(Alliance News) - Tritax Big Box REIT PLC on Thursday said it expects to collect all first quarter rent, with most already paid.
The London-headquartered real estate investment trust expects 100% of rent for the three months ended March 31 to be collected by that date, with 93% paid to so far and the remaining 7% scheduled for monthly collection over the rest of the quarter.
Tritax Big Box also said it had received 99% of rent for the fourth quarter of 2020, taking the annual rent collection for that year to 99% with the remaining approximately 1% " subject to deferral arrangements which we expect to be recovered by mid-2021."
The company, which invest in very large logistics warehouse assets in the UK, said it has not agreed any rent-free periods or rent reductions across its portfolio.
On January 14, the company announced that 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.
Tritax Big Box consequently expected to post a material increase in its EPRA net tangible assets per share compared to the June 30 figure of 154.85 pence per share, exceeding the top end of analyst estimates at that time for a December 31 EPRA NTA of between 152p and 166p.
On Thursday, Tritax Big Box said: "This increase in value has been driven by the strength of the market, the quality of the portfolio and the positive impact of our active management and development activities as assets transitioned from development to the investment portfolio."
During the final quarter of 2020, all speculatively built units within the Tritax Symmetry were fully let after a letting to Ocado Group PLC in December. Lettings across the Tritax Symmetry portfolio added GBP4.6 million to contracted rent toll in 2020.
In response to positive progress since buying Tritax Symmetry, Tritax Big Box has altered the development management agreement between Tritax Symmetry and DB Symmetry Management Ltd, including introducing a bonus scheme for Tritax Symmetry employees.
Colin Godfrey, chief executive of manager Tritax Management LLP, said: "Across the business our strategy is delivering value, from our strong and resilient portfolio, effective asset management and accelerating progress on development. The significant uplift in our portfolio valuation was driven by both the strength of the market and the value we are creating through active asset management and controlled development activity.
"Constrained supply is being outstripped by strong occupational demand for logistics real estate, particularly for Big Boxes. We are benefitting from excellent customer relationships, a large and high-quality landbank and strong balance sheet, which together ensure that we are well placed to capture this opportunity and deliver sustainable value growth for our shareholders and wider stakeholders."
The company will publish its 2020 annual result on March 10.
Shares in Tritax Big Box were down 1.0% at 180.90 pence in London on Thursday morning.
By Anna Farley; annafarley@alliancenews.com
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