Tritax EuroBox is today reporting its results for the six months ended 31 March 2021
Financial highlights: strong performance and growing dividend
• Dividends declared in respect of the period of 2.50 cents per share, up 13.6% (H1 2020: 2.20 cents)
• Raised gross proceeds of €230 million, through a significantly oversubscribed equity issue
• Received a Fitch BBB- investment grade credit rating in March 2021, immediately reducing our cost of debt and opening up new sources of debt financing
• Portfolio independently valued at €843.4 million at the period end (30 September 2020: €839.3 million), a like-for-like increase of 3.4%
• 100% of rent due for the period collected, with rent deferred from the 2019/20 financial year being collected as per agreed schedule
• Debt of €260.0 million at the period end, giving an LTV ratio of 25.0% (30 September 2020: €344.0 million and 39.9%)
Operational highlights: Further strategic progress
• Acquired one prime logistics asset in Nivelles, Belgium, for €31.2 million
• Extracted value from the portfolio, including:
- Disposing of the asset at Lodz, Poland, for €65.5 million, 15% above valuation
- Progressing the expansion opportunity at the Barcelona asset let to Mango and beginning construction on the development plot at Bornem, Belgium
- Signed a green lease with Samsung on the vacancy at Breda, Netherlands
- Agreed terms to lease the vacant unit at Strykow, Poland
• Ongoing successful implementation of our ESG strategy, including introducing ESG acquisition due diligence reports, implementing green leases and a range of initiatives to improve environmental performance, including progressing discussions on solar PV installations
• At the period end, the portfolio comprised:
- 12 assets in prime locations, with a large average size of 70,146 sqm
- A strong, well-diversified base of 21 tenant partners, 78%4 of whom are multi-billion Euro turnover businesses
• 100% of assets are income producing5 and 94% of rental income is subject to an element of indexation each year
• Weighted average unexpired lease term of 8.8 years at 31 March 2021 (30 September 2020: 9.1 years)
Post period end activity
• Signed an agreement to purchase two prime logistics assets in Germany for €290.9 million
- On 1 April 2021, completed the acquisition of a 70,000 sqm global distribution centre close to Nuremberg, let for a 15 year term to a global sportswear manufacturer and retailer
- Contracted to buy a 94,000 sqm logistics unit in Lich near Giessen to the north of Frankfurt
• The Company has issued a Green Finance Framework which will support its ongoing debt strategy https://www.tritaxeurobox.co.uk/investors/shareholder-information/key-documentation/
Robert Orr, Chairman of Tritax EuroBox plc, commented: “This was another positive period for the Company, reflecting the growing maturity of the business, which was underpinned by the oversubscribed equity raise. We delivered a robust financial performance, supporting a growing dividend. We also continued to successfully implement all elements of our evolved strategy, which includes continued improvements to the sustainability criteria of our properties.
“The fundamentals of our market remain compelling, with the Covid-19 pandemic accelerating the growth of e-commerce, adding to already significant occupier demand for high-quality, large-scale and sustainable logistics space. The Manager has identified a substantial pipeline of attractive opportunities that support our strategic goals. We expect to make further progress in the second half, as we carefully deploy the proceeds of March’s equity raise and look forward with confidence to the years ahead.”
Presentation for analysts and investors
A Company presentation for analysts and investors will take place via a live webcast and audio only dial in at 10am (BST) today.
To view the live webcast, please register at:
https://www.investis-live.com/tritaxeurobox/60991cbf8b32171000371026/tras
The audio only dial in is available using the following details:
Phone number: +44 (0) 203 936 2999
Participant access code: 734857
The presentation will also be accessible on-demand later in the day from the Company website: https://www.tritaxeurobox.co.uk/investors/results-centre/
