Bitcoin price today: dips below $112k, near 6-wk low despite Fed cut bets
Investing.com -- Shares of Tritax Big Box REIT PLC (LON:BBOX) saw a modest increase of 0.6% following the release of its FY24 Interim Management Statement (IMS) ahead of the full results due on February 28. The company reported significant growth in rental income and unveiled robust development activity, suggesting a positive outlook for the upcoming fiscal year.
The IMS highlighted an increase in rent to £11.6 million for FY24, up from £4.9 million in the previous year. This rise was attributed to rent reviews, which resulted in an 11.7% uplift, and asset management initiatives that achieved rents 15.9% higher than previous levels.
Like-for-like Estimated Rental Value (ERV) grew by 5.4%, indicating strong underlying growth. The company also noted that 26% of embedded growth remains to be realized from current rents, with a low vacancy rate of 3.3% and a weighted average unexpired lease term (WAULT) of 10.3 years, down slightly from 11.4 years.
Developments have secured £11.1 million of rent for FY24, compared to £7.8 million in FY23, including a significant 1 million square foot prelet and 1.9 million square feet of development starts. Of these, 79% are considered de-risked through lettings or sales, aligning with the targeted 7% yield on cost. Pre-sold developments are expected to contribute an additional £23 million in Development Management Agreement (DMA) fees.
In a strategic move, Tritax Big Box has launched a power-led data center (DC) initiative, with its first 147 MW development offering up to 1 GW potential. The initiative is projected to yield 9.3% on cost, which compares favorably against investment yields of 5-5.5%, signaling potential profitability in this new venture.
Portfolio sales amounted to £306 million, including £125 million from Big Box assets sold at 3.3% above book value and £181 million from UK Commercial Property REIT assets at 2.8% above book value, exceeding initial guidance. With £150 million under offer, the company has effectively optimized its loan-to-value (LTV) ratio at 29%, with a cost of debt (kd) at 3.9%, 93% of which is fixed with an average term of 4.5 years. The firm also reported robust liquidity of £0.5 billion.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.