Tritax Big Box expands portfolio and widens profits

Real estate investment trust Tritax Big Box REIT PLC (LON: BBOX) posted profit growth alongside an expanded portfolio during the first half of 2019.

The Company told investors that operating profit before changes in fair value had extended 5.7% on a year-on-year basis, to £60.7 million for H1 2019. Its portfolio value also grew 12.6% in an on-year comparison, up to £3.85 billion, with rent roll also rising 3.5% to £166.8 million.

Its shareholders also enjoyed improvements on-year, with the company declaring a dividend for the period of 3.425p per share, up 2.2% on-year. Similarly, adjusted EPS lifted modestly, up 0.9% to 3.41p a share.

Despite these positives, Tritax Big Box total return for the six month period was down by 4.68 points to 0.42%, and EPRA net asset value per share dipped 1.8% to 150.08p.

Tritax Big Box comments

Company Chairman Sir Richard Jewson KCVO, JP, stated,

“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.”

“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. The environmental impact of real estate also creates demand for modern, energy efficient buildings like ours, which support our customers’ sustainability programmes.”

“The quality of our Portfolio and customer base means that, irrespective of conditions in the wider economy, we are confident of continuing to deliver secure and growing dividends to Shareholders, as part of an attractive Total Return over the medium term.”

Investor notes

The Company’s shares have dipped 1.50% or 2.20p to 144.60p a share 08/08/19 12:03 BST. Liberum Capital Analysts reiterated their ‘Hold’ stance on Tritax Big Box stock. The Group’s p/e ratio stands at 21.49 and their dividend yield is 4.61%.

Elsewhere in property development and estate agency news, there have been updates from; Belvoir Group PLC (AIM: BLV), Intu Properties plc (LON: INTU), LSL Property Services plc (LON: LSL), Countryside Properties PLC (LON: CSP) and Ashley House Plc (LON: ASH).

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Senior Journalist at the UK Investor Magazine. Also a contributing writer at the Investment Observer, UK Property Journal and UK Startup Magazine. Postgraduate of King's College London with a specialisation in Business Ethics. Interested in Development Economics and David Hume.