Worth a read :- |
Lets hope it helps increase my credit rating |
Big UT today |
This is interesting - shows that there is an appetite for the steep discounts:
hxxps://citywire.com/wealth-manager/news/tritax-eurobox-leaps-as-brookfield-prepares-bid-for-undervalued-assets/a2443674 |
Prefer API, SHED and CREI, however
bought a small amount. |
FWIW :- Berenberg raises Tritax Big Box price target to 182 (175) pence - 'buy' |
FWIW :- Deutsche Bank starts Tritax Big Box with 'buy' - price target 190 pence |
The blurb from the trading update is
' The liquid nature of the non-strategic parts of the UKCM portfolio is reflected in the number of inbound enquiries we have received which will facilitate the accretive rotation of capital into the development of brand new best-in-class logistics assets.'
This seems to suggest they intend to build not buy, but it's deliberately vague wording to allow them wiggle room |
Sadly I got in at about current price, and do Divi re-investments.
As soon as interest rates start to tick down and gilts start to get sold (if/when/caveat etc) this will become more appealing for income, and so the price will go up.
That is my strategy - and until then I'll take the tactical Divi's.
I do agree that the price atm is below fair NAV, significantly, so there is a lot of room for movement.
Now that UKCM shares are cancelled, I am all ears about their plans for the UKCM assets though - which so far are as clear as mud tbh. We could do with something stating intentions IMHO. Are they gonna sell up non Dist' assets and pay down debt, buy assets, build etc etc - |
Fair dollop |
Good managers, have held both but not for a very long time... good value territory? (Ignore the house broker... ) |
Good update and thats before the UKCM integration is factored in. |
I wasn’t in then, but presumably the rise was a “post covid everything will be bought online” rise ? |
Pretty much the same here - though as I remember you bought in before me and quite a bit lower - my first were at 140 It was a good seemingly inexorable rise for a couple of years till it dived. Managed to trade a few times on the way down which limited the damage somewhat. A good move selling at 243. |
Income apart, its been a good long term hold for me.
I bought in 2013 @100.95, a few in 2016/17 in the 130s and @82.85 in 2020.
I sold a fifth of my holding in Feb 2022 @243p and may add again. |
210 would be worth a lot to me though the 250 I had in 2022 would be better |
FWIW :- Jefferies reinitiates Tritax Big Box with 'buy' - price target 210 pence |
 Stable yields and resilient occupational market
· Total UK market take up in Q1 2024 was 4.5 million sq ft (Q1 2023: 6.6 million sq ft); increase in under offer to 14.2 million sq ft (Q4 2023: 11.1 million sq ft).
· UK market vacancy at 5.3% (Q4 2023: 5.1%). Speculative space under construction continues to decline and now stands at 9.5 million sq ft (Q4 2023: 12.3 million sq ft).
· MSCI UK Industrial1 ERVs increased by 1.1% in Q1 2024.
· Prime market yields stable at 5.25% as at Q1 2024 (Q4 2023: 5.25%).
Development completions increasing portfolio passing rent
· £7.4 million added to passing rent from 0.8 million sq ft of practical completions in period.
· £1.3 million added to annual contracted rent from 0.1 million sq ft of development lettings.
· £14.7 million of potential new lettings in solicitors' hands covering 1.5 million sq ft.
· 0.9 million sq ft of construction starts, of which:
o 0.5 million sq ft of construction starts commenced across two sites;
o 0.4 million pre-sold and being developed for Siemens Healthineers (DMA contract) at Oxford and provides the potential for accelerated delivery across the site.
o DMA income is now expected to exceed £15.0 million for 2024.
· 1.0 million sq ft of new planning consents secured bringing total consented undeveloped land portfolio to 6.5 million sq ft.
· 6-8% yield on cost guidance maintained with 2024 schemes targeting an average of 7.0%.
Actively managing our portfolio and selectively acquiring attractive investment opportunities
· £2.4 million added to annual contracted rent from rent reviews and asset management initiatives.
o 10.7% increase in passing rent across 5.7% of the portfolio subject to lease events;
o 23.9% of the portfolio is subject to lease events during the remainder of the year;
· Capturing rental reversion at or above our original expectations in recently acquired J6, Birmingham and Enfield, London urban parks delivering a 43% increase in rental income since acquisition in July and August 2023 respectively.
