Half-year Report
Summary by AI BETAClose X
 |
Results for the
six months ended
30 June 2026
5 August 2026
Unlocking embedded rental growth; 5.1% EPRA like-for-like rental growth
Delivering value through logistics development. Near doubling of secured power to 507MW
Increased ambition to grow adjusted EPS by 65%1 by 2030/31
H1 2026 key figures
|
|
30 June 2026 |
30 June 2025 |
Change |
|
Net rental income |
£173.3m |
£149.2m |
16.2% |
|
Operating profit2, 7 |
£152.9m |
£144.1m |
6.1% |
|
Adjusted earnings per share (ex. all DMA income) 4, 7 |
4.41p |
4.12p |
7.0% |
|
Adjusted earnings per share3,7 |
4.41p |
4.63p |
(4.8)% |
|
IFRS earnings per share |
2.80p |
6.72p |
(58.3)% |
|
Dividend per share |
4.00p |
3.83p |
4.4% |
|
Dividend pay-out ratio (ex. all DMA income) 4, 7 |
90.7% |
93.0% |
(2.3)pts |
|
Total Accounting Return7 |
1.3% |
3.6% |
(2.3)pts |
|
EPRA cost ratio (excluding vacancy cost) 7
|
12.2% |
12.9% |
(0.7)pts |
|
EPRA cost ratio (including vacancy cost) 7 |
13.5% |
13.8% |
(0.3)pts |
|
|
|
|
|
|
|
30 June 2026 |
31 December 2025 |
|
|
Contracted annual rent roll |
£355.7m |
£360.9m |
(1.4)% |
|
EPRA Net Tangible Assets per share7 |
185.9p |
187.8p |
(1.0)% |
|
IFRS net asset value per share |
185.6p |
187.2p |
(0.9)% |
|
Portfolio value5, 7 |
£7.68bn |
£7.89bn |
(2.7)% |
|
Loan to value (LTV)7 |
32.9% |
33.2% |
(0.3)pts |
Commenting on the results, Aubrey Adams, Chairman of Tritax Big Box REIT, said:
"The past six months further evidence Tritax Big Box's ability to capitalise on the opportunities within its control in a market environment that continues to reward quality, discipline and execution. We delivered attractive growth in recurring earnings, underpinned by higher rental income, the successful integration of the Blackstone portfolio and continued progress in capturing the substantial rental reversion embedded within our investment portfolio. Critically, our proactive approach and high-quality portfolio have helped offset market-wide declines in property values in the period. Our logistics development platform continues to create value through new lettings, development delivery and a strong occupier pipeline.
"Importantly, the securing of planning permission at Manor Farm represents a major demonstration of our power-first data centre approach, creating valuation gains, and future earnings growth to drive value creation for shareholders. The near doubling of our secured power to 507MW deepens our pipeline of data centre opportunities in a market that is starved of incremental supply. Combined with the proposed Equity Issue announced today, the enhanced data centre opportunity gives us the ambition to grow adjusted EPS by 65% by 2030/2031."
Attractive earnings growth delivered by higher rental income and cost-efficient structure
· 16.2% increase in net rental income to £173.3 million, driven by the Blackstone acquisition and continued operational execution with strong like-for-like rental growth capture.
· 7.0% increase in Adjusted EPS (excluding all Development Management Agreement (DMA) income) to 4.41 pence (H1 2026: 4.12p), recurring earnings momentum maintained.
· No DMA income recognised in the period (H1 2025: £13.3 million), resulting in reported Adjusted EPS falling to 4.41 pence from 4.63 pence in the prior year.
o DMA income can be variable by its nature, and the Board expects DMA income to be a proportionately smaller component of earnings moving forward. As such, and to simplify its presentation, we have reported an Adjusted EPS figure fully with and fully without DMA income.
· IFRS EPS reduced to 2.80 pence due primarily to portfolio valuation movements, including a £15.8 million revaluation deficit8 reflecting a modest softening of yields during the period, compared with a £92.2 million surplus in the prior period.
· EPRA cost ratio (excluding vacancy costs) improved to 12.2%, reflecting scale benefits and a reduced effective management fee.
· Contracted annual rent roll of £355.7 million, with asset disposals reducing rent roll by 1.4% with proceeds deployed into higher-return growth opportunities.
Growth driver 1: Capturing record rental reversion to drive earnings growth
· Record portfolio reversion of 29.2% supports a clear pathway to future earnings growth, with £103.9 million of potential additional rent embedded within portfolio.
· 5.1% EPRA like-for-like rental growth reflects successful execution of our active asset management strategy (H1 2025: 2.5%).
· £8.6 million of additional annual rent secured in the period, up 54% on the prior period (H1 2025: £5.6 million), demonstrating continued success in converting reversion into contracted income.
· Near-term earnings visibility remains strong, with £23.1 million of further rental reversion capture opportunities either in progress or scheduled for review in H2 2026.
· Approximately 72% of portfolio reversion is expected to be captured in the next 3 years.
Growth driver 2: Developing best-in-class logistics assets to drive earnings growth
· £4.9 million of annual rent secured through development lettings in the period, supporting future earnings growth.
· 7.4% yield on cost delivered on completed and leased developments in period achieving higher end of guidance.
· £13.0 million of potential future passing rent under construction, of which £9.8 million is already secured and expected to commence in H2 2026.
· Strong occupier engagement across the development portfolio, with £7.6 million of rent in solicitors' hands and a further £6.8 million in advanced negotiations with occupiers.
· Development capex temporarily moderated by planning determination delays, with full year deployment expected to be within the £150-250 million range.
· Continued focus on low-carbon development delivering completed assets with weighted average embodied carbon of 347.9 kg CO2e per m2 (FY 20259: 433.7 kg CO2e per m2) on a whole site basis.
Growth driver 3: Power-first data centres targeting exceptional risk-adjusted returns
· Planning consent secured for Manor Farm, marking a major demonstration of our power-first data centre development strategy and contributing to development gains in the period.
o 107MW Phase 1 Manor Farm pre-let in solicitors' hands, targeting £34 million of annual rent at a 9.3% yield on cost.
· Secured an additional 235MW of power, further deepening our data centre pipeline with targeted 9-11% yield on with delivery expected from 2030.
· Planning milestones and prospective pre-letting activity driving development valuation gains supporting EPRA NTA and Total Accounting Returns.
· Further opportunities progressing across our data centre pipeline exceeding 1GW, targeting 9-11% development yields and significant profits creating a significant long-term growth opportunity.
Rental growth supporting capital values
· 1.9% like-for-like ERV growth across the logistics portfolio during the period, reflecting continued occupier demand.
· £7.68 billion portfolio value at 30 June 2026 (31 December 2025: £7.89 billion), with portfolio equivalent yield remaining broadly stable at 5.8% (31 December 2025: 5.7%).
· Portfolio capital values declined by 0.2% (net of capex), with rental growth, development gains (including from Manor Farm) and asset management activity mostly offsetting valuation movement from market induced yield expansion.
· Total Accounting Return of 1.3%, with earnings growth offset by modest market induced property revaluation declines and land option impairment.
£344.0 million of disposals year-to-date supporting development-led growth opportunities
· £259.1 million of disposals completed in the period ahead of book value or acquisition price (in respect of UKCM assets), comprising:
o £33.4 million of UKCM non-strategic disposals;
o £225.7 million of disposals from logistics portfolio.
· £84.9 million of UKCM non-strategic disposals exchanged or completed post period end.
· The disposals of all UKCM non-strategic assets have now been either completed or exchanged, save for one final building which is under offer, at levels ahead of the implied acquisition price.
· c.£1.0 billion of disposals achieved since 2022, ahead of book valuations overall.
Balance sheet strength supporting our strategy
· Loan-to-value reduced to 32.9% (31 December 2025: 33.2%), reflecting continued progress with our disposal programme and disciplined capital allocation.
o Pro forma LTV of 32.1% including £84.9 million of disposals exchanged or completed post period end.
· Net Debt / EBITDA improved to 7.9x6 (31 December 2025: 8.6x), supported by earnings growth and disposal proceeds.
· Weighted average cost of debt remained unchanged at 3.6%, with 76% of drawn debt fixed or hedged, providing significant protection against interest rate volatility.
· Strong liquidity position with over £530 million of available cash and undrawn facilities available to support future growth opportunities.
· Investment grade A3 credit rating maintained by Moody's, reflecting the resilience of the portfolio, conservative leverage and strong financing platform.
Proposed Equity Issue to unlock next wave of data centre growth and returns
The Group today announces its intention to conduct a non-pre-emptive placing of new ordinary shares (the "Equity Issue") to raise approximately £350 million of gross proceeds (approximately 8% of current issued share capital). Full details of the proposed Equity Issue are contained in a separate announcement released by the Company.
The Equity Issue is intended to unlock the next wave of data centre growth and returns. The Company intends to use the net proceeds to advance its enlarged pipeline of data centre development opportunities including the early-stage and longer-term capex requirements of two additional data centre schemes totalling 235MW in the Greater London Availability Zones deliverable between 2030-2031. In addition, the proposed Equity Issue enhances the Group's financial flexibility complementing its disciplined approach to capital allocation. Completion of the proposed Equity Issue is subject to shareholder approval at a General Meeting to be held on 24 August 2026.
Results presentation and Q&A
A Company presentation for investors and analysts will take place via a webcast at 8.30am (UK time) on Thursday 06 August 2026, which can be accessed via: https://brrmedia.news/BBOX_HY26
If you would like to ask a question verbally rather than through the webcast viewer, please join the presentation conference call:
UK: +44 (0) 33 0551 0200 UK Toll Free: 0808 109 0700
USA Local: +1 786 697 3501 USA Toll Free: 866 580 3963
Password: Tritax Big Box HY26
A replay of the presentation will also be made available on the Company website.
Notes
1. 65% growth potential by the end of 2030/31, with the baseline reference being the FY24 Adjusted earnings per share of 7.9p. Previous ambition of 50% growth potential by the end of 2030, with the baseline reference being the FY24 Adjusted earnings of £182.4 million. This should not be considered a profit forecast but an ambition. It assumes no material deterioration in macroeconomic conditions, including inflation, interest rates and GDP growth; sustained structural demand in key markets; investment markets remain open and ability to dispose of assets at or near book values. Excludes all DMA income or portfolio value movements.
