Tritax Big Box REIT H1 Earnings Call Highlights

Key Points

• First-half performance improved: Net rental income rose 16.2% to £173.3 million, adjusted EPS increased 7% to 4.41 pence, and the dividend grew 4.4% to 4.0 pence per share. Like-for-like rental growth accelerated to 5.1%.
• Data center strategy expanded significantly: Tritax secured an additional 235 megawatts of power, bringing total secured capacity to 507 megawatts, and raised its adjusted EPS growth ambition to 65% by 2031 or sooner. The expanded pipeline could generate £107 million–£119 million in annual data center rent.
• Strong reversion and capital recycling support growth: The company captured £6.5 million of rental reversion in the first half, with more than £100 million of potential reversion overall, while completing £259 million of disposals. Management expects up to £400 million of disposals in 2026 and plans to reinvest in higher-return logistics and data center developments.

Tritax Big Box REIT LON: BBOX reported higher first-half rental income, earnings and dividends as active asset management, capital recycling and development activity supported growth. The company also expanded its data center ambitions after securing a further 235 megawatts of power, nearly doubling secured capacity to 507 megawatts.

Chief Executive Officer Colin Godfrey said the company was increasing its adjusted earnings-per-share growth ambition to 65% by 2031 or sooner, from a previous target of 50% by 2030. The increased target reflects the potential contribution from two additional data center schemes in the Greater London availability zone.

“We’ve built a unique platform in the most exciting segments of U.K. real estate,” Godfrey said, citing the company’s logistics portfolio, development platform and data center opportunity.

First-half financial performance

Chief Financial Officer Frankie Whitehead said net rental income rose 16.2% to £173.3 million in the first half of 2026, driven by the contribution from the Blackstone portfolio acquired in October 2025 and like-for-like rental growth. EPRA like-for-like rental growth was 5.1%, more than twice the level of the prior period.

Adjusted EPS, excluding all development management agreement income, increased 7% to 4.41 pence. No development management agreement income was recognized during the period. The dividend rose 4.4% to 4.0 pence per share, representing a 91% payout ratio.

The portfolio was valued at £7.7 billion at June 30. EPRA net tangible assets per share declined 1% to £1.859, reflecting net disposals and modest valuation movements. The company’s equivalent yield moved out 10 basis points to 5.8%, while like-for-like estimated rental value growth remained 1.9% for the six months.

Tritax Big Box reported an underlying total accounting return of 1.6% and a reported total accounting return of 1.3%, after the effect of a land auction impairment and a completion-statement adjustment related to the Blackstone acquisition.

Rental reversion and capital recycling

The company secured £8.6 million of additional annual rental income across lease events, more than 50% above the first half of the prior year. Passing rents increased by an average of 10.5% across those events.

Whitehead said the company captured £6.5 million of rental reversion in the first half, representing 100% of the potential previously identified for those lease events. A further £4.5 million was attached to lease events in progress, while more than £15 million of rental reversion was available from second-half events.

Portfolio estimated rental value was 29% ahead of contracted rent, and Godfrey said the company estimated that more than 70% of current rental reversion could be captured within the next three years. He added that the overall reversionary opportunity exceeded £100 million.

Disposals totaled £259 million during the first half and £344 million year to date, at an average 2% above prevailing book values. Since January 2023, Tritax Big Box has redeployed more than £1 billion from disposals into higher-returning opportunities. The company expects to complete up to £400 million of disposals in 2026, while indicating that ongoing capital rotation could amount to up to £350 million annually.

Loan-to-value stood at 32.9% at the period end and 32.1% including post-period-end disposals. The company had approximately £530 million of available liquidity, an average debt maturity of four years and an average debt cost of 3.6%.

Logistics development and Blackstone integration

Tritax Big Box had 1.2 million square feet of logistics space under construction, representing £13 million of potential additional rent, with 78% already secured through pre-leasing. It completed 0.6 million square feet of space with potential rent of £6.9 million and an expected yield on cost above 10%.

Logistics development capital expenditure was £79 million in the first half, below expectations because of planning delays at Manor Farm and another logistics site. Whitehead said capital expenditure should increase in the second half, with long-term annual logistics development spending expected to be £200 million to £250 million.

Portfolio vacancy increased to 6.5%, from 5.6% at year-end, due to recently completed speculative developments. Underlying vacancy was stable at 3.1%. Management said it assumes a 12-month void period for speculative buildings and expects to lease the recently completed space within that timeframe.

Godfrey said the Blackstone urban logistics portfolio was performing in line with, and in some areas ahead of, original expectations. Contracted rent across that portfolio increased 4.4%, while 14 new lettings added about £2 million of income. The urban logistics assets account for around 40% of the company’s total rental reversion opportunity.

Data center pipeline expands

The company’s additional 235 megawatts of secured power is expected to be delivered in 2030 and 2031 and supports two new schemes. Tritax Big Box said the projects have potential yields on cost of 9% to 11% and profit on cost above 50%.

The new schemes could increase potential annual data center rental income to between £107 million and £119 million, compared with £58 million previously identified from Manor Farm and Chelmsford. The company said all four secured schemes form part of a broader opportunity pipeline exceeding one gigawatt of potential power capacity.

At Manor Farm, the company had recognized approximately 20% of expected scheme profit at June 30, increasing to 30% in July after the judicial-review period passed. It expects a pre-let in the second half and anticipates recognizing 60% of scheme profit by year-end. At Chelmsford, about 10% of expected scheme profit had been recognized at June 30, with at least 30% anticipated by year-end if planning permission is received.

Whitehead said up to £100 million of data center development profit could be recognized during the current financial year. Data center capital expenditure targets from 2027 were increased to £200 million to £400 million annually, roughly double prior expectations.

During the question-and-answer session, management said logistics development should provide the larger income contribution in the earlier part of the company’s five- to six-year plan, while data center income is expected to begin from 2028 and accelerate earnings growth toward 2030 and 2031. The company also said its recently announced £350 million equity raise was intended to support the expanded data center opportunity and position the business with leverage around 30% or slightly below for the foreseeable future.

About Tritax Big Box REIT (LON:BBOX)

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 targets 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.

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