Tritax Big Box Reit Share Discussion Threads

[scruff1] 22/2/2021 21:44

Someone (Aviva)rather take profits (sold about £45m worth) Nice.

[rathlindri] 19/2/2021 11:47

Great to see, this sector seems to be thriving

[skinny] 19/2/2021 11:44

A new high @188.90p

[williamcooper104] 19/2/2021 11:30

SEGRO has reported double-digit growth in the value of its portfolio in full-year results that underline the continued strength of the industrial and logistics sector.The FTSE 100 company reported 16.3% year-on-year growth in adjusted NAV per share to 814p, driven by a 10.3% increase in the value of the portfolio to just under £13bn. Adjusted earnings per share came in at 25.4p, up from 24.4p last year.The company achieved 2.5% rental value growth across its portfolio, with 3.1% growth in the UK and 1.5% growth in continental Europe. Meanwhile, like-for-like net rental income grew by 2.1%, aided by an average 19.1% uplift on rent reviews and renewals.

[skinny] 28/1/2021 11:10

I missed this earlier :-

.




Q4 2020 UPDATE

STRATEGY DELIVERING GROWING RETURNS ACROSS THE PORTFOLIO

Tritax Big Box REIT plc (the Company) today announces an update on its performance for the final quarter of its 2020 financial year.

We are well aligned to accelerating long-term trends

2020 saw record demand for logistics real estate space in the UK:

-- Record take-up in 2020 of 43-50 million sq ft representing year-on-year growth of over 50% (1) .

-- Estimated to be 112 million sq ft of demand requirements (2) across the logistics market, the highest level ever recorded, sustaining demand levels in 2021 and beyond.

-- Supply of prime logistics assets remains constrained.
-- High levels of investment demand in Q4 2020 drove prime logistics yields below 4%.
Portfolio performance driven by high-quality assets

Our strategic focus on high-quality assets is reflected in ongoing strong levels of rent collection in the quarter. In line with our expectations:

-- 99% of Q4 2020 rents have now been received, taking the rent collection level across FY2020 to 99%.

-- Remaining c.1% subject to deferral arrangements which we expect to be recovered by mid-2021.

-- No rent-free periods or rent reductions have been agreed across the portfolio.
We expect that 100% of Q1 2021 rents will be collected by the end of March 2021, comprised of the following:

-- 93% of rents have been paid to date.
-- 7% is scheduled to be collected monthly over the remainder of the quarter.
As recently announced by the Company, the strength of our investment and development portfolio has been reflected in a material increase in valuation of approximately 8% since 30 June 2020. This increase in value has been driven by the strength of the market, the quality of the portfolio and the positive impact of our active management and development activities as assets transitioned from development to the investment portfolio.

Actively managing to deliver value for our stakeholders

We directly and actively manage our portfolio, working with our customers to meet their needs and deliver value for our shareholders. Achievements during the quarter included:

-- The acquisition in November of a prime temperature-controlled distribution unit in the core South Coast location of Nursling Industrial Estate, Southampton.

o GBP44.2 million consideration, reflecting a net initial yield of 5.24% in an off-market transaction.

o Provides opportunities to deliver value accretion through asset management initiatives.

-- Completed three rent reviews to deliver an average increase of 8.4% and adding GBP0.65 million to annual rent roll.

Ongoing progress within our development platform

The occupier market continued to strengthen, and we have seen high levels of enquiries for space within our large, high quality, well-located development platform, from both existing and potential new customers. Achievements during the quarter included:

-- All speculatively built units within the Tritax Symmetry (TSL) portfolio have been fully let following a letting to Ocado in December 2020 on a 20-year term, for a 164,000 sq ft building in Bicester, which achieved a rent 20% higher than appraisal levels.

o In total, lettings across the TSL portfolio during 2020 added GBP4.6 million to the contracted rent roll.

-- Littlebrook Phase 2, pre-let to Amazon, has become wind and watertight as the construction of Europe's largest logistics facility continues to progress on schedule.

