Tritax Big Box REIT plc Trading Statement (7062C)
30 June 2016 - 4:00PM
UK Regulatory
TIDMBBOX
RNS Number : 7062C
Tritax Big Box REIT plc
30 June 2016
30 June 2016
TRITAX BIG BOX REIT PLC
(the "Company")
TRADING UPDATE
The Board of Tritax Big Box REIT plc (ticker: BBOX) is pleased
to provide the following update ahead of the half year period
ending 30 June 2016.
PORTFOLIO HIGHLIGHTS
-- GBP1,488 million (net of acquisition costs)(1) invested in 28
UK Big Box assets let to 22 tenants
-- 27 standing assets and one pre-let forward funded development
with a combined floor space of 14.7 million sq. ft. (of which 0.6
million sq. ft. is under construction)
-- 75% of assets acquired off-market with average purchase yield of 5.8%
-- Nine new investments made in the last 12 months for an
aggregate purchase price of GBP473 million
-- Current weighted average unexpired lease term ("WAULT") across the portfolio of 16.3 years
-- Portfolio 100% let with contracted annual rental income of
GBP78.5 million(2) as at 29 June 2016
-- All leases provide for upward only rent reviews, of which 43%
are open market, 32% are fixed uplift, 17% are RPI linked and 8%
are hybrid
-- High quality institutional grade tenant mix with strong
financial covenants - 84%(3) of tenants are listed PLCs (71% in the
FTSE 100 or FTSE 250)
-- Forward funded developments pre-let to Rolls-Royce Motor
Cars, Ocado, NicePak, Dunelm and Howdens have all completed on
schedule and on budget
(1) as at 31 December 2015 valuation plus acquisition price for
subsequently acquired properties
(2) including forward funded assets
(3) based on the ultimate parent entity of the lessee
FINANCIAL HIGHLIGHTS
-- Targeting fully covered aggregate dividend of 6.2p per share
for the year ending 31 December 2016(4)
-- Low cost base with 2015 total expense ratio of 1.09%
-- GBP569.5 million of committed debt financing in place of
which GBP472.9 million is currently drawn (32% LTV)
-- Weighted average term to maturity of debt facilities of 4.3
years, which could be increased to 6.1 years by triggering
extension options
-- Current blended margin payable of 1.42% above three month
LIBOR, capped at an all-in rate of 2.84% using interest rate caps
which run coterminous with the Group's bank facilities
-- Successful oversubscribed GBP200 million equity issue in February 2016
(4) the target dividend is a target only and not a forecast.
There can be no assurance that the target will be met and it should
not be taken as an indication of the Company's expected or actual
future results.
Colin Godfrey, Partner of Tritax, said:
"The Company derives a high quality, defensive income stream
from its diversified portfolio of 28 UK assets with a WAULT of 16.3
years and contracted upward only rent reviews across all leases.
The Company's institutional-grade tenants and focus of operations
are substantially UK orientated.
The Company continues to review its pipeline of attractively
priced investment opportunities taking into account any potential
impact following the UK vote to leave the EU. The Company is also
evaluating the potential for longer term fixed rate debt to
diversify further its funding sources in light of continued low
interest rate expectations."
For further information, please contact:
Tritax Group via Newgate (below)
Colin Godfrey (Partner,
Fund Manager)
Newgate (PR Adviser) Tel: 020 7680 6550
James Benjamin Email: tritax@newgatecomms.com
Alex Shilov
Lydia Thompson
Jefferies International Tel: 020 7029 8000
Limited
Gary Gould
Stuart Klein
Akur Limited Tel: 020 7493 3631
Anthony Richardson
Tom Frost
Siobhan Sergeant
NOTES:
Tritax Big Box REIT plc is a real estate investment trust to
which Part 12 of the UK Corporation Tax Act 2010 applies ("REIT").
The Company invests in a portfolio of well-located, modern "Big
Box" assets, typically greater than 500,000 sq. ft., let to
institutional-grade tenants on long-term leases (typically at least
12 years in length) with upward-only rent reviews (giving inflation
linked earnings growth), and with geographic and tenant
diversification throughout the UK. The Company seeks to exploit the
significant opportunity in this sub-sector of the UK logistics
market owing to strong tenant demand in high growth areas of the
economy and limited stock supply. The Company is the only listed
vehicle to give pure exposure to the "Big Box" asset class in the
UK.
Further information on Tritax Big Box REIT is available at
www.tritaxbigbox.co.uk
This information is provided by RNS
The company news service from the London Stock Exchange
END
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