Successful strategy execution
- multiple growth drivers - positive outlook
Additional £22.7 million of
contracted rent from active management and development
lettings
Secured one of UK's largest
2024 pre-lets - 1 million sq ft to a global leader in
e-commerce
£306.2 million of disposals
above book value, including £181.2 million of non-strategic
assets
31 January 2025, Tritax Big Box REIT
plc ("Tritax Big Box" or "the Company") provides an update on its
operational performance for the financial year ended 31 December
2024.
Active management - secured additional £11.6 million of
contracted rent (FY 2023: £4.9 million)
Leveraging Tritax Management's
enhanced asset management platform, we have secured:
- £8.4 million increase in contracted rent from rent reviews
reflecting an average 11.7% increase in passing rent, and 34.6%
increase across all open market reviews.
- £3.2 million increase in contracted rent from other asset
management initiatives, 15.9% ahead of previous passing
rent.
- Including a £1.9 million increase in rental income from UKCM
logistics assets, representing a 5.6% increase since
acquisition.
- 5.4% like-for-like portfolio ERV growth during FY24,
reflecting favourable supply/demand dynamics resulting in
attractive levels of market rental growth for high quality
logistics real estate.
Development lettings - secured additional £11.1 million of
contracted rent (FY 2023: £7.8 million)
We have continued to make good
development progress during the period, including:
- £11.1 million of contracted rent secured, including 1.0
million sq ft pre-let to a global leader in e-commerce,
representing one of the UK's largest pre-lets in 2024.
- 1.9 million sq ft of development starts in 2024, including 0.4
million sq ft which has been pre-sold under a DMA
contract:
o 79%
of 2024 development starts either pre-let or pre-sold with the
remaining 21% under offer;
o 7.0%
average yield on cost expected across FY24 starts, in line with
guidance;
o Pre-sold developments contributed approximately £23 million of
DMA income in FY24;
- 1.2 million sq ft of planning consents secured in period and a
further 11.1 million sq ft submitted awaiting
determination.
o 5.3
million sq ft of current planning consented land available for
development
Targeting exceptional returns from 147 MW data centre
development opportunity and further 1 GW pipeline
Shortly after the period end, we
announced the Company's first major data centre development
opportunity and data centre pipeline:
-
Phase 1 data centre at Manor Farm
targeting exceptional returns with a 9.3% yield on cost (net of all
costs and contingent payments) to Tritax Big Box
shareholders.
- Potential for an accelerated delivery timeline of Phase 1 with
practical completion and income recognition as early as H2
2027.
- Pipeline of additional grid connection agreements across the
UK which could provide c.1 GW of power for further data centre
opportunities, beyond those at Manor Farm, and are expected to be
deliverable from 2028 onwards.
-
Further details can be found
at https://tritaxbigbox.co.uk/investors/results-presentations
Recycling capital - £306.2 million of disposals above book
value including £181.2 million of non-strategic UKCM
assets
In eight months, we have delivered
the upper end of our £150-200 million guidance for UKCM
non-strategic asset disposals and have continued our ongoing
capital recycling programme:
|
|
Consideration
(£
million)
|
Rental
income
(£
million)
|
NIY
(%)
|
|
UKCM non-strategic
portfolio[1]
|
181.2
|
11.9
|
6.2
|
|
Logistics portfolio[2]
|
125.0
|
6.7
|
5.0
|
|
Total
|
306.2
|
18.6
|
5.7
|
- The UKCM non-strategic disposals achieved a 2.8% premium to
the fair value at acquisition.
- A further c. £150 million of UKCM non-strategic assets
currently under offer.
- Post completion of exchanged disposals, non-strategic assets
will represent approximately 4.9% of total GAV.
-
£125.0 million of Big Box logistics disposals at a
3.3% premium to book value at 30 June 2024, forming part of our
ongoing portfolio optimisation and capital recycling.
26%
embedded portfolio reversion - providing significant rental income
growth opportunities
- £6.5 billion total portfolio value as at 31 December 2024 (31
December 2023: £5.0 billion).
- 26.1% total portfolio rental reversion at 31 December 2024 (31
December 2023: 23.0%).
- 3.3% underlying vacancy, with further 2.4% from speculative
developments competed in November 2024 to give total of 5.7% (31
December 2023: 2.5%) with the potential to add additional rent of
£21.5 million per annum.
- Weighted average unexpired lease term (WAULT) of 10.3 years as
at 31 December 2024 (31 December 2023: 11.4 years).
Strong balance sheet - providing financial flexibility and
significant liquidity
- 29% Loan to Value at 31 December 2024 (31 December 2023:
32%).
- Weighted average cost of debt of 3.1%, with 93% of drawn debt
fixed or hedged (31 December 2023: 2.9%).
- Weighted average debt maturity of 4.5 years, total available
liquidity in excess of £500 million (31 December 2023: 5.2
years).
Colin Godfrey, CEO for Tritax Big Box,
commented:
"We are delivering and enhancing
performance across all aspects of our business as we make excellent
progress implementing our strategy. In line with guidance, we saw
an uptick in activity in H2 2024, most notably securing one of the
UK's largest pre-lets of the year of nearly 1 million sq ft to a
global leader in ecommerce. Strong development activity complements
the active management of our portfolio, including the successful
integration of UKCM assets. We have leveraged our full expertise to
enhance the UKCM assets, with the team working rapidly to capture
higher rental income and sell non-strategic assets in aggregate at
a premium to book cost. Across our portfolio we have added £11.6
million in additional rental income from asset management with a
pipeline of further opportunities identified. These asset
management initiatives, together with our development activities,
have further enhanced our attractive income characteristics by
adding a total of £22.7 million to contracted rent.
"We enter 2025 with growing
confidence, driven by improving occupational market conditions, our
expanded range of growth drivers - which now include highly
accretive data centre developments - and enabled by ongoing
investment in our high-calibre team, dedicated to achieving
continued success for Tritax Big Box."
Full year results presentation:
The Company will announce its full
year results on Friday 28 February. A presentation will be webcast
at 8:00am which will include a live question and answer session. To
register attendance at the webcast please use the following
link:
https://brrmedia.news/BBOX_FY_24
Tritax Group
Colin Godfrey, CEO
Tel: +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
Tel: +44 (0) 77760 160 248 /
+44 (0) 7581
056 415
Email: tritax@kekstcnc.com
The Company's LEI is:
213800L6X88MIYPVR714
Notes:
Tritax Big Box REIT plc (ticker:
BBOX) owns, manages and develops supply chain infrastructure that
is critical to the UK economy. The company has the UK's largest
logistics investment and development portfolio, providing
businesses with the space to succeed.
Using its sector specialism and deep
market insights, BBOX proactively manages high-quality
logistics assets, typically let on long-term leases with
upward-only rent reviews, majoring on locations that have good
access to power, connectivity and people. BBOX has market leading
ESG credentials, delivering sustainable real estate solutions
and capitalising on the significant opportunities arising from
structurally supported occupational demand and limited supply of
modern logistics real estate in the UK.
The Company is a real estate
investment trust to which Part 12 of the UK Corporation Tax Act
2010 applies, is listed on the premium segment of the Official List
of the UK Financial Conduct Authority and is a constituent of the
FTSE 250, FTSE EPRA/NAREIT and MSCI indices.
See tritaxbigbox.co.uk for
more information.
