Tritax Big Box REIT (BBOX) H1 2024 earnings summary

Executive summary

• Achieved strong H1 2024 results, with adjusted EPS up 10.4% to 4.35p and dividends up 4.3% to 3.65p per share, supported by robust rental reversion and development pipeline.

• Successfully completed and integrated the UKCM acquisition, adding £1.2bn of assets, increasing GAV to £6.4bn, and broadening the logistics portfolio.

• Market and operational momentum is robust, with significant rental reversion, development opportunities, and expectations for higher activity in H2 2024.

• Strategy focused on capturing rental reversion, developing pipeline, and leveraging investment opportunities to potentially more than double rental income.

• Achieved record portfolio reversion and strong development pipeline, positioning for significant future rental income growth.

Financial highlights

• Adjusted EPS rose 10.4% to 4.35p; excluding additional DMA income, up 4.1% to 4.10p.

• Net rental income increased 16.4% to £127.2m for H1 2024.

• Operating profit before fair value changes up 29.6% to £123.8m.

• Portfolio value grew 27.2% to £6.40bn, mainly due to UKCM acquisition.

• EPRA NTA per share increased 1.2% to 179.33p.

Outlook and guidance

• Targeting £150m–£200m of non-core/non-strategic asset disposals in H2 2024.

• Capital deployment guidance for 2024 remains at £200m–£250m into development, with 2–3m sq ft targeted.

• DMA income guidance increased to £25m for FY24 and £10m for FY25.

• Expecting to capture 25% income growth from inbuilt portfolio reversion by end of 2026, with 64% of reversion opportunity to be captured by then.

• Focus on sustainable earnings growth and attractive total accounting returns.