TIDMEBOX TIDMBOXE
RNS Number : 8196Z
Tritax EuroBox PLC
18 May 2023
Half-year results
for the six
months ended
31 March 2023
18 May 2023
Delivering continued income growth, cost efficiencies and
increasing dividend cover
Half-year 2023 key figures
Financial performance
Six months to: 31 March 31 March 2022 Change
2023
Rental income EUR32.6m EUR27.6m 18.1%
Adjusted earnings per share
(EPS)(1) 2.70 cents 1.82 cents 48.4%
(27.20)
Basic IFRS EPS(1) cents 13.35 cents (303.7)%
Dividend per share 2.50 cents 2.50 cents -
Total Return (22.1)% 12.4% (34.5) pts
31 March 30 September Change
2023 2022
Portfolio value(2) EUR1,596.7m EUR1,765.6m (9.6)%
EPRA net tangible assets
("NTA") per share EUR1.05 EUR1.38 (23.9)%
IFRS NAV per share EUR1.02 EUR1.32 (22.7)%
Loan to value (LTV) ratio(3) 44.9% 35.2% 9.7 pts
Annualised rental income(4) EUR78.6m EUR74.3m 5.8%
Operational performance 31 March 31 March 2022 30 September
2023 H1 22 2022
H1 23 FY22
Like-for-like rental growth(5) 5.8% (1.5)% 4.0%
Rent collection 100% 100% 100%
Weighted average unexpired 7.9 years 8.5 years 8.0 years
lease term(6)
EPRA vacancy rate 5.4% 2.2% 0.3%
Adjusted EPRA cost ratio(7) 25.6% 30.9% 29.5%
Average cost of debt 1.2% 1.1% 1.5%
Like-for-like estimated rental
value ("ERV") growth(8) 3.4% 5.4% 8.2%
================================== ============== ================ ===============
Chairman's commentary
Robert Orr, Chairman of Tritax EuroBox plc, commented:
"We outlined in December our priorities of improving operational
performance by delivering income growth, lowering costs and
increasing dividend cover. As these results demonstrate, we are
making excellent progress against these priorities. Our asset
management and development activities are delivering and this,
together with the ongoing benefit of inflation-linked leases and
additional reductions in our cost ratio, means we expect to improve
our performance further in the second half of the financial year
and beyond.
"As we anticipated, the value of our assets declined
significantly during the period in response to the more uncertain
macroeconomic environment and rapid increase in interest rates.
However, we remain confident that the quality of our portfolio,
strength of our customer base and our ability to maintain a robust
balance sheet, will allow the company to navigate these more
challenging market conditions. We will continue to review our
portfolio to ensure we are capitalising on its potential, through
the active management of our assets and selective strategic asset
disposals. The occupational market continues to be characterised by
attractive demand and supply dynamics, reinforcing our belief in
the long-term structural drivers and compelling market
opportunities in the logistics sector."
Half-year 2023 overview
Rising rental income and cost efficiencies supporting earnings
growth and dividend cover
-- Rental income up 18.1% to EUR32.6m, reflecting full period of
prior year acquisitions, asset management and development activity,
and like-for-like(5) rental growth of 5.8%.
-- Adjusted EPRA cost ratio(6) 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.
Resilient investment portfolio let to strong customers on
long-term, inflation-linked leases
-- Portfolio value of EUR1,596.7m (30 September 2022:
EUR1,765.6m), 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%) and NTA declined to EUR1.05 (30 September
2022: EUR1.38).
-- 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 EUR12.0m, 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, benefitting 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%
Asset management, indexation and development adding EUR4.3m 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 EUR2.3m 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 EUR2.97m per annum has been
agreed; this is c.18% above rental guarantee - representing an
additional EUR0.5m 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. Our solar
programme is a key component of our decarbonisation activities.
Robust balance sheet with low cost of debt
-- 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.
-- EUR171m 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.
Notes
1 See note 7 to the condensed interim financial statements for
reconciliation.
2 Valuation under IFRS (excluding rental guarantees).
3 As per KPI definition.
4 Including rental guarantee and licence fee.
5 Including extension on existing buildings.
6 Weighted average unexpired lease to break is 7.9 years and
weighted average unexpired lease to term is 9.6 years.
7 Including licence fee income and rental guarantees.
8 Like-for-like ERV growth for six months, for H1 23 and H1
22.
Presentation for analysts and investors
A Company presentation for analysts and investors will take
place via a live webcast at 09.00am (GMT) today. To view the live
webcast, please register via this link:
Tritax EuroBox plc - Half-year results 2023
Analysts and investors will also be able to listen to the event
via a moderated conference call using the following details:
Phone number: +44 (0) 33 0551 0200
Participant access: quote 'Tritax'
The presentation will also be accessible on-demand later in the
day from the Company website:
tritaxeurobox.co.uk/investors/results-and-presentations/ .
Further information
Tritax EuroBox plc
+44 (0) 20 8051 5070
Phil Redding - CEO
Mehdi Bourassi - CFO
Charles Chalkly / Ian Brown - Investor Relations
Kekst CNC (Media enquiries)
Neil Maitland / Tom Climie
07971 578 507 / 07760 160 248
tritax@kekstcnc.com
Notes:
Further information on the Company is available at:
tritaxeurobox.co.uk
The Company's LEI is: 213800HK59N7H979QU33.
Chairman's statement
From an operational perspective this was a good six months for
the Company as we focused on the priorities set out in our FY22
results. These included driving income from the existing portfolio,
lowering costs and delivering a fully covered dividend. We have
made clear progress against each of these priorities as is
presented in detail in the Manager's report.
As expected, the Company has not been immune to the effects of
rapidly rising interest rates and the consequent impact this has
had on asset values across the sector. During the period we
experienced a significant reduction in the portfolio valuation,
primarily reflecting the changes in the macroeconomic environment.
This was in marked contrast to conditions in the occupational
market, with good demand and constrained supply continuing to
support our asset management activities and rental growth during
the period.
Despite the more challenging economic conditions, the portfolio
has continued to demonstrate its resilience. Our rent collection
remains at 100% and we have high occupancy, an excellent roster of
customers and long leases that deliver annual increases in rents
through indexation.
Driving income from the portfolio
Our rigorous focus on capturing income growth is demonstrated by
the building extensions, development projects and asset management
initiatives that have been successfully completed during the
period.
Highlights include completing the major extension project for
our customer Mango in Barcelona and three forward funded
developments, including two speculative schemes, totalling 270,716
sqm. Our three other ongoing development projects, comprising
112,147 sqm, remain on track for completion in the second half of
the financial year.
A key asset management success during the period was the
agreement of a building extension, at an attractive yield on cost
of 7.2%, and lease re-gear with our customer Arvato to facilitate
the continued expansion of their operations at Strykow in
Poland.
Post period end, we completed a new 10-year lease to a leading
global logistics operator, on the 36,434 sqm speculative forward
funded development at Dormagen. The agreement was signed five weeks
following practical completion of the building in March 2023, at a
rent 17.8% ahead of the underwritten rental guarantee and 6.1%
ahead of the ERV. The lease is subject to 100% annual CPI
indexation and incorporates green clauses designed to promote
sustainable practices.
During the period, asset management, development activity and
indexation have secured EUR4.3 million of additional annualised
rental income. On a like-for-like(5) basis, the portfolio has
generated rental growth of 5.8% (H1 22: (1.5%)) over the past six
months, representing 10.4% uplift over 12 months, primarily derived
from the inflation-linked structure of the leases and asset
management activities in the portfolio.
Financial performance
The portfolio was independently valued at EUR1,596.7 million at
the period end. This represented a like-for-like valuation
reduction of 14.7% reflecting the current challenging macroeconomic
conditions that have impacted the entire sector. This resulted in
NTA per share of EUR1.05, down 23.9%.
Our dividend policy is to pay out a minimum of 85% of Adjusted
Earnings each year, with a target of paying 90-100%. In line with
this, we declared two quarterly dividends totalling 2.50 cents per
share for the period. The dividend was 108.0% covered by Adjusted
EPS and, as discussed in the Manager's Report, we expect the FY23
dividend to be fully covered.
The Company remains well financed and benefits from a low cost
of debt due to the fixed or capped rates on all its borrowings. We
have commenced some specific asset disposals to lower LTV and
selectively fund higher returning opportunities from within the
existing portfolio.
ESG Performance
In 2020, for the period 2020-23, we set a range of targets for
our ESG performance. One of our key priorities for 2022 was to
establish a clear baseline from which to launch our new ESG targets
that reflect our ambition for the ESG performance of the Company.
Now in place, these targets encompass the full range of factors we
are considering; most notably an enhanced commitment to achieve net
zero carbon across all aspects of our business by 2040, rather than
our previously stated 2050 target.
Our targets will help drive further improvement for the benefit
of all our stakeholders, while helping us to keep pace with the
evolving regulatory and market environment, ensuring our approach
is evidence and data led, and that we measure and disclose our
impact. They will be reviewed annually against our KPIs and updated
as required (see the Manager's Report for further details).
Since the end of the period, we have held the first meeting of
our ESG Board Committee, which comprises the full Board, with
representatives from the Manager in attendance. This is chaired by
the Board ESG Champion, Eva-Lotta Sj ö stedt, and will give us a
dedicated forum for overseeing our progress.
From a governance perspective, we reviewed the Board and
Committee composition and announced Sarah Whitney's appointment as
Senior Independent Director (SID) with effect from 6 December 2022.
She has taken on the role from Keith Mansfield, who made a
significant contribution as SID and will continue to play an
important part as a Non-Executive Director and Chair of the Audit
& Risk Committee.
Furthermore, we renegotiated the terms of the Investment
Management Agreement (IMA), which was approved by shareholders in a
General Meeting in October 2022.
Outlook
We are confident of making further progress in the second half
of the year in improving our operational performance, with a
continued focus on driving income growth through asset management
and development activity and benefiting from an expected further
reduction in our cost base.
The weaker economic backdrop is likely to cause take-up levels
to moderate from the exceptional levels recently experienced, but
overall occupier demand remains robust and derived from a diverse
range of business sectors. Supply continues to be limited and
development pipelines constrained by the higher cost and lower
availability of debt finance. Against this external context, 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.
Manager's report
Delivering on our objectives
We set ourselves clear priorities for this financial year. These
were focused on capturing the income growth opportunities from
within the existing portfolio, by progressing our asset management
and development programmes and improving the Company's operational
efficiency. These actions were aimed at increasing earnings per
share and reducing the cost ratio, resulting in a fully covered
dividend for FY23. Over the last six months, we have made good
progress in delivering these priorities.
During the period we increased annualised rental income by 5.8%
or EUR4.3 million, primarily comprising EUR2.6 million through
asset management initiatives and development projects and EUR1.7
million through the inflation-linkage within our leases.
Like-for-like(5) rental growth was 5.8% over the past six months
and 10.4% over the past 12 months. We expect these activities to
deliver further income growth over the remainder of the financial
year.
In addition, the Company's cost base has benefited more fully
from the revised Investment Management Agreement, which
substantially reduced the Management Fee effective from August
2022. As a result, the adjusted EPRA cost ratio reduced from 29.5%
for FY22 to 25.6% for H1 2023. We estimate the fee will reduce by a
further c.EUR1.1m in the second half, given its linkage with the
portfolio valuation. This, together with further income growth,
puts us on track to meet our full-year cost ratio target in the
range of 20-25%.
The progress made in growing our rental income, lowering
operational costs and the full contribution from prior year
acquisitions resulted in the 48.4% increase in Adjusted earnings
per share to 2.70 cents. The Company has declared dividends of 2.50
cents in respect of the period, resulting in dividend cover of
108.0%. This compares with dividend cover of 84.8% for FY22 and
100.9% for Q4 of FY22.
Another priority for this year was to maintain the strength of
the Company's balance sheet. The Company benefits from a low cost
of debt maintained through fixed and capped rates, no near-term
re-financings and EUR171m of headroom in its facilities (EUR138m
after taking account of all development and asset management
commitments). The LTV at the period end was 44.9% or 46.0%
including commitments. While this is in line with the Company's
previously stated medium-term target of 45%, and is significantly
below debt covenant thresholds, it is at the higher end of our
preferred range at this point in the cycle.
