(Alliance News) - Tritax Big Box REIT PLC on Thursday said its portfolio valuation at the end of 2020 is expected to exceed the top end of current analyst estimates given the strong logistics real estate market and other factors.
Shares in Tritax Big Box were up 5.1% at 176.90 pence in London in morning trading.
An independent valuation of the real estate investment trust's investment and development assets portfolio has indicated an 8% like-for-like increase in value as at December 31, compared to June 30.
Consequently, Tritax Big Box expects to post a material increase in its EPRA net tangible assets per share compared to the June 30 figure of 154.p per share, exceeding the top end of analyst estimates for a December 31 EPRA NTA of between 152p and 166p.
Tritax Big Box attributed this rise to: "The strength of the logistics real estate market, our active development and asset management activity, alongside the high-quality nature of our portfolio as demonstrated through consistently high levels of rent collection."
The company highlighted that the second half of 2020 brought a significant rise in the value of larger scale, prime, UK logistics real estate assets let on long leases to "high calibre occupiers". Supply of such prime assets is still constrained and demand is still strengthening.
In combination with a "buoyant investment market" these factors have caused tighter pricing in transactions and increased valuations for prime assets, both in the broader market and within Tritax Big Box's own portfolio.
The company will publish a fourth quarter trading update on January 28.
By Anna Farley; annafarley@alliancenews.com
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Tritax Big Box (BBOX)