisation of £2.03 billion as at 31 December 2017.

· Portfolio independently valued at £2.61 billion as at 31 December 2017, across 46 assets plus 114 acres of strategic land.

· The portfolio's contracted annual rent roll has increased to £125.95 million (31 December 2016: £99.66 million), which includes all forward funded commitments.

· Further diversified our sources of borrowing, with our debut unsecured loan notes totalling £500 million. Weighted average unexpired debt term extended to 8.9 yrs (2016: 4.8 yrs). The Loan to Value (LTV) as at 31 December 2017 was 26.8%.

· A reducing EPRA cost ratio of 13.1% (2016: 15.8%), reflecting the benefits of increased scale.

· Raised £350 million of equity during 2017, through a substantially oversubscribed share issue.

Operational highlights

· Acquired 11 Big Boxes during the year with an aggregate purchase price of £434.99 million, further diversifying the portfolio by geography and tenant.

· As at the year-end our portfolio comprised 46 assets, covering more than 22.7 million sq ft of logistics space.

· 114 acres of strategic land acquired at Littlebrook, Dartford for £62.5 million.

· Average net initial yield of the portfolio at acquisition is 5.7%1, against our year-end valuation of 4.6%.

· 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 13.9 years1, against our target of at least 12 years.

Post Balance Sheet Activity

· Progressive dividend target of 6.70 pence per share announced for 2018.

· A further three Big Box assets acquired totalling £139.81 million.

· One pre-let forward funded asset conditionally exchanged totalling £81.8 million.

1 Includes all 46 assets held at 31 December 2017; excludes Littlebrook, Dartford strategic land.

Richard Jewson, Chairman of Tritax Big Box REIT plc, commented:

"We have a sector-leading portfolio of UK Big Box assets that are benefiting from structural change driven by increasing e-commerce penetration, and the operational and financial benefits which they can provide to our Customers. The fundamentals of our market remain positive and are largely unaffected by current geopolitical and economic uncertainties. Despite the uncertainties it brings, Brexit may provide a silver lining, since with increased border controls our Customers will require more warehousing domestically, further supporting our business case.

Through the Manager's excellent relationships, we see opportunities to acquire high-quality assets and forward-funded developments to further diversify our portfolio. The continued imbalance between occupational supply and demand means that we expect rental growth and values to remain robust in 2018. The assets we acquired towards the end of 2017 will add to our rental income in 2018. Coupled with our largely fixed cost base, this will contribute to earnings growth and support our progressive dividend target of 6.70 pence for 2018."

[tyranosaurus] 06/3/2018 13:21

It would be an obvious time to announce another fundraising.
If so then what price will they offer them, and will there be an entitlement for current holders this time ?
This makes a rather predictable set of figures more interesting.
Roll on tomorrow.

[johnv] 05/3/2018 17:55

Buying thro Barclays is fun, they make you answer a questionnaire on REIT, before allowing you to purchase

[gswredland] 05/3/2018 16:49

Another fund raising exercise to be announced Wednesday?

[malcolmmm] 05/3/2018 09:59

There was a good write up in The Momentum Investor and they have added BBOX to their portfolio which they don't do lightly. Results out on 7th March .They also have a very good div.Seems a good way to invest in e-commerce expansion to me.

[johnrxx99] 20/2/2018 07:47

By the way, I am invested here.

[johnrxx99] 20/2/2018 07:47

@jonwig - the problem in 2007-9 was not the lowering of interest rates but the solvancy of the banks. All loan agreements have a force majeure clause, which called in the loans. Unless you have personally read the loan agreements, I would be so sure of their terms.

[aishah] 07/2/2018 09:58

Picked up a chunk during this weakness.

[skinny] 06/2/2018 07:23

FORWARD FUNDED INVESTMENT IN A NEW PRE-LET LOGISTICS FACILITY AT MIDLANDS LOGISTICS PARK, CORBY FOR £81.8 MILLION

The Board of Tritax Big Box REIT plc (ticker: BBOX) is pleased to announce that it has exchanged contracts, conditional on receiving full planning consent, to provide forward funding for the development of a new regional distribution centre at Midlands Logistics Park ("MLP"), Corby. The development asset is pre-let to Eddie Stobart Limited ("Eddie Stobart"), one of the UK's leading logistics businesses working across the full supply chain in the UK and Europe, a wholly owned subsidiary of ESLL Group Limited, which will act as guarantor. The development represents an investment of £81.8 million.



The site forms part of MLP, a new logistics park to the south of Corby in the East Midlands with direct access to the A43 dual carriageway, which has recently been upgraded and provides significantly improved access to the M1 southbound, M6 and A1(M). MLP is capable of accommodating approximately 2.6 million sq ft. of logistics space with outline planning permission granted. Eddie Stobart is the first tenant to commit to a new facility at MLP, which has a 500-metre rail siding and yard, allowing potential future connection to the rail network. This bi-modal potential capacity of MLP would provide enhanced connections for the site to the UK's ports and cities. Corby has attracted a number of major occupiers including British Car Auctions, Morrisons, Matalan, Smyths Toys, Staples and Eddie Stobart's iForce business.

