FY 2024 Performance Overview
Tritax Big Box REIT plc (LON:BBOX) has provided an update on its operational performance for the financial year ended 31 December 2024. The company achieved strong execution of its strategy, securing significant growth across multiple areas, including active asset management, development lettings, and capital recycling.
Key Financial Highlights
- Additional Contracted Rent: £22.7m from active management and development lettings
- Major Pre-Let Agreement: 1.0 million sq ft secured to a global e-commerce leader
- Total Disposals: £306.2m, above book value, including:
- £181.2m from non-strategic UKCM assets
- £125.0m from logistics disposals
- Total Portfolio Value: £6.5bn (FY 2023: £5.0bn)
- Portfolio Rental Reversion: 26.1% (FY 2023: 23.0%)
Active Asset Management & Development Lettings
- Active Management Initiatives:
- £11.6m in additional contracted rent, up from £4.9m in FY 2023
- Rent Reviews: £8.4m increase, averaging 11.7% uplift, with open market reviews showing 34.6% growth
- Further £1.9m rental income growth from UKCM logistics assets
- Development Lettings:
- £11.1m in contracted rent secured
- 1.9m sq ft of development starts, with 79% pre-let or pre-sold
- 7.0% average yield on cost achieved
Strategic Data Centre Development Opportunity
- Phase 1 Data Centre at Manor Farm: Targeting a 9.3% yield on cost
- Accelerated timeline: Potential income recognition by H2 2027
- 1 GW additional pipeline: Expanding beyond Manor Farm from 2028 onwards
Capital Recycling & Portfolio Optimisation
- £306.2m in disposals, achieving a premium to book value
- UKCM non-strategic asset sales: £181.2m, at 2.8% premium to acquisition fair value
- Further £150m of UKCM assets under offer
Balance Sheet & Financial Flexibility
- Loan-to-Value (LTV): 29% (FY 2023: 32%)
- Weighted Average Cost of Debt: 3.1%, with 93% fixed or hedged
- Liquidity: Over £500m available
Management Commentary
Colin Godfrey, CEO of Tritax Big Box, stated:
“We are delivering and enhancing performance across all aspects of our business. Our strong development activity complements the active management of our portfolio, including the successful integration of UKCM assets. We enter 2025 with growing confidence, driven by improving occupational market conditions, our expanded range of growth drivers—including highly accretive data centre developments—and ongoing investment in our high-calibre team.”
Conclusion
Tritax Big Box REIT plc (LON:BBOX) successfully executed its strategic priorities in FY 2024, securing significant growth through asset management, pre-lets, and capital recycling. With a strong balance sheet and an expanding pipeline, the company remains well-positioned for continued growth in 2025.
