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RNS Number : 1246U Tritax Big Box REIT plc 06 August 2025
Results for the
six months ended
30 June 2025
6 August 2025
Three clear growth drivers delivering strong performance
Potential to deliver adjusted earnings growth of 50% by the end of 2030
Superior risk adjusted returns from logistics and data centre developments
H1 2025 key figures
30 June 2025 30 June 2024 Change
Net rental income £149.2m £127.2m 17.3%
Operating profit(1) £144.1m £123.8m 16.4%
Adjusted earnings per share(2,6) 4.63p 4.35p 6.4%
Adjusted earnings per share (ex. additional DMA income) (3, 6) 4.29p 4.10p 4.6%
IFRS earnings per share 6.72p 9.14p -26.5%
Dividend per share 3.83p 3.65p 4.9%
Dividend pay-out ratio (ex. Additional DMA income) (3, 6) 89.4% 89.0% +0.4pts
Total Accounting Return 3.6% 3.4% +0.2pts
EPRA cost ratio (excluding vacancy cost) (6) 12.9% 12.4% +0.5pts
EPRA cost ratio (including vacancy cost) (6) 13.8% 12.5% +1.3pts
30 June 2025 31 December 2024
Contracted annual rent roll £311.3m £313.5m -0.7%
EPRA Net Tangible Assets per share(6) 188.17p 185.56p 1.4%
IFRS net asset value per share 186.74p 184.12p 1.4%
Portfolio value(4, 6) £6.82bn £6.55bn 4.1%
Loan to value (LTV)(6) 30.9% 28.8% +2.1pts
Commenting on the results, Aubrey Adams, Chairman of Tritax Big Box REIT,
said:
"There are few listed real estate companies that offer such compelling organic
growth potential as Tritax Big Box. Our resilient income profile is
underpinned by long-duration contracted revenues, from strong clients on
triple-net leases, while our three clear growth drivers provide the potential
to grow adjusted earnings by 50% by the end of 2030.
"During the period we have made significant strategic progress to further
de-risk this growth and remain confident and excited about our future
prospects. In particular, we've secured our second significant data centre
opportunity, with the potential to deliver a 10-11% yield on cost. Our UKCM
logistics assets have delivered 13.2% rental growth since acquisition. Recent
development letting activity evidences the growing occupational interest in
our sites - momentum we expect to build in the second half of the year."
Attractive rental income growth supporting increase in Adjusted EPS, enhanced
by DMA contribution
· 6.4% increase in Adjusted EPS to 4.63 pence (H1 2024: 4.35 pence)
driven by net rental income growth.
o Adjusted EPS excluding additional DMA income grew 4.6% to 4.29 pence (H1
2024: 4.10 pence).
· 17.3% increase in net rental income to £149.2 million (H1 2024:
£127.2 million) driven by higher average contracted rent roll reflecting the
full impact of the UKCM acquisition, along with active asset management and
development execution.
· 12.9% EPRA cost ratio excluding vacancy costs remaining broadly stable
(H1 2024: 12.4%). 13.8% EPRA cost ratio including vacancy costs (H1 2024:
12.5%), reflecting full period of assumed vacancy costs from UKCM acquisition.
Capital growth through stable yields, growing income and development activity
· Increase in total portfolio value to £6.82 billion (31 December 2024:
£6.55 billion), with equivalent yield remaining stable at 5.72% (31 December
2024: 5.68%).
· 1.4% portfolio capital value increase (H1 2024: 0.5% increase) driven by
income growth and asset management alongside development gains.
Growth driver 1: Capturing record rental reversion to drive earnings growth
· 2.3% like-for-like Estimated Rental Value (ERV) growth across the
logistics portfolio (H1 2024: 1.9%) across the six months.
· 28.9% logistics portfolio reversion (H1 2024: 25.5%) combined with
current vacancy provides potential to capture £83.8 million of additional
rent, of which 77% within the next 3 years, supporting future earnings growth.
· £5.6 million (+10.3%) added to annual contracted rent through rent
reviews and asset management initiatives:
o Including 35.5% increase in aggregate across open market linked rent
reviews settled in period.
o Despite a weighting towards inflation linked and fixed uplift rent reviews
in the period achieved a 9.2% absolute increase in passing rent across all
rent reviews settled.
o 13.2% growth in contracted rent for UKCM logistics portfolio since
acquisition.
Growth driver 2: Developing best-in-class logistics assets to drive earnings
growth
· 1.1 million sq ft of development starts in H1 2025 of which 33% has
been either pre-let or pre-sold.
· £1.5 million added to passing rent from let development completions
in the period.
· 0.4 million sq ft development letting shortly after period end adding
£3.9 million per annum to passing rent.
· 2.5 million sq ft under construction at H1 2025, with 54% either
pre-let or pre-sold, with an ability to add £23.1 million to annual rent (of
which £11.1 million has been secured).
· Consistent with FY 2024, development letting activity expected to be
H2 weighted supported by:
o 0.9 million sq ft of pre-lets in solicitors' hands with an ERV of £8.8
million
o 2.1 million sq ft of further pre-lets in discussions with potential
occupiers
o 1.2 million sq ft of speculative space in negotiations with potential
occupiers with the potential to add £10.7 million to rental income.
· Weighted average embodied carbon from developments completed in
period of 316 kg CO(2)e per m(2) (H1 2024: 296 kg CO(2)e per m(2)).
· Development starts for FY25 expected to be consistent with FY24
delivery, at the lower end of our 2-3 million sq ft guidance, whilst at the
upper end of our 6-8% yield on cost range.
o DMA income expected to contribute approximately £15 million to FY25
operating profit.
Growth driver 3: Power-first data centres targeting exceptional returns; 9-11%
yield on cost from first two schemes
· Significant occupational interest at 107MW Phase 1 Manor Farm,
targeting £34 million per annum of rent at a 9.3% yield-on-cost, significant
development profits and on track for delivery in H2 2027.
· Project 2 site with 125MW and potential £23-25 million per annum of
rent, 10-11% yield-on-cost and delivery anticipated in 2028.
· Accelerated power delivery working with EDF Renewables, the global
low carbon energy power generator.
· Additional c.1GW pipeline of UK opportunities identified.
£278.2 million of disposals year-to-date supporting self-funding of organic
growth opportunities
· £204.8 million of disposals completed in the period, comprising:
o £125.8 million of UKCM non-strategic disposals.
o £79.0 million of additional disposals from logistics portfolio.
· £73.4 million of disposals completed or exchanged post period end.
· In total since completion of the UKCM acquisition, £283.7 million (61%)
of UKCM non-strategic assets exchanged or sold:
o Achieved a 6.5% blended NIY to date;
o Further £49 million (11%) of UKCM non-strategic assets under offer;
o Expecting to fully exit non-strategic assets in line with acquisition
price.
· Increased longer-term disposals guidance of £250-350 million per
annum to support self-funding of growth opportunities.
Balance sheet strength supporting our strategy
· 30.9% LTV at 30 June 2025 (31 December 2024: 28.8%) and Net
Debt/EBITDA(5) of 7.9x (31 December 2024: 7.3x).
o 30.2% LTV on pro-forma basis when including all asset disposals exchanged
or completed year to date.
· 3.2% weighted average cost of debt (31 December 2024: 3.1%), with 86%
of drawn debt either fixed or hedged.
· £400 million RCF refinancing with a 5-year term agreed in the
period.
· Over £470 million of available liquidity as at H1 2025.
· Strong credit rating from Moody's of Baa1 (positive).
Results presentation and Q&A
A Company presentation for analysts and investors will take place via a
webcast with a live Q&A at 9am (BST) today and can be viewed at:
https://brrmedia.news/BBOX_HY25 (https://brrmedia.news/BBOX_HY25)
If you would like to ask a question verbally rather than through the webcast
viewer, please join the presentation conference call:
UK: +44 (0) 33 0551 0200
USA: +1 786 697 3501
Password: Tritax Half Year 2025
Retail investor webcast and Q&A
The Company will also host a live interactive presentation aimed at retail
investors on the Engage Investor platform, at 1.00pm (UK time) today.
Colin Godfrey (CEO) and Frankie Whitehead (CFO), who will host the event,
welcome current shareholders and interested investors to join. Questions can
be submitted prior to the webcast via the Engage Investor platform, or at any
time during the live presentation. Investors can sign up to Engage Investor at
no cost and follow Tritax Big Box REIT plc from their personalised investor
hub.
Register interest and access this event here:
https://engageinvestor.news/BBOX_IP2025
(https://engageinvestor.news/BBOX_IP2025)
Notes
1. Operating profit before FV movements and other adjustments.
2. See Note 8 to the financial statements for reconciliation.
3. The anticipated run rate for Development Management Agreement (DMA)
income is £3.0-5.0 million per annum over the medium term. We classify income
above this as 'additional' development management income, which can be highly
variable over time. We therefore present a calculation of Adjusted EPS that
excludes additional development management income. £13.3 million of DMA
income is included in the 4.63p Adjusted earnings per share in H1 2025. H1
2024: £12.2 million included in 4.35p Adjusted earnings per share).
4. The Portfolio Value includes the Group's investment assets and
development assets, land assets held at cost, the Group's share of joint
venture assets and other property assets.
5. Calculated based on pro-forma EBITDA inclusive of full twelve
months contribution of UKCM, adjusted for fair value of UKCM debt at
acquisition.
6. An alternative performance measure. The Group uses a number of
financial measures to assess and explain its performance, some of which are
considered to be alternative performance measures as they are not defined
under IFRS. For further details, see the Financial Review and Notes to the
EPRA and other key performance indicators section, as well as definitions in
the Glossary.
For further information, please contact:
Tritax Group
Colin Godfrey,
CEO
+44 (0) 20 8051 5060
Frankie Whitehead,
CFO
bigboxir@tritax.co.uk
Ian Brown, Head of Corporate Strategy & Investor Relations
Kekst CNC
Tom Climie/Guy Bates
+44 (0) 77 601 60 248 / +44 (0) 75 810 56 415
Email: tritax@kekstcnc.com (mailto:tritax@kekstcnc.com)
The Company's LEI is: 213800L6X88MIYPVR714
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 data centre development opportunities (amounting to
272MW), and has a pipeline of over 1-gigawatt of further opportunities,
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.
Further information on Tritax Big Box REIT is available at
www.tritaxbigbox.co.uk (http://www.tritaxbigbox.co.uk/)
Chairman's statement
This was another important period in the ongoing evolution of our business, as
the Manager continues to work hard to optimise our performance, embed value
and enhance returns to shareholders. The Group delivered another strong
financial performance underpinning further dividend progression, by capturing
value through successful active management and progressing our development
activities, including securing power agreements and sites for our first data
centre developments.
Clear growth drivers set to deliver superior risk-adjusted returns
The strategy set out in the Manager's report has created three growth drivers,
whose scale and breadth we believe is unique in UK real estate. They are:
· Capturing record rental reversion through active management: At
the period end, the investment portfolio had a level of rental reversion and
vacancy of £84 million or 29%, which we are successfully capturing and adding
to through our active asset management.
· Our attractive logistics development pipeline: Our logistics
development programme generates best-in-class assets for the investment
portfolio and has the potential to more than double our rental income over the
longer term, at an attractive yield on cost of 6-8%.
· Delivering exceptional returns through data centre development: We
have made an excellent start to our innovative 'power-first' approach to data
centre development and have increased our guidance for the yield on cost in
this market to 9-11%. Leveraging our experience in logistics development,
adopting a "powered-shell" model, and with significant capex contingent upon
planning and successful pre-letting to a strong client, we believe our
approach has the potential to deliver exceptional risk adjusted returns to our
shareholders.
These core growth drivers have the capacity to increase our Adjusted earnings
by 50% by the end of 2030.
Performance and dividends
The quality of our investment portfolio and further income growth from our
asset management and development programmes increased Adjusted EPS excluding
additional DMA income by 4.6% to 4.29 pence. In line with our dividend policy,
and consistent with our distribution methodology, we have declared dividends
in respect of the first half totalling 3.83 pence per share, up 4.9%.
The Group remains conservatively financed, with an LTV of 30.9% at the period
end. The Manager continues to successfully recycle capital to fund
higher-returning opportunities and made further good progress disposing of the
non-strategic assets which formed part of the portfolio acquired through the
combination with UK Commercial Property REIT Limited ("UKCM") in 2024. We are
on track to complete this disposal programme in line with the 24-month
timetable we set out. In total, we expect to complete £350-450 million of
disposals in 2025, including logistics assets where we have maximised their
value in our ownership. We have significant headroom in our debt facilities
and successfully refinanced two facilities in the period, with no further
maturities falling due before December 2026.
Potential acquisition of Warehouse REIT
We continue to identify and assess opportunities to complement our portfolio
with logistics assets that offer attractive rental growth, asset management
opportunities and are of value to our clients. In line with this, on 25 June
2025, we announced a cash and share offer for Warehouse REIT following
extensive due diligence. The Board believes the combination with Warehouse
REIT would further diversify our logistics portfolio by property size,
location and use, offers sizeable near-term rental reversion we can capture,
creates immediate financial synergies and generates returns above our cost of
capital over the short to medium term. For Warehouse REIT shareholders, our
offer provides both value certainty via a cash element plus the ability to
participate in the future growth of the combined business. The Board believes
the offer as presented is compelling to both Warehouse REIT and Tritax Big Box
shareholders, reflecting our informed view on the value of the underlying
assets of the business. While the combination is potentially compelling, the
Board continues to remain highly disciplined on capital allocation and will
assess any M&A opportunities relative to our range of organic
opportunities to ensure that capital is appropriately and most efficiently
allocated.
Significant earnings growth opportunities supported by a positive outlook
The logistics sector remains highly attractive, with the critical nature of
the buildings supporting resilient client demand. The market continues to
generate attractive rental growth, vacancy levels for new buildings are steady
and speculative deliveries are set to slow in 2026. The fundamentals are
therefore supportive of further rental growth.
In addition, the three growth drivers outlined above are set to deliver
multi-year increases in earnings for us. In particular:
· Some 77% or £64.3 million of the investment portfolio's £84
million of rental reversion is available to be captured in the next 3 years.
· The logistics development pipeline has the potential to deliver
£78 million of contracted rental income over the next three years, of which
£11 million has already been secured.
· Our two data centre development schemes have an estimated rental
level of £58 million per annum, with the Manor Farm site having the potential
to become income producing from 2027, subject to planning and agreeing a
pre-let.
To support this growth, we have increased our longer-term disposal guidance to
£250-350 million per annum enhancing our ability to self-fund our strategy
and earnings ambition.
We are confident of making further progress in the second half of this year
and over the years to come.
Aubrey Adams
Chairman
Manager's report
UK market review:
Demand diverse as occupiers seek greater supply chain resilience
H1 2025 saw 11.7 million sq ft of take-up across the UK, up from 10.5 million
sq ft 1 (#_ftn1) in H1 2024 2 (#_ftn2) .
The first half of 2025 has been positive overall, with resilient demand
despite significant uncertainty created by higher employment costs and US
tariffs at the beginning of the year. The period was characterised by two
distinct quarters. The market saw just 14 deals in Q1 2025, albeit this
totalled 5.0 million sq ft of demand. Activity picked up in May, however,
gaining significant momentum through Q2 2025. 6.7 million sq ft of deals
completed in the second quarter across 30 transactions(2).
Second quarter activity has been focused on standing stock with strong
interest in both speculatively developed and second-hand buildings. Occupier
demand remains diverse, a key attribute of the UK market. Notable transactions
include third-party logistics companies ("3PLs") taking large units in the
North East and South West to service ecommerce contracts; Chinese retailers
and associated 3PLs committing to multiple buildings in the Midlands and
demand from supermarket chains for large units (~350k sq ft+).
Space-under-offer (9.9 million sq ft(2)) and requirements 3 (#_ftn3) suggest
near-term demand is likely to remain at current levels and in line with recent
years. Structural drivers, such as the growth of ecommerce, supply chain
resilience and optimisation, and ESG continue to support our sector. In
addition, companies are restructuring their supply chains and investing in new
facilities with a focus on creating more efficient and resilient networks.
This is driving activity in our sector despite the challenging macro-economic
backdrop. Specifically:
· ecommerce and retail operators continue to build out their networks
and adopt more technology-based solutions, supported by larger power demands,
in part to mitigate higher labour costs;
· manufacturers are investing domestically as they re-design and
selectively re-shore their global supply chains;
· food retailers are refreshing networks as they look to drive
economies of scale by consolidating into larger units, utilise more tech-based
solutions (further increasing power requirements) and improve sustainability
metrics;
· and defence companies are active following the government's
announcement of additional spending.
We are well positioned to capitalise on these trends through our high-quality,
modern investment portfolio and large land portfolio and ongoing development
programme. Our occupier hub currently has a similar level of enquiries as
compared to late 2024, with a higher proportion at more advanced stages of
negotiation.
Higher vacancy offset by reduced speculative supply going forward
Market vacancy, which reflects ready-to-occupy space, stood at 7.1% at the end
of the period, up from 5.6% at Q4 20242. Second-hand vacancy continues to
trend higher but from low levels. Having been relatively stable over recent
years, speculatively developed new vacancy increased in the period as several
schemes completed. However, going forward, less speculatively developed new
space will be coming to the market. Speculative space under construction
dropped to 7.3 million sq ft at Q2 2025 from 12.8 million sq ft in Q4 2024 and
is now at its lowest level since early 20212.
Resilient and attractive levels of rental growth
MSCI UK Distribution Warehouse ERVs increased by 2.4% in H1 2025 (H1 2024:
2.7%). Aggregate data hides significant local market dynamics; these not only
relate to geography but also to building size, specification and age. ERV
growth has become more building specific, underlining the importance of
granular market knowledge and owning and developing the right product in the
right location.
Capital markets: investor conviction remains high
CBRE prime market yields remained flat across the period at 5.25%. MSCI UK
Distribution Warehouse capital growth totalled 1.8% in H1 2025 (H1 2024:
0.2%).
H1 2025 transaction volumes totalled £3.3 billion4 (#_ftn4) (H1 2024: £3.5
billion) with a notable uptick in activity through the second quarter.
Transaction activity has been driven by big box portfolios and logistics parks
of £100 million plus. Forced sellers remain a rarity while investor
conviction in the sector remains high. Existing owners are, therefore,
choosing to hold onto logistics assets given their confidence in the sector
and attractive returns available following a period of repricing.
Strategic and operational update:
A consistent and successful strategy
Our strategy has three interlinked components.
1) High-quality assets attracting world-renowned clients - delivering
long-term, resilient and growing income.
2) Direct and active management - optimising the portfolio, adding value and
recycling capital.
3) Insight driven development and innovation - creating value, future proofing
and capturing occupier demand.
Our approach to each element of the strategy is client-focused and
sustainability-led, and includes a rigorous approach to managing risks.
Information on how we implemented the strategy during the period is set out in
the following sections.
1) High-quality assets attracting world-renowned clients
Our total portfolio comprises:
· The investment portfolio. These are logistics assets with a lease
or agreement for lease in place. We believe our investment portfolio is the
strongest in the UK in terms of asset quality, which includes asset location,
client financial covenant strength and lease length.
