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1. Company Snapshot

1.a. Company Description

Tritax Big Box REIT plc is the only listed vehicle dedicated to investing in very large logistics warehouse assets (Big Boxes) in the UK and is committed to delivering attractive and sustainable returns for shareholders.Investing in and actively managing existing built investments, land suitable for Big Box development and developments predominantly delivered through pre-let forward funded basis, the Company focuses on large, well-located, modern Big Box logistics assets, let to institutional-grade tenants on long-term leases (typically at least 12 years in length) with upward-only rent reviews and geographic and tenant diversification throughout the UK.The Company seeks to exploit the significant opportunity in this sub-sector of the UK logistics market owing to strong tenant demand and limited supply of Big Boxes.


The Company is a real estate investment trust to which Part 12 of the UK Corporation Tax Act 2010 applies (REIT), 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.

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1.b. Last Insights on BBOX

Tritax Big Box REIT plc's recent momentum is driven by its robust Q2 2024 earnings release, showcasing a 10.4% increase in net rental income and a 4.4% rise in EPRA net tangible assets per share. The company's strategic focus on high-quality logistics assets and strong relationships with blue-chip tenants, such as Burberry, contribute to its resilience. Additionally, the REIT's £150 million share buyback program, announced in August, is expected to enhance shareholder value.

1.c. Company Highlights

2. Tritax Big Box: Strong Financial Performance and Compelling Growth Opportunities

Tritax Big Box reported strong financial performance for the 6 months ended June 30, 2025, with adjusted EPS growth of 6.4%, dividend per share growth of 4.9%, and EPRA NTA per share growth of 1.4%. The company's net rental income growth of 17.3% was driven by the UKCM acquisition, rental growth capture, and its development program. As stated by Frankie Whitehead, CFO, "We have a strong balance sheet and an incredibly strong development pipeline."

Publication Date: Aug -09

📋 Highlights
  • 50% Earnings Growth Target by 2030:: Embedded potential driven by rental reversion, logistics developments, and data center returns.
  • 6.4% Adjusted EPS Growth:: CFO highlights strong financial performance with 4.9% dividend per share growth and £6.8 billion portfolio value.
  • 17.3% Net Rental Income Growth:: Driven by UKCM integration, rental uplifts, and development completions adding £1.5 million passing rent.
  • Data Center Expansion Potential:: 125-megawatt project underway, with 15 NDAs signed and target yields of 9–11% on cost.
  • 80% Energy-Efficient Portfolio:: Over 80% rated B or above, supporting tenant demand and aligning with sustainability goals.

Compelling Growth Opportunities

The company has embedded significant potential for earnings growth of 50% by the end of 2030, driven by three powerful growth drivers: record rental reversion, attractive logistics development pipeline, and exceptional returns through data center developments. The company's development model is highly flexible and capital efficient, minimizing risk and maximizing returns.

Logistics Market Tailwinds

Tritax Big Box is well-positioned to benefit from structural tailwinds in the logistics market, including increasing complexity in supply chains and a desire for larger, more sophisticated buildings. The company expects further rental growth, driven by these tailwinds, and is focused on providing a full suite of services to its customers, from smaller scale buildings in urban environments to larger scale regional and national distribution buildings.

Sustainability and Emerging Technologies

The company is committed to sustainability, with over 80% of its portfolio rated B or above for energy performance. It is upgrading its remaining assets to improve their environmental performance, which will also enhance their appeal to tenants. Tritax Big Box is also keeping an eye on emerging technologies, such as autonomous delivery vehicles, which could impact the logistics real estate landscape.

Data Center Opportunities

The company is well-positioned to take advantage of growing demand in the data center space, with a market expected to increase by 200% in the next few years. Its competitive advantage lies in its access to power and accelerated timelines, as seen in its Manor Farm site with 107 megawatts of power in the Slough Availability Zone.

Valuation

With a P/E Ratio of 7.9, P/B Ratio of 0.77, and Dividend Yield of 5.47%, Tritax Big Box's valuation appears attractive. The company's strong financial performance and compelling growth opportunities suggest that the current valuation may not fully reflect its potential.

3. NewsRoom

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Blackstone in talks about £1bn Tritax Big Box deal

Oct -12

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Form 8.3 - Ricardo PLC

Aug -26

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Correction: Form 8.3 - Tritax Big Box Reit Plc

Aug -20

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Form 8.3 - Dowlais Group PLC

Aug -20

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Form 8.3 - NCC Group plc

Aug -15

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Form 8.3 - NCC Group plc

Aug -12

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Data centre developers hand cash to Labour in ‘Yimby’ charm offensive

Aug -12

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Form 8.3 - Tritax Big Box REIT Plc

Aug -11

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (9.62%)

6. Segments

Rental Income - Freehold Property

Expected Growth: 10%

Tritax Big Box REIT plc's 10% rental income growth from freehold properties is driven by increasing demand for logistics and e-commerce spaces, strategic location of properties near major transportation hubs, and long-term leases with high-quality tenants, resulting in stable and growing cash flows.

