Tritax EuroBox PLC, a UK-based company focused on European logistics real estate, has sold a multi-unit warehouse in Bochum, Germany for EUR46.8 million. The buyer is an unnamed real estate investment manager. The sale price was slightly below the valuation at March 31. The proceeds from the sale will be used to pay down the company's revolving credit facility as part of its plan to reduce leverage. This sale aligns with Tritax EuroBox's strategy of disposing of assets to fund higher-returning opportunities. The transaction highlights the liquidity of the company's portfolio and the continued investor interest in high-quality logistics assets.
After a tumultuous period of uncertainty, real estate has entered calmer waters. Asset values are stabilising and occupier markets remain supportive of rental growth. Tritax EuroBox (EBOX) is sailing in these waters too, as demonstrated by a valuation that has changed little and a 30% uplift in earnings that now fully covers its 8.6%-yielding dividend. The company is well on the way to achieving its aim of reducing its already low-cost debt to a more conservative level of 40% through the disposals of mature assets from its portfolio (with proceeds now totaling €139m). The manager is confident that even after allowing for the sales, the 2024 dividend will be fully covered by earnings. This is because the portfolio has built-in annual uplifts on current leases and substantial potential from the letting up of vacant/development space. With the macroeconomic environment looking brighter and interest rate cuts slated for this year, the company’s 39.4% discount to net asset value seems an attractive entry point. [6c4a33a6]
In related news, Tritax Eurobox shares rose 3.2% on Friday, reaching a high of GBX 54.40 ($0.69) and last traded at GBX 54.30 ($0.69). Approximately 960,500 shares changed hands during mid-day trading, a decline of 27% from the average daily volume of 1,319,898 shares. The stock had previously closed at GBX 52.60 ($0.66). The stock has a fifty-day simple moving average of GBX 51.88 and a two-hundred day simple moving average of GBX 52.84. The stock has a market cap of £229.54 million, a price-to-earnings ratio of 217.20, and a beta of 0.55. The company has a debt-to-equity ratio of 65.78, a quick ratio of 2.61, and a current ratio of 3.09. The firm recently announced a dividend, which was paid on Thursday, March 14th. Shareholders of record on Thursday, February 22nd were issued a €0.01 ($0.01) dividend. This represents a dividend yield of 2.21%. The ex-dividend date was Thursday, February 22nd. Tritax Eurobox plc invests in and manages a well-diversified portfolio of large, high-quality logistics real estate assets, known as Big Boxes. It seeks to invest in properties fulfilling a key part of the logistics and distribution supply chain for occupiers including retailers, manufacturers, and third-party logistics operators. [a6cbd84d]