We have therefore commenced some selective disposals, identified
as part of our capital recycling approach, to maintain balance
sheet strength and our investment grade rating. Where appropriate,
this will also fund higher returning opportunities from within the
existing portfolio.
Valuation change and market update
Market-driven outward yield shift impacting valuations
During the period, we appointed CBRE as our independent valuer,
in place of JLL. CBRE is highly experienced in the European
logistics sector through a network of local offices that are active
in all our geographies and markets.
The challenging macroeconomic environment and sharply increasing
interest rates witnessed in the second half of 2022 led to a rise
in the cost of capital and caused many investors to pause or defer
investment activity. The consequent steep fall in investment
volumes and lack of pricing visibility contributed to the
significant expansion of property yields across the European
logistics sector in the second half of 2022 and into 2023. The
Tritax EuroBox portfolio has not been immune to these trends.
The Company's property portfolio was valued at EUR1,596.7m as at
31 March 2023, compared to EUR1.765.6m at 30 September 2022. On a
like-for-like basis the valuation declined by 14.7% during the
period with the fall mitigated in part by asset management gains
and rental growth.
The reduction in the valuation was driven by yield expansion
across the portfolio with the net initial yield moving to 4.5%, up
70 bps over the past six months. This was partially offset by a
3.4% increase in the valuers' estimation of the market rental value
of the portfolio, with the portfolio reversion increasing to 15.3%
(EUR12m).
Long-term market drivers remain in place
The European logistics real estate market is subject to
multi-year trends that drive occupational demand for space, in
particular:
-- the ongoing growth of e-commerce, with efficient fulfilment
often requiring large and highly automated logistics facilities,
close to major population centres and strong transport links;
-- the need to optimise, reinforce and de-risk supply chains, to
ensure their efficiency and resilience to external shocks, as
exemplified by the pandemic and the Ukraine war; and
-- the growing necessity for businesses to operate from
sustainable buildings with the best ESG credentials that will
remain fit for purpose for years to come, while supporting their
own ESG objectives, reducing their energy costs and providing
optimal workplaces for their people.
These trends mean the medium to long-term outlook for occupier
demand and rental growth remains attractive.
Occupier demand is robust
Occupier demand remains healthy with 9.9m sqm leased across
Europe in the last six months (Source: CBRE). While activity has
slowed from the record levels of recent years, it remains
consistent with longer-term trends (10-year average: 9.8m sqm).
This demand is broadly based, as companies have taken the
opportunity to address their supply chains and increase stock
holdings as a buffer against future disruption. Third-party
logistics companies have been particularly active, as their
customers look to both outsource supply-chain management and
utilise their flexibility to absorb additional buffer stock.
Challenging economic conditions may slow occupier investment
decisions in the near-term, but large logistics buildings typically
fulfil a strategic role and occupiers make long-term commitments.
Supply chain and ESG trends will therefore continue to drive demand
for high-quality, well-located, energy-efficient buildings that can
support occupier needs over the medium-term.
Supply remains low by historical standards
The exceptional demand resulting from the pandemic pushed
vacancy rates to all-time lows. Vacancy has subsequently ticked up
marginally to 3.0% at the period end (quarter ended 31 December
2022: 2.6%; Source: CBRE) but remains very low compared to historic
levels, with little suitable stock available in many sub-markets
across Europe. Developers have responded to the previous record
demand by bringing forward speculative developments, which will be
completed over the coming months. However, higher interest rates
and reduced debt availability have resulted in a very difficult
environment to start new projects and we expect the delivery of new
space to decline towards the end of this year, helping to support
market fundamentals.
Rents expected to show further growth
The demand-supply imbalance and low level of vacant space
continue to generate rental growth across many of our markets. We
expect continued but more moderate rental growth for the remainder
of 2023, reflecting the potential for the current economic
environment to delay occupier decisions.
Strategy for value creation
Our strategy for value creation is founded on three guiding
principles: a disciplined approach to capital allocation,
maintaining a strong financial position and the integration of ESG
into all aspects of our business activities.
Based on these principles and our long-term investment
philosophy, we seek to construct and manage a portfolio with the
following characteristics:
-- an appropriate balance between stabilised, income-producing
assets and exposure to opportunities that enable us to create value
through asset management and development activities;
-- a highly efficient portfolio, let on long leases to strong companies incorporating inbuilt, inflation-linked rent escalators with minimal vacancies and cost leakage;
-- a portfolio diversified by:
o geography, but with the objective of each country having the
appropriate critical mass to enable economies of scale to be
captured
o building size, but with a focus on larger-scale warehouses
where existing and potential supply is limited and that facilitate
the capture of operational efficiencies
o customer and business sector with a focus on large,
multi-national organisations
In constructing the portfolio, we target logistics assets
that:
-- are well-located in established distribution hubs, within or
near to densely populated areas, with good transport connections
and sufficient labour, power supply and data connectivity;
-- are in areas with limited supply that are likely to benefit
from structural changes in occupational demand, helping to drive
rental growth and capital values;
-- are aligned with our ESG performance criteria, ensuring that
the buildings meet the objectives of occupiers and investors.
-- offer opportunities to grow income and create capital values
through asset management and development activities;
-- benefit from index-linked leases to financially strong occupiers;
-- fulfil a key part of the occupier's logistics and distribution supply chain; and
-- have flexible layouts making them suitable for a wide range of occupiers.
The above approach produces a portfolio that has both defensive
qualities and inherent growth potential. This in turn supports the
Company's objective of providing a predictable and growing dividend
and attractive total returns for our shareholders over the
long-term.
A proactive approach to asset management
A fundamental part of how we deliver our portfolio objectives is
our proactive approach to asset management, focused on identifying
and crystalising income growth and value creation opportunities
from within the existing portfolio.
We undertake a rigorous bottom-up review of all our assets twice
a year. This allows us to determine the value-maximising strategy
for each property and to review expected total returns. In
conjunction with this, we undertake a top-down review to ensure the
portfolio is optimally positioned to benefit from the positive
structural drivers that continue to impact the Continental European
logistics sector.
This process informs our asset recycling strategy by
highlighting those assets where, for example, we have completed our
asset management plan and maximised the value creation potential of
the asset. It also identifies markets where we expect performance
to decline or where we have a sub-scale position and gaining
sufficient scale in an appropriate timescale will be challenging.
Such assets will be identified for disposal, allowing us to recycle
the capital into value-creating opportunities or reduce balance
sheet leverage.
Our commitment to this approach is demonstrated by the
recruitment of an additional experienced asset manager, to allow us
to take a more active role in the strategic asset management of the
portfolio and further strengthen our relationships with our
customers. This role will work closely with our locally based asset
manager partners. We are also increasingly drawing on the
specialist skills within the wider Tritax Group, such as
supply-chain and power expertise, to help formulate our future
asset management plans.
Portfolio composition
At the period end, the portfolio comprised 25 assets,
diversified by building size and occupier, and situated across
Belgium, Germany, Italy, the Netherlands, Poland, Spain and Sweden.
The assets are large, with 68% of the portfolio in excess of 50,000
sqm (average size being 64,000 sqm), and modern, with 88% of the
portfolio built in the last ten years.
To deliver an overall attractive level of return with an
appropriate level of risk, our portfolio combines core, stabilised
assets with a controlled exposure to development assets. At the
period end, the portfolio split by asset type was as follows:
Portfolio
Asset type value (%)
-------------------------------- -------------
Stabilised assets 92.1%
-------------------------------- -------------
Development assets:
- Pre-let forward funding 6.5%
- Speculative forward funding 1.4%
Total development assets 7.9 %
-------------------------------- -------------
Total 100%
-------------------------------- -------------
The stabilised assets provide the portfolio's core income with
this element making up the majority of exposure and reflecting the
relatively low risk positioning of the Company. The core nature of
this income is reflected in the quality of the customer roster, the
long duration of the leases and the annual indexation structures
contained within the majority of the leases.
Development assets provide the potential for capturing higher
returns with the forward funding of pre-let developments
representing the lower end of the risk spectrum and the funding of
speculative developments the higher end. Typically, but not in all
cases, rental guarantees will be agreed with our developer-partners
to provide protection from potential void periods following the
completion of the building. Speculative development offers the
opportunity to capture higher market rental levels than appraised
levels or the additional rental growth that may have occurred
through the construction phase of the development.
At the period end, the portfolio weighted average unexpired
lease term to expiry was 9.6 years (30 September 2022: 9.3 years)
and the weighted average unexpired lease term to the first break
was 7.9 years (30 September 2022: 8.0 years).
The EPRA vacancy at the period end was 5.4% (30 September 2022:
0.3%) following the completion of two speculative forward fundings
in the period. Post period end, the letting at Dormagen reduced the
pro forma EPRA vacancy rate to 2.0%.
A high-quality customer base
Across the portfolio, the Company has 36 customers, which are
well diversified by sector. Many of the Company's customers are
multi-billion Euro businesses, including some of the world's
best-known companies, underpinning the security of the Company's
income stream.
The table below shows the ten largest customers at the period
end:
% of annualised
Customer rental income
-------------------- ------------------
Mango 12.9%
Amazon 8.2%
PUMA 7.4%
Lidl 7.2%
Wayfair 7.1%
Action Logistics 5.8%
Cummins 4.5%
B&S 3.9%
OVS 2.9%
Arvato 2.7%
Note: Income from developer licences and rental guarantees
equates to 6.6% of annualised rental income. Following the post
period end letting at Dormagen, this figure reduces to 3.4%.
Indexation drives annual rental growth
The indexation provisions in the majority of the Company's
leases offer considerable inflation protection and regular uplifts
in income, supporting the Company's aim of providing a predictable
and growing dividend to shareholders. Rental uplifts are either
linked to local inflation measures or fixed at an agreed rate, with
the increases usually taking place annually.
The table below breaks down the portfolio rent reviews by
type:
Rent review type %
--------------------------- -------
Uncapped indexation 54%
Capped/other indexation 26%
Fixed uplift 17%
None 3%
Total 100%
--------------------------- -------
A portfolio with reversionary potential
At the end of each period, the Company's independent valuer
provides an estimate of the market rental value of the portfolio
(the portfolio ERV), which is the rent the portfolio should
generate if all buildings were leased at current market levels.
At 31 March 2023, the portfolio's ERV was EUR90.5 million (30
September 2022: EUR80.9 million). As a result, the potential
reversionary uplift from current rental levels increased to EUR12
million which continues to underpin our future income growth
opportunities.
Strong ESG credentials
Our customers increasingly require the ESG performance of the
buildings they occupy to be aligned with their own ESG commitments
and targets. The ESG credentials of our buildings plays an
important role in attracting and retaining high-quality occupiers
to the portfolio and also allows our customers to meet the
expectations of their stakeholders. We have a clear ESG strategy
where working collaboratively with our customers to jointly deliver
energy-saving initiatives and efficiencies is central to our
approach.
The ESG performance of our buildings and attractiveness to our
customers is increasingly a consideration for the future value and
liquidity of our assets.
The Company holds a five Green Star rating and Sector Leader
ranking from GRESB and EPRA Gold for its Sustainability Best
Practices Recommendations submission.
Evolving our ESG strategy
In 2020 we set a range of ESG targets for the period 2020 -
2023. One of our key priorities for 2022 was to establish a clear
baseline from which to launch our new updated ESG targets. These
targets reflect our four principal ambitions for the ESG
performance of the Company which are summarised as:
1. Our ESG strategy and performance criteria fundamentally
underpin the investment philosophy of the Company
2. Our portfolio and our assets are net zero carbon
3. Our portfolio has a positive impact on our climate and the natural world
4. The social value which our portfolio delivers makes a
meaningful difference to people and communities across all our
geographies
These new targets encompass the full range of factors we are
considering; most notable within these targets is an enhanced
commitment to achieve net zero carbon across all aspects of our
business by 2040, rather than our previously stated 2050 target.
These targets will be reviewed annually against our KPIs and
updated as required.