· The development portfolio. This comprises land, options over land
and buildings under construction, generating best-in-class logistics and data
centre assets for the investment portfolio (see insight driven development and
innovation below).
· Non-strategic assets. These are typically modern, high-quality
non-logistics assets acquired with UKCM, which we are divesting to provide
funding for higher-returning opportunities, particularly our development
programme.
Investment portfolio and non-strategic assets - key figures
30 June 2025 31 December 2024 Change
Total portfolio value - investment portfolio (£bn) 5.95 5.77 3.1%
Total portfolio value - non-strategic assets (£bn) 0.24 0.39 (38.5)%
Number of investment assets - investment portfolio 104 102 2.0%
Number of investment assets - non-strategic assets 10 14 (28.6)%
Gross lettable area - investment portfolio (million sq ft) 42.4 41.8 1.4%
Gross lettable area - non-strategic assets (million sq ft) 0.9 1.5 (40.0)%
Estimated rental value - investment portfolio (£m) 373.7 362.9 3.0%
Estimated rental value - non-strategic assets (£m) 22.8 32.5 (29.8)%
Number of clients - investment portfolio 135 128 5.5%
Number of clients - non-strategic assets 43 78 (44.9%)
Vacancy - investment portfolio 5.6% 5.8% -0.2pts
Vacancy - non-strategic assets 5.2% 4.3% 0.9pts
Total portfolio vacancy 5.6% 5.7% -0.1pts
WAULT - investment portfolio (years) 10.5 10.6 -0.1 years
WAULT - non-strategic assets (years) 8.0 7.3 0.7 years
H1 2025 H1 2024 Change
Like-for-like six-month ERV growth - investment portfolio 2.3% 1.9% 0.4pts
Resilient portfolio with embedded opportunities for value creation
The investment portfolio is split between:
· foundation assets, which provide attractive, lower-risk and
resilient long-term income; and
· value add assets, which offer opportunities for capital or income
growth through asset management.
Assets can move between these categories, as our asset management turns value
add assets into foundation, or as foundation assets become value add, for
example as a lease nears expiry.
At 30 June 2025, our total portfolio comprised:
Investment portfolio % of GAV
Foundation assets 58.5%
Value add assets 28.7%
Total investment portfolio 87.2%
Development portfolio 9.2%
Non-strategic assets 3.6%
Total portfolio 100.0%
The total portfolio value at 30 June 2025 was £6.82 billion (31 December
2024: £6.55 billion). The capital value increase, across the portfolio was
1.4% higher, reflecting stable yields, further development gains and the
benefits of our active asset management, including 2.3% like-for-like ERV
growth over the six months.
A broad and well-located client offer
While big boxes make up most of our portfolio, over recent years our
investment strategy and development programme have both increased the range of
building sizes we can offer our clients. This allows us to meet our client
needs for "first mile" mission critical logistics assets through to "last
mile" urban delivery units.
At the period end, the investment portfolio contained the following mix of
building sizes:
Investment portfolio Contracted rent Contracted rent
30 June 2025
31 December 2024
<100k sq ft 11.4% 11.0%
100 - 250k sq ft 10.9% 10.7%
250 - 500k sq ft 28.3% 28.9%
>500k sq ft 49.4% 49.4%
The investment portfolio is well-diversified geographically, with a good
balance of exposure to key logistics locations in the South East, the Midlands
and the North of England:
Investment portfolio locations by market value 30 June 2025 31 December 2024
South East 35.3% 35.9%
South West 3.1% 3.0%
East Midlands 14.6% 14.3%
West Midlands 22.5% 22.3%
North East 14.4% 16.0%
North West 8.4% 6.8%
Scotland 1.7% 1.7%
Secure client base underpins income generation
The Group's diversified client base includes some of the world's
most-important companies, with 61% being part of groups included in major
stock market indices, such as the DAX 30, FTSE All Share, SBF 120, NYSE and
S&P 500.
The number of clients across the investment portfolio increased from 128 to
135 during the period. Investment portfolio vacancy at the period end was 5.6%
(31 December 2024: 5.7%).
The table below lists the Group's top ten clients:
Client % of contracted annual rent Client % of contracted annual rent
Amazon 15.6% B&Q 3.0%
Morrisons 4.4% Argos 2.9%
Iron Mountain 4.4% Sainsbury's 2.8%
The Co-Operative Group 3.9% Ocado 2.6%
Tesco 3.2% Marks & Spencer 2.6%
Upward-only rent reviews provide attractive income growth
Most of our logistics leases benefit from upward-only rent reviews. Of total
contracted rents for logistics assets:
· 15.1% are reviewed annually; and
· 79.4% are reviewed in five-yearly cycles, with the timings
staggered so there are reviews taking place each year; and
· 5.5% with either no or rent reviews of a different review
frequency.
The table below shows the rent review types across the logistic portfolio at
the period end:
Rent review type % of rent roll at % of rent roll at
30 June 2025 31 December 2024
Fixed uplifts 9.2% 9.4%
RPI/CPI linked 44.9% 45.0%
Open market 28.6% 31.1%
Hybrid (higher of inflation or open market) 12.1% 12.9%
No reviews 5 (#_ftn5) 5.2% 1.6%
Leases with inflation-linked reviews specify minimum and maximum rental
growth, which average 1.6% and 3.6% respectively. In tandem with fixed rent
reviews, this provides certainty on the minimum rental increases the portfolio
will generate each year. We supplement this through open market and hybrid
rent reviews, which can capture uncapped market rental growth, and other forms
of active management to increase rental income.
Due to the balance of open market and inflation-linked rent reviews, and the
growing rental reversion in the portfolio (see below), we remain positive
about continuing to deliver attractive, long-term income growth from our
investment assets. Information on rent reviews in the period can be found in
the Direct and active management section below.
Increasing ERVs provide a substantial and embedded opportunity to grow rental
income
At each valuation date, the valuer independently assesses the ERV of each
asset in the investment portfolio. This is the rent the property would be
expected to secure through an open market letting at that date. At 30 June
2025, the total investment portfolio ERV was £373.7 million (31 December
2024: £362.9 million), which is £83.8 million or 28.9% (31 December 2024:
27.9%) above the contracted rent. We have opportunities to capture the
reversionary and vacancy potential across the investment portfolio through
open market rent reviews, lease renewals, new leasing across vacant units or
lease regears.
In aggregate, we have the potential to capture 77% or £64.3 million 6
(#_ftn6) of this reversion in the next three years. We have a strong track
record of meeting or exceeding ERVs and capturing these uplifts which require
either no or very limited capital expenditure.
Vacancy and outstanding reviews
Contracted rent (£m) % of contracted rent ERV (£m)
Vacancy - - 23.9
Outstanding reviews from prior periods 7 (#_ftn7) 4.2 1.5% 6.7
Total 4.2 1.5% 30.6
Rent review and expiries 8 (#_ftn8)
H2 2025 2026 2027
Review type Frequency Rent (£m) % of passing ERV (£m) Rent (£m) % of passing ERV (£m) Rent (£m) % of passing ERV (£m)
Indexation Annual 20.0 6.4% 21.5 33.1 10.6% 39.6 33.1 10.6% 39.6
5-yearly 7.8 2.5% 9.8 26.7 8.6% 34.0 17.6 5.7% 23.2
OMR / Hybrid Annual 0.0 0.0% 0.0 0.0 0.0% - 4.3 1.4% 4.8
5-yearly 4.0 1.3% 5.4 22.5 7.2% 30.9 17.7 5.7% 20.0
Fixed Annual 1.7 0.6% 1.7 10.8 3.5% 10.7 10.5 3.4% 10.4
5-yearly 0.4 0.1% - 8.5 2.7% 9.4 6.5 2.1% 8.6
Total rent reviews 33.9 10.9% 38.4 101.6 32.6% 124.6 89.7 28.9% 106.6
Lease expiries 4.9 1.6% 6.8 9.6 3.1% 13.5 13.5 4.3% 15.3
Total lease events in period 38.8 12.5% 45.2 111.2 35.7% 138.1 103.2 33.2% 121.9
Vacancy levels reflect integration of UKCM portfolio and recently completed
speculative developments
Our reported vacancy as at 30 June 2025 was 5.6%, a decrease from 5.7% as at
31 December 2024. Of this vacancy, approximately 3.2% relates to buildings
which have been completed from our development programme in the past nine
months. We see good levels of interest in these buildings, as evidenced by the
letting of a 0.4 million sq ft building shortly after the period end. Taking
into account this letting reduces the pro forma vacancy rate by 110 bps to
4.5%. The remainder of the vacancy figure relates primarily to the
incorporation of vacant assets through the UKCM acquisition where overall
vacancy has remained consistent.
Long duration, full repairing and insuring leases minimise capex and enhance
income security
At the period end, the investment portfolio's WAULT was 10.5 years (31
December 2024: 10.6 years), with the foundation assets having a WAULT of 13.0
years (31 December 2024: 13.6 years).
Of total rents:
· 24.7% is generated by leases with 15 or more years to run; and
· 23.2% comes from leases expiring in the next five years,
providing near-term opportunities to capture the growing rental reversion
within the portfolio, as described above.
Full repairing and insuring ("triple net") leases result in high conversion of
gross to net rental income
Most of our leases are full repairing and insuring (FRI), equivalent to
"triple net" leases in the United States. This means our clients are
responsible for property maintenance during the lease term and for
dilapidations at the end of the lease. This minimises our irrecoverable
property costs, which resulted in 98% conversion of gross to net rental income
for the period.
Portfolio quality reinforced by strong sustainability characteristics
EPC ratings are a key benchmark for both investors and occupiers and we are
continuing to work with our clients and consultants to improve the EPC ratings
of our buildings where possible. We are also constructing all our new
logistics developments to a minimum standard of EPC A and BREEAM Excellent.
At 30 June 2025, 97% of the investment portfolio had an EPC rating of C or
above (31 December 2024: 98%). At the year end, all assets certified or
expected to be certified by BREEAM, while 50.3% had a rating of Very Good or
above (31 December 2024: 49.5%).
2) Direct and active management
Six months to Six months to Change
30 June 2025 30 June 2024
Completed disposals (£m gross proceeds) 9 (#_ftn9) 204.8 - -
Completed disposals (million sq ft) 1.3 - -
Completed disposals (£m contracted rent) 13.0 - -
Acquisitions (£m consideration) 74.3 46.0 61.5%
Acquisitions (million sq ft) 0.6 0.5 20.0%
Portfolio subject to rent review in period (%) 8.7% 6.2% 2.5pts
Proportion of portfolio reviewed (%) 9.7% 7.7% 2.0pts
Change in contracted rent from lease expiries / new lettings (£m) (1.5) (2.3) 34.8%
Contracted rent uplifts - reviews and lease events (£m) 5.6 3.4 64.7%
Contracted rent uplifts - reviews and lease events (%) 10.3% 10.7% -0.4pts
EPRA like-for-like rental growth (%) 2.5% 2.1% 0.4pts
Growing and lengthening income
Through our active management we are making good progress in leveraging the
rental reversion opportunity in the investment portfolio, growing income by
£5.6 million in the period through 35 initiatives, such as lettings, lease
re-gears and rent reviews. Approximately 9.7% of the portfolio was reviewed in
the period, with a further 10.9% set to be reviewed in H2 2025. The table
below shows the strong rental uplifts from open-market reviews completed, as
we capture above-ERV levels of income.
H1 2025 Settled rent reviews and re-lettings
Rent review type Number % of contracted rent Growth in passing rent (£ million)
Index linked 5 4.1% 0.4
Open market / hybrid 6 2.7% 2.0
Fixed 3 2.8% 0.4
Total rent reviews 14 9.6% 2.8
Lease renewals and extensions 15 5.5% 2.6
Non-strategic assets 5 2.1% 0.2
Total all rent reviews and lease events 34 17.2% 5.6
We continue to have encouraging discussions with clients about collaborating
across multiple assets and developing their supply chain networks with
additional units, working on a portfolio approach rather than single assets.
The combination of our investment portfolio and logistics development
programme supports our ability to be the landlord of choice for clients.
Successful integration of UKCM logistics assets and maximising value of our
urban logistics units
UKCM logistics assets At acquisition 30 June 2025 Growth
Contracted rent £34.0m £38.5m 13.2%
ERV £48.3m £50.7m 5.0%
Asset values £734.1m £799.2 8.9%
Vacancy 10.5% 9.7% 0.8 pts
It has been a very active period successfully integrating the UKCM logistics
assets into our portfolio. With just over 12 months in our ownership, we made
significant progress in enhancing the estates, refurbishing selected buildings
and undertaking significant engagement with clients to help drive rental
growth. UKCM's logistics assets are one of the strongest performing parts of
our business, as demonstrated by the 13.2% increase in contracted rent in our
ownership.
In addition to UKCM logistics assets, to help capture rental reversion across
our urban logistics assets, we have made good progress with works to enhance
the estates. The programme includes new signage, amenities such as food and
beverage outlets, landscaping incorporating outside seating areas, and
increased security provisions, with the mix of initiatives tailored to the
needs of each estate and the feedback from clients.
The success of this integration builds on the continued investment we have
made in our asset management capabilities. This investment encompasses both
team members and the systems and tools they use to effectively manage the full
spectrum of logistics assets.
Realising value and recycling capital through disposals
Every six months, we conduct a thorough process to develop a five-year
business plan for every asset in the portfolio. This draws on expertise from
across our teams, including asset management, ESG, development, power and our
analysts. Through this, we identify assets that are candidates for disposal
because:
1) we have completed our asset management plans and maximised near-term
value;
2) the asset's investment characteristics no longer fit our desired portfolio
profile; or
3) the asset's future performance may be below others in the portfolio or have
more risk attached to it.
When we have identified candidates for disposal, we look closely at capital
market conditions, to establish whether we are acting at the correct point in
the market cycle. We continually profile the most active buyers to establish
their desired income profile, coupled with their transactional experience and
credibility, to ensure we engage with purchasers with high execution
abilities.
UKCM related non-strategic asset disposal progress
When we completed the UKCM combination in May 2024, our plan was to divest the
non-strategic assets within 24 months. We made further excellent progress
during the period, completing contracts to dispose of three non-strategic
assets for a total of £125.8 million. In total since acquisition, we have
sold or exchanged to sell £283.7 million of assets, representing 61% of the
non-strategic assets. A further £49.0 million of assets are under offer, and
we are on track to complete the exit in line within our original two year time
frame and at pricing consistent with acquisition costs.
Core logistics asset disposal progress
During the period, we also completed the disposal of a 755k sq ft logistics
asset at Doncaster. This was part of a transaction to sell two assets to the
same buyer for total consideration of £125.0 million, as reported in our 2024
full-year results. The sale of the first asset completed in 2024.
Total asset disposal progress
Overall, the disposal activity noted above has been conducted at or around
book values. Having completed £204.8 million of disposals in H1 2025, we
expect the total for the full year to be £350-450 million.
Acquiring investments with asset management potential
We continue to look for investment opportunities that can generate accretive
total returns, support our income growth and broaden our client offering. This
forms part of our ongoing portfolio optimisation and complements our
development activity by typically offering lower risk and more immediate
income.
In January 2025, we acquired a 627k sq ft cold store building in Haydock, a
core North West location, for £74.3 million. The property is let to
Sainsbury's as its principal North West hub. On acquisition the lease had an
unexpired term of c.13 years, with a tenant break in c.8 years. The rent is
reviewed on an uncapped basis to RPI every five years. The purchase price
reflects a 6% NIY which, based on current and expected RPI growth rates,
should create a running yield of 7% in 2028.
Enhancing sustainability performance through integration, engagement and
active management
By working in partnership with our clients on sustainability initiatives, we
can increase rental income and capital values, while helping them to deliver
their own ESG targets. We have therefore integrated sustainability
considerations throughout the investment lifecycle, as well as our management
of the Group's supply chain and engagement with our clients.
Our objective is to achieve market-leading ESG performance, with a focus on
practical action. Data is integral to maximising our effectiveness, ensuring
we are tracking our performance and continuing to add value to our buildings
through proactive asset management and innovation.
Our ESG strategy has four themes, as set out below, each of which is
underpinned by several targets and KPIs. At the period end we were on track
with all targets for 2025. Further information on our targets can be found on
page 50 of our 2024 Annual Report.
Achievements in H1 2025 included:
· Sustainable buildings: We have continued to enhance the energy
efficiency of our buildings, aligned to the decarbonisation programme
described below. Three existing units achieved improved EPC ratings during the
period. At the period end, 81% of the investment portfolio had an EPC rating
of B or above (31 December 2024: 80%).
· Climate and carbon: In 2024, we introduced a bespoke technology
platform to support our asset-by-asset decarbonisation programme. During the
period we incorporated decarbonisation plans for each asset into the platform,
so we can evaluate our net zero trajectory and include associated capex
requirements in our business plans. We expect these initiatives will further
improve EPC ratings, with the platform enabling us to forecast EPC improvement
across the portfolio. We are continuing to develop the platform, to create a
full sustainability repository and analysis tool, combining decarbonisation
plans, climate impact, power resilience and biodiversity, with the ability to
integrate with our Investment Modelling platform. We are also looking to align
our decarbonisation plans with the requirements of the Science-Based Targets
initiative.
Other year-to-date activities include increasing the portfolio's solar PV
capacity by 3.8MWp, through schemes at the Merseyside, Darlington, Biggleswade
and Leamington Spa assets, bringing the total solar PV capacity of the
investment portfolio to 28.3MWp. We expect to complete schemes totalling
around 7.0MWp on our standing assets and new developments during 2025.
· Natural capital: We continue to enhance biodiversity on the
common parts of our estates, for example through planting schemes and
inclusion of bee hives. Information on our approach to biodiversity net gain
on new developments can be found in the insight driven development and
innovation section. We are trialing different methodologies to evidence the
positive impact of our biodiversity initiatives.
· People and communities: Our social value strategy focuses on
developing young people's skills in regions where we own assets. This supports
our clients by developing potential employees for the future, thereby
enhancing the resilience of the asset and location. Our approach is
facilitated by our partnerships with Schoolreaders, the King's Trust and the
charity Education and Employers. We are reviewing the various methodologies
for measuring social value, which will enable us to track progress and set
meaningful targets in this area.
During the period, we retained our MSCI AA rating and our B rating from CDP.
3) Insight driven development and innovation
Logistics developments - key figures Six months to Six months to Change
30 June 2025 30 June 2024
Development completions (million sq ft) 0.4 0.8 (50.0)%
Development completions let (million sq ft) 0.1 0.8 (87.5)%
Development completions let (£m to passing rent) 1.5 7.4 (79.7)%
DMA completions (million sq ft) 0.4 0.0 -
Development starts (million sq ft) 1.1 0.9 22.2%
Of which are DMA 0.3 0.4 (25.0)%
Development starts (£m ERV) 10.1 4.6 119.6%
Development lettings (million sq ft) 0.0 0.1 -
Development lettings (£m) 0.0 1.3 -
Average development yield on cost (%) - 7.1 -
Planning consents secured (million sq ft) 0.3 1.0 (70.0)%
Total planning consented land (million sq ft) 4.5 6.2 (27.4)%
Continued logistics development progress
We made further good progress with our development pipeline in H1 2025:
· 0.4 million sq ft of developments reached practical completion in
the period, with the potential to add £4.1 to passing rent;
· we started construction on 1.1 million sq ft of logistics space;
· developments under construction totalled 2.5 million sq ft at the
period end, of which 54% has been pre-let or pre-sold; and
· we reported a 50% reduction in developments reaching completion
in the period. This reduction reflected higher completions in the prior period
which was attributed to our acceleration of development starts in response to
exceptional occupational demand in the 2022/2023 period and the subsequent
reversion back to our long-term 2-3 million sq ft of development starts.
