- 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.