Tritax Big Box Reit Share Discussion Threads

[skinny] 16/5/2019 09:23

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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 2019 to 31 March 2019 of 1.7125 pence per ordinary share, payable on or around 17 June 2019 to shareholders on the register on 24 May 2019. The ex-dividend date will be 23 May 2019.

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

The Company is targeting an aggregate dividend of 6.85 pence per ordinary share for the year ending 31 December 20191, an increase of 2.2% over the aggregate dividend paid for 2018.

[skinny] 16/5/2019 09:22

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"The development will comprise a new purpose-built RDC with an eaves height of 15 metres and a gross internal floor area of 661,000 sq ft on a site of c.50 acres, representing a low site cover of c.35%. This RDC, which also includes ancillary office space as well as significant parking and service yards, will allow The Co-op Food Group to continue to provide a first-class service to existing food stores, whilst also helping to support the retailer's investment programme as it looks to further increase its presence in London, the South and the South East. The property will also benefit from significant capital investment by the occupier, including high levels of fit-out to include frozen, chilled and ambient food storage zones within the RDC.

Symmetry Park at Biggleswade, which DBS acquired in summer 2017, is an extension of an existing logistics park which has a critical mass of occupiers. The site has excellent road connectivity, situated just off the A1, 45 miles north of Central London and 29 miles north of the M25 (Junction 23). The area benefits from an appropriately skilled and flexible labour supply within close proximity, which underpins the appeal of the area as an increasingly important UK distribution location.

Upon practical completion of the construction, currently targeted for Q1 2021, the occupier will take up a new 20-year lease, subject to five yearly upward-only rent reviews indexed to the Retail Prices Index (collared at 2% pa and capped at 4% pa). It is anticipated that construction will commence towards the end of 2019."

more.....

[johnrxx99] 12/4/2019 07:47

Many thanks Skinny

[skinny] 10/4/2019 14:44

A look at 150p and reasonable volume.


free stock charts from uk.advfn.com

[pyufak] 07/4/2019 22:27

I guess the case of no news is good news for this one; and pleased to see it tick up towards NAV.

I was tempted to move some of my holding around until I saw UK services PMI last week & one of my favourite blogs unfortunately paints a pretty gloomy outlook potentially for the UK economy - hxxp://moneymovesmarkets.com/ - 2nd post. Given I see this more as a quasi-bond investment I sit tight. The arguments for Bank of England rate cuts, not hikes are building in my opinion!

[tyranosaurus] 07/4/2019 12:19

Agreed. Spam.

[alter ego] 07/4/2019 07:46

No connection. Spam

[catcheymonkey] 06/4/2019 10:13

@cl0ckw0rk0range6

That's a big wall of text so I may be missing the obvious: What's the connection between that and "this sector", i.e. the big-box format warehouse industry in the UK or Europe?

