Hold Rating on Tritax Big Box REIT Amid Market Challenges and Strategic Adjustments

Analyst Denese Newton of Stifel Nicolaus maintained a Hold rating on Tritax Big Box REIT (BBOX – Research Report), retaining the price target of p145.00.

Denese Newton has given his Hold rating due to a combination of factors impacting Tritax Big Box REIT. Despite the company’s efforts to dispose of non-core assets and the completion of significant disposals, the broader logistics sector faces challenges such as rising vacancies and declining net absorption. Tritax Big Box has managed to achieve like-for-like rental growth and maintain stable yields, but the overall market conditions continue to exert pressure on the stock.
Moreover, while the company’s shares have seen some positive movement following strategic acquisitions and disposals, they are still trading at a notable discount to their net tangible assets. This discount reflects ongoing concerns about business confidence and market absorption rates. The company’s financial performance, including adjusted EPS slightly below forecasts, and a conservative balance sheet with a low loan-to-value ratio, supports the Hold rating as it indicates stability but not enough momentum for a more aggressive rating.