Tritax Big Box H1 operating profits surge, EPS contracts

Real estate investment trust Tritax Big Box said on Thursday that operating profits had grown in the six months ended 30 June but earnings per share had contracted.

Operating profits were up 24.7% at £70.6m as the firm's portfolio value increased 6.1% to £4.18bn and its contracted annual rent roll grew 7.4% to £178.9m.

However, adjusted earnings per shares were down 4.4% year-on-year at 3.26p and the group also cut its dividend pay-out 8.8% per share to 3.12p as successful development activity during the period was partly offset by anticipated disposals in final documentation stages.

Tritax, which highlighted an "attractive pipeline of development and investment opportunities" to redeploy capital, also stated that its loan-to-value ratio had increased 1.4 points to 31.8% during the period, in line with its stated target of 30-35%

Chairman Richard Jewson said: "Covid-19 created a challenging backdrop, but our company has performed well during the first half of the year delivering high levels of rent collection, stable earnings and an increase in portfolio value and rents driven by effective asset management and development activity.

"We will continue to monitor closely the likely long-term impact from Covid-19, with a view to potentially increasing the dividend on a progressive basis over time when we believe there is a sufficient level of economic visibility, financial headroom, and it is in our shareholders' interest."

As of 0850 BST, Tritax shares were down 0.64% at 155.50p.