-- Securing 2.5 million sq ft of planning consents at our Rugby (1.9 million sq ft) and Biggleswade (0.6 million sq ft) sites, further increasing the size of the UK's largest logistics focused land bank.

Following the positive progress made since the purchase of TSL, the Company has made changes to the development management agreement between TSL and DB Symmetry Management Limited to better reflect the growth in the TSL portfolio and general inflationary increases since February 2019. These amendments support the incentivisation of the broader TSL team via, inter alia, the introduction of a bonus scheme for TSL employees based on and aligned with the successful delivery of the development pipeline between now and at least 2027 and averaging approximately 3% of profits contributed to the Company. The TSL management team, including Richard Bowen, a Director of TSL and therefore a related party of the Company under Chapter 11 of the FCA's Listing Rules, continue to be aligned through the holding of 13% of the TSL development assets via C shares. These amendments to the development management agreement constitute a smaller related party transaction under Listing Rule 11.1.10.

Ongoing investment by Tritax Management in its team

Tritax Management has appointed Phil Redding as a Partner, with responsibility for investment strategy, to support its mandates, including Tritax Big Box. Phil brings a wealth of experience in logistics real estate, from a career spanning 25 years at Segro where he rose to become Chief Investment Officer of the FTSE 100 REIT.

Colin Godfrey, CEO, Fund Management, commented:

"Despite the broader challenges and uncertainty created by Covid-19 and Brexit, the disciplined execution of our strategy delivered increasing momentum in growth through to the end of 2020, supported by a strengthening UK prime logistics market. Across the business our strategy is delivering value, from our strong and resilient portfolio, effective asset management and accelerating progress on development. The significant uplift in our portfolio valuation was driven by both the strength of the market and the value we are creating through active asset management and controlled development activity. Constrained supply is being outstripped by strong occupational demand for logistics real estate, particularly for Big Boxes. We are benefitting from excellent customer relationships, a large and high-quality landbank and strong balance sheet, which together ensure that we are well placed to capture this opportunity and deliver sustainable value growth for our shareholders and wider stakeholders.

"We are delighted that Phil Redding has joined Tritax Management. His extensive experience of investment strategy and acquisition of major logistics portfolios will further enhance our team and the quality of our platform for the benefit of the Company's shareholders."

The Company will announce its FY 2020 results on 10 March 2021. To register to view the webcast please visit www.tritaxbigbox.co.uk/investors

[williamcooper104] 20/1/2021 23:04

I like having euro exposure; the fed will print money, the ECB won't unless the Italians nick it from the Germans

[petewy] 20/1/2021 15:51

Months ago a writer said EBOX was a better deal than BBOX. Gave cogent reasons so I added to both

[williamcooper104] 20/1/2021 14:55

Unfortunately EBOX doesn't seem to have same development upside as BBOX - but it's cheaper ASLI has a decentish divi yield too Put both together and grow the asset base - such that it gives liquidity to institutional investors and they're ought to be c20 percent upside (IMO/DYOR) Downside is long term rates going higher - as most of the leases have inflation capped at 3 percent - so more like a high yielding bond than a true inflation linked instrument Far better risk/reward than owning long duration gilts - but then Bitcoin is probably a better risk/reward than gilts

[skinny] 20/1/2021 13:49

EBOX - re post 1545 - I never did!

[williamcooper104] 20/1/2021 13:46

Good to see EBOX catch up a bit today Hoping they merge with ASLI and then build proper pan European scale (Europe ought to have more structural rental growth)

[williamcooper104] 19/1/2021 11:43

It's the cheapest relatively large industrial reit SHED/WHR/stenprop are too small to get decent liquidity

[speedsgh] 19/1/2021 10:26

Liberum upgrades Tritax Big Box -

Liberum has upgraded warehouse and logistics investor Tritax Big Box (BBOX) as momentum continues to strengthen in the industrial property sector.

