Image source: © 2025 Krish Capital Pty. Ltd.

Highlights

  • BBOX net rental income rose 17.3% YoY to £149.2 million, supported by UKCM integration
  • Tritax Big Box advanced 1.1 million sq ft of logistics development, 33% pre-let or sold
  • Company recorded growing data centre activity, targeting 9–11% yield-on-cost by 2028

Tritax Big Box REIT plc (LSE:BBOX), a UK real estate investment trust focused on logistics and industrial properties, released its half-year results for the six months ending 30 June 2025. The period was marked by higher rental income, logistics development progress, and capital deployment into data centre assets. Adjusted earnings per share (EPS) increased 6.4% year-on-year to 4.63 pence , underpinned by a 17.3% rise in net rental income to GBP 149.2 million. This was driven by the full-period impact of the UK Commercial Property REIT (UKCM) acquisition, alongside development completions and rent reviews. The UKCM portfolio alone saw a 13.2% uplift in contracted rent since its acquisition.

Like-for-like estimated rental value (ERV) growth across the logistics portfolio stood at 2.3%, while the total portfolio value rose to GBP 6.82 billion. A 1.4% capital value increase was attributed to income growth, asset management, and development gains. Equivalent yields remained stable at 5.72%. The logistics portfolio's reversionary potential grew to 28.9%, equating to GBP 83.8 million in potential rent uplift, with approximately 77% expected to be captured within three years.

During the first half, Tritax Big Box commenced development on 1.1 million sq ft of logistics space, of which 33% was pre-let or pre-sold. A further 0.4 million sq ft was let post-period, adding GBP 3.9 million to passing rent. As of H1FY25, 2.5 million sq ft was under construction, with more than half either let or sold. The company anticipates development lettings to be weighted toward the second half of FY25. Tritax also progressed its entry into data centre development. Two major schemes are in motion: the 107MW Manor Farm project, targeting GBP 34 million in annual rent at a 9.3% yield-on-cost, expected to complete in H2 2027; and a second site with 125MW capacity targeting GBP 23–25 million in rent with similar yield expectations, for 2028 delivery. Additional pipeline opportunities representing approximately 1GW in power capacity have been identified.

To support organic growth, the company completed GBP 204.8 million in disposals during H1, including GBP 125.8 million in UKCM non-core assets. Including post-period activity, total disposals reached GBP 278.2 million, with a blended net initial yield of 6.5%. Longer-term guidance was increased to GBP 250–350 million of annual disposals. Loan-to-value (LTV) stood at 30.9% (pro forma: 30.2%), with net debt/EBITDA of 7.9x. Liquidity at the period end exceeded GBP 470 million. The company also refinanced a GBP 400 million revolving credit facility on a five-year term.

BBOX is trading 0.21% higher at GBP 142.90 per share as of 6 August 2025.