strapuk
10 May 2017
Re: Bought in today Apologies, I thought the open offer was 136p for anyone subscribing for the new shares. I have applied for the 1 for 11 and the Open Offer, both at 136p, so happy to see Bid price up at 142.5p!
coldingham
10 May 2017
Re: Bought in today Price of 136 was for all who applied. Existing holders got guaranteed 1 for 11 already held. Others were subject to scaling back if offer oversubscribed as were existing holders who applied for more than 1 for 11
jarfurrank
10 May 2017
Re: Bought in today Strapuk - I think that price was only for existing holders
strapuk
10 May 2017
Re: Bought in today Hope you bought them in the Open Offer at 136p Closes today I think?
casabanker
10 May 2017
Bought in today I'm finding that REITS, infrastructure, growth and income funds are providing more stability than many individual companies. Selection is still a key requirement but the good ones provide income and on occasions, generous growth. I'm feeling confident that BBOX will fit into this description very well.Casa,
casabanker
05 May 2017
Warehousing I have just seen BBOX flagged as a fast growing REIT. I don't own any shares in BBOX yet but I have recently bought SGRO which owns a lot of warehousing around Heathrow. Apparently the right sort of warehousing is in short supply. Much is needed for the retail industry to satisfy, for one thing, online ordering. The use of drones is likely to "take off" in due course so warehousing situated near to cities and areas of high density population will be required. I'm not sure about drones but one thing for certain is the need for speedy deliveries costing the customer less and less. Tritax looks to be in a sweet spot to me.Casa.
jake_walker
29 Apr 2017
Re: Latest share issue "The Placing and Offer for Subscription are subject to scaling back at the discretion of the Directors. The Open Offer is not subject to scaling back in favour of the Placing or the Offer for Subscription."It would appear it makes no odds although you are guaranteed your entitlement.
PhilipJD
28 Apr 2017
Re: Latest share issue For existing shareholders, we can subscribe for additional shares via 'Excess Application Facility' or via 'Offer for Subscription'.Any views as to which is the better way to go?
Blanketstacker
26 Apr 2017
Re: Latest share issue For what my tuppence is worth, Eadwig and jonwig1 have hit the nails on the head here. Big boxes are just that: big boxes. They are easily built, with level flooring, a steel cage and a stack of cladding. Their cost is in acquiring the land, and the internal fittings. The latter tend to be customer specific, which is why they tend to be let on longer leases than many other buildings. Maintenance costs are likely to be low, as it is cheaper to tip them and start again. Sub-division is also an option, though it is rarely commercially attractive and is generally a last resort. Essentially we are talking 'throw away' buildings. NAV is therefore very deceiving here, as most of the stock is in truth worth only the value of the land on which the buildings stand once the tenant departs.Having said that, what we have here is a relatively conservatively run business, with experienced management and a very attractive yield. I hold a very few and have put in for some more. It still seems quite attractive to me.
jonwig1
25 Apr 2017
Re: Latest share issue Eadwig - a preceptive analysis there, thanks! I think I'd add that valuations are decided on by cost of land plus discounted (and inflation-adjusted) cashflows over useful life less depreciation. They're also pretty cheap to build: less inner walling, less plumbing, electrics, etc.I think in the future the land can in fact be reclaimed for housing. When driving on the continent I'm surprised at the density of housing close to motorways They seem to be able to erect screens between the estates and the carraigeways which block noise.
Davey Baby
25 Apr 2017
Re: Short changed? The PID in my A J Bell SIPP was paid gross (brokers can usually request gross payments from companies that pay PIDs). You could ask ii to apply to have your future PIDs to be paid gross. From the Tritax website:The PID element of the Dividend will be paid net of 20% withholding tax (unless a shareholder is eligible for payment of a dividend gross and completes either a INTERMEDIARY – DECLARATION OF ELIGIBILITY FOR GROSS PID PAYMENTS FROM TRITAX BIG BOX REIT PLC or a BENEFICIAL OWNER DECLARATION OF ELIGIBILITY FOR GROSS PID PAYMENTS FROM TRITAX BIG BOX REIT PLC and sends it to our registrars Capita Asset Services.[link]
TX2
25 Apr 2017
Re: Latest share issue I think it is fair comment Eadwig that NAV is at best only a guide to present value based on recent sales and particularly with specialist property like "Big Boxes" could rapidly change due to supply and demand for this type of property.It does not obviously have an alternative use as you wisely point out.We have seen valuations of out of town shopping centres starting to slip;these were once "flavour of the month" and thought invincible but the move to online shopping has changed their prospects as it has retail property generally in quite a short time frame.Low interest rates have also flattered the valuation of property;a 6% gross return on a "Big Box" seems quite attractive making perhaps a 4.5% divi when you can only get 1% at the bank;but if interest rates increase and we can get the same return at the bank it seems less attractive.Particularly if the property company has to pay a higher rate on their borrowings which eats into their rental income,and we have to be mindful of the borrowing multiplier on net assets if property values fall.In fairness I have made a reasonable paper return here (I have reinvested the divis including the present one in three open offers) but I admit I am rather over exposed to property,albeit spread over a wide range of classes of property.
