Register Log-in Investor Type


Rising rates hit Tritax EuroBox NAV but earnings healthy

Tritax Eurobox has published results for the six months ended 31 March 2023 and, while the NAV has fallen, the overall picture looks quite good.

Highlights were:

Falling net assets

  • Portfolio value of €1,596.7m (30 September 2022: €1,765.6m), with like-for-like reduction of 14.7%, primarily due to significant outward yield shift across the sector, partly offset by ERV growth and asset management activity.
  • Against a good operational performance, the decline in valuation resulted in a negative total return of 22.1% (30 September 2022: 6.0%).
  • Net tangible assets (NTA) declined to €1.05 (30 September 2022: €1.38).
  • Portfolio NIY of 4.5% (30 September 2022: 3.8%) and equivalent yield of 4.8% (30 September 2022: 3.9%).
  • Portfolio reversion of 15.3% or €12.0m, reflecting a like-for-like H1 increase in portfolio ERV of 3.4%.
  • 97% of leases subject to rental increases, with 82.5% of those leases linked to inflation.
  • Increase in EPRA vacancy rate to 5.4% (30 September 2022: 0.3%). This reflected the completion of two buildings in the period in Dormagen and Rosersberg, both of which were speculative forward fundings, benefiting from rental guarantees ranging from 12 to 18 months after practical completion. Post period end, a new letting at the speculative forward funding in Dormagen has reduced the EPRA vacancy rate to 2.0%.

Strong income/earnings per share = good dividend cover

  • Rental income up 18.1% to €32.6m as prior year acquisitions flow through into this year’s figures, plus the benefit of asset management and development activity.
  • Like-for-like rental growth of 5.8%.
  • An adjusted EPRA cost ratio of 25.6% (H1 2022: 30.9%), benefiting from higher income and lower management fee. On track to meet target range of 20-25%.
  • Adjusted EPS of 2.70 cents, up 48.4%, comprising 1.32 cents in the first quarter and 1.38 cents in the second quarter.
  • Dividend per share of 2.50 cents was 108% covered by adjusted EPS for the half year, meaning the dividend has now been covered for three consecutive quarters.

Asset management, indexation and development adding €4.3m to annualised rental income

  • Completed the development of one pre-let funding of 112,018 sqm in Roosendaal and two speculative forward fundings in Dormagen and Rosersberg totalling 49,615 sqm.
  • Completed Barcelona extension in November 2022, adding €2.3m to annual contracted rent.
  • In Strykow, agreed an 8,841 sqm extension for Arvato and re-gears on all their existing lease to new 11-year terms.
  • Post period-end, a new 10-year lease has been agreed with a leading global logistics operator on the recently completed 36,434 sqm building in Dormagen. A rent of €2.97m per annum has been agreed; this is c.18% above rental guarantee – representing an additional €0.5m of annualised rental income.


  • Full carbon and climate analysis undertaken of the portfolio with resulting updated and upgraded ESG targets.
  • Ongoing integration of ESG objectives into operational business leading to progress with solar projects on the two largest assets in Germany in collaboration with customers. The solar programme is a key component of the company’s decarbonisation activities.

Balance sheet

  • 100% of debt with fixed rates or caps, with a maximum average cost of debt of 1.46% for FY23.
  • 4 years weighted maturity, with earliest refinancing in Q4 2025.
  • €171m of undrawn debt facilities as at period end.
  • Covenant headroom with LTV of 44.9% and interest cover of 4.4x, versus covenants of 65% and 1.5x.

The chairman said “We expect vacancy rates to remain low which will continue to support positive rental growth, albeit potentially at levels below the very high rates recently recorded. The sharp increase in interest rates experienced over the second half of 2022 has led to a consequent adjustment of property yields and asset values. For those markets where significant declines in values have already been seen, investment volumes appear to be stabilising, with investors responding to the adjusted pricing levels and the strong underlying fundamentals of the logistics sector. Looking beyond this financial year, prospects for the sector and the company remain positive. As greater visibility emerges in terms of the uncertain macroeconomic backdrop, we believe the combination of strong underlying market fundamentals and positive structural drivers will continue to attract capital to the European logistics sector and support rental growth. We remain confident that our well positioned high-quality portfolio combined with our solid balance sheet will be able to generate continued growth in earnings and dividends and attractive returns for our shareholders over the long-term.”

EBOX / BOXE : Rising rates hit Tritax EuroBox NAV but earnings healthy

Leave a Reply

Your email address will not be published. Required fields are marked *

Please review our cookie, privacy & data protection and terms and conditions policies and, if you accept, please select your place of residence and whether you are a private or professional investor.

You live in…

You are a…