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Tritax Big Box on road to serious growth

Profit up 7.7% at Tritax Big Box REIT

Tritax Big Box on road to serious growth – Tritax Big Box REIT posted an uptick in profits in the first half of the year on the back of strong rental growth.

Operating profit before changes in fair value of investment properties increased by 5.7% to £60.7m, while rental income grew 3.5% to £166.8m. The company’s portfolio value now stands at £3.85bn, up 12.6% year-on-year.

The £320m acquisition of DB Symmetry, which completed in February, depressed the group’s NAV, which fell 1.8% to 150.08p. Excluding these costs, EPRA NAV growth was 0.7%.

It declared a dividend for the period of 3.425p per share, up 2.2% on-year, putting the company on track to hit its full-year target of 6.85p.

Operational Highlights

Since the group acquired an 87% economic interest in DB Symmetry it has received the first planning consents – at Biggleswade for a 661,201 sq ft facility pre-let to The Co-operative Group and at Symmetry Park, Kettering, where it has outline consent for up to 2.3m sq ft of logistics space.

It also completed the building works at the pre-let asset at Corby and the speculative developments at Bicester and Doncaster, which combined added 1.2m sq ft to the investment portfolio.

It has 6.7m sq ft of logistics assets under development, of which 96% is either pre-let or has been let during the course of construction.

[QD comment: Tritax Big Box’s shift in focus since its acquisition of DB Symmetry, with its landbank of circa 2,500 acres, seems to have come at the right time for the company. It has moved out of the tough investment market in which it has operated in since inception into a position where it can grow organically (although it will still buy assets if the right opportunity arose). Its strong relationships with the occupier market and track record of landing pre-lets stands it in good stead to meet its stated target of 7-8% yield on cost on the developments and ultimately substantial earnings growth.]

BBOX : Tritax Big Box on road to serious growth

 

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