2. Operating profit before FV movements and other adjustments.
3. See Note 8 to the financial statements for reconciliation.
4. The Company has previously reported two key performance indicators in the form of Adjusted Earnings per share and Adjusted earnings per share (excluding additional DMA Income). In the period we have replaced the second of these key performance indicators. Previously this was defined as 'Adjusted Earnings (excluding additional DMA Income)' and this would have been inclusive of up to £4 million of DMA Income per annum. This has been revised to 'Adjusted Earnings (excluding DMA Income)', which now removes all DMA Income recognised in the period. The first key performance indicator, being Adjusted Earnings per share, continues to include all DMA Income recognised in the period and remains unchanged.
5. The Portfolio Value includes the Group's investment assets and development assets, land assets held at cost, the Group's share of joint venture assets and other property assets.
6. Calculated based on 12-month pro-rated EBITDA inclusive of full twelve months reversion guarantee contribution from Blackstone acquisition and adjusted for fair value of UKCM debt at acquisition.
7. An alternative performance measure. The Group uses a number of financial measures to assess and explain its performance, some of which are considered to be alternative performance measures as they are not defined under IFRS. For further details, see the Financial Review and Notes to the EPRA and other key performance indicators section, as well as definitions in the Glossary.
8. Includes the fair value adjustment on assets held for sale (see note 12).
9. Figure restated from previously reported 445kgCO2e/m2 due to updated information post year end.
For further information, please contact:
Tritax Group
Colin Godfrey, CEO Tel: +44 (0) 20 8051 5060
Frankie Whitehead, CFO Email: bigboxir@tritax.co.uk
Ian Brown, Head of Strategy & Investor Relations
Kekst CNC
Guy Bates / Lucy Besser Tel: +44 (0) 75 810 56 415 / +44 (0) 77 798 73 440
Email: tritax@kekstcnc.com
The Company's LEI is: 213800L6X88MIYPVR714
Notes:
Tritax Big Box REIT plc (ticker: BBOX) is the largest listed UK investor in high-quality logistics warehouse assets and controls the largest logistics-focused land platform in the UK. Tritax Big Box target attractive and sustainable returns for shareholders by investing in and actively managing existing built investments and land suitable for logistics development. The Company focuses on well-located, modern logistics assets, typically let to institutional-grade clients on long-term leases with upward-only rent reviews and geographic and client diversification throughout the UK. Additionally, having adopted a "power-first" approach, the Company has secured its first data centre development opportunities, and has a current total opportunity of over 1 gigawatt of power capacity, offering the potential to deliver exceptional risk-adjusted returns on an accelerated basis.
The Company is a real estate investment trust to which Part 12 of the UK Corporation Tax Act 2010 applies, is listed on the Official List of the UK Financial Conduct Authority and is a constituent of the FTSE 100, FTSE EPRA/NAREIT and MSCI indices.
The Company's ordinary shares have not been and will not be registered under the US Securities Act 1933, as amended (the "Securities Act"), or the securities laws of any state or other jurisdiction of the United States, and may not be offered or sold directly or indirectly in or into the United States except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and in compliance with the securities laws of any state or any other jurisdiction of the United States.
Further information on Tritax Big Box REIT plc is available at www.tritaxbigbox.co.uk
Chairman's statement
Tritax Big Box has assembled a unique combination of logistics expertise, development capability, deep occupier relationships and, more recently, a proven ability to originate and progress power-enabled sites for digital infrastructure. These capabilities are difficult to replicate and are creating compelling, long-term growth opportunities for shareholders. By investing in logistics real estate and data centres our business is optimally positioned in two markets underpinned by global mega trends providing the potential for significant growth. In addition, the UK has specific characteristics which amplify these opportunities further by constraining supply, most notably due to planning and power provision, creating ideal conditions for enduring rental growth.
Across logistics real estate, occupiers recognise they must invest for the long term to remain competitive, including spending on automation to deliver cost savings and efficiencies. They continue to require modern, efficient and sustainable infrastructure. Meanwhile, demand for data centres in the UK is expected to grow fourfold by 2030[1], while supply of new schemes will remain constrained by a scarcity of power and the UK's complex planning regime.
At the same time, the quality of the income generated by our investment portfolio is highly resilient and desirable in times of macroeconomic and political uncertainty, supported by long leases, strong customer covenants and assets that are critical to occupiers' operations.
The Company's inclusion in the FTSE 100 index from 2 March 2026 reflected the scale and ambition of the business. Today, with a near doubling of our secured power pipeline and significant opportunities across asset management, development and disciplined capital allocation, we have increased our ambition to grow Adjusted EPS by 65% between 2024 and 2030/31. We believe this combination of growth drivers is unique in UK real estate and positions the Company to deliver exceptional risk-adjusted returns for shareholders.
Delivering against our three growth drivers
The period has demonstrated the value of consistent strategic execution, as we successfully deliver against our three growth drivers.
Growth driver 1: Capturing record rental reversion through active management
At the period end, the portfolio had approximately £103.9 million of embedded rental reversion and vacancy, and we expect to be able to capture 72% of this over the next 3 years, through rent reviews, lease renewals and leasing activity. Asset management initiatives completed during the half generated £8.6 million of additional annualised rental income and rental uplifts averaged 10.5%. With a significant amount of lease reviews in progress, and scheduled lease events second half weighted, which together provide the potential to capture £23.1 million of incremental contracted rent, we expect to see further positive momentum in asset management.
Within this, the urban logistics portfolio we acquired from Blackstone last year is performing extremely well. We have actively engaged with our new clients and made good progress building strong relationships with them. This has enabled us to complete over 60 asset management initiatives, growing rental income by 4.4% and capturing rental uplifts averaging 25%. This has reinforced our conviction in the original investment thesis and the substantial rental reversion embedded within those assets.
Growth driver 2: Delivering best in class logistics developments
Our logistics development platform remains one of the UK's most attractive and provides a flexible source of future growth. During the period, we secured 0.5 million sq ft of development lettings, adding £4.9 million of annual contracted rent, with a further £7.6 million of annual rental income in solicitors' hands. Our development pipeline, which is controlled through long-dated, capital-efficient land options, has the potential to deliver approximately £354 million of future annual rent.
The timing of new development starts during the period was affected by planning determination delays on a small number of schemes. As a result, logistics development capex in H1 2026 was lower than originally anticipated. Importantly, these delays are procedural rather than demand-led and do not alter our confidence in the underlying opportunity set.
While macroeconomic and political uncertainty, including heightened geopolitical tensions, continues to influence the pace of occupier decision-making, underlying demand remains resilient. Occupier engagement across the portfolio is strong and we have a substantial pipeline of opportunities capable of delivering approximately £75 million of additional rental income over the near to medium term.
Growth driver 3: Delivering exceptional returns through data centre development
The most strategically significant development during the period has been the continued advancement of our data centre pipeline. Most notably, the receipt of planning consent at our scheme at Manor Farm, our first scheme, represents proof of concept for our power-first approach to creating data centres, validating our ability to identify, secure and advance opportunities in one of the world's most supply-constrained digital infrastructure markets.
The Manor Farm scheme benefits from 107MW of secured power capacity and has the potential to generate approximately £34 million of annual rent on completion at a very attractive 9.3% yield on cost. Our second scheme, Chelmsford benefits from 125MW of power and has the potential to generate a 10-11% yield on cost, with delivery expected in 2029.
While practical completion on the Manor Farm data centre scheme is expected in Q2 2028, major development milestones (such as obtaining planning permission or achieving a pre-let) generate development valuation gains which enhance the total returns delivered by the Company. With the successful planning decision at Manor Farm in June 2026, we are already beginning to deliver development gains driving shareholder returns. The attractive development gains will precede the income returns and it is pleasing that within 18 months of launch of our data centre programme we are already delivering attractive financial benefits to the Company.
The Company also entered into a development management agreement (DMA) with the Manager for our second data centre site at Chelmsford. The Board believes this DMA approach provides flexibility, aligns the remuneration of the Manager with successful delivery of data centres and does not encumber the Company with a higher fixed cost base associated with a large development capability. In addition, half of the profit share paid to the Manager is formed of shares in the Company, further aligning interests. The Company also benefits from a "first right of refusal" over all data centre related opportunities identified by the Manager, creating a potential opportunity of over 1 gigawatt.
As we announced today, we have nearly doubled the amount of secured power we control with a further 235MW, enabling us to develop two additional schemes and bringing our total secured power to 507MW. The two new schemes target £50-60 million of data centre rental income and £300-400 million of capital profits in aggregate. Consistent with Manor Farm and Chelmsford, these schemes are targeting yields on cost of between 9-11%, profit on costs of greater than 50% assisting in delivering exceptional risk-adjusted returns to shareholders. The schemes are in the Greater London availability zone. While there are key milestones to deliver, we anticipate them reaching practical completion in 2030/31, with meaningful capital value growth driving NTA performance at each development milestone ahead of significant rental income generation upon practical completion. The proposed Equity Issue supports the delivery of this growing pipeline, complementing our capital rotation activities.
The Board believes that data centres represent one of the most compelling opportunities in UK real estate, with the potential to deliver exceptional risk-adjusted returns to Tritax Big Box shareholders with an anticipated yield on cost of 9-11%.
Performance and dividends
The Group delivered strong operational and financial performance during the first half. Net rental income rose by 16.2% and Adjusted earnings per share (excluding all DMA income), which represents the recurring earnings potential of the business, increased by 7.0% to 4.41 pence (H1 2025: 4.12 pence). DMA income can be variable by its nature, and given the recent growth of the Group, the Board expects DMA income to be a proportionately smaller component of earnings moving forward. As such, and to simplify its presentation, we have reported an Adjusted EPS figure with and without all DMA income.
During the period, we reported a 1.3% Total Accounting Return, the reduction from 3.6% in H1 2025 reflecting significant DMA income recognition of £13.3 million in the prior period, combined with a reduction in property values and an impairment on certain land options. Due to the higher interest rate environment experienced in many global markets, including the UK, during the period we experienced modest market-wide yield expansion. Critically, due to the underlying high-quality of our portfolio and the attractive levels of rental growth we are able to deliver, we were able to mitigate much of this market-wide yield movement resulting in a modest 0.2% reduction in portfolio value.
Consistent with our guidance at the time of the acquisition of assets from Blackstone in October 2025, the Manager has made notable progress further strengthening the balance sheet. £259 million of asset disposals in the period contributed to a reduction in our period-end loan-to-value to 32.9% (31 December 2025: 33.2%). Including assets exchanged since the period end, disposals totalled £344 million, reducing pro forma loan-to-value further to 32.1%. At the period end, we had available liquidity of over £530 million.
The Board has declared interim dividends totalling 4.00 pence per share in relation to the six months, an increase of 4.4% on the prior year.
