Profits took a quantum leap at logistics warehouse owner Tritax Big Box Reit (BBOX), reflecting a slew of acquisitions funded by equity issuance. In the first half the company raised £229m of equity in two separate fund-raisings. It used the cash to buy eight 'big box' units - that's property shorthand for retail distribution warehouses - expanding the portfolio total to 22 and taking its value above £1bn. From a standing start at flotation in December 2013, the shares are now listed on the FTSE 250 index.
Importantly, the company seems to be getting bang for its buck. The portfolio valuation includes an uplift of 12 per cent over the acquisition price of the assets (excluding acquisition costs). One reason may be that the investment manager, Tritax Management, has been able to secure off-market deals - to date, nearly 80 per cent of the portfolio has been bought this way. Helped by modest gearing, adjusted book value per share rose 15 per cent to 117p as a result.
The trust's tenants, which are mostly supermarket and retail names such as Tesco (TSCO), B&Q and Ocado (OCDO), are sticky. That's because the average unexpired lease term - the length of time the tenants are tied in for - is 15.8 years across the portfolio, down slightly from the same period last year but well above the 12-year target.
| TRITAX BIG BOX REIT (BBOX) | ||||
|---|---|---|---|---|
| ORDPRICE: | 119.3p | MARKET VALUE: | £806m | |
| TOUCH: | 119.1-119.4p | 12-MONTH HIGH: | 120p | LOW: 106p |
| DIVIDEND YIELD: | 4.4% | TRADING PROPERTIES: | nil | |
| PREMIUM TO NAV: | 2% | - | - | |
| INVESTMENT PROPERTIES: | £964m | NET DEBT: | 22% | |
| Half-year to 30 Jun | Net asset value (p) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2014 | 102 | 7.6 | 3.7 | 1.85 |
| 2015 | 117 | 71.0 | 12.6 | 3.00* |
| % change | +15 | +834 | +241 | +62 |
Ex-div: 3 Sep Payment: 23 Sep *Includes 1p half-year dividend for Jan-Feb (paid), 1.5p half-year dividend for Mar-May (paid) and 0.5p for June | ||||
