Sign up UNITED KINGDOM
Proactive Investors - Run By Investors For Investors

Tritax Big Box REIT eyes further acquisitions as profit jumps by a third

The investor said it was well positioned to take advantage of the changing dynamics in the logistics and e-commerce markets
A logistics facility
Tritax recently acquired huge distribution facilities in Crewe and Carlisle from AO.com and Stobart Group, respectively

Tritax Big Box Real Estate Investment Trust PLC (REIT) (LON:BBOX) on Thursday said its first-half profits rose more than a third and that it was well placed to make further acquisitions.

The investor and funder of large logistics facilities in the UK reported a 35% rise in first-half operating profit to £56.4mln and increased the interim dividend by 4.7% to 3.35p per share.

READ: Derwent London reports higher rental incomes as London's office rental market remains robust despite Brexit worries

Earlier this year, Tritax acquired huge distribution facilities in Crewe and Carlisle Lake District airport from AO World PLC (LON:AO.) and Stobart Group PLC (LON:STOB), respectively.

Tritax said it currently has 38 different customers, including some of the biggest names in the logistics and omni-channel retail, with 82% of its customers being members of major stock market indices in the UK, Europe and the USA.

“The group is well positioned to take advantage of the changing dynamics in the logistics market, in particular technical innovation in the form of e-commerce. This is affecting fortunes on the high street with a number of well-publicised retailers having succumbed to a challenging trading environment,” Tritax’s chairman Richard Jewson said in a statement.

“Despite the depreciation of sterling having made imports more expensive, we feel that Brexit does not yet appear to be affecting occupier demand for Big Box space significantly. We expect to see continued healthy occupier requirements for well-located logistics buildings which enable occupiers to remain competitive by delivering economies of scale benefits, cost savings and improved operational efficiencies.”

In a note to clients, broker Liberum said Tritax’s portfolio of big box assets should continue to benefit from the secular growth of e-commerce and more efficient distribution practices. They also expect the wider industrial sector to remain relatively resilient, boosted by e-commerce and a lack of new supply, as well as supportive demand from manufacturers and logistics operators.

Shares in Tritax Big Box were 1.7% down at 152.40p in late afternoon trade.

View full BBOX profile View Profile

Related Articles

GP's surgery
May 02 2018
The City broker has upped its stance on PHP to ‘buy’ from ‘hold’, given upside to its unchanged 120p target price and the benefits of the recent £115mln equity placing
industrial property warehouse
June 12 2018
Custodian’s portfolio is weighted towards industrial sector and split between industrial, retail, office and other properties
1523450716_Belvoir_02.jpg
April 11 2018
Some 80% of Belvoir’s revenue comes from letting, which insulates it to a large degree from the ‘disruptors’

No investment advice

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person. You further understand that none of the information providers or their affiliates will advise you personally concerning the nature, potential, advisability, value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter.

You understand that the Site may contain opinions from time to time with regard to securities mentioned in other products, including company related products, and that those opinions may be different from those obtained by using another product related to the Company. You understand and agree that contributors may write about securities in which they or their firms have a position, and that they may trade such securities for their own account. In cases where the position is held at the time of publication and such position is known to the Company, appropriate disclosure is made. However, you understand and agree that at the time of any transaction that you make, one or more contributors may have a position in the securities written about. You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate.

From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.

© Proactive Investors 2018

Proactive Investors Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use