2023 ESG Targets & KPI's
Theme 2023 target 2023 KPIs
----------------- --------------------------------------------------------------------- ----------------------------
Sustainable Ø % utilisation of
buildings * 100% of all asset due diligence uses Tritax ESG due enhanced
diligence framework ESG due diligence
framework
----------------- --------------------------------------------------------------------- ----------------------------
Ø Production and %
* Produce and implement low-carbon baseline development utilisation
specification on all new projects of low-carbon
specification
Ø % circularity
certified materials
Ø % projects
undertaking a
whole-life performance
analysis
----------------- --------------------------------------------------------------------- ----------------------------
Climate Ø Annual review of
and carbon * Produce and disclose updated net zero carbon pathways pathway
and emissions
Ø % carbon risk
* Scope 1 and scope 2 - 2025 incorporation
into each asset
management plan
* Scope 3 (construction) - 2030 Ø 1.5degC Paris
decarbonisation
pathway alignment
* Scope 3 (remainder of material emissions) - 2040 Ø Science-Based
Targets initiative
(SBTi) alignment (or
equivalent)
----------------- --------------------------------------------------------------------- ----------------------------
Ø % climate risk
* Integrate physical climate risk mitigation across incorporation
asset lifecycle into each asset
management plan
Ø Portfolio TCFD
alignment
----------------- --------------------------------------------------------------------- ----------------------------
Nature Ø % increase in
and wellbeing * Year-on-year annual icrease in biodiversity for biodiversity
standing assets against 2022 baseline
----------------- --------------------------------------------------------------------- ----------------------------
Ø % increase in
* Year-on-year increased provision of wellbeing provision against
enhancements to developments and standing assets 2022 baseline
----------------- --------------------------------------------------------------------- ----------------------------
Social Ø Set-up and
value * Publish community investment structure operation of community
investment structure
Ø % utilisation of
* Further integrate ESG criteria into supply chain due diligence
procurement processes - upstream and downstream framework for suppliers
----------------- --------------------------------------------------------------------- ----------------------------
Ø Level of financial
* Continue support for key fund charity and non-financial
contributions
----------------- --------------------------------------------------------------------- ----------------------------
Capturing embedded income growth opportunities
Over the last two financial years, we have looked to selectively
increase the Company's exposure to the higher returning
opportunities available through value-creating asset management
activity and development. We have made positive progress in both
areas during the period.
Growing income through asset management activity
Significant asset management activities completed during the
period included:
-- the major extension at Barcelona in Spain has increased the
Company's annualised rental income by EUR2.3 million and became
income producing in November 2022.
-- the agreement to construct a new extension for our customer
Arvato at Strykow in Poland, together with an 11-year re-gear of
their existing lease. The extension will be developed at a yield on
cost of 7.2% increasing the annualised rental income by EUR0.5
million upon completion.
-- the completion of a new 10-year lease to a leading global
logistics operator at Dormagen in Germany at a rent 17.8% ahead of
the underwritten rental guarantee, increasing the annualised rental
income by an additional EUR0.5 million.
Progressing the development programme
We made good progress with the development programme, completing
three forward-funded developments on time and on budget.
-- Roosendaal, Netherlands: the second and third units of the
forward funded development pre-let to Lidl completed in December
2022 and February 2023 respectively. These units generate
annualised rental income of EUR3.40 million, replacing an existing
rental guarantee of an equivalent amount.
-- Rosersberg I, Sweden: in January 2023, we reached practical
completion of the first of two speculative forward fundings. with
the Company receiving EUR1.19 million per annum on 13,181 sqm of
space, through a 12-month rental guarantee. We are in discussion
with potential tenants at rents above the level of the rental
guarantee.
-- Dormagen, Germany: at the end of March 2023, we reached
practical completion of this 36,434 sqm speculative forward funding
and agreed a new 10-year lease with a leading global logistics
operator in early May.
We are targeting a BREEAM Very Good or Excellent rating for
Roosendaal, BREEAM Very Good for Rosersberg I and DGNB gold for
Dormagen.
Our other developments continue to progress to plan:
-- Settimo Torinese, Italy - speculative forward funding of
28,250 sqm, with practical completion due in May 2023 with an ERV
of EUR1.3 million;
-- Bonen, Germany - pre-let forward funding of 66,065 sqm, with
practical completion set for June 2023 with a contracted rent of
EUR4.1 million and ERV of EUR4.7 million; and
-- Rosersberg II, Sweden - speculative forward funding of 17,832
sqm, due to reach practical completion in July 2023 with an ERV of
EUR1.9 million.
The above speculative forward fundings benefit from 12-month
rental guarantees, and there is a good level of potential interest
in both buildings.
In September 2021, the Company announced the forward funding of
a logistics asset in Oberhausen, Germany. Following receipt of the
final permits, we acquired the land in January 2023. Verdion, one
of our developer-partners, is expected to develop the 23,243 sqm
two-unit building, which has the potential to produce annualised
rental income of EUR1.7m when fully let. The intention is to
commence construction of this speculative forward funding in the
second half of the financial year, subject to supportive market
conditions and appropriate returns.
The Company owns several land plots with potential for building
extensions. These comprise:
-- Wunstorf, Germany - the building has the capacity to be
extended by 10,000 sqm, comprising two 5,000 sqm extensions. The
discussions with our customer, Havi, are ongoing.
-- Geiselwind, Germany - we are in discussions with Puma on a
42,000 sqm extension to their global logistics centre, together
with an associated lease extension.
Enhancing ESG performance
During the period, we continued to progress initiatives to
increase the number of assets able to generate renewable energy by
the installation of roof-mounted solar panels. Working with our
consultants, we have completed feasibility reports for three of our
German assets and anticipate commencing installations at two sites
during Q4 2023 and Q1 2024. The intention is to implement a rolling
programme of feasibility studies and installations to maintain a
phased programme. These initiatives are being progressed in
collaboration with our customers who we engage with regularly on
all ESG issues.
We are developing our approach to increasing, managing and
measuring our social impact. This is being done in partnership with
our asset managers and property managers.
Financial review
Rental income
Rental income for the period rose by 18.1% to EUR32.6 million
(H1 2022: EUR27.6 million). The growth was primarily due to the
full benefit of acquisitions in prior periods, the indexation
inherent in the leases and the contribution from the Company's
asset management activities, such as the Barcelona extension
completed in November.
Over six months, the like-for-like annualised rental income was
5.8% higher at EUR78.6 million (30 September 2022: EUR74.3
million). Over a twelve month period, the like-for-like annualised
rental income growth was 10.4%.
Operating and administrative costs
The Company's operating and administrative costs were EUR9.0
million (H1 2022: EUR8.5 million), which primarily comprised
-- the Management Fee payable to the Manager of EUR3.4 million
(see below) (H1 2022: EUR4.0 million);
-- the Company's running costs, including accounting, tax and audit; and
-- the Directors' fees.
The Management Fee benefited from the previously announced
changes to the Investment Management Agreement (IMA), which
shareholders approved on 25 October 2022, and resulted in
significant savings for the Company in the period. The lower net
asset value as at 31 March 2023 will reduce the Management fee by
an estimated c.EUR1.1 million in the second half of the year.
Along with the increase in rental income, the lower cost base
contributed to a 5.3 pts reduction in the adjusted EPRA cost ratio
for the six months (inclusive of vacancy cost) to 25.6% (H1 2022:
30.9%). We expect the cost ratio to fall further in the second
half, and to stabilise in a range between 20%-25%.
Financing costs
The total financing costs for the period was EUR4.3 million (H1
2022: EUR3.5 million), reflecting the average cost of debt of 1.2%
(H1 2022: 1.1%), which is attractive given the higher interest rate
environment. Given the Company's current level of fixed and
capped-rate debt (see Debt financing section below), the maximum
average run rate cost of debt for the second half of the year is
expected to be 1.46%.
Net income
The loss before tax for the period was EUR241.3 million (H1
2022: EUR138.2 million profit), primarily due to the negative
valuation movement of the investment properties (H1 2023: loss of
EUR267.7 million; H1 2022: gain of EUR127.8 million). As explained
in the market section, increasing interest rates in the second half
of 2022 have led to a rise in the cost of capital, leading to a
significant expansion of property yields across the European
logistics sector.
The current income taxation charge for the year was 2.8% of the
Company's net property income.
The taxation charge is primarily incurred in the local
jurisdictions in which the Company invests. As an HMRC approved
investment trust, the Company is exempt from UK corporation tax on
its chargeable gains. The Company is also exempt from UK
corporation tax on dividend income received, whether from UK or
non-UK companies, provided the dividends fall within one of the
exempt classes under the Corporation Tax Act 2009.
The corporation tax rate in future periods will depend primarily
on the jurisdictions where the Company acquires assets, given the
differing tax rates across Continental Europe. The Company does not
use any structures designed to artificially reduce its tax
liabilities and looks to pay the appropriate level of tax where it
is due.
Earnings per share
The Basic EPS for the period was a loss of 27.20 cents (H1 2022:
13.35 cents), primarily driven by negative valuation movement
during the period. EPRA EPS, which excludes the valuation movement
and other adjustments, was 3.21 cents (H1 2022: 0.90 cents).
Adjusted Earnings for the period was EUR21.8 million (H1 2022:
EUR14.7 million), resulting in Adjusted EPS of 2.70 cents (H1 2022:
1.82 cents). More information on the calculation of basic, EPRA and
adjusted EPS can be found in note 7 to the condensed interim
financial statements.
Dividends
The Company has declared the following dividends in respect of
the period:
Declared Amount per In respect of Paid/to be paid
share
-------------- ------------- --------------------------- ------------------
9 February 1.25 cents 1 October to 31 December 14 March 2023
2023 2022
18 May 2023 1.25 cents 1 January to 31 March 23 June 2023
2023
The total dividend for the period was 2.50 cents per share or
EUR20.2 million (H1 2022: 2.50 cents per share or EUR20.2 million)
and was 108.0% covered by Adjusted Earnings (H1 2022: 72.6%). We
expect the dividend for the full year to be fully covered by
Adjusted Earnings.
Net assets
The IFRS NAV per share at the period end was EUR1.02 (30
September 2022: EUR1.32). EPRA NTA declined to EUR1.05 (30
September 2022: EUR1.38). Information on EPRA's net asset valuation
metrics can be found in the EPRA Performance Measures section.
Debt financing
At the period end, the Company had total debt drawn of EUR779.0
million. This resulted in an LTV ratio of 44.9% (30 September 2022:
35.2%). Taking into account the Company's capital commitments on
its development and asset management projects, the proforma LTV was
46.0% at 31 March 2023. While this is in line with the Company's
previously stated medium-term target of 45%, and is well below the
LTV covenant in the Company's debt facilities of 65%, we are taking
action to reduce the LTV as described in the Manager's report. The
Company has substantial headroom in its facilities, with EUR171
million of undrawn debt at 31 March 2023, or EUR138 million after
accounting for capital commitments.
The Company's financing is well insulated from rising interest
rates in the short to medium term, with no maturities before Q4
2025, 73.7% of its total debt capacity is fixed, and the floating
element of debt benefiting from interest rates caps limiting the
rise in Euribor to 0.65%. These interest rate caps mature in
October 2023. Interest cover for the period was 4.4 times (H1 2022:
3.4 times), against a covenant level of 1.5 times.
During the period, Fitch Ratings Limited reaffirmed the
Company's senior unsecured rating at BBB, with the outlook moving
from stable to negative. The actions we are taking to reduce
leverage seek to address this change in outlook and maintain our
investment grade rating.
Post period end activity
In May, a new 10-year lease was agreed with a leading global
logistics operator on the recently completed 36,434 sqm building in
Dormagen. A rent of EUR2.97m per annum has been agreed which is
17.8% above rental guarantee and represents an additional EUR0.5m
of annualised rental income.
Related party transactions
Transactions with related parties included the Management Fee
paid to the Manager, the Directors' fees. More information can be
found in note 17 to the condensed interim financial statements.
Alternative Investment Fund Manager (AIFM)
The Company is an Alternative Investment Fund within the meaning
of the AIFMD and has appointed the Manager as its AIFM. The Manager
is authorised and regulated by the Financial Conduct Authority as a
full scope AIFM.
Key Performance Indicators
Set out below are the key performance indicators we use to track
our strategic progress.
KPI and definition Comments Performance
1. Dividend per share The dividend reflects our ability 2.50 cents per share for the six
Dividends paid to shareholders and to deliver a growing income stream months ended 31 March 2023
declared in relation to the period. from our portfolio and (six months ended 31 March 2022:
is a key element of our Total 2.50 cents per share)
Return.