The property will be purpose-built to a high specification, with a gross internal floor area of 844,000 sq ft. and an eaves height of 18 metres, together with extensive parking.

Upon practical completion of the construction, targeted for winter 2018, the property will be leased to Eddie Stobart on a new 20-year lease, subject to five yearly upward only rent reviews indexed to the Retail Price Index, with a cap and collar. The first rent review is due in 2023. From completion of the land purchase and during the construction phase, the Company will receive an income return equivalent to the rent.

Colin Godfrey, Partner of Tritax, commented:

"We are very pleased to be investing in this new regional distribution centre pre-let to Eddie Stobart, an established 3PL operator with long standing customer relationships. This is the first development in a new East Midlands logistics park south of Corby, which is benefiting from recent significant upgrades to the adjacent road network and offers the potential for rail connectivity. The off-market investment further diversifies the Company's portfolio by geography and tenant, whilst increasing the Company's WAULT."

[jonwig] 01/2/2018 09:28

@ johnrxx - around 90% of their borrowings are either fixed or hedged with swaps, etc.

This was the undoing of the property sector in 2007-9 when interest rates plunged. If you think the BoE is going to go into aggressive negative rates to fight the next recession you might have a point.

[johnrxx99] 01/2/2018 09:13

As long as interest rates stay stable this is OK. If they rise too much, their stuffed.

[skinny] 31/1/2018 15:10

Liberum Capital Hold 148.95 150.00 150.00 Reiterates

[skinny] 31/1/2018 07:25

The Board of Tritax Big Box REIT plc (ticker: BBOX) is pleased to provide the following trading update ahead of the publication of the Company's results for the year ended 31 December 2017, which are to be published on Wednesday 7 March 2018.



HIGH QUALITY PORTFOLIO FOCUSED ON BIG BOX LOGISTICS ASSETS

· Acquired 11 new Big Box investments in 2017 (including one pre-let forward funded development), with an aggregate purchase price of £435 million, along with 124 acres of prime London distribution development land for a total consideration of £62.5 million (excluding purchaser's costs)

· Four pre-let forward funded developments, totalling 2.0 million sq ft., reached practical completion in 2017

· As at 31 December 2017, £2.46 billion1 (including forward funded commitments) invested in a portfolio of 46 Big Box assets (the "Portfolio") as well as the 124 acres of development land at Littlebrook, Dartford

o Portfolio 100% let or pre-let to 36 institutional quality tenants with contracted annual rental income of £124.6 million and all leases provide for upward only rent reviews2

o Weighted average purchase yield since inception of 5.7%2

o Weighted average unexpired lease term across the portfolio of 13.9 years2

· Since 31 December 2017, a further 3 Big Box assets have been acquired with an aggregate purchase price of £139.8 million, increasing the Portfolio to a total of 49 assets and extending the weighted average unexpired lease term across the portfolio to 14.5 years2

FINANCING ACTIVITY REDUCING COST OF DEBT AND EXTENDING MATURITY

· Debut issue of £500 million senior unsecured loan notes, with an average term of 11.5 years, rated Baa1 by Moody's following the establishment of a £1.5 billion Euro Medium Term Note Programme

· New five-year £350 million unsecured revolving credit facility, with an uncommitted £200 million accordion option, and the repayment in full of £550 million secured syndicated facility due 2020 and £7.0 million and £11.6 million Helaba facilities due 2019

· Weighted average term to maturity of debt facilities of 8.9 years as at 31 December 2017 (4.8 years as at 31 December 2016). Weighted average running cost of debt of 2.38% pa4, primarily comprising fixed rate debt

· Successful significantly oversubscribed £350 million equity issue in May 2017



PROGRESSIVE DIVIDEND POLICY

· The Company is targeting an aggregate dividend of 6.4 pence per share for the year ended 31 December 2017, payable quarterly, of which 4.8 pence per share has been paid for the nine months ended 30 September 20173

· Consistent with its progressive dividend policy, the Company today confirms it is targeting an aggregate dividend of 6.7 pence per ordinary share for the year ending 31 December 20183:

o A 4.7% increase over the dividend target of 6.4 pence per Ordinary Share for 2017

o In excess of the rate of RPI inflation over the 12 month period to 31 December 2017

o Dividends are expected to be fully covered by Adjusted earnings from the Company's portfolio

Colin Godfrey, Partner of Tritax, said:

"We continue to implement the Company's strategy, further diversifying our portfolio by geography and tenant whilst remaining patient and disciplined in our approach. During 2017, whilst maintaining a high proportion of Foundation assets to underpin the portfolio's core, low-risk income (74% of the portfolio by value), we have also sought to selectively acquire some Value Add opportunities, which included 124 acres of prime development land at Dartford, which offer the potential to deliver further value to our shareholders in 2018 and beyond.

