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BBOX and all that money?

ReallyVeryFoolish
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BBOX and all that money?

#322048

Postby ReallyVeryFoolish » June 27th, 2020, 1:24 pm

Perhaps I am mistaken, but in the Investor's Chronicle recently there was an article that showed Tritax Big Box BBOX has over a billion GBP in cash. Is that right? What are they going to do with it? Didn't they recently reduce their dividend? At a 5.5%-ish yield the shares don't look particularly cheap, but if they are looking to make land/property aquisitions with that much cash, the time to buy is now before they spend the money? What am I missing, am I mistaken? Thanks.

RVF

dealtn
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Re: BBOX and all that money?

#322061

Postby dealtn » June 27th, 2020, 2:13 pm

Haven't read the article, nor know the REIT particularly well, but a look at the balance sheet shows a (conservatively?) geared company, with debts in excess of £1bn, higher than a year ago.

It's possible they have £1bn headroom on undrawn facilities, plus cash, but that's not the same impression I get from a statement such as "has over a billion GBP in cash", and might explain the apparent lack of ambition to invest in land/property acquisitions currently.

ReallyVeryFoolish
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Re: BBOX and all that money?

#322190

Postby ReallyVeryFoolish » June 28th, 2020, 1:42 am

dealtn wrote:Haven't read the article, nor know the REIT particularly well, but a look at the balance sheet shows a (conservatively?) geared company, with debts in excess of £1bn, higher than a year ago.

It's possible they have £1bn headroom on undrawn facilities, plus cash, but that's not the same impression I get from a statement such as "has over a billion GBP in cash", and might explain the apparent lack of ambition to invest in land/property acquisitions currently.

Thanks, the article I guess is paywalled. I think if anyone were to google for "Survival of the fittest", it may find the article dated 25th June. Here's a link.

https://www.investorschronicle.co.uk/sh ... e-fittest/

There's a table and it says "Fwd net cash estimate (£m)" and for BBOX the number is "£1,109 million". I can't help thinking if I am half wrong in my assertion of having more than a billion in cash then the outlook for land/property acquisition at a time of awful sentiment in the REIT sector augurs well for the future. The time to buy land/property is now or very soon. Amazon and all the other internet shopping companies plus firms playing catch up like Morrisons are not going away anytime soon. I note other similar REITs are fund raising, for presumably the same reasons.

RVF

mc2fool
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Re: BBOX and all that money?

#322191

Postby mc2fool » June 28th, 2020, 2:18 am

ReallyVeryFoolish wrote:Thanks, the article I guess is paywalled. I think if anyone were to google for "Survival of the fittest", it may find the article dated 25th June. Here's a link.

https://www.investorschronicle.co.uk/sh ... e-fittest/

Just free registration will do it (and they don't spam you).

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Re: BBOX and all that money?

#322298

Postby monabri » June 28th, 2020, 2:33 pm

From their annual report available here...

https://tritaxbigbox.co.uk/investors/results-centre/

Image

ReallyVeryFoolish
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Re: BBOX and all that money?

#322430

Postby ReallyVeryFoolish » June 29th, 2020, 1:49 am

Thanks, so BBOX doesn't have £1.1 billion in the piggy bank then? Nowhere near.

Cheers.

RVF


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