REG - Tritax Big Box REIT - UKCM non-strategic asset disposals update

Tritax Big Box REITAnnouncement

16/04/2025 07:00

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RNS Number : 1806F  Tritax Big Box REIT plc  16 April 2025

UKCM non-strategic asset disposals update

·    50% of UKCM non-strategic assets sold at a 2.9% premium to December
2023 book value

·    Further 20% under offer of which 14% in solicitors' hands

·    Accretively redeploying capital into higher returning logistics and
data centre opportunities

16 April 2025, Tritax Big Box REIT plc ("Tritax Big Box" or "the Company";
ticker: BBOX) provides an update on the UKCM non-strategic asset disposals
with £235.7 million of sales exchanged or completed representing 50% of the
portfolio acquired in the UKCM combination completed in May 2024, with a
further £95.6 million (20%) under offer of which £68.4 million (14%) is in
solicitors' hands.

 

£235.7 million of c.£475 million UKCM non-strategic assets sold above book
value

-     Disposals achieved a blended 6.1% NIY and 2.9% premium to December
2023 book value.

-     Encompasses range of assets in retail warehousing, supermarkets,
hotels, and student accommodation.

-     Post completion of disposals, non-strategic assets will represent
less than 4% of total GAV, versus 8% at the time of acquisition completion.

-     Total disposals of £220.3 million achieved year to date, including
£79 million of logistics assets.

This marks substantial progress of our disposal programme consistent with our
ambition to complete the UKCM non-strategic disposals within 24 months of
acquisition. Having completed the integration process set out ahead of the
transaction, we have efficiently progressed the disposal programme at speed,
at scale and at a premium to pre-acquisition book values.

Concurrently, since the completion of our combination with UKCM 11 months ago,
we have taken immediate steps to enhance value and accelerate income growth.
We are making excellent progress towards capturing the c.40% rental reversion
within the UKCM logistics portfolio, as evidenced by a 5.6% increase in rental
income since acquisition set out in our recent FY24 results announcement.

This important milestone confirms our ability to execute on our ambitions for
the enlarged business and underlines the ongoing success of our capital
recycling strategy. The proceeds are being redeployed into accretive growth
opportunities, including ongoing investment in developing logistics real
estate with a target yield on cost for FY 2025 of 7-8% and new data centres
opportunities with the potential to deliver 8-10% yield on cost.

Colin Godfrey, CEO for Tritax Big Box, commented:

"We are making excellent progress rotating out of the non-strategic assets
acquired through the UKCM transaction. The level of disposals now achieved
highlights the overarching quality of the UKCM portfolio. We continue to see
high levels of interest in the remaining non-strategic assets, of which a
further £95.6 million is under offer, underpinning our confidence in being
able to exit the position within 24 months of acquisition, as planned.

"The capital from these disposals, and other ad hoc logistics assets
disposals, supports the delivery of our attractive logistics pipeline as well
as the exceptional returns through data centre development. In combination
with capturing our record rental reversion, these three drivers provide the
opportunity to more than double our rental income.

"With an increasingly turbulent geopolitical and economic backdrop, our modern
and well-located logistics portfolio is let to strong covenants and carefully
crafted to provide investors with an attractive combination of income and
capital growth, with the vast majority of our assets used to service the
domestic UK market, and having negligible exposure to export orientated
manufacturing."

 

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.

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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