Our policy is to pay an attractive
and progressive dividend, with the
intention to pay out
90-100% of our Adjusted Earnings
each year, with a minimum payout of
85% of Adjusted Earnings.
-------------------------------------- --------------------------------------
2. Total Return ("TR") TR measures the ultimate outcome of (22.1)% for the six months ended 31
TR measures the change in the EPRA our strategy, which is to create March 2023
Net Tangible Assets (EPRA NTA) over value for our shareholders (six months ended 31 March 2022:
the period plus dividends through our portfolio and to 12.4%)
paid. deliver a secure and growing income
stream. The Company's medium-term
TR target set at IPO is 9% per
annum by reference to the IPO issue
price.
-------------------------------------- --------------------------------------
3. Basic Net Asset Value Basic Net Asset Value measures the EUR822.4m
Net asset value in IFRS GAAP. net value of the Company under EUR1.02 per share as at 31 March
IFRS. 2023
(EUR1,065.8 million or EUR1.32 per
share as at 30 September 2022)
-------------------------------------- --------------------------------------
4. Adjusted earnings Adjusted earnings is a performance EUR21.80m
EPRA earnings, adjusted to include measure used by the Board to assess 2.70 cents per share for the six
licence fees and rental guarantees our ability to generate months ended 31 March 2023
receivable on forward cash earnings from our portfolio, (six months ended 31 March 2022:
funded development assets and for which ultimately underpins our EUR14.69 million or 1.82 cents per
other earnings not supported by dividend payments. share)
cash flows.
See note 7 to the condensed interim
financial statements.
-------------------------------------- --------------------------------------
5. Loan to value ratio ("LTV") The LTV measures the prudence of 44.9% at 31 March 2023
The proportion of our gross asset our financing strategy, balancing (30 September 2022: 35.2%)
value that is funded by net the additional returns
borrowings (excluding cash). and portfolio diversification that
come with using debt against the
need to successfully manage
risk. The Company will maintain a
conservative level of aggregate
borrowings, with a medium-term
target of 45% of gross asset value
and a maximum limit of 50% (in each
case, calculated at
the time of borrowing).
-------------------------------------- --------------------------------------
6. Weighted average unexpired lease The WAULT is a key measure of the 7.9 years at 31 March 2023, 9.6
term ("WAULT") quality of our portfolio. Long years to term.
The average remaining number of lease terms underpin the (30 September 2022: 8.0 years, 9.3
years until the sooner of the lease security of our income stream. The years to term)
expiry or the customer's Company seeks to maintain a WAULT
break option of the property of greater than five
portfolio, weighted by annual years across the portfolio, in
passing rents. accordance with typical lease
lengths in Continental Europe.
-------------------------------------- --------------------------------------
7. Dividend cover The dividend cover helps to 108.0% for the six months to 31
Adjusted Earnings as a proportion indicate how sustainable a dividend March 2023
of the dividend declared for the is. It measures the proportion (six months to 31 March 2022:
financial period. of dividends which is supported by 72.6%)
adjusted earnings.
We expect the dividend to be fully
covered for FY23.
-------------------------------------- --------------------------------------
8. Interest cover Interest cover is a measure of a 6.79 times for the six months to 31
The ratio of net property income to company's ability to meet its March 2023
the interest incurred in the interest payments. (six months to 31 March 2022: 7.58
period. times)
-------------------------------------- --------------------------------------
9. Like-for-like rental growth This measures the Company's ability 5.8% or EUR4.3 million for the six
Like-for-like rental growth to grow its rental income over months to 31 March 2023
(including extensions) compares the time. Rental growth will (six months to 31 March 2022:
growth of the rental income not be linear during the hold (1.5)% or (EUR0.8)m)
of the portfolio that has been period, with different mechanisms
consistently in operation and not in each lease agreement.
under development during
the two full preceding periods.
-------------------------------------- --------------------------------------
EPRA performance measures
The table below shows additional performance measures,
calculated in accordance with the Best Practices Recommendations of
the European Public Real Estate Association (EPRA). We provide
these measures to aid comparison with other European real estate
businesses. For a full reconciliation of the new EPRA NAV measures,
please see the Notes to the EPRA and Other Key Performance
Indicators.
Performance measures and definition Comments Performance
1. EPRA Net Reinstatement Value A key measure to highlight the EUR934.0m
("EPRA NRV") value of net assets on a long-term EUR1.16 per share as at 31 March
Basic NAV adjusted for basis. The metric reflects 2023
mark-to-market valuation of what would be needed to recreate (30 September 2022: EUR1,194.7
derivatives, deferred tax and the current portfolio of the million or EUR1.48 per share)
transaction company.
costs (real estate transfer tax and
purchaser's costs).
-------------------------------------- --------------------------------------
2. EPRA Net Tangible Assets ("EPRA Assumes that entities buy and sell EUR845.4m
NTA") assets, thereby crystallising EUR1.05 per share as at 31 March
Basic NAV adjusted to remove the certain levels of unavoidable 2023
fair values of financial deferred tax. (30 September 2022: EUR1,111.0
instruments and deferred taxes. million or EUR1.38 per share)
This excludes transaction costs.
-------------------------------------- --------------------------------------
3. EPRA Net Disposal Value ("EPRA Represents the shareholders' value EUR822.4m
NDV") under a disposal scenario, where EUR1.02 per share as at 31 March
Equivalent to IFRS NAV, as this deferred tax, financial 2023
includes the fair values of instruments and certain other (30 September 2022: EUR1,065.8
financial instruments and deferred adjustments are calculated to the million or EUR1.32 per share)
taxes. full extent of their liability,
net of any resulting tax.
-------------------------------------- --------------------------------------
4. EPRA Earnings A key measure of the Company's EUR25.9m
Earnings from operational underlying results and an 3.21 cents per share
activities. indication of the extent to which for the six months to 31 March 2023
current dividend payments are (six months to 31 March 2022:
supported by earnings. EUR7.3 million or 0.90 cents per
share)
-------------------------------------- --------------------------------------
5. EPRA Net Initial Yield ("NIY") This measure should make it easier 4.3% as at 31 March 2023
Annualised rental income based on for investors to judge for (30 September 2022: 3.6%)
the cash rents passing at the themselves how the valuations
balance sheet date, less of portfolios compare.
non-recoverable
property operating expenses,
divided by the market value of the
property, increased with
(estimated)
purchasers' costs.
-------------------------------------- --------------------------------------
6. EPRA 'Topped-up' NIY This measure should make it easier 4.4% as at 31 March 2023
This measure incorporates an for investors to judge for (30 September 2022: 3.7%)
adjustment to the EPRA NIY in themselves how the valuations
respect of the expiration of of portfolios compare.
rent-free
periods (or other unexpired lease
incentives such as discounted rent
periods and step rents).
-------------------------------------- --------------------------------------
7. EPRA Vacancy Rate A 'pure' (%) measure of investment 5.4% as at 31 March 2023
Estimated Market Rental Value property space that is vacant, (30 September 2022: 0 . 3%)
("ERV") of vacant space divided by based on ERV.
ERV of the whole portfolio.
-------------------------------------- --------------------------------------
8. EPRA Cost Ratio A key measure to enable meaningful 30.3%(1) for the six months to 31
Administrative and operating costs measurement of the changes in a March 2023
(including and excluding costs of company's operating costs. (six months to 31 March 2022:
direct vacancy) divided We expect the EPRA cost ratio to 33.7%(1) )
by gross rental income. decrease over time, as the 29.3%(2) for the six months to 31
portfolio grows and the Company March 2023
benefits from economies of scale. (six months to 31 March 2022: 3
2.8%(2) )
-------------------------------------- --------------------------------------
9. Adjusted EPRA Cost Ratio This ratio includes licence fee 25.6% for the six months to 31
EPRA Cost Ratio adjusted for income and rental guarantees and March 2023
non-operational items. excludes exceptional items 30.9% for the six months to 31
of a capital nature. March 2022
-------------------------------------- --------------------------------------
(1) Inclusive of vacant property costs.
(2) Exclusive of vacant property costs.
Principal risks and uncertainties
The Audit & Risk Committee, which assists the Board with its
responsibilities for managing risk, considers that the principal
risks and uncertainties as presented in our 2022 Annual Report,
were largely unchanged during the period. The explicit risk
relating to Covid-19 pandemic has been removed from the key risks.
Moreover, the Audit & Risk Committee considers that general
macroeconomic uncertainty results in greater volatility on certain
risks, namely the value of the portfolio, finance costs and
customer default risk.
The Company's principal risks are summarised below:
Property risks
1. Customers may default.
2. The value of the property portfolio may experience adverse
change.
3. Portfolio growth may slow.
4. Lack of diversification may amplify local risks.
5. Development activities may not be profitable.
Operational risks
6. The Company is reliant on the continuing services provided by
the Manager.
7. Insurance at appropriate premiums may not be available.
Financial risks
8. Interest rates may fluctuate.
9. Debt funding at appropriate rates may not be available.
10. Debt covenants may be breached.
Taxation risks
11. A change in the Company's investment trust status may cause
loss.
12. Changes to local tax legislation in countries in which the
Company is invested may cause loss.
Political risks
13. General political and/or economic uncertainty may disrupt
the Company's ability to execute its strategy.
14. Rising energy prices may impact the overall economy and our
customers.
