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Half-year results for the six months ended 31 March 2024

Continued progress on strategic priorities has delivered a solid operational performance, with good visibility on further improvement in the second half.

16 May 2024

Chairman's commentary

Robert Orr, Chairman of Tritax EuroBox plc, commented:

“Over the past six months, we have continued to build on the good progress made on delivering the strategic priorities we outlined 18 months ago. A solid operational performance is reflected in the cost ratio within our target range, the dividend remaining fully covered, and the further advancement of our planned disposal programme that continues to lower balance sheet leverage.

“Asset sales have now reached €173 million, and we expect to complete the disposal programme and move our debt metrics towards target levels by the end of 2024. In total, these transactions have been completed broadly in line with book values, demonstrating the attractiveness of our portfolio in what has been a challenging period in investment markets. Reflecting this uncertain market backdrop, investment yields have continued to soften leading to our portfolio valuation declining marginally over the period.

“We remain confident our high-quality portfolio and customer base continues to place the Company in a strong position to benefit from the supportive structural drivers and market dynamics in the European logistics sector. However, despite the progress with our strategic priorities and well-positioned portfolio, the Board remains acutely aware of the significant share price discount to NAV. The Board is in regular dialogue with the Manager and the Board’s advisers about how to address this issue, and there is a clear alignment and focus to deliver value for all shareholders in an effective and efficient manner.”

FY24 half-year results overview

       Rental income impacted by disposals; dividend remains covered

  • IFRS rental income of €35.9 million, up 10.1%, reflecting rent indexations, asset management activity and conversion of rental guarantees into income partly offset by disposals
  • Annualised rental income of €74.3 million, down 2.6%, primarily due to the sales programme. Like-for-like5 rental decline of 0.3% over six months, with income growth offset by lease and rental guarantee expiries.
  • Adjusted EPRA Cost Ratio7 of 24.1% (H1 23: 25.6%), in line with our target range of 20-25%, benefiting from a lower Management fee due to the lower portfolio valuation.
  • Adjusted EPS1 of 2.62 cents, down 3.0%, primarily due to disposals.
  • Dividend per share of 2.50 cents was 104.7% covered by Adjusted EPS for the period.

    Investment portfolio let to strong customers on long-term, inflation-linked leases

  • Portfolio value2 of €1,464.8 million (FY23: €1,561.9 million), reflecting the disposals of Bochum and Malmö and a like-for-like reduction of 2.9% primarily due to continued sector-wide outward yield shift, partly offset by ERV growth.
  • Decline in portfolio value led to a reduction in NTA per share to €0.96 (FY23: €1.02) and a negative Total Return of 3.0% (FY23: negative 22.5%).
  • Portfolio reversion of 21.3% or €15.9 million, reflecting a like-for-like increase in portfolio ERV of 4.0%.
  • 97% of leases subject to annual rental increases, with a WAULT to expiry of 9.5 years and 82% linked to inflation.
  • Decrease in EPRA vacancy rate to 3.9% (FY23: 5.5%) reflecting the new lettings in Italy, Sweden and Poland. The post period end short-term letting in Poland reduces this to 3.1%.

    Asset management and indexation added €1.8 million to annualised rental income4

  • Three new leases at Settimo Torinese, Rosersberg 1 and Strykow total €1.6 million of annual rent. Post period end, signed an additional short-term lease at Strykow, securing rent of €0.6 million.
  • Asset sales in Bochum and Malmö for €46.8 million and €28.3 million respectively, and post period end in Gothenburg for €33.5 million. The disposal programme has now reached €173 million, with overall sales in line with book value.
  • Ongoing integration of ESG objectives into operations, including progress with the four German solar PV projects that will more than double installed capacity to 21.5MWp from 10.3MWp. Installation is expected to commence in Q4 2024.

    Balance sheet benefitting from low cost of debt and no near-term refinancing

  • 100% of drawn debt with fixed rates, with an average cost of debt of 1.43% for H1 24. €250.0 million of undrawn debt facilities as at period end.
  • 3.0-year weighted maturity, with earliest refinancing of drawn debt not required until Q2 2026.
  • Fitch investment grade rating re-affirmed and outlook upgraded to Stable.
  • Loan to value (LTV) ratio3 of 44.5% remains above our preferred range, with the benefit of disposal proceeds partly offset by the portfolio valuation decline and capital expenditure on the Oberhausen development.
  • Taking into account the post period end disposal at Gothenburg, the pro-forma LTV decreases to 43.3%.
  • Covenant headroom with LTV3 of 44.5%, interest cover of 4.8x and gearing of 86.1%, versus covenants of 65%, 1.5x and 150.0% respectively.

1. See note 7 to the condensed financial statements for reconciliation.
2. Valuation under IFRS (excluding rental guarantees), this includes assets held for sale.
3. As per KPI definition.
4. Contracted rent, on an annualised basis, at the reporting date. With the additions of rental guarantees.
5. Excluding extensions at Strykow, the like-for-like rental income decline is 0.3%. Rental income growth for the stabilised portfolio of 0.6%.
6. Weighted average unexpired lease term to break is 7.8 years and weighted average unexpired lease term to expiry is 9.5 years.
7. Including rental guarantees.
8. Like-for-like ERV growth for six months for H1 24 and H1 23, and for 12 months for FY23.

Presentation for investors and analysts

A Company presentation for analysts and investors will take place via a live webcast at 09:00am (UK time) today. To view the live webcast, please register via this link:

Tritax EuroBox plc – 2024 half-year results

Analysts and investors will also be able to listen to the event via a moderated conference call using the following details:
Phone number: +44 (0) 33 0551 0200
Participant access: quote ‘EuroBox Half-year results’

The presentation will also be accessible on-demand later in the day from the Company website:

A Company presentation aimed more towards retail investors will take place via a live webcast at 11:30am (UK time) on Friday 17 May 2024. Investors can sign up to Investor Meet Company for free and add to meet Tritax EuroBox plc via:

The presentation is open to all existing and potential shareholders. Questions can be submitted pre-event via your Investor Meet Company dashboard up until 16 May 2024, 09:00am (UK time), or at any time during the live presentation. Investors who already follow Tritax EuroBox plc on the Investor Meet Company platform will automatically be invited.

Further information
Tritax EuroBox plc
+44 (0) 20 8051 5070

Phil Redding – CEO for Tritax EuroBox plc

Mehdi Bourassi – CFO for Tritax EuroBox plc

Charles Chalkly – Investor Relations Director for Tritax EuroBox plc

Tom Climie / Guy Bates +44 (0) 7760 160 248 / +44 (0) 7581 056 415

Further information on the Company is available at:
The Company's LEI is: 213800HK59N7H979QU33.


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Tritax Eurobox FY24 H1 Results Statement 2024 05 16 (Website)