We have seen an uptick in occupational interest in recent months, which we
expect to convert to increased leasing activity in H2 2025. At the date of
this report, we had:
· completed a 0.4 million sq ft letting at our scheme in Rugby post
the period end adding £3.9 million to contractual rent
· 0.9 million sq ft of development lettings in solicitors' hands,
with potential annual rental income of £8.8 million.
· 2.1 million sq ft of pre-lets in discussions
· 1.2 million sq ft of speculative space in negotiations with the
potential to add £10.7 million to rental income.
We continue to expect development starts for FY25 to be in line with FY24
levels and therefore at the lower end of our 2-3 million sq ft guidance,
whilst delivering yields on cost towards the upper end of our 6-8% guidance
range. DMA income is expected to contribute approximately £15 million to FY25
operating profit.
A carefully considered and low-risk approach to developing logistics assets
Developing logistics assets complements our investment portfolio by enhancing
overall returns, as we target a yield on cost of 6-8% while carefully managing
risk. We expect our 2025 schemes to achieve an average yield on cost of 7-8%.
We control the UK's largest land portfolio for logistics development. It has
the potential to deliver approximately 39.3 million sq ft of new space through
developments, with the scope to generate £347 million of contracted rent. Of
this, c.£78 million is deliverable within 36 months, with £11 million
already secured. The pipeline is diversified geographically across 26 sites in
prime locations and is highly flexible, enabling us to match our clients'
requirements from urban or last mile assets to "mega boxes". Once built and
let these developments become investment assets for us.
We hold most of the land portfolio through long-term options. These are
capital efficient and reduce risk, as we typically only buy the land once we
have received planning consent. This provides control over the quantum and
timing of our purchases. The options include a typical 15-20% discount to
prevailing land prices at the point of acquiring the land and we can offset
much of the site's planning and infrastructure costs against the purchase
price. This means we typically secure an attractive development profit on
drawdown and are partially insulated from the impact of changing land values
over the longer term.
Another significant benefit of holding land under long-dated options is the
flexibility it gives us to adjust our development activity upwards or
downwards to match prevailing market conditions and optimise performance.
Our Investment Policy limits land and development exposure to 15% of GAV,
including a maximum exposure to speculative development of 5% of GAV. At the
period end we remained well within these limits:
· land and development exposure was 9.2% of GAV; and
· speculative exposure (based on aggregated costs) was 3.6%.
The UK's largest land portfolio for logistics development capable of
delivering 39.3 million sq ft
We categorise our development portfolio based on the timing of opportunities:
1) Current development pipeline - assets under construction, which are either
pre-let, let during construction or speculative developments. The Group owns
these sites.
2) Near-term development pipeline - sites with planning consent received or
submitted, and where we aim to begin construction in the next three years. The
Group will own some of these sites, with others held under option pending
planning consent or where we have achieved outline planning but have yet to
acquire the land.
3) Future development pipeline - longer-term land opportunities, which are
principally held under option, and which are typically progressing through the
planning process.
1) Current development pipeline - assets under construction to be delivered in
next 12 months
At 30 June 2025, the Group had the following assets in the current development
pipeline. The total estimated cost to complete is £77.1 million and the
assets have the potential to add £23.1 million to annual passing rents.
Costs of completion
H2 2025 H1 2026 H2 2026 Total Total sq ft Contractual
rent / ERV
£m £m £m £m m £m
Current speculative 30.6 0.5 1.5 32.6 1.2 12.0
Current pre-let 36.9 4.7 2.9 44.5 1.0 11.1
Total 67.5 5.2 4.4 77.1 2.2 23.1
2) Near-term development pipeline - construction expected to commence in next
12 - 36 months
At the period end, the near-term development pipeline consisted of land
capable of accommodating 5.7 million sq ft of logistics space and delivering
£54.7 million of annual rent.
Of this:
· 3.5 million sq ft relates to land with planning consent; and
· 1.5 million sq ft relates to sites where we have planning
submission pending or have submitted a planning application.
The table below presents the near-term development pipeline at the period end.
Movements in the figures are driven by construction starts (which will move
space to the current development pipeline), or changes in our view on the
likely timing of starts, resulting in movements between the two categories
below.
The ERVs shown below are based on current market rents and therefore assume no
further rental growth before the schemes become income-producing.
Total sq ft Current book value Estimated cost to completion ERV
(Uncommitted)
£m £m £m
Potential near-term starts in the next 12 months 1.1 24.3 124.2 10.1
Potential near-term starts in the following 24 months 4.6 70.4 552.9 44.5
5.7 94.7 677.1 54.6
3) Future development pipeline
The future development pipeline is predominantly controlled under longer-term
option agreements. Most option agreements contain an extension clause,
allowing us to extend the option expiry date where necessary.
The future development pipeline has sites at various stages of the planning
process, with multiple sites being currently promoted through local plans. We
have continued to replenish the pipeline by securing options over new sites.
We are awaiting decisions on longer-term planning applications supporting our
future development pipeline totalling 4.2 million sq ft at 30 June 2025.
During the period, the Group recorded an impairment against intangible and
other property assets of £25.5 million (H1 2024: £0.2 million). The majority
of this impairment relates to a single site held under land option where our
expectations on the possible likelihood and timing of achieving planning
consent changed in the period. Given the sites national significance,
including its potential as a lower-carbon rail freight connected logistics
hub, planning consent was being progressed through a Development Consent Order
(DCO) with the ultimate decision made by the Secretary of State. In March
2025, the Secretary of State did not grant planning consent to the scheme in
our proposed form. The impairment represents approximately half of the overall
value of the option and associated costs (noting that a proportion of the
overall acquisition consideration for DB Symmetry had been allocated to this
option). The remaining carrying value on the balance sheet is supported by a
third-party opinion of value in respect of the land option valuation. The
development team is now revising its plans for the site on the basis of
feedback from the DCO process to seek alternative routes to its potential
development.
At 30 June 2025, the future development pipeline comprised 1,525 net acres
with the potential to support up to 32.4 million sq ft of development and
generate around £269.3 million of contracted rent, again assuming no market
rental growth.
Development Management Agreements (DMA) and DMA income
While our development programme primarily creates assets for the investment
portfolio, we occasionally work with a client to develop an asset for freehold
sale to them, where this may help us to gain planning, open up a site and
accelerate our profit capture.
We undertake these freehold sales through a Development Management Agreement
(DMA), under which we manage the development of an asset in return for a fee
and/or profit share. The Group does not own the site during construction or
the completed investment and DMAs are therefore excluded from our asset
portfolio. DMAs deliver a high-return, capital light but variable source of
profit, which we can recycle into other development or investment activity.
Included with the DMA categorisation are pre-sales, where we sell land and
then typically undertake development services for the new landowner. In H1
2025, we reached practical completion on a 0.4 million sq ft unit that was
pre-sold to Siemens Healthineers. We also started on site for a 0.3 million sq
ft DMA for Greggs.
The treatment and impact of DMA income is discussed in the Financial review.
Enhancing ESG through our development activities
ESG is a core element of our approach to development. Our progress in the
period included:
· Sustainable buildings: Two units delivered through our development
programme in Merseyside and Darlington achieved EPC ratings of A and A+
respectively, with both also set to achieve BREEAM Excellent ratings. All
units in our logistics development programme are built to achieve net zero in
construction.
· Natural capital: Biodiversity net gain regulations are in force
for new developments. These commitments can be met by purchasing credits and
we have also been reviewing how to meet them through active management of
additional land. This links with our active works on the common parts of our
estates, as described in the enhancing sustainability performance through
integration, engagement and active management section.
Power-first data centres to deliver exceptional returns
We see opportunities to deliver exceptional returns to shareholders through
pre-let data centre developments, and made excellent progress towards this in
the first half of the year.
Data centre operators need any new asset to have:
· Significant amounts of power. It is increasingly common for a
data centres to consume 50-100MW of power. For context, 100MW is equivalent to
the power consumption of Milton Keynes, which has a population of 287,000.
· Proximity to other data centres. Clustering data centres in an
'availability zone' provides availability, resilience and scalability. London
is the UK's key zone, with Slough the most prime.
· Connectivity to data infrastructure. This ensures quality of
service. Cloud services and AI are particularly sensitive to latency caused by
remoter locations.
We have taken an innovative "power-first" approach to developing data centre
assets, recognising the acute scarcity of deliverable grid connections. In key
availability zones the wait times for power connections are more than ten
years, which significantly restricts development of data centres in these
locations.
Our power-first model:
· Utilises our deep in-house understanding of the UK power network.
· Identifies and secures existing grid connection agreements in key
data centre locations.
· Identifies and secures an appropriate site.
This means our data centre developments can be income producing up to a decade
earlier than following the traditional real estate model of securing the land
first. We will provide the client with a 'powered shell', in which the client
is responsible for fitting out, operating and maintaining the data centre.
In January 2025, we announced that we had purchased a 74-acre site ('Manor
Farm') at Heathrow, London, within the Slough Availability Zone.
Simultaneously, we established a 50% share in a joint venture with EDF
Renewables. This enables accelerated power delivery to the Manor Farm site
using pre-existing grid connection agreements, with 107MW to be provided in H2
2027 and 40MW in 2029. This connectivity is supported by utility-scale battery
storage. Manor Farm will be one of the UK's largest data centres, with the
potential to deliver rental income of approximately £34.0 million per annum
and a targeted yield on cost of 9.3%.
The capital requirements for Manor Farm are as follows:
· Initial funding of £80.0 million, covering the initial land
purchase (£70.0 million), the 50% joint venture stake (£6.1 million) and
associated costs (£3.9 million);
· £185 million of capital expenditure, contingent on successful
planning and securing pre-let; and
· c.£100 million of costs contingent on success, including
contingent land consideration and Tritax Management Limited's profit share,
50% of which will be paid in Company shares.
We have received strong occupational interest in Manor Farm, with NDAs signed
with hyper-scalers and significant co-locators. The planning process is
ongoing and we are targeting receipt of consent by the end of 2025.
During H1 2025, we also secured a second data centre site, located in the
broader London availability zone. It has an initial 125MW with the potential
for future expansion, and power delivery scheduled for 2028. Subject to
planning and pre-letting, construction could begin in 2027, it has the
potential to deliver £23-25 million of annual rent, and a highly attractive
10-11% yield on cost.
We have a pipeline of further grid connection agreements totalling over 1GW.
The attractions of this market are reflected in our guidance for powered shell
data centre opportunities, with our target yield on cost now increased to
9-11%. We expect our total capital expenditure on data centre development to
be around £200 million in FY25 and £100-200 million per annum longer term.
Further information on the data centre market, our power-first model and our
pipeline can be found in our 30 June 2025 Capital Markets Day presentation,
which is available on our website.
Financial review
Overview
The Group delivered a robust financial performance in H1 2025. Net rental
income increased by 17.3%, primarily reflecting the inclusion of the UKCM
assets for the full six months. In H1 2024, the UKCM portfolio was
consolidated for the final six weeks of the period. Net rental income is also
impacted by other net investment activity, along with results from our asset
management activity and development activity. The Group recognised £13.3
million of DMA income in the period (H1 2024: £12.2 million).
Adjusted EPS grew by 6.4% to 4.63 pence (H1 2024: 4.35 pence). Adjusted EPS
excluding addition DMA income was 4.29 pence (H1 2024: 4.10 pence), an
increase of 4.6%. The key constituents of Adjusted EPS growth in the period
are shown in the table below:
Pence
Adjusted EPS in H1 2024 4.35
Less: Additional DMA (0.25)
4.10
Net revenue:
- Investment assets 0.08
- Development activity 0.12
- Acquisitions 0.08
- UKCM Acquisition (includes dilution from share issue) 0.08
- Disposals (0.10)
Administrative Expense (0.11)
Net finance (0.13)
Other 0.17
2025 Adjusted Earnings (exc. Add DMA) 4.29
Additional DMA 0.34
2025 Adjusted Earnings 4.63
The total dividend for the period was 3.83 pence per share (H1 2024: 3.65
pence), an increase of 4.9% and in line with the Group's dividend policy.
The EPRA NTA per share at 30 June 2025 was 188.17 pence (31 December 2024:
185.56 pence), partly as a result of the £92.2 million gain recognised on
change in fair value of investment properties (H1 2024: £96.5 million).
The business remains soundly financed, with the Group's LTV increasing
modestly to 30.9% (31 December 2024: 28.8%), as a result of the net investment
made in capital expenditure in the year, which has been used to further
progress our logistics developments and commence our deployment into data
centre projects. During the period and subsequently, Moody's Ratings has
maintained the Company's credit rating outlook at Baa1 (positive) and
reaffirmed its long-term corporate credit rating.
Presentation of financial information
The financial information is prepared under IFRS. The Group's subsidiaries are
consolidated at 100% and its interests in joint ventures are equity accounted
for.
The Board continues to see Adjusted EPS( 10 (#_ftn10) )as the most relevant
measure when assessing dividend distributions. Adjusted EPS is based on EPRA's
Best Practices Recommendations and excludes items considered to be
exceptional, not in the ordinary course of business or not supported by
recurring cash flows.
Financial results
Net rental income
Net rental income grew by 17.3% to £149.2 million (H1 2024: £127.2 million).
Contracted annual rent at the period end was £311.3 million (31 December
2024: £313.5 million), with the movement reconciled below. The annual passing
rent at the period end was £300.1 million (31 December 2024: £296.8
million).
Contracted annual rent £m
As at 31 December 2024 313.5
Development lettings 6.7
Rental reviews and asset management 5.6
Disposals (13.0)
Lease expiry (1.5)
As at 30 June 2025 311.3
Other operating income - Development Management Agreement (DMA) income
As described in the insight driven development and innovation section, the
Group earns DMA income from developing for third parties or pre-selling
developments to owner-occupiers. This is an attractive and profitable activity
as the third party typically funds the development, resulting in a high return
on capital for us. We include DMA income within Adjusted earnings, as it is
supported by cash flows.
However, DMA income is more variable than property rental income and its
timing can affect our earnings from period to period. In H1 2025, the Group
recorded DMA income of £13.3 million (H1 2024: £12.2 million). Our guidance
for DMA income for the full year is approximately £15 million.
Over the medium-term, we expect the run rate for DMA income to be £3.0-5.0
million per year. To aid comparability across periods and to give us a
recurring earnings figure to base our dividend on, we also calculate Adjusted
earnings excluding DMA income above this run rate (see profit and earnings
below). The additional DMA income is then available to be recycled into
further opportunities across our development pipeline and/or other investment
opportunities.
Administrative and other expenses
Administrative and other expenses, which include all the operational costs of
running the Group, were £18.4 million (H1 2024: £15.6 million). The
Investment Management fee for the period was £13.3 million (H1 2024: £11.4
million), with the increase due to a greater EPRA NTA over the period
following the share consideration issued in respect of the UKCM transaction in
2024.
The EPRA Cost Ratio (including vacancy cost) was 13.8% (H1 2024: 12.5%), this
was similar to the level in December 2024, but an increase over June 2024 due
to the assumed vacancy from the UKCM portfolio. The EPRA Cost Ratio (excluding
vacancy cost) was 12.9% (H1 2024: 12.4%), demonstrating our continued
prioritisation of a low cost based for the Group relative to our peers.
Operating profit
Operating profit before changes in fair value and other adjustments was
£144.1 million (H1 2024: £123.8 million).
During the period, the Group sold £204.8 million of investment assets. When
taking into account transaction costs, the Group has recorded a loss on
disposal of investment property in the period of £5.3 million.
The Group has recorded an impairment against intangible and other property
assets of £25.5 million (H1 2024: £0.2 million) more details of which are
provided on page 18 in the Manager's Report.
Financing costs
Net financing costs for the period were £32.2 million (H1 2024: £28.9
million), excluding the loss in the fair value of interest rate derivatives of
£4.9 million (H1 2024: £1.3 million loss). The weighted average cost of debt
at the period end was 3.21% (31 December 2024: 3.05%), with 86% (31 December
2024: 93%) of the Group's drawn debt being either fixed rate or covered by
interest rate caps (see hedging policy below).
The movement in net financing costs therefore reflects the increase in average
drawn debt throughout the period, which stood at £2,106.9 million (H1 2024:
£1,792.4 million). The Group capitalised £6.7 million of interest expense in
the period (H1 2024: £1.6 million), reflecting the capital deployed into
active development projects including our data centre projects.
The interest cover ratio, calculated as operating profit before changes in
fair value and other adjustments divided by net finance expenses, was 4.5x (H1
2024: 4.3x). The net debt to EBITDA ratio for the 12 months to 30 June 2025
was 7.9x (31 December 2024: 7.3x).
Tax
The Group has continued to comply with its obligations as a UK REIT and is
exempt from corporation tax on its property rental business.
A tax charge of £1.5 million arose in the period, on profits not in relation
to property rental business (H1 2024: £3.1 million).
Profit and earnings
Profit before tax was £168.3 million (H1 2024: £190.2 million), with the
movement between the two periods primarily reflecting the overall growth in
operating profit before changes in fair value and other adjustments, the
valuation performance of the Group's investment properties, impairment charges
(see portfolio valuation below) plus the difference in net finance expense.
IFRS EPS was 6.72 pence (H1 2024: 9.14 pence). Basic EPRA EPS, which excludes
the impact of property valuation movements and the impairment charge, was 4.53
pence (H1 2024: 4.49 pence (restated)).
Adjusted EPS 10 (#_ftn11) for the six months was 4.63 pence (H1 2024: 4.35
pence) (see note 8 for the calculation). The metric we see as closest to
recurring earnings is Adjusted EPS excluding additional DMA income above the
anticipated run-rate, which was 4.29 pence for the period (H1 2024: 4.10
pence), an increase of 4.6%.
Dividends
We aim to deliver an attractive and progressive dividend. The Board's policy
is for the first three quarterly dividends to each represent 25% of the
previous full-year dividend, with the fourth-quarter dividend determining any
progression. The aim is to achieve an overall pay-out ratio in excess of 90%
of Adjusted earnings.
Following this policy, the Board has declared the following interim dividends
in respect of H1 2025:
Declared Amount per share In respect of three months to Paid/to be paid
8 May 2025 1.915p 31 March 2025 13 June 2025
6 August 2025 1.915p 30 June 2025 5 September 2025
Total 3.83p
The total dividend for the period of 3.83 pence was up 4.9% on the prior
period (H1 2024: 3.65 pence). The pay-out ratio was 89% of Adjusted EPS
excluding additional DMA income.