[cl0ckw0rk0range] 06/4/2019 04:59

Worth reading the NCCL JV announced yesterday with GridX if you are invested in this sector.JV in Solar/Battery Energy Sector and Fundraising of £1.88m 5 April 2019: Ncondezi Energy Limited ("Ncondezi" or the "Company") (AIM: NCCL) is pleased to announce that it has:· entered into a term sheet with GridX Africa Development ("GridX"), an African power developer, enabling it to enter into a Joint Venture ("JV") focused on building and operating captive solar and battery storage solutions for the African Commercial and Industrial ("C&I") sector (the "Term Sheet"); and · raised a total of £1.88m (US$2.48m) before expenses, through a conditional placing and direct subscriptions ("Fundraising") of 28,856,060 ordinary shares in the Company ("Ordinary Shares") at a price of 6.50 pence per Ordinary Share (the "Fundraising Price").The Company will use the proceeds of the Fundraising to pay a fee in two stages to GridX of US$390,000 (the "GridX Fee") allowing the Company to enter into definitive agreements to formalise the JV. The fee includes all costs to set up the JV and will secure an exclusivity period and right of first refusal over GridX's pipeline of C&I projects ("ROFR"). It is also intended that the funds will be used to fund the first project, currently estimated to be US$1.1m, with the balance of the Fundraising available for general working capital purposes. Key highlights· Ncondezi has identified significant market demand for cost effective and reliable power in the African C&I sector, and solar and battery storage increasingly makes economic sense against traditional power generation such as diesel generators · The JV with GridX will provide access to a portfolio of over 15 African C&I solar and battery storage projects, 6 of which are considered to be at an advanced stage · The opportunity represents access to an annuity business in a sector with low capital barriers to entry, significant growth potential and near-term cash flows · Target solar and battery storage projects are complementary to the 300MW Ncondezi Coal Power Project ("Ncondezi Project")providing the Company with access to the renewable energy space, low capex requirements and attractive market returns · Ncondezi will have the right (subject to certain conditions) to fund at least 50% of GridX projects that meet minimum Key Performance Indicators ("KPI's"), including minimum 10% unlevered post tax IRRs · Ncondezi to make an upfront payment of 2/3rds of the GridX Fee to secure exclusivity and the binding ROFR (the "Initial Payment"), and initiate drafting of definitive agreements to enter into the JV (the "Definitive Agreements") · Targeting completion of Definitive Agreements by the end of Q2 2019 · Proceeds of the Fundraising are sufficient to fund investment in the first GridX project with target construction start during Q2 2019 and target first cash flows by the end of Q4 2019 · The net proceeds of the Fundraising together with the Company's existing cash resources are expected to cover corporate costs until the end of Q1 2020 (post GridX Fee and potential investment in first GridX project, assuming the Shareholder Loan is extended, restructured or converted into equity in advance of 30 November 2019, when it becomes due for repayment) · The gross proceeds of the Fundraising of £1.88m were raised at a 13.9% discount to the closing mid-market price of 7.55 pence on 4 April 2019 and a 4.8% discount to the 30 day volume weighted average price · Fundraising includes approximately £329,000 from current Ncondezi shareholders, Directors and management Ncondezi Non-Executive Chairman, Michael Haworth, commented: "The Company is pleased to announce the signing of a binding term sheet with GridX, and believes the move into the C&I solar and battery storage sector represents a significant opportunity for the Company to complement its existing large scale baseload power project and access near-term low-risk annuity income streams which the Company believes has significant growth potential.Falling solar panel and battery costs are setting the foundation for a tide of disruptive technology in the African energy markets, allowing African countries to leapfrog to the next generation of sustainable energy supply. In a similar way to wireless cellular phones allowing African countries to bypass fixed line infrastructure and adopt mobile technology. At the same time, significant investment appetite is growing in the sector as investors increasingly recognise smaller renewable captive generation projects as a source of steady returns.GridX recently completed its first solar and battery storage project at Singita Faru Faru Lodge, located in Tanzania. The GridX project is the first of its kind in Tanzania and the first commissioned using Tesla batteries. This provides a strong experience platform to deliver the rest of the GridX portfolio through the JV.The JV structure provides the opportunity for a phased and low risk entry point into the sector, with GridX responsible for the development and delivery of construction ready projects for investment consideration and a diversified portfolio approach spreading investment risk across multiple projects.The successful Fundraising provides the Company with sufficient capital to enter into the exclusive discussions with GridX on the JV and a ROFR to invest in its projects in the meantime with the first project fully funded (subject to approval and documentation), as well as general working capital until the end of Q1 2020 (subject to the Shareholder Loan). This puts the Company in a strong financial position to execute on its work program. In parallel to the JV with GridX, the Company and its potential strategic partners continue to be focused on delivering the Joint Development Agreement in respect of the Ncondezi Project during April 2019" Background to the GridX JV Since Ncondezi transitioned from a coal exploration business into an integrated power plant and mine project, the Company has built up significant Sub-Saharan African power development expertise and has been evaluating a number of alternative power projects over the last 6 months that would complement its existing 300MW Ncondezi Project in Tete, Mozambique. This process led to the identification of the GridX opportunity in the C&I sector, and is outlined in more detail below. C&I Solar and Battery Storage Sector Overview Inadequate access to electricity in Africa both in terms of connections and reliability has driven demand in the C&I sector for self-generation (or "Captive"/"Embedded") power solutions. Renewable energy solutions are estimated by the International Renewable Energy Agency (IRENA) to make up nearly half of African supply by 2030 