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QuotedData’s morning briefing 3 August 2023 – BBOX, PSDL, RESI

QuotedData’s morning briefing 3 August 2023:

  • Tritax Big Box REIT (BBOX) posted a 1.5% uplift in EPRA net tangible assets (NTA) to 183.02p per share in the six months to 30 June 2023. Its portfolio valuation was stable at £5.05bn, while adjusted earnings were up 5.6% to 3.94p per share. This covered its dividend for the period of 3.5p (which was up from 3.35p from last year). EPRA like-for-like rental growth was 3.6% over the period, while estimated rental value (ERV) grew 3.9%, bringing overall portfolio reversion to 21.3%. The company’s LTV was 30.3% (down from 31.2%), with a weighted average cost of debt of 2.6%, and 100% of drawn debt either fixed or hedged.
  • BBOX also announced the sale of an asset let to Howdens in Raunds for £84.3m, in line with its December 2022 and June 2023 valuations, and reflecting a net initial yield of 4.0%. The purchaser was a UK institutional investor in real estate. The asset is one of three buildings at Raunds developed for and let to Howdens Joinery Group Plc. It comprises a 659,000 sq ft logistics building, which BBOX has owned for seven years, with an unexpired lease term at exchange of approximately 23 years. The company said that the disposal reduces the geographical and occupier concentration whilst delivering an attractive return over the hold period. The transaction brings the total value of BBOX disposals exchanged or completed so far in 2023 to £235m. It is targeting a further £100-£200m of sales in the second half of this year. Proceeds will be put into its development pipeline (current returning a yield on cost of 6.8% on average).
  • Phoenix Spree Deutschland (PSDL) has reported a 6.9% fall in the value of its portfolio of Berlin residential properties to €714.3m in the six months to 30 June 2023. Valuations were negatively impacted by poor buyer sentiment and transaction volumes within the Berlin residential market, affected by historically high inflation and interest rates. The rental market, however, remains strong, with new lettings in Berlin signed at an average premium of 31% to passing rents. A new Berlin Mietspiegel (rent index) was announced by The Senate Department for Urban Development, Building and Housing in June, replacing the previous rent index of 2021 permitting an increase in rental values of 5.4% versus 2021. This will be applied to PSDL’s portfolio and be accretive to rental income.
  • Residential Secure Income (RESI) posted a NAV total return for the quarter to 30 June 2023 of 1.0%. Its EPRA NTA was down slightly to 88.6p per share, while it paid a dividend of 1.3p in the quarter. The value of its portfolio of retirement and shared living properties increased 0.2% over the period to £357m. The company has an LTV of 49% (down from 52%). Its debt has an average maturity of 22 years, with 90% fixed or hedged at a 2.5% weighted average cost.

We also have a new manager for International Biotechnology, results from Henderson Smaller Companies and Pantheon International, an update on Ediston Property‘s strategic review, and a new NAV from JLEN Environmental Assets

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