Tritax EuroBox - Update research from QuotedData
21st November 2022
Opportunity knocks
The share prices of many logistics-focused real estate investment trusts (REITs), including Tritax EuroBox (EBOX), have been hit as interest rates have risen and the investment market has cooled. Inevitably, valuations in the low-yielding logistics property sector will fall (and property yields rise) as the higher cost of debt chokes off investment.
However, the occupier market is still a landlord's market, with record low supply and robust demand putting owners in an advantageous position, meaning rental growth is very much in the picture. This will have an offsetting effect on softening (rising) property yields. EBOX has announced a number of leasing deals at significant uplifts to previous rents and with superior terms, such as annual uncapped inflation-linked uplifts.
The market sell-off of logistics-focused companies has seen EBOX's share price fall to a 49.3% discount to net asset value (NAV). This is staggering, given that the fundamental characteristics in the European logistics market are still favourable.
Full research:
https://quoteddata.com/research/tritax-eurobox-opportunity-knocks-qd/
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