Significant earnings growth opportunities supported by a positive outlook
The substantial rental reversion embedded within our portfolio is the most-immediate driver of earnings growth. We continue to see significant opportunities to convert that reversion into contracted income through lease events and new lettings. The strong performance of the assets acquired from Blackstone gives us additional confidence in the scale of the opportunity and our ability to realise its potential over the coming years.
Complementing this, our logistics development programme remains well positioned to benefit from attractive long-term occupational fundamentals. While macroeconomic and political uncertainty continue to influence occupier behaviour, across our development portfolio we are seeing continued strong levels of occupier engagement, enquiry activity and active negotiations, albeit deals are taking time to complete. With a range of recently completed buildings with a potential rental income value of £18.5 million, and a flexible land platform capable of accommodating a range of buildings, we are well positioned to capture this demand.
The data centre platform has also achieved an important value creation milestone with planning consent at Manor Farm supporting total accounting returns and a prospective pre-let representing a further opportunity to crystallise value in the near term. Having already nearly doubled our secured power pipeline to 507MW, the proposed equity issuance will enable the Company to unlock the next wave of data centre development opportunities. With a targeted yield on cost of 9-11%, across the pipeline, we are confident the Company can generate exceptional risk-adjusted returns for shareholders through one of the most attractive long-term opportunities in the UK real estate market.
The progress achieved during the first half demonstrates that our strategy is delivering and that our future growth is supported by multiple, complementary sources of value creation. With record rental reversion, a high-quality logistics development pipeline and a growing data centre platform capable of generating exceptional risk-adjusted returns, we believe Tritax Big Box is uniquely positioned within UK real estate. Supported by a resilient income base, significant liquidity and disciplined capital recycling, we are well placed to deliver our enhanced ambition of growing Adjusted earnings by 65% by 2030/31 and to translate that growth into attractive long-term shareholder returns.
Aubrey Adams
Chairman
Manager's report
UK logistics market - demand from a diverse range of sectors:
Healthy fundamentals supporting rental growth
H1 2026 saw 10.9 million sq ft of take-up (H1 2025: 13.0 million sq ft) across 43 transactions[2]. H1 2026 saw a similar number of transactions compared to the prior year, demonstrating robust occupier activity.
A key attribute of the UK market is that demand comes from a diverse range of sectors. In the first half of the year:
· Manufacturing activity included transactions from defence and Asian automotive occupiers.
· Traditional retailers, which increasingly operate omni-channel supply chains, remained active. This included our new letting to Currys at Newark alongside an extension of the lease on an adjacent Currys unit.
· Third-party logistics companies ("3PLs") continued to account for a significant share of demand. Following a period of network consolidation, many operators now have limited available capacity and are seeking additional space to support new contract wins.
E-commerce was the standout sub-sector during the period, with activity from both established operators and newer market entrants. The East Midlands was the most popular region, accounting for 47% of total take-up in H1[2].
· Established ecommerce occupiers leased several buildings and signed contracts with 3PL providers, which supported additional real estate commitments. Demand for both large speculative developments and existing second-hand stock was particularly strong.
· Chinese entrants continued to expand their UK operations, typically through associated Chinese 3PL providers. Most committed to immediately available standing stock, with requirements generally focused on buildings in the 200,000-400,000 sq ft size range.
Market vacancy held flat across H1 at 7.1% (Q4 2025: 7.1%) with little change in either newly developed or second-hand vacant space[2]. Local market dynamics remain variable, and pockets of under-supply continue to emerge; building size, specification, and location are all important. This has been evident in the Midlands where recent lettings mean larger, modern buildings are becoming increasingly scarce. At the same time, the speculative development pipeline remains low with just 6.8 million sq ft of space under construction nationally (Q4 2025: 6.8 million sq ft), almost half the 12.8 million sq ft recorded as recently as H2 2024[2].
Healthy occupier demand, constrained supply and a nuanced vacancy picture continue to support rental growth in the UK big box logistics market. MSCI UK Distribution Warehouse ERVs increased by 2.1% in H1 2026 (H1 2025: 2.4%).
Urban logistics fundamentals remain strong
Vacancy in buildings under 100,000 sq ft remains around 6% with a stable demand picture supported by lower levels of completions and buildings under construction[3]. Cost pressures remain a key consideration for occupiers, driving a continued focus on optimising existing space and supporting lease regears and extensions. At the same time, selected sub-sectors with strong structural growth drivers, such as parcel carriers, are increasingly pursuing expansion strategies, supporting new leasing commitments. MSCI UK industrial (excluding distribution warehouse) ERVs increased by 2.3% in the period.
Quality assets continue to attract capital
Investment volumes totalled £2.1 billion3 in H1 2026 (H1 2025: £3.3 billion) as global geopolitical events weighed on market activity. Transaction completions were subdued through April and May as investors assessed the implications of events in the Middle East.
During this period, however, conviction buyers remained engaged. Investor confidence improved towards the end of the half, supporting the completion of several portfolio and single-asset transactions late in the period.
Agents' views on prime pricing remained mixed. CBRE and Knight Frank adjusted their prime yields upwards, with CBRE moving 25 basis points to 5.50% (Q4 2025: 5.25%). In contrast, Savills and JLL held prime yields flat citing evidence that pricing for high-quality assets with strong income and covenant characteristics remained resilient.
Our valuation performance during the period reflects this trend. High-quality logistics assets of the type that we develop and own are attracting investor interest and we continue to receive unsolicited approaches for buildings at pricing consistent with end of 2025 levels.
Data centres - strong demand amid limited capacity
Hyperscale cloud, AI and sovereign compute requirements continue to drive unprecedented demand for data centres across Europe. London remains the region's primary demand hub, but growth is constrained by limited power availability and delivery timelines that result from navigating planning, energisation and delivery.
Large-scale projects capable of meeting occupier requirements within required timeframes, such as Manor Farm, remain rare. This supply constraint is reflected in the delivery pipeline, with new completions expected to fall to approximately 114MW in 2026 from 231MW in 20254. The limited availability of suitable capacity, despite sustained occupier demand continues to support strong market fundamentals.
Strategic and operational update:
A clear and consistent strategy that continues to deliver
Our strategy is designed to capture the significant value inherent in our portfolio and the opportunities presented by our markets. In doing so, we aim to deliver attractive and sustainable growth in income, dividends and capital values, and resilient performance through the economic cycle.
The three mutually reinforcing components of our strategy are:
1) Owning high-quality assets that attract world-leading clients - delivering long-term, resilient and growing income, enhanced by urban logistics assets that can frequently capture market rents.
2) Direct and active management - protecting, adding and realising value from the investment portfolio.
3) Insight driven development and innovation - creating value, future-proofing and capturing occupier demand by developing new logistics and data centre assets.
Sustainability is an intrinsic part of our strategy and informs all our decision-making. We believe our focus on sustainability preserves and creates value and supports overall business performance. Our approach is also client centric, aligned with the growing recognition of the benefits modern and efficient logistics real estate can provide.
A strategy that delivers three powerful growth drivers
Our successful implementation of our strategy over more than a decade has given us the UK's strongest investment portfolio of logistics assets, the UK's largest logistics-focused land platform for development and a c.1GW pipeline of data centre development opportunities. This unique position presents us with three multi-year growth drivers, well aligned with global mega-trends. Taken together, enhanced by the doubling of secured power announced today, this combination has given us the confidence to increase our Adjusted EPS growth ambition to 65% by 2030/31, from approximately 50% by 2030, from our 2024 baseline:
· Growth driver 1: Capture record rental reversion in the investment portfolio, through active management.
· Growth driver 2: Deliver best-in-class logistics developments.
· Growth driver 3: Deliver exceptional risk-adjusted returns through data centre development.
The following sections describe the key characteristics of our portfolio and our progress with each of our three growth drivers during the period.
Growth driver 1: Capturing record rental reversion through active management
|
Key figures |
Six months to 30 June 2026 |
Six months to 30 June 2025 |
Change |
|
|
|
|
|
|
Portfolio subject to rent review in period (%) |
14.4% |
8.7% |
5.7pts |
|
Proportion of portfolio reviewed (%) |
12.6% |
9.7% |
2.9pts |
|
|
|
|
|
|
Contracted rent uplifts - reviews and lease events (£m) |
6.5 |
5.6 |
16.1% |
|
Contracted rent uplifts - reviews and lease events (%) |
10.5% |
10.3% |
0.2pts |
|
Change in contracted rent from new lettings (£m) |
2.1 |
- |
n/a |
|
Change in contracted rent from lease expiries (£m) |
(0.9) |
-1.5 |
40% |
|
|
|
|
|
|
EPRA like-for-like rental growth (%) |
5.1% |
2.5% |
2.6pts |
|
|
|
|
|
|
Completed disposals (£m gross proceeds) |
259.1 |
204.8 |
26.5% |
|
Completed disposals (million sq ft) |
1.8 |
1.3 |
38.5% |
|
Completed disposals (£m contracted rent) |
16.8 |
13.0 |
29.2% |
|
|
|
|
|
|
Acquisitions (£m consideration) |
- |
74.3 |
- |
|
Acquisitions (million sq ft) |
- |
0.6 |
- |
Growing and lengthening income
In H1 2026, we completed reviews on 12.6% of the investment portfolio (H1 2025: 9.7%). This was the majority of the 14.4% (H1 2025: 8.7%) which was due for a rent review in the period. The difference is a timing feature and also includes outstanding rent reviews from previous periods that we settled in H1 2026 and reviews that began in the first half that had not completed at 30 June 2026.
The table below shows the strong rental uplifts achieved from rent reviews, lease renewals and extensions. The open market rent reviews were all for urban logistics assets, with an average increase of 39% and the greatest increase being 53%. Nearly 40 open market rent reviews were in progress at the period end, including four related to big box assets.
H1 2026 settled rent reviews and lease events
|
Rent review type |
Number |
% of contracted rent |
Growth in passing rent (£ million) |
Growth in passing rent (%) |
|
Index linked |
6 |
8.4% |
3.5 |
11.7% |
|
Open market |
16 |
0.3% |
0.5 |
39.0% |
|
Hybrid |
- |
- |
- |
- |
|
Fixed |
4 |
3.9% |
1.2 |
8.4% |
|
Total rent reviews |
26 |
12.6% |
5.2 |
11.5% |
|
Lease events (renewals and extensions) |
36 |
4.5% |
1.3 |
7.9% |
|
Leasing up of vacant space |
15 |
n/m |
2.1 |
- |
|
Total |
77 |
17.1% |
8.6 |
10.5% |
In addition, we achieved 15 new lettings of units that had become vacant on lease expiry. These increased passing rent by £2.1 million. The total increase in passing rent from rent reviews and leasing activity was therefore £8.6 million
Consistent with our expectations, in addition to the £8.6 million secured in the period, another £11.7 million is currently being progressed. A further 14.4% of the portfolio is subject to review in H2 2026, where we have the potential to grow contracted rent by up to £8.7 million. In addition, lease expirations in H2 2026 have the potential to add an additional £2.7 million reversion capture.
