Tritax Big Box Reit Share Discussion Threads

[cheshire man] 09/10/2019 07:52

9 October 2019
TRITAX BIG BOX REIT PLC
(the "Company")
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 July to 30 September 2019 of 1.7125 pence per ordinary share, payable on or around 14 November 2019 to shareholders on the register on 18 October 2019. The ex-dividend date will be 17 October 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.

[nimbo1] 26/9/2019 13:19

My favourite show - I went for 15% so can't complain.

[nimbo1] 26/9/2019 12:24

I knew I should have stuck 100% in at 138...

[nimbo1] 03/9/2019 22:44

highly unlikely. way too many people want a 5% yield with global interest rates turning negative stuff like this will become more popular - although granted brexit is an unknown quantity and in the short term no one knows. however from past observations price falls often happen in advance...you certainly won't be the first person to think that brexit might have an impact...

[scubadiverr] 03/9/2019 20:13

I would have thought the Questor effect would have been greater and lasted longer. I think the downward trajectory will continue beyond Brexit.

[robow] 02/9/2019 08:13

Questor: buy this ‘big box’ developer for a 5pc yield and the chance of inflation-beating rises



Robert Stephens


Questor share tip: Tritax’s warehouses allow retailers to service their online customers and burnish their green credentials

Investing in online-focused retail stocks is not the only way to capitalise on the growth potential of ecommerce.

Tritax Big Box, a real estate investment trust (Reit), owns very large logistics warehouses (“big boxes”) in Britain. Demand for these assets is likely to rise as retailers reposition themselves to accommodate a continued shift towards online sales.

In the past 10 years, for example, internet sales as a proportion of total retail sales have risen from 5.9pc to 18.6pc.

Even though the wider retail sector could face an uncertain period thanks to weak consumer confidence, Questor is optimistic about the prospects for ecommerce.

Indeed, retail ecommerce revenue is forecast to rise at an annualised rate of more than 6pc in the next five years. Of course, Tritax Big Box’s future does not depend solely on the growth of online retail. Demand for its assets is supported by companies that seek to generate operational efficiencies during a period of slower economic growth.

Sustainability also forms a key part of Tritax’s potential. Its assets contribute to occupiers’ sustainability agendas through the use of features such as renewable energy generation and vehicle charging points.

Looking ahead, the company’s acquisition of an 87pc interest in a geographically diverse land portfolio in February provides it with the opportunity to develop up to 38m sq ft of logistics assets over a period of up to 10 years. This could more than double the size of its portfolio.

Since the recently acquired portfolio mainly relates to options over land, it could also prove to be an efficient use of capital. The business expects to fund at least some of its future developments from the sale of existing buildings.

This could improve its financial outlook, since it plans to dispose of lower-yielding assets in favour of those that may offer significantly better yields.

As Tritax Big Box’s gearing of 29pc is below its medium-term target of 35pc, it has scope to fund future developments via additional borrowings, although further share sales also appear likely following the £250m placing earlier in the year that funded the acquisition of the land portfolio mentioned above.

Although uncertainty may cloud the near-term performance of the economy as the Brexit process continues, the company’s customer base is highly diversified. It has 40 different tenants, 78pc (by income) of them listed on major stock markets in Britain, Europe or America.

The Reit’s risks are further reduced by its focus on pre-let developments. This is where a future occupier signs a pre-lease before development begins. These arrangements are commonplace because of a lack of supply of “big box” assets. As a result, developments where an occupier is not found before construction starts are limited to just 5pc of the company’s assets.

While the wider commercial property market could be hurt by the challenging outlook for the economy, Tritax’s rents are currently rising by more than inflation. Continued rental growth may be ahead and its focus on leases that contain upward-only rent reviews serves to reduce risk further.


Tritax Big Box trades on a price-to-book ratio of about 0.9, which Questor believes offers a margin of safety. Although higher income returns than its 4.8pc yield are available elsewhere in the Reit sector, the stock could provide a relatively stable income that grows at a faster pace than inflation in the long run.

Its real appeal, though, lies in its capacity to benefit from the structural changes taking place in the retail sector. With a strong development pipeline and an imbalance between supply and demand in the “big box” sector, the company is well placed to capitalise on the growing popularity of ecommerce.

Questor says: buy

Ticker: BBOX

Share price at close: 140.1p

[purplepelmets] 02/9/2019 03:48

Looks very good at this level. But then I'd be adding to Hansteen over this. Similar strategy but cheaper and higher yield - just lacks the catchy name.

[tim 3] 02/9/2019 00:38

Yes VERY positive write up on Questor.

[rik shaw] 01/9/2019 13:06

Tipped by Questor in the Telegraph today.

[computercoders] 25/8/2019 15:37

I always liked this one and have been in and out. Good quarterly divi. Currently out but wss tempted back in at 137p last week didn't take it though. Regret it slightly as another penny or so up now

[scubadiverr] 23/8/2019 16:31

I can see this sub 130 come Brexit. Bizzaire as it was at its high when Boris got in. The market seems to be predicting issues. Has anyone any ideas? Is it value of the pound v dollar when weighty debt in dollars? Threat of occupiers not being able to meet rents?

[norland1] 23/8/2019 10:14

Good recovery. Nice and steady upward movement now on the cards

[johnrxx99] 23/8/2019 07:27

Lilly01 - the jest was because of the previous post - guess how I found it.

[jombaston] 22/8/2019 13:53

5% yield, 8% discount to NAV, sub-30% LTV, long-lease big boxes, blue-chip customers.

I wonder what they don't like. Although tbf their call was made when the price was 5% higher!

[gswredland] 22/8/2019 13:17

Thanks Barclays! Gave me the opportunity to buy back in.

[lilly 01] 22/8/2019 10:18

Hello Johnrxx99,

Yes,would be keen to see or know the jest.
Thanks,N

[mdss68] 22/8/2019 10:05

hxxp://www.stockmarketwire.com/article/6557145/Broker-Forecast-Barclays-Capital-issues-a-broker-note-on-Tritax-Big-Box-Reit-Plc.html

Want to have a guess how I found that?

[rik shaw] 22/8/2019 10:01

I notice it was only June that they valued at 155p after 150p in February. Maybe their regular analyst is on holiday in August...
I'm in for some more at this price.

[pyufak] 22/8/2019 08:42

I’d be interested if anyone knows where I can find the Barclay’s note which is driving today’s move. I think 130 is at the cheaper end of the range given risk asset and global interest rate moves since we last saw that price in Dec.

[skinny] 22/8/2019 08:42

Swines!

22 Aug 2019 Barclays Capital Underweight 140.00 155.00 130.00 Downgrades

[ramellous] 19/8/2019 18:33

Also work is under way for an equivalent warehouse about 10 miles up the road at Durham.