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We operate in a sector with strong market fundamentals.

While each European country is different, there are common themes of rising occupational demand, constrained supply, increasing rents and improving lease terms. There is a growing body of evidence that the Covid-19 pandemic is leading to an acceleration in many of these trends, intensifying occupational demand and increasing investment returns.

1. The growth in e-commerce

The move to online shopping is one of the key drivers of occupational demand for large logistics assets. A sophisticated and modern supply chain is fundamental to the success of the omni-channel retail model. Retailers are increasingly reliant on very large, well located, flexible, modern, automated logistics properties, enabling them to offer consumers access to their entire product range and then quickly, flexibly, and cheaply deliver those orders and manage returns, while also having the ability to add capacity as they grow.

The Centre for Retail Research (CRR) believes that Covid-19 has accelerated the growth in online sales, forecasting that online share of total sales will reach new highs in the six main Western European countries.

2. Optimising and future proofing supply chains

Even before the Covid-19 pandemic, many businesses were facing persistent pressure on their supply chains, making the efficiencies and lower costs offered by large flexible logistics buildings highly appealing. By consolidating into fewer, larger and more modern distribution assets, occupiers gain with valuable economies of scale and the opportunity to automate processes which would not be possible in smaller, disparate properties, helping them to reduce costs and improve flexibility to meet growing demand.

The pandemic profoundly disrupted many supply chains, particularly in the early stages. Companies now recognise that they now need to protect themselves from supply side disruptions in the future – either but relocating manufacturing and assembly closer to Europe from Asia or by holding more inventory - to ensure that their supply chains are not only efficient but also resilient.

3. Occupying sustainable assets for years to come

Sustainability is increasingly central to our partner tenants’ corporate strategies, reflecting the potential cost savings of energy efficiency, being responsible corporate citizens and the need to respond to growing consumer awareness of sustainability issues. By occupying assets built with state-of-the-art design and materials, and which incorporate low-carbon technologies and energy efficiency, they can minimise their environmental footprint and optimise their use of natural resources.

Sustainable assets are also more attractive investments, offering lower obsolescence, lower running costs and greater long-term appeal to occupiers and investors.

Attractive market fundamentals

Despite strong and increasing occupational demand, the supply of prime, large-scale logistics assets remains constrained in core locations close to densely populated conurbations, where there are comparatively few sites which can accommodate such large facilities. These large properties also require an available and affordable labour supply, significant power provisions and to be in close proximity to appropriate transport links and infrastructure.

These necessities together with municipalities' reluctance to zone for the largest properties, instead preferring to consent for smaller unit development, constrict and control the supply of new large-scale facilities. The consequence is that logistics vacancies across Continental Europe are at, or near, all-time lows.

Such strong occupier demand and constrained supply, combined with rising land prices, raw material, and labour costs, mean there is pressure for rents to increase. Another important effect now evident in some European markets is the potential to improve lease terms in favour of the property owner, such a longer lease terms as well as better indexation clauses.

Logistics property occupiers are responding to profound structural and operational changes in their markets.

Nick Preston - Tritax EuroBox, Fund Manager

Uniquely positioned to capitalise on this compelling opportunity 

We are well positioned to capitalise on the opportunity that the continental European logistics market has to offer. Our high-quality and diversified portfolio along with our Investment Manager’s specialist expertise and unique relationships provides us with an exceptional understanding of and insight into our sector. This insight, together with our strategically focused investment strategy and access to a prime investment pipeline, ensures that we are well placed to maximise our sectors' potential and deliver to our shareholders attractive, sustainable investment returns.

Our specialist knowledge and expertise delivers value

Our Investment Manager, Tritax Group, is a sector specialist. We benefit significantly from the Manager’s culture, strategic thinking, expertise and extensive network of industry contacts, which enable us to capitalise on the opportunity that our sector offers.

Clear strategic focus and delivery 

The Company’s strategically focused investment strategy ensures highly selective asset acquisition. We deliberately focus on a specific sub-sector of the logistics market, targeting very large modern buildings in the best logistics locations, close to major population centres and transport links. We believe that this particular sub-sector provides the best prospects for rental growth based on the very favourable supply/demand dynamics.

Our portfolio offers attractive, secure and inflation-linked income

We have diligently assembled an outstanding portfolio of large, modern and flexible assets in prime logistics locations across Europe, which generates a robust, diversified income stream.  Our attractive dividend is supported by built-in compounding through the indexation in our leases. Our strategy enables us to grow both high-quality income and the capital value of our assets delivering attractive total returns to shareholders.

Asset management capabilities underpin further value creation

Our portfolio benefits from numerous embedded opportunities to create further value for shareholders through, for example, leasing unoccupied space and utilising unused or adjacent land, providing upside to income and capital values.

Unique relationships secure high-quality, sought after investment pipeline

Our developer relationships give us access to a pipeline of the highest quality new assets, enabling us to add to the portfolio at more attractive valuations and acquire assets earlier in their development and on an off-market basis, giving us the opportunity to capture value creation opportunities.

Compelling strategy
See how we maximise the opportunities our market presents