Tritax Big Box Reit Share Discussion Threads

[eagleblue1] 10/12/2020 14:15

Cheers smidge - more directed at scruff but I get your point.

[williamcooper104] 10/12/2020 12:11

Big risk is long term gilts blowing up - we've only got limited inflation protection as the RPI caps kick in at 3 percent (used to be standard for caps in leases to be 5 percent)Inflation protection is good for sterling assets as it mitigates fall in currency So far gilts have traded in - so we are getting benefit of lower rates and higher expected inflation - eg more negative real rates Worst thing about BBOX is that's it's ££ assets

[smidge21] 10/12/2020 12:01

Hi, I haven't particularly thought about it falling; just flat-lining/ underperforming. Logistics assets are well bid - especially if ASI are going to direct more capital and management dis-incentivised relative to before. Yes I could clip the 'coupon' but it isn't particularly fancy. Surely better opportunities elsewhere ?

[eagleblue1] 10/12/2020 11:39

I'm really intrigued as to why you think the share price will fall - nothing has changed for Tritax Big Box. The portfolio is the same, the trend towards e-commerce is the same, dividends the same, the team is the same. Brexit is an obvious headwind which could affect it but that's a different issue.

[scruff1] 10/12/2020 11:26

Tend to agree with you smidge.its not just me but the market in general seems to agree. Not a great merger. Mainly about management greed which is not the sign of great management. Hope not but can us going back to the 140's. We have riden the rise but suspect it will plod from here. Yep I'm pessimistic but hope I'm wrong.

[smidge21] 10/12/2020 09:04

Off-loaded all yesterday and will gradually increase exposure in a basket of renewable exposures. BBOX has been flat-lining; now reason to look for improvement

[eagleblue1] 10/12/2020 09:01

I don't begrudge management for selling off - if I had c.£100 million on offer from an institution for a portion of a company I'd help grow into a profit and success, and be given a mandate for other assets I'd definitely take it. If (and it is a big if) Aberdeen sticks to its word then it will make no difference for shareholders of either BBOX or EBOX. The mood seems gloomy on here but I'm optimistic that the exposure Aberdeen can provide will be net positive for us.

[scruff1] 10/12/2020 08:47

Rightly or wrongly its shaken my confidence in the management. Not sure this was necessary or the validity of the claim for investor value. More likely management value and that is not a good sign. Time will tell but at the moment not good imo.

[scruff1] 10/12/2020 08:14

In fact it would appear that we now at least have a reason for the price weakness over the last month - its not popular

[scruff1] 10/12/2020 07:42

Mmmmm. Thanks for your inputs. Not convinced of the wisdom. Bought a few more Monday but would have held back if I saw this coming. Market looks far from convinced too.
I suspect some movement may occur today as the merge is digested

[williamcooper104] 10/12/2020 07:29

Cash and getting hands on AS assets/mandates to manage/grow their assets/fees under management which they still own 40 percent of Oxford Properties are also buying M7 - another management owned logistics asset manager

[williamcooper104] 10/12/2020 07:27

Liquidity not a problem for BBOX but EBOX much smaller - and anything that's small isn't great for liquidity or won't be if you need it when markets are crashing

[smidge21] 10/12/2020 06:47

The merit for ASI is clear - help rescue an ailing division. For Box management can only be cash

[scruff1] 10/12/2020 03:30

The problem for me is that I dont see a crystal clear reason for this merger. I am not sure about any overiding advantage. I wasnt aware that there were any liquidity problems. William ?

[williamcooper104] 09/12/2020 22:21

The Tritax management owned all the ManCo so all of the consideration for the 60 percent will go into their back pocket Can see EBOX merging with ASLI - which would make sense - both quite small - larger co would have better liquidity

[smidge21] 09/12/2020 10:45

Unclear what SLI bring to the table other than a chunk of cash to make BBOX management take life a bit easier. SLI property arm been in some disarray losing assets. Is this a desperation move?
If you didnt own BBOX before would you buy it now? I suspect not

[skinny] 09/12/2020 10:33

Which obviously also covers EBOX.

[smidge21] 09/12/2020 10:27

I'm off to look for examples when ASI turned water into wine.............I may be some time!

[financeguru] 09/12/2020 10:02

well that makes sense, why buy the REIT when you can buy its management (for a fraction of the price) and screw the shareholders/investors! Nice move Godfrey!

[williamcooper104] 09/12/2020 09:51

They've not bought any shares in BBOX They've bought 60 percent of the external management company

[financeguru] 09/12/2020 09:47

if as it says, ASI are taking a 60% interest in BBOX where is the money going!?? They didn't buy my shares! Maybe a special dividend to be declared??

[adamb1978] 09/12/2020 09:35

I dont think it makes a jot of difference. The BBOX Fund Management team are remaining in place - its just that they will have a different coroprate parent

[eagleblue1] 09/12/2020 09:11

What are people's thoughts on this? Market seems disinterested but as an owner of shares in both Big Box and Eurobox extra financial firepower is welcome in an increasingly hot market.