Tritax EuroBox has posted a 10.7% uplift in EPRA net tangible assets (NTA) in full year results to 30 September 2021.
The group’s EPRA NTA was €1.31 compared to €1.22 last year. The growth was mainly due to an increase in the value of its portfolio of 11.9% on a like-for-like basis, and more than 50% in the year including acquisitions, to €1,281.4m.
Basic earnings per share was 19.59 euro cents (2020: 10.6 euro cents) and adjusted earnings was 4.61 euro cents (2020: 4.16 euro cents). It paid a dividend per share for the period of 5 euro cents (2020: 4.4 euro cents).
During the period the group raised gross proceeds of €480m through two oversubscribed equity issues in March and September 2021 and also issued a €500m senior unsecured green bond in June 2021, significantly lowering the cost of debt and diversifying its funding sources into the debt capital markets.
It was able to tap into the bond market after being awarded a BBB- investment grade credit rating in March 2021.
Operational highlights
- Acquired prime logistics assets in Belgium, Germany (two assets) and Sweden, and forward funded the acquisition of a prime asset in Italy
- Disposed of the asset at Lodz, Poland, for €65.5m, 15% above valuation and delivering an IRR of 16.5%
- Launched construction of the extension to the Barcelona asset let to Mango, and achieved practical completion of new building at the Bornem asset in Belgium
- Signed a green lease with Samsung on the vacant units at Breda, the Netherlands, and let the vacant unit at Strykow, Poland
- Improved GRESB ESG score to 82/100, through initiatives including introducing ESG acquisition due diligence reports, implementing green leases and progressing solar PV installations
At the year end, the portfolio comprised 15 assets, with an average size of 70,027 sqm, and 27 tenants. The portfolio has a weighted average unexpired lease term (WAULT) of 9.3 years at 30 September 2021 (2020: 9.1 years), while 95% of rental income is subject to an element of indexation each year.
The group said there were numerous opportunities to drive income and capital growth into the future, including 145,068 sqm of land that can be developed and 30,938 sqm of floorspace subject to rental guarantees that can be re-let at higher rents.
Post year-end activity
The group has continued to deploy the proceeds of the September 2021 equity raise, agreeing to acquire a recently built prime logistics asset for €32m and agreeing to acquire land and fund the development of a €118m asset, both in the Rhine-Ruhr region of Germany. It also acquired a 48,000 sqm logistics asset close to Piacenza in Italy for €50m.
It completed a new green lease on the vacant unit in Nivelles, Belgium, on a nine-year lease to a leading Belgian supermarket operator at a rent 8% above the previous rental level.
The group has also issued its first private placement of €200m, further diversifying its sources of debt funding and extending the weighted average maturity of the debt facilities.
Robert Orr, chairman said: “This has been a significant year in the company’s development, as the business’s growing maturity has helped us to build both scale and momentum. We are successfully implementing our strategy, acquiring prime assets in excellent locations, extracting value from the existing portfolio and continuing to advance our ESG agenda. This has helped us to deliver a strong financial performance and meaningful dividend growth. Our success this year has been underpinned by our ability to raise new equity and the issuance of our first green bond, which in turn reinforces our ESG strategy.
“Our market remains highly attractive, with strong occupier demand driven in particular by the accelerated growth of e-commerce, combined with limited supply of large, high-quality and sustainable space to rent in prime markets. We see attractive opportunities to add assets to the portfolio that have built-in value creation opportunities and remain confident of further growth in the coming year.”
EBOX : Impressive results for Tritax EuroBox