With Clipper Logistics plc reporting that it has experienced unprecedented levels of activity in its logistics operations in both the UK and continental Europe over the Black Friday and Christmas periods, I got interested in Tritax Eurobox (Tritax Eurobox (LON:EBOX)), with the thought that it too may also be experiencing a similar increase in demand because "Tritax Group is a market-leading fund manager focused on high-quality European logistics real estate. With over £5bn of assets under management and an experienced team, our business is to identify, assess, structure, finance, deliver and then actively manage logistics property investments."
The Trust focuses on investing in the continental European logistics market. It seeks to build a diversified portfolio of European logistics assets in the supply chain markets. The Trust is managed by Tritax Management LLP.
I have to admit that I have done very little research, but I did invest today, possibly because
- The December news flow stated "Aberdeen Standard Investment to acquire 60% Interest in Leading Logistics Real Estate Manager Tritax"
- Tritax EuroBox (LON:EBOX) share chart shows a ‘symmetrical continuation triangle’ bullish signal with a target of 109-111 medium-term (can't see how to embed a graphic)
- It shows a healthy amount of retained equity in the balance sheet (a good sign I believe).
Hi Turbo
I hold Warehouse Reit (LON:WHR) as my investment in Big Box distribution centers, so been a variable time since purchase but currently 11% up with reinvested dividends, with the holding comprising of two purchases made in July and September 2020.
I did look at two alternatives in this area Tritax Eurobox (LON:EBOX) and Urban Logistics Reit (LON:SHED) before making the initial purchase and the increase (both were ~2% of folio) to take to what for me is a standard holding size within what I would describe as an "Income Pension" all be it held within an ISA.
I personally felt at the time that the valuation, strategy and return were better at Warehouse Reit (LON:WHR) though obviously the question remains on whether using the fundraising to purchase holdings from some of the directors own company is the right thing to do, they seem to be delivering as planned on the utilization of that raise and I am happy to keep holding.
I also was aware from my previously role (tangential) the challenges of getting land allocated and sites for big distribution hubs as demand was outstripping supply, especially for the larger units e.g. 500,000 sq ft. So I figure that there is likely to be some growth in value for companies holding these existing prime sites.
I think that the other question was at the time what the Global Petroleum (LON:GBP)/Euro exchange rate fluctuation over time was going to do with the income, and also that the forecasts have basically been low getting lower, noting that there was a recent downgrade for 2022, which for me is a X on the check sheet as I look for growing and/or upgrades on this.
But interesting idea and exposure to Europe.
Thanks
Tommy
