Tritax Big Box REIT has posted a 16.6% increase in its portfolio value to £1.53bn, saying outlook for the company remains “favourable” despite a backdrop of political uncertainty.
It recorded the jump in its half-year results to 30 June across its 28-asset portfolio, which comprises 14.5m sq ft of logistics space.
Like-for-like value was up £41.1m – a rise of 2.8%.
The portfolio is 100% let and contracted rental income, including forward-funded developments, increased to £78.6m pa from £68.4m at 31 December 2015.
Tritax’s operating profit stands at £25.7m, up from £15.8m, a rise of 62%. Net asset value per share increased by 4.23p, or 3.4%, to 128.9p.
Tritax has made four acquisitions in the past two months, a prelet forward-funded development in Wolverhampton for £56.3m, a shed in Manchester, let to Kellogg’s, for £23.5m, and a property in Peterborough let to Amazon for £42.9m.
After the half-year period the Helaba loan facility, secured on an asset let to Ocado, was extended by three years, until 2023.
It has also agreed a new £72m, 13-year loan with Canada Life at a fixed rate of 2.64%.
Chairman Richard Jewson said: “UK retail continues to evolve, with e-commerce growth leading the way. Many of our properties have an e-retail focus and/or automation, aiding home deliveries or store replenishment.
“Our aim is to invest in modern, best-in-class properties that are mission-critical to the tenants that operate from them. This also ensures that our portfolio is defensive whilst offering the strongest potential for value growth.
“Occupational demand continues to outweigh the supply of quality logistics buildings in the UK but this situation is even more acutely favourable for big boxes. The resultant strong rental growth is expected to continue, helping to grow our income and support our progressive dividend policy.”
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