The cash cost of the dividends in relation to the period was £101.7 million
(H1 2024: £84.3 million) (see note 9 for the calculation).
Portfolio valuation
The total portfolio value at 30 June 2025 was £6.82 billion (31 December
2024: £6.55 billion), including the Group's share of joint ventures:
30 June 2025 31 December 2024
£m £m
Investment properties 6,414.4 5,929.4
Other property assets 0.9 1.7
Land options 125.8 148.8
Share of joint ventures 25.1 24.4
Assets held for sale 253.4 440.4
Portfolio value 6,819.6 6,544.7
CBRE and JLL independently value the Group's assets that are leased,
pre-leased or under construction. These assets are recognised in the Group
Statement of Financial Position at fair value. The gain recognised on
revaluation of the Group's investment properties was £92.2 million (H1 2024:
£96.5 million gain). The investment portfolio equivalent yield at the period
end remained stable at 5.7% (31 December 2024: 5.7%). This was supplemented by
continued progress with the development programme and further growth in ERVs,
which were 2.3% higher over the period.
Colliers independently values all owned and optioned land. Under IFRS, land
options are recognised at cost and subject to impairment review. As at 30 June
2025, the Group's investment in land options totalled £125.8 million (31
December 2024: £148.8 million). During the period, we recorded an impairment
charge of £25.5 million against the Group's option held on land a single
strategic site more details of which are provided on page 18 in the Manager's
Report.
The share of joint ventures in the table above comprises 50% interests in
certain SPVs, relating to land and land options, as well as the Manor Farm
Joint Venture. These are equity accounted for and appear as a single line item
in the Statement of Comprehensive Income and Statement of Financial Position.
Capital expenditure
Capital expenditure totalled £443.8 million in the period (H1 2024: £1,300.1
million). This comprised £76.0 million of investment in the purchase of one
big box logistics asset, £166.8 million of capital investment in the Group's
logistics development programme and £201.0 million related to our data centre
projects, which included acquiring the Manor Farm site, our second data centre
site and a grid connection agreement. Capital expenditure in the prior period
included the acquisition of the UKCM portfolio, which totalled £1,163.6
million.
Embedded value within land options
As land under option approaches the point of receiving planning consent, any
associated risk should reduce and the fair value should increase. When
calculating EPRA NTA, the Group therefore makes a fair value mark-to-market
adjustment for land options. At the period end, the fair value of land options
was £12.8 million greater (31 December 2024: £18.0 million greater) than
costs expended to date.
Net assets
The EPRA NTA per share at 30 June 2024 was 188.17 pence (31 December 2024:
179.33 pence). The table below reconciles the movement during the period:
p
As at 31 December 2024 185.56
Operating profit net of finance costs 4.56
Investment assets 2.71
Non-Core assets (1.12)
Development assets 1.92
Land options (1.24)
Other (0.12)
Dividends paid (4.09)
As at 30 June 2025 188.17
The Total Accounting Return for the period, which is the change in EPRA NTA
plus dividends paid, was 3.6% (H1 2024: 3.4%).
Debt capital
At 30 June 2025, the Group had the following borrowings:
Lender Maturity Loan commitment Notional amount drawn at Balance sheet carrying value at 30 June 2025
30 June 2025
£m £m £m
Loan notes
2.625% Bonds 2026 Dec-26 250.0 250.0 249.8
2.86% Loan notes 2028 Feb-28 250.0 250.0 250.0
2.98% Loan notes 2030 Feb-30 150.0 150.0 150.0
3.125% Bonds 2031 Dec-31 250.0 250.0 248.4
1.5% Green Bonds 2033 Nov-33 250.0 250.0 247.5
Bank borrowings
RCF (syndicate of seven banks) Oct-28 500.0 302.0 302.0
RCF (syndicate of eleven banks) Jun-30 400.0 188.0 188.0
Helaba Jul-28 50.9 50.9 50.9
PGIM Real Estate Finance Mar-27 90.0 90.0 90.0
Canada Life Apr-29 72.0 72.0 72.0
Barclays Oct-27 150.0 150.0 150.0
Barings Real Estate Advisers Apr-27 100.0 100.0 100.0
Barings Real Estate Advisers Feb-31 100.0 100.0 100.0
Total 2,612.9 2202.9 2198.6
In June 2025, we announced that we had entered into a new £400.0 million
unsecured RCF with a syndicate of existing and new lenders, to refinance the
previous £300.0 million RCF and provide further capacity to support our
investment and development activities. The new RCF has an initial five-year
term and can be extended to seven years with lender consent. It also contained
an uncommitted £200.0 million accordion option. It features the same margin
ratchet as the previous facility, with an opening margin of 110bps and a
margin reduction in future if the Company receives a rating upgrade to A3 or
higher from Moody's or the equivalent from S&P or Fitch.
We also refinanced a £150 million facility with Barclays, agreeing a £150.0
million term loan that matures in October 2027 and may be extended by up to
three years with lender consent. It aligns with our ESGG strategy, as it
incorporates a sustainability linked margin adjustment, as well as benefiting
from the same margin ratchet as the new RCF.
Of the Group's drawn debt as at 30 June 2025, 68.6% was at fixed interest
rates. For most of its variable rate debt, the Group uses interest rate caps
which run coterminous with the respective loan and protect the Group from
significant increases in interest rates. During the period, we extended the
current hedging profile by securing new interest rate caps on £200.0 million
of debt for 12 months, at a cost of £2.5 million. As a result, the Group had
either fixed or capped rates on 86.3% of its drawn debt at the period end and
the average cost of borrowing at 30 June 2025 was in line with previous year
end, at 3.21% (31 December 2024: 3.05%).
Debt maturity
At the period end, the Group's debt had an average maturity of 4.2 years (31
December 2024: 4.5 years). Our policy is to look to refinance the Group's
borrowings around 12 months ahead of their maturity. The next maturity falls
in December 2026.
Loan to value (LTV)
The Group has a conservative leverage policy. At the period end, the LTV was
30.9% (31 December 2024: 28.8%), with the increase reflecting our capital
expenditure on our logistics and data centre development programmes, partially
offset by continued good progress with recycling capital through asset
disposals.
Net debt and operating cash flow
Net debt at the period end was £2,109.2 million (31 December 2024: £1,883.3
million), comprising £2,202.9 million of gross debt less £66.9 million of
available cash held (31 December 2024: £1,963.9 million gross debt, £80.6
million cash).
Net operating cash flow was £100.0 million for the six months (H1 2024:
£84.4 million).
Guidance
The table below summarises our current guidance:
Aspect Guidance
Portfolio rental reversion capture Potential opportunity to capture 77% in the next three years.
Logistics - development capex FY25: £200-250 million; longer-term: £200-250 million per annum
Logistics - development yield on cost FY25 development starts: 7-8%; longer-term: 6-8%
Data centre - development capex FY25: £200 million; longer-term: £100-200 million per annum
Data centre - development yield on cost Targeting 9.3% for Manor Farm; longer-term: 9-11%
DMA income Approximately £15 million for FY25. Expected run rate of £3.0-5.0 million
per year thereafter, although we will guide accordingly
Disposals FY25: £350-450 million; longer-term: £250-350 million
LTV Below 35%
Going concern
We continue to have a healthy liquidity position, with strong levels of rent
collection, a favourable debt maturity profile and debt costs which are
substantially fixed or hedged.
The Directors have reviewed our current and projected financial position over
a five-year period, making reasonable assumptions about our future trading
performance. Various forms of sensitivity analysis have been performed, in
particular regarding the financial performance of our clients and expectations
over lease renewals. As at 30 June 2025, our property values would have to
fall by approximately 50% before our loan covenants are breached at the
corporate level.
At the period end, we had £410.0 million of undrawn commitments under our
senior debt facilities and £66.9 million of cash, of which £77.1 million
(see note 20) was committed under various development and purchase contracts.
Our loan to value ratio stood at 30.9%, with the debt portfolio having an
average maturity term of approximately 4.2 years.
As at the date of approval of this report, we had substantial headroom within
our financial loan covenants. Our financial covenants have been complied with
for all loans throughout the period and up to the date of approval of these
financial statements. As a result, the Directors have a reasonable expectation
that the Company and the Group have adequate resources to continue in
operational existence for the foreseeable future, which is considered to be to
6 August 2026.
Credit rating
The Group has a Baa1 long-term credit rating and positive outlook from Moody's
Investor Services.
Alternative Investment Fund Manager (AIFM)
The Manager is authorised and regulated by the Financial Conduct Authority as
a full-scope AIFM. The Manager is therefore authorised to provide services to
the Group and the Group benefits from the rigorous reporting and ongoing
compliance applicable to AIFMs in the UK.
As part of this regulatory process, Langham Hall UK Depositary LLP (Langham
Hall) is responsible for cash monitoring, asset verification and oversight of
the Company and the Manager. In performing its function, Langham Hall conducts
a quarterly review during which it monitors and verifies all new acquisitions,
share issues, loan facilities and other key events, together with shareholder
distributions, the quarterly management accounts, bank reconciliations and the
Company's general controls and processes. Langham Hall provides a written
report of its findings to the Company and to the Manager, and to date it has
not identified any issues. The Company therefore benefits from a continuous
real-time audit check on its processes and controls.
Post balance sheet activity
In the period post the balance sheet date, the Group sold or exchanged to sell
£73.4 million of investment assets.
Key performance indicators
Our objective is to deliver attractive, low-risk returns to Shareholders, by
executing the Group's Investment Policy and operational strategy. Set out
below are the key performance indicators we use to track our progress. For a
more detailed explanation of performance, please refer to the Manager's
Report.
KPI Relevance to strategy Performance
1. Total accounting return (TAR) TAR calculates the change in the EPRA net tangible assets (EPRA NTA) over the 3.6% for the six months to 30 June 2025
period plus dividends paid. It measures the ultimate outcome of our strategy,
which is to deliver value to our shareholders through our portfolio and to (H1 2024: 3.4%, FY 2024: 9.0%)
deliver a secure and growing income stream.
2. Dividend The dividend reflects our ability to deliver a low-risk but growing income 3.83p per share for the six months to 30 June 2025
stream from our portfolio and is a key element of our TAR.
(H1 2024: 3.65p, FY 2023: 7.66p)
3. EPRA NTA per share(1) The EPRA NTA reflects our ability to grow the portfolio and to add value to it 188.17p at 30 June 2025
throughout the lifecycle of our assets.
(30 June 2024: 179.33p, 31 December 2024: 185.56p).
4. Loan to value ratio (LTV) The LTV measures the prudence of our financing strategy, balancing the 30.9% at 30 June 2025
potential amplification of returns and portfolio diversification that come
with using debt against the need to successfully manage risk. (30 June 2024: 29.9%, 31 December 2024: 28.8%).
5. Adjusted earnings per share The Adjusted EPS reflects our ability to generate earnings from our portfolio, 4.63p per share for the six months to 30 June 2025
which ultimately underpins our dividend payments.
(H1 2024: 4.35p, FY 2024: 8.91p)
Excluding additional development management income, Adjusted EPS was 4.29p (H1
2024: 4.10p). See note 8 within EPRA and other key performance indicators.
6. Weighted average unexpired lease term (WAULT) The WAULT is a key measure of the quality of our portfolio. Long lease terms 10.3 years at 30 June 2025
underpin the security of our income stream.
(30 June 2024: 10.1 years, 31 December 2024: 10.3 years).
7. Global Real Estate Sustainability Benchmark (GRESB) score The GRESB score reflects the sustainability of our assets and how well we are 85/100 and 4 Green Star rating for 2024
managing ESG risks and opportunities. Sustainable assets protect us against
climate change and help our clients to operate efficiently. (2023: 85/100, 4 Green Star rating)
99/100 and 5 Green Star rating for developments for 2024 and the GRESB 2024
Regional Listed Sector Leader and Regional Sector Leader for Europe, and
Global Listed Sector Leader and Global Sector Leader, all for the Industrial
sector
(1) EPRA NTA is calculated in accordance with the Best Practices
Recommendations of the European Public Real Estate Association (EPRA). We use
these alternative metrics as they provide a transparent and consistent basis
to enable comparison between European property companies.
EPRA performance indicators
The table below shows additional performance measures, calculated in
accordance with the Best Practices Recommendations of the European Public Real
Estate Association (EPRA). We provide these measures to aid comparison with
other European real estate businesses.
For a full reconciliation of all EPRA performance indicators, please see Notes
to the EPRA and other key performance indicators.
Measure and Definition Purpose Performance
1. EPRA Earnings A key measure of a group's underlying operating results and an indication of £112.4 m / 4.53p per share
the extent to which current dividend payments are supported by earnings.
See note 8 (H1 2024: £91.8m / 4.49p per share (restated),
FY 2024: £202.3m / 8.93p per share).
2. EPRA Net Tangible Assets Assumes that entities buy and sell assets, thereby crystallising certain £4,668.0m / 188.17p per share as at 30 June 2025
levels of unavoidable deferred tax.
See note 18 (30 June 2024: £4,448.7m / 179.33p per share,
31 December 2024: £4,603.2m / 185.56p per share).
3. EPRA Net Reinstatement Value (NRV) Assumes that entities never sell assets and aims to represent the value £5,131.8m / 206.87p per share as at 30 June 2025
required to rebuild the entity.
(30 June 2024: £4.885.9m / 196.96p per share,
31 December 2024: £5,048.5m / 203.51p per share).
4. EPRA Net Disposal Value (NDV) Represents the shareholders' value under a disposal scenario, where deferred £4,817.8m / 194.21p per share as at 30 June 2025
tax, financial instruments and certain other adjustments are calculated to the
full extent of their liability, net of any resulting tax. (30 June 2024: £4,601.2m / 185.48p per share,
31 December 2024: £4,777.8m / 192.60p per share)
5. EPRA Net Initial Yield (NIY) This measure should make it easier for investors to judge for themselves how 4.44% as at 30 June 2025
the valuations of two portfolios compare.
(30 June 2024: 4.36%, 31 December 2024: 4.26%).
6. EPRA 'Topped-Up' NIY This measure should make it easier for investors to judge for themselves how 4.66% as at 30 June 2025
the valuations of two portfolios compare.
(30 June 2024: 4.71%, 31 December 2024: 4.61%).
7. EPRA Vacancy A "pure" (%) measure of investment property space that is vacant, based on 5.6% as at 30 June 2025
ERV.
(30 June 2024: 3.8%, 31 December 2024: 5.7%).
8. EPRA Cost Ratio A key measure to enable meaningful measurement of the changes in a group's 13.8% including vacancy costs (H1 2024: 12.5%, FY 2023: 13.6%).
operating costs.
12.9% excluding vacancy costs (H1 2024: 12.4 %, FY 2024: 12.6%).
9. EPRA LTV A key shareholder-gearing metric to determine the percentage of debt comparing 31.8% as at 30 June 2025
to the appraised value of the properties.
(30 June 2024: 31.0%, 31 December 2024: 30.1%).
Principal risks and uncertainties
The Audit & Risk Committee, which assists the Board with its
responsibilities for managing risk, considers that while some risks may have
increased and some risks reduced in the period, all principal risks and
uncertainties presented on pages 70-75 of our 2024 Annual Report, dated 27
February 2025, remained valid during the period and we believe will continue
to remain valid for the remainder of the year. These risks are summarised
below.
In addition, the Audit & Risk Committee consider the development of
existing and any new emerging risks that have the potential to impact the
business in the future. During the period, amongst other things, key points
for consideration included the Company's investment into data centres, the
continued macroeconomic volatility within the UK and more widely and other
technological based risks.
Property risks
· Client default: the risk of one or more of our clients defaulting
· Portfolio strategy and industry competition: the ability of the
Company to execute its strategy and deliver performance
· Performance of the UK retail sector and the continued growth of
online retail
· Execution of development business plan: there may be a higher
degree of risk within our development portfolio
Financial risks
· Debt financing strategy - LTV, availability and cost of debt
Corporate risk
· We rely on the continuance of the External Manager
Taxation risk
· UK REIT status: we are a UK REIT and have a tax-efficient
corporate structure, which is advantageous for UK Shareholders.
Other risks
· Macroeconomic volatility
· Physical and transition risks from climate change
Statement of directors' responsibilities
We confirm that to the best of our knowledge:
· the condensed set of financial statements has been prepared in
accordance with the Disclosure Guidance and Transparency Rules of the
Financial Services Authority, IAS 34 'Interim Financial Reporting',
· the interim management report includes a fair review of the
information required by:
(a) DTR 4.2.7R of the Disclosure Guidance and Transparency Rules, being an
indication of important events that have occurred during the first six months
of the financial year and their impact on the condensed set of financial
statements; and a description of the principal risks and uncertainties for
the remaining six months of the year; and
(b) DTR 4.2.8R of the Disclosure Guidance and Transparency Rules, being
related party transactions that have taken place in the first six months of
the current financial year and that have materially affected the financial
position or performance of the entity during that period; and any changes in
the related party transactions described in the last annual report that could
do so.
Shareholder information is as disclosed on the Tritax Big Box REIT plc
website.
For and on behalf of the Board
Aubrey Adams OBE (Chairman)
5 August 2025
Independent review report to Tritax Big Box REIT plc
Conclusion
Based on our review, nothing has come to our attention that causes us to
believe that the condensed set of financial statements in the half-yearly
financial report for the six months ended 30 June 2025 is not prepared, in all
material respects, in accordance with UK adopted International Accounting
Standard 34 and the Disclosure Guidance and Transparency Rules of the United
Kingdom's Financial Conduct Authority.
We have been engaged by the company to review the condensed set of financial
statements in the half-yearly financial report for the six months ended 30
June 2025 which comprises the condensed group statement of comprehensive
income, the condensed group statement of financial position, the condensed
group statement of changes in equity, the condensed group cash flow statement
and notes to the consolidated accounts.
Basis for conclusion
We conducted our review in accordance with the International Standard on
Review Engagements (UK) 2410, "Review of Interim Financial Information
Performed by the Independent Auditor of the Entity" ("ISRE (UK) 2410"). A
review of interim financial information consists of making enquiries,
primarily of persons responsible for financial and accounting matters, and
applying analytical and other review procedures. A review is substantially
less in scope than an audit conducted in accordance with International
Standards on Auditing (UK) and consequently does not enable us to obtain
assurance that we would become aware of all significant matters that might be
identified in an audit. Accordingly, we do not express an audit opinion.
As disclosed in note 1, the annual financial statements of the group are
prepared in accordance with UK adopted international accounting standards. The
condensed set of financial statements included in this half-yearly financial
report has been prepared in accordance with UK adopted International
Accounting Standard 34, "Interim Financial Reporting.
Conclusions relating to going concern
Based on our review procedures, which are less extensive than those performed
in an audit as described in the Basis for conclusion section of this report,
nothing has come to our attention to suggest that the directors have
inappropriately adopted the going concern basis of accounting or that the
directors have identified material uncertainties relating to going concern
that are not appropriately disclosed.
This conclusion is based on the review procedures performed in accordance with
ISRE (UK) 2410, however future events or conditions may cause the group to
cease to continue as a going concern.
Responsibilities of directors
The directors are responsible for preparing the half-yearly financial report
in accordance with the Disclosure Guidance and Transparency Rules of the
United Kingdom's Financial Conduct Authority.
