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Full year results for the period from 1 January to 31 December 2016

7 March 2017

Tritax Big Box REIT plc (ticker: BBOX), the only real estate investment trust giving pure exposure to Big Box logistics assets in the UK, is today reporting its full year results for the Group for the period from 1 January 2016 to 31 December 2016.

 

Financial highlights

  • Dividends declared in relation to 2016 totalled 6.20 pence per share, in line with our target. Dividends fully covered by Adjusted earnings per share of 6.51 pence.
  • Total Shareholder return for the period was 15.1% (based on the increase in share price assuming dividends reinvested), as compared to the FTSE 250 Index, the FTSE All-Share REIT Index and the EPRA NAREIT UK index which delivered total returns of 6.7%, (7.0%) and (8.5%) respectively.
  • EPRA net asset value per share increased by 3.46% or 4.71%¹on a like-for-like basis to 129.00 pence at 31 December (31 December 2015: 124.68 pence).
  • Total return (being the increase in EPRA NAV plus dividends paid) for the year was 9.6%, compared to our medium-term target of 9% per annum.
  • Market capitalisation of £1.54 billion as at 31 December 2016.
  • Portfolio independently valued at £1.89 billion² as at 31 December 2016 which includes all forward funded commitments.
  • The portfolio’s contracted annual rent roll has increased to £99.66 million (31 December 2015: £68.37million), which includes all forward funded commitments.
  • Further diversified our sources of borrowing, with a new £72 million, long-term, fixed-rate facility with Canada Life. The Loan to Value (LTV) as at 31 December 2016 was 30.0%.
  • A reducing EPRA cost and total expense ratio of 15.8% and 1.06% respectively, reflecting the benefits of increased scale.
  • Raised £550 million of equity during 2016, through two substantially oversubscribed share issues.

Operational highlights

  • Acquired 10 Big Boxes during the year with an aggregate purchase price of £524.4 million, further diversifying the portfolio by geography and tenant.
  • As at the year-end our portfolio comprised 35 assets, covering more than 18.2 million sq ft of logistics space.
  • Four forward funded pre-let developments reached practical completion in the year, with a total valuation of £272.8 million at 31 December 2016.
  • Average net initial yield of the portfolio at acquisition is 5.70%, against our year-end valuation of 4.93%.
  • Our portfolio was fully let, or pre-let and income producing during the year.
  • At the year-end, the weighted average unexpired lease term (“WAULT”) was 15.3 years, against our target of at least 12 years.

Post Balance Sheet activity

  • Progressive dividend target of 6.40 pence per share announced for 2017.
  • Invested in the forward funded development pre-let to Hachette UK.
  • Agreed a new 10 year fixed term loan facility with a fixed rate payable of 2.54%pa.

1 Having stripped out the effect of the different timings of dividend payments between December 2015 and December 2016.

2 Excludes Howdens units II and III at Warth Park, Raunds.

* Each year makes reference to 31 December.

Richard Jewson, Chairman of Tritax Big Box REIT plc, commented:

“The outlook for the Group remains positive. We are in a strong financial position and see further opportunities to acquire high-quality standing assets and to forward fund pre-let developments.

We consider there to be limited potential for capital growth through further yield compression and whilst more challenging, we have maintained a 9% per annum total return target. Capital growth is therefore likely to come from steady state capitalisation rates being applied to growing income. We believe that income will remain the most important component of total return over the next 12 months. There are strong drivers to rental growth in the market, both due to the ongoing imbalance between occupational supply and demand and the increase in build costs in 2016, which we expect will feed through to rents. This rental growth will help to support the Group’s progressive dividend policy. For 2017, we have increased our dividend target to 6.40 pence per share.

In summary, our market is resilient and we expect 2017 to be another positive and stable year for the Group.”

For further information, please contact:

Tritax Group
Colin Godfrey (Partner, Fund Manager) via Newgate (below)

Newgate Communications (PR Adviser)
James Benjamin
Lydia Thompson

Tel: 020 7680 6550
Email: tritax@newgatecomms.com

Jefferies International Limited
Gary Gould
Stuart Klein

Tel: 020 7029 8000

Akur Limited
Anthony Richardson
Tom Frost
Siobhan Sergeant

Tel: 020 7493 3631

NOTES:
Tritax Big Box REIT plc is the only listed vehicle to give pure exposure to the “Big Box” logistics asset class in the UK and is committed to delivering attractive and sustainable returns for shareholders. Investing in and managing both standing and pre-let forward funded development assets, the Company focuses on well-located, modern “Big Box” logistics assets, typically greater than 500,000 sq ft, let to institutional-grade tenants on long-term leases (typically at least 12 years in length) with upward-only rent reviews and geographic and tenant diversification throughout the UK. The Company seeks to exploit the significant opportunity in this sub-sector of the UK logistics market owing to strong tenant demand and limited stock supply.

The Company is a real estate investment trust to which Part 12 of the UK Corporation Tax Act 2010 applies (“REIT”), is listed on the premium segment of the Official List of the UK Financial Conduct Authority and is a constituent of the FTSE 250, FTSE EPRA/NAREIT and MSCI indices.

Further information on Tritax Big Box REIT is available at www.tritaxbigbox.co.uk

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