Hear Colin Godfrey and Frankie Whitehead present our Interim Results for 6 months ended 30 June 2017

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Interim results for the six months ended 30 June 2016

11 August 2016

Tritax Big Box REIT plc (ticker; BBOX), the only real estate investment trust giving pure exposure to very large logistics assets (“Big Boxes”) in the UK, is today reporting its interim results for the Group for the period from 1 January to 30 June 2016.

H1-results-tables 1

Financial highlights

  • Dividends declared for the six month period of 3.1 pence per share, putting the Group on track to hit the target of 6.2 pence1 for the full year. Our dividend is fully covered by Adjusted earnings2.
  • Adjusted earnings per share totalling 3.16 pence per share2 for the six month period.
  • Total return for the six month period of 5.8%, compared to the FTSE EPRA/NAREIT UK REITs Index total return of -11.7%.
  • Portfolio independently valued at 30 June 2016 at £1.53 billion3, reflecting a £41.1 million or 2.8% valuation gain during the period.
  • EPRA net asset value per share increased by 4.23 pence or 3.4% to 128.91 pence (31 December 2015: 124.68 pence).
  • Contracted rental income, including forward funded developments, increased to £78.59 million per annum (31 December 2015: £68.37 million).
  • Raised £200 million of equity during the period, through a substantially oversubscribed share issue.
  • Period end loan to value (“LTV”) of 32% (31 December 2015: 33%), which increases to approximately 40%, including the fulfilment of our forward funded development commitments.
  • The total expense ratio was 0.54% for the six month period, compared to 1.09% for the full year to 31 December 2015.

Operational highlights

  • Acquired three Big Boxes during the period, with an aggregate purchase price of £177 million, further diversifying the portfolio by geography and tenant.
  • Four forward funded pre-let developments reached practical completion in the period, with a total value of £271 million.
  • Average net initial yield of the property portfolio at acquisition is 5.8%, against the period end valuation of 4.8% net initial yield.
  • At the period end, the portfolio contained 28 assets, covering approximately 14.5 million sq ft of logistics space.
  • Our portfolio is 100% let, or pre-let with developer licence fee received during the construction period.
  • At 30 June 2016, the weighted average unexpired lease term (“WAULT”) was 16.3 years, compared to 16.5 years at 31 December 2015 and ahead of the initial target of at least 12 years.

Post balance sheet highlights

  • On 29 July 2016, the existing Helaba loan facility, secured on the asset let to Ocado, was extended by three years, taking the maturity of the facility out to July 2023.
  • On 1 August 2016, acquired the pre-let forward funded development in Wolverhampton for £56.3 million.
  • On 3 August 2016, agreed a new £72 million, c.13 year loan with Canada Life, at a fixed rate of 2.64%.
  • On 8 August 2016, the Company acquired an investment property in Manchester, let to Kellogg’s, for £23.5 million.
  • On 9 August 2016, the Company acquired an investment property in Peterborough, let to Amazon, for £42.9 million.

1 This is a target only not a forecast. There can be no assurances that the target will be met and it should not be taken as an indicator of the Company’s expected or actual future results
2 See note 7 for reconciliation
3 See note 10 for reconciliation

Richard Jewson, Chairman of Tritax Big Box REIT plc, commented:

“Despite a backdrop of uncertainty (and perhaps partially because of it), I believe the future of our Company remains favourable. UK retail continues to evolve, with e-commerce growth leading the way. Many of our properties have an e-retail focus and/or automation, aiding home deliveries or store replenishment. These facilities are delivering economies of scale benefits and cost savings crucial to competitiveness and efficiency in a market where the consumer has become ever more demanding. Our aim is to invest in modern, best in class properties that are mission critical to the tenants that operate from them. This also ensures that our portfolio is defensive whilst offering the strongest potential for value growth.

“We continue to work closely with our tenants, where possible supporting their business objectives whilst delivering value growth through asset management. Occupational demand continues to outweigh the supply of quality logistics buildings in the UK but this situation is even more acutely favourable for Big Boxes. The resultant strong rental growth is expected to continue, helping to grow our income and support our progressive dividend policy.

“Our Investment Manager has continued to perform well, identifying value whilst exercising capital discipline and building a strong, best-in-class portfolio of Big Box investments. Subject to continued support from our shareholders, the Board considers that the Company has both the opportunity and ability to deliver further value growth to our shareholders through attractive investments.”

For further information, please contact:

Tritax Group
Colin Godfrey (Partner, Fund Manager) via Newgate (below)

Newgate Communications (Financial PR)
James Benjamin
Zoe Pocock
Alex Shilov
Lydia Thompson

Tel: 020 7680 6550
Email: tritax@newgatecomms.com

Jefferies International Limited
Gary Gould
Stuart Klein

Tel: 020 7029 8000

Akur Limited
Anthony Richardson
Tom Frost
Siobhan Sergeant

Tel: 020 7493 3631

 

NOTES:
Tritax Big Box REIT plc is the only listed vehicle to give pure exposure to the “Big Box” logistics asset class in the UK and is committed to delivering attractive and sustainable returns for shareholders. Investing in and managing both standing and pre-let forward funded development assets, the Company focuses on well-located, modern “Big Box” logistics assets, typically greater than 500,000 sq. ft., let to institutional-grade tenants on long-term leases (typically at least 12 years in length) with upward-only rent reviews and geographic and tenant diversification throughout the UK. The Company seeks to exploit the significant opportunity in this sub-sector of the UK logistics market owing to strong tenant demand and limited stock supply.

The Company is a real estate investment trust to which Part 12 of the UK Corporation Tax Act 2010 applies (“REIT“), is listed on the premium segment of the Official List of the UK Financial Conduct Authority and is a constituent of the FTSE 250, FTSE EPRA/NAREIT and MSCI indices.

Further information on Tritax Big Box REIT is available at www.tritaxbigbox.co.uk

Meeting for investors and analysts and audio recording of results available
A meeting for investors and analysts will be held at 9.30am today at:

Newgate:
Sky Light City Tower
50 Basinghall Street
London, EC2V 5DE

In addition, later in the day an audio recording of this meeting and the presentation will also be available to download from the Company’s website: www.tritaxbigbox.co.uk

 

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