Tritax Big Box REIT (LON:BBOX) used its full-year results webcast to outline what management described as a year of “significant strategic progress,” supported by income growth, capital recycling, and the continued build-out of its logistics and data center plans.
Chairman Aubrey Adams opened the presentation by calling the results “a strong set,” and said the business enters the year ahead “with a real sense of momentum.” Adams also said the webcast marked his final results presentation as chairman, as he plans to retire from the board after nine years. He added that the company’s elevation to the FTSE 100 becomes effective on Monday.
CEO highlights: strategy execution and growth ambitions
Godfrey said 2025 activity included record rental reversion capture, expansion of the logistics development platform, and progress on the data center pipeline, including the launch of a “power-first” model. He also pointed to integration of UKCM and the addition of a Blackstone portfolio, alongside what he described as a significant disposal program to recycle capital and increase returns.
Despite that capital recycling, Godfrey said the company grew net rental income by 10.6%, increased adjusted EPS by 4.1%, and delivered dividend growth of 4.4%.
Financial performance: income growth, costs, and balance sheet
CFO Frankie Whitehead reported like-for-like rental growth of 4.2% in 2025. Adjusted EPS rose 4.1% to GBP 0.0838 per share, while the dividend increased 4.4% to GBP 0.08 per share. Whitehead said the portfolio value rose by over 20% to GBP 7.9 billion, and EPRA NTA increased to GBP 1.878 per share.
Whitehead attributed the 10.6% rise in net rental income to a full-year contribution from UKCM, a 10-week contribution from the Blackstone portfolio, and like-for-like growth net of disposals. Income from Development Management Agreements (DMAs) was GBP 15.5 million, and Whitehead guided to DMA income reverting to a GBP 3 million to GBP 5 million run rate in financial year 2026.
On costs, Whitehead said the EPRA cost ratio improved to 12.4%, which she described as one of the most efficient platforms in the sector. The payout ratio was consistent with the prior year at 95%.
Capital deployment during the year included logistics development CapEx of GBP 231 million and GBP 209 million into the first two data center schemes. Logistics acquisitions totaled over GBP 1 billion, largely reflecting the Blackstone portfolio, which Whitehead said is expected to deliver a 6% running yield in 2026 and is “immediately accretive” to adjusted earnings.
Whitehead said the company sold or exchanged to sell GBP 416 million of assets during the year and is now 80% through the disposal program of UKCM non-strategic assets. Year-end loan-to-value (LTV) was 33.2%, reducing to 32.7% on a pro forma basis after the completion of GBP 62 million of post-year-end disposals.
Operations: rental reversion, leasing activity, and vacancy
Whitehead said the asset management team added GBP 10.5 million of contracted rent through rent reviews and lease events. Open market rent reviews and hybrid reviews averaged 36% and 21% increases in passing rent, respectively. Vacancy reduced slightly to 5.6%.
She also highlighted a “three-year reversionary bridge” as part of the Blackstone transaction, noting the acquired portfolio came with GBP 20 million of cash intended to bridge passing rent at acquisition and market-based ERVs. The release of that bridge will be recognized within adjusted earnings over the next three financial years on a reducing annual basis.
Development and data centers: pipeline and planning timeline
On development, Whitehead said the company commenced construction on 1.4 million sq ft during the year, with potential to deliver over GBP 13 million in headline rent. It secured 0.4 million sq ft of development lettings, adding nearly GBP 4 million to contracted rent at a yield on cost at the top end of the 6% to 8% target range. The year ended with 1.8 million sq ft under construction representing GBP 19.6 million of potential rent, 53% of which was pre-let.
Godfrey said the company’s three growth drivers are: capturing rental reversion, developing logistics assets at a 6% to 8% yield on cost, and developing pre-let data centers targeting a 9% to 11% yield on cost using the power-first model. He said rental reversion and vacancy provide the opportunity to increase rental income by over GBP 100 million, with 73% deliverable within the next three years, requiring minimal capital.
On the logistics market, Godfrey cited 2025 take-up of 25.6 million sq ft, up 22% year-on-year, and said demand was broad-based. He said supply is tightening, with space under construction down 28% year-on-year and speculative development almost 50% lower, pointing to fewer completions in 2026. He also referenced market ERVs up 3.9% and investment volumes of nearly GBP 9 billion, with prime yields holding at 5.25% since 2022.
For data centers, Godfrey said power is the key supply constraint and argued the power-first model enables faster delivery and lower risk. Management said the company has built a pipeline with more than 230 MW of power across the first two sites and potential for GBP 58 million of annual rent. Whitehead provided a detailed update on Manor Farm (the first data center project), saying the planning application has been called in by the Secretary of State and the Planning Inspectorate indicated a determination on or before 17 March 2026. She said the company is in advanced negotiations with one potential occupier on a pre-let, and outlined an 18-month construction timeline targeting practical completion at the end of 2027 and full income generation in 2028. A second data center site is also progressing through planning, sitting behind Manor Farm in timing, and Whitehead said the broader pipeline totals a potential 1 GW.
Q&A: demand drivers, tenants, dividends, and FTSE 100
In the Q&A, Godfrey said e-commerce represents about 28% of total retail sales and is expected to continue growing above inflation, but emphasized that demand is diversified, with third-party logistics operators contributing around 30% of take-up in 2025, followed by manufacturing. Whitehead said the company conducts ongoing stress testing and highlighted portfolio diversity and a strong rent collection history. She also said being “underrented” could accelerate income capture if a customer were lost.
Asked about tenant concentration, management said Amazon represents 13% of rent. On vacancy, Godfrey said overall vacancy is 5.6%, comprising 3.1% in investment assets and 2.5% in development assets.
On dividends, management said the target is to increase the dividend every year on a sustainable basis, linking the outlook to the adjusted earnings growth ambition of 50% by 2030. On index inclusion, management said governance expectations are broadly similar to the FTSE 250, but suggested FTSE 100 status could expand the shareholder base due to index-tracking flows and increased scrutiny.
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. BBOX 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 tenants on long-term leases with upward-only rent reviews and geographic and tenant diversification throughout the UK.
