LSE:BBOX

Stock Analysis Report

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Executive Summary

Tritax Big Box REIT plc is the only listed vehicle dedicated to investing in very large logistics warehouse assets ("Big Boxes") in the UK and is committed to delivering attractive and sustainable returns for shareholders.


Snowflake Analysis

Reasonable growth potential and slightly overvalued.


Similar Companies

Share Price & News

How has Tritax Big Box REIT's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: BBOX's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

4.4%

BBOX

7.3%

GB REITs

2.0%

GB Market


1 Year Return

-6.3%

BBOX

-14.9%

GB REITs

-12.8%

GB Market

Return vs Industry: BBOX exceeded the UK REITs industry which returned -14.9% over the past year.

Return vs Market: BBOX exceeded the UK Market which returned -12.5% over the past year.


Shareholder returns

BBOXIndustryMarket
7 Day4.4%7.3%2.0%
30 Day16.9%1.1%5.7%
90 Day5.3%-17.6%-8.2%
1 Year-1.7%-6.3%-11.9%-14.9%-8.6%-12.8%
3 Year7.5%-6.3%-10.7%-17.2%-6.2%-17.6%
5 Year50.9%19.4%-2.8%-20.7%12.7%-12.5%

Price Volatility Vs. Market

How volatile is Tritax Big Box REIT's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Tritax Big Box REIT undervalued compared to its fair value and its price relative to the market?

13.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: BBOX (£1.39) is trading below our estimate of fair value (£1.59)

Significantly Below Fair Value: BBOX is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: BBOX is poor value based on its PE Ratio (16.5x) compared to the REITs industry average (14.9x).

PE vs Market: BBOX is poor value based on its PE Ratio (16.5x) compared to the UK market (14.7x).


Price to Earnings Growth Ratio

PEG Ratio: BBOX is good value based on its PEG Ratio (0.5x)


Price to Book Ratio

PB vs Industry: BBOX is overvalued based on its PB Ratio (0.9x) compared to the GB REITs industry average (0.7x).


Next Steps

Future Growth

How is Tritax Big Box REIT forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

31.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BBOX's forecast earnings growth (31.1% per year) is above the savings rate (1.2%).

Earnings vs Market: BBOX's earnings (31.1% per year) are forecast to grow faster than the UK market (20.3% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: BBOX's revenue (8% per year) is forecast to grow faster than the UK market (3.6% per year).

High Growth Revenue: BBOX's revenue (8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if BBOX's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Tritax Big Box REIT performed over the past 5 years?

20.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BBOX has a large one-off gain of £57.0M impacting its December 31 2019 financial results.

Growing Profit Margin: BBOX's current net profit margins (95.1%) are lower than last year .


Past Earnings Growth Analysis

Earnings Trend: BBOX's earnings have grown significantly by 20.5% per year over the past 5 years.

Accelerating Growth: BBOX's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: BBOX had negative earnings growth (-44.1%) over the past year, making it difficult to compare to the REITs industry average (-32.2%).


Return on Equity

High ROE: BBOX's Return on Equity (5.5%) is considered low.


Next Steps

Financial Health

How is Tritax Big Box REIT's financial position?


Financial Position Analysis

Short Term Liabilities: BBOX's short term assets (£47.1M) do not cover its short term liabilities (£130.1M).

Long Term Liabilities: BBOX's short term assets (£47.1M) do not cover its long term liabilities (£1.2B).


Debt to Equity History and Analysis

Debt Level: BBOX's debt to equity ratio (44.8%) is considered high.

Reducing Debt: BBOX's debt to equity ratio has increased from 39.9% to 44.8% over the past 5 years.

Debt Coverage: BBOX's debt is not well covered by operating cash flow (8.1%).

Interest Coverage: BBOX's interest payments on its debt are well covered by EBIT (3.8x coverage).


Balance Sheet


Next Steps

Dividend

What is Tritax Big Box REIT's current dividend yield, its reliability and sustainability?

4.94%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: BBOX's dividend (4.94%) is higher than the bottom 25% of dividend payers in the UK market (2.03%).

High Dividend: BBOX's dividend (4.94%) is low compared to the top 25% of dividend payers in the UK market (5.68%).


Stability and Growth of Payments

Stable Dividend: BBOX has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: BBOX's dividend payments have increased, but the company has only paid a dividend for 6 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (123.8%), BBOX's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: BBOX's dividends in 3 years are forecast to be covered by earnings (94.5% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.2yrs

Average board tenure


CEO

Colin Godfrey

0.17

Tenure

Mr. Colin Godfrey, BSc (Hons), MRICS serves as CEO of Tritax Management LLP since March 2020. He serves as a Partner at Tritax Group. In 2004, Mr. Godfrey became a partner of the Tritax Group and is respon ...


Board Members

NamePositionTenureCompensationOwnership
Richard Jewson
Independent Chairman of Tritax Management LLPno dataUK£120.13k0.0051% £121.1k
Richard Laing
Independent Non-Executive Director of Tritax Management LLP2yrsUK£57.75k0.0027% £63.5k
Aubrey Adams
Senior Independent Non-Executive Director of Tritax Management LLP1.17yrsUK£52.92k0.012% £277.7k
Alastair Hughes
Independent Non-Executive Director of Tritax Management LLP1.17yrsUK£45.83k0.0021% £48.6k
Susanne Given
Independent Non-Executive Director of Tritax Management LLP3.58yrsUK£52.92kno data
Karen Whitworth
Independent Non-Executive Director of Tritax Management LLP0.58yrUK£10.06kno data

1.2yrs

Average Tenure

59.5yo

Average Age

Experienced Board: BBOX's board of directors are not considered experienced ( 1.2 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: BBOX insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Tritax Big Box REIT plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Tritax Big Box REIT plc
  • Ticker: BBOX
  • Exchange: LSE
  • Founded:
  • Industry: Industrial REITs
  • Sector: Real Estate
  • Market Cap: UK£2.369b
  • Shares outstanding: 1.71b
  • Website: https://tritaxbigbox.co.uk

Location

  • Tritax Big Box REIT plc
  • 6 Duke Street
  • 3rd Floor
  • London
  • Greater London
  • SW1Y 6BN
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BBOXLSE (London Stock Exchange)YesOrdinary SharesGBGBPDec 2013
BBOXlBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPDec 2013

Biography

Tritax Big Box REIT plc is the only listed vehicle dedicated to investing in very large logistics warehouse assets ("Big Boxes") in the UK and is committed to delivering attractive and sustainable returns for shareholders. Investing in and actively managing existing built investments, land suitable for Big Box development and developments predominantly delivered through pre-let forward funded basis, the Company focuses on large, well-located, modern Big Box logistics assets, let to institutional-grade tenants on long-term leases (typically at least 12 years in length) with upward-only rent reviews and geographic and tenant diversification throughout the UK. The Company seeks to exploit the significant opportunity in this sub-sector of the UK logistics market owing to strong tenant demand and limited supply of Big Boxes. The Company is a real estate investment trust to which Part 12 of the UK Corporation Tax Act 2010 applies ("REIT"), is listed on the premium segment of the Official List of the UK Financial Conduct Authority and is a constituent of the FTSE 250, FTSE EPRA/NAREIT and MSCI indices. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/05/31 23:48
End of Day Share Price2020/05/29 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.