Analyst Tom Musson upgraded his recommendation from ‘hold’ to ‘buy’ and increased the target price from 160p to 195p on the stock after the specialist real estate investment trust (Reit) delivered a second half 2020 valuation uplift of 8%, ahead of expectations.

‘Strength of the market, asset management, and development progress have driven the strong growth,’ he said.

‘While we still expect an outperformance of value over growth in UK real estate over the next six-to-12 months, we cannot ignore the strength of the momentum in the underlying industrial market.’

Tritax Big Box remains ‘the cheapest of our covered industrial Reits’ with ‘a 25 percentage point valuation gap to Segro (SGRO) and LondonMetric Property (LMP)’, he said

Tritax Big Box shares closed up 5%, or 8.8p, at 185p yesterday.

[skinny] 18/1/2021 09:04

Perhaps its the mention of "Tritax".

[williamcooper104] 18/1/2021 09:02

SGRO/SHED/WHR not showing much movement this morning

[williamcooper104] 18/1/2021 08:56

Miss MIPIM The article is very good Industrial/logistics used to be the ugly duckling of commerical real estate Ironically most people bought and held it for redevelopment into either resi or retail - a yielding land bank Which is now where a lot of retail is heading to

[skinny] 18/1/2021 08:43

And another new ATH to boot @184.40p.

[skinny] 18/1/2021 08:41

petewy - I'm not going to post the whole article, but the opening gambit is :-

"Once upon a time, warehousing was the ugly duckling of property. It has become a swan as the e-commerce surge fuels Amazon, Asos and Ocado — but can it last"?

Every March, a group of mostly white, middle-aged men usually gather in a modest villa in the hills above Cannes to swill lager, eat barbecued meat and indulge in their shared passion: warehouses.

The self-styled “shed masters” have long operated on the periphery of Mipim, the property industry’s annual knees-up in the south of France, but one of the dullest corners of the market is now having its moment in the sun.

The steady rise of online shopping has been turbocharged by the pandemic, spurring record levels of investor demand for the warehouses that service the e-commerce sector and spinning a fortune for those who had the foresight — or luck — to buy ahead of the pack.

The once unfashionable shed masters hold the keys to crucial parts of the national infrastructure that ensure shoppers can get everything from their weekly food order to a washing machine or a laptop hours after ordering. Almost a year of Covid-19 restrictions, panic buying, stockpiling and chaos at ports has stretched supply chains to the limit and hammered home the vital role that warehousing plays for UK plc.

[norland1] 18/1/2021 08:38

Sunday Times report on 'sheds' has probably helped.

[purplepelmets] 18/1/2021 08:10

Any reason for this strength today? we had the increased valuation gd news last week already

[petewy] 17/1/2021 15:51

What does it Skinny I can't get in.

[williamcooper104] 14/1/2021 21:25

Yields on recent sales 2.7-4.5

[davebowler] 14/1/2021 10:28

Portfolio valuation ahead of market expectations

The independent valuation of our portfolio's investment and development assets (1) as at 31 December 2020 indicates a like-for-like increase in value of approximately 8% since 30 June 2020. This has been driven by the strength of the logistics real estate market, our active development and asset management activity, alongside the high-quality nature of our portfolio as demonstrated through consistently high levels of rent collection.

As a result, we expect our 31 December 2020 EPRA NTA per share to have increased materially since the half year (30 June 2020: 154.85 pence per share) and to exceed the upper end of current analysts' estimates (2) .

The Company will publish its Q4 2020 trading update on Thursday, 28 January 2021.

(1) Excludes land and land options.
(2) Based upon a Company compiled consensus, the current range of nine sell side analysts' estimates for EPRA NTA per share at 31 December 2020 is 152 pence to 166 pence, with an average of 159 pence.

[dhoult12] 14/1/2021 09:03

Any guesses what materially higher means? Market had 165p pre announcement now up at 177p

Whats the current yield on these assets from recent sales?