Tritax Big Box Reit Share Discussion Threads

[jonwig] 06/5/2017 10:46

dave - that might not be a problem: one of my brokers (TDD) pays the taxed PID and the reclaim comes through about two weeks later. The other (Chas Stanley) pays them gross.
So it shouldn't mean an existing REIT holding needs to be sold.

It's just a money-saving exercise on Saxo's part - I'd find another broker.

[davegk] 06/5/2017 10:25

I agree it’s good to hold within an ISA, I am also a big fan of SIPP’s, although with these as a non-wager I am limited to £3600 gross per year, which of course any costs £2880 with my basic tax status.

I’ve recently received an email (see below) from Saxo Capital Markets saying that they can no longer accommodate REIT,s within their ISA’s, has anybody had similar problems with other ISA providers.


“Dear client
Please be informed that Saxo Capital Markets UK Ltd. (SCML) will no longer be able to offer UK Real Estate Investment Trusts (REITs) within our ISA account.

Dividends distributed by a UK REIT, commonly known as Property Income Distributions (PIDs), are typically paid with a tax rate of 20% applied. Inside an ISA the dividend can be paid tax-free.

Regrettably, it is not possible for SCML to automate the delivery tax-free PIDs. For this reason it has been decided that SCML will no longer be able offer UK REITs, until such a service can be provided. We will however work with HMRC to recover the tax you have paid so far and will credit this to your account in due course.”

[jonwig] 06/5/2017 09:01

4Win - yes, I think it's essential to hold REITs inside an ISA (or SIPP) unless you're some sort of trader. It's just not worth losing the 20% tax on PIDs.

[4wingrove] 06/5/2017 08:41

My holding is within an ISA so I can't see there will be any tax implications. I have applied for more shares then I have at present as I expect it to be scaled back.

[saltaire111] 05/5/2017 22:20

I wouldn't risk missing out on my allocation by selling and attempting to buy back in the placing. Salty

[nimbo1] 05/5/2017 21:10

Depending on when you made your first purchase there are possible tax implications from selling and re-buying through the issue. Some people may not want to crystallise any gains. I have applied for 2 times my allocation in the placing.

[tyranosaurus] 05/5/2017 18:07

HL deadline is noon 09/05/17

[4wingrove] 05/5/2017 15:30

Yes I tend to agree I think I am going to sell my holding and seek to buy more back at the lower price. If it works I should make a couple hundred quid

[davegk] 05/5/2017 15:06

In February 2016 I received 75% of the shares I applied for in the placing in an account where I wasn’t a holder.

In the October 2016 offer on one my accounts I had and an entitlement of 268 shares which I applied for and I applied for a further 1500 under the excess application facility. I received a total of 1306 shares, so I received 69% of my application for the additional 1500 shares.

Of course the danger here is that you apply for more shares than you want expecting to be scaled back only to find the stock market goes into reverse, the BBOX share price in the market falls to below the offer price and institutions who have not got to apply as early as we do don’t bother applying and you end up with all the shares applied for, paying higher than the market price.

TD Waterhouse deadline is midnight tonight, rather bizarrely the IG deadline is 15:00 hours on Sunday.

I’m going to take the risk and apply for more expecting to be scaled back.
Happy stagging everybody

[norland1] 05/5/2017 13:44

You may not get all the shares you apply for

[tyranosaurus] 05/5/2017 13:32

You can sell today at 1.418 and apply in the offer at £1.36.
I can`t see why more people are not doing this.

[saltaire111] 05/5/2017 11:28

I'm applying for double my entitlement. Salty

[4wingrove] 05/5/2017 10:15

Article in this weeks Moneyweek praising BBOX I was a bit concerned as I have a fair percentage of money in the REIT

[speedsgh] 27/4/2017 14:07

My application via Feb 2016 Offer for Subscription was scaled back 25% (i.e. received 75% of total amount applied for). Only took up Open Offer entitlement in Oct 2016 fundraising.

[n0rbie] 27/4/2017 12:28

"Investor demand for the Issue has significantly exceeded the targeted size of £150 million and the maximum size of £250 million. The Board, after careful consideration with the Manager and in consultation with its Joint Financial Advisers, has determined to utilise part of its annual pre-emption disapplication authority to satisfy £100 million of the excess demand on equivalent terms to the Placing (the "Tap Issue").

In taking this decision, the Board has taken into account the strength of the Manager's near term investment pipeline, the Company's stated dividend target for 2016 and its intention to continue to adopt a progressive dividend policy. Accordingly, the total size of the Issue when aggregated with the Tap Issue will be £350 million, which is significantly lower than the total overall demand for the Issue.

A scaling back exercise has been undertaken with respect to applications received pursuant to the Placing, the Open Offer and the Offer for Subscription."


Through the Placing I got 65% of what I requested.
Not sure about the Open Offer as I was a first time investor in the last placing.

[davegk] 27/4/2017 08:59

I have been a contented holder since October 2015 and welcome the opportunity to acquire new shares. I anticipate that there will be quite heavy scaling back in the applications made in excess of your entitlement as was the case in the last two fundraisings.

Can anybody remember what the percentage scaling back was of the previous excess applications?

[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.