Tritax Eurobox Share Discussion Threads

[cwa1] 12/5/2021 12:03

Couldn't resist a small top up at 110, results on Tuesday

[cwa1] 12/5/2021 09:34

There seems to be an AT trader nibbling away at the bid constantly, wonder how much they have to go?

[williamcooper104] 11/5/2021 10:59

Liquidity, spreads and greater institutional investor interest All of which will drive share price to a premium over NAV which gives a comparative cost of capital advantage of the REIT public market equity over private markets, which leads to a virtuous circle of equity raises and accretive investments leading to greater size/premiums and accretive acquisitions That's the real advantage, as you say the direct cost synergies are likely to be small (and will be more for the benefit of the external manager), debt might be a bit cheaper too

[makinbuks] 11/5/2021 10:25

Why would being a bigger fund get them a better price? I think any potential seller or developer would sell to the highest bidder regardless of their size.

I think the benefit would be cost reduction with one trust deed, one set of lawyers, one quote, one set of advisors etc. The value of that would be compared to the one off cost of a merger which would be considerable.

There may also be a benefit in deals with banks arising from the greater size and reduced finance costs

[williamcooper104] 10/5/2021 21:12

Struggling to think of a large continental European logistics reit (SGRO does have European exposure though)

[williamcooper104] 10/5/2021 21:10

There will be tax complications given that both companies have assets in multiple jurisdictions But they are unlikely to be insurmountable after having indulged the lawyers

[speedsgh] 10/5/2021 20:55

Yes, I suspect there isn't really that much for them to consider on the subject. I am sure they will readily overcome any possible complexities.

[williamcooper104] 10/5/2021 20:44

Such an obvious move to merge them - just by being bigger they'll get a better price

[speedsgh] 10/5/2021 20:25

Interesting comments on a possible future tie-up between EBOX & ASLI (from 30:15)...

Interviewer: There are a number of questions about Aberdeen Standard and their investment in the parent, Tritax. There are a number of questions about the ASL funds as well. I'm sure you can't answer this question but from a strategic point of view are you able to make any comment about the relationship that you have as a business at a parent level with Aberdeen Standard or not?

Nick Preston: The deal hasn't finally closed yet, we're still awaiting regulatory approval. However the plan is, once it does, that Tritax as a business will be autonomous of the main Aberdeen entity. However I would say, and I suspect this is where these questions are coming from, what are the future prospects for both Tritax Eurobox and ASLI which are operating in broadly the same space with similar strategies? My answer to that is: it's still too early to say other than it is a very obvious question to ask and I know that both boards are considering this. And ultimately we are the manager. The boards are the ones who will make decisions on anything here and they are consdering this and will be considering it in due course. I strongly suspect that this will take some time, that the acquisition of Tritax just needs to bed down and the boards will sound out what investors' views are and be analysing the pros and cons - and there's an awful lot of complexity around this as you can imagine - but it's too early to say yet is the first answer. However it is an obvious question to answer, therefore I can't really say any more than that at the moment.

[speedsgh] 10/5/2021 19:19

This video presentation (part of Hardman & Co's third virtual Investor Forum) by EBOX fund manager, Nick Preston, is nearly 3 months old but is well worth the time. Gives an in-depth explanation of the EBOX investment case. 20min presentation followed by 14min Q&A...

Hardman & Co Investor Forum: Tritax EuroBox -

Tritax EuroBox invests in very large logistics assets on prime sites on the continent, which are crucial to the growing and lengthening supply chain networks of logistics companies and online retailers.

Nick Preston, CEO of Tritax EuroBox, presented the company as the European logistics real estate investment company, adding value to investors through their innovative acquisitions and asset management in a highly supportive market.

The wave of online retailing and digitalisation has changed the dynamics of the logistics market, proving highly favourable for EuroBox and its tenants. Operationally, Nick shared with investors that 100% of their assets are income producing. These resilient and growing income streams underpin returns and future expansion may target assets at earlier stages of development, thus boosting yields further.

The live audience took interest in the investment trust with questions coming in about the gearing for further expansion, premium to NAV, key differences between EuroBox and the other Tritax (BigBox, which focuses on the UK), and about the relationship with Aberdeen Standard Life.

[speedsgh] 10/5/2021 16:32

Notice of Half Year Results -

Tritax EuroBox plc (ticker: EBOX (Sterling) and BOXE (Euro)), which invests in a high-quality portfolio of very large, prime logistics real estate assets strategically located across Continental Europe , will announce its results for the six months ended 31 March 2021, on Tuesday, 18 May 2021 .