ESG risks
15. Physical and transition risks from ESG-related risks.
Cyber risks
16. The company's data may be exposed to cyber-attack.
Condensed Group Statement of Comprehensive Income for the six
months ended 31 March 2023
Six months ended Six months ended
31 March 31 March
2023 2022
(unaudited) (unaudited)
Note EURm EURm
--------------------------------------------------------------------------- -------------------- -------------------
Rental income 4 32.55 27.60
Service charge income 4 5.60 5.09
Other income 4 0.37 0.23
-------------------------------------------------------------------- ----- -------------------- -------------------
Gross property income 4 38.52 32.92
Direct property costs (6.88) (6.07)
-------------------------------------------------------------------- ----- -------------------- -------------------
Net property income 31.64 26.85
-------------------------------------------------------------------- ----- -------------------- -------------------
Fair value (loss)/gain on investment properties 9 (267.70) 127.82
Administrative and other expenses (8.96) (8.51)
-------------------------------------------------------------------- ----- -------------------- -------------------
Operating (loss)/profit (245.02) 146.16
-------------------------------------------------------------------- ----- -------------------- -------------------
Finance income 5 11.02 -
Finance expense 5 (6.57) (10.41)
Effect of foreign exchange differences (0.16) 1.29
Changes in fair value of interest rate derivatives 13 (0.56) 1.12
-------------------------------------------------------------------- ----- -------------------- -------------------
(Loss)/profit before taxation (241.29) 138.16
Taxation 6 21.85 (28.95)
-------------------------------------------------------------------- ----- -------------------- -------------------
(Loss)/profit for the period (219.44) 109.21
-------------------------------------------------------------------- ----- -------------------- -------------------
Other comprehensive income
Foreign currency translation differences- foreign operations (3.75) (1.49)
-------------------------------------------------------------------- ----- -------------------- -------------------
Total comprehensive (loss)/income for the year attributable to
the Shareholders (223.19) 107.72
-------------------------------------------------------------------- ----- -------------------- -------------------
Earnings Per Share (EPS) (expressed in cents per share)
EPS - basic and diluted 7 (27.20) 13.35
-------------------------------------------------------------------- ----- -------------------- -------------------
31 March 30 September
2023 2022
(unaudited) (audited)
Note EURm EURm
----------------------------------------- ------- ---------------- ------------------------
Non-current assets
Investment properties 9 1,596.66 1,765.60
Derivative financial instruments 13 3.87 4.43
Trade and other receivables 10 1.76 1.17
Deferred tax assets 0.85 2.11
----------------------------------------- ------- ---------------- ------------------------
Total non-current assets 1,603.14 1,773.31
Current assets
Trade and other receivables 10 32.78 31.43
Cash and cash equivalents 62.17 90.18
----------------------------------------- ------- ---------------- ------------------------
Total current assets 94.95 121.61
----------------------------------------- ------- ---------------- ------------------------
Total assets 1,698.09 1,894.92
----------------------------------------- ------- ---------------- ------------------------
Current liabilities
Trade and other payables (48.61) (38.80)
Income tax liability (1.14) (0.60)
----------------------------------------- ------- ---------------- ------------------------
Total current liabilities (49.75) (39.40)
Non-current liabilities
Trade and other payables (1.71) (1.29)
Loans and borrowings 11 (770.33) (701.07)
Deferred tax liabilities (27.69) (51.74)
Other liabilities 12 (23.91) (33.62)
Customer deposit (2.31) (2.05)
----------------------------------------- ------- ---------------- ------------------------
Total non-current liabilities (825.95) (789.77)
----------------------------------------- ------- ---------------- ------------------------
Total liabilities (875.70) (829.17)
----------------------------------------- ------- ---------------- ------------------------
Net assets 822.39 1,065.75
----------------------------------------- ------- ---------------- ------------------------
Equity
Share capital 15 8.07 8.07
Share premium reserve 597.58 597.58
Translation reserve (9.99) (6.24)
Retained earnings 226.73 466.34
----------------------------------------- ------- ---------------- ------------------------
Total equity 822.39 1,065.75
----------------------------------------- ------- ---------------- ------------------------
Net Asset Value (NAV) per share (expressed
in Euro per share)
Basic NAV 16 1.02 1.32
EPRA NTA 16 1.05 1.38
----------------------------------------- ------- ---------------- -------
Condensed Group Statement of Changes in Equity for the six
months ended 31 March 2023
Share Share Translation Retained
capital premium Reserve earnings Total
(Unaudited) Note EURm EURm EURm EURm EURm
----------------------------------- --------- ----------- ----------- -------------- ------------ --------------
At 1 October 2022 8.07 597.58 (6.24) 466.34 1,065.75
Net loss for the year - - - (219.44) (219.44)
Other comprehensive income - - (3.75) - (3.75)
----------------------------------- --------- ----------- ----------- -------------- ------------ --------------
Total comprehensive income - - (3.75) (219.44) (223.19)
Contributions and distributions:
Dividends paid 8 - - - (20.17) (20.17)
----------------------------------- --------- ----------- ----------- -------------- ------------ --------------
Total contributions and
distributions - - - (20.17) (20.17)
----------------------------------- --------- ----------- ----------- -------------- ------------ --------------
At 31 March 2023 8.07 597.58 (9.99) 226.73 822.39
----------------------------------- --------- ----------- ----------- -------------- ------------ --------------
Share Share Translation Retained
capital premium Reserve earnings Total
(Audited) Note EURm EURm EURm EURm EURm
----------------------------------- --------- ----------- ----------- -------------- ------------ --------------
At 1 October 2021 8.07 597.46 0.06 447.91 1053.50
Net profit for the year - - - 58.77 58.77
Other comprehensive income - - (6.30) - (6.30)
Total comprehensive income - - (6.30) 58.77 52.47
Contributions and distributions:
New share capital subscribed - 0.14 - 0.14
Associated share issue costs - (0.02) - - (0.02)
Dividends paid - - - (40.34) (40.34)
----------------------------------- --------- ----------- ----------- -------------- ------------ --------------
Total contributions and
distributions - 0.12 - (40.34) (40.22)
----------------------------------- --------- ----------- ----------- -------------- ------------ --------------
At 30 September 2022 8.07 597.58 (6.24) 466.34 1,065.75
Share Share Translation Retained
capital premium Reserve earnings Total
(Unaudited) Note EURm EURm EURm EURm EURm
------------------------------------ --------- ----------- ----------- -------------- ------------ -----------
At 1 October 2021 8.07 597.46 0.06 447.91 1,053.50
Net profit for the year - - - 109.21 109.21
Other comprehensive income - - (1.49) (1.49)
------------------------------------ --------- ----------- ----------- -------------- ------------ -----------
Total comprehensive income - - (1.49) 109.21 107.72
Contributions and distributions:
New share capital subscribed - 0.14 -- - 0.14
Associated share issue costs - (0.02) - - (0.02)
Dividends paid 8 - - - (20.17) (20.17)
------------------------------------ --------- ----------- ----------- -------------- ------------ -----------
Total contributions and
distributions - 0.12 - (20.17) (20.05)
------------------------------------ --------- ----------- ----------- -------------- ------------ -----------
At 31 March 2022 8.07 597.58 (1.43) 536.95 1,141.17
------------------------------------ --------- ----------- ----------- -------------- ------------ -----------
Condensed Group Cash Flow Statement for the six months ended 31
March 2023
Six months
ended
Six months
ended 31 March
31 March 2022
2023 (unaudited) (unaudited)
Note EURm EURm
---------------------------------------------- ------- --------------------- ---------------
Cash flows from operating activities
(Loss)/profit for the period (219.44) 109.21
Changes in fair value of investment
properties 9 267.70 (127.82)
Changes in fair value of derivatives 13 0.56 (1.12)
Tax expense 6 (21.85) 28.95
Net finance expense 5 (4.45) 10.41
Spreading of customer lease incentive 4 (1.09) (1.62)
Amortisation of capital contribution
and lease commission 4 0.48 0.19
(Increase)/decrease in trade and other
receivables (3.15) (1.72)
Increase/(decrease) in trade and other
payables 8.26 (6.24)
Increase/(decrease) in other liabilities 0.42 4.70
---------------------------------------------- ------- --------------------- ---------------
Cash generated from operations 27.44 14.94
Tax paid (0.40) (0.02)
Net cash flow generated by operating
activities 27.04 14.92
---------------------------------------------- ------- --------------------- ---------------
Investing activities
Purchase of investment properties 9 (7.69) (234.50)
Improvements to investment properties
and development expenditure 9 (98.53) (59.72)
Rental guarantees and developer licence
fees received 5.94 1.76
---------------------------------------------- ------- --------------------- ---------------
Net cash flow used in investing activities (100.28) (292.46)
---------------------------------------------- ------- --------------------- ---------------
Financing activities
Net proceeds from issue of Ordinary
Share capital - 0.12
Loans received 11 68.00 197.62
Finance expense paid (2.28) (1.20)
Dividends paid to equity holders 8 (20.17) (20.17)
---------------------------------------------- ------- --------------------- ---------------
Net cash flow generated from financing
activities 45.55 176.37
---------------------------------------------- ------- --------------------- ---------------
Net movement in cash and cash equivalents
for the period (27.69) (101.17)
Cash and cash equivalents at start
of the period 90.18 329.73
Unrealised foreign exchange (losses)/gains (0.32) 0.27
---------------------------------------------- ------- --------------------- ---------------
Cash and cash equivalents at end of
the period 62.17 228.83
---------------------------------------------- ------- --------------------- ---------------
Notes to the Condensed Consolidated Financial Statements for the
six months ended 31 March 2023
1. Basis of preparation
These condensed financial statements for the six months ended 31
March 2023 have been prepared in accordance with the Disclosure
Guidance and Transparency Rules of the Financial Services
Authority, IAS 34 'Interim Financial Reporting', and with
UK-adopted international accounting standards. These condensed
financial statements are unaudited and do not constitute statutory
accounts for the purposes of the Companies Act 2006. They were
approved for issue on 17 May 2023.
The Group's business is not judged to be highly seasonal,
therefore comparatives used for the six-month period ended 31 March
2023 Consolidated Income Statement are the six-month period ended
31 March 2022 Consolidated Income Statement. It is therefore not
necessary to disclose the Consolidated Income Statement for the
full year ended 30 September 2022 (available in the last annual
report).
The comparative financial information presented herein for the
period to 30 September 2022 for the Condensed Consolidated
Statement of Financial Position or 31 March 2022 for other primary
statements does not constitute statutory accounts as defined in
section 434 of the Companies Act 2006. A copy of the statutory
accounts for that period has been delivered to the Registrar of
Companies. The auditor's report on those accounts for the period
from 1 October 2021 to 30 September 2022 was not qualified, did not
include a reference to any matters to which the auditor drew
attention by way of emphasis without qualifying the report, and did
not contain statements under section 498(2) or (3) of the Companies
Act 2006.
1.1. Going concern
The Directors have prepared cash flow forecasts for the Group
for a period of 12 months from the date of approval of the
condensed interim financial statements. These forecasts include the
Directors' assessment of plausible downside scenarios on the Group.
The assumptions underpinning these forecast cash flows and covenant
compliance forecasts were sensitised, to explore the Group's
resilience to the potential impact of its significant risks, or a
combination of those risks. These forecasts have been further
sensitised for the following scenarios:
1) The combined impact of four key tenants defaulting without
replacement, combined with a twelve-month delay in letting
properties under development.
2) Yield expansion resulting in further property valuation falls
and the impact on debt covenants.
3) Worsening macroeconomic environment resulting in increasing
debt costs.
The Group's cash balance at 31 March 2023 was EUR62.2million. It
also had undrawn amounts under its unsecured revolving credit
facility (the RCF) of a further EUR154.0 million at the date of
approval of these financial statements. Of the Group's total
facilities (the RCF, Green Bond and US private placement), EUR250
million will mature in October 2025, EUR500 million in June 2026,
EUR100 million in January 2029, EUR50 million in January 2032 and
EUR50 million in January 2034. The loans include financial
covenants for loan-to-value ("LTV"), interest cover ratio ("ICR")
and gearing. These covenants have been complied with throughout the
period and up to the date of approval of these financial
statements.
The LTV covenant is measured quarterly based on the property
valuation as used in the consolidated financial statements. Based
on the valuation as at 31 March 2023 of EUR1,596.7million, the
Group retained headroom against a covenant limit, reporting 44.9%
against the limit of 65%.
The gearing covenant is measured quarterly based on consolidated
total net borrowings to consolidated shareholders' funds. Based on
the most recent reporting the Group retained headroom against the
covenant limit, reporting 87% against the limit of 150%.
The ICR covenant is measured as the ratio of the Group's
consolidated earnings before income and tax, subject to certain
adjustments, to consolidated net finance costs in respect of any
measurement period, by reference to accounting income. Based on the
most recent reporting, the Group was not in breach of its covenant
minimum reporting 4.44 times which leaves headroom above the 1.5
times minimum.
Consequently, the directors are confident that the Group and the
Company will have sufficient funds to continue to meet their
liabilities as they fall due for at least 12 months from the date
of approval of the financial statements and therefore have prepared
the financial statements on a going concern basis.
2. Significant accounting judgements, estimates and assumptions
The preparation of the Group's financial statements requires
management to make judgements, estimates and assumptions that
affect the reported amounts of revenues, expenses, assets and
liabilities and the disclosure of contingent liabilities at the
reporting date. However, uncertainty about these assumptions and
estimates could result in outcomes that require a material
adjustment to the carrying amount of the asset or liability
affected in future periods.
2.1 Judgements
In the process of applying the Group's accounting policies,
management has made the following judgements, which have the most
significant effect on the amounts recognised in the consolidated
financial statements:
Business combinations
The Group acquires subsidiaries that own investment properties.
At the time of acquisition, the Group considers whether each
acquisition represents the acquisition of a business or the
acquisition of an asset. The Group accounts for an acquisition as a
business combination where an acquired set of activities and assets
must include, at a minimum, an input and a substantive process that
together significantly contribute to the ability to create
outputs.
Where such acquisitions are not judged to be the acquisition of
a business, they are not treated as business combinations. Rather,
the cost to acquire the corporate entity is allocated between the
identifiable assets and liabilities of the entity based upon their
relative fair values at the acquisition date. Accordingly, no
goodwill or additional deferred tax relating to pre-acquisition
property valuation gains arises.
In the current period, acquisitions were accounted for as asset
acquisitions as none of the acquisitions included the acquisition
of an integrated set of activities.
Segment reporting
The Directors are of the opinion that the Group is engaged in a
single segment business, being the investment in European Big Box
assets. The Directors consider that these properties have similar
economic characteristics and as a result these individual
properties have been reported as a single operating segment.
2.2 Estimates
Fair valuation of investment property
The fair value of investment property is determined, by an
independent property valuation expert, to be the estimated amount
for which a property should exchange on the date of the valuation
in an arm's length transaction. Properties have been valued on an
individual basis. The valuation expert uses recognised valuation
techniques, applying the principles of both IAS 40 and IFRS 13.
The valuations have been prepared in accordance with the Royal
Institution of Chartered Surveyors ("RICS") Valuation - Global
Standards January 2022 ("the Red Book"). Factors reflected include
current market conditions, annual rentals, lease lengths and
location. The significant methods and assumptions used by valuers
in estimating the fair value of investment property are set out in
note 9.
