7th Mar 2018 09:08
LONDON (Alliance News) - Tritax Big Box REIT PLC said on Wednesday it saw a double-digit rise in the valuation of its portfolio and net asset value for 2017, as it forecasts a positive effect in demand from Brexit.
The FTSE 250-listed investor in large distribution warehouses, said that EPRA net asset value per share rose by 10% to 142.24 pence as at the end of December, up from 129.00p on the same date the year before. The group's total return for the year was 15.2%.
Tritax's portfolio valuation grew to GBP2.61 billion, up 38% from GBP1.89 billion over the year, through the acquisition of 11 big box warehouse for an aggregate purchase price of GBP435.0 million.
The group's portfolio was was either fully let, or pre-let and income producing during the year, with a weighted unexpired lease term at December 31 of 13.9 years. The portfolio's contractual annual rent roll rose by 26% to GBP125.9 million from GBP99.7 million.
For the year, Tritax declared a full-year dividend of 6.40 pence per share, up 3.2% from 6.20p the prior year, and is targeting a dividend of 6.70 pence per share for 2018, up 4.7% from 2017.
The group said that Brexit may "provide a silver lining", as increased border controls will lead to customers requiring more domestic warehousing, leading to an increase in demand.
"We have a sector-leading portfolio of UK Big Box assets that are benefiting from structural change driven by increasing e-commerce penetration, and the operational and financial benefits which they can provide to our customers. The fundamentals of our market remain positive and are largely unaffected by current geopolitical and economic uncertainties. Despite the uncertainties it brings, Brexit may provide a silver lining, since with increased border controls our customers will require more warehousing domestically, further supporting our business case," said Chairman Richard Jewson.
Shares in Tritax Big Box REIT were up 1.9% at 143.20 pence on Wednesday.
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