REG - Tritax Big Box REIT - Trading update and notice of investor seminar

Tritax Big Box REITAnnouncement

Wed 07:00

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RNS Number : 5879H  Tritax Big Box REIT plc  07 May 2025

Trading update and notice of investor seminar

·      Bespoke logistics portfolio and data centre opportunities
continue to offer superior risk-adjusted returns

·      Extensive organic growth opportunities support more than doubling
of rental income in the medium-term

·      Strong occupational interest in Manor Farm data centre
opportunity

7 May 2025, Tritax Big Box REIT plc ("Tritax Big Box" or "the Company";
ticker: BBOX), in conjunction with its Annual General Meeting today, provides
an update on its progress for the year to date. In addition, on Monday 30 June
2025 the Company will hold a seminar for investors to further explain its
growth drivers in logistics development and data centres.

Colin Godfrey, CEO for Tritax Big Box, commented:

"We remain well positioned to offer investors superior risk-adjusted returns
driven by our focused UK logistics and data centres strategy. Our integrated
approach across active management, investment and development provides
extensive organic growth opportunities, which have the potential to more than
double rental income. This, combined with our efficient cost structure and
limited near-term debt maturities, underpins our ability to continue to grow
earnings and dividends.

"Despite a period of challenging investment market conditions, we have
successfully sold £634 million of assets at or above their book valuations
since the September 2022 mini-budget. This demonstrates the quality of our
portfolio and provides confidence in both our asset values and our ability to
continue to finance our strategy through capital rotation.

"We are pleased with the levels of interest from both hyperscalers and
co-locators in our first data centre opportunity at Manor Farm, West London.
With an acute shortage of power in this key availability zone, our ability to
provide 107 MW of power delivery in 2027 is unique. The planning process is
progressing as expected, with an aim of achieving consent by the end of 2025.

"We expect our investment portfolio, which our clients primarily use to serve
the UK domestic market, to remain unaffected by US tariff changes".

Market environment remains supportive with ongoing rental growth

-     Occupiers continue to invest in their supply chains. Q1 2025 take up
of 5.0 million sq ft is consistent with 2023/24 levels. A further 12.9 million
sq ft under offer across 30 buildings (Q4 2024: 11.5 million sq ft).

-     Speculative space under construction declined across the quarter and
new starts remain low with the increase in market vacancy to 6.3% (Q4 2024:
5.6%) largely due to greater availability of second-hand buildings.

-     We continue to see attractive levels of market rental growth with Q1
2025 MSCI rental growth of 1.2% (Q1 2024: 1.2%).

-     Investment market remains open with prime market yields stable at
5.25%.

Record reversion provides significant rental income growth opportunities

-     Portfolio offers inflation beating rental income growth from
blue-chip clients as we capture record 28% rental reversion.

-     10.4 years unexpired lease term on portfolio.

-     Approximately 2% of rental income derived from export orientated
manufacturing activity.

Active management continuing to grow income and capture rental reversion

-     We continue to make good progress on our asset management
initiatives and, with a higher proportion of leases subject to review in H2
2025, expect to see an acceleration in rent income capture as the year
progresses.

-     £2.3 million of incremental rental income added year to date from
8.9% of portfolio subject to lease events.

§ Represents an 8.3% absolute increase in rent across these lease events,
with open market reviews delivering uplifts averaging 37.3%.

-     Further 18.6% of contracted rent to be reviewed across the remainder
of 2025.

-     50% of non-strategic UKCM assets now sold at a 2.9% premium to
December 2023 book value; further £95.6 million under offer and on track to
fully exit in line with original guidance and timeframe.

New logistics developments driving returns with a 7-8% yield on cost

-     Recent uptick in occupational interest from clients expected to
convert to increased leasing activity in H2 2025.

-     1.3 million sq ft of development lettings, with potential annual
rental income of £11.9 million, currently in solicitors' hands.

-     7-8% yield on cost guidance for 2025 development starts reflects
stabilised construction costs and continued market rental growth.

Potential for exceptional returns with strong occupational interest in first
data centre opportunity

-     In line with our pre-let and "powered shell" data centre model, we
have received strong occupational interest in our 107 MW data centre
development at Manor Farm, West London with NDAs signed with hyper-scalers and
significant co-locators.

-     The planning process is ongoing, targeting receipt of consent by the
end of 2025.

-     Progressing additional 1GW data centre pipeline which sits within
the broader London availability zone.

Investor seminar - Monday 30 June 2025

We will host a seminar for investors at 2pm on Monday 30 June 2025 to share
further details of our logistics development and data centre growth drivers.
The seminar, which will be held both in person in London and available via
webcast, will provide investors with an opportunity to hear from and meet
members of the broader Tritax team. Further details on how to register will be
made available on our website shortly.

For further information, please contact:

Tritax Group

Colin Godfrey,
CEO
            Tel: +44 (0) 20 8051 5060

Frankie Whitehead,
CFO
Email: bigboxir@tritax.co.uk (mailto:bigboxir@tritax.co.uk)

Ian Brown, Head of Corporate Strategy & Investor Relations

 

Kekst CNC

Tom Climie / Guy
Bates
            Tel: +44 (0) 7760 160 248 / +44 (0) 7581 056 415

Email: tritax@kekstcnc.com (mailto:tritax@kekstcnc.com)

 

Notes:

Tritax Big Box REIT plc (ticker: BBOX) is the largest listed investor in
high-quality logistics warehouse assets and controls the largest
logistics-focused land platform in the UK. Tritax Big Box is committed to
delivering attractive and sustainable returns for shareholders by investing in
and actively managing existing built investments and land suitable for
logistics development. The Company focuses on well-located, modern logistics
assets, typically let to institutional-grade clients on long-term leases with
upward-only rent reviews and geographic and client diversification throughout
the UK. Additionally, having adopted a "power first" approach, the Company has
recently secured its first 147MW data centre development opportunity, and a
further 1GW pipeline, offering the potential to deliver exceptional returns on
an accelerated basis.

The Company is a real estate investment trust to which Part 12 of the UK
Corporation Tax Act 2010 applies, is listed on the Official List of the UK
Financial Conduct Authority and is a constituent of the FTSE 250, FTSE
EPRA/NAREIT and MSCI indices.

The Company's LEI is: 213800L6X88MIYPVR714.

 

Further information on Tritax Big Box REIT is available at: tritaxbigbox.co.uk
(http://www.tritaxbigbox.co.uk/)

 

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