and the Company estimates that this market could be worth up to US$34bn a year. Traditionally, Captive Power solutions have relied heavily on diesel generation. The Company Directors believe this dynamic has the potential to change with the advent of low cost solar and battery storage. Solar and battery storage solutions are increasingly making economic sense with potential cost savings of 30% or more versus traditional off grid diesel generation solutions and providing a price shield against escalating fuel and grid prices. In particular, cost effective battery storage has allowed greater solar penetration into the market by removing its intermittent power constraints and maximising energy generated. Solar and battery storage equipment is modular and pre-fabricated, making it easy and quick to install and in more places. Generation regulations are also less onerous as installations typically do not require additional licensing. Solar and battery storage meets the growing pressure for corporate sustainability and zero emissions from investors and consumers. It also has low maintenance costs primarily due to the lack of moving parts compared to a diesel generator. According to Bloomberg New Energy Finance, solar and battery storage costs have fallen 84% and 76% since 2012, and are expected to become even more cost competitive with the cost of solar PV panels expected to fall a further 37% by 2025 and battery storage costs by a further 67% by 2030. In addition, there are significant ancillary benefits of solar and battery storage projects, including:· Reduced fuel storage and theft risks· Reduced fuel logistics costs· Reduced emissions· Reduced noise pollution· Peak shaving - reduces peak period high cost energy demand from grid· Supply stability - backup, frequency & voltage control Finally, increasing amounts of capital is flowing into the sector with approximately US$130m raised in the African captive power renewables sector (C&I and home solutions) over the last 12 months. The World Bank has also committed over US$1bn for investments in battery storage for developing and middle income countries. Increasingly, smaller scale solar and battery storage projects are being recognised for their low risk and stable returns. Growth potential and sustainability goals are also driving major utilities and oil majors into the sector with Enel, Engie, EDF, Shell and Total all entering the sector (mainly through acquisitions and partnerships). Overview of GridX GridX is a power developer focused on delivering competitive sustainable energy solutions in the African C&I sector. GridX identifies C&I energy users who have either no or poor quality grid access and are dependent on diesel power generation. Capital requirements per target project average between US$0.5m and US$2.0m, and typically has a projected 9-12 month construction timeframe. Each project will seek to have a 10 to 15 year US$ denominated power offtake contract. Project returns are attractive with minimum targeted post tax unlevered equity internal rate of returns ("IRRs") between 10% and 15%+, compared with 6% and10% in developed economies. Ncondezi believes that these returns can be further increased through leverage. GridX has in-house resources to produce construction ready projects and is technology agnostic which allows for competitive technology selection on every project. In January 2019, GridX delivered its first project in Tanzania. The project was designed for Singita Grumeti, a luxury game lodge, and involved the installation of a 189 kWp solar plant and 522kWh battery storage unit from Tesla. The battery storage unit is believed to be the first Tesla installation in Tanzania. GridX expects that the project will replace over 100,000 litres of diesel consumption annually and result in an annual US$150,000 reduction in diesel costs. GridX's Directors own 70% of GridX, 15% is held by Eden Renewables, an international solar and storage development company, currently developing projects in the US and UK, 10% by Pan African Group, a private equity and investment banking firm focused exclusively on Sub-Saharan Africa, and the balance of 5% is held by a private individual. GridX was founded by Executive Directors Chalker Kansteiner and Justin Pengilly, who have both been working in the African power development sector for a number of years. Chalker was previously at Blackstone's large scale African energy project developer, Black Rhino, whilst Justin previously worked at Pele Green Energy, one of South Africa's leading independent power producers in the renewable energy sector (and is the brother of Hanno Pengilly, the Company's Chief Development Officer). GridX Pipeline GridX's current development pipeline includes 15 projects in various stages of development with 6 advanced stage projects projected to enter construction in the next 18 months. Potential pipeline projects include luxury resorts, manufacturing facilities, port facilities and agri-businesses, with flexible design solutions for either off grid or on grid requirements. The advanced stage projects have a potential 1.4MWp of solar and 8.9MWh of battery storage, and are concentrated in Mozambique, Djibouti and Zambia. The current estimated project cost for the advanced stage projects is US$9.5m (100% equity basis), with the ROFR giving Ncondezi the right to fund a minimum of 50% of the equity requirement. GridX is targeting its first new project to start construction in Q2 2019 with first cash flows by the end of Q4 2019. GridX has indicated a total capital cost for the first project to be US$1.1m, which the Company has provisionally allocated funds for from the Fundraising, subject to the approval of the project and relevant documentation. Term Sheet Overview Ncondezi has signed a Term Sheet with GridX to acquire a ROFR to fund GridX C&I projects through a newly setup JV. It is intended that GridX's role under the JV will be to deliver US$20m of construction ready African C&I projects to the JV (the "GridX Pipeline"). Each project must either meet a minimum set of KPI's or have the KPI's waived by both parties before funding takes place ("Approved Project"). Ncondezi will have the right to elect to fund a minimum of at least 50% of the Approved Projects' equity requirement. Funding from Ncondezi will be provided on a project by project basis. GridX will have the right to fund up to 15% of the Approved Projects' equity requirement as well as a right to introduce a third party investor to fund the remaining 35%. Ncondezi will have an additional right to elect to fund any funding shortfalls should funding from either GridX or a third party investor not materialise, in the event that Ncondezi wishes the project to proceed.