· £46 million acquisition of 479,000 sq ft cold store in key East Midlands location let to Co-op:
o 5.75% NIY and 7.3% reversionary yield;
o 8.5 years unexpired lease term with 3.5 years to next rent review;
o BREEAM rating "Excellent", EPC B and 15 metres eaves height.
High-quality portfolio underpinning resilient income
· Portfolio let to a diverse range of institutional grade occupiers on long dated leases.
· 100% rent collection maintained.
· 11.1 years portfolio WAULT.
Continued balance sheet strength with additional funding capacity2
· Loan to value at end Q1 2024 of 29.3%.
· Current weighted average cost of debt of 3.1%.
· 4.7 years average debt maturity.
· In excess of £550 million of current available liquidity.
Directors and Manager intention to purchase shares
The BBOX Directors and members of Tritax Management LLP (the "Manager") have been restricted from purchasing BBOX Shares recently due to regulatory requirements, other than in respect of existing contractual arrangements and non-discretionary trades. Following today's announcement certain BBOX Directors and members of the Manager confirm that they intend to purchase shares in the Company today. |
It's accretive given the FFO multiples BBOX are trading at v what they are buying |
Number of new shares is easy as it's in the prospectus (+23.3% or Up to 576,939,135 new shares).The current share price gives a fair idea of how the market values BBOX as the deal has now been voted through and will come into effect on mid May. Combined MVAL approx 2.48bn total shares x current share price |
Dividend declaration:'interim dividend in respect of the period from 1 January 2024 to 31 March 2024 of 1.825 pence per ordinary share, payable on or around 7 June 2024 to shareholders on the BBOX share register on 24 May 2024. The ex-dividend date will be 23 May 2024' |
~ Q1 div of 1.825p declared. Whole amount to be paid as a PID.
~ BBOX/UKCM merger approved. It is currently expected that UKCM shareholders will have been issued with new BBOX shares prior to record date for BBOX Q1 div payment.
Dividend Declaration -
The Board of Directors of Tritax Big Box REIT plc (ticker: BBOX) has declared an interim dividend in respect of the period from 1 January 2024 to 31 March 2024 of 1.825 pence per ordinary share, payable on or around 7 June 2024 to shareholders on the BBOX share register on 24 May 2024. The ex-dividend date will be 23 May 2024.
In accordance with the Company's dividend policy, the first, second and third quarter dividend payments will each represent 25% of the previous financial year's annual dividend which, for the year ended 31 December 2023 amounted to 7.30 pence per ordinary share. The level of the fourth quarter dividend will be used to determine any potential dividend progression, with an overall aim to achieve a pay-out ratio in excess of 90% of Adjusted earnings.
This dividend will be a Property Income Distribution ("PID").
---------------------
BBOX and UKCM announced on 1 May 2024 and 2 May 2024, respectively, that BBOX had received the requisite approvals from BBOX Shareholders and UKCM had received the requisite approvals from UKCM Shareholders in connection with the Combination.
Completion of the Combination remains subject to the satisfaction or (where applicable) waiver of the remaining Conditions and further terms set out in Part 4 of the Scheme Document, including the Court sanctioning the Scheme at the Sanction Hearing. The Sanction Hearing will take place on 16 May 2024 and it is expected the Scheme will become Effective on the same date, resulting in the issue of the New BBOX Shares to UKCM Shareholders by 8.00 a.m. on 17 May 2024. Applications have been made by BBOX for the New BBOX Shares to be admitted to the premium listing segment of the Official List and to trading on the Main Market at or shortly after 8.00 a.m. on 17 May 2024.
Accordingly, it is currently expected that UKCM Shareholders will have been issued with the New BBOX Shares prior to the record date of the BBOX Q1 Interim Dividend, being 24 May 2024. All UKCM Shareholders will therefore be entitled to the BBOX Q1 Interim Dividend, provided that they are on the BBOX share register on 24 May 2024. |
BBOX shareholders voted overwhelming for merger so with Phoenix already pledged on UKCM this ones sure a done deal. |
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