RNS Number : 2384L
Tritax EuroBox PLC
29 April 2020
This announcement contains inside information for the purposes
of Article 7 of the Market Abuse Regulation (EU) No 596/2014. This
announcement has been authorised for release by the Board of
29 April 2020
Tritax EuroBox plc
STATEMENT ON COVID-19 AND NOTICE OF HALF YEAR RESULTS
Ahead of its results for the period from 30 September 2019 to
the 31 March 2020 ("H1 2020"), which will be announced in on
Tuesday, 19 May 2020, the Board of Tritax EuroBox plc (ticker: EBOX
(Sterling) and BOXE Euro)), today provides an update on the impact
of the COVID-19 pandemic on its business.
About Tritax EuroBox plc
Tritax EuroBox plc invests in a high-quality portfolio of very
large, prime logistics real estate assets located across
Continental Europe. The Company's portfolio comprises 12 properties
totalling over 909,000 sqm in six European countries. These assets
are let to 21 substantial companies on long leases, averaging 9.7
Nick Preston, Fund Manager of Tritax EuroBox, commented:
"Our ongoing priority remains to ensure the safety and
well-being of our management team and to work closely with our
tenants to support them through this challenging period. Despite
the unprecedented nature of this crisis, we believe that the
fundamentals driving demand for Continental European logistics
assets remain strong. Supply chains have been severely tested, and
this has highlighted occupiers' growing need for modern, well
specified, strategically located buildings close to major
population centres and infrastructure.
Structural tailwinds driving demand in the big box logistics
sector may be accelerated as a result of the impact of the COVID-19
pandemic. We anticipate that the recent marked increase in online
retail usage in Europe will lead to retailers having an even
greater focus on growing their e-commerce platforms. Other emerging
themes include manufacturing moving closer to Europe from the Far
East in order to shorten supply chains and also companies holding
higher inventory levels to protect against potential supply chain
disruption. All of these effects are likely to lead to companies
growing their logistics functions. Meanwhile, the supply of
logistics facilities remains constrained due to low land
availability and little speculative development. We believe these
supply and demand factors will help to underpin future valuations
in the Continental European logistics space, and notwithstanding
any short term issues arising from the current crisis, create
further upward pressure on rental values.
We are taking a disciplined approach to maintaining a robust
balance sheet and have temporarily paused investments and material
new expenditure, given the lack of visibility on the depth or
duration of the crisis. This robustness is further supported by the
future cashflows we have secured through our strong and deepening
relationships with our tenants. We remain confident that the
quality of our portfolio, and the embedded asset management
opportunities within it, will underpin growth in income and total
returns to our shareholders."
Impact of COVID-19 on the business
The Company's diversified income stream is supported by a wide
tenant base comprising retailers, manufacturers, third party
logistics providers, pharmaceutical, food and drink and packaging
companies. 58% of the Company's income is generated by occupiers in
the retail sector, 80% of which are online retailers, either
exclusively or significantly.
The Management team has been in regular contact with all 21
tenants in the portfolio as the crisis has unfolded and is closely
working with them on a case by case basis in a supportive and
All tenants are still operating their properties, although some
are operating at reduced capacity due to lower business volumes or
government restrictions. This continued usage, alongside the
significant investment that our tenants have made in our buildings,
demonstrates that these are key operating assets for their
businesses, as well as being essential in providing the goods and
services that the underlying customers continue to require.
All rents due for the quarter ended 31 March 2020 have been
collected. With regard to the Company's rental receipts for the
quarter ending 30 June 2020, the position is as follows:
-- While the Company has confidence in the financial strength of
all tenant businesses, it has supported two tenants by temporarily
delaying some of their rental payments by formally agreeing staged
payment plans, and it is still in discussion with a third
-- Approximately two thirds of the Company's rental income is
payable in advance on a monthly basis with the remainder payable on
a quarterly basis.
-- Of the total EUR10.14 million rent due to the Company between
1 April and 30 June 2020, an amount of EUR1.6 million (15.7%) has
been agreed to be delayed and repaid during 2021.
-- The Company is still in discussion with one tenant on the
repayment terms of EUR0.35 million of rent (3.4% of the total
quarterly rent demanded).
-- The Company also has the additional security of 14 rental
deposits and bank guarantees and seven parent company guarantees
across its portfolio.
Tritax EuroBox is well capitalised with a strong balance sheet
and significant headroom to its financial covenants.
-- The Group has cash and undrawn facilities against its
unsecured revolving credit facility ("RCF") in excess of EUR100
million as at April 2020, along with no material operational or
capital expenditure expected for the remainder of the quarter
ending 30 June 2020.
-- As at 3 February 2020, the Company had an LTV ratio of 43%.
-- Rental income and asset values would be required to fall by
more than 50% and 30% respectively before any of the Company's
principal debt covenants were breached. The earliest refinance date
of the RCF is September 2023, with the majority of debt maturing in
The Company's last quarterly dividend equated to 1.10 cents per
share. The focus remains on progressively increasing the dividend
once there is more visibility on the effects of the crisis. The
Board will announce the next dividend alongside its interim results
Notice of Half Year Results
The Company will announce its half year results for the six
months ended 31 March 2020 on Tuesday, 19 May 2020.
The Company presentation of its half year results analysts and
investors will take place via a live conference call and webcast at
9am on the day, and a recording will be available on-demand later
in the day via the Company website: www.tritaxeurobox.co.uk
Those wishing to access the live conference call are kindly
asked to contact Maitland/AMO at
email@example.com or by telephone on +44 (0) 20 7379 5151.
Those wishing to access the live webcast please register via the
FOR FURTHER INFORMATION, PLEASE CONTACT:
Tritax Group +44 (0) 20 7290 1616
Jefferies International Limited +44 (0) 20 7029 8000
Kempen & Co +31 (0) 20 348 8500
Thomas ten Hoedt
Akur Limited +44 (0)20 7493 3631
Adviser) +44 (0) 20 7379 5151
James Benjamin firstname.lastname@example.org
The Company's LEI is: 213800HK59N7H979QU33.
Tritax EuroBox plc invests in 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
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
The Company is targeting, on a fully invested and geared basis,
an initial Ordinary Share dividend yield of 4.75% p.a.(1) , 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.(1) over the medium-term. The
Company pays dividends on a quarterly basis with shareholders able
to receive dividends in Sterling or Euro.
Further information on Tritax EuroBox plc is available at
1. 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. Accordingly, potential investors should not place any
reliance on the target in deciding whether or not to invest in the
Company and should not assume that the Company will make any
distributions at all and should decide themselves whether or not
the target is reasonable or achievable.
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(END) Dow Jones Newswires
April 29, 2020 02:00 ET (06:00 GMT)
Tritax Eurobox (LSE:BOXE)
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Tritax Eurobox (LSE:BOXE)
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