A fall in values has caused Tritax EuroBox’s earnings per share to crash by 300%.
The portfolio of European warehouse assets declined in value by 9.6% over the first six months of the financial year, from €1.765bn (£1.52bn) to just under €1.6bn.
Basic IFRS earnings per share were negative 27.2 cents, down from 13.35 cents for the first half of 2022.
Chair Robert Orr said: “As we anticipated, the value of our assets declined significantly during the period in response to the more uncertain macroeconomic environment and rapid increase in interest rates. However, we remain confident that the quality of our portfolio, strength of our customer base and our ability to maintain a robust balance sheet, will allow the company to navigate these more challenging market conditions.”
He added that the priorities outlined in December, to lower costs and deliver income growth and so protect the dividend, had paid off.
Echoing comments made by other REITs recently, Orr pointed to the strength of the occupational market, despite the falling capital values. “The occupational market continues to be characterised by attractive demand-and-supply dynamics, reinforcing our belief in the long-term structural drivers and compelling market opportunities in the logistics sector.”
The decline in valuation resulted in a negative total return of 22.1%, against the last full-year figure of 6%, while NTA declined to €1.05 from €1.38.
Tritax EuroBox saw an 18.1% increase in rental income over the period, from €27.6m in 2022 to €32.6m. Adjusted earnings per share also leapt 48.4% to 2.7 cents.
The dividend of 2.5 cents per share was 108% covered by Adjusted EPS for the half year, meaning the dividend has now been covered for three consecutive quarters.
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