Discussion
This company popped up in a discussion about investing. I'd never heard of them but apparently they lease warehousing to Amazon, amongst others. It's marked as a 'strong buy' but I'd be interested in more opinions. Does anyone here hold shares or know more about them?
https://www.tritaxbigbox.co.uk/
https://www.tritaxbigbox.co.uk/
I'll bite, who is marking it as a strong buy?
Significant drop into summer 2023, potential flurry for Christmas with a murky future for retail into the new year.
I'm quite boring with regards to investments however with it carrying a hefty 0.98% TER and potentially gated its a bit much for me.
Significant drop into summer 2023, potential flurry for Christmas with a murky future for retail into the new year.
I'm quite boring with regards to investments however with it carrying a hefty 0.98% TER and potentially gated its a bit much for me.
donaircooleone said:
I'll bite, who is marking it as a strong buy?
Significant drop into summer 2023, potential flurry for Christmas with a murky future for retail into the new year.
I'm quite boring with regards to investments however with it carrying a hefty 0.98% TER and potentially gated its a bit much for me.
REITs are closed-end, so there's no possibility of gating.Significant drop into summer 2023, potential flurry for Christmas with a murky future for retail into the new year.
I'm quite boring with regards to investments however with it carrying a hefty 0.98% TER and potentially gated its a bit much for me.
hstewie said:
BBOX is a REIT, which means it's closed-end i.e. it has a fixed amount of investor capital, and shares traded on exchange whose price is independent of the NAV of the underlying assets. That's distinct from an open-ended fund (OEIC or unit trust, often used interchangeably though technically they're different things) where investors can create or redeem as many units as they like, and the fund's investable capital grows or shrinks accordingly.
Gating, which applies only to open-ended funds, is when the fund temporarily suspends investors' ability to redeem units because lots of them are rushing for the exit, and there's a mismatch between the liquidity offered to them (often daily) and the liquidity of the underlying assets (e.g. commercial property which may take months to sell at a reasonable price).
The reply I originally quoted suggested the potential for gating, and I was just clarifying that's not the case for BBOX because it's not an open-ended fund. If you're going to invest in a REIT or any investment trust it's a key distinction to understand, as it gives rise to the potential for the shares to trade at a discount/premium to the underlying assets.
Gating, which applies only to open-ended funds, is when the fund temporarily suspends investors' ability to redeem units because lots of them are rushing for the exit, and there's a mismatch between the liquidity offered to them (often daily) and the liquidity of the underlying assets (e.g. commercial property which may take months to sell at a reasonable price).
The reply I originally quoted suggested the potential for gating, and I was just clarifying that's not the case for BBOX because it's not an open-ended fund. If you're going to invest in a REIT or any investment trust it's a key distinction to understand, as it gives rise to the potential for the shares to trade at a discount/premium to the underlying assets.
Thanks - all good stuff. Gating must have been what knackered the Aviva fund; it was just shut without warning and we got about 75% back over the next year.
However I had the idea that Tritax Bigbox was a company that owned warehousing. From the above it seems to be just an investment vehicle, ie a bunch of venture capitalists - is that right? If I'm investing in a fund, what's in the fund...?
However I had the idea that Tritax Bigbox was a company that owned warehousing. From the above it seems to be just an investment vehicle, ie a bunch of venture capitalists - is that right? If I'm investing in a fund, what's in the fund...?
Simpo Two said:
Thanks - all good stuff. Gating must have been what knackered the Aviva fund; it was just shut without warning and we got about 75% back over the next year.
However I had the idea that Tritax Bigbox was a company that owned warehousing. From the above it seems to be just an investment vehicle, ie a bunch of venture capitalists - is that right? If I'm investing in a fund, what's in the fund...?
It's both a listed company and an investment vehicle. It uses shareholder capital to buy and operate property assets (warehouses in this case) that generate a tax exempt income which it then distributes back to its shareholders. It's constrained by legislation to ensure that it carries out its remit, i.e. that most of its assets are in the form of property and most of its income is from rents and gets paid out in divis.However I had the idea that Tritax Bigbox was a company that owned warehousing. From the above it seems to be just an investment vehicle, ie a bunch of venture capitalists - is that right? If I'm investing in a fund, what's in the fund...?
Simpo Two said:
This company popped up in a discussion about investing. I'd never heard of them but apparently they lease warehousing to Amazon, amongst others. It's marked as a 'strong buy' but I'd be interested in more opinions. Does anyone here hold shares or know more about them?
https://www.tritaxbigbox.co.uk/
You’ve missed the boat, time to invest was 2019. Yields have moved out post June 2022, land values have halved and rental growth has slowed significantly as occupiers such as Amazon have slowed expansion. https://www.tritaxbigbox.co.uk/
The big box market has seen huge growth and super profits over the last 5 years. As long as there isn’t too much development then the market will flatten out over the next 12 months.
Of course, I could be completely wrong and the weight of money held by institutional investors floods the market in Q2 2024 and yields sharpen again.
I tend to agree; having digested the info kindly passed on by fellow PHers I'm not planning to invest. One reason is that I can get 5% for very little risk as opposed to 4% for quite a lot of risk. It's easy just to pick out the word 'Amazon' and think you'll be part of the gravy train, when as usual the clever folk a few levels up are taking most of what there is.
Simpo Two said:
I tend to agree; having digested the info kindly passed on by fellow PHers I'm not planning to invest. One reason is that I can get 5% for very little risk as opposed to 4% for quite a lot of risk. It's easy just to pick out the word 'Amazon' and think you'll be part of the gravy train, when as usual the clever folk a few levels up are taking most of what there is.
I agree that the 4% yield can be bettered but I don’t see a huge risk. As I said earlier I’ve had them in my portfolio for some years now.Simpo Two said:
I tend to agree; having digested the info kindly passed on by fellow PHers I'm not planning to invest. One reason is that I can get 5% for very little risk as opposed to 4% for quite a lot of risk. It's easy just to pick out the word 'Amazon' and think you'll be part of the gravy train, when as usual the clever folk a few levels up are taking most of what there is.
Completely agree with the observation that people may decide to invest because of a well-known tenant. Do people really think Amazon will overpay for storage space?Gassing Station | Finance | Top of Page | What's New | My Stuff