3 Summary of significant accounting policies
The accounting policies adopted in this report are consistent
with those applied in the Group's consolidated financial statements
for the year ended 30 September 2022 and are expected to be applied
consistently during the year ending 30 September 2023.
3.1 Standards in issue and effective from 1 October 2022
There was no material effect from the adoption of amendments to
IFRS effective in the year. They have no impact to the Group
significantly as they are either not relevant to the Group's
activities or require accounting which is consistent with the
Group's current accounting policies.
3.2 New standards issued but not yet effective
There are new standards and amendments to standards and
interpretations which have been issued that are effective in future
accounting periods, and which the Group has decided not to adopt
early. None of these are expected to have a material impact on the
consolidated financial statements of the Group.
Certain new accounting standards and amendments are effective
for annual periods beginning
after 1 January 2023, and have not been applied in preparing
these Financial Statements:
- IFRS 17 Insurance contracts
- Amendments to IAS 1, 'Presentation of financial statements',
on classification of liabilities
- Amendments to IAS 8, 'Accounting policies, Changes in
Accounting Estimates and Errors',
definition of accounting estimates
- Amendments to IAS 1, 'Presentation of Financial Statements',
disclosure of accounting policies
- Amendments to IAS 12 - Deferred taxes related to assets and
liabilities arising from a single
Transaction
- Amendments to IFRS 17 Insurance Contracts: Initial application
of IFRS 17 and IFRS 9 - Comparative Information
The amendments that are not yet effective are not expected to
have a material impact on the
Group in the current or future reporting periods and on the
foreseeable future transactions.
4. Gross property income
Six months Six months
ended ended
31 March 31 March
2023 2022
(unaudited) (unaudited)
EURm EURm
---------------------------------------- ---------------- ---------------
Rental income 31.94 26.47
Spreading of tenant incentives 1.09 1.32
Amortisation of capital contribution
and lease commission (0.48) (0.19)
---------------------------------------- ---------------- ---------------
Gross rental income 32.55 27.60
---------------------------------------- ---------------- ---------------
Service charges income 5.60 5.09
Other income 0.37 0.23
---------------------------------------- ---------------- ---------------
Gross property income 38.52 32.92
---------------------------------------- ---------------- ---------------
The Group derives property income from the following
countries:
Gross The Sweden
property Belgium Germany Spain Italy Poland Netherlands Total
income
(unaudited) EURm EURm EURm EURm EURm EURm EURm EURm
--------------- ----------- ------------ ---------- ---------- ----------- -------------- --------- ----------
Period ended
31 March
2023 4.46 15.18 5.45 4.78 3.62 3.43 1.60 38.52
--------------- ----------- ------------ ---------- ---------- ----------- -------------- --------- ----------
Period ended
31 March
2022 3.63 14.13 5.33 4.28 3.09 1.46 1.00 32.92
--------------- ----------- ------------ ---------- ---------- ----------- -------------- --------- ----------
The future minimum lease payments under non-cancellable
operating leases receivable by the Group are as follows:
Between 1 Between 2
Less than and 2 and 3 Between 3 Between 4 More than
1 year years years and 4 and 5 5 years
(Unaudited) EURm EURm EURm years EURm years EURm EURm Total EURm
--------------- ------------- ------------ ------------ ------------- ------------- ------------- -------------
31 March
2023 74.63 68.94 64.95 62.42 57.80 300.72 629.46
--------------- ------------- ------------ ------------ ------------- ------------- ------------- -------------
31 March
2022 59.74 66.47 60.74 57.63 54.59 322.32 621.49
--------------- ------------- ------------ ------------ ------------- ------------- ------------- -------------
The Group's investment properties are leased mainly to single
customers, some of which have guarantees attached, under the terms
of a commercial property lease. The majority have rent indexation
that are linked to either RPI/CPI or fixed uplifts.
Two customers each represent more than 10% of rental income
during the period (EUR5.16 million and EUR3.21 million). As at 31
March 2022 three customers represented more than 10% of passing
rent (EUR5.08 million, EUR3.13 million and EUR2.89 million).
5. Finance income and expense
Six months Six months
ended ended
31 March 31 March
2023 2022
(unaudited) (unaudited)
EURm EURm
--------------------------------------------------
Interest income on interest rate derivative 1.35 -
Fair value gain on remeasurement of put option 9.67 -
-------------------------------------------------- ------------------------------------- ---------------
Total finance income 11.02 -
-------------------------------------------------- ------------------------------------- ---------------
Interest payable on loans and bank borrowings 4.61 2.96
Commitment fees payable on bank borrowings 0.51 0.58
Fair value loss on remeasurement of put option - 5.11
Bank fees 0.17 0.61
Amortisation of loan arrangement fees 1.28 1.15
-------------------------------------------------- ------------------------------------- ---------------
Total finance expense 6.57 10.41
-------------------------------------------------- ------------------------------------- ---------------
The total interest payable on financial liabilities carried at
amortised cost comprises interest and commitment fees payable on
bank borrowings of EUR5.12 million (31 March 2022: EUR3.54
million), of which nil was capitalised in both periods. The total
amortisation of loan arrangement fees for 31 March 2023 was EUR1.28
million (31 March 2022: EUR1.15 million), of which nil was
capitalised into the loan in the period (31 March 2022: EUR2.40
million)
6. Taxation
Tax charge in the Group Statement of Comprehensive Income
Six months Six months
ended ended
31 March 31 March
2023 2022
(unaudited) (unaudited)
EURm EURm
-----------------------------
Current taxation:
UK taxation - -
Overseas taxation ( 0.88) (0.47)
Deferred taxation:
UK taxation - -
Overseas taxation 22.73 (28.48)
----------------------------- ---------------- ---------------
Total tax credit/(charge) 21.8 5 (28.95)
----------------------------- ---------------- ---------------
The UK corporation tax charge of nil reflects the Company's
intention to declare sufficient "qualifying interest distributions"
to fully offset its "qualifying interest income" in the period, in
accordance with its status as an Investment Trust Company
("ITC").
7. Earnings per share
Earnings per share ("EPS") amounts are calculated by dividing
profit or loss for the period attributable to ordinary equity
holders of the Group by the weighted average number of Ordinary
Shares in issue during the period. As at 31 March 2023 there are no
dilutive or potentially dilutive equity arrangement in
existence.
The calculation of EPS is based on the following:
Net profit Weighted
attributable average
to Ordinary number of Earnings
Shareholders Ordinary per share
For the period ended 31 March 2023 (unaudited) EURm Shares '000 Cent
-------------------------------------------------- -------------- -------------- -----------
Basic EPS (219.44) 806,804 (27.20)
Adjustments to remove:
Deferred tax charge (note 6) (22.73)
Changes in fair value of investment
properties (note 9) 267.70
Changes in fair value of interest rate
derivatives (note 13) 0.37
EPRA EPS 25.90 806,804 3.21
-------------------------------------------------- -------------- -------------- -----------
Adjustments to include/(exclude):
Rental income recognised in respect
of fixed uplifts (1.09)
Amortisation of capital contribution
and lease commission 0.48
Rental guarantee receipts excluded from
property income-settled via cash 5.94
Amortisation of loan arrangement fees 1.28
Unrealised foreign exchange currency
loss 0.32
Gain on remeasurement of put option (10.10)
Interest from financial derivatives (0.93)
-------------------------------------------------- -------------- -------------- -----------
Adjusted EPS 21.80 806,804 2.70
-------------------------------------------------- -------------- -------------- -----------
Weighted
Net profit average
attributable number of
to Ordinary Ordinary Earnings
Shareholders Shares(1) per share
For the period ended 31 March 2022 (unaudited) EURm '000 Cent
-------------------------------------------------- -------------- -------------- -----------
Basic EPS 107.72 806,755 13.35
Adjustments to remove:
Deferred tax charge (note 6) 28.48
Changes in fair value of investment
properties (note 9) (127.82)
Changes in fair value of interest rate
derivatives (note 13) (1.12)
EPRA EPS 7.26 806,755 0.90
-------------------------------------------------- -------------- -------------- -----------
Adjustments to include/(exclude):
Rental income recognised in respect
of fixed uplifts (1.32)
Amortisation of capital contribution
and lease commission 0.19
Rental guarantee receipts excluded from
property income-settled via cash 2.45
Amortisation of loan arrangement fees 1.15
Unrealised foreign exchange currency
gain 0.27
Loss on remeasurement of put option 4.69
-------------------------------------------------- -------------- -------------- -----------
Adjusted EPS 14.69 806,755 1.82
-------------------------------------------------- -------------- -------------- -----------
1 Based on the weighted average number of Ordinary Shares in
issue throughout the period.
Adjusted Earnings is a performance measure used by the Board to
assess the level of the Group's dividend payments. The metric
mainly adjusts EPRA earnings for:
i. Exclusion of non-cash items credited or charged to the Group
Statement of Comprehensive Income, such as fixed rental uplift
adjustments and amortisation of loan arrangement fees;
ii. Inclusion of licence fees which relate to cash received from
developers during development periods, in order to access the land;
and
iii. Inclusion of rental guarantee adjustments which relate to
acquired assets with properties which have had an income guarantee
attached to them as part of the acquisition of the asset. The
rental guarantee is released (through a cash movement or contracted
liability settlement) as Adjusted Earnings over the period of the
lease which it is intended to cover or lease break. However, this
release does not go through rental income in the Group Statement of
Comprehensive Income, and as such an adjustment is made to
recognise the receipt.
iv. Exclusion of exceptional items, considered as an expense
under IFRS, which are capital in substance and nature and result in
longer term value to the business.
v. Exclusion of the over hedged portion of interest income from
financial derivatives, considered as income under IFRS, as
financing activities are not part of the Group's operations.
8. Dividends paid
Six months Six months
ended ended
31 March 31 March
2023 2022
(unaudited) (unaudited)
EURm EURm
------------------------------------------ ---------------- ---------------
Final dividend in respect of period
ended 30 September 2022 at 1.25
cent per Ordinary Share (30 September
2021: 1.25 cent) 10.08 10.08
First interim dividend in respect
of year ended 30 September 2023
at 1.25 cent per Ordinary Share
(30 September 2022: 1.25 cent) 10.09 10.09
------------------------------------------ ---------------- ---------------
Total dividends paid 20.17 20.17
------------------------------------------ ---------------- ---------------
Total dividends paid per share 2.50 cent 2.50 cent
for the period
------------------------------------------ ---------------- ---------------
Total dividends unpaid but declared 1.25 cent 1.25 cent
per share for the period
------------------------------------------ ---------------- ---------------
Total dividends declared per share 2.50 cent 2.50 cent
for the period
------------------------------------------ ---------------- ---------------
On 18 May 2023, the Directors of the Company declared a second
interim dividend in respect of the year ended 30 September 2023 of
1.25 cent per Ordinary Share, which will be payable on or around 23
June 2023 to Shareholders on the register on 26 May 2023.
Out of EUR20.17 million dividends declared for the period,
EUR7.10 million is designated as interest distribution.
9. Investment properties
The Group's investment property has been valued at fair value by
CBRE, an accredited independent valuer with a recognised and
relevant professional qualification and with recent experience in
the locations and categories of the investment properties being
valued. The valuations have been prepared in accordance with the
RICS Valuation - Global Standards January 2022 ("the Red Book") and
incorporate the recommendations of the International Valuation
Standards which are consistent with the principles set out in IFRS
13. In forming its opinion, CBRE makes a series of assumptions,
which are typically market related, such as yields and expected
rental values and are based on the valuer's professional judgement
and the current tenancy of the properties.
The valuations are the ultimate responsibility of the Directors.
Accordingly, the critical assumptions used in establishing the
independent valuation are reviewed by the Board.
During the period, the Group acquired land at Oberhausen. The
acquisition was finalised on 5 January 2023, shown in the table
below under investment properties under construction.
