Tritax Big Box REIT plc (LSE:BBOX) reported a strong operational performance in 2025, underpinned by active asset management, steady development progress and a growing focus on data centres, leaving the group confident as it moves into 2026. Contracted rent increased to £360.9m, including £14.2m generated through asset management initiatives, alongside solid like-for-like rental growth. During the year, the company integrated a £1.04bn portfolio acquired in October and continued capital rotation, completing £415.5m of disposals, largely from non-strategic UKCM assets.
The logistics development pipeline also advanced, with 1.8 million square feet under construction, more than half of which is already pre-let. A further £8.9m of rent is currently under offer, with additional lettings in advanced negotiations. New planning consents and development starts are targeting yields on cost of around 7–8%, supporting future income growth.
Tritax has also accelerated its expansion into data centres, agreeing terms on a major 107MW pre-let at Manor Farm near Heathrow, which is expected to deliver a yield on cost of around 9.3%. Beyond this project, the group holds rights over a broader UK data centre pipeline of approximately 1GW of potential capacity. Management highlighted structural tailwinds from both logistics and data infrastructure demand as key drivers of its long-term strategy.
The balance sheet remains a core strength, with 28% embedded rental reversion, total vacancy of just 5.6%, a weighted average unexpired lease term of 10.2 years, loan-to-value of 33% and an upgraded A3 credit rating. Against this backdrop, Tritax said it remains on track with its ambition to grow adjusted earnings by around 50% by 2030.
Overall, Tritax Big Box REIT’s outlook is supported by strong financial performance, attractive valuation metrics and positive corporate developments highlighted in recent updates. Technical indicators also point to a supportive trend, although management acknowledged that higher leverage and wider market vacancy levels represent areas to monitor.
More about Tritax Big Box REIT
Tritax Big Box REIT plc is the UK’s largest listed investor in high-quality logistics warehouse assets and controls the country’s largest logistics-focused land platform. The FTSE 250 real estate investment trust focuses on owning and actively managing modern, well-located logistics facilities, typically let on long-term, upward-only leases to institutional-grade tenants. The group is increasingly targeting power-enabled sites capable of supporting both logistics operations and large-scale data centre developments across the UK.
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