Our increased scale brought further strategic benefits including the issuance of our £500m debut unsecured loan notes, which nearly doubled our average term to maturity at an attractive fixed cost of debt.

The compelling fundamentals of our market remain largely undisturbed by the ongoing uncertainties associated with the economic and geopolitical backdrop. The weight of occupier and investor demand for Big Box logistics assets, coupled with a lack of meaningful supply, ensured that values and rental growth remained robust during 2017, with evidence suggesting that such attractive dynamics are likely to continue to support the performance of the sector into 2018."

[skinny] 18/1/2018 07:50

ACQUISITION OF THE AO WORLD PLC NATIONAL DISTRIBUTION CENTRE

AT WESTON ROAD, CREWE, CHESHIRE FOR £36.10 MILLION

The Board of Tritax Big Box REIT plc (ticker: BBOX) is pleased to announce that it has acquired a National Distribution Centre at Weston Road, Crewe, Cheshire. The property is let to Expert Logistics Ltd ("Expert Logistics"), a wholly owned subsidiary of AO World Plc ("ao.com"), a leading European online electrical retailer listed on the London Stock Exchange, which will act as guarantor. The total consideration is £36.10 million.

Built in 2006, this modern, high specification cross docked facility is located diagonally opposite the tenant's other distribution facility and together form ao.com's UK National Distribution hub. The versatile property, which has benefited from significant capital investment by the tenant, has a total gross internal area of 387,541 sq ft., an eaves height of 12.5 metres, an extensive yard area and parking, with a site cover of 49%.



The facility is strategically positioned in a core national distribution location, with excellent access to the M6 and M1 via the A50 dual carriageway, with good connectivity to Manchester and Liverpool airports and the Port of Liverpool. The immediate location has attracted major logistics occupiers including Bargain Booze, Bentley Motors Limited and Rymans.

The property is being acquired with an unexpired lease term of approximately nine years, which is subject to five yearly upward only open market rent reviews. The next rent review is due in April 2021.

DTRE represented the Company on the acquisition.


Colin Godfrey, Partner of Tritax, commented:

"This dedicated e-commerce facility, which plays an integral role in ao.com's national distribution network, further diversifies our portfolio by tenant and geography. Against the backdrop of strong tenant demand and the limited supply of modern Big Box National Distribution assets, this investment offers the potential for attractive rental growth in 2021."

[johnrxx99] 15/1/2018 09:28

Quality sheds should be 6-8% but if you want to fund in an off market deal for 30 year leases probably about right. No mention of break clauses. These things are hard to find.

[tyranosaurus] 15/1/2018 08:32

Underwhelming acquisition on yield of 5.0%

[skinny] 15/1/2018 07:05

COMPLETES CONTRACTS ON THE FORWARD FUNDED INVESTMENT IN TWO NEW DISTRIBUTION FACILITIES AT WARTH PARK, RAUNDS, NORTHAMPTONSHIRE

PRE-LET TO HOWDEN JOINERY GROUP PLC

The Board of Tritax Big Box REIT plc (ticker: BBOX) is pleased to announce that the Company has completed contracts for the site acquisition and forward funding for the development of two new distribution warehouse facilities at Warth Park, Raunds. The properties are pre-let in their entirety under two separate 30 year leases to Howdens Joinery Group Plc ("Howdens"), the parent group of the leading supplier of kitchens in the UK.

Contracts were originally exchanged, conditional on planning consent, in December 2016. Completion was delayed due to a prolonged challenge to the planning consent which has now been cleared. The agreed investment price has been amended to £103.7 million, to reflect a longer construction period due to the delayed planning consent and revised construction programme. The purchase price represents a net initial yield of 5.0% (net of land acquisition costs) upon completion of the leases.

Warth Park, at Raunds, Northamptonshire is strategically located on the A45 corridor close to J13 of the A14, which provides access to the ports of Felixstowe and Harwich and also directly links to the A1(M) dual carriageway and the M1 motorway. The two distribution facilities, which will stand adjacent to one another and to the Company's existing Howdens facility, are under separate freehold titles and will be completed to a high specification with target gross internal floor areas of 657,000 sq ft and 300,000 sq ft., respectively.

Both buildings will have an eaves height of 15 metres and a combined site cover of approximately 53%. Completion of the construction of the two facilities is due to take approximately 21 months with completion of the two new leases expected by winter 2019.

Colin Godfrey, Partner of Tritax, commented:

"Following the successful completion of the first Howdens building, which the Company agreed to forward fund in September 2015, we are delighted to be investing on the second phase of Howdens' two new distribution centres. Once completed, these three high specification facilities totalling 1.6 million sq ft will provide Howdens with a 'centre of excellence' for its national supply chain operations.

This investment is in an established logistics location with a strong covenant, adds to our portfolio's core foundation income and brings our total portfolio to 48 assets."

[cheshire man] 03/1/2018 11:11

Let's get a breakout this time :-)

[skinny] 03/1/2018 10:48

Looking to try 150 again (high was/is 151.40p)