FTSE250 beneficiary Tritax EuroBox (LSE: EBOX) is one of the stocks I plan to buy as soon as I have some cash to invest.

I believe that helping me grow my wealth through dividends and capital growth would be a no-brainer!

This is why.

Could interest rate cuts cause share prices to soar?

Tritax is established as a real estate investment trust (REIT). This simply means that it is a real estate company that must return 90% of its profits to shareholders in exchange for tax breaks and other benefits. This type of shareholder return policy is an attractive feature that attracts me.

Please note that tax treatment depends on each client’s individual situation and may change in the future. The content of this article is for informational purposes only. It is not intended to be and does not constitute any form of tax advice.

Higher interest rates have caused the value of many companies, such as Tritax, to decline as property values ​​decline and borrowing costs boost. Given that the potential for interest rate cuts is more realistic now than it has been in recent months, I think shares could move higher soon.

The shares have fallen 3% in 12 months and are currently trading at 57p, down from 59p last year. But I think that’s where the value lies. That’s why I want to buy some shares before the price potentially increases.

Risk versus reward

Tritax’s dividend yield of over 7% is very attractive. Moreover, it is significantly higher than the FTSE 250 average of nearly 2%. However, I understand that dividends are never guaranteed.

Given Tritax’s valuation, I think the stock looks decent in terms of value for money. Currently, their price-to-earnings ratio is close to 13.

Then, in recent years, the demand for logistics and warehouse space has increased rapidly, especially in the UK. This is mainly related to the e-commerce boom and changing shopping habits. I know I tend to buy a lot online than I used to when I frequented my high street. Looks like I’m not alone.

Companies need warehouse space to meet this demand and that’s where Tritax comes into play. The beauty of Tritax is that Europe seems to lag behind in providing surfaces of this quality. This means that the REIT can count on growth.

The biggest problem Tritax faces, in my opinion, is its ongoing economic woes. To be clear, there is no guarantee that interest rates will be lowered. Moreover, even if it does happen, there is no telling when it will happen or by how much.

Due to this, Tritax may continue to face challenges such as confined growth opportunities due to higher borrowing costs. Additionally, ongoing turmoil may harm existing leases. Overall, performance and profits may suffer in this case. I will be watching closely.

Fortune favors the brave

Even though Tritax’s fate is tied to economics, the reward far outweighs the risk. Being overly cautious could mean missing out on a great opportunity. However, I would be remiss if I didn’t take the pitfalls into account.

A huge part of Tritax’s potential for further growth is the changing face of shopping, as well as the underpenetrated European market space. With a decent set of basics, I think there’s more than enough meat on the bones for me to take advantage of it.