Tritax Big Box expands portfolio in 2018 – Tritax Big Box has released its 2018 results today. Some of the highlights are: dividends declared in 2018 totalled 6.70p per share, meeting its target. The earnings per share increased by 8.0% to 6.88p per share in 2018. EPRA NAV per share increased 7.4% resulting in a year end value of 152.83p. The total return (increase in EPRA NAV plus dividends paid) was 12.1% for the year ended 31 December 2018, a +3.1% difference over the target. The portfolio saw an increase in their annual rent roll by £35.17m and now lies at £161.12m. Tritax’s portfolio has been independently valued at £3.42bn across 54 assets and 114 acres of land owned. £156m of company equity was raised in 2018 through an oversubscribed share issue. The share price, however, fell 13.9%, and administrative and other expenses raised to £18.07m from the 2017 £14.16m.
The increase in EPRA NAV was mainly due to new addition of logistics facilities and by continuing or securing new leases. For example, Kellogg’s signed a 10 year lease in Manchester with a 20% increase in rent from the previous level. Tritax also acquired an 87% economic interest in DB Symmetry, which will deliver access to a potential 38.2 million sq ft of logistics assets across key locations in the UK. Tritax acquired eight assets during the year totalling £641.5m less purchasing costs.
The chairman of Tritax, Sir Richard Jewson, JP, said this about the company’s performance and future involving Brexit, “The quality of the group’s portfolio and customer base mean that we are confident of continuing to deliver secure dividends to Shareholders, resulting in attractive returns in a low interest rate environment. While the continued delays and lack of clarity over Brexit presents a substantial uncertainty for the UK economy, our market has remained robust. Since the referendum in June 2016, occupiers have continued to search for space, rents have risen and yields have hardened. Brexit is also encouraging manufacturers and retailers to hold additional stock domestically, increasing occupational requirements for UK warehouse space while supply constraints continue. This reinforces the favourable dynamics for landlords. Nonetheless, Brexit does present significant risk for the UK economy which could impinge upon the current positive attributes of our market.”
BBOX : Tritax Big Box expands portfolio in 2018