Results for the six months ended 31 March 2022.
Robert Orr, Chairman of Tritax EuroBox plc, commented:
"The strong financial performance we announce today is evidence of the resilient foundations of our business. We continue to build a portfolio of high-quality buildings in key European markets let to institutional-grade occupiers on long-dated and inflation-linked leases. This foundation underpins our ability to capture attractive and sustainable levels of rental growth by our strategy.
Our strategy is focused on enhancing the strong income generating characteristics of our portfolio through asset management initiatives and increasing our exposure to higher returning development projects. Our recent surrender and reletting at Hammersbach, Germany, which delivered a 24% increase in rent, highlights both the strength of the market and provides a powerful indication of the significant embedded value within our portfolio. In Bornem, Belgium, we have successfully let the 15,000 sqm building that we recently developed, delivering significant development profits and a 7% yield on cost at rental levels that represent a 16% increase to previous rents secured on the site. Both are great examples of how, by implementing our strategy, we can continue to deliver for our shareholders by maximising the value of our existing assets and developing attractive new opportunities.
The macroeconomic environment has become less certain. However, our portfolio is high-quality and resilient. Together with the structural tailwinds from the strengthening European logistics occupier market, mean that we expect our business to deliver growing rental income and capital values for the remainder of this financial year and beyond" .
Capital growth and asset management driving strong total accounting returns
· Strong total return of 12.4%, ahead of the annual target of 9%, reflecting portfolio quality.
· Portfolio value growth of 32% to €1,689.1 million (30 September 2021: €1,281.4 million), driven by like-for-like valuation increase of 8.1%, €234.5 million of acquisitions and €59.7 million of development expenditure.
· Like-for-like rental income movement (annualised at period end) of -1.5%, reflecting a new vacancy in Strykow, Poland. Excluding the vacancy, like-for-like rental income growth was +0.9%.
· Actively managing the balance sheet to provide financial resilience and capacity for growth as well as reducing the cost of debt;
o Issued first private placement of €200 million of senior unsecured loan notes with a weighted average coupon of 1.368% and maturity of nine years.
o Fitch senior unsecured credit rating upgraded to BBB from BBB- providing support for further debt issuances.
o LTV of 27.9% (30 September 2021: 13.3%) or 39.5% including all committed expenditure on developments, acquisitions since the end of the reporting period and asset management.
https://www.investegate.co.uk/tritax-eu ... 00096935L/Dividend Declaration.
The Board of Tritax EuroBox plc (tickers: EBOX (Sterling), BOXE (Euro)), which invests in Continental European logistics real estate assets, has today declared an interim dividend in respect of the period from 1 January 2022 to 31 March 2022 of 1.25 cent per Ordinary Share, payable on or around 24 June 2022 to shareholders on the Register on 27 May 2022. The ex-dividend date will be 26 May 2022.
0.32 cent of each 1.25 cent dividend per Ordinary Share will be designated as interest distribution.
https://www.investegate.co.uk/tritax-eu ... 15066938L/ASSET MANAGEMENT AND DEVELOPMENT ACTIVITY ENHANCING PORTFOLIO INCOME GENERATION
Key highlights include:
§ Growing rents by 24% to €3.1 million from €2.5 million per annum.
§ New lease includes annual and uncapped CPI linked indexation uplifts.
§ New seven year term, with tenant option to extend the lease by a further five years (subject to a market rent review at extension).
§ Inclusion of our standard Green Lease clauses.
https://www.investegate.co.uk/tritax-eu ... 01046936L/Ian.