In preparing the half-yearly financial report, the directors are responsible
for assessing the company's ability to continue as a going concern,
disclosing, as applicable, matters related to going concern and using the
going concern basis of accounting unless the directors either intend to
liquidate the company or to cease operations, or have no realistic alternative
but to do so.
Auditor's responsibilities for the review of the financial information
In reviewing the half-yearly report, we are responsible for expressing to the
company a conclusion on the condensed set of financial statement in the
half-yearly financial report. Our conclusion, including our conclusions
relating to going concern, are based on procedures that are less extensive
than audit procedures, as described in the Basis for conclusion paragraph of
this report.
Use of our report
Our report has been prepared in accordance with the terms of our engagement to
assist the company in meeting the requirements of the Disclosure Guidance and
Transparency Rules of the United Kingdom's Financial Conduct Authority and for
no other purpose. No person is entitled to rely on this report unless such a
person is a person entitled to rely upon this report by virtue of and for the
purpose of our terms of engagement or has been expressly authorised to do so
by our prior written consent. Save as above, we do not accept responsibility
for this report to any other person or for any other purpose and we hereby
expressly disclaim any and all such liability.
BDO LLP
Chartered Accountants
London, United Kingdom
5 August 2025
BDO LLP is a limited liability partnership registered in England and Wales
(with registered number OC305127).
Condensed group statement of comprehensive income
For the six months ended 30 June 2025
Note Six months ended Six months ended Year ended
30 June 2025 30 June 2024 31 December 2024
(unaudited) (unaudited) (audited)
£m £m £m
Gross rental income 152.4 127.5 281.1
Service charge income 7.8 3.0 13.1
Service charge expense (9.1) (3.3) (15.6)
Direct property cost (1.9) - (2.6)
Net rental income 149.2 127.2 276.0
Other operating income 4 90.6 42.3 86.3
Other operating costs 5 (77.3) (30.1) (63.3)
Net other operating income 13.3 12.2 23.0
Administrative and other expenses (18.4) (15.6) (33.7)
Operating profit before changes in fair value and other adjustments(1) 144.1 123.8 265.3
Changes in fair value of investment properties 92.2 96.5 243.7
(Loss)/gain on disposal of investment properties (5.3) - 8.4
Share of profit from joint ventures 0.1 - 0.1
Dividend Income 1.2 - 0.2
Fair value movements in financial asset (1.4) 0.3 0.9
Impairment of intangible and other property assets 11 (25.5) (0.2) (4.0)
Operating profit 205.4 220.4 514.6
Finance income 4.5 3.7 8.4
Finance expense 6 (36.7) (32.6) (71.9)
Changes in fair value of interest rate derivatives (4.9) (1.3) (5.3)
Profit before taxation 168.3 190.2 445.8
Taxation 7 (1.5) (3.1) (0.3)
Profit and total comprehensive income 166.8 187.1 445.5
Earnings per share - basic and diluted 8 6.72p 9.14p 19.67p
(1) Operating profit before changes in fair value of investment properties,
gain/(loss) on disposal of investment properties, share of profit from joint
ventures, dividend income, fair value movements in financial assets,
impairment of intangible and other property assets.
Condensed group statement of financial position
As at 30 June 2025
Note Six months ended Six months ended Year ended
30 June 2025 30 June 2024 31 December 2024
(unaudited) (unaudited) (audited)
£m £m £m
Non-current assets
Investment property 10 6,414.4 6,220.0 5,929.4
Investment in land options 11 125.8 155.9 148.8
Investment in joint ventures 25.1 24.4 24.4
Other property assets 0.9 1.7 1.7
Intangible assets 0.6 0.9 0.7
Financial assets 1.8 2.6 3.2
Interest rate derivatives 13 5.2 11.6 7.6
Trade and other receivables 14 4.3 1.0 3.9
Total non-current assets 6,578.1 6,418.1 6,119.7
Current assets
Trade and other receivables 14 88.5 41.4 56.0
Assets held for sale 12 253.4 - 440.4
Cash and cash equivalents 15 53.1 47.9 80.6
Restricted cash 15 13.8 0.2 -
Tax asset 0.4 - 2.0
Total current assets 409.2 89.5 579.0
Total assets 6,987.3 6,507.6 6,698.7
Current liabilities
Deferred rental income (58.4) (51.0) (59.5)
Trade and other payables (123.9) (112.3) (112.5)
Tax liabilities (1.9) (3.8) (1.9)
Total current liabilities (184.2) (167.1) (173.9)
Non-current liabilities
Trade and other payables (4.4) (1.0) (3.9)
Bank borrowings 16 (1,020.1) (794.4) (811.7)
Loan notes 16 (1,142.5) (1,141.2) (1,141.8)
Deferred Consideration (3.6) (4.2) -
Total non-current liabilities (2,170.6) (1,940.8) (1,957.4)
Total liabilities (2,354.8) (2,107.9) (2,131.3)
Total net assets 4,632.5 4,399.7 4,567.4
Equity
Share capital 24.8 24.8 24.8
Share premium reserve 49.2 49.2 49.2
Capital reduction reserve 1,187.3 1,379.6 1,289.0
Merger Reserve 957.0 957.1 957.0
Retained earnings 2,414.2 1,989.0 2,247.4
Total equity 4,632.5 4,399.7 4,567.4
Net asset value per share 18 186.74p 177.36p 184.12p
EPRA Net Tangible Asset per share 18 188.17p 179.33p 185.56p
These financial statements were approved by the Board of Directors on 5 August
2025 and signed on its behalf by:
Aubrey Adams, Chairman
Condensed group statement of changes in equity
For the six months ended 30 June 2025
Six months ended 30 June 2025 (unaudited) Note Share capital Share premium Merger Reserve Capital reduction reserve Retained earnings Total
£m £m £m £m £m £m
1 January 2025 24.8 49.2 957.0 1,289.0 2,247.4 4,567.4
Profit for the period and total comprehensive income - - - - 166.8 166.8
24.8 49.2 957.0 1,289.0 2,414.2 4,734.2
Contributions and distributions:
Dividends paid 9 - - - (101.7) - (101.7)
30 June 2025 24.8 49.2 957.0 1,187.3 2,414.2 4,632.5
Six months ended 30 June 2024 (unaudited) Note Share capital Share premium Merger Reserve Capital reduction reserve Retained earnings Total
£m £m £m £m £m £m
1 January 2024 19.0 49.2 - 1,463.9 1,801.9 3,334.0
Profit for the period and total comprehensive income - - - - 187.1 187.1
19.0 49.2 - 1,463.9 1,989.0 3,521.1
Contributions and distributions:
Share issue for UKCM acquisition 5.8 - 957.1 - - 962.9
Dividends paid 9 - - - (84.3) - (84.3)
30 June 2024 24.8 49.2 957.1 1,379.6 1,989.0 4,399.7
Year ended 31 December 2024 (audited) Note Share capital Share premium Merger Reserve Capital reduction reserve Retained earnings Total
£m £m £m £m £m £m
1 January 2024 19.0 49.2 - 1,463.9 1,801.9 3,334.0
Profit for the year and total comprehensive income - - - - 445.5 445.5
19.0 49.2 - 1,463.9 2,247.4 3,779.5
Contributions and distributions:
Share issue in relation to the UKCM acquisition 5.8 - 957.0 - - 962.8
Dividends paid 9 - - - (174.9) - (174.9)
31 December 2024 24.8 49.2 957.0 1,289.0 2,247.4 4,567.4
Condensed group cash flow statement
For the six months ended 30 June 2025
Note Six months ended Six months ended Year ended
30 June 2025 30 June 2024 31 December 2024
(unaudited) (unaudited) (audited)
£m £m £m
Cash flows from operating activities
Profits for the period (attributable to the shareholders) 166.8 187.1 445.5
Tax charge 1.5 3.1 0.3
Finance income (4.5) (3.7) (8.4)
Finance expense 6 36.7 32.6 71.9
Changes in fair value of interest rate derivatives 4.9 1.3 5.3
Impairment of intangible and other property assets 25.5 (0.1) 4.0
Amortisation of intangible property assets 0.8 0.6 0.6
Movement on valuation of financial asset 1.4 - (0.9)
Share of profit from joint ventures (0.1) - (0.1)
Gain/(loss) on disposal of investment properties 5.3 - (8.4)
Changes in fair value of investment properties (92.2) (96.5) (243.7)
Accretion of tenant lease incentive (8.6) (11.3) (21.4)
Increase in trade and other receivables (32.8) (8.4) (33.4)
(Decrease)/increase in deferred income (1.8) 4.2 12.7
Decrease in trade and other payables (2.9) (23.0) (26.0)
Cash generated from operations 100.0 85.9 198.0
Taxation charge 7 - (1.5) (2.6)
Net cash flow generated from operating activities 100.0 84.4 195.4
Investing activities
Additions to investment properties (411.9) (103.5) (196.2)
Additions to land options (5.5) (6.3) (16.9)
Net working capital acquired on the acquisition of UKCM - 10.0 (8.1)
Additions to joint ventures (0.9) - -
Net proceeds from disposal of investment properties 218.2 (0.7) 137.8
Interest received 1.0 0.1 0.7
Dividends received from joint ventures - 0.3 0.4
Net cash flow used in investing activities (199.1) (100.1) (82.3)
Financing activities
Bank borrowings drawn 16 498.0 174.0 340.0
Bank and other borrowings repaid 16 (289.0) (40.0) (178.0)
Interest derivatives received 3.9 2.9 7.0
Loan arrangement fees paid (5.1) (0.1) (1.2)
Bank interest paid (32.2) (28.8) (60.6)
Interest cap premium paid (2.5) (1.8) (1.8)
Dividends paid to equity holders (101.5) (78.8) (174.1)
Net cash flow generated from/(used in) financing activities 71.6 27.4 (68.7)
Net decrease/(increase) in cash and cash equivalents for the year (27.5) 11.7 44.4
Cash and cash equivalents at start of period 15 80.6 36.2 36.2
Cash and cash equivalents at end of period 15 53.1 47.9 80.6
Notes to the consolidated accounts
1. Basis of preparation
These condensed consolidated interim financial statements for the six months
to 30 June 2025 have been prepared in accordance with the Disclosure Guidance
and Transparency Rules of the Financial Services Authority, IAS 34 'Interim
financial reporting' and also in accordance with the measurement and
recognition principles of UK adopted international accounting standards. They
do not include all of the information required for full annual financial
statements and should be read in conjunction with the 2024 Annual Report and
Accounts, which were prepared in accordance with UK-adopted International
Accounting Standards (IFRS).
The condensed consolidated financial statements for the six months ended 30
June 2025 have been reviewed by the Group's Auditor, BDO LLP, in accordance
with International Standard on Review Engagements 2410, Review of Interim
Financial Information Performed by the Independent Auditor of the Entity and
were approved for issue on 5 August 2025. The condensed consolidated financial
statements are unaudited and do not constitute statutory accounts for the
purposes of the Companies Act 2006.
The comparative financial information presented herein for the year to 31
December 2024 does not constitute full statutory accounts within the meaning
of Section 434 of the Companies Act 2006. The Group's Annual Report and
accounts for the year to 31 December 2024 have been delivered to the Registrar
of Companies. The Group's independent auditor's report on those accounts was
unqualified, did not include references to any matters to which the auditors
drew attention by way of emphasis without qualifying their report and did not
contain a statement under section 498(2) or 498(3) of the Companies Act 2006.
1.1. Going concern
The Board has paid attention to the appropriateness of the going concern basis
in preparing these financial statements. Any going concern assessment
considers the Group's financial position, cash flows and liquidity, including
its continued access to its debt facilities and its headroom under financial
loan covenants.
The Directors have considered the cash flow forecasts for the Group for a
period of at least twelve months from the date of approval of these condensed
consolidated financial statements. These forecasts include the Directors'
assessment of plausible downside scenarios. The Directors have reviewed the
current and projected financial position of the Group, making reasonable
assumptions about its future trading performance. Various forms of sensitivity
analysis have been performed having a particular regard to the financial
performance of its customers, track record of rental receipts, whilst taking
into account any discussions held with the customer surrounding their future
rental obligations. The analysis also included sensitising the impact of
portfolio valuation movements through market volatility, rent collection and
customer default. These scenarios all paid regard to the current economic
environment.
The Group has a strong track record around rent collection with no history of
significant levels of bad debt or arrears. Generally speaking, we have strong
customers with robust balance sheets and strong cash flows. The Directors
have also considered the arrears position in light of IFRS 9, expected credit
loss model, see Note 14 for further details.
As at 30 June 2025, the Group had an aggregate £410 million of undrawn
commitments under its senior debt facilities, of which £77.1 million was
committed under various development contracts.
At 30 June 2025 the Group's loan to value ratio stood at 30.9%, with the debt
portfolio having an average maturity term of approximately 4.24 years. As at
the date of approval of this report, the Group has substantial headroom within
its financial loan covenants. As at 30 June 2025 property values would have to
fall by approximately 50% before loan covenants are breached.
The Group's financial covenants have been complied with for all loans
throughout the period and up to the date of approval of these financial
statements.
The Directors are therefore satisfied that the Group is in a position to
continue in operation for at least twelve months from the date of approval of
these condensed consolidated financial statements and consider it appropriate
to adopt the going concern basis of accounting in preparing them. There is no
material uncertainty relating to going concern.
2. Significant accounting judgements, estimates and
assumptions
The condensed consolidated financial statements have been prepared on the
basis of the accounting policies, significant judgements, estimates and key
assumptions as set out in the notes to the Group's annual financial statements
for the year ended 31 December 2024. No changes have been made to the Group's
accounting policies as a result of the amendments and interpretations which
became effective in the period as they do not have a material impact on the
Group. Full details can be found in the Group's annual financial statements
for the year ended 31 December 2024, apart from the below:
2.1 Judgements
Other operating income
Other operating income is receivable from development management agreements
("DMA") in place with third parties. Development management income is
recognised in the accounting period in which the services are rendered and a
significant reversal is not expected in future periods.
Judgement is exercised in identifying performance obligations including the
sale of land with planning consent, completing land and infrastructure works
and managing the construction of an asset. The transaction price is allocated
fairly between the different performance obligations (refer to notes 10 and
11). Certain performance obligations are recognised at a point in time (for
example a land transaction) and others are recognised over time (such as
services under a DMA) each contract outlines the scope, deliverables,
milestones, and payment terms. Revenue is recognised based on the work
completed to date using the percentage-of-completion method (input method),
which is based on costs incurred relative to total expected costs.
Power connection agreements
In the period, power connection agreements have been acquired, and judgement
has been applied in determining how to account for these as either as part of
the associated investment property or as an intangible asset. Management have
concluded that they should be accounted for as part of the investment property
because they are integral to bringing specific identified sites into their
intended use.
2.2 Estimates
Fair valuation of Investment property
The market value of Investment property is determined by an independent
property valuation expert (see note 10) to be the estimated amount for which a
property should exchange on the date of the valuation in an arm's-length
transaction. Properties have been valued on an individual basis. The valuation
expert uses recognised valuation techniques and the principles of both IAS 40
and IFRS 13.
The valuations have been prepared in accordance with the RICS Valuation -
Global Standards January 2025 ("the Red Book"). Factors reflected comprise
current market conditions including net initial yield applied, annual rentals,
lease lengths, location, and availability of power. The net initial yield,
being the most significant estimate, is subject to changes depending on the
market conditions which are assessed on a periodic basis. The significant
methods and assumptions used by the valuers in estimating the fair value of
Investment property, together with the sensitivity analysis on the most
subjective inputs, are set out in note 10.
3. Summary of significant accounting policies
The accounting policies adopted in this report are consistent with those
applied in the Group's consolidated financial statements for the year ended 31
December 2024 and are expected to be applied consistently during the year
ending 31 December 2025.
3.1 New standard issued and effective from 1 January 2025
The following standard and amendment to existing standards has been applied in
preparing the financial statements.
The following amendments are effective for the period beginning 1 January
2025:
· Lack of exchangeability - Amendments to IAS 21
There was no material effect from the adoption of the above-mentioned
amendments to IFRS effective in the period. They have no significant impact to
the Group as they are either not relevant to the Group's activities or require
accounting which is already consistent with the Group's current accounting
policies.
4. Other operating income
Six months ended Six months ended Year ended
30 June 2025 30 June 2024 31 December 2024
(unaudited) (unaudited) (audited)
£m £m £m
DMA Income 61.2 23.4 67.4
Sale of land 29.4 18.9 18.9
Other operating income 90.6 42.3 86.3
5. Other operating cost
Six months ended Six months ended Year ended
30 June 2025 30 June 2024 31 December 2024
(unaudited) (unaudited) (audited)
£m £m £m
DMA expense 47.9 14.0 47.2
Cost of land 29.4 16.1 16.1
Other operating costs 77.3 30.1 63.3
6. Finance expense
Six months ended Six months ended Year ended
30 June 2025 30 June 2024 31 December 2024
(unaudited) (unaudited) (audited)
£m £m £m
Interest payable on bank borrowings 22.0 15.9 36.9
Interest payable on loan notes 14.8 14.5 29.8
Commitment fees payable on bank borrowings 1.1 1.2 2.7
Amortisation of loan arrangement fees 2.2 2.0 4.3
Unwinding of deferred consideration 0.3 0.2 0.4
Unwinding of discount on fixed rate debt 3.0 0.4 3.8
43.4 34.2 77.9
Borrowing costs capitalised against development properties (6.7) (1.6) (6.0)
Finance Expense 36.7 32.6 71.9
7. Taxation
Six months ended Six months ended Year ended
30 June 2025 30 June 2024 31 December 2024
(unaudited) (unaudited) (audited)
£m £m £m
Tax (charge)/credit (1.5) (3.1) 0.3
The UK corporation tax rate for the financial year is 25%.
Non‑taxable items include income and gains that are derived from the
property rental business and are therefore exempt from UK corporation tax in
accordance with Part 12 of CTA 2010.
REIT exempt income includes property rental income that is exempt from UK
corporation tax in accordance with Part 12 of CTA 2010.
The tax charge in the period relates to the profit which is not exempt from UK
corporation tax.
8. Earnings per share
Earnings per share (EPS) are calculated by dividing profit for the period
attributable to ordinary equity holders of the Company by the weighted average
number of Ordinary Shares in issue during the period. As there are dilutive
instruments outstanding, basic and diluted earnings per share are shown below.
