Tritax Eurobox Share Discussion Threads

[bpc10] 06/3/2021 23:38

Read yesterday's RNS:Investor demand for the Issue has significantly exceeded the targeted size of approximately GBP173 million (EUR200 million). The Board, after careful consideration with the Manager and in consultation with its Joint Financial Advisers, has determined to increase the size of the Issue to approximately GBP198.4 million (EUR230 million) through the Placing Programme. In taking this decision the Board has taken into account the strength of the Manager's near-term investment pipeline.

[speedsgh] 06/3/2021 23:13

How do you know that the fundraising is oversubscribed?

[nigeldoug1] 06/3/2021 10:14

Over subscribed....bodes well!

[petewy] 28/2/2021 13:24

Thanks PDT.

[pdt] 28/2/2021 12:21

Tipped today in the Daily Mail Midas Column

[speedsgh] 20/2/2021 17:09

Tritax Eurobox seeks £173m as it looks to double in size -

Tritax Eurobox (EBOX) has announced plans to raise for a £173m (€200m) equity raise, after a strong rally in its shares since the autumn with the European ‘big box’ market buoyant amid an e-commerce boom.

The listed property fund, the sister strategy of the UK-focused £3.2bn Tritax Big Box (BBOX), is £446m in size today and counts tenant likes Amazon in its portfolio of continental logistics assets.

EBOX is planning to issue 168 million shares at a price of 103p per share, as well as seeking approval for a placing programme of another 300m shares. Taken together, that would more than double the real estate investment trust’s size.

‘Current rates of market penetration for online sales in Continental Europe materially lag that seen in the UK and has the potential to grow exponentially in the coming years,’ said QuotedData’s property analyst Richard Williams.

Unlike some of the most recent closed-end fund raisings, the share issue is available to private investors through the intermediary offer for stockbrokers.

The new shares are priced at the end-of-September net asset value (NAV) of €1.19, converted at the current exchange rate, representing a 2.4% discount to yesterday’s closing share price. However, broker Numis Securities said the issue was being undertaken at a 2% premium when adjusting for the two dividends which have been paid since the autumn.

EBOX’s shares slipped 1.4% to 104p after the announcement on Friday.

Tritax expects to use the proceeds from the equity raise, along with existing cash and debt, to acquire a near-term pipeline of prime big box logistics assets.

This includes three properties in Germany with a value of €317m, plus three more locations valued at €99m, two in Italy and one in Germany. All the assets have been sourced off-market through relationships with developers and asset managers.

Nick Preston and Mehdi Bourassi, the managers of the 3.8% yielding property fund, have also identified €81m of development opportunities within EBOX’s current portfolio.

Adding value through development is something the managers have said is an increasing focus against the backdrop of rising prices and lower yields in core markets, as retailers scramble to respond to increased demand for online shopping during the Covid-19 pandemic.

They are confident the proceeds of the initial raise can be deployed within three months.

The fund also announced the sale of an asset in Poland for €65.5m at a 15% uplift earlier this week.

Additionally, EBOX has agreed to reduce its management fees by 0.15% on net assets above €500m (£433m). Fees will now be 1.3% per annum up to €500m, 1.15% to €2bn and 1% thereafter. Previously, 1.3% was levied on assets up to €1bn.

Numis analyst Andrew Rees noted that still left charges considerably higher than its nearest competitor, £297m Aberdeen Standard European Logistics Income (ASLI).

‘While the fee reduction will be welcomed by shareholders, it is interesting to note that it remains considerably higher than [ASLI], which charges 0.75% of net assets up to €1.25bn and 0.60% thereafter and also offers exposure to European Logistics markets,’ he said.

The issue and placing programme will be put to shareholders at a general meeting on 8 March.

EBOX’s shareholders have received an 11.7% total return since the fund listed in July 2018, according to Morningstar data. ASLI, whose shares have moved to trade at a wide 18% premium, has delivered 34.5% over the same period, although NAV growth has been more muted.

ASLI-manager Aberdeen Standard Investment announced it would buy a 60% stake in Tritax in December.

[makinbuks] 19/2/2021 14:29

OK so the estimated NAV now is greater than the €1.19 at 30th September. Fair comment. I'm just pleased existing holders can participate

[williamcooper104] 19/2/2021 13:46

You also have EPRA NAV - it's an industry standard - it's basically statutory NAV adjusted for mark to market on debt, which is usually negative such that EPRA NAV is usually higher than GAAP NAV

[cordwainer] 19/2/2021 13:27

pretty sure edward's enav means current estimated nav which is 128.9 according to HL today.