A Company presentation for analysts and investors will take place via a live webcast and audio only dial in at 10am (BST) on the day...

[williamcooper104] 04/5/2021 22:08

That's it Europe was behind the U.K. in terms of both yield and on-line penetration /rental growth

[makinbuks] 04/5/2021 18:21

Ah, that's interesting so yield compression on the continent catching up with the UK

[williamcooper104] 04/5/2021 11:40

A big Dutch logistics portfolio is under offer at a sub 3 yield

[makinbuks] 04/5/2021 11:27

Somewhat taken aback at this recent rise. Not sure whether to trim and take profits or let run. Must be at quite a premium now

[edwardt] 13/4/2021 11:05

when is the next nav update??

[speedsgh] 01/4/2021 22:42

Thanks, Wc104 - missed that. That is reassuring.

[williamcooper104] 01/4/2021 16:54

It's a 20 hectare site with potential for another c450k sf

[speedsgh] 01/4/2021 16:31

Agreed. Very little scope for yield compression, even if the prime logistics property yield is 3.4% in Germany. Which means value accretion will need to come from asset management (no mention of land available for further development in the rns) or rental increases (bearing in mind the tenants at both properties are currently benefiting from rent indexation holidays).

[makinbuks] 01/4/2021 10:44

3.9% isn't too impressive. German property never seems to rate as highly as the UK

[cwa1] 01/4/2021 08:20

You certainly can't accuse them of letting the grass grow under their feet if nothing else:-



1 April 2021

ACQUISITION OF TWO HIGHLY SUSTAINABLE LOGISTICS ASSETS IN PRIME LOCATIONS IN GERMANY FOR EUR290.9 MILLION

Swiftly deploying recently raised funds to capture significant opportunities in the core continental European logistics market

Tritax EuroBox plc ("Tritax EuroBox" or the "Company") announces that it has agreed the purchase of two assets in Germany for a total consideration of EUR290.9 million excluding acquisition costs. The two transactions are structured as share deals and the combined rental income amounts to EUR11.38 million per annum, reflecting a combined net initial yield of 3.9%.

[williamcooper104] 15/3/2021 13:25

You can get growth by levering and developing and then having a premium rating which allows for accretive equity raises All REITs distribute 90 percent of taxable income Many have delivered on growth (and of course on de-growth too ;)

[makinbuks] 15/3/2021 12:40

We're all hoping that what has happened to BBOX in the UK will be replicated on the continent with EBOX. To be honest I wouldn't expect to see huge share price growth from a property company paying out its income as dividends. I'm happy if the discount to NAV is narrow, the market supports the thesis and keeps the NAV moving upwards and the income is fully covered. This is a diversifying holding not a growth play

[bpc10] 13/3/2021 12:12

In the last 30 months the share price hasn't made any progress, looking at the chart. Why is this company tipped for big things and significant share price growth?

[cwa1] 12/3/2021 08:09

Some good news this morning:-

12 March 2021

INVESTMENT GRADE RATING ASSIGNED TO TRITAX EUROBOX BY FITCH RATING LIMITED

Tritax EuroBox plc (EuroBox or the Company), which invests in a high-quality portfolio of very large, prime logistics real estate assets strategically located across continental Europe, announces that Fitch Ratings Limited (Fitch) has assigned a BBB- long-term corporate credit rating to the Company, EuroBox's first Investment Grade credit rating.

As a result, the ratings condition in the existing revolving facility agreement is satisfied, which will result in a step down in the cost of this debt of approximately 30 basis points (depending on the prevailing Loan to Value ratio). In addition to the immediate strengthening of the Company's earnings per share due to the reduction in financing costs, the Investment Grade credit rating will allow the Company access to the Debt Capital Markets in line with its near-term ambition.

Mehdi Bourassi, Finance Director of Tritax EuroBox, commented:

"The Company's recent successful fundraise allows us to capitalise further on the significant opportunities that exist in the continental European logistics real estate market. Obtaining an Investment Grade credit rating marks a significant milestone in the evolution of the Company, demonstrating our maturity and stability. It will enable access to a wider pool of financing strategies, leading to even greater resilience and a lower cost of debt.

We look forward to updating investors on the deployment of the recently raised capital as we further strengthen and diversify our portfolio in line with our long-term strategy."