The combination of our investment portfolio and logistics development programme helps us to be the landlord of choice for clients, as we can collaborate with them across multiple assets and develop their supply chain network with additional units. We saw the benefits of this approach during the period, agreeing a 20-year lease to Curry's on a 397,000 sq ft speculatively developed unit at Newark, in conjunction with a 10-year lease extension on the existing 726,000 sq ft unit let to Curry's in the same location. This increased the remaining lease term to 20 years, in line with the lease on the new building.
Other significant lease events during the period included:
· 15-year lease extension at Fradley (553k sq ft), with an open market rent review expected to deliver a c.25% uplift, in line with ERV, scheduled for 2027; and
· five-year lease renewal at Didcot (288k sq ft), providing a rental uplift of 28.4% at £10 psf, 5.26% above the ERV.
Successful integration of the Blackstone assets and maximising the value of our urban logistics units
During the period, we focused on integrating and driving value from the assets we acquired from Blackstone in October 2025. Our proactive approach prioritises being on-site and engaging with clients. This has been well received by our new clients, and we are developing positive relationships, supporting good results with renewals and lease extensions. Our success has been enabled by further investment by the Manager in its asset and property management teams.
In line with our asset management strategy for our urban logistics assets, one of our key aims with the former Blackstone estates is to improve their overall quality and rental income, while ensuring the product remains appropriate for the client base. This includes improvements to landscaping, signage and estate amenities and ensuring the estates are clean and tidy, so they are attractive places to work for existing clients, and vacant units present favourably for viewings. Aligned to this approach, having undertaken 63 lease events, we have increased the rental income of the urban logistics assets acquired from Blackstone by 4.4% since acquisition.
Supporting our client engagement through technology
The Manager's proprietary Customer Engagement Platform is helping to further improve our client relationship management. The platform is a centralised repository of internal and external data sources, allowing our asset managers to quickly access and interpret key client information. This includes financial data, lease information, supply chain intelligence, client sustainability targets, records of recent engagement and property inspection reports. The platform is now embedded in the Asset Management team's daily workflow, and its benefits were evidenced during the integration of assets acquired from Blackstone, by enabling us to curate, analyse and update client intelligence at scale.
As well as being a valuable client research and tracking tool, the platform supports our verification and risk management processes, recording our covenant checking, frequency of inspections and client meetings. The data is also linked to property and client records in our Investment Modelling platform, allowing us to analyse data using multiple bases.
Enhancing income and capital values through our focus on sustainability
By working in partnership with our clients on sustainability initiatives, we can increase rental income and capital values, while helping them to deliver their own sustainability targets. We have therefore integrated sustainability considerations throughout the investment lifecycle, as well as our management of the Group's supply chain and engagement with our clients.
Our objective is to achieve strong sustainability performance, with a focus on practical action. Data is integral to maximising our effectiveness, ensuring we are tracking our performance and continuing to add value to our buildings through proactive asset management and innovation.
We know our clients prefer modern buildings that are powered by clean energy, are energy efficient and have the power resilience to accommodate future electrification requirements. As at 31 December 2025, 84.4% of clients (by sq ft) had set carbon-reduction targets. Using our proprietary modelling platform, we are refining our asset-level decarbonisation plans and incorporating carbon efficiency actions into asset business plans and cash flows.
We take an active approach to improving the sustainability performance of our assets. This is heavily dependent on engaging with our clients and understanding the whole-building energy consumption of our assets. Our collaboration enables us to plan and finance energy efficiency projects, such as onsite solar PV, removal of natural gas-fired heating and replacement of LED lighting. To provide low-cost, low-carbon electricity to our clients, we have installed 29.8MW of onsite renewable solar capacity across 39 schemes, with 17 new schemes currently being assessed across our standing assets which could add 19.4MW of installed solar capacity.
Active management of the portfolio to optimise performance and recycle capital
Every six months, we conduct a thorough process to develop a five-year business plan for each asset in the portfolio. This draws on expertise from across our teams, including asset management, sustainability, development, power and our data analysts. Through this, we identify assets that are candidates for disposal, for example because:
1) We have completed our asset management plans and maximised near-term value;
2) The asset's investment characteristics no longer fit our desired portfolio profile; or
3) The asset's future performance may be below others in the portfolio or have more risk attached to it.
When we identify certain assets for disposal, we look closely at capital market conditions to determine whether we are acting at the correct point in the market cycle for the assets in question. We continually profile the most active buyers to establish their desired income profile, coupled with their transactional experience and financing, to ensure we engage with credible purchasers able to complete transactions.
We have been one of the most proactive recyclers of capital in the sector, having sold c. £1 billion of assets since 2022. During H1 2026, we disposed of £225.7 million of logistics assets, including a portfolio of six assets sold to EQT Real Estate for £199 million, in line with their respective book values. These comprised big box and urban logistics assets at Leamington Spa, Peterborough, Didcot and Kettering.
We also neared completion of our divestment of the remaining non-strategic assets acquired with UKCM, disposing of two assets for gross proceeds of £33.4 million. Our disciplined disposal process and active management of the non-strategic assets has enabled us to achieve a blended exit price on our disposals to date that is in line with the assets' implied acquisition price. Post the period end, of the four remaining non-strategic assets, we have completed or exchanged to sell three, with disposal proceeds agreed at £84.9 million. Beyond this, we therefore only have one non-strategic asset remaining, which is in solicitors' hands and from which we expect to exit in the coming months.
Growth driver 2: Deliver best-in-class logistics developments.
|
|
H1 2026 |
H1 2025 |
Change |
|
Development starts (million sq ft) |
- |
1.1 |
- |
|
- of which DMA starts (million sq ft) |
- |
0.3 |
- |
|
Development starts (£m ERV) |
- |
10.1 |
- |
|
|
|
|
|
|
Space under construction (million sq ft) |
1.2 |
2.5 |
(52.0%) |
|
Space under construction (£m ERV) |
13.0 |
23.1 |
(43.7%) |
|
|
|
|
|
|
Development completions (million sq ft) |
0.6 |
0.8 |
(25.0%) |
|
- of which DMA completions (million sq ft) |
- |
0.4 |
- |
|
Development completions let (million sq ft) |
- |
0.1 |
- |
|
Development completions let (£m to passing rent) |
- |
1.5 |
- |
|
|
|
|
|
|
Development capex - logistics (£m) |
79.6 |
166.8 |
(52.2%) |
|
Development capex - data centres (£m) |
1.6 |
201.0 |
(99.2%) |
|
Total development capex (£m) |
81.2 |
367.8 |
(77.9%) |
|
|
|
|
|
|
Development lettings (million sq ft) |
0.5 |
- |
- |
|
Development lettings (£m) |
4.9 |
- |
- |
|
Development annualised contribution to passing rent (£m) |
3.3 |
- |
- |
|
|
|
|
|
|
Average yield on cost for development lettings (%) |
7.4 |
- |
- |
|
|
|
|
|
|
Planning consents secured (million sq ft) |
- |
0.3 |
- |
|
Total planning consented land at the period end (million sq ft) |
4.3 |
4.5 |
(4.4%) |
Continued logistics development progress
Developing logistics assets replenishes our investment portfolio with new, best-in-class buildings and enhances overall shareholder returns, through an attractive yield on cost of 6-8% and careful risk management.
We control the UK's largest land portfolio for logistics development, which has the potential to deliver approximately 37.7 million sq ft of new space through developments and generate £354 million of additional contracted rent. Of this, c.£74.8 million is deliverable within 36 months. The pipeline is diversified geographically across 25 sites in prime locations and is highly flexible, enabling us to match our clients' requirements for different building sizes, ranging from urban or last mile assets to "mega boxes". Once built and let these developments become investment assets for us.
We made further progress with our development pipeline in H1 2026, with:
· 0.6 million sq ft of developments reaching practical completion in the period, with the potential to add £6.9 million to passing rent;
· 1.2 million sq ft of developments under construction at the period end, of which 78% has been pre-let; and
· 0.5 million sq ft of development lettings adding £4.9 million per annum to contracted rent, formed of:
o 0.4 million sq ft unit in Newark let to Curry's, securing £3.3 million in annual rental income and signed in conjunction with the 10-year lease extension on its existing 0.7 million sq unit in the same location (see Growth driver 1: Capturing record rental reversion through active management for more information); and
o 0.1m sq ft unit pre-let in Cambridge, securing £1.6 million in contracted annual rental income, subject to planning.
These new lettings collectively are expected to deliver a yield on cost of 7.4%.
At the period end, we also had:
· 0.8 million sq ft of development lettings in solicitors' hands, with potential annual rental income of £7.6 million; and
· 0.6 million sq ft of space in advanced negotiations, with the potential to add £6.8 million to rental income.
Two of our schemes experienced planning delays which resulted in no new development starts during the first half. We invested £79.6 million of capital expenditure in the period into logistics, including development and asset refurbishment, and, coupled with planned development starts in the second half of the year, expect our total investment for 2026 to be within the range of £150-250 million. Our yield on cost guidance for 2026 development starts is towards the upper end of 6-8% range, supported by our strategy of agreeing fixed-price construction contracts, continued market rental growth and the benefit of later phases of schemes with lower levels of associated infrastructure investment.
Occupier interest in build-to-suit logistics assets remains strong and we continue to receive enquiries and progress discussions on pre-let opportunities. These discussions typically relate to assets of 300,000 sq ft and above and see occupiers planning their supply chain needs up to four years ahead, reflecting their understanding of the barriers to entry for delivering the largest big boxes.
A carefully considered and low-risk approach to developing logistics assets
We hold most of our land portfolio through long-term options. These are capital efficient and reduce risk, as we typically only buy the land once we have received planning consent. This provides control over the quantum and timing of our purchases. The options include a typical 15-20% discount to prevailing land prices at the point of acquiring the land and we can offset much of the site's planning and infrastructure costs against the purchase price. This means we typically secure an attractive development profit on land drawdown and are partially insulated from the impact of changing land values over the longer term.
