LONDON (Alliance News) - Tritax Big Box REIT PLC Thursday said it has performed strongly since its initial public offering in December, and it is now targeting a dividend of 2.3 pence per share for the second half of 2014.
Tritax, which raised gross proceeds of GBP200 million following its IPO, invests in "Big Box" assets which it typically lets to institutional-grade tenants. “Big Box” assets are large commercial properties which, when let, tend to command at least GBP35 million.
The company reported pretax profit of GBP7.6 million for the period November 1 to June 30, and gross rental income of GBP5.7 million.
Tritax said its net asset value per share increased from 98.0 pence at the time of its IPO to 101.85 pence at June 30.
On July 8, the company declared its first interim dividend of 1.85 pence per share, which was paid a month later, representing 100% of distributable profits for the period. This dividend was a property income distribution in respect of the group's tax-exempt property rental business.
The company said it is currently targeting a dividend of at least 2.3 pence per share for the six months ending December 31.
At June 30, the group's portfolio consisted of six assets let to retailers including Tesco PLC and Marks & Spencer Group PLC. These acquisitions were funded from the proceeds of the IPO, a follow on equity fundraising of approximately GBP20.8 million which completed in June and the drawdown of senior debt facilities of approximately GBP155.2 million provided by Barclays Bank PLC.
The portfolio had a market value of GBP360.7 million at the end of June.
The company's investment manager, Tritax Management LLP, identified a further strong pipeline of assets and in July it completed an additional issue of shares, raising gross proceeds of GBP150 million through an oversubscribed placing, open offer and offer for subscription.
Financially, Tritax said it had a loan-to-value ratio of 43% at the period-end.
The stock was quoted down 0.1% at 107.13 pence Thursday morning.