Tritax EuroBox will acquire assets earlier in the development process as it refines its acquisition strategy to a more value-add approach.
The company said the move would “support the delivery of secure and attractive dividends and capital growth for shareholders”.
As well as buying sites at an earlier stage in their development, it will also look at opportunities with value add potential through leasing events and vacant land.
It has not changed its investment policy and continues to target large warehouses in prime locations in Europe.
The company has exclusive partnerships with two European developers, Dietz and Logistics Capital Partners, that provides it with a significant pipeline of investment opportunities.
Tritax EuroBox has also updated its dividend policy and will now aim to pay out 90% to 100% of adjusted earnings per share each year.
Chairman Robert Orr said: “Our market is compelling, and the already positive structural trends, such as the growth of e-commerce, have accelerated demand for logistics space. We see exciting opportunities ahead of us and the refinements we are making to our strategy and dividend policy will support the delivery of secure and attractive dividends and capital growth for shareholders. We have a significant pipeline of growth opportunities and look forward to making further progress in the year ahead.”
The company made the announcement with full-year results to the end of September 2020 in which it posted a 5.3% increase in IFRS net asset value (NAV) per share to €1.19.
Its portfolio grew in value by 5.4% on a like-for-like basis in the year to €839.3m, while annualised passing rent jumped 16.7% to €40.6m.
Adjusted earnings per share was 4.16 cents, and it paid a dividend in the year of 4.4 cents. It has increased its guidance on the dividend for the first quarter of 2021, where it aims to pay 1.25 cents per share, an increase of 14%.
Following the acquisition of its 13th asset announced yesterday, the group is fully invested. It said it will take a more active capital allocation and recycling policy that could include the sale or partial sale of assets to fund new acquisitions, new debt facilities and when appropriate an equity raise.
Asset or partial asset sales would be of lower returning properties, with the capital recycled into new projects with higher return prospects.
EBOX : Tritax EuroBox refines acquisition strategy