The calculation of basic and diluted earnings per share is based on the
following:
For the period ended 30 June 2025 (unaudited) Net profit attributable to Ordinary Shareholders Weighted average number of Ordinary Shares(1) Earnings per share
£m '000 pence
Basic EPS 166.8 2,480,677 6.72p
Adjustments to remove:
Changes in fair value of investment property (92.2)
Changes in fair value of interest rate derivatives 4.9
Share of profit from joint ventures (0.1)
Loss on disposal of investment properties 5.3
Amortisation of other property assets 0.8
Changes in fair value of financial asset 1.4
Impairment of intangible contract and other property assets 25.5
EPRA EPS(1) - basic and diluted 112.4 2,480,677 4.53p
Adjustments to include:
Fixed rental uplift adjustments (3.0)
Amortisation of loan arrangement fees and intangibles (see note 6) 2.2
Unwinding of discount on fixed rate debt and deferred consideration 3.3
Adjusted EPS (1) - basic and diluted 114.9 2,480,677 4.63p
For the period ended 30 June 2024 (unaudited) (restated)(2) Net profit attributable to Ordinary Shareholders Weighted average number of Ordinary Shares(1) Earnings per share
£m '000 pence
Basic EPS 187.1 2,046,388 9.14p
Adjustments to remove:
Changes in fair value of investment property (96.5)
Changes in fair value of interest rate derivatives 1.3
Share of profit from joint ventures -
Changes in fair value of financial asset (0.3)
Impairment of intangible contract and other property assets 0.2
EPRA EPS(1) - basic and diluted (restated)(2) 91.8 2,046,388 4.49p
Adjustments to include:
Fixed rental uplift adjustments (5.4)
Amortisation of loan arrangement fees and intangibles (see note 6) 2.6
Adjusted EPS (1) - basic and diluted (restated)(2) 89.0 2,046,388 4.35p
Net profit attributable to Ordinary Shareholders Weighted average number of Ordinary Shares(1) Earnings per share
For the period ended 30 June 2024 (unaudited) (reported)
£m '000 pence
Basic EPS 187.1 2,046,388 9.14p
Adjustments to remove:
Changes in fair value of investment property (96.5)
Changes in fair value of interest rate derivatives 1.3
Finance income received on interest rate derivatives(2) (3.5)
Share of profit from joint ventures -
Changes in fair value of financial asset (0.3)
Impairment of intangible contract and other property assets 0.2
EPRA EPS(1) - basic and diluted(reported) 88.3 2,046,388 4.31p
Adjustments to include:
Fixed rental uplift adjustments (5.4)
Amortisation of loan arrangement fees and intangibles (see note 6) 2.6
Finance income received on interest rate derivatives(2) 3.5
Adjusted EPS (1)- basic and diluted (reported) 89.0 2,046,388 4.35p
(1) Based on the weighted average number of Ordinary Shares in issue
throughout the period.
(2) In accordance with the EPRA guidance the finance income received on
interest rate derivatives was taken out of EPRA Earnings and was added back
into Adjusted Earnings as it gave a better reflection of the Group's net
interest expense which was supported by cash flows. During 2024 this guidance
has since change and it is no longer required to be excluded from the ERPA EPS
and the prior year has been restated to reflect this change.
For the year ended 31 December 2024 Net profit attributable to Ordinary Shareholders Weighted average number of Ordinary Shares(1) Earnings per share
£m '000 pence
EPS - basic and diluted 445.5 2,264,719 19.67p
Adjustments to remove:
Changes in fair value of investment property (243.7)
Changes in fair value of interest rate derivatives 5.3
Share of profit from joint ventures (0.1)
Gain on disposal of investment properties (8.4)
Amortisation of other property assets 0.6
Changes in fair value of financial asset (0.9)
Impairment of intangible contract and other property assets 4.0
EPRA EPS (1) - basic and diluted 202.3 2,264,719 8.93p
Adjustments to include:
Fixed rental uplift adjustments (8.9)
Amortisation of loan arrangement fees and intangibles (see note 6) 4.1
Unwinding of discount on fixed rate debt and deferred consideration 4.2
Adjusted EPS (1) - basic and diluted 201.7 2,264,719 8.91p
1. Based on the weighted average number of Ordinary Shares in issue throughout
the year.
Adjusted earnings is a performance measure used by the Board to assess the
Group's dividend payments. The metric reduces EPRA earnings by other non-cash
items credited or charged to the Group Statement of Comprehensive Income, such
as fixed rental uplift adjustments and amortisation of loan arrangement fees.
Fixed rental uplift adjustments relate to adjustments to net rental income on
leases with fixed or minimum uplifts embedded within their review profiles.
The total minimum income recognised over the lease term is recognised on a
straight-line basis and therefore not fully supported by cash flows during the
early term of the lease, but this reverses towards the end of the lease.
9. Dividends paid
Six months ended Six months ended Year ended
30 June 2025 30 June 2024 31 December 2024
(unaudited) (unaudited) (audited)
£m £m £m
Fourth interim dividend in respect of period ended 31 December 2023 at 2.050 - 39.0 39.0
pence per Ordinary Share
First interim dividend in respect of year ended 31 December 2024 at 1.825 - 45.3 45.3
pence per Ordinary Share
Second interim dividend in respect of year ended 31 December 2024 at 1.825 - - 45.3
pence per Ordinary Share
Third interim dividend in respect of year ended 31 December 2024 at 1.825 - - 45.3
pence per Ordinary Share
Fourth interim dividend in respect of period ended 31 December 2024 at 2.185 54.2 - -
pence per Ordinary Share
First interim dividend in respect of year ended 31 December 2025 at 1.915 47.5 - -
pence per Ordinary Share
Total dividends paid 101.7 84.3 174.9
Total dividends paid for the period (pence per share) 1.915 1.825 5.475
Total dividends unpaid but declared for the period (pence per share) 1.915 1.825 2.185
Total dividends declared for the period (pence per share) 3.83 3.65 7.66
On 6 August 2025, the Company approved the declaration of the second interim
dividend in respect of the year ended 31 December 2025 of 1.915 pence per
share payable on 5 September 2025. In relation to the total dividends declared
for the period of 3.83 pence, 3.83 pence is a property income distribution
(PID).
10. Investment property
In accordance with IAS 40, investment property is stated at fair value as at
30 June 2025. The investment property has been independently valued by CBRE
Limited ("CBRE"), Jones Lang LaSalle Limited ("JLL") and Colliers
International Valuation UK LLP ("Colliers"), they are accredited independent
valuers with recognised and relevant professional qualifications and with
recent experience in the locations and categories of the investment properties
being valued. CBRE and JLL value all investment property with leases attached
or assets under construction. Colliers values all land holdings and land
options. The valuations have been prepared in accordance with the RICS
Valuation - Global Standards January 2025 (the "Red Book") and incorporate the
recommendations of the International Valuation Standards and the RICS
Valuation - Professional Standards UK January 2024 which are consistent with
the principles set out in IFRS 13.
The valuers, in forming their opinion, make a series of assumptions, which are
market related, such as Net Initial Yields and expected rental values, and are
based on the valuer's professional judgement. The valuers have sufficient
current local and national knowledge of the particular property markets
involved and has the skills and understanding to undertake the valuations
competently. There have been no changes to the assumptions made in the year as
a result of a range of factors including the macro-economic environment,
availability of debt finance and physical and transition risks relating to
climate change.
The valuers of the Group's property portfolio have a working knowledge of the
various ways that sustainability and environmental, social and governance
factors can impact value and have considered these, and how market
participants are reflecting these in their pricing, in arriving at their
Opinion of Value and resulting valuations as at the date of the statement of
financial position. Currently, assets with the highest standards of ESG are
commanding higher rental levels, have lower future capital expenditure
requirements, and are transacting at lower yields.
The valuations are the ultimate responsibility of the Directors. Accordingly,
the critical assumptions used in establishing the independent valuation are
reviewed by the Board.
All corporate acquisitions during the period and prior period have been
treated as asset purchases rather than business combinations because they are
considered to be acquisitions of properties rather than businesses.
Investment property freehold Investment property long leasehold Investment property under construction Total
(unaudited) £m £m £m £m
As at 1 January 2025 5,001.5 662.1 265.8 5,929.4
Property additions 96.4 0.1 326.5 423.0
Fixed rental uplift and tenant lease incentives(1) 14.7 0.6 - 15.3
Disposals (9.9) - - (9.9)
Transfer of completed property to investment property 59.8 - (59.8) -
Transfer from land options - - 3.4 3.4
Assets transferred to held for sale (33.4) (5.0) - (38.4)
Change in fair value during the period 37.5 6.4 47.7 91.6
As at 30 June 2025 5,166.6 664.2 583.6 6,414.4
Investment property freehold Investment property long leasehold Investment property under construction Total
(unaudited) £m £m £m £m
As at 1 January 2024 4,004.3 580.9 258.4 4,843.6
Property additions 1,081.8 95.0 104.8 1,281.6
Fixed rental uplift and tenant lease incentives(1) 10.8 1.4 - 12.2
Disposals - - (21.7) (21.7)
Transfer of completed property to investment property 61.7 - (61.7) -
Transfer from land options - - 7.8 7.8
Change in fair value during the period 65.3 2.5 28.7 96.5
As at 30 June 2024 5,223.9 679.8 316.3 6,220.0
Investment property freehold Investment property long leasehold Investment property under construction Total
£m £m £m £m
As at 1 January 2024 4,004.3 580.9 258.4 4,843.6
Property additions 1,090.5 93.8 210.7 1,395.0
Fixed rental uplift and tenant lease incentives(1) 20.5 1.9 - 22.4
Disposals (134.6) - (22.2) (156.8)
Transfer of completed property to investment property 188.4 - (188.4) -
Transfer from land options - - 21.9 21.9
Transfer to assets held for sale (326.1) (34.0) (80.3) (440.4)
Change in fair value during the year 158.5 19.5 65.7 243.7
As at 31 December 2024 5,001.5 662.1 265.8 5,929.4
(1) Included within the carrying value of Investment property is £129.3
million (31 December 2024:114 million) in respect of accrued contracted rental
uplift income. This balance arises as a result of the IFRS treatment of leases
with fixed or minimum rental uplifts and rent‑free periods, which requires
the recognition of rental income on a straight‑line basis over the lease
term. The difference between this and cash receipts change the carrying value
of the property against which revaluations are measured.
30 June 30 June 31 December
2025 2024 2024
£m £m £m
Investment property at fair value per Group Statement of Financial Position 6,414.4 6,220.0 5,929.4
Assets held for sale at fair value 253.4 - 440.4
Total investment property valuation 6,667.8 6,220.0 6,369.8
The Group has other capital commitments which represent commitments made in
respect of direct construction, asset management initiatives and development
land (refer to note 20).
Fees payable under the DMA totalling £0.5 million (31 December 2024: £2.5
million and June 2024: £1.2 million) have been capitalised in the period
being directly attributable to the ongoing development projects.
Valuation risk
There is risk to the fair value of real estate assets that are part of the
portfolio of the Group, comprising variation in the yields that the market
attributes to the real estate investments and the market income that may be
earned.
Real estate investments can be impacted adversely by external factors such as
the general economic climate, supply and demand dynamics in the market,
competition for buildings and environmental factors which could lead to an
increase in operating costs.
Besides asset specific characteristics, general market circumstances affect
the value and income from investment properties such as the cost of regulatory
requirements related to investment properties, interest rate levels, the
availability of financing and ESG scores.
The Manager of the Group has implemented a portfolio strategy with the aim to
mitigate the above stated real estate risk. By diversifying in regions, risk
categories and tenants, it is expected to lower the risk profile of the
portfolio.
Fair value hierarchy
The Group considers that all of its investment properties fall within Level 3
of the fair value hierarchy as defined by IFRS 13. There have been no
transfers between Level 1 and Level 2 during any of the periods, nor have
there been any transfers between Level 2 and Level 3 during any of the
periods.
The valuations have been prepared on the basis of Market Value (MV), which is
defined in the RICS Valuation Standards, as:
"The estimated amount for which a property should exchange on the date of
valuation between a willing buyer and a willing seller in an arm's‑length
transaction after proper marketing wherein the parties had each acted
knowledgeably, prudently and without compulsion."
MV as defined in the RICS Valuation Standards is the equivalent of fair value
under IFRS.
The following descriptions and definitions relating to valuation techniques
and key unobservable inputs made in determining fair values are as follows:
The key unobservable inputs made in determining fair values are as follows:
Unobservable input: estimated rental value (ERV)
The rent per square foot at which space could be let in the market conditions
prevailing at the date of valuation.
Passing rents are dependent upon a number of variables in relation to the
Group's property. These include: size, location, tenant covenant strength and
terms of the lease.
Unobservable input: net initial yield
The net initial yield is defined as the initial gross income as a percentage
of the market value (or purchase price as appropriate) plus standard costs of
purchase.
30 June 2025 Unobservable Inputs
ERV range ERV Average Net initial yield Net initial yield
Industrials £ psf £ psf range% average%
South East 6.25 - 19.00 11.63 3.99 - 5.94 4.50
South West 7.50 - 12.11 8.71 3.89 - 5.41 4.98
East Midlands 3.18 - 9.25 8.07 3.55 - 5.80 4.60
West Midlands 7.32 - 10.62 8.94 3.72 - 6.43 4.76
North East 4.90 - 8.45 6.62 4.23 - 5.65 4.83
North West 5.25 - 11.62 8.71 4.07 - 5.77 5.06
Scotland 5.03 - 7.13 6.14 5.50 - 8.63 6.53
30 June 2025 Unobservable Inputs
ERV range ERV Average Net initial yield Net initial yield
Non-strategic £ psf £ psf range% average%
Office 22.38 - 39.18 30.40 6.72 - 30.58 11.49
Alternative 14.50 - 44.20 24.38 4.84 - 14.46 6.79
30 June 2024 Unobservable Inputs
ERV range ERV Average Net initial yield Net initial yield
Industrials £ psf £ psf range% average%
South East 5.46 - 17.54 11.05 1.56 - 5.72 4.61
South West 6.75 - 11.51 9.13 4.75 - 4.94 4.85
East Midlands 6.30 - 12.82 8.38 3.63 - 6.67 5.00
West Midlands 7.07 - 10.46 8.35 0.00 - 6.50 4.30
Yorkshire and the Humber 5.82 - 27.93 9.29 4.40 - 6.36 5.11
North East 3.91 - 4.25 4.08 4.75 - 4.83 4.79
North West 5.01 - 17.61 9.37 4.16 - 5.97 5.05
Scotland 4.30 - 6.83 5.88 5.50 - 7.23 6.54
30 June 2024 Unobservable Inputs
ERV range ERV Average Net initial yield Net initial yield
Non industrials £ psf £ psf range% average%
South East 16.80 - 33.01 24.27 5.49 - 8.07 6.81
South West 12.59 - 44.20 24.93 5.24 - 9.17 6.97
West Midlands 24.50 - 24.50 24.50 8.98 - 8.98 8.98
North East 14.30 - 22.68 18.49 5.55 - 10.58 8.06
Scotland 10.07 - 46.84 31.67 4.11 - 11.14 7.23
31 December 2024 Unobservable Inputs
ERV range ERV Average Net initial yield Net initial yield
Industrials £ psf £ psf range% average%
South East 6.25 - 19.00 11.52 3.99 - 5.94 4.51
South West 7.00 - 12.07 8.34 3.99 - 4.92 4.57
East Midlands 3.18 - 9.00 7.80 3.55 - 5.46 4.55
West Midlands 7.32 - 10.74 8.80 3.87 - 6.44 4.78
North East 4.90 - 8.00 6.42 4.39 - 5.74 4.93
North West 5.01 - 11.50 8.73 4.10 - 5.72 4.95
Scotland 5.03 - 7.15 6.14 5.50 - 7.53 6.10
31 December 2024
ERV range ERV average Net Initial Yield Net Initial Yield
Non-strategic £ psf £ psf range% average%
Office 22.31 - 39.19 30.13 6.72 - 12.85 8.86
Retail 16.59 - 30.88 23.69 5.69 - 7.40 6.51
Alternative 13.63 - 44.20 23.96 4.88 - 14.40 6.66
-5% in passing rent +5% in passing rent +0.25% Net Initial yield -0.25% Net Initial Yield
£m £m £m £m
(Decrease)/increase in the fair value of investment properties as at 30 June (291.5) 291.5 (297.7) 331.5
2025
(Decrease)/increase in the fair value of investment properties as at 30 June (295.2) 295.2 (297.4) 330.9
2024
(Decrease)/increase in the fair value of investment properties as at 31 (283.2) 283.2 (282.6) 313.9
December 2024
11. Investment in land options
Six months ended Six months ended Year ended
30 June 2025 30 June 2024 31 December 2024
(unaudited) (unaudited) (audited)
£m £m £m
Opening balance 148.8 157.4 157.4
Costs capitalised in the period 5.5 6.3 16.9
Transferred to investment property (3.4) (7.8) (21.9)
Impairment(1) (25.1) - (3.6)
Closing balance 125.8 155.9 148.8
(1)An impairment has been recognised in relation to a single site held under
a land option, where the Group's expectation on the possible likelihood and
timing of achieving planning consent changed in the period. Given the sites
national significance, including its potential as a lower-carbon rail freight
connected logistics hub, planning consent was being progressed through a
Development Consent Order (DCO) with the ultimate decision made by the
Secretary of State. In March 2025, the Secretary of State did not grant
planning consent to the scheme in our proposed form. The impairment represents
approximately half of the overall value of the option and associated costs.
The development team is now revising its plans for the site on the basis of
feedback from the DCO process to seek alternative routes to its potential
development. This impairment has been presented within the Statement of
Comprehensive Income within 'impairment of intangibles and other property
assets'.
12. Assets held for sale
Industrial Land Non-strategic Total
£m £m £m £m
As at 1 January 2025 79.0 29.4 332.0 440.4
Disposals (79.0) (29.4) (120.2) (228.6)
Assets held for sale additions - - 2.6 2.6
Transferred from investment property - - 38.4 38.4
FV adjustment - - 0.6 0.6
As at 30 June 2025 - - 253.4 253.4
Industrial Land Non-strategic Total
£m £m £m £m
As at 1 January 2024 - - - -
Transferred from investment property 79.0 29.4 332.0 440.4
As at 31 December 2024 79.0 29.4 332.0 440.4
Please refer to note 10 details into the inputs and assumptions used in
determining the fair value of these assets as at 30 June 2025.
13. Interest rate derivatives
To mitigate the interest rate risk that arises as a result of entering into
variable rate loans, the Group has entered into a number of interest rate
derivatives. The fair value of Group's interest rate derivatives is recorded
in the Group Statement of Financial Position and is determined by forming an
expectation that interest rates will exceed strike rates and discounting these
future cash flows at the prevailing market rates as at the year end. This
valuation technique falls within Level 2 of the fair value hierarchy as
defined by IFRS 13. There have been no transfers between Level 1 and Level 2
during any of the years, nor have there been any transfers between Level 2 and
Level 3 during any of the years.
14. Trade and other receivables
Non-current trade and other receivables Six months ended Six months ended Year ended
30 June 2025 30 June 2024 31 December 2024
(unaudited) (unaudited) (audited)
£m £m £m
Cash in public institutions 4.3 1.0 3.9
The cash in public institutions is a deposit of £4.3 million paid by certain
tenants to the Group, as part of their lease agreements.
Six months ended Six months ended Year ended
30 June 2025 30 June 2024 31 December 2024
(unaudited) (unaudited) (audited)
£m £m £m
Trade receivables 67.0 22.9 26.5
Prepayments, accrued income and other receivables 13.6 18.5 29.5
VAT 7.9 - -
88.5 41.4 56.0
The carrying value of trade and other receivables classified at amortised cost
approximates fair value. The increase in trade receivables in the period was
due to DMA income invoiced receivable of £40.1 million and the increase in
VAT receivable of £7.9 million.