[scubadiverr] 04/4/2019 16:36

Your prediction is looking good. Let's hope it continues to do so ?

[sleepy] 04/4/2019 00:13

Anyone know why Stephen (Steve) Smith left the Board on 26 June 2017 after 3 and a half years as a Director?

[pyufak] 17/3/2019 14:33

Thank you SpeedSGH, I may take you up on this suggestion - it's appreciated. Have enough exposure here that as you say taking a few hours to attend could be time well spent.

[tyranosaurus] 14/3/2019 15:27

Doing very well on xd day.

[drectly] 12/3/2019 16:22

1.68p ex divi 14/3 (Thursday)

[cliveagran] 12/3/2019 15:43

It's always encouraging when directors buy shares as they should know better than most how well the company's doing. I'll be disappointed if the shares don't reach 148 by Easter and 155 by the end of the year.

[guyswonga74] 12/3/2019 15:16

Nice director buy. Doesn’t this go ex dividend on Thursday?

[johnrxx99] 08/3/2019 05:35

By the way I am an investor in BBOX but comment when comments tend be rampish.

[johnrxx99] 08/3/2019 05:33

I appreciate that but from a value point of view, with property assets, it is unusual. Premiums represent enthusiasm, not value. As I said, fully valued at the moment, imo.

[ugandalad] 07/3/2019 09:49

John Its a quoted share therefore subject to the vagaries of the market.

[jonwig] 07/3/2019 06:26

john - "can" or "should"? It certainly can, that's up to the market, and there's an investment trust which recently had a 30% premium to its NAV.

NAV doesn't include transaction costs which haven't happened, and are unlikely to happen with a company such as BBOX where leases last for over a dozen years. There are at least two property sectors which have companies trading at a premium: primary health centres and student digs. And some infrastructure funds have, too. Usually the stated NAV is conservatively calculated, hence the premium.

If you feel strongly about such companies, you're free to leave them alone, of course!

[johnrxx99] 07/3/2019 05:55

No way a fund, which is what it is, can have a premium to NAV. Does the NAV include sale cots etc. I's say at least 5% so currently fully valued.

[speedsgh] 06/3/2019 16:21

Pyufak - The analysts meeting was at 08.45 this morning so I'm afraid you've missed the boat in terms of asking questions. However there is always the AGM in May (date TBC) if you wish to attend. Last year it was a 10.00 start at the offices of Taylor Wessing LLP, 5 New Street Square, London EC4A 3TW. Time/date/venue of this year's AGM will be confirmed in due course via rns "on or around 15 April".

The audio presentation from today's analyst meeting is available for download from the Results Centre on the company's website -

[pyufak] 06/3/2019 12:26

I will not be able to join call - if anyone can ask about potentially increasing leverage of the company towards the 40% limit or plan to stick around current levels. Overall solid results - it's been a few years of fantastic total returns - I wouldn't mind them consolidating a bit going forward rather than sticking at break neck growth

[jonwig] 06/3/2019 10:05

speeds - is it cash drag from the recent fundraising, and assets under development?

[speedsgh] 06/3/2019 09:58

DIVIDEND DECLARATION & NEW TARGET DIVIDEND CONFIRMED FOR FULL YEAR 2019 -

DIVIDEND DECLARATION
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 October 2018 to 31 December 2018 of 1.675 pence per ordinary share, payable on or around 28 March 2019 to shareholders on the register on 15 March 2019. The ex-dividend date will be 14 March 2019.

0.90 pence of this dividend will be paid as a Property Income Distribution ("PID") in respect of the Company's tax exempt property rental business and 0.775 pence will be paid as an ordinary UK dividend ("non-PID").

PROGRESSIVE DIVIDEND POLICY
Consistent with its progressive dividend policy, the Company today confirms it is targeting an aggregate dividend of 6.85 pence per ordinary share for the year ending 31 December 20191, which is an increase of 2.24% over the dividend target of 6.70 pence per ordinary share for 2018.

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Target increase of 2.24% is a slight slow down in rate of dividend growth. Would be interesting to know the reasons behind this. Maybe this will have been taken up at the analysts meeting...

TOTAL FY 2019 (E) - 6.85p (+2.2%)
TOTAL FY 2018 - 6.70p (+4.6%)
TOTAL FY 2017 - 6.40p (+3.2%)
TOTAL FY 2016 - 6.20p (+3.3%)
TOTAL FY 2015 - 6.00p
TOTAL FY 2014 - 4.15p