Investor demand has helped Tritax Big Box REIT’s portfolio value climb by 202.8% in the first six months of the year.
The sheds specialist has seen demand from retailers and investors drive down yields in the sector over the six months to the end of June, according to a statement in its half-year results.
This has helped to push the net asset value of the company up by 14.8% to 117p, and its portfolio value up from £360m to nearly £1.1bn.
The increase in valuations was helped by an acquisition programme that added eight boxes to the portfolio, including three forward-funded and prelet assets. In total, the REIT now has a portfolio of 22 assets.
Contracted rent rolls increased by 182.5% when the forward-funded assets were included. Rental income on the fully let or prelet portfolio is £58.9m.
The combination of strong rental income and valuation increases helped to increase the operating profit in the company from £8.2m to £73.79m year-on-year.
This will supply a half-year dividend of 3p and puts the company on target for its 6p dividend at year-end.
Since the year-end, the company has added to the debt in the company with a £50.7m five-year loan from Helaba to forward-fund a shed in Erith, which is prelet to Ocado.
Richard Jewson, chairman of Tritax Big Box REIT, said: “Our investment manager continues to identify and negotiate good opportunities to buy assets and create capital value enhancement for our shareholders, both at the point of purchase and through a variety of asset management initiatives. We will continue to build an increasingly diversified and high-quality portfolio, as we deploy the equity and debt financing raised during the period.”