Another significant benefit of holding land under long-dated options is the flexibility it gives us to adjust our development activity upwards or downwards to match prevailing market conditions and optimise performance. This allows us to take a considered approach to speculative developments, only commencing construction when we have clear evidence of occupier demand. Where possible, we aim to deliver assets in locations where we see a gap in the market pipeline and can benefit from competitive tension between several occupiers looking for buildings.
As at 30 June 2026, the Group was awaiting decisions on planning applications totalling 6.9 million sq ft.
Our Investment Policy also ensures we control development risk by limiting land and development exposure to 15% of GAV, including a maximum exposure to speculative development of 5% of GAV. At the period end we remained well within these limits:
· Land and development exposure was 6.6% of GAV; and
· Speculative exposure (based on aggregated costs) was 2.7%.
A well-balanced portfolio of current, near-term and longer-term development opportunities
We categorise our development portfolio based on the timing of opportunities:
· Current development pipeline - assets under construction, which are either pre-let, let during construction or speculative developments. The Group owns these sites.
· Near-term development pipeline - sites with planning consent received or submitted, and where we aim to begin construction in the next three years. The Group will own some of these sites, with others held under option as we are either awaiting planning consent or have achieved outline planning but not yet acquired the land.
· Future development pipeline - longer-term land opportunities, which are principally held under option, and which are typically progressing through the planning process.
1) Current development pipeline - assets under construction to be delivered in next 12 months
At 30 June 2026, the Group had the following assets in the current development pipeline. The total estimated cost to complete is £23.0 million and the assets have the potential to add £13.0 million to annual passing rents.
|
|
Costs of completion |
|
|
||||
|
|
|
H2 2026 |
H1 2027 |
Total |
Total sq ft |
Contractual |
|
|
|
|
£m |
£m |
£m |
m |
£m |
|
|
Current speculative |
|
13.3 |
6.7 |
20.0 |
0.3 |
3.2 |
|
|
Current pre-let |
|
3.0 |
- |
3.0 |
0.9 |
9.8 |
|
|
Total |
|
16.3 |
6.7 |
23.0 |
1.2 |
13.0 |
|
2) Near-term development pipeline - construction expected to commence in next 12-36 months
At the period end, the near-term development pipeline consisted of land capable of accommodating 7.6 million sq ft of logistics space and delivering £73.2 million of annual rent, of which £1.6 million is already secured at Cambridge.
Of this:
· 4.3 million sq ft relates to land with planning consent; and
· 1.8 million sq ft relates to sites where we have submitted a planning application.
The table below presents the near-term development pipeline at the period end. Movements in the figures are driven by construction starts (which will move space to the current development pipeline), or changes in our view on the likely timing of starts, resulting in movements between the two categories below. The ERVs in the table are based on current market rents and therefore assume no further rental growth before the schemes become income producing.
|
Logistics development |
Total sq ft |
Current book value £m |
Estimated cost to completion (Uncommitted) £m |
ERV £m |
|
Potential near-term starts in the next 12 months |
2.0 |
21.3 |
220.0 |
17.0 |
|
Potential near-term starts in the following 24 months |
5.6 |
75.1 |
695.8 |
56.2 |
|
|
7.6 |
96.4 |
915.8 |
73.2 |
3) Future development pipeline
The future development pipeline is predominantly controlled under longer-term option agreements. Most option agreements contain an extension clause, allowing us to extend the option expiry date where necessary.
The future development pipeline has sites at various stages of the planning process, with multiple sites being currently promoted through local plans. We have continued to replenish the pipeline by securing options over new sites.
At 30 June 2026, the future development pipeline comprised 1,369 net acres, with the potential to support up to 29.8 million sq ft of development and generate around £279.1 million of contracted rent, assuming no future market rental growth.
During the period, the Group recorded an impairment against intangible and other property assets of £10.6 million (H1 2025: £25.5 million). This comprised an £3.2 million impairment against our share in a joint venture and £7.4 million in relation to a land option (which included an apportionment of the purchase price of DB Symmetry in 2019). In both cases, this reflects our views around the viability of developing these sites, as site specific circumstances is leading to the potential returns on offer falling below our target range and those available from other opportunities.
Development Management Agreements (DMA) and DMA income
While our development programme primarily creates assets for the investment portfolio, we occasionally work with a client to develop an asset for freehold sale to them, where this may help us to gain planning, open up a site and accelerate our profit capture.
We undertake these freehold sales through a DMA, under which we manage the development of an asset in return for a fee and/or profit share. The Group does not own the site during construction or the completed investment and DMAs are therefore excluded from our asset portfolio and recurring income metrics. DMAs deliver a high-return and capital light source of profit, which we can recycle into other development or investment activity.
On average over the medium-term we expect to generate £3.0-5.0 million per annum of DMA income. However, the nature and timing of these activities means DMA income is highly variable. The Group earned no DMA income in H1 2026 (H1 2025: £13.3 million).
The Company has previously reported two key performance indicators in the form of Adjusted Earnings per share and Adjusted earnings per share (excluding additional DMA Income).
In the period we have replaced the second of these key performance indicators. Previously, this was defined as 'Adjusted Earnings (excluding additional DMA Income)' and this would have been inclusive of up to £4 million of DMA Income per annum.
This has been revised to 'Adjusted Earnings (excluding DMA Income)', which now removes all DMA Income recognised in the period. The first key performance indicator, being Adjusted Earnings per share, continues to include all DMA Income recognised in the period and therefore remains unchanged.
The treatment and impact of DMA income is discussed in the Financial review section.
Enhancing sustainability through our development activities
Sustainability is a core element of our approach to development. Knowing our clients want low-carbon, energy efficient buildings, we have set ambitious targets for our new buildings. We aim to achieve upfront embodied carbon of less than 400kg CO2e/m2, as well as EPC A and BREEAM Excellent certifications. Our average portfolio upfront embodied carbon intensity (whole site) for H1 2026 is 347.9 kgCO2e/m2 (FY25[4]: 443.7kgCO2e/m2), which we have achieved through optimising design and employing low-carbon construction materials, where viable.
Clients can struggle to attract and retain talent from the local communities around our assets. Our social impact programme includes a focus on building their future workforce. In H1 2026, through the education programmes delivered by our charity partnerships, we have directly and indirectly supported 44,876 young people to improve their employability skills and prepare for the world of work.
Growth driver 3: Delivering exceptional risk-adjusted returns through data centre development
Data centres are an essential part of the UK's economic growth agenda and are classified as Critical National Infrastructure. We see opportunities to deliver exceptional risk-adjusted returns to shareholders through pre-let data centre developments and made further excellent progress in the first half of the year.
We have taken an innovative "power-first" approach to developing data centre assets, recognising the acute scarcity of deliverable grid connections. In key availability zones the wait times for power connections are more than 10 years, which significantly restricts development of data centres in these locations.
Our "power-first" approach:
· Utilises the Manager's deep in-house understanding of the UK power network;
· Leverages our strong relationships with leading power companies;
· Identifies and secures existing grid connection agreements in key data centre locations; and
· Identifies and secures appropriate sites.
This means our data centre developments can be income producing up to a decade earlier than following the traditional real estate model of securing the land first. Typically, we will provide the client with a powered shell, in which the client is responsible for fitting out, operating and maintaining the data centre. Given their location and available power, our first two data centre developments - Manor Farm and Chelmsford - are particularly attractive to cloud service providers and for AI inference.
Reflecting delays to the Manor Farm planning permission process, which we had anticipated in December 2025, total capital expenditure on data centre development was £1.6 million in H1 2026.
Planning consent secured at Manor Farm
In January 2025, we purchased the 74-acre Manor Farm site at Heathrow, London, within the Slough Availability Zone. Simultaneously, we established a 50:50 joint venture with EDF Renewables, enabling accelerated power delivery to the site using existing grid connection agreements, with 107MW to be provided in 2027 and a further 40MW in 2029. This power capacity is supported by on-site utility-scale battery storage.
Manor Farm will be one of the UK's largest data centres, with a targeted yield on cost of 9.3%. On 10 June 2026, we announced that the Secretary of State for Housing, Communities and Local Government had approved our proposal, which will enable us to begin site preparation works in the second half of the year. We have a pre-let in solicitors' hands with a potential occupier on a powered-shell basis, where the occupier will be responsible for the internal fit out of the building and full rent will commence upon practical completion.
The Group has incurred initial funding costs of £80.0 million, covering the initial land purchase (£70.0 million), the 50% joint venture stake (£6.1 million) and associated costs (£3.9 million).
The remaining capital requirements are expected to be broadly as follows:
· £185 million of capital expenditure, contingent on securing a pre-let; and
· c.£100 million of costs contingent on success, including contingent land consideration and Tritax Management Limited's profit share, 50% of which will be paid in Company shares.
Progressing our second data centre site at Chelmsford
Our second data centre site is at Chelmsford, in the broader London availability zone. It has an initial 125MW, with power delivery scheduled for 2028, and the opportunity for future expansion. It has the potential to deliver £23-25 million of annual rent and a highly attractive 10-11% yield on cost. Reflective of the quality of the location, which is well positioned close to key data cable routes, we have already received expressions of interest in the scheme from potential occupiers ahead of formal marketing of the site, which commenced in July.
In June 2026, the Company announced it had entered into a DMA with the Manager to deliver the data centre at Chelmsford, emulating the existing arrangements for Manor Farm. The Manager will provide development management and technical services, including securing planning, pre-letting services, overseeing construction, technical electrical expertise and managing the technical aspects of the scheme and all power-related elements. Further information can be found in the Financial review.
Securing an additional 235MW of power to enable two additional schemes
As we announced today, we have nearly doubled the amount of secured power we control with a further 235MW, enabling us to develop two additional schemes and bringing our total secured power to 507MW.
The two new schemes target £50-60 million of data centre rental income (excludes an additional 10-15% of power infrastructure-related rental income) and £300-400 million of capital profits in aggregate. Consistent with Manor Farm and Chelmsford, these schemes are targeting yields on cost of between 9-11%, profit on costs of greater than 50% assisting in delivering exceptional risk-adjusted returns to shareholders. The schemes are in the Greater London availability zone.
While there are key milestones to deliver, we anticipate them reaching practical completion in 2030/31, with meaningful capital value growth driving NTA performance at each of those milestones ahead of significant rental income generation. The proposed Equity Issue supports the delivery of this growing pipeline, complementing our capital rotation activities.
