- Fourth quarter dividend raised 10 per cent higher than preview three quarters
- More than a third of rents up for review this year, likely pushing income higher
Blistering demand for logistics space last year pushed asset values higher across Tritax Big Box’s (BBOX) portfolio and helped the commercial landlord generate an impressive total accounting return of 20 per cent.
Management also lifted the fourth quarter dividend to 1.7125p a share, 10 per cent higher than the prior three after rebasing the payout in the immediate wake of the pandemic. This year, the first three quarterly dividends will equate to 25 per cent of the previous financial year’s 6.4p payment, with potential progression at the fourth quarter payment.
There is the potential for a greater rate of rental growth this year as 37 per cent of rents are up for review, compared with 21 per cent in 2020. The majority of those will be linked to RPI inflation and around a quarter will be performed on an open market basis.
The consensus NAV forecast for the end of this year was raised to 182.9p a share, broadly in line with the current share price. Buy.
Last IC view: Buy, 158p, 6 Aug 2020
| TRITAX BIG BOX REIT (BBOX) | ||||
| ORD PRICE: | 184p | MARKET VALUE: | £ 3.16bn | |
| TOUCH: | 183.2-184p | 12-MONTH HIGH: | 189p | LOW: 79p |
| DIVIDEND YIELD: | 3.5% | TRADING PROP: | nil | |
| PREMIUM TO NAV: | 8% | |||
| INVESTMENT PROP: | £4.05bn* | NET DEBT: | 44% | |
| Year to 31 Dec | Net asset value (p) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
| 2016 | 128 | 91.8 | 10.5 | 6.2 |
| 2017 | 142 | 248 | 19.5 | 6.4 |
| 2018 | 152 | 253 | 17.5 | 6.7 |
| 2019 | 150 | 141 | 8.4 | 6.85 |
| 2020 | 170 | 450 | 26.3 | 6.4 |
| % change | +13 | +219 | +213 | -7 |
| Ex-div: | 18 Mar | |||
| Payment: | 01 Apr | |||
| *Includes £28.5m in joint ventures | ||||
