Over the six months to the end of June 2016, Tritax Big Box REIT’s EPRA net asset value per share increased by 4.23 pence or 3.4% to 128.91 pence (31 December 2015: 124.68 pence). Dividends declared for the six month period totalled 3.1 pence per share, putting the Group on track to hit the target of 6.2 pence for the full year. Adjusted earnings per share for the period were 3.16 pence per share. Tritax outperformed its peer group – its total return for the six month period was 5.8%, compared to the FTSE EPRA/NAREIT UK REITs Index total return of -11.7%.
The portfolio was independently valued at 30 June 2016 at GBP1.53 billion, reflecting a GBP41.1 million or 2.8% valuation gain during the period. Contracted rental income, including forward funded developments, increased to GBP78.59 million per annum (31 December 2015: GBP68.37 million).
Tritax raised GBP200 million of equity during the period, through a substantially oversubscribed share issue. They used this to acquire three Big Boxes during the period, with an aggregate purchase price of GBP177 million. The average net initial yield of the property portfolio at acquisition was 5.8%, against the period end valuation of 4.8% net initial yield. At the same time, four forward funded pre-let developments reached practical completion, with a total value of GBP271 million. At the period end, the portfolio contained 28 assets, covering approximately 14.5 million sq ft of logistics space.
At 30 June, Tritax’s loan to value (“LTV”) was 32% (31 December 2015: 33%). This will rise to approximately 40%, including the fulfilment of their forward funded development commitments.
The portfolio is 100% let, or pre-let with developer licence fee received during the construction period. The weighted average unexpired lease term (“WAULT”) was 16.3 years at end June, compared to 16.5 years at 31 December 2015 and ahead of the initial target of at least 12 years.
BBOX : Tritax Big Box outperforms peers