A potential >1GW opportunity
We have power enabled opportunities totalling over 1GW. These are formed of power opportunities at various points on the delivery framework and based upon levels of contractual certainty and anticipated power delivery dates. Our target yield on cost for powered shell data centre opportunities is 9-11% and we expect our capital expenditure on data centre development to be £100-200 million per annum over the medium term.
Addressing the sustainability challenges
We recognise the sustainability challenges that the data centre sector faces, during both development and operation. We are therefore developing a comprehensive approach to sustainability for our development pipeline. This will consider the challenges of climate change, biodiversity, health and wellbeing across five types of capitals - economic, physical, natural, human and social, and set out appropriate targets against each capital. Notably, as we are developing brand new and purpose-built data centres, they should provide greater efficiencies than retrofitting data centres into pre-existing logistics buildings.
We are already taking a proactive approach, which includes:
· Promoting the use of closed-loop cooling systems, selected specifically to help minimise operational water demand. Modern industry examples demonstrate that closed-loop systems can operate with minimal ongoing water consumption, with top-up requirements limited to minor system losses.
· Applying good practice mitigation, including high standards of energy efficiency with a fabric-first approach, and co-location with renewable energy generation assets. This will minimise energy demand, maximise efficiency and ensure alignment with national decarbonisation pathways.
· Where possible, combining our data centre developments with co-located battery storage facilities. This will directly contribute to national net-zero goals, boosting clean-energy use by storing surplus renewables, strengthening grid and data-centre resilience, and reducing reliance on diesel generators and carbon-intensive peaking plant.
Our portfolio: High-quality and offering both resilience and substantial income growth potential
At the period end, the total portfolio value was £7.68 billion (31 December 2025: £7.89 billion), with rental growth, development gains (including from Manor Farm) and asset management activity substantially offsetting valuation pressure from higher yields, with the overall small decline in portfolio value reflecting asset disposals completed in the period.
The total portfolio comprises:
· The investment portfolio - is formed of standing logistics assets, the vast majority of which are leased or have agreements for lease. The investment portfolio also includes a small number of non-strategic assets we acquired with UKCM in 2024, which we are divesting to fund higher-returning opportunities, particularly our development programme. At 30 June 2026, three of the four remaining non-strategic assets were either under offer or had exchanged contracts for sale. The final one went under offer post period end.
· The development portfolio - comprises land, options over land and buildings under construction, generating best-in-class logistics and data centre assets for the investment portfolio.
|
Total portfolio |
30 June 2026 £ billion |
30 June 2026 % of GAV |
31 December 2025 £ billion |
31 December 2025 % of GAV |
|
Logistics portfolio |
7.05 |
91.9% |
7.15 |
90.7% |
|
Non-strategic assets |
0.12 |
1.5% |
0.15 |
1.9% |
|
Investment portfolio |
7.17 |
93.4% |
7.30 |
92.6% |
|
Development portfolio |
0.51 |
6.6% |
0.59 |
7.4% |
|
Total portfolio |
7.68 |
100.0% |
7.89 |
100.0% |
Our logistics portfolio
The below table shows key operational information in relation to our investment portfolio. Consistent with our strategy, we note the level of net asset disposals undertaken in the period, reflected in relative change in size within the portfolio and the associated impact on key metrics, such as Gross lettable area and Contracted rent.
|
|
30 June 2026 |
31 December 2025 |
Change |
|
Investment portfolio value (£bn) |
7.17 |
7.30 |
(1.8)% |
|
Number of lettable units |
598 |
621 |
(3.7)% |
|
Gross lettable area (million sq ft) |
47.9 |
49.1 |
(2.4)% |
|
Estimated rental value (£m) |
459.6 |
462.0 |
(0.5)% |
|
Contracted rent (£m) |
355.7 |
360.9 |
(1.4)% |
|
Number of clients |
416 |
438 |
(5.0)% |
|
Vacancy |
6.5% |
5.6% |
0.9pts |
|
- Underlying |
3.1% |
3.1% |
- |
|
- Relating to recently completed speculative developments |
3.4% |
2.5% |
0.9pts |
|
WAULT (years) |
9.9 |
9.6 |
0.3 years |
|
Like-for-like six-month ERV growth |
1.9% |
1.8% |
0.1pts |
A broad and deep logistics offering
"Big boxes", which we define as assets of more than 100,000 sq ft, make up most of our portfolio. Since 2022 we have also strategically built a growing presence in urban logistics assets under 100,000 sq ft, which accounted for 18.9% of our contracted rent at the period end. This allows us to meet our client needs for "first mile" mission-critical logistics assets through to "last mile" urban delivery units.
At the period end, the investment portfolio contained the following mix of building sizes:
|
Investment portfolio |
Contracted rent |
Contracted rent |
|
<100k sq ft |
18.9% |
19.3% |
|
100 - 250k sq ft |
9.3% |
10.6% |
|
250 - 500k sq ft |
28.1% |
27.1% |
|
>500k sq ft |
43.7% |
43.0% |
The investment portfolio is well-diversified geographically, with a good balance of exposure to key logistics locations in the South East, the Midlands and the North of England:
|
Investment portfolio locations by market value |
30 June 2026 |
31 December 2025 |
|
South East |
36.7% |
35.6% |
|
South West |
3.4% |
3.4% |
|
East Midlands |
13.2% |
13.9% |
|
West Midlands |
23.3% |
23.9% |
|
North East |
12.9% |
12.7% |
|
North West |
8.9% |
8.7% |
|
Scotland |
1.6% |
1.8% |
Secure client base underpins income generation
We have a highly diversified client base, with 416 clients across the investment portfolio at the period end (31 December 2025: 438). Our clients include some of the world's most-important companies, with 57.5% being part of groups included in major stock market indices, such as the DAX 30, FTSE All Share, SBF 120, NYSE and S&P 500. The table below lists our top ten clients, which together accounted for 40.6% of contracted rent at 30 June 2026 (31 December 2025: 41.6%):
|
Client |
% of contracted annual rent |
|
Client |
% of contracted annual rent |
|
Amazon |
12.4% |
|
Tesco |
3.5% |
|
The Co-Operative Group |
3.7% |
|
B&Q |
3.2% |
|
WM Morrisons |
3.7% |
|
Curry's Group |
2.7% |
|
Iron Mountain |
3.5% |
|
Sainsbury's |
2.3% |
|
Argos |
3.5% |
|
Marks & Spencer |
2.1% |
Attractive "triple net" leases enhance income security and minimise property costs
At the period end, the investment portfolio's WAULT was 9.9 years (31 December 2025: 9.6 years), with the increase driven by leasing activity in the period. Urban logistics assets had a WAULT of 5.3 years (31 December 2025: 5.1 years) and big box assets had a WAULT of 10.9 years (31 December 2025: 10.6 years).
Of total rents:
· 21.6% is generated by leases with 15 or more years to run; and
· 27.6% comes from leases expiring in the next five years, providing near-term opportunities to capture the growing rental reversion within the portfolio, as described below.
The structure of our leases helps to maximise the proportion of our gross rental income that flows through to net rental income. Most of our logistics asset leases are full repairing and insuring (FRI), equivalent to "triple net" leases in the United States. This means our clients are responsible for property maintenance during the lease term and for dilapidations at the end of the lease. This minimises our irrecoverable property costs, which resulted in 98% conversion of gross to net rental income for the period.
Upward-only rent reviews provide attractive income growth
Most of our logistics leases benefit from upward-only rent reviews. Of total contracted rents for logistics assets:
· 13.2% are reviewed annually;
· 79.1% are reviewed in five-yearly cycles, with the timings staggered so there are reviews taking place each year; and
· 7.7% have either no rent reviews or a different review frequency (with opportunities to capture reversion upon expiry and reletting).
The table below shows the rent review types across the logistic portfolio at the period end:
|
Rent review type |
% of rent roll at 30 June 2026 |
% of rent roll at 31 December 2025 |
|
Fixed uplifts |
7.9% |
7.9% |
|
Inflation linked (RPI/CPI) |
41.9% |
40.3% |
|
Open market |
32.8% |
34.9% |
|
Hybrid (higher of inflation or open market) |
10.4% |
9.2% |
|
No reviews[5] |
7.0% |
7.7% |
Leases with inflation-linked reviews specify minimum and maximum rental growth, which average 1.6% and 3.7% respectively. In tandem with fixed rent reviews, this provides certainty on the minimum rental increases the portfolio will generate each year. We supplement this through open market and hybrid rent reviews, which can capture uncapped market rental growth, and other forms of active management to increase rental income.
Due to the balance of open market and inflation-linked rent reviews, and the growing rental reversion in the portfolio (see below), we remain positive about continuing to deliver attractive, long-term income growth from our investment assets. Information on rent reviews in the period can be found in the Growth driver 1: Capturing record rental reversion through active management section above.
Stable underlying portfolio vacancy
Having buildings available enables us to capture real-time demand in the market and carry out asset management initiatives such as refurbishments where needed, helping to improve the rental tone of an entire estate. For our speculative developments, our standard appraisal assumptions include a void period of up to 12 months, even though we only begin construction when we have had interest from and dialogue with at least one prospective client.
The table below shows the movement in vacancy across the investment portfolio during the period, with stable underlying vacancy in our investment portfolio offset by the contribution to vacancy from recently completed speculative developments:
|
Vacancy composition |
30 June 2026 |
31 December 2025 |
Change |
|
Underlying |
3.1% |
3.1% |
0 pts |
|
Recent development (i.e. completed within the past 12 months) |
3.4% |
2.5% |
0.9 pts |
|
Total vacancy |
6.5% |
5.6% |
0.9 pts |
Increasing ERVs and record rental reversion provide significant opportunity to grow rental income
At each valuation date, the valuer independently assesses the estimated rental value (ERV) of every asset in the investment portfolio. This is the rent the property would be expected to secure through an open-market letting at that date. The table below analyses the rental reversion in the investment portfolio, which is the difference between the ERV and the contracted rent at the period end:
|
Investment portfolio ERV |
30 June 2026 |
31 December 2025 |
Change |
|
ERV (£m) |
459.6 |
462.0 |
(0.5)% |
|
Contracted rent (£m) |
355.7 |
360.9 |
(1.4)% |
|
Rental reversion (£m) |
103.9 |
101.1 |
2.8% |
|
Rental reversion (%) |
29.2% |
28.0% |
1.2pts |
The ERV increased by 1.9% on a like-for-like basis in the period, reflecting market rental growth and the benefits of our asset management programme, with overall growth offset by ERV removed from the portfolio via those assets disposed of in the first half. At 30 June 2026, the total ERV was 29.2% higher than contracted rents, representing a record level of reversion.
