It would appear the managers of Tritax Big Box (BBOX) have found a few more mega-sheds for sale. The REIT is planning to raise a £100m war chest through a placing, offer for subscription and a one-for-11 open offer. These new shares will be priced at 124p, a 5.8 per cent discount to the previous closing price and a 2 per cent premium to the basic net asset value (NAV).
Given last year's track record, there is every reason to believe Tritax's management can find more value in the tightly-supplied industrial warehouse sector. In the 12 months to 31 December, shareholders booked a total return of 24.1 per cent, based on 6p of reinvested dividends and a 15.7 per cent hike in NAV. However, the forward yield now looks a little slimmer at 4.8 per cent, based on a 6.2p dividend target for 2016. Subscribers to the placing will also not be eligible for next month’s 3p dividend, covering the last six months of 2015.
Analysts at Stifel are forecasting a 131p adjusted net asset value per share by the end of this calendar year.
