Economy, online retail underpin Tritax Big Box performance
A strong economy, and stronger growth in online retailing were underpinning optimism at Tritax Big Box this week.
The FTSE 250-listed real estate investment trust updated the market on its investment activity, portfolio performance and market conditions on Thursday morning.
It revealed it had invested £1.26bn in 25 big box assets - net of acquisition costs - and had let these to 21 tenants. 20 of these investments were standing assets, and five were pre-let developments.
The company made 11 new investments in 2015.
Tritax Big Box said its portfolio remained 100% let, with a contracted annual rental income of £68.2m as of December 16, 2015.
"2015 had been another significant year of development for the company with 11 new investments creating an increasingly diversified and high quality portfolio, a new five year £500m debt facility secured on attractive terms and offering substantial operational flexibility, and strong share price performance underpinned by the long term, income-focused nature of the company's real estate assets" said Tritax partner Colin Godfrey.
The company said the strong economic outlook for the UK was driving one of the greatest warehouse space requirements in Europe, with internet sales expected to represent 19% of total retail sales by 2019.
"As we look forward to 2016, we believe the imbalance between supply and demand of big box assets is a theme which will continue to dominate the logistics sector driving further market rental growth", Godfrey added.