Investment properties
Investment properties Investment properties Total
(Unaudited) completed EURm under construction EURm EURm
------------------------------ ----------------------------- --------------------------- --------------------------
As at 1 October 2022 1,543.87 221.73 1,765.60
Acquisition of
properties(1) 0.25 7.44 7.69
Additions to investment
properties 0.96 97.57 98.53
Transfer from investment - - -
properties to investment
properties under
construction
Transfer from investment
properties under
construction to investment
properties 168.47 (168.47) -
License fees and rental
guarantees recognised (4.62) (0.49) (5.11)
Fixed rental uplift and
tenant lease incentives 2 1.74 - 1.74
Amortisation on rental
uplift and tenant lease
incentives 2 (0.74) - (0.74)
Change in fair value during
the period 3 (234.85) (32.85) (267.70)
Foreign exchange movement
during the period (1.37) (1.98) (3.35)
------------------------------ ----------------------------- --------------------------- --------------------------
As at 31 March 2023 1,473.71 122.95 1,596.66
------------------------------ ----------------------------- --------------------------- --------------------------
Investment
Investment properties Investment
properties under properties
completed construction Total
------------------------------------------------
(Audited) EURm EURm EURm
------------------------------------------------ -------------- ---------------- --------------
As at 1 October 2021 1,257.35 24.03 1,281.38
Acquisition of properties(1) 168.65 134.52 303.17
Additions to investment properties 1.41 143.38 144.79
Transfer from investment properties
to investment properties under construction (1.30) 1.30 -
Transfer from investment properties
under construction to investment properties 70.71 (70.17) -
License fees and rental guarantees
recognised (0.44) (14.31) (14.75)
Fixed rental uplift and tenant lease
incentives 2 5.66 - 5.66
Amortisation on rental uplift and tenant
lease incentives 2 (1.35) - (1.35)
Change in fair value during the period
3 46.87 3.07 49.94
Foreign exchange movement during the
period (3.15) (0.09) (3.24)
------------------------------------------------ -------------- ---------------- --------------
As at 30 September 2022 1,543.87 221.73 1,765.60
------------------------------------------------ -------------- ---------------- --------------
(1) Included acquisition costs of EUR0.23 million (30 September
2022: EUR13.81 million).
(2) This balance arises as a result of the IFRS treatment of
leases with fixed or minimum rental uplifts and rent free periods,
which requires the recognition of rental income on a straight line
basis over the lease term. The amount as at 31 March 2023 was
EUR12.29 million (30 September 2022: EUR10.94 million). The
difference between this and cash receipts changes the carrying
value of the property against which revaluations are measured (also
see note 6).
(3) Included in the fair value change in the period were
unrealised gains of EUR12.92million (30 September 2022: EUR93.08
million) and unrealised losses of EUR280.62 million (30 September
2022: EUR43.14 million).
30 September
31 March 2023 2022
EURm EURm
------------------------------------------------ ---------------- ---------------
Investment properties in Balance Sheet 1,596.66 1,765.60
Rental guarantee held in separate receivable 6.95 6.93
------------------------------------------------ ---------------- ---------------
Total external valuation of investment
properties 1,603.61 1,772.53
------------------------------------------------ ---------------- ---------------
As at 31 March 2023, the Group had the following capital
commitments in relation to its development assets totalling EUR32.6
million (30 September 2022: EUR123.7 million):
-- Settimo Torinese EUR4.9 million
-- Bönen EUR9.6 million
-- Rosersberg II EUR11.4 million
-- Strykow EUR6.7 million
These costs are not provided for in the Statement of Financial
Position. Capital commitments represent costs to bring the asset to
completion under the developer's funding agreements, which include
the developer's margin.
Valuation and real estate risks
There is risk to the fair value of real estate assets that are
part of the portfolio of the Group, comprising variation in the
yields that the market attributes to the real estate investments
and the market income that may be earned.
Real estate investments can be impacted adversely by external
factors such as the general economic climate, supply and demand
dynamics in the market, climate risks, competition and increase in
operating costs.
Besides asset-specific characteristics, general market
circumstances affect the value and income from investment
properties such as the cost of regulatory requirements related to
investment properties, interest rate levels and the availability of
financing.
The Manager of the Group has implemented a portfolio strategy
with the aim to mitigate the above stated real estate risk. By
diversifying in regions, risk categories and tenants, it is
expected to lower the risk profile of the portfolio.
With respect to new investments, management will be targeting
specific investment categories based on the Group's investment
objective and restrictions. Because such investments may be made
over a substantial period of time, the Group faces the risk of
interest rate fluctuations in case of leveraging these investments
and adverse changes in the real estate markets.
Fair value hierarchy
The Group considers that all of its investment properties and
investment properties under construction fall within Level 3 of the
fair value hierarchy as defined by IFRS 13. There have been no
transfers between Level 1 and Level 2 during any of the periods,
nor have there been any transfers between Level 2 and Level 3
during any of the periods.
The valuations have been prepared on the basis of Market Value
("MV"), which is defined in the RICS Valuation Standards, as:
"The estimated amount for which a property should exchange on
the date of valuation between a willing buyer and a willing seller
in an arm's length transaction after proper marketing wherein the
parties had each acted knowledgeably, prudently and without
compulsion."
MV as defined in the RICS Valuation Standards is the equivalent
of fair value under IFRS.
The following descriptions and definitions relating to valuation
techniques and key unobservable inputs made in determining fair
values are as follows:
Valuation techniques
Investment properties completed: income approach
The income method (or income approach) quantifies the net
present value of future benefits associated with the ownership of
the asset by totalling the current tenancy of the property,
followed by the market rent on lease expiry, capitalised at an
appropriate yield. The methodology is based on a direct
capitalisation model where the lease-based income has been
capitalised with an all-risk yield in perpetuity. The choice of
this methodology represents the likely basis of analysis to be used
by a potential purchaser for this type of property (income
producing).
Investment properties under construction: residual approach
The residual approach for properties under construction takes
the expected valuation of the finished property using the income
approach and deducts forecast costs to complete the development and
an allowance for developer's profit.
Unobservable input: estimated rental value ("ERV")
ERV is dependent upon a number of variables in relation to the
Group's property. These include: size, building specification and
location. At 31 March 2023 the range was between EUR40.01 --
EUR126.00 per square metre, per annum (30 September 2022: EUR44.00
- EUR94.00 per square metre, per annum). The weighted average ERV
at 31 March 2023 was EUR58.30 per square metre, per annum (30
September 2022: EUR57.40 per square metre, per annum).
Unobservable input: yield
Yield is dependent on the tenant, lease length and the other
variables listed above for ERV. At 31 March 2023, the average yield
was 4.7% and the range was between 3.6% and 6.7% (30 September
2022: average yield was 3.94% and the range was between 2.3% and
4.9%). Implicit in the yield is the valuer's consideration of
climate risks.
Yield and ERV are not necessarily independent variables. It is
possible a change in one assumption may result in an offsetting
change to the other but equally the change in both assumptions may
increase the impact on valuation.
Sensitivities of measurement of significant unobservable
inputs
As set out within significant accounting estimates and
judgements above, the Group's property portfolio valuation is open
to estimation uncertainty and is inherently subjective in nature.
At the balance sheet date, when the property portfolio was valued,
the Group considered the range used below, in the sensitivity
analysis, to be appropriate as at that date.
As a result, the following sensitivity analysis has been
prepared for investment properties :
+0.25% yield -5% ERV +5% ERV
-0.25%yield EURm EURm EURm EURm
------------------------------------------ ------------------- --------------- ---------- ---------------------
(Decrease)/increase in the fair value of
investment properties as at 31 March
2023 94.28 (84.87) (58.14) 58.62
------------------------------------------- ------------------- --------------- ---------- ---------------------
(Decrease)/increase in the fair value of
investment properties as at 30
September 2022 115.14 (102.22) (45.74) 48.97
------------------------------------------- ------------------- --------------- ---------- ---------------------
The CBRE valuation includes deductions for transaction costs
that would be incurred by a hypothetical purchaser at the valuation
date. These costs include Real Estate Transfer Tax ("RETT")
equivalent to stamp duty except for properties in Belgium, Italy,
Poland and Sweden. In Italy, this is due to the structure of an
Investment Management Company ("SGR"). In Belgium and Sweden, the
local valuation practice is to exclude such costs given the
prevalence of corporate rather than asset transactions in these
markets.
10. Trade and other receivables
31 March 30 September
2023 2022
(unaudited) (audited)
Non-current trade and other
receivables EURm EURm
-------------------------------- ---------------- ---------------
Cash in public institutions 1.76 1.17
-------------------------------- ---------------- ---------------
The cash in public institutions is a deposit of EUR1.76 million
given by the tenant for the property in Barcelona, Spain.
31 March 30 September
2022
2023 (audited)
(unaudited) EURm
Current trade and other receivables EURm
----------------------------------------- ---------------- ---------------
Trade receivables 1.40 1.34
Prepayments, accrued income and other
receivables 19.37 18.61
VAT receivable* 12.01 11.48
----------------------------------------- ---------------- ---------------
32.78 31.43
----------------------------------------- ---------------- ---------------
* VAT receivable includes VAT on capital expenditure across the
developments and a reclaim on the purchase of the property in Italy
EUR1 million (30 September 2022: EUR1 million).
The carrying value of trade and other receivables classified at
amortised cost approximates fair value.
The Group applies the IFRS 9 simplified approach to measuring
expected credit losses using a lifetime expected credit loss
provision for trade receivables. To measure expected credit losses
on a collective basis, trade receivables are grouped based on
similar credit risk and ageing.
The expected loss rates are based on the Group's historical
credit losses experienced over the period prior to the period end.
The historical loss rates are then adjusted for current and
forward-looking information on macroeconomic factors affecting the
Group's customers. Both the expected credit loss provision and the
incurred loss provision in the current and prior period are
immaterial.
No reasonably possible changes in the assumptions underpinning
the expected credit loss provision would give rise to a material
expected credit loss.
11. Loans and borrowings
As at 31 March 2023, 73.7% (30 September 2022: 73.7%) of the
Group's debt facility commitments are fixed term with 26.3%
floating term (30 September 2022: 26.3%). The LTV across all drawn
debt was 44.9% against a target of 45% (with a limit of 65% in the
RCF). The Group has been in compliance with all of the financial
covenants of the Group's bank facilities as applicable throughout
the period.
The Group had available headroom of EUR171 million under its
bank borrowings (30 September 2022: EUR239 million).
Any associated fees in arranging the loan and borrowings that
are unamortised as at the period end are offset against amounts
drawn on the facilities as shown in the table below:
31 March
30 September
2023 2022
(unaudited) (audited)
EURm EURm
----------------------------------------- ---------------- ---------------
Bank borrowings drawn in the year 79.00 11.00
Less: unamortised costs on borrowings (1.55) (1.89)
Non-current liabilities: borrowings 77.45 9.11
----------------------------------------- ---------------- ---------------
31 March
30 September
2023 2022
(unaudited) (audited)
EURm EURm
------------------------------------------ ----------------------------- -----------------------------
0.95% Green Bonds 2026 500.00 500.00
1.216% USPP 2029 100.00 100.00
1.449% USPP 2032 50.00 50.00
1.590% USPP 2034 50.00 50.00
Less: unamortised costs on loan notes (7.12) (8.04)
Non-current liabilities: loans notes 692.88 691.96
------------------------------------------ ----------------------------- -----------------------------
Maturity of loans and borrowings 30 September 2022 (audited)
------------------------------------------------------------
Drawn Undrawn Total debt
EURm EURm available
EURm
------------------------------------------ ----------------------------- ---------- -----------------
Repayable between one and two years - - -
Repayable between two and three years - - -
Repayable between three and four years 511.00 239.00 750.00
Repayable between four and five years - - -
Repayable in over five years 200.00 - 200.00
------------------------------------------ ----------------------------- ---------- -----------------
711.00 239.00 950.00
------------------------------------------ ----------------------------- ---------- -----------------
Set out below is a comparison by class of the carrying amounts
and the fair value of the Group's financial instruments:
Book Value Fair Value Book Value Fair Value
31 March 31 March 30 September 30 September
2023 2023 2022 2022
EURm EURm EURm EURm
----------------------------------- ------------- ------------- ---------------- ----------------
Bank borrowings: RCF 79.00 79.00 11.00 11.00
0.950% Green Bonds 2026 500.00 419.90 500.00 422.55
1.216% USPP 2029 100.00 91.64 100.00 91.81
1.449% USPP 2032 50.00 44.47 50.00 44.75
1.590% USPP 2034 50.00 43.76 50.00 44.14
----------------------------------- ------------- ------------- ---------------- ----------------
Total borrowings and loan notes 779.00 678.77 711.00 614.25
----------------------------------- ------------- ------------- ---------------- ----------------
The fair value of financial liabilities traded on active liquid
markets, including the 0.95% Green Bonds 2026, 1.216% USPP 2029,
1.449% USPP 2032 and 1.590% USPP 2034, are determined with
reference to the quoted market prices. The financial liabilities
are considered to be Level 1 and Level 2 fair value measure. The
fair value of the financial liabilities at Level 1 was EUR419.90
million (30 September 2022: EUR422.55 million) and Level 2 was
EUR179.87 million (30 September 2022: EUR180.70).
