TIDMEBOX TIDMBOXE
RNS Number : 5188F
Tritax EuroBox PLC
10 March 2020
10 March 2020
Tritax EuroBox plc
(the "Company")
EPRA INDEX INCLUSION AND TRADING UPDATE
The Board of Tritax EuroBox plc (tickers: EBOX (Sterling), BOXE
(Euro)) , which invests in Continental European logistics real
estate assets, is pleased to announce a trading update and
inclusion in the FTSE EPRA/NAREIT Global Real Estate Index
Series.
EPRA Index Inclusion
-- The Board is pleased to advise that it has been notified by
EPRA, the European Public Real Estate Association, that the Company
will be added to the FTSE EPRA/NAREIT Global Real Estate Index
Series with effect from 23 March 2020 having successfully satisfied
the required eligibility criteria during the Index's recent
Quarterly Review.
Trading Update
Market Environment
-- Structural drivers of accelerating e-commerce growth,
automation of omni-channel supply chains, and ongoing urbanisation
continue to increase demand for prime big box logistics assets
across Continental Europe with vacancy rates and the supply of new
development sites now at historic lows.
-- The supply/demand imbalance, alongside rising construction
costs, has led to upward pressure on rental levels across the
Company's chosen markets.
-- Individual asset location, size of property and the resulting
efficiency for tenants remain key considerations with the supply
shortage most acute in large format buildings in established
distribution hubs with strong transportation links near densely
populated areas.
Portfolio Update
-- The Company has built a portfolio of twelve prime, large
logistics assets located across Continental Europe in line with its
investment strategy.
-- The portfolio has exposure to Germany, Italy, Poland, Spain,
Belgium and the Netherlands, with an average property size of
76,000 sqm.
-- Indexation events embedded in the portfolio's leases provide
regular compounding annual increases in income. The portfolio now
benefits from contracted annual rental income of EUR40.4
million.
-- Weighted average unexpired lease term across the portfolio is 9.8 years.
Asset Management Initiatives
-- Completion of a number of income and value enhancing
initiatives since September 2019 including:
o Leasing of vacant space at the asset in Bochum, Germany and
regearing of a lease at Bornem, Belgium, further strengthening the
income profile and diversifying the tenant base of the
portfolio.
o An 88,000 sqm extension has been agreed to the Company's
property in Barcelona, Spain, which is already fully pre-let and
utilises a vacant land plot adjacent to the existing property
already owned by the Company.
-- Further asset management activity is expected across the
portfolio including agreeing pre-let developments on a number of
zoned plots of unused land and further leasing of unoccupied space
(currently subject to rental guarantees) in Breda, Netherlands and
Strykow, Poland.
-- In total these asset management initiatives could add up to
EUR6.1 million of income to the portfolio over the medium term.
Financial Returns
-- Following the recent acquisition in Poland, the Company has
now substantially invested its available cash with the rental
income generated by the current portfolio meaning that the Company
is on schedule to increase the dividend towards the target
level.
-- The combination of the dividend, indexation of rents, value
adding initiatives and capturing of market rental value growth will
assist the Company in delivering the target total accounting return
of 9.0% per annum over the medium term.
Robert Orr, Independent Chairman of Tritax EuroBox,
commented:
"The Board is pleased that the Company will be added to the
FTSE/EPRA NAREIT Index, which is widely followed by global real
estate investors and should assist in continuing to broaden the
Company's investor base and to increase the liquidity of our
shares."
Nick Preston, Fund Manager of Tritax EuroBox, commented:
"We are pleased to be able to report that the portfolio we have
assembled since IPO continues to provide us with opportunities to
create additional shareholder value through active asset
management. Working closely with our management teams and tenants,
we have already delivered a number of these opportunities adding
further income as well as value to the portfolio. We continue to
identify further initiatives and look forward to providing further
updates in due course."
FOR FURTHER INFORMATION, PLEASE CONTACT:
Tritax Group +44 (0) 20 7290 1616
Nick Preston
Mehdi Bourassi
Jefferies International Limited +44 (0) 20 7029 8000
Gary Gould
Stuart Klein
Tom Yeadon
Kempen & Co +31 (0) 20 348 8500
Dick Boer
Thomas ten Hoedt
Akur Limited +44 (0)20 7493 3631
Anthony Richardson
Tom Frost
Siobhan Sergeant
Maitland/AMO (Communications
Adviser) +44 (0) 20 7379 5151
James Benjamin tritax-maitland@maitland.co.uk
The Company's LEI is: 213800HK59N7H979QU33.
NOTES:
Tritax EuroBox plc invests in and manages a well-diversified
portfolio of well-located Continental European logistics real
estate assets that are expected to deliver an attractive capital
return and secure income to shareholders. These assets fulfil key
roles in the logistics and distribution supply-chain focused on the
most established logistics markets and on the major population
centres across core Continental European countries.
Occupier demand for Continental European logistics assets is in
the midst of a major long-term structural change principally driven
by the growth of e-commerce. This is evidenced by technological
advancements, increased automation and supply-chain optimisation,
set against a backdrop of resurgent economic growth across much of
Continental Europe.
The Company's Manager, Tritax Management LLP, has assembled a
full-service European logistics asset management capability
including specialist "on the ground" asset and property managers
with strong market standings in the Continental European logistics
sector.
The Company is targeting, on a fully invested and geared basis,
an initial Ordinary Share dividend yield of 4.75% p.a. (1) , which
is expected to increase progressively through regular indexation
events inherent in underlying lease agreements, and a total return
on the Ordinary Shares of 9.0% p.a. (1) over the medium-term. The
Company pays dividends on a quarterly basis with shareholders able
to receive dividends in Sterling or Euro.
Further information on Tritax EuroBox plc is available at
www.tri taxeurobox.co.uk
1. Euro denominated returns, by reference to IPO issue price.
These are targets only and not profit forecasts. There can be no
assurances that these targets will be met, and they should not be
taken as indications of the Company's expected or actual future
results. Accordingly, potential investors should not place any
reliance on the target in deciding whether or not to invest in the
Company and should not assume that the Company will make any
distributions at all and should decide themselves whether or not
the target is reasonable or achievable.
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.
END
MSCKZGGFGLVGGZZ
(END) Dow Jones Newswires
March 10, 2020 03:00 ET (07:00 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
