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Highlights:
- Rental Income Growth: £11.6 million in additional contracted rent, more than double the £4.9 million secured in 2023.
- Development Success: £11.1 million in contracted rent from new development lettings, up from £7.8 million in 2023.
- Data Centre Expansion: A 147 MW development at Manor Farm, targeting a 9.3% yield on cost, with a 1 GW pipeline for future projects.
Tritax Big Box REIT plc (LSE:BBOX) has reported strong operational performance for the financial year ending 31 December 2024, driven by significant rental growth, active asset management, and strategic expansion into the data centre sector.
Strong Asset Management Fuels Rental Growth
Tritax Big Box capitalised on robust demand for logistics assets, securing £11.6 million in new contracted rent, a significant increase over the previous year. Key contributors included:
- £8.4 million from rent reviews, reflecting an 11.7% rise in passing rent and 34.6% growth in open market reviews.
- £3.2 million from asset management initiatives, achieving rental uplifts 15.9% above previous levels.
- £1.9 million increase from UKCM logistics assets, marking a 5.6% rise since acquisition.
- Like-for-like portfolio ERV growth of 5.4% in 2024, supported by strong supply-demand fundamentals.
Development Momentum Strengthens Portfolio
Tritax Big Box continues to expand its high-quality logistics portfolio, securing £11.1 million in contracted rent from new development lettings. Key developments included:
- A 1.0 million sq ft pre-let to a global e-commerce leader, one of the largest UK pre-lets in 2024.
- 1.9 million sq ft of development starts, with 79% pre-let or pre-sold and the remainder under offer.
- A 7.0% average yield on cost, in line with company expectations.
- Pre-sold developments generating £23 million in development management agreement (DMA) income.
- 1.2 million sq ft of planning consents secured, with 11.1 million sq ft in the approval pipeline.
Strategic Move into Data Centres
Recognising the high-growth potential of digital infrastructure, Tritax Big Box has made a significant entry into the data centre market:
- Phase 1 at Manor Farm will deliver a 147 MW data centre, targeting a 9.3% yield on cost.
- Potential for accelerated completion by H2 2027, enabling early income generation.
- A 1 GW pipeline of future grid connection agreements, positioning the company for continued growth in the sector, with deliveries expected from 2028 onwards.