The Group applies the IFRS 9 simplified approach to measuring expected credit
losses using a lifetime expected credit loss provision for trade receivables.
To measure expected credit losses on a collective basis, trade receivables are
grouped based on similar credit risk and ageing.
The expected loss rates are based on the Group's historical credit losses
experienced over the three‑year period prior to the period end. The
historical loss rates are then adjusted for current and forward-looking
information on macroeconomic factors affecting the Group's Customers. The
expected credit loss provision for June 2025 was £0.5 million (June 2024:
£0.3 million and December 2024: £0.6 million). No reasonable changes in the
assumptions underpinning the expected credit loss provision would give rise to
a material expected credit loss.
15. Cash held at bank
Six months ended Six months ended Year ended
30 June 2025 30 June 2024 31 December 2024
(unaudited) (unaudited) (audited)
£m £m £m
Cash and cash equivalents to agree with cash flow 53.1 47.9 80.6
Restricted cash 13.8 0.2 -
Total cash held at bank 66.9 48.1 80.6
Restricted cash is cash where there is a legal restriction to specify its type
of use, ie cash received from the sale of a secured asset.
16. Borrowings
The Group had a £400 million and £500 million unsecured revolving credit
facility (RCF) which provides the Group with a significant level of
operational flexibility. Both facilities are provided by a syndicate of
relationship lenders formed of large multi-national banks.
During the period, the Group extinguished its £300 million RCF on 18 June
2025, and the Group entered into a new £400 million RCF agreement on the same
date. The loan matures on 18 June 2030, although the facility benefits from
two one-year extension periods.
The group also extinguished its £150 million RCF which included a fixed
element of £75 million, drawn at inception, with the remaining £75 million
being variable on 18 June 2025. The Group entered in a new fixed amount £150
million agreement on the same date with Barclays. The loan matures on 18
October 2027, although the facility benefits from three one-year extension
periods.
As at 30 June 2025, 69% (December 2024: 76% and June 2024: 77%), of the
Group's drawn debt is fixed term, with 31% floating term (December 2024: 24%
and June 2024: 23%). When including interest rate hedging the Group has fixed
term or hedged facilities totaling 86% of drawn debt for 30 June 2025
(December 2024: 93% and June 2024: 95%).
As at 30 June 2025, the weighted average cost of debt was 3.21% (December
2024: 3.05% and June 2024: 3.05%). As at the same date the Group had undrawn
debt commitments of £410 million (and 31 December 2024: £519 million and 30
June 2024: £547 million).
The Group has been in compliance with all of the financial covenants of the
Group's bank facilities as applicable throughout the period covered by these
financial statements. A large part of the Group's borrowings are unsecured
financing arrangements. A summary of the drawn and undrawn bank borrowings in
the period is shown below:
30 June 2025 30 June 2024 31 December 2024
(unaudited) (unaudited) (audited)
£m £m £m
At the beginning of the period 843.9 481.9 481.9
Bank borrowings drawn in the period under existing facilities 335.0 174.0 265.0
Bank borrowings repaid in the period under existing facilities (126.0) (40.0) (178.0)
Cancellation of bank borrowing facility on refinancing (338.0) - -
New bank borrowing facility from refinancing 338.0 - 75.0
Book value of UKCM borrowings - 200.0 200.0
Total bank borrowings drawn 1,052.9 815.9 843.9
Any associated fees in arranging the bank borrowings and loan notes that are
unamortised as at the period end are offset against amounts drawn on the
facilities as shown in the table below:
30 June 2025 30 June 2024 31 December 2024
(unaudited) (unaudited) (audited)
£m £m £m
Bank borrowings drawn: due in more than one year 1,052.9 815.9 843.9
Less: unamortised costs on bank borrowings (10.3) (7.2) (6.7)
Fair value gain on UKCM borrowings on acquisition (22.5) (14.3) (25.5)
1,020.1 794.4 811.7
Loan notes
Bonds 30 June 2025 30 June 2024 31 December 2024
(unaudited) (unaudited) (audited)
£m £m £m
2.625% Bonds 2026 249.8 249.7 249.8
3.125% Bonds 2031 248.4 248.2 248.3
2.860% USPP 2028 250.0 250.0 250.0
2.980% USPP 2030 150.0 150.0 150.0
1.500% Green Bonds 2033 247.5 247.2 247.4
Less: unamortised costs on loan notes (3.2) (3.9) (3.7)
1,142.5 1,141.2 1,141.8
The weighted average term to maturity of the Group's debt as at the period end
is 4.2 years (31 December 2024: 4.5 years).
Maturity of borrowings
30 June 2025 30 June 2024 31 December 2024
(unaudited) (unaudited) (audited)
£m £m £m
Repayable between one and two years 440.0 132.0 424.0
Repayable between two and five years 1,162.9 1,083.9 819.9
Repayable in over five years 750 750.0
600.0
2,202.9 1,965.9 1,993.9
Set out below is a comparison by class of the carrying amounts and the fair
value of the Group's financial instruments that are carried in the financial
statements:
Book value Fair value Book value Fair value Book value Fair value
30 June 2025 30 June 2025 30 June 2024 30 June 2024 31 December 2024 31 December 2024
(unaudited) (unaudited) (unaudited) (unaudited) (audited) (audited)
£m £m £m £m £m £m
Financial assets
Interest rate derivatives 5.2 5.2 11.6 11.6 7.6 7.6
Trade and other receivables(1) 67.0 67.0 22.9 22.9 26.5 26.5
Cash held at bank 66.9 66.9 48.1 48.1 80.6 80.6
Financial liabilities
Trade and other payables(2) 123.9 123.9 98.9 98.9 107.3 107.3
Borrowings 2,198.6 2,026.1 1,961.0 1,794.9 1,989.4 1,797.0
1. Excludes certain VAT, prepayments and other debtors.
2. Excludes tax and VAT liabilities
Interest rate derivatives and measured at fair value through profit and loss.
All other financial assets and all financial liabilities are measured at
amortised cost. All financial instruments were designated in their current
categories upon initial recognition.
The Group has four fixed rate loans totalling £362 million, provided by PGIM
(£90 million), Canada Life (£72 million) and Barings (£200 million). The
fair value is determined by discounting the delta between contractual and
market cash flows at a weighted average cost of capital discount rate. Market
cash flows were built using the 12-year UK Gilt of 4.76% with an implied
margin of 1.74% for the 2027 loan and 1.65% for the 2031 loan. The loans are
considered to be a Level 2 fair value measurement. For all other bank loans
there is considered to be no other difference between fair value and carrying
value.
The fair value of financial liabilities traded on active liquid markets,
including the 2.625% Bonds 2026, 3.125% Bonds 2031, 1.5% Bonds 2033, 2.860%
USPP 2028 and 2.980% USPP 2030, is determined with reference to the quoted
market prices. These financial liabilities are considered to be a Level 1 fair
value measure.
The fair value of the financial liabilities at Level 1 fair value measure were
£1,008.6 million (Dec 2024: £992.5 million and June 2024: £1,001.3 million)
and the financial liabilities at Level 2 fair value measure were £326.7
million (Dec 2024: £322.6 million and June 2024: £339.7 million).
17. Equity reserves
Share capital
The share capital relates to amounts subscribed for share capital at its
nominal value. The Company had 2,480,677,459 shares of nominal value of 1
pence each in issue at the end of the period 30 June 2025 (30 June 2024:
2,480,677,459 shares and 31 December 2024: 2,480,677,459 shares).
30 June 2025 (unaudited) 30 June 2024 (unaudited) 31 December 2024 (audited)
Issued and fully paid at 1 pence each £m £m £m
Balance at the beginning 24.8 19.0 19.0
Shares issued in relation to the UKCM Acquisition - 5.8 5.8
Balance at end of the period 24.8 24.8 24.8
Share premium
The share premium relates to amounts subscribed for share capital in excess of
its nominal value.
Capital reduction reserve
The capital reduction reserve account is classed as a distributable reserve.
Movements in the current period relate to dividends paid.
Merger Reserve
Movements in the prior period relate to the shares issued in relation the UKCM
merger as described above.
Retained earnings
Retained earnings relates to all net gains and losses not recognised
elsewhere.
18. Net asset value (NAV) per share
Basic NAV per share is calculated by dividing net assets in the Group
Statement of Financial Position attributable to ordinary equity holders of the
Parent by the number of Ordinary Shares outstanding at the end of the period.
As there are no dilutive instruments outstanding, both basic and diluted NAV
per share are shown below.
The Group considered EPRA NTA to be the most relevant NAV measure for the
Group and we are now reporting this as our primary NAV measure.
30 June 2025 30 June 2024 31 December 2024
(unaudited) (unaudited) (audited)
£m £m £m
Net assets per Group Statement of Financial Position 4,632.5 4,399.7 4,567.4
EPRA NTA 4,668.0 4,448.7 4,603.2
Ordinary Shares:
Issued share capital (number) 2,480,677,459 2,480,677,459 2,480,677,459
Net asset value per share 186.74p 177.36p 184.12p
30 June 2025 30 June 2024 31 December 2024
EPRA NTA EPRA NRV EPRA NDV EPRA NTA EPRA NRV EPRA NDV EPRA NTA EPRA NRV EPRA NDV
£m £m £m £m £m £m £m £m £m
NAV attributable to shareholders 4,632.5 4,632.5 4,632.5 4,399.7 4,399.7 4,399.7 4,567.4 4,567.4 4,567.4
Revaluation of land options 12.8 12.8 12.8 35.4 35.4 35.4 18.0 18.0 18.0
Mark-to-market adjustments of derivatives 23.3 23.3 - 14.5 14.5 - 18.5 18.5 -
Intangibles (0.6) - - (0.9) - - (0.7) - -
Fair value of debt - - 172.5 - - 166.1 - - 192.4
Real estate transfer tax(1) - 463.2 - - 436.3 - - 444.6 -
NAV 4,668.0 5,131.8 4,817.8 4,448.7 4,885.9 4,601.2 4,603.2 5,048.5 4,777.8
NAV per share 188.17p 206.87p 194.21p 179.33p 196.96p 185.48p 185.56p 203.51p 192.60p
1 EPRA NTA and EPRA NDV reflect IFRS values which are net of RETT (real estate
transfer tax). RETT are added back when calculating EPRA NRV.
19. Transactions with related parties
For the half year 30 June 2025, all Directors and some of the Members of the
Manager are considered key management personnel. The terms and conditions of
the Investment Management Agreement are described in the Management Engagement
Committee Report within the 2024 Annual Report.
The total amount payable in the period relating to the Investment Management
Agreement was £13.3 million (30 June 2024: £11.4 million, 31 December 2024:
£24.6 million), with the total amount outstanding at the period end was £6.6
million (30 June 2024: £5.9 million and 31 December 2024: £6.6 million).
The Manager receives a net fee relating to asset management services provided
to three properties which are 4% owned by the Group, amounting to £0.05
million for the period ended 30 June 2025 (30 June 2024: £0.05 million, 31
December 2024: £0.05 million).
The amounts paid to Directors for their services for the period to 30 June
2025 was £0.3 million (30 June 2024: £0.2 million and 31 December 2024:
£0.5 million).
The total expense recognised in the Group profit or loss relating to
share-based payments under the Investment Management Agreement was £2.7
million (30 June 2024: £2.3 million and 31 December 2024: £5.0 million), of
which £2.7 million (30 June 2024: £2.3 million and 31 December 2024: £2.7
million) was outstanding at the period end.
The Members of the Manager who are considered as key management personnel are
Colin Godfrey, James Dunlop, Henry Franklin, Petrina Austin, Bjorn Hobart, and
Frankie Whitehead. The other Members of the Manager are Alasdair Evans, James
Watson and Abrdn Holdings Limited
During the period the Directors who served during the period received the
following dividends: Aubrey Adams: £12,300 (June 2024: £10,395 and December
2024: £21,345 ), Alastair Hughes: £3,148 (June 2024: £2,354 and December
2024: £5,157), Richard Laing: £3,223 (June 2024: £2,460 and December 2024:
£5,329), Karen Whitworth: £2,480 (June 2024: £1,734 , December 2024:
£3,942), Wu Gang £353 (June 2024: £210, December 2024: £524) and Elizabeth
Brown £836 (June 2024: £790, December 2024: £1,534 ).
During the period the Members of the Manager, who are considered key
management personnel, received the following dividends: Colin Godfrey:
£130,349 (June 2024: £113,588 and December 2024: £225,247), James Dunlop:
£123,648 (June 2024: £111,172 and December 2024: £220,554), Henry Franklin:
£94,467 (June 2024: £82,469 and December 2024: £163,645), Petrina Austin:
£17,410 (June 2024: £14,885 and December 2024: £29,564), Bjorn Hobart:
£19,648 (June 2024: £17,001 and December 2024: £33,672) and Frankie
Whitehead £10,660 (June 2024: £8,505 and December 2024: £17,174).
With regards to Tritax Management's part originating the data centre
opportunity for the Company, it will receive:
· £6.1 million in consideration for its 50% ownership of the JV,
including a first right of refusal for the Company on the Manager's data
centre pipeline;
· A development management fee, in line with market terms, of up to
5% of the development cost of the scheme, contingent upon receiving planning
consent; and
· A profit share of 17.5% of the total Phase 1 development profits,
contingent upon full delivery of a practically completed and let data centre,
of which 50% will be applied to the subscription or acquisition of shares in
the Company.
20. Capital commitments
The Group had capital commitments of £77.1 million in relation to its
development assets, active asset management initiatives and commitments under
development land, outstanding as at 30 June 2025 (30 June 2024: £118.9
million 31 December 2024: 101.2 million). All commitments fall due within
eighteen months from the date of this report.
21. Subsequent events
In the period post the balance sheet date, the Group sold or exchanged to sell
£73.4 million of investment assets.
There were no other significant events occurring after the reporting period,
but before the financial statements were authorised for issue.
NOTES TO THE EPRA AND OTHER KEY PERFORMANCE INDICATORS (UNAUDITED)
1. Adjusted earnings - income statement
The Adjusted earnings reflects our ability to generate earnings from our
portfolio, which ultimately underpins dividend payments.
Six months ended Six months ended Year ended
30 June 2025 30 June 2024 31
De
ce
mb
er
20
24
£m £m £m
Gross rental income 152.4 127.5 281.1
Service charge income 7.8 3.0 13.1
Service charge expense (9.1) (3.3) (15.6)
Direct property expenses (1.9) - (2.6)
Fixed rental uplift adjustments (3.0) (5.4) (8.9)
Net rental income 146.2 121.8 267.1
Other operating income 13.3 12.2 23.0
Amortisation of other property assets 0.8 - 0.6
Dividend Income 1.2 - 0.2
Administrative expenses (18.4) (15.6) (33.7)
Adjusted operating profit before interest and tax 143.1 118.4 257.2
Net finance costs (32.2) (28.9) (63.5)
Amortisation of loan arrangement fees 2.2 2.0 4.1
Unwinding of discount on fixed rate debt and deferred consideration 3.3 0.6 4.2
Adjusted earnings before tax 116.4 92.1 202.0
Tax on adjusted profit (1.5) (3.1) (0.3)
Adjusted earnings after tax 114.9 89.0 201.7
Adjustment to remove additional DMA income (8.6) (5.1) (19.3)
Adjusted earnings (exc. additional DMA income) 106.3 83.9 182.4
Weighted average number of Ordinary Shares 2,480,677,460 2,046,388,111 2,264,719,368
Adjusted earnings per share 4.63p 4.35p 8.91p
Adjusted earnings per share (exc. additional DMA income) 4.29p 4.10p 8.05p
(1) Additional DMA income constitutes other operating income exceeding £4.0
million, net of associated tax.
2. EPRA earnings per share
Six months ended Six months ended Six months ended Year ended
30 June 2025 30 June 2024 (Restated)(1) 30 June 2024 (Reported) 31 December 2024
£m £m £m £m
Total comprehensive income (attributable to shareholders) 166.8 187.1 187.1 445.5
Adjustments to remove:
Changes in fair value of investment properties (92.2) (96.5) (96.5) (243.7)
Changes in fair value of interest rate derivatives 4.9 1.3 1.3 5.3
Changes in fair value of financial asset 1.4 (0.3) (0.3) (0.9)
Share of profits from joint ventures (0.1) - - (0.1)
(Gain)/Loss on disposal of investment properties 5.3 (3.5) (8.4)
Amortisation of other property assets 0.8 - - 0.6
Impairment of intangible and other property assets 25.5 0.2 0.2 4.0
Profits to calculate EPRA Earnings per share 112.4 91.8 88.3 202.3
Weighted average number of Ordinary Shares 2,480,677,460 2,046,388,111 2,046,388,111 2,264,719,368
EPRA Earnings per share - basic and diluted 4.53p 4.49p 4.31p 8.93p
(1) There is no longer a requirement for Interest on derivatives to be taken
out of EPRA EPS, per the latest EPRA best practice guidance and there for this
has been excluded in 2024.
3. EPRA NAV per share
The Group considered EPRA Net Tangible Assets (NTA) to be the most relevant
NAV measure for the Group. EPRA NTA excludes the intangible assets and the
cumulative fair value adjustments for debt-related derivatives which are
unlikely to be realised.
30 June 2025
Note EPRA NTA EPRA NRV EPRA NDV
£m £m £m
NAV attributable to shareholders 4,632.5 4,632.5 4,632.5
Revaluation of land options 12.8 12.8 12.8
Mark-to-market adjustments of derivatives 23.3 23.3 -
Intangibles (0.6) - -
Fair value of debt - - 172.5
Real estate transfer tax(1) - 463.2 -
At 30 June 2025 18 4,668.0 5,131.8 4,817.8
NAV per share 188.17p 206.87p 194.21p
30 June 2024
Note EPRA NTA EPRA NRV EPRA NDV
£m £m £m
NAV attributable to shareholders 4,399.7 4,399.7 4,399.7
Revaluation of land options 35.4 35.4 35.4
Mark-to-market adjustments of derivatives 14.5 14.5 -
Intangibles (0.9) - -
Fair value of debt - - 166.1
Real estate transfer tax(1) - 436.3 -
At 30 June 2024 18 4,448.7 4,885.9 4,601.2
NAV per share 179.33p 196.96p 185.48p
31 December 2024
Note EPRA NTA EPRA NRV EPRA NDV
£m £m £m
NAV attributable to shareholders 4,567.4 4,567.4 4,567.4
Revaluation of land options 18.0 18.0 18.0
Mark-to-market adjustments of derivatives 18.5 18.5 -
Intangibles (0.7) - -
Fair value of debt - - 192.4
Real estate transfer tax(1) - 444.6 -
At 31 December 2024 18 4,603.2 5,048.5 4,777.8
NAV per share 185.56p 203.51p 192.60p
(1) EPRA NTA and EPRA NDV reflect IFRS values which are net of RETT. RETT are
added back when calculating EPRA NRV.