[makinbuks] 19/2/2021 12:08

And me, not clear edwardt what "below spot enav" means. I read they are issuing at NAV therefore no dilution assuming you participate. Deals are ready to roll and there a reduction in the management fee. Sound proposal

[speedsgh] 19/2/2021 08:09

Call me a cynic but I guess this partly explains the strong share price recently. Regardless I will also be partaking.

[cordwainer] 19/2/2021 07:26

I'll do my best to fully participate in the placing though - otherwise i guess it would be dilutive.

[edwardt] 19/2/2021 07:19

Yeah but clearly dilutive to existing shareholders as below spot enav. Never a fan of that.

[cordwainer] 19/2/2021 07:05

I'm not against the today's proposal

[edwardt] 17/2/2021 15:29

ok - subject to euro/sterling risk as is simply sterling line of stock - not currency hedged. my mistake.

[speedsgh] 17/2/2021 15:03

edwardt - Not so sure about that. The only references I can find to hedging in the most recent 2020 annual report is hedging against interest rate risk, e.g.:

"The Group’s principal financial assets and liabilities are those that arise directly from its operations: trade and other receivables, trade and other payables and cash held at bank. The Group’s other principal financial assets and liabilities are bank borrowings and interest rate derivatives, the main purpose of which is to finance the acquisition and development of the Group’s investment property portfolio and hedge against the risk of interest rates rising. The book value of the Group’s financial instruments that are carried in the financial statements approximates their fair value at the end of the year."

[edwardt] 17/2/2021 14:38

they use hedging on the euro don't they? or do i have that wrong.

[petewy] 16/2/2021 18:33

Makin they pulled this on me. Ring up and buy. the epic of the share I wanted clashed with another with no KIV. So how could I read it.

[makinbuks] 16/2/2021 12:34

I tried to add to my holding using ii yesterday but couldn't because no KIV document has been lodged

[makinbuks] 16/2/2021 12:33

I agree, although the mainland Europe market is maybe not as hot as the UK and the strength of the pound recently is an issue

[edwardt] 16/2/2021 11:35

thanks so this would infer the enav is quite a way forward from september 30 and a cursory look at rivals would infer value here in my humble opinion. thoughts welcome!

[speedsgh] 15/2/2021 07:45

EUR65.5M asset sale in Poland ahead of book value -

Recycling assets to capitalise on value-add opportunities

€65.5 MILLION SALE OF LOGISTICS PROPERTY IN LODZ, POLAND, 15% AHEAD OF LATEST BOOK VALUE

Tritax EuroBox plc ("Tritax EuroBox" or the "Company") announces that it has agreed the sale of its asset in Lodz, Poland for €65.5 million, 15% above its most recent valuation at 30 September 2020 and, based on the Company's target gearing of 45%, delivering an attractive geared IRR of 16.5% to shareholders, above the Company's long term target of 9% total return per annum.

The asset was originally acquired by the Company in April 2019 and included a forward funding pre-let development opportunity to expand the existing site by a further 52,000sqm, which was completed in May 2019. Since then, the asset has provided a period of stable income and capital growth.

With an unexpired lease term of 6.7 years to Castorama and no other imminent asset management opportunities remaining at the 101,000 sqm asset, the sale allows the Company to realise gains through the profitable disposal of Lodz and recycle proceeds into higher returning asset management initiatives and its strong development pipeline, in line with the Company's refined strategy.

The sale, to clients of Savills Investment Management, is for €65.5 million before capital gains tax, representing a 4.95% gross initial yield, compared to a purchase cost of €55.0 million, which reflected a gross initial yield of 5.80%.

Nick Preston, Fund Manager of Tritax EuroBox, commented:
"The positive structural trends, which underpin the significant demand for logistics space, are expected to continue to strengthen further over the long-term. This profitable sale of one of our earlier asset purchases, 15% ahead of the latest book value, has delivered strong returns to our investors and is in line with our refined strategy of taking full advantage of these trends and crystalising profit, allowing us to redeploy capital into higher returning investment opportunities.

These attractive value-add opportunities include asset management initiatives within our existing high-quality portfolio and also the funding of new assets from the attractive pipeline we have access to through our development partners. This development pipeline enables us to acquire new high-quality logistics assets in a more cost-effective manner than competing in the open market, delivering enhanced value to our shareholders."

[speedsgh] 15/2/2021 07:43

edwardt - AFAIAA we are unlikely to get a NAV update until release of Interims in May which will give NAV to end of March.