Tritax Eurobox Share Discussion Threads

[cc2014] 06/10/2023 15:24

More likely that 3.2m is a delayed sell.

Edit: A delayed worked trade sell which is what drove the share price down...

Which might give you hope the share price will now recover.

[skyship] 06/10/2023 15:20

I gather the Company is frustrated that they are treated as a UK REIT when "in all but name" they are an EU REIT. It is the earnings stream that is important here; and with European index-linked rents that 5c dividend is secure; yet we stand on an 8.9% yield.

Truly bizarre that UK institutions are not buying the stock.

Though perhaps one did so at 13:03 today. 3.232,410 bought at 48.82p!

An odd amount at an odd price for a worked sale or purchase.

3mins earlier another buy of 533,410 at 48.80p

[pyufak] 06/10/2023 14:51

Hiya did watch the management presentation a month or so back. Have not gone back through that - I will check that out now. Thanks SkyShip - I do disagree a little on action needed with my view more aggressive action now is insurance against credit rating action and further increases in market interest rates.

[skyship] 06/10/2023 14:39

Ahh - yes, I recall yous saying so.

[williamcooper104] 06/10/2023 14:29

Alas I'm not a holder of the bond; I did try to but never got my bid filled Take your point on management promises

[skyship] 06/10/2023 13:41

Go to 11mins into the Presentation.

Frankly makes it very clear that your view above: "So a divi cut won’t kill market confidence in management" is for the birds!

[skyship] 06/10/2023 13:35

WC104 - wrong. View the Presentation. Dividend IS very much promised to be held, possibly even increased with the Final payment.

There is no reason whatsoever to cut to fund a Green Bond buyback.

You may be a holder of the latter; but don't let that cloud your judgement.

[williamcooper104] 06/10/2023 13:33

They should use the RCF to buy back bonds and then repay it from cancelling the divi If they just cancel the divi saying they'll buyback bonds the price of the bonds will of course run away from them

[williamcooper104] 06/10/2023 13:30

Totally agree They've not made such a song and dance about keeping the divi come what may (see DGI9 for that) So a divi cut won't kill market confidence in management And as you say buying back bonds at 6 not only increases future divi capacity but reduces longer term it's cost of equity by reducing debt It's a win win other than a few painful weeks when the share price will inevitably crash

[skyship] 06/10/2023 13:20

Pyufak - Now quite dated, but I assume you've watched through the 2022 Results Presentation in the Header.

I would say that makes it pretty clear that no such drastic action is required; and the dividend is secure.

[pyufak] 06/10/2023 12:56

Okay, I was confused. Saw the German sale but thought Skyship’s remarks related to a new potential sale. It’s a good sign for other potential asset sales which we have to hope for soon.

Continue to read up on EBOX today. I feel it requires decisive management decisions - my biggest fear is inaction from management ‘hoping’ rather than taking control and seizing the opportunity they have due to the low fixed debt cost for the next 3 years.


Post German sale - RCF use will be 14m which is good news as the interest rate hedges roll off this month. There’s a further 33m committed spending on the portfolio I am sure they’ll be in no rush to implement but will use expensive RCF funding when they do. LTV using March values at 42%.

So a further asset sale repays the RCF and gives cash for reinvestment or buying back the ‘26s bond at 6%.

To me there is an element of urgency on the debt - if they lose IG rating on their debt the coupon steps up 1.25% so 7.5m hit to net revenue annually. Therefore, they have to maintain IG even if it means selling an asset marginally below book value or if there is anything can be done on the dividend. I can’t imagine asset values going to do well at the next reporting period so LTV likely to head higher.

The dividend I think is interesting. I’ll see if I can e-mail them and asking about constraints surrounding it. If they cancelled it tomorrow and said the free cash flow would be used to buyback the ‘26s bond I think I’d be very happy. Covenant / LTV / credit rating concerns dealt with while we get through the next tricky year or two. Share price is so far below NAV I don’t know how negative it would be after a week or so

[skyship] 06/10/2023 09:05

...& the extract re the number of interested parties was taken from QuotedData report - see link in my P. No. 922 above.

[killing_time] 06/10/2023 08:13

Hi Pyufak, It was an RNS on the 9th August, Sale of Hammersbach Germany for Euro64.4m

[pyufak] 06/10/2023 07:52

Hi SkyShip,

Where did you read about the sale of the German unit please. I can’t find that in a RNS - done similar to you and rereading / familiarised myself with the recent presentation + recent German sale reducing LTV to 42% and asset management actions.

[williamcooper104] 05/10/2023 23:08

The family silver still selling at solid silver prices

[williamcooper104] 05/10/2023 23:08

For a reit it's 90 percent of taxable income, with capital allowances that's usually quite a bit lower especially as having always distributed all or more than all their income they'll have loads of unclaimed capital allowances Failing that they can issue scrip dividends - HMSO didn't pay a cash dividend for years

[pyufak] 05/10/2023 19:07

Yeh, I mean at what point do we consider selling the family silver or taking a hit on purchase price on some of the assets … if we can sell that is.

[hpcg] 05/10/2023 15:07

As an IT they have more flexibility than a REIT, but not much more. They must payout 85% of income received in the year. I don't know if the interest element make a difference at all, or whether that is just beneficial (in some cases) to the tax situation of the recipient. When the distribution was uncovered by income then a cut would have been easier, but per the last annual report this year they said it would be fully covered.

[essentialinvestor] 05/10/2023 14:20

This may need another chunky asset sale (provided it's at a decent price)
to significantly turn sentiment?.


Scant signs of directors buying across the sector ATM, whether you view this as significant or not..

[williamcooper104] 05/10/2023 14:01

Who said payback the debt Buy it back at c86c I'd be happier if they cancelled the divi to do that even though would be brutal short term on the sp

[skyship] 05/10/2023 13:16

"...would like to see confirmed sales to give me more confidence on the LTV."

Totally agree; but that extract I quoted in 922 above does give me confidence that they are likely finding a reasonably receptive Market for the further intended sales.

[pyufak] 05/10/2023 13:06

at what point so we welcome a dividend cut to pay down debt ... or just park the cash in a money market fund getting 4% as insurance against refinancing risk in 4 years time. If I am in this for the long term I would certainly be welcoming that decision as in my long term best interests. Holding the dividend while attempting to sell assets is an alternative strategy - some positive comments above from Skyskip but I for one very much would like to see confirmed sales to give me more confidence on the LTV. Added today.

[alan pt] 04/10/2023 18:51

Had a few more today, but I'm about 10% down overall, excluding divi

Quite surprised, I thought that anything under 60p would be a short lived bargain, but the interest rate panic is stalking the markets again

Still, a nice little panic is often an opportunity...

[salpara111] 04/10/2023 18:27

Looks like I might have pulled the trigger a bit early at 50.5.
The bond market is currently throwing a hissy fit as there is now a dawning realisation that interest rates are not going to drop any time soon which I guess affects all assets of this type.
I'm comfortable with my entry point....assuming they can hold the attractive divi level.