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Tritax Big Box Results for the six months ended 30 June 2022


Results for the six months ended 30 June 2022 

Record letting activity – continued growth – strategically well positioned 

04 Aug 2022

Strategic delivery supporting continued growth  

  • 5.6% operating profit growth from strategic delivery of development completions, asset management and LFL rental growth. 
  • Adjusted EPS of 3.73p (H1 2021: 4.03p) reflecting reduced development management (DMA) income partially offset by development completions and rental growth.  
  • Excluding additional DMA income in prior period, Adjusted EPS increased 1.1% to 3.73p3, with development completions and rental growth offsetting 8.7% increase in average share count following 2021 equity raise. 
  • 10.5% growth in contracted annual rent primarily through development letting activity supporting future accretive earnings growth.  
  • 4.7% dividend growth to 3.35p, representing 90% pay-out ratio when adjusting for additional DMA income3. 
  • Total Accounting Return of 10.7% (H1 2021: 12.5%) driven by continued execution of strategy.  
  • EPRA cost ratio of 15.2% expected to return to previous levels as Current Development Pipeline becomes income generating. 
  • Strong balance sheet with low LTV, no near-term refinancing requirements and 100% of drawn debt benefiting from either fixed or capped interest rates with an average cost of debt of 2.52%. 

Market supported by positive and enduring structural drivers resulting in record occupier demand  

  • Record market take-up of 22.6 million sq ft in H1 2022, up 9.5% on H1 2021, as occupiers continue to enhance their supply chains. 
  • Supply of logistics space remains highly constrained; 1.2% vacancy rate resulting in rapid leasing of buildings and rental growth. 
  • H1 2022 investment volumes remained healthy at £4.2 billion (H1 2021: £5.2 billion) supported by structural drivers in logistics real estate. 


Record development lettings with £17.8 million of contracted annual rent secured  

  • During H1 2022 we made significant development progress, delivering: 
  • 2.4 million sq ft of development lettings, increasing contracted annual rent by £17.8 million or 9.1%. 
  • 2.2 million sq ft of construction starts, formed of: 
  • 1.6 million sq ft of developments pre-let or let during construction, adding £11.1 million to contracted annual rent; 
  • 0.6 million sq ft of developments on a speculative basis, with the potential when let to add £6.1 million to contracted annual rent, 45% of which is under offer. 
  • Planning consent secured for a further 0.6 million sq ft of development, across two sites. 
  • Current Development Pipeline of buildings under construction (includes 2021 starts) totals 3.4 million sq ft of which 1.8 million sq ft (53%) has been pre-let or let during construction; a further 15% is under offer.  
  • On-track to deliver increased target of 3-4 million sq ft of development starts with strong ESG credentials in FY 2022: 
  • Maintaining 6-8% yield on cost target range; 
  • New buildings delivered to high ESG standards with EPC ratings of A and minimum BREEAM “Very Good”; 
  • Expected positive earnings impact from mid-2023, in line with completions, with full effects felt in FY 2024. 


Exceptional quality and efficiency of portfolio underpins value and income security 

  • Portfolio value up 10.0% to £6.03 billion (31 December 2021: £5.48 billion), reflecting development gains, active asset management activity and strong underlying market conditions, including a LFL valuation surplus of 7.0% (net of capex). 
  • The portfolio's high-quality, long-term and resilient income is reflected in: 
  • WAULT of 12.8 years as at 30 June 2022 (31 December 2021: 13.0 years); 
  • 0% vacancy (H1 2021: 0%). 100% rent collected; 
  • Highly efficient portfolio with minimal cost leakage and low capital expenditure requirements; 
  • Focused on modern, sustainable high-quality buildings critical to the supply chains of well capitalised blue-chip customers. 


Creating value through active management of portfolio and customer engagement 

  • £2.7 million added to passing rent from rent reviews and lease renewal, achieving an 8.4% increase across 16.3% of the portfolio.  
  • Like-for-like ERV growth of 5.8% in the period, with 14.7% portfolio rental reversion at the period end. EPRA like-for-like rental growth of 3.3% over the period. 
  • One lease extension and one lease renewal completed, adding 15 years and 10 years respectively to create significant value. 
  • Enhancing ESG performance through supporting our customers fulfil their Net Zero Carbon ambitions. 

Aubrey Adams, Chairman of Tritax Big Box REIT plc, commented: 

"We have delivered another strong first half, with good operational and financial performance and excellent progress within our accelerated development programme, which continues to gather momentum. Long-term structural drivers, and existing favourable market dynamics, are generating strong occupier interest in both our standing investment portfolio and in the new space we are creating through our development activity. By successfully implementing our strategy we have secured record lettings on 2.4 million sq ft of new space so far this year, adding £17.8 million to our contracted annual rent roll and supporting future earnings growth in 2023 and 2024.”  

“We continue to see strong occupier demand for space although inflation and geopolitical issues have made the economic environment more uncertain. We benefit from a combination of high-quality investment assets which provide the business with a strong base of secure, long-term income, and attractive rental growth potential driven by a favourable structural supply/demand imbalance in our market. Our dynamic and profitable development programme is a capital efficient growth engine for our business that is delivering now and for the long-term. The Group has a strong balance sheet and high levels of liquidity, giving us the resources to implement our strategy and respond quickly to changing market conditions. Consequently, we are well positioned to continue delivering attractive and resilient performance over the longer term.” 

Presentation for analysts and investors 

A Company presentation for analysts and investors will take place via a live webcast at 9.30am (BST) today and can be viewed at: 

To join the presentation via conference call:  

UK: +44 (0) 33 0551 0200 

UK (toll free): 0808 109 0700 

US: +1 212 999 6659 Password: Tritax 

The presentation will also be accessible on-demand later in the day on the Company website: 


  1. Operating profit before changes in fair value and other adjustments. 
  1. See Note 6 to the financial statements for reconciliation. 
  1. The anticipated run rate for development management income is £3.0 - 5.0 million per annum over the medium term. Adjusted EPS becomes 3.73p when excluding development management income above this anticipated run rate (‘additional’ development management income). £2.6 million of development management income is included in the 3.73p Adjusted earnings per share in H1 2022 (H1 2021 £8.9 million included in 4.03p Adjusted earnings per share). 
  1. The Portfolio Value includes the Group's investment assets and development assets, land assets held at cost, the Group's share of joint venture assets and other property assets. 



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Tritax Big Box Reit Plc Annual Report 2021
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