Tritax Big Box Reit Share Discussion Threads

[dhoult12] 09/10/2020 09:42

I hold this and SHED - shed is more urban last mile.

Also hold some retail parks - as these valautions skyrocket what was once a big sad old centre can be turned into logistics. The locations are decent and near motorway junctions etc.

A bit of a reverse of the old turn everything into flats we have seen for 5 years

[energeticbacker] 09/10/2020 09:39

What are the growth opportunities for warehouse and logistics companies? Investor’s Champion has taken a look at a number of companies including Tritax. #CLG #LMP #SGRO #WHR

[scruff1] 09/10/2020 08:58

Cheers Williamc. Clarification appreciated

[williamcooper104] 09/10/2020 07:31

Segro paid a record low yield (or high earnings multiple of c37x) on a shed The multiple was close to the pricing that retail units on Bond Street trade at - which for years and even in this market has been the highest valued part of the U.K. commercial real estate market The shed is in a very prime location, for a shed, so of course the whole market wouldn't trade at 37x - but the market is on fire, so further valuation uplifts on BBOX and increases in the returns from their development pipeline are highly likely Indeed chances of a bid for the whole company are also higher too (IMO)

[scruff1] 09/10/2020 05:11

You need to translate that for me

[williamcooper104] 08/10/2020 16:09

The asset was in Canning Town - so hyper prime urban logistics - amusingly the yield is close to what Bond Street properties trade at SEGRO was the buyer

[williamcooper104] 08/10/2020 16:04

Behind a paywall - but a very prime logistics asset just traded at 2.7 - which is as hard a yield as you're going to see on anything - this was 30 percent above asking So the supposed premium this is trading to NAV is likely a discount (yes - most of BBOXs assets aren't at 2.7 but they all float on the same water) https://reactnews.com/article/sector-giant-prevails-for-ultra-prime-130m-urban-logistics-scheme/Knight Frank also released research recently stating the demand at 94m sf by 2024

[scruff1] 07/10/2020 20:31

Any known reason for the tail off other than profit taking?

[skinny] 07/10/2020 10:02

Errr - see post 1392.

[scubadiverr] 07/10/2020 10:01

52 week high. I believe they have been marginally higher

[skinny] 07/10/2020 08:53

162.20p hit earlier - all time high here @162.60p on 24/07/2019.

[scruff1] 22/9/2020 19:46

Well that stoked a lot of interest !

[skinny] 22/9/2020 06:09

.





ACTIVELY MANAGING PORTFOLIO TO DELIVER VALUE FOR SHAREHOLDERS

Tritax Big Box REIT plc (Tritax Big Box or the Company) today announces exchange on the sale of three assets to two separate purchasers for a total consideration of GBP77 million.

Through our ongoing evaluation of the portfolio, we consider these assets to have reached their full value under our ownership following the completion of asset management initiatives which delivered rental growth and a lease extension. Based upon factors such as their size and relative lease lengths, and detailed quantitative analysis on expected future returns, these assets are less well aligned with our long-term strategic and portfolio objectives.


Asset Size (sq Lease Length Acquisition Completion
ft) (years) date date
Wolseley, Baker Business 2 October
Park, Ripon 221,763 6.2 August 2014 2020
--------- ------------- ------------ -----------
DHL, Langley Mill, 1 December
Nottingham 255,680 4.2 August 2014 2020
--------- ------------- ------------ -----------
Whirlpool, Warth Park, September 1 December
Raunds 473,263 5.6 2016 2020
--------- ------------- ------------ -----------

The sale of these three assets delivers attractive returns to our shareholders, including:

-- Delivering IRRs above our 9% per annum target.
-- Are sold at or above their current book value.
-- The consideration of GBP77 million represents a blended NIY of 5.6%, compared to our purchase cost of GBP65.1 million (NIY of 6.6%).

-- Following exchange, the Company will benefit from approximately three months of additional rental income totalling GBP0.8 million due to the delayed completion on the disposal of the Langley Mill and Warth Park assets.

Colin Godfrey, CEO, Fund Management, commented:

"Ongoing portfolio evaluation is an intrinsic part of our strategy to deliver value to our shareholders. We continue to see strong demand for UK logistics real estate supporting attractive prices on assets which no longer align with our strategy and where we believe they have reached their full value potential in our ownership. So far this year we have disposed of GBP134 million of assets, and we will be redeploying the proceeds into attractive opportunities, including those within our portfolio where we see the potential to secure higher returns for shareholders."

[williamcooper104] 14/9/2020 14:49

1m sf planning application in Merseyside submitted

[dhoult12] 11/9/2020 12:59

Yes this feels a lot safer than other stuff i hold at the moment...
If it all collapses to the point warehouses are not needed - which gives the impression nobody is buying anything online or in store, then there are bigger issues to worry about than share prices.

[anley] 10/9/2020 17:24

A very good deal and as management tells us all the cash goes towards the building of new sheds.

The JV with National Grid still facinates me with all those round gas holders - what scope and then their is the south London land................needed when there is new crossing and a new route to Dover and the north of England.............

Just hold and reinvest the dividend - pop it into a ISA/SIPP and cash it all in when one retires say at 70.

[williamcooper104] 03/9/2020 13:18

Yep - and that's unlevered - with debt it's going to be 30 plus

[n0rbie] 03/9/2020 13:06

"IRR of 18.5% per annum" lovely!

[speedsgh] 03/9/2020 12:06

The property was acquired in March 2014 for £28.64m...

[skinny] 03/9/2020 06:10

.

Tritax Big Box REIT plc (Tritax Big Box or the Company) today announces completion on the sale of its Chesterfield asset for GBP57.3 million.

We acquired the asset in March 2014 when it had 6.2 years of lease remaining to Tesco. In 2018, we implemented a pro-active asset management initiative and agreed an early surrender of the existing lease to Tesco and secured a new 15 year lease to Amazon, significantly enhancing the value of the asset.

more.....

[dhoult12] 26/8/2020 21:36

Happy to reinvest divis here.
SHED another good one just not as liquid. Even stores in trouble who refused to pay their rent elsewhere pay the warehouse. The costs of the fit out compared to the shed rent, de risk it for the landlord massively.

[scruff1] 26/8/2020 20:45

RBC raises Tritax BBOX to 170 (160) Outperform

[skinny] 26/8/2020 15:36

One of my longer holds in the sector - first bought December 2013 @100.95p, also bought in March @82.85p - so very happy.

[mach100] 26/8/2020 15:32

Divi is paid on Friday. I expect quite a few investors like me will be recycling the divi into shares. So buying and the share price should pick up on Monday and Tuesday next week. £1.40 will not happen because of its ties with Amazon and also the safe yield in an investment environment of pitiful returns. I would be buying a warehouse full if it hits that price I can tell you!