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Tritax EuroBox PLC on Tuesday said it put in a ‘strong’ financial performance in the first half of its financial year, as it signed new leases on two assets worth of €1.3 million.
Tritax EuroBox is a London-based investor in logistics property across continental Europe.
For the six-month period that ended on March 31, pretax profit was €109.2 million, more than doubled from €41.2 million in the same period last year. Rental income was €27.6 million, up 42% from €19.4 million.
The company's half year total return was 12.4%, improved from 2.3% a year earlier and ahead of its 9% annual target.
Tritax EuroBox Chair Robert Orr said: ‘The strong financial performance we announce today is evidence of the resilient foundations of our business. We continue to build a portfolio of high-quality buildings in key European markets let to institutional-grade occupiers on long-dated and inflation-linked leases. This foundation underpins our ability to capture attractive and sustainable levels of rental growth by our strategy.’
The company noted that it remains confident in the outlook for the business despite the ongoing pandemic and high inflation.
The company secured a seven-year lease to a German third party logistics provider in Hammersbach, Germany. Tritax EuroBox also let a newly constructed building to an online grocery retailer Bornem, Belgium on a nine-year lease.
Fund Manager Nick Preston said: ‘These leases demonstrate the successful implementation of our strategy, delivering attractive levels of rental growth to our shareholders through a combination of asset management and development activity. Our proactivity complements the attractive long-term and inflation linked income generating characteristics of our portfolio. In addition, these leases provide further evidence of the accelerating levels of rental growth within key European logistics locations.’
Tritax EuroBox declared two dividends totalling 2.5 cents per share in the six-month period, unchanged from last year.
Tritax EuroBox shares were down 3.3% at 93.90 pence each on Tuesday morning in London.
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