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Full Year Results for the 12 Months Ended 30 September 2021

Tritax EuroBox plc and BOXE, which invests in a high-quality portfolio of large, prime logistics real estate assets strategically located across Continental Europe, is today reporting its results for the 12 months ended 30 September 2021.

07 Dec 2021

Financial highlights: continued strong performance and dividend growth

  • Dividends declared in respect of the year of 5.0 cents per share, up 13.6% (2020: 4.40 cents), contributing to Total Return of 14.3% (2020: 11.0%)
  • Raised gross proceeds of €480 million through two oversubscribed equity issues in March and September 2021
  • Awarded a BBB- investment grade credit rating in March 2021, immediately reducing our cost of debt and opening up new sources of debt financing
  • Issued a €500m senior unsecured green bond in June 2021, significantly lowering the cost of debt and diversifying our funding sources into the debt capital markets
  • Portfolio independently valued at €1,282.67 million at the year end (30 September 2020: €839.3 million), a like-for-like increase of 11.9%
  • 100% of rent due for the year collected, along with all rent deferred from 2019/20, resulting in full rent collection over the last two financial years

Operational highlights: successful implementation of our strategy

  • Acquired prime logistics assets in Belgium, Germany (two assets) and Sweden, and forward funded the acquisition of a prime asset in Italy
  • Continued to extract value from the portfolio, including:
    • Disposing of the asset at Lodz, Poland, for €65.5 million, 15% above valuation and delivering an IRR of 16.5%
    • Launching construction of the extension to the Barcelona asset let to Mango, and achieving practical completion of new building at the Bornem asset in Belgium
    • Signed a green lease with Samsung on the vacant units at Breda, the Netherlands, and let the vacant unit at Strykow, Poland
  • Continued successful implementation of our environment, social and governance (ESG) strategy, including introducing ESG acquisition due diligence reports, implementing green leases and a range of initiatives to improve environmental performance, including progressing solar PV installations, resulting in an improved GRESB score of 82/100
  • At the year end, the portfolio comprised:
    • 15 assets in prime locations, with an average size of 70,027 sqm
    • A strong, well-diversified base of 27 tenant partners, 76%5 of our income is underpinned by multi-billion Euro turnover businesses
    • 100% of assets are income producing6 and 95% of rental income is subject to an element of indexation each year
    • Weighted average unexpired lease term of 9.3 years (including rental guarantees) at 30 September 2021 (30 September 2020: 9.1 years)
  • Numerous opportunities to drive income and capital growth into the future:
    • 145,068 sqm of land that can be developed
    • 30,938 sqm of floorspace subject to rental guarantees

Post year-end activity

  • Continued to deploy proceeds of September 2021 equity raise, agreeing to acquire a recently built prime logistics asset for €32 million and agreeing to acquire land and fund the development of a €118 million prime asset, both in the Rhine-Ruhr region of Germany. Acquired a 48,000 sqm logistics asset close to Piacenza in Italy for €50m
  • Issued the Company’s first private placement of €200 million, further diversifying its sources of debt funding and extending the weighted average maturity of the debt facilities
  • Completed a new green lease on the vacant unit in Nivelles, Belgium, on a nine-year lease to a leading Belgian supermarket operator at a rent 8% above the previous rental level

Robert Orr, Chairman of Tritax EuroBox plc, commented:

“This has been a significant year in the Company’s development, as the business’s growing maturity has helped us to build both scale and momentum. We are successfully implementing our strategy, acquiring prime assets in excellent locations, extracting value from the existing portfolio and continuing to advance our ESG agenda. This has helped us to deliver a strong financial performance and meaningful dividend growth. Our success this year has been underpinned by our ability to raise new equity and the issuance of our first green bond, which in turn reinforces our ESG strategy.

“Our market remains highly attractive, with strong occupier demand driven in particular by the accelerated growth of e-commerce, combined with limited supply of large, high-quality and sustainable space to rent in prime markets. We see attractive opportunities to add assets to the portfolio that have built-in value creation opportunities and remain confident of further growth in the coming year.”

Presentation for Analysts and Investors

A Company presentation for analysts and investors took place via a live webcast at 1000 (GMT) on the day.

To watch a recording of the webcast, please click here:

https://www.investis-live.com/tritaxeurobox/61a0fe53e4767b1300c1a668/twhwk

The presentation is also available here: https://www.tritaxeurobox.co.uk/investors/results-centre/

Notes

5 By rental income

6 Including licence fee income and rental guarantees

7 Including rental guarantees

 

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Tritax Eurobox Plc EBOX BOXE Annual Results 2021 7Dec21
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