We have opportunities to capture this reversion through open-market rent reviews, lease renewals, new leases and lease regears, as well as by filling vacancy in the investment portfolio. The tables below show the potential rental income from letting vacant assets and completing outstanding rent reviews, as well as the lease events arising in the near term that will allow us to capture higher rental levels.
|
Vacancy and outstanding reviews |
Contracted rent (£m) |
% of contracted rent |
ERV (£m) |
|
Vacancy |
- |
n/a |
30.5 |
|
Outstanding reviews from prior periods[6] |
15.5 |
4.4% |
22.0 |
|
Total |
15.5 |
4.4% |
52.5 |
|
Rent review and expiries[7] |
|
H2 2026 |
|
|
2027 |
|
|
2028 |
|
|
|
Review type |
Frequency |
Rent (£m) |
% of passing |
ERV (£m) |
Rent (£m) |
% of passing |
ERV (£m) |
Rent (£m) |
% of passing |
ERV (£m) |
|
Index linked |
Annual |
20.8 |
5.8% |
23.7 |
34.2 |
9.6% |
42.6 |
34.2 |
9.6% |
42.6 |
|
5-yearly |
9.4 |
2.6% |
11.3 |
17.7 |
5.0% |
24.3 |
13.0 |
3.7% |
13.6 |
|
|
Open market and hybrid |
Annual |
1.8 |
0.5% |
1.7 |
1.8 |
0.5% |
1.7 |
1.8 |
0.5% |
1.7 |
|
5-yearly |
13.4 |
3.8% |
19.2 |
24.7 |
7.0% |
29.3 |
19.4 |
5.5% |
22.5 |
|
|
Fixed |
Annual |
1.8 |
0.5% |
1.9 |
11.0 |
3.1% |
11.1 |
5.3 |
1.5% |
5.7 |
|
5-yearly |
4.3 |
1.2% |
5.2 |
6.7 |
1.9% |
9.1 |
0.0 |
0.0% |
0.0 |
|
|
Total rent reviews |
51.5 |
14.4% |
63.0 |
96.1 |
27.1% |
118.1 |
73.7 |
20.8% |
86.1 |
|
|
Lease expiries |
4.6 |
1.3% |
7.3 |
13.0 |
3.6% |
16.7 |
13.6 |
3.8% |
17.1 |
|
|
Total events in period |
56.1 |
15.7% |
70.3 |
109.1 |
30.7% |
134.8 |
87.3 |
24.6% |
103.2 |
|
In aggregate, we have the potential to capture 72% or £75.2 million[8] of reversion in the next 3 years. We have a strong track record of meeting or exceeding ERVs and capturing these uplifts, which require very limited or no capital expenditure. See the Capturing record rental reversion through active management section below for our progress in the period.
Portfolio quality reinforced by strong sustainability characteristics
EPC ratings are a key benchmark for both investors and occupiers. We work with our clients and consultants to improve the EPC ratings of existing buildings where possible and construct all our logistics developments to a minimum standard of EPC A and BREEAM Excellent.
At 30 June 2026, 78.7% of the investment portfolio had an EPC rating of B or above (31 December 2025: 79.8%[9]) and 45.5% of all assets certified or expected to be certified by BREEAM had a rating of Very Good or above (31 December 2025: 44.8%). The decline in the proportion of the portfolio achieving an EPC rating of B or above in the period relates to a combination of the impact of asset disposals and existing buildings awaiting re-certification.
Financial review
Overview
The Group delivered a robust financial performance in H1 2026. Net rental income increased by 16.2%, primarily reflecting the inclusion of the Blackstone portfolio acquired in October 2025, our asset management driven strong levels of like-for-like rental growth and development activity, partially offset by the impact of asset disposals.
Simplifying our presentation of adjusted earnings to reflecting changing DMA income profile
With legacy DMA contracts assumed as part of our 2019 acquisition of DB Symmetry reaching their conclusion, the Board expects DMA income to be a proportionately smaller component of earnings moving forward. As such, and to simplify its presentation, we have reported an Adjusted EPS figure with and without all DMA income. Previously, any DMA income above £4 million was treated as "additional" and excluded from our Adjusted Earnings Per Share (excluding additional DMA income) figure.
Adjusted earnings per share (excluding DMA income), which represents the recurring earnings potential of the business, increased by 7.0% to 4.41 pence (H1 2025: 4.12 pence). Given £nil DMA income in the period, Adjusted EPS was also 4.41 pence (H1 2025: 4.63 pence).
The key constituents of Adjusted EPS (excluding DMA income) growth in the period are shown in the table below:
|
|
Pence |
|
Adjusted EPS (including DMA income) in H1 2025 |
4.63 |
|
- DMA income |
(0.51) |
|
Adjusted EPS (excluding all DMA income) in H1 2025 |
4.12 |
|
Net revenue: |
|
|
- Investment assets |
0.27 |
|
- Development activity |
0.06 |
|
- Acquisitions moved to development |
(0.02) |
|
- Corporate acquisition impact |
0.87 |
|
- Disposals |
(0.27) |
|
Administrative expense |
(0.07) |
|
Net finance costs |
(0.51) |
|
Other |
(0.04) |
|
H1 2026 Adjusted EPS |
4.41 |
The corporate acquisition impact category includes £5.3 million of income from the £20.0 million reversionary bridge provided by Blackstone, as part of the October 2025 portfolio acquisition. See Other operating income for further information. The acquired portfolio is on track to generate mid-single digits EPS accretion for 2026, as we expected at the time of the acquisition, and is accelerating rental income capture due to the frequency of lease events and rent reviews, as well as the reversionary bridge.
The total dividend for the period was 4.00 pence per share (H1 2025: 3.83 pence), an increase of 4.4% and in line with the Group's dividend policy.
The EPRA NTA per share at 30 June 2026 was 185.88 pence (31 December 2025: 187.76 pence), reflecting broadly stable asset valuations on the investment portfolio, with a modest impact from yield softening and gains on development assets, including a contribution relating to the Manor Farm data centre project following receipt of planning consent.
One of our objectives for 2026 is to maintain a strong balance sheet and modestly reduce the LTV, following the October 2025 acquisition of assets from Blackstone, to retain the Group's financial flexibility. At 30 June 2026, the LTV was 32.9%, down 0.3 points from 33.2% as at 31 December 2025. This reflects the benefit of our continued portfolio optimisation, with £243.8 million of asset disposals and £15.3m land sale completed in the period. Moody's Ratings has maintained the Company's credit rating outlook at A3 since November 2025.
Presentation of financial information
The financial information is prepared under IFRS. The Group's subsidiaries are consolidated at 100% and its interests in joint ventures are equity accounted for.
The Board sees Adjusted EPS as the most relevant measure when assessing dividend distributions. Adjusted EPS is based on EPRA's Best Practices Recommendations and excludes items considered to be exceptional, not in the ordinary course of business or not supported by recurring cash flows.
Financial results
Net rental income
Net rental income grew by 16.2% to £173.3 million (H1 2025: £149.2 million), as described in the Overview section above.
Contracted annual rent at the period end was £355.7 million (31 December 2025: £360.9 million), with the movement reconciled below. The annual passing rent at the period end was £328.5 million (31 December 2025: £337.2 million).
|
Contracted annual rent |
£m |
|
As at 31 December 2025 |
360.9 |
|
Development lettings |
4.9 |
|
Rental reviews and asset management |
8.6 |
|
Disposals |
(16.8) |
|
Lease expiry and rent guarantee conversion |
(1.9) |
|
As at 30 June 2026 |
355.7 |
Other operating income
As described in the insight driven development and innovation section, the Group earns DMA income from developing for third parties or pre-selling developments to owner-occupiers. This is an attractive and profitable activity as the third party typically funds the development, resulting in a high return on capital for us. We include DMA income within Adjusted earnings, as cash flows support it.
However, DMA income is more variable than property rental income and its timing can affect our earnings from period to period. In H1 2026, the Group recorded no DMA income (H1 2025: £13.3 million).
The Group recognised income of £5.3 million in Adjusted earnings from the reversionary bridge provided by Blackstone, as set out in our announcement of the portfolio acquisition in October 2025. The reversionary bridge related to the reduction in the agreed acquisition price and totalled £20.0 million. Under IFRS this was recognised as an initial reduction in the value of the portfolio acquired and is not recognised within the IFRS income statement. Our expectation is that we will recognise 50-60% of it within Adjusted earnings in 2026, 40-50% in 2027 and 0-10% in 2028. The amount recognised in the first half is therefore in line with this guidance.
Administrative and other expenses
Administrative and other expenses, which include all the operational costs of running the Group, were £20.4 million (H1 2025: £18.4 million). The Investment Management fee for the period was £14.0 million (H1 2025: £13.3 million), with the increase due to the average EPRA NTA across the two periods and principally in relation to the Blackstone portfolio acquisition, including the related share issuance. The effective fee rate decreased from 58.3bps in H1 2025 to 55.7bps in the current period.
The EPRA Cost Ratio (including vacancy cost) was 13.5% (H1 2025: 13.8%), with vacancy broadly stable across the period. The EPRA Cost Ratio (excluding vacancy cost) was 12.2% (H1 2025: 12.9%), demonstrating our continued prioritisation of a low cost base for the Group, relative to our peers.
Operating profit
Operating profit before changes in fair value and other adjustments was £152.9 million (H1 2025: £144.1 million).
During the period, the Group sold £243.8 million of investment assets. After transaction costs, the Group has recorded a small loss on disposal of investment property in the period of £3.0 million (H1 2025: loss of £5.3 million).
The loss recognised on revaluation of the Group's investment properties was £15.8 million (H1 2025: £92.2 million gain), Further details are provided in the Portfolio Valuation section. The Group has recorded an impairment against intangible and other property assets of £10.6 million (H1 2025: £25.5 million) more details of which are provided in the Future development pipeline section of the Manager's Report.
Financing costs
Net financing costs for the period were £46.0 million (H1 2025: £32.2 million), excluding the loss in the fair value of interest rate derivatives of £2.4 million (H1 2025: £4.9 million loss). The weighted average cost of debt at the period end was 3.6% (31 December 2025: 3.6%, 30 June 2025: 3.2%). The increase in the cost of debt compared with H1 2025 reflects the higher average net debt drawn throughout the period, including the temporary acquisition facility used to finance the acquisition of the Blackstone portfolio. As planned, we have repaid a significant proportion of this acquisition facility during the period (see debt capital below). The majority of the Group's debt is either fixed rate or covered by interest rate caps. See hedging policy below for further details.