4. EPRA net initial yield (NIY) and EPRA "topped up" NIY
Six months ended Six months ended Year ended
30 June 2025 30 June 2024 31 December 2024
£m £m £m
Investment property - wholly owned 6,667.8 6,220.0 6,369.8
Investment property - share of joint ventures 4.0 4.4 4.4
Less: development properties (583.6) (276.9) (321.1)
Completed property portfolio 6,088.2 5,947.5 6,053.1
Allowance for estimated purchasers' costs 411.0 401.5 408.6
Gross up completed property portfolio valuation (B) 6,499.2 6,349.0 6,461.7
Annualised passing rental income 311.3 303.4 313.5
Less: contracted rental income in respect of development properties (11.2) (9.6) (16.7)
Property outgoings (2.6) (0.3) (4.4)
Less: contracted rent under rent-free period (9.2) (16.5) (17.3)
Annualised net rents (A) 288.3 277.0 275.1
Contractual increases for fixed uplifts 14.8 21.9 22.6
Topped up annualised net rents (C) 303.1 298.9 297.7
EPRA net initial yield (A/B) 4.44% 4.36% 4.26%
EPRA topped up net initial yield (C/B) 4.66% 4.71% 4.61%
5. EPRA vacancy rate
Six months ended Six months ended Year ended
30 June 2025 30 June 2024 31 December 2024
£m £m £m
Annualised estimated rental value of vacant premises 21.2 13.7 21.5
Portfolio estimated rental value(1) 381.5 364.3 377.9
EPRA Vacancy rate 5.56% 3.76% 5.69%
6. EPRA cost ratio
Six months ended Six months ended Year ended
30 June 2025 30 June 2024 31 December 2024
£m £m £m
Property operating costs 2.6 0.3 4.4
Administration expenses 5.1 4.2 9.1
Management fees 13.3 11.4 24.6
Total costs including and excluding vacant property costs (A) 21.0 15.9 38.1
Vacant property cost (1.3) (0.1) (2.8)
Total costs excluding vacant property costs (B) 19.7 15.8 35.3
Gross rental income - per IFRS 152.4 127.5 281.1
Gross rental income (C) 152.4 127.5 281.1
Total EPRA cost ratio (including vacant property costs) 13.8% 12.5% 13.6%
Total EPRA cost ratio (excluding vacant property costs) 12.9% 12.4% 12.6%
7. EPRA like-for-like rental income
Six months ended Six months ended
30 June 2025 30 June 2024 Change Change
£m £m £m %
Like-for-like rental income 111.1 108.3
Other rental income 0.1 0.2
Like-for-like gross rental income 111.2 108.5 2.7 2.5%
Like for like irrecoverable property expenditure (0.1) (0.1)
Like-for-like net rental income 111.1 108.4 2.7 2.5%
Reconciliation to Net rental income per Statement of Comprehensive Income:
Development properties 6.2 3.1
Properties acquired 34.5 10.4
Properties disposed 0.5 3.1
Once off adjustment - 2.4
Irrecoverable Property Expense (3.1) (0.2)
Total per Statement of Comprehensive Income 149.2 127.2 22.0 17.3%
8. EPRA property-related capital expenditure
Six months ended Six months ended Year ended
30 June 2025 30 June 2024 31 December 2024
£m £m £m
Acquisition(1) 96.5 1,176.8 1,184.3
Development(2) 328.7 117.3 243.6
Transfers to Investment Property (3.4) (7.8) (21.9)
Investment properties:
Tenant incentives(3) 15.3 12.2 22.4
Capitalised interest 6.7 1.6 6.0
Total Capex 443.8 1,300.1 1,434.4
Share for share acquisition of UKCM - (1,163.6) (1,149.1)
Conversion from accrual to cash basis (31.9) (11.3) (50.5)
Total Capex on a cash basis 411.9 125.2 234.8
(1) See note 10
(2) See note 10 and note 11
(3) Fixed rental uplift and tenant lease incentives after adjusting for
amortisation on rental uplift and tenant lease incentives.
9. Total Accounting Return (TAR)
Six months ended Six months ended Year ended
30 June 2025 30 June 2024 31 December 2024
Opening EPRA NTA 185.56p 177.15p 177.15p
Closing EPRA NTA 188.17p 179.33p 185.56p
Change in EPRA NTA 2.61p 2.18p 8.41p
Dividends paid 4.10p 3.88p 7.53p
Total growth in EPRA NTA plus dividends paid 6.71p 6.06p 15.94p
Total return 3.6% 3.4% 9.0%
10 . Loan to value ratio
The proportion of our gross asset value that is funded by net borrowings.
Six months ended Six months ended Year ended
30 June 2025 30 June 2024 31 December 2024
£m £m £m
Gross debt drawn 2,176.1 1,961.0 1,963.9
Less: cash (66.9) (48.1) (80.6)
Net debt 2,109.2 1,912.9 1,883.3
Gross property value 6,822.0 6,404.6 6,548.6
Loan to value ratio 30.9% 29.9% 28.8%
11 . EPRA Loan to value ratio
The proportion of our gross asset value that is funded by net borrowings.
Six months ended Six months ended Year ended
30 June 2025 30 June 2024 31 December 2024
£m £m £m
Gross debt drawn 2,202.9 1,961.0 1,993.9
Working capital(1) 36.9 74.7 58.4
Less: cash (66.9) (48.1) (80.6)
Net debt 2,172.9 1,987.6 1,971.7
Gross property value 6,822.0 6,404.6 6,548.6
Loan to value ratio 31.9% 31.0% 30.1%
( 1) Working capital is calculated as the net position of the following line
items shown on the Balance Sheet: Current trade and other receivables, current
trade and other payables and current tax liabilities.
Glossary of Terms
"Adjusted Earnings" Post-tax earnings attributable to shareholders, adjusted
to include licence fees receivable on forward funded development assets,
finance income on interest rate derivatives and adjusts for other earnings not
supported by cash flows. "Adjusted Earnings per share" or "Adjusted EPS" on a
per share basis.
"Big Box" A "Big Box" property or asset refers to a specific subsegment of the
logistics sector of the real estate market, relating to very large logistics
warehouses (each with typically over 500,000 sq ft of floor area) with the
primary function of holding and distributing finished goods, either downstream
in the supply chain or direct to consumers, and typically having the following
characteristics: generally a modern constructed building with eaves height
exceeding 12 metres; let on long leases with institutional-grade tenants; with
regular, upward-only rental reviews; having a prime geographical position to
allow both efficient stocking (generally with close links to sea ports or rail
freight hubs) and efficient downstream distribution; and increasingly with
sophisticated automation systems or a highly bespoke fit out.
"Board" The Directors of the Company.
"BREEAM" The Building Research Establishment Environmental Assessment Method
certification of an asset's environmental, social and economic sustainability
performance, using globally recognised standards.
"Company" Tritax Big Box REIT plc (company number 08215888).
"Contracted annual rent roll" Annualised rent, adjusting for the inclusion of
rent free period.
"CPI" Consumer Price Index, a measure that examines the weighted average of
prices of a basket of consumer goods and services, such as transportation,
food and medical care as calculated on a monthly basis by the Office of
National Statistics.
"Current Development Pipeline" Assets that are in the course of construction
or assets for which we have made a construction commitment.
"CVA" A company voluntary arrangement, a legally binding agreement between a
business and its creditors which sets out a debt repayment plan and enables a
viable business to avoid liquidation.
"Directors" The Directors of the Company as of the date of this report being
Aubrey Adams, Elizabeth Brown, Alastair Hughes, Richard Laing, Karen
Whitworth, Wu Gang and Kirsty Wilman.
"Dividend pay-out ratio" Dividend per share divided by Adjusted Earnings per
share.
"Development Management Agreement" or "DMA" An agreement between the Group and
a developer setting out the terms in respect of the development of an asset.
In particular, the development of the Tritax Big Box Developments Portfolio is
the subject of a DMA between Tritax Big Box Developments Holdings and Tritax
Big Box Developments ManCo.
"Development portfolio" or "Development assets" The Group's Development
portfolio comprises its property assets which are not Investment assets,
including land, options over land as well as any assets under construction on
a speculative basis.
"EPC rating" A review of a property's energy efficiency.
"EPRA" European Public Real Estate Association.
"EPRA Earnings" Earnings from operational activities (which excludes the
licence fees receivable on our Forward Funded Development assets).
"EPRA NAV" or "EPRA Net Asset Value" The Basic Net Asset Value adjusted to
meet EPRA Best Practices Recommendations Guidelines (2016) requirements by
excluding the impact of any fair value adjustments to debt and related
derivatives and other adjustments and reflecting the diluted number of
Ordinary Shares in issue.
"EPRA Triple Net Asset Value (NNNAV)" EPRA NAV adjusted to include the fair
values of financial instruments, debt and deferred taxes.
"EPRA Net Tangible Asset (NTA)" The Basic Net Asset Value adjusted to meet
EPRA Best Practices Recommendations Guidelines (2019) requirements by
excluding intangibles and the impact of any fair value adjustments to related
derivatives. This includes the revaluation of land options.
"EPRA Net Reinstatement Value (NRV)" IFRS NAV adjusted to exclude the impact
of any fair value adjustments to related derivatives. This includes the
revaluation of land options and the Real estate transfer tax (RETT).
"EPRA Net Disposal Value (NDV)" IFRS NAV adjusted to include the fair values
of debt and the revaluation of land options.
"EPRA Net Initial Yield (NIY)" Annualised rental income based on the cash
rents passing at the balance sheet date, less non-recoverable property
operating expenses, divided by the market value of the property, increased
with (estimated) purchaser's costs.
"EPRA 'Topped-Up' NIY" This measure incorporates an adjustment to the EPRA NIY
in respect of the expiration of rent-free periods (or other unexpired lease
incentives, such as discounted rent periods and step rents).
"EPRA Vacancy" Estimated market rental value (ERV) of vacant space divided by
the ERV of the whole portfolio.
"EPRA Cost Ratio" Administrative and operating costs (including costs of
direct vacancy) divided by gross rental income.
"Estimated cost to completion" Costs still to be expended on a development or
redevelopment to practical completion, including attributable interest.
"Estimated rental value" or "ERV" The estimated annual market rental value of
lettable space as determined biannually by the Group's valuers. This will
normally be different from the rent being paid.
"FCA" The United Kingdom Financial Conduct Authority (or any successor entity
or entities).
"Forward Funded Development" Where the Company invests in an asset which is
either ready for, or in the course of, construction, pre-let to an acceptable
counterparty. In such circumstances, the Company seeks to negotiate the
receipt of immediate income from the asset, such that the developer is paying
the Company a return on its investment during the construction phase and prior
to the tenant commencing rental payments under the terms of the lease. Expert
developers are appointed to run the development process.
"Foundation asset" Foundation assets provide the core, low-risk income that
underpins our business. They are usually let on long leases to clients with
excellent covenant strength. These buildings are commonly new or modern and in
prime locations, and the leases have regular upward only rent reviews, often
either fixed or linked to Inflation Indices.
"FRI Lease" Full Repairing and Insuring Lease. During the lease term, the
tenant is responsible for all repairs and decoration to the property, inside
and out, and the building insurance premium is recoverable from the tenant.
"Future Development Pipeline" The Group's land portfolio for future
development typically controlled under option agreements which do not form
part of the Current or Near Term development pipelines.
"Gearing" Net borrowings divided by total shareholders' equity excluding
intangible assets and deferred tax provision.
"GIA" Under the RICS Code of Measuring Practice (6th Edition) the Gross
Internal Area (GIA) is the basis of measurement for valuation of industrial
buildings (including ancillary offices) and warehouses. The area of a building
measured to the internal face of the perimeter walls at each floor level
(including the thickness of any internal walls). All references to building
sizes in this document are to the GIA.
"GAV" The Group's gross asset value.
"Global Real Estate Sustainability Benchmark (GRESB) Assessment" GRESB
assesses the ESG performance of real estate and infrastructure portfolios and
assets worldwide, providing standardised and validated data to the capital
markets.
"Gross rental income" Contracted rental income recognised in the period, in
the income statement, including surrender premiums and interest receivable on
finance leases. Lease incentives, initial costs and any contracted future
rental increases are amortised on a straight-line basis over the lease term.
"Group" or "REIT Group" The Company and all of its subsidiary undertakings.
"IMA" The Investment Management Agreement between the Manager and the Company.
"Investment portfolio" or "Investment assets" The Group's Investment Portfolio
comprises let or pre-let (in the case of Forward Funded Developments) assets
which are income generating, as well as any speculative development assets
which have reached practical completion but remain unlet.
"Investment property" Completed land and buildings held for rental income
return and/or capital appreciation.
"Land asset" Opportunities identified in land which the Manager believes will
enable the Company to secure, typically, pre-let Forward Funded Developments
in locations which might otherwise attract lower yields than the Company would
want to pay, delivering enhanced returns but controlling risk.
"Listing Rules" The listing rules made by the Financial Conduct Authority
under section 73A of FSMA.
"Loan Notes" The loan notes issued by the Company on 4 December 2018.
"Loan to Value (LTV)" The proportion of our gross asset value that is funded
by net borrowings.
"Logistics" Encompasses the B8 and E use categories under the Town and Country
Planning (Use Classes) Order 1987 as amended from time to time.
"London Stock Exchange" London Stock Exchange plc.
"Manager" Tritax Management LLP (partnership number 0C326500).
"Near-term Development Pipeline" Sites which have either received planning
consent or sites where planning applications have been submitted prior to the
year end.
"Net Initial Yield (NIY)" The annual rent from a property divided by the
combined total of its acquisition price and expenses.
"Net rental income" Gross rental income less ground rents paid, net service
charge expenses and property operating expenses.
"Net zero carbon" Highly energy efficient and powered from on-site and/or
off-site renewable energy sources, with any remaining carbon balance offset.
"Non-PID Dividend" A dividend received by a shareholder of the principal
company that is not a PID.
"Ordinary Shares" Ordinary Shares of £0.01 each in the capital of the
Company.
"Passing rent" The annual rental income currently receivable on a property as
at the balance sheet date (which may be more or less than the ERV). Excludes
service charge income (which is netted off against service charge expenses).
"PID" or "Property income distribution" A dividend received by a shareholder
of the principal company in respect of profits and gains of the Property
Rental Business of the UK resident members of the REIT group or in respect of
the profits or gains of a non-UK resident member of the REIT group insofar as
they derive from their UK Property Rental Business.
"Portfolio" The overall portfolio of the Company including both the Investment
and Development portfolios.
"Portfolio Value" The value of the Portfolio which, as well as the Group's
standing assets, includes capital commitments on Forward Funded Developments,
Land Assets held at cost, the Group's share of joint venture assets and other
property assets.
"Pre-let" A lease signed with a client prior to commencement of a development.
"REIT" A qualifying entity which has elected to be treated as a Real Estate
Investment Trust for tax purposes. In the UK, such entities must be listed on
a recognised stock exchange, must be predominantly engaged in property
investment activities and must meet certain ongoing qualifications.
"Rent roll" See "Passing rent".
"RPI" Retail price index, an inflationary indicator that measures the change
in the cost of a fixed basket of retail goods as calculated on a monthly basis
by the Office of National Statistics.
"SDLT" Stamp Duty Land Tax - the tax imposed by the UK Government on the
purchase of land and properties with values over a certain threshold.
"Shareholders" The holders of Ordinary Shares.
"SONIA" Sterling Overnight Index Average
"Speculative development" Where a development has commenced prior to a lease
agreement being signed in relation to that development.
"sq ft" Square foot or square feet, as the context may require.
"Tritax Big Box Developments shareholders" The holders of B and C Shares in
Tritax Big Box Developments.
"Tritax Big Box Developments ManCo" Tritax Big Box Developments Limited, a
private limited company incorporated in England and Wales (registered number
11685402) which has an exclusive development management agreement with Tritax
Big Box Developments to manage the development of the Tritax Big Box
Developments Portfolio.
"Topped up net initial yield" Net initial yield adjusted to include notional
rent in respect of let properties which are subject to a rent-free period at
the valuation date thereby providing the Group with income during the
rent-free period. This is in accordance with EPRA's Best Practices
Recommendations.
"Total Expense Ratio" or "TER" The ratio of total administration and property
operating costs expressed as a percentage of average net asset value
throughout the period.
"Total Accounting Return" Net total return, being the percentage change in
EPRA NTA over the relevant period plus dividends paid.
"Total Shareholder Return" A measure of the return based upon share price
movement over the period and assuming reinvestment of dividends.
"Triple Net Lease" - A triple net lease (NNN lease) is a commercial lease
agreement in which the tenant is responsible for paying property taxes,
insurance, and maintenance costs in addition to rent and utilities. This type
of lease shifts most property expenses from the landlord to the tenant.
"Tritax Big Box Developments" Tritax Big Box Development Holdings Limited, a
limited company incorporated in Jersey (registered number 127784).
"Tritax Big Box Developments Portfolio" The portfolio of assets held through
Tritax Big Box Developments following the acquisition of db Symmetry in
February 2019, including land, options over land and a number of assets under
development.
"True Equivalent Yield (TEY)" The internal rate of return from an Investment
property, based on the value of the property assuming the current passing rent
reverts to ERV on the basis of quarterly in advance rent receipts and assuming
the property becomes fully occupied over time.
"UK AIFMD Rules" The laws, rules and regulations implementing AIFMD in the UK,
including without limitation, the Alternative Investment Fund Managers
Regulations 2013 and the Investment Funds sourcebook of the FCA.
"Value Add asset" These assets are typically let to clients with good
covenants and offer the chance to grow the assets' capital value or rental
income, through lease engineering or physical improvements to the property. We
do this using our asset management capabilities and understanding of client
requirements. These are usually highly re-lettable. It also includes assets
developed on a speculative basis which have reached practical completion but
remain unlet at the period end.
"WAULT" or "Weighted Average Unexpired Lease Term" The income for each
property applied to the remaining certain term for an individual property or
the lease and expressed as a portfolio average in years.
"Waystone" or "Waystone Asset Services" A trading name of Waystone
Administration Solutions (company number 2605568).
"Yield on cost" The expected gross yield based on the estimated current market
rental value (ERV) of the developments when fully let or actual rental value
for completed developments or those pre-let, as appropriate, divided by the
estimated or actual total costs of the development.
1. H1 2024 take-up subsequently revised down from initial estimates.
2 (#_ftnref2) . CBRE.
3 (#_ftnref3) . Savills
[4 (#_ftnref4) ]. DTRE
5 (#_ftnref5) . This reflects shorter-dated leases, typically in smaller
assets, where no rent review is undertaken within the lease period.
6 (#_ftnref6) . Assumes (i) all existing vacant assets are let at ERV in
2025 (ii) all lease expiries are re-let to June 2025 ERV in the year of expiry
(iii) all open market rent reviews are reviewed to June 2025 ERV in the year
of review, and (iv) inflation-linked and fixed reviews are reviewed in line
with the contractual position, considering any floors and caps.
7 (#_ftnref7) . Rent for overdue reviews is accrued and recognised within
rental income at a level that is reasonably expected to be achieved on
settlement.
8 (#_ftnref8) . Includes both non-strategic and logistics assets.
9 (#_ftnref9) . £278.2 million when including transactions which had
exchanged or completed since 31 December 2024.
(10[9 )Excluding additional development management agreement income
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