Eadwig
25 Apr 2017
Re: Latest share issue TX2 et al.I'm a bit unsure about the NAV in this type of REIT. Commercial properties like this generally decline in value over time, unlike housing, but I assume that is built into the rental prices. I would imagine such properties don't have a life expectancy much beyond 25 years and maintenance costs will increase over the years, and one or two major refurbishments may be required. Again, I assume that's built into the lease and rental agreement, but I must admit in my hurry to diversify into different types of property REIT, I haven't looked into it as closely as I should have.The land should appreciate over time, ... but that will also depend on location for such a property and will be affected by population distribution and infrastructure which tend to dictate decisions on the placing of distribution depots etc. There is also the chance of getting a different type of planning permission on the land in future to take into consideration. When the building has outlived its usefulness, if it is no longer a suitable location for the same type of use, how likely is it that it can be used for some other type of use? Being placed alongside motorways or rail freight lines or whatever, the land may not be obviously suitable for many other types of use, such as housing, for example, which would usually be the most valuable use.In other words, where is the 'capital appreciation' coming from which Tritax intend will enhance shareholder returns when combined with increasing rental income?When you're looking 15-25 years down the line, there are many things that can change which might make current buildings unsuitable; possibly technological changes that we can't even really imagine right now. Ordering items online which are then '3D printed' very locally could leap frog this type of distribution centre for some products, just as a fairly wild, but not impossible, example (consider some modular buildings are now being '3D printed' on site, E.g. One 3000 square foot house being completed in a day by such methods right now in the USA). I really wouldn't rule out any changes when you're looking at 'getting rich slowly' over a decade or two, especially as technology is increasingly important within distribution centres and the whole supply chain generally.I wonder if anyone knows just how much of the above is as valid as I think it is, if the company has plans to deal with such things and whether or not such things to do with land are fully reflected in the valuation when calculating the NAV?The web site says this about Strategic Location : "Traditionally, the ‘Golden Triangle’ in the Midlands has been regarded as a prime logistics location as it offers tenants access to 85% of the UK market in 4.5hrs driving time.Big Boxes are strategically located in areas with strong transport connections, Access to major roads or motorway junctions is a must, but alternative transportation routes via airports, sea ports or rail are increasingly important for efficient goods inwards stocking and downstream distribution. [See what I mean about not being obviously placed land for use as housing, or even retail uses, should the site become less than optimal in its location in the future - Eadwig]Increasingly, of equal importance to occupiers are locations that are close to large employment pools, ensuring their ability source suitably qualified employees in sufficient numbers from an area immediately surrounding a site." [Amazon have a stated goal of moving from 1000 employees per centre to 100 in the next generation to 10 in the following generation - Eadwig].And about building specs: "Big Boxes are a relatively new phenomenon. This large-scale format did not exist in the UK before the early 1990s, therefore most high-quality Big Boxes are modern facilities constructed within the past 15 years.Big Boxes have evolved into technologically advanced buildings. The specification will usually include ground floor
strapuk
24 Apr 2017
Re: Short changed? Finally got to the bottom of this, although no thanks to II.The dividend paid on 04/04/17 was made up of 2 parts.1.45p of the 1.55p declared dividend was a standard UK dividend, and so was paid with no tax deducted.0.1p of the 1.55p was a "Property Income Distribution" or PID. These are paid net of 20% tax, which as we hold in an ISA II claim back from HMRC. This takes II about 8w to credit to your account, but you should get it back eventually. Quite how HL manage to pay the full published dividend up front on the due date is a bit of a mystery!The dividend declared today of 1.6p is all PID, so we will only receive 1.28p on the due date, with II reclaiming the 20% tax of 0.32p and crediting to your account c.8w after the due date.Phew, glad I worked that out. Keep your eyes peeled on your account though to make sure you do eventually get the tax back!Just FYI, I will be taking up the 1 for 11 offer and wil also apply for the same amount via the open offer. As HL says, this is a "get rich slowly" share, and as my yield on cost is over 5%, I am happy to keep adding as these offers come along.
TX2
24 Apr 2017
Re: Latest share issue I felt the recent share price was a bit toppy when compared to the last published NAV of I think around 126p;while a small premium to NAV may be justified it rather looks as if £1.36 was about as high as they could get the new issue away.I will probably be taking up my basic one for eleven entitlement a fair proportion being covered by the last years dividends.The shares are in my opinion pretty fully valued at the offer price but so is much else.....
