TIDMEBOX TIDMBOXE
RNS Number : 8897O
Tritax EuroBox PLC
04 February 2019
4 February 2019
Tritax EuroBox plc
(the "Company")
TRADING UPDATE
The Board of Tritax EuroBox plc (tickers: EBOX (Sterling), BOXE
(Euro)), which invests in Continental European logistics real
estate assets, is pleased to announce the following trading update
ahead of the publication of the Company's results for the period
from 1 July 2018 to 31 December 2018, which are expected to be
published on or around 20 March 2019.
PRIME, WELL-LOCATED PORTFOLIO DELIVERING SECURE AND GROWING
INCOME
-- Invested in eight prime logistics assets for a combined
EUR558.4 million(1) , well positioned in key locations in Germany,
Spain, Italy, Belgium and Poland (the "Portfolio"), comprising six
standing assets and two pre-let forward funded developments
-- The Manager is currently in advanced negotiations in relation
to the acquisition of one additional prime logistics asset,
following which, the Company will be fully invested and geared,
well within the Company's stated target of six to nine months
following the Company's launch in July 2018
-- The six standing assets completed on in the period from 1
July 2018 to 31 December 2018 have been independently valued at
EUR485.4 million, representing an uplift of 2.0% over the aggregate
net purchase price. Additionally, binding commitments totalling
EUR82.5 million have also been made by the Company on two pre-let
forward funded developments currently under construction
-- The weighted average purchase yield of the Portfolio is 5.1%
-- The Portfolio has been acquired with a low blended acquisition cost of 1.7%
-- The Portfolio is 100% income producing with contracted annual
rental income of EUR24.5 million as at 31 December 2018
-- The Portfolio is well diversified by quality tenant, sector
and geography and has a weighted average unexpired lease term
("WAULT") of 12.02 years as at 31 December 2018
VALUE ENHANCING ASSET MANAGEMENT INITIATIVES
-- Within the Portfolio, the Manager has identified and is
currently in detailed discussions regarding several embedded value
enhancing asset management initiatives. Four of the assets acquired
benefit from adjacent zoned land with a total development capacity
of c. 113,000 sqm of lettable area. In this regard, the Manager is
currently in detailed discussions regarding an extension
opportunity which could add to the Portfolio rent roll
-- The Manager continues to work proactively to reduce vacant
space within the Portfolio, all of which benefits from rental
guarantees, and is in advanced discussions with regard to the
letting of two of the three vacant units
ON TRACK TO DELIVER TARGET DIVIDENDS
-- The Company intends to declare an initial interim dividend
for the period from Admission until 31 December 2018 in February
2019
-- On a fully invested and geared basis, the Company confirms
that it is targeting a dividend of 4.75 pence p.a.(2) , which is
expected to increase progressively, supported by regular indexation
events inherent in the underlying lease agreements, and a total
return of 9.0% p.a.(2) over the medium-term. The Company confirms
its intention to pay dividends on a quarterly basis with
shareholders able to receive dividends in Sterling or Euro
ATTRACTIVE UNSECURED FINANCING STRUCTURE
-- An initial EUR200 million unsecured revolving credit facility
was entered into in October 2018 with a margin ranging between
1.55% and 2.2% depending on the drawn level under the facility and
the Company's prevailing LTV, and an initial maturity of five
years, extendable by two further years
-- A further EUR100 million was added to the initial facility in December 2018
-- When the initial EUR300 million is fully drawn, the loan to
value ratio ("LTV") of the Portfolio will be in line with the
Company's medium term LTV target of 45%
-- The EUR300 million facility benefits from an accordion
option, which allows drawing of a further EUR300 million
MOVE TO THE PREMIUM SEGMENT OF THE MAIN MARKET
-- The Company confirms its intention to apply to the FCA for
the Company's ordinary shares ("Ordinary Shares") to be admitted to
the premium segment of the Official List of the UK Listing
Authority and to the London Stock Exchange for the Ordinary Shares
to be admitted to the premium segment of the Main Market in Q1
2019. The move to the premium segment is expected to facilitate the
Company's eligibility for inclusion in the FTSE UK and the FTSE
EPRA NAREIT Index Series
Nick Preston, Fund Manager of Tritax EuroBox, commented:
"Following the Company's IPO in July 2018, we have successfully
deployed EUR558.4 million into eight prime Big Box logistics
assets, all situated in key Continental European logistics
locations. This has been achieved well ahead of the timeline
targeted at IPO.
We believe that this best in class Portfolio is well positioned
for income growth through a combination of embedded annual
indexation, growth in market rental values and further income
improvements created through identified value enhancement
opportunities, supporting our objective of delivering secure and
growing income and attractive capital returns for shareholders.
The Company's unsecured revolving credit facility, entered into
at an attractive cost of debt, is instrumental in providing a
flexible source of committed capital to further support our
strategy and build the Portfolio.
The Continental European logistics market continues to benefit
from strong underlying fundamentals underpinned by the growth in
e-commerce and occupiers seeking to optimise their supply chains.
By leveraging the long-established relationships of Tritax Group
and of the Company's asset managers, LCP and Dietz, we continue to
see an attractive pipeline of off-market investment
opportunities".
Notes
1. Excludes property purchase costs
2. Euro denominated returns, by reference to IPO issue price.
These are targets only and not profit forecasts. There can be no
assurances that these targets will be met and they should not be
taken as indications of the Company's expected or actual future
results
FOR FURTHER INFORMATION, PLEASE CONTACT:
Tritax Group
Nick Preston +44 (0) 20 7290
James Dunlop 1616
Jefferies International Limited
Gary Gould +44 (0) 20 7029
Stuart Klein 8000
Kempen & Co N.V.
Dick Boer +31 (0) 20 348
Thomas ten Hoedt 8500
Maitland/AMO (Communications Adviser) +44 (0) 77 4711
James Benjamin 3930
james.benjamin@maitland.com
NOTES:
Tritax EuroBox plc invests and manages a well-diversified
portfolio of well-located Continental European logistics real
estate assets that are expected to deliver an attractive capital
return and secure income to shareholders. These assets fulfil key
roles in the logistics and distribution supply-chain focused on the
most established logistics markets and on the major population
centres across core Continental European countries.
Occupier demand for Continental European logistics assets is in
the midst of a major long-term structural change principally driven
by the growth of e-commerce. This is evidenced by technological
advancements, increased automation and supply-chain optimisation,
set against a backdrop of resurgent economic growth across much of
Continental Europe.
The Company's Manager, Tritax Management LLP, has assembled a
full-service European logistics asset management capability
including specialist "on the ground" asset and property managers
with strong market standings in the Continental European logistics
sector. The appointed asset managers Logistics Capital Partners
("LCP") and Dietz AG ("Dietz") are logistics specialists and offer
the Company exposure to high quality asset management expertise and
access to their respective development pipelines, providing
acquisition opportunities across Continental Europe.
The Company is targeting, on a fully invested and geared basis,
an initial Ordinary Share dividend yield of 4.75% p.a.(2) , which
is expected to increase progressively through regular indexation
events inherent in underlying lease agreements, and a total return
on the Ordinary Shares of 9.0% p.a.(2) over the medium-term. The
Company intends to pay dividends on a quarterly basis with
shareholders able to receive dividends in Sterling or Euro.
Further information on Tritax EuroBox plc is available at
www.tritaxeurobox.co.uk
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END
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