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4 February 2019
The Board of Tritax EuroBox plc (tickers: EBOX (Sterling), BOXE (Euro)), which invests in Continental European logistics real estate assets, is pleased to announce the following trading update ahead of the publication of the Company’s results for the period from 1 July 2018 to 31 December 2018, which are expected to be published on or around 20 March 2019.
Nick Preston, Fund Manager of Tritax EuroBox, commented:
“Following the Company’s IPO in July 2018, we have successfully deployed €558.4 million into eight prime Big Box logistics assets, all situated in key Continental European logistics locations. This has been achieved well ahead of the timeline targeted at IPO.
We believe that this best in class Portfolio is well positioned for income growth through a combination of embedded annual indexation, growth in market rental values and further income improvements created through identified value enhancement opportunities, supporting our objective of delivering secure and growing income and attractive capital returns for Shareholders.
The Company’s unsecured revolving credit facility, entered into at an attractive cost of debt, is instrumental in providing a flexible source of committed capital to further support our strategy and build the Portfolio.
The Continental European logistics market continues to benefit from strong underlying fundamentals underpinned by the growth in e-commerce and occupiers seeking to optimise their supply chains. By leveraging the long-established relationships of Tritax Group and of the Company’s asset managers, LCP and Dietz, we continue to see an attractive pipeline of off-market investment opportunities.”
1. Excludes property purchase costs
2. Euro denominated returns, by reference to IPO issue price. These are targets only and not profit forecasts. There can be no assurances that these targets will be met and they should not be taken as indications of the Company’s expected or actual future results
For further information, please contact:
Tel: +44 (0)20 7290 1616
Jefferies International Limited
Tel: +44 (0)20 7029 8000
Kempen & Co N.V.
Thomas ten Hoedt
Tel: +31 (0)20 348 8500
Maitland/AMO (Communications Adviser)
Tel: +44 (0)77 4711 3930
Tritax EuroBox plc invests and manages a well-diversified portfolio of well-located Continental European logistics real estate assets that are expected to deliver an attractive capital return and secure income to shareholders. These assets fulfil key roles in the logistics and distribution supply-chain focused on the most established logistics markets and on the major population centres across core Continental European countries.
Occupier demand for Continental European logistics assets is in the midst of a major long-term structural change principally driven by the growth of e-commerce. This is evidenced by technological advancements, increased automation and supply-chain optimisation, set against a backdrop of resurgent economic growth across much of Continental Europe.
The Company’s Manager, Tritax Management LLP, has assembled a full-service European logistics asset management capability including specialist “on the ground” asset and property managers with strong market standings in the Continental European logistics sector. The appointed asset managers Logistics Capital Partners (“LCP”) and Dietz AG (“Dietz”) are logistics specialists and offer the Company exposure to high quality asset management expertise and access to their respective development pipelines, providing acquisition opportunities across Continental Europe.
The Company is targeting, on a fully invested and geared basis, an initial Ordinary Share dividend yield of 4.75% p.a.², which is expected to increase progressively through regular indexation events inherent in underlying lease agreements, and a total return on the Ordinary Shares of 9.0% p.a.² over the medium-term. The Company intends to pay dividends on a quarterly basis with shareholders able to receive dividends in Sterling or Euro.
Further information on Tritax EuroBox plc is available at www.tritaxeurobox.co.uk