12. Other liabilities
The Group's properties in Germany are held in subsidiaries in
which the Group holds 94.9% or 89.9% of the shares. As part of the
purchase agreements, the Group issued put options to the minority
shareholders. The options are exercisable ten years after
acquisition and would require the Group to acquire all shares held
by the minority shareholder at the then market value. Prior to the
option date the Group has guaranteed a fixed dividend to the
minority shareholder. If this is not met by the subsidiary, then
the Company is required to settle this obligation.
13. Derivative financial instruments
To mitigate the interest rate risk that arises as a result of
entering into variable rate loans, a number of interest rate caps
have been taken out in respect of the Group's variable rate debt to
cap the rate to which three-month Euribor can rise. Each cap runs
coterminous to the initial term of the respective loans. The caps
expire in October 2023.
As at the period end the Group had notional value of interest
rate caps of EUR250 million to act as a hedge against the EUR250
million revolving credit facility.
The weighted average capped rate, excluding any margin payable,
for the Group as at the period end was 0.67%. There was no premium
payable towards securing the interest rate caps in both
periods.
31 March 30 September
2023 2022
(unaudited) (audited)
EURm EURm
------------------------------------------------- ----------------- --------------------------------
Interest rate derivatives valuation brought
forward 4.43 0.05
Realised loss on derivative - (0.11)
Disposal of interest rate cap/Cap break
receipt - (0.17)
Fair value movement (0.56) 4.66
-------------------------------------------------- ---------------- --------------------------------
Non-current assets: interest rate derivatives
carried forward 3.87 4.43
-------------------------------------------------- ---------------- --------------------------------
The interest rate derivatives are marked to market by the
relevant counterparty banks on a quarterly basis in accordance with
IFRS 9. Any movement in the mark-to-market values of the
derivatives are taken to the Group profit or loss.
As at the period end date the total proportion of debt hedged
via interest rate derivatives equated to 100% (30 September 2022:
100%).
Fair value hierarchy
The fair value of the Group's interest rate derivatives is
recorded in the Group Statement of Financial Position and is
determined by forming an expectation that interest rates will
exceed strike rates and discounting these future cash flows at the
prevailing market rates as at the period end. This valuation
technique falls within Level 2 of the fair value hierarchy, as
defined by IFRS 13. The valuation was provided by the counterparty
to the derivatives. There have been no transfers between Level 1
and Level 2 during any of the periods, nor have there been any
transfers between Level 2 and Level 3 during any of the
periods.
14. Financial risk management
Financial instruments
The Group's principal financial assets and liabilities are those
that arise directly from its operations: trade and other
receivables, trade and other payables and cash held at bank. The
Group's other principal financial assets and liabilities are bank
borrowings and interest rate derivatives, the main purpose of which
is to finance the acquisition and development of the Group's
investment property portfolio and hedge against the risk of
interest rates rising. The book value of the Group's financial
instruments approximates their fair value at the end of the
period.
Risk management
The Group is exposed to market risk (including interest rate
risk) and credit risk. The Board of Directors oversees the
management of these risks. The Board of Directors reviews and
agrees policies for managing each of these risks that are
summarised below.
Market risk
Market risk is the risk that the fair values of financial
instruments will fluctuate because of changes in market prices. The
financial instruments held by the Group that are affected by market
risk are principally the Group's cash balances and bank borrowings
along with interest rate derivatives entered into to mitigate
interest rate risk.
The Group monitors its interest rate exposure on a regular
basis. A sensitivity analysis was performed to ascertain the impact
on the Group Cash Flow Statement and net assets based on nominal
borrowings at the period end. The RCF facility was drawn by EUR79
million at the period end, 31.6% of the total EUR250 million
facility. The RCF benefits from interest rate caps, capping the
level of Euribor 3 months to a maximum of 0.65%. With the hedging
in place, any further movements in interest rates would have
limited impact on net assets.
The Group currently operates in eight countries. The current
distribution of total assets is as follows:
The
Total assets Belgium Germany Spain Italy Poland UK Netherlands Sweden Total
--------------------- ---------- ---------- --------- --------- --------- -------- -------------- --------- -----------
31 March 2023
(unaudited) 145.45 786.44 213.26 196.19 72.60 21.58 157.34 105.23 1,698.09
--------------------- ---------- ---------- --------- --------- --------- -------- -------------- --------- -----------
30 September 2022
(audited) 170.02 878.41 238.06 227.39 63.82 24.81 181.79 111.70 1,894.92
--------------------- ---------- ---------- --------- --------- --------- -------- -------------- --------- -----------
Credit risk
Credit risk is the risk that a counterparty will not meet its
obligations under a financial instrument or customer contract,
leading to a financial loss. The Group is exposed to credit risks
from both its leasing activities and financing activities,
including deposits with banks and financial institutions.
Credit risk is mitigated by tenants being required to pay
rentals in advance under their lease obligations. The credit
quality of the tenant is assessed based on an extensive credit
rating scorecard at the time of entering into a lease agreement or
acquiring a let property. The Group holds collateral by way of bank
deposits totalling EUR1.76 million (see note 10) and in certain
cases holds bank guarantee letters.
Outstanding trade receivables are regularly monitored. The
maximum exposure to credit risk at the reporting date is the
carrying value of each class of financial asset less the collateral
held.
Credit risk related to cash deposits
One of the credit risks of the Group arises with the banks and
financial institutions. The Board of Directors believes that the
credit risk on short term deposits and current account cash
balances is limited because the counterparties are banks, which are
committed lenders to the Group, with high credit ratings assigned
by international credit rating agencies.
Liquidity risk
Liquidity risk arises from the Group's management of working
capital and, going forward, the finance charges, principal
repayments on its borrowings and its commitments under forward
funded development arrangements (see note 9). It is the risk that
the Group will encounter difficulty in meeting its financial
obligations as they fall due, as the majority of the Group's assets
are property investments and are therefore not readily realisable.
The Group's objective is to ensure it has sufficient available
funds for its operations and to fund its capital expenditure. This
is achieved by continuous monitoring of forecast and actual cash
flows by management ensuring it has appropriate levels of cash and
available drawings to meet liabilities as they fall due.
Currency risk
The Group's functional currency is the Euro as the Group
operates in continental Europe. The Group keeps some cash in
foreign currency to finance its working capital. The Group holds
investment properties in Sweden, which transact business
denominated in SEK. As such, there is currency exposure resulting
from translating their performance and net assets into the
functional currency, Euros, for each financial period and at each
balance sheet date.
Development risk
Development risk is the exposure that the Group takes in
projects where building is not yet completed. Construction risk is
mitigated by the Group by entering into fixed price contracts with
the developers. Letting risk is usually alleviated by entering into
pre-let agreements with customers or rental guarantees with the
developers or vendors.
Taxation risk
Tax laws in these countries may change in the future,
representing an increase in tax risk to the Company.
15. Share capital
The share capital relates to amounts subscribed for share
capital at its nominal value:
Ordinary Shares 31 March 31 March 30 September 30 September
2023 2023 2022 2022
Number EURm Number EURm
------------------------------------------------------- -------------- ----------- --------------- ---------------
Issued and fully paid at 1 cent each
Balance at beginning of period - EUR0.01 Ordinary
Shares 806,803,984 8.07 806,693,378 8.07
Shares issued in the period - - 110,606 0.00
------------------------------------------------------- -------------- ----------- --------------- ---------------
Balance at end of period 806,803,984 8.07 806,803,984 8.07
------------------------------------------------------- -------------- ----------- --------------- ---------------
The Group has one class of Ordinary Shares which carry no right
to fixed income.
16. Net asset value (NAV) per share
Basic NAV per share is calculated by dividing net assets in the
Group Statement of Financial Position attributable to ordinary
equity holders of the Parent by the number of Ordinary Shares
outstanding at the end of the period. As there are no dilutive
instruments outstanding basic NAV per share is shown below:
30 September
2022
31 March
2023 (unaudited) (audited)
EURm EURm
-----------------------------------------------
Net assets per Group Statement of Financial
Position 822.39 1,065.75
Ordinary Shares:
Issued share capital (number) 806,803,984 806,803,984
NAV per share (expressed in Euro per share)
----------------------------------------------- -------------------- ---------------
Basic NAV per share 1.02 1.32
----------------------------------------------- -------------------- ---------------
31 March 2023 30 September 2022
EPRA NRV EPRA NTA EPRA NDV EPRA NRV EPRA NTA EPRA NDV
EURm EURm EURm EURm EURm EURm
----------- ----------- ----------- ----------- ----------- -----------
NAV attributable
to shareholders 822.39 822.39 822.39 1,065.75 1,065.75 1,065.75
----------- ----------- ----------- ----------- ----------- -----------
Mark-to-market adjustments
of derivatives (3.87) (3.87) - (4.43) (4.43) -
----------- ----------- ----------- ----------- ----------- -----------
Deferred tax adjustment 26.84 26.84 - 49.63 49.63 -
----------- ----------- ----------- ----------- ----------- -----------
Transaction costs(1) 88.63 - - 83.78 - -
----------- ----------- ----------- ----------- ----------- -----------
NAV 933.99 845.36 822.39 1,194.73 1,110.95 1,065.75
----------- ----------- ----------- ----------- ----------- -----------
NAV per share 1.16 1.05 1.02 1.48 1.38 1.32
----------- ----------- ----------- ----------- ----------- -----------
(1) EPRA NTA and EPRA NDV reflect IFRS values which are net of
RETT (real estate transfer tax). RETT are added back when
calculating EPRA NRV.
17. Transactions with related parties
For the period ended 31 March 2023, all Directors and some of
the Partners of the Manager are considered key management
personnel. The fee payable to the Manager for the period to 31
March 2023 was EUR3.41 million (31 March 2022: EUR3.95 million). An
additional EUR0.06 million of the investment management fee was
capitalised during the period (30 September 2022: EUR0.19
million).
The total amount outstanding at the period end relating to the
Investment Management Agreement was EUR1.69 million (30 September
2022: EUR1.95 million).
The total amounts paid to Directors for their services for the
period to 31 March 2023 was EUR0.2 million (31 March 2022: EUR0.1
million).
The Members of the Manager that are considered as key management
personnel are Phil Redding, James Dunlop, Henry Franklin and
Petrina Austin.
During the period the Directors received the following
dividends: Robert Orr: EUR4,836 (31 March 2022: EUR1,350), Keith
Mansfield: EUR7,250 (31 March 2022: EUR7,250), Taco De Groot:
EUR1,050 (31 March 2022: EUR1,050), Eva-Lotta Sjöstedt: EUR173 (31
March 2022: EUR173) and Sarah Whitney: EUR1,218 (31 March 2022:
EURnil).
During the period the Members of the Manager received the
following dividends: Phil Redding EUR3,300 (31 March 2022: EUR239),
James Dunlop: EUR9,554 (31 March 2022: EUR7,206), Henry Franklin:
EUR6,416 (31 March 2022: EUR4,850) and Petrina Austin EUR1,007(31
March 2022: EUR886).
18. Subsequent events
In May, a new 10-year lease was agreed with a leading global
logistics operator on the recently completed 36,434 sqm building in
Dormagen.
There were no significant events occurring after the reporting
period, but before the condensed interim financial statements were
authorised for issue.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
IR FIFEIESITLIV
(END) Dow Jones Newswires
May 18, 2023 02:00 ET (06:00 GMT)
Grafico Azioni Tritax Eurobox (LSE:BOXE)
Storico
Da Mar 2024 a Apr 2024
Grafico Azioni Tritax Eurobox (LSE:BOXE)
Storico
Da Apr 2023 a Apr 2024
