8th Aug 2019 10:22
(Alliance News) - Tritax Big Box REIT PLC said Thursday its net asset value and earnings decreased in the first half of 2019 on exceptional acquisition costs, despite higher rental income and portfolio value in the period.
As at June 30, the logistics-focused real estate investment trust reported an EPRA net asset value per share of 150.08 pence, down 1.8% from 152.83p the same period the year before.
This was largely due to exceptional costs of GBP4.1 million, related to the acquisition of Barwood Developments and Delancey joint venture db Symmetry, which had an enterprise value of GBP370 million.
This one-off charge also affected Tritax's operating profit before change in fair value of investment properties - the company's preferred profit measure - which decreased by 1.4% to GBP56.6 million from GBP57.4 million the prior year.
On an underlying basis, operating profit for the six-month period increased by 5.7% to GBP60.7 million.
The trust's net rental income increased by 4.7% to GBP69.2 million from GBP66.1 million, as the contracted rent roll as at June 30 rose by 3.5% to GBP166.8 million from GBP161.1 million at the end of 2018.
As at June 30, Tritax Big Box's property portfolio value was GBP3.85 billion, 13% higher from GBP3.42 billion as at December 31. The portfolio itself comprises 58 assets covering around 30.9 million square feet.
Tritax Big Box declared an interim dividend of 3.425 pence per share, up 2.2% from 3.35p the year before.
"The long-term fundamentals of our market are positive. The sector continues to benefit from the structural change in shopping habits, as consumers switch from the high street to buying online, creating ongoing demand for logistics space to fulfil these orders," said Chair Richard Jewson.
"With Brexit contributing to an uncertain economic environment and making it more difficult for companies to grow their profits, the operational efficiencies and cost savings offered by Big Boxes remain compelling to occupiers. Businesses across industries have signalled their intentions to invest in logistics infrastructure, including new warehouse facilities as well as systems and automation, to facilitate efficient supply chains," Jewson added.
Shares in Tritax Big Box REIT were down 1.2% at 145.00 pence on Thursday.
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