Rental Income - Long Leasehold Property

Expected Growth: 9%

Tritax Big Box REIT plc's 9% growth in Rental Income from Long Leasehold Property is driven by increasing demand for logistics and e-commerce facilities, strategic acquisitions, and proactive asset management. Additionally, the UK's growing online retail market, limited supply of big box logistics space, and long-term leases with blue-chip tenants contribute to the strong growth.

Spreading of Tenant Incentives and Guaranteed Rental Uplifts

Expected Growth: 8%

Tritax Big Box REIT plc's 8% growth is driven by strategic spreading of tenant incentives, ensuring higher occupancy rates and longer lease terms. Guaranteed rental uplifts provide a stable income stream, while the REIT's focus on high-quality, well-located logistics assets attracts strong tenant demand, supporting rental growth and driving NAV increases.

Property Insurance Recoverable

Expected Growth: 7%

Tritax Big Box REIT plc's 7% growth in Property Insurance Recoverable is driven by increasing rent reviews, high occupancy rates, and strategic asset management. Additionally, the company's focus on high-quality, well-located logistics assets and strong relationships with tenants contribute to the growth. Furthermore, the UK's growing e-commerce market and rising demand for logistics space also support the segment's expansion.

Service Charges Recoverable

Expected Growth: 6%

Tritax Big Box REIT plc's 6% growth in Service Charges Recoverable is driven by increasing demand for logistics and warehouse spaces, e-commerce growth, and strategic acquisitions. Additionally, the REIT's focus on high-quality, well-located assets and proactive asset management contribute to the growth. Furthermore, the company's ability to pass through operating costs to tenants and a strong balance sheet support the growth momentum.

Other

Expected Growth: 5%

Tritax Big Box REIT plc's 5% growth is driven by increasing e-commerce demand, strategic logistics locations, and growing occupier demand for large, modern facilities. Additionally, the company's active management of its portfolio, including asset enhancements and rent reviews, contributes to its growth. Furthermore, the UK's growing economy and rising consumer spending also support the company's expansion.

7. Detailed Products

Logistics and Distribution Warehouses

Tritax Big Box REIT plc offers logistics and distribution warehouses for rent, providing companies with strategic locations for their supply chain and logistics operations.

Big Box Warehouses

The company provides large, modern warehouses for rent, suitable for bulk storage and distribution of goods.

Industrial and Manufacturing Facilities

Tritax Big Box REIT plc offers industrial and manufacturing facilities for rent, providing companies with space for production, assembly, and research and development.

Data Centers and Telecommunications Infrastructure

The company provides data centers and telecommunications infrastructure for rent, supporting the digital economy and data-driven businesses.

8. Tritax Big Box REIT plc's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Tritax Big Box REIT plc is medium, as there are alternative options for logistics and warehouse spaces, but the company's focus on large, modern, and well-located facilities provides some protection.

Bargaining Power Of Customers

The bargaining power of customers is low, as Tritax Big Box REIT plc's tenants are typically large, creditworthy companies that require specialized logistics and warehouse facilities, giving the company some pricing power.

Bargaining Power Of Suppliers

The bargaining power of suppliers is low, as Tritax Big Box REIT plc is a significant player in the UK logistics and warehouse market, and has a diversified portfolio of properties, reducing its dependence on any one supplier.

Threat Of New Entrants

The threat of new entrants is low, as the barriers to entry in the UK logistics and warehouse market are high, and Tritax Big Box REIT plc's established position and scale provide a significant competitive advantage.

Intensity Of Rivalry

The intensity of rivalry in the UK logistics and warehouse market is medium, as there are several established players, but Tritax Big Box REIT plc's focus on large, modern, and well-located facilities provides some differentiation and competitive advantage.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 32.64%
Debt Cost 3.95%
Equity Weight 67.36%
Equity Cost 8.39%
WACC 6.94%
Leverage 48.45%

11. Quality Control: Tritax Big Box REIT plc passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Tritax Big Box

A-Score: 6.1/10

Value: 4.1

Growth: 5.7

Quality: 6.8

Yield: 8.1

Momentum: 4.0

Volatility: 8.0

1-Year Total Return ->

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Stock-Card
Innovative Industrial Properties

A-Score: 6.1/10

Value: 6.6

Growth: 6.3

Quality: 8.4

Yield: 10.0

Momentum: 0.5

Volatility: 4.7

1-Year Total Return ->

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Stock-Card
Safestore

A-Score: 5.6/10

Value: 5.2

Growth: 5.8

Quality: 7.4

Yield: 7.5

Momentum: 2.0

Volatility: 6.0

1-Year Total Return ->

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Stock-Card
WDP

A-Score: 5.6/10

Value: 4.1

Growth: 5.7

Quality: 6.4

Yield: 6.2

Momentum: 3.0

Volatility: 8.3

1-Year Total Return ->

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Stock-Card
Big Yellow

A-Score: 5.2/10

Value: 4.3

Growth: 4.4

Quality: 7.5

Yield: 7.5

Momentum: 2.0

Volatility: 5.7

1-Year Total Return ->

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Stock-Card
SEGRO

A-Score: 4.7/10

Value: 3.0

Growth: 3.4

Quality: 6.2

Yield: 6.2

Momentum: 1.0

Volatility: 8.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

1.49$

Current Price

1.49$

Potential

-0.00%

Expected Cash-Flows