Last checked at 21 Feb 2024 09:36
Tritax EuroBox - Update from QuotedData
21st February 2024
Calmer waters
After a tumultuous period of interest rate volatility (with the rapid rise in interest rates reflected in investment yields, causing values to fall), real estate has entered calmer waters. Asset values are stabilising and occupier markets remain supportive of rental growth. Tritax EuroBox (EBOX) is sailing in these waters too, as demonstrated by a portfolio valuation that has changed little and a 30% uplift in earnings that now fully covers its 8.6%-yielding dividend.
The company is well on the way to achieving its aim of reducing its already low-cost debt to a more conservative loan to value (LTV) level of 40% through the disposals of mature assets from its portfolio (with proceeds now totalling ?139m). The manager is confident that even after allowing for the sales, the 2024 dividend will be fully covered by earnings. This is because the portfolio has built-in annual uplifts on current leases and substantial reversion potential from the letting up of vacant/development space.
With the macroeconomic environment looking brighter and interest rate cuts slated for this year, the company's 39.4% discount to net asset value (NAV) seems an attractive entry point.
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