Tritax Big Box £500 million Debut Senior Unsecured Notes and new £350 million Unsecured Revolving Credit FacilityRead more
Tritax Big Box is the UK’s only Real Estate Investment Trust giving pure exposure to Big Box logistics assets. We selectively acquire, own and manage the UK’s best logistics assets that are mission critical to our tenants.
We utilise our expertise, specialist sub-sector focus and knowledge to deliver out-performance with the objective of delivering attractive, sustainable and growing income together with capital protection and growth for our Shareholders.
We aim to provide attractive income… 5.7% ungeared portfolio running yield
We aim to provide sustainable income… 15.3 years WAULT
We aim to provide growing income… 6.40 pence progressive dividend target*
*Dividend per share target for 2017
Our Company has a number of important strengths, which we believe make us a compelling business, and well positioned for further success:
The fundamentals of the Big Box market are compelling. Demand from tenants is strong because Big Boxes offer them significant economies of scale and cost savings not available from smaller, older buildings. Equally they are vital for the swiftly evolving retail market and, in particular, for e-commerce, which is still at a relatively early stage of development and is growing rapidly in the UK.
This supply/demand imbalance benefits asset owners, producing attractive income and value growth.
Since our IPO in December 2013, we have rapidly, but selectively, built one of the most attractive portfolios in the UK quoted real estate sector. Our portfolio is well diversified by size, geography and tenant. The portfolio metrics reflect the strength of our assets, which are typically modern and occupy prime logistics locations. Many of our tenants have made significant investment in respect of internal fit-out and sophisticated automation, which can, and typically does, eclipse the cost of the actual building. Such high levels of investment demonstrates long-term commitment to the asset.
Our high-quality portfolio, combined with a low cost base, generates a high-quality, sustainable and growing income stream. This allows us to target a progressive dividend that can offer appealing risk-adjusted returns. For 2015, we declared a dividend of 6.0 pence per share which was fully covered by Adjusted earnings, giving us one of the highest dividend yields among UK REITs. For 2016 we have increased our target dividend for the year to 6.2 pence per share.
We have exercised strong capital discipline, standing firm on our pricing policy and turning down numerous unsuitable opportunities. Nonetheless, since listing, we have been successful in achieving our investment aims, acquiring an average of approximately one asset every month. Our ability to complete transactions quickly is aided by our ready access to attractive finance.
Tritax Management LLP is our Investment Manager. We benefit significantly from the Manager’s knowledge, expertise and relationships. These allow the Manager to source and negotiate deals off-market, at attractive pricing levels, which offer good value for Shareholders and meet vendors’ desire for quick and certain execution. This has given us a reputation as one of the industry’s most reliable purchasers and forward-thinking owners and managers, making us the obvious choice for potential vendors of Big Boxes.