RBC initiates Tritax EuroBox with 'outperform' rating
Tritax Eurobox (GBP)
50.20p
08:19 25/04/24
Tritax EuroBox's discount to its assets is unjustified relative to its peers' large premiums, Royal Bank of Canada said as it initiated coverage with an 'outperform' rating.
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"EuroBox offers high rent visibility from its inflation-linked leases on large well-located European logistics property while asset management initiatives should help supplement rent growth," RBC analyst Saravana Bala wrote in a note to clients.
Leveraged investment into the warehouse operator's €550m (£473m) pipeline, lower cost of debt and a declining cost ratio mean EuroBox should generate a 13% underlying earnings per share compound annual growth rate (CAGR) over three years, Bala said. Development activity and further yield compression will help drive a 9% CAGR in net asset value over three years, he added.
Bala set a price target of 130p for EuroBox's shares. The shares rose 1.1% to 109p at 13:57 BST.