Tritax has reported a 3.46% increase in NAV in its full-year results for 2016.
The company posted a NAV of 129 pence per share for the period from 1 January to 31 December 2016.
Its portfolio is now valued at £1.9bn, including all forward-funded commitments.
Tritax acquired 10 big boxes during the year, spending £524.4m, and at the year-end the portfolio comprised 35 assets, covering more than 18.2m sq ft of logistics space.
Four forward-funded prelet developments reached practical completion in the year, with a total valuation of £272.8m at 31 December 2016.
The portfolio was fully prelet and income producing during the year, and its contracted annual rent roll increased to £99.7m from £68.4m last year.
Tritax secured a new £72m long-term, fixed-rate facility with Canada Life, bringing its loan-to-value as at 31 December 2016 to 30%.
Richard Jewson, chairman of Tritax, said: “The outlook for the group remains positive. We are in a strong financial position and see further opportunities to acquire high-quality standing assets and to forward fund prelet developments.
“We consider there to be limited potential for capital growth through further yield compression and while more challenging, we have maintained a 9% pa total return target.
“Capital growth is therefore likely to come from steady-state capitalisation rates being applied to growing income. We believe that income will remain the most important component of total return over the next 12 months.
“There are strong drivers to rental growth in the market, both due to the ongoing imbalance between occupational supply and demand and the increase in build costs in 2016, which we expect will feed through to rents. This rental growth will help to support the group’s progressive dividend policy. For 2017, we have increased our dividend target to 6.40 pence per share.
“In summary, our market is resilient and we expect 2017 to be another positive and stable year for the group.”
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