Average drawn debt during the period was £2,784.0 million (H1 2025: £2,106.9 million).
The Group capitalised £8.9 million of interest expense in the period (H1 2025: £6.7 million), reflecting the capital deployed into active development projects including our data centre projects. Our data centre development pipeline differs from our logistics development pipeline from an investment lead time perspective. Our logistics assets are relatively quick to construct, at around nine to twelve months, and our policy is to capitalise interest using our average cost of debt during the vertical construction phase of the asset, utilising our general borrowing pool. In contrast, our data centre projects have longer timeframes attached to both the infrastructure works as well as vertical construction; therefore we commence capitalising interest from the point of land drawdown/infrastructure commencement, utilising the specific rate of borrowing for these projects. Our joint venture agreement with EDF results in the Company charging a finance rate to the JV in line with the current cost of borrowing under our corporate RCF. Interest capitalised in relation to data centre developments is therefore proportionately greater than for logistics developments. Our guidance for capitalised interest for the full year remains at £15-20 million.
The interest cover ratio, calculated as operating profit before changes in fair value and other adjustments divided by net finance expenses, was 3.7x (H1 2025: 4.5x). The net debt to EBITDA ratio grossed up for the 12 months to 30 June 2026 was 7.9x (31 December 2025: 8.6x).
Tax
The Group has continued to comply with its obligations as a UK REIT and is exempt from corporation tax on its property rental business.
There was no tax charge in the period (H1 2025: £1.5 million charge).
Profit and earnings
Profit before tax was £75.8 million (H1 2025: £168.3 million), with the movement between the two periods driven by continued success with asset management and its impact on operating profit for the period, impairment charges (see portfolio valuation below) and the difference in net finance expense. The largest variance over the period relates to the valuation performance of the Group's investment properties which resulted in a fair value loss recognised of £15.8 million (H1 2026: £92.2 million gain).
IFRS EPS was 2.80 pence (H1 2025: 6.72 pence) with the performance driven by the same points as referenced in the above paragraph. Basic EPRA EPS, which excludes the impact of property valuation movements and the impairment charge, was 3.95 pence (H1 2025: 4.53 pence).
Adjusted EPS[10]for the six months was 4.41 pence (H1 2025: 4.63 pence) (see note 8 for the calculation). The metric we see as closest to recurring earnings is Adjusted EPS excluding DMA income, which was 4.41 pence for the period (H1 2025: 4.12 pence), an increase of 7.0% (also see Notes to the EPRA and other key performance indications, Note 1, for further information).
Dividends
We aim to deliver an attractive and progressive dividend. The Board's policy is for the first three quarterly dividends to each represent 25% of the previous full-year dividend, with the fourth-quarter dividend determining any progression. The aim is to achieve an overall pay-out ratio in excess of 90% of Adjusted earnings.
Following this policy, the Board has declared the following interim dividends in respect of H1 2026:
|
Declared |
Amount per share |
In respect of three months to |
Paid/to be paid |
|
7 May 2026 |
2.00p |
31 March 2026 |
12 June 2026 |
|
5 August 2026 |
2.00p |
30 June 2026 |
4 September 2026 |
|
Total |
4.00p |
|
|
The total dividend for the period of 4.00 pence was up 4.4% on the prior period (H1 2025: 3.83 pence). The pay-out ratio was 91% of Adjusted EPS (excluding all DMA income).
The cash cost of the dividends in relation to the period was £115.2 million (H1 2025: £101.7 million) (see note 9 for the calculation).
Portfolio valuation
The total portfolio value at 30 June 2026 was £7.68 billion (31 December 2025: £7.89 billion), including the Group's share of joint ventures:
|
|
30 June 2026 |
31 December 2025 |
|
£m |
£m |
|
|
Investment properties (including the rental reversion bridge) |
7,417.7 |
7,391.1 |
|
Other property assets |
0.8 |
0.8 |
|
Land options |
122.2 |
124.2 |
|
Share of joint ventures |
20.0 |
25.2 |
|
Financial asset |
2.4 |
2.4 |
|
Assets held for sale |
117.5 |
350.9 |
|
Portfolio value |
7,680.6 |
7,894.6 |
CBRE and JLL independently value the Group's assets that are leased, pre-leased or under construction. These assets are recognised in the Group Statement of Financial Position at fair value. The loss recognised on revaluation of the Group's investment properties was £15.8 million (H1 2025: £92.2 million gain). This was the net of:
· a modest outward movement in equivalent yield of 5.8% at the period end (31 December 2025: 5.7%);
· continued progress with the development programme, including a gain on Manor Farm on receipt of planning consent; and
· further growth in ERVs, which were 1.9% higher over the period.
Colliers independently values all owned and optioned land. Under IFRS, land options are recognised at cost and subject to impairment review. As at 30 June 2026, the Group's investment in land options totalled £122.2 million (31 December 2025: £124.2 million). During the period, we recorded an impairment charge of £10.6 million against the Group's option on a single site and a site option held through a joint venture. More details are provided in the future development pipeline section in the Manager's Report.
The share of joint ventures in the table above comprises 50% interests in certain special purpose vehicles, relating to land, land options and the Manor Farm joint venture. These are equity accounted for and appear as a single line item in the Statement of Comprehensive Income and Statement of Financial Position.
Capital expenditure
Capital expenditure totalled £81.2 million in the period (H1 2025: £443.8 million). This comprised £79.6 million of capital investment in the Group's logistics development and refurbishment programmes (H1 2025: £166.8 million) and £1.6 million related to our data centre projects (H1 2025: £201.0 million). The Group did not acquire any investment properties in the period (H1 2025: £76.0 million).
Embedded value within land options
As land under option approaches the point of receiving planning consent, any associated risk should reduce and the fair value should increase. When calculating EPRA NTA, the Group therefore makes a fair value mark-to-market adjustment for land options. At the period end, the fair value of land options was £16.1 million greater (31 December 2025: £17.7 million greater) than costs expended to date.
Net assets
The EPRA NTA per share at 30 June 2026 was 185.9 pence (31 December 2025: 187.76 pence). The table below reconciles the movement during the period:
|
|
p |
|
As at 31 December 2025 |
187.76 |
|
Operating profit net of finance costs |
4.23 |
|
Investment assets |
(1.37) |
|
Data Centres |
0.87 |
|
Development assets |
(0.19) |
|
Land options |
(0.45) |
|
Merger impact |
(0.16) |
|
Other |
(0.57) |
|
Dividends paid |
(4.24) |
|
As at 30 June 2026 |
185.88 |
The Total Accounting Return for the period, which is the change in EPRA NTA plus dividends paid, was 1.3% (H1 2025: 3.6%).
Debt capital
At 30 June 2026, the Group had the following borrowings:
|
Lender |
Maturity |
Loan commitment |
Notional amount drawn at |
Balance sheet carrying value at 30 June 2026 |
|
£m |
£m |
£m |
||
|
Loan notes |
|
|
|
|
|
2.625% Bonds 2026 |
Dec-26 |
65.6 |
65.6 |
65.6 |
|
2.86% Loan notes 2028 |
Feb-28 |
250.0 |
250.0 |
250.0 |
|
2.98% Loan notes 2030 |
Feb-30 |
150.0 |
150.0 |
150.0 |
|
3.125% Bonds 2031 |
Dec-31 |
250.0 |
250.0 |
248.6 |
|
4.75% Bonds 2032 |
Nov-32 |
300.0 |
300.0 |
297.3 |
|
1.5% Green Bonds 2033 |
Nov-33 |
250.0 |
250.0 |
247.8 |
|
Bank borrowings |
|
|
|
|
|
RCF (syndicate of nine banks) |
Oct-29 |
500.0 |
295.0 |
295.0 |
|
RCF (syndicate of eleven banks) |
Jun-31 |
400.0 |
188.0 |
188.0 |
|
Helaba |
Jul-28 |
50.9 |
50.9 |
50.9 |
|
PGIM Real Estate Finance |
Mar-27 |
90.0 |
90.0 |
90.0 |
|
Canada Life |
Apr-29 |
72.0 |
72.0 |
72.0 |
|
Barclays |
Oct-28 |
150.0 |
150.0 |
150.0 |
|
Barings Real Estate Advisers |
Apr-27 |
100.0 |
100.0 |
100.0 |
|
Barings Real Estate Advisers |
Feb-31 |
100.0 |
100.0 |
100.0 |
|
Santander |
Apr-28 |
350.0 |
350.0 |
350.0 |
|
Total |
|
3,078.5 |
2,661.5 |
2,655.2 |
During the period, we took up extension options to extend the term by one year on our £400.0 million RCF and the £150.0 million loan facility with Barclays.
We also used the proceeds of our asset sales during the period to repay £272.0 million of the Santander acquisition facility. This is a temporary facility we arranged to part finance the acquisition of the Blackstone portfolio in October 2025. With £350 million outstanding on this loan, we plan to refinance the balance of this loan in due course.
Of the Group's drawn debt as at 30 June 2026, 76.2% was either at fixed interest rates or was hedged. For most of its variable rate debt, the Group uses interest rate caps which run coterminous with the respective loan and protect the Group from significant increases in interest rates. During the period, we extended the current hedging profile by securing new interest rate caps at 3.0% on £350.0 million of debt for 25 months, replacing caps that expired in H1 2026, at a cost of £8.2 million. As a result, at 30 June 2026 the proportion of the Group's debt that was either at fixed rates or had interest rate caps in place was:
· 76.2% including the bridging facility (31 December 2025: 72.7%); and
· 87.7% excluding the acquisition facility (31 December 2025: 93.7%).
Debt maturity
At the period end, assuming we utilise all borrower extensions, the Group's debt had an average maturity of 4.0 years (31 December 2025: 4.3 years). Excluding the Santander facility, the average maturity was 4.4 years.
Loan to value (LTV)
The Group has a conservative leverage policy. At the period end, the LTV was 32.9% (31 December 2025: 33.2%), with the decrease primarily reflecting the £259.1 million of proceeds from our asset disposal programme, which exceeded capital expenditure of £81.2 million in the period. We are targeting disposals for the full year of up to £400 million, subject to market conditions.
Net debt and operating cash flow
Net debt at the period end was £2,518.5 million (31 December 2025: £2,616.7 million), comprising £2,661.5 million of gross debt less £120.2 million of available cash held (31 December 2025: £2,773.5 million gross debt, £130.6 million cash).
Net operating cash flow was £95.8 million for the six months (H1 2025: £100.0 million).
Equity issuance
The final consideration for the Blackstone portfolio we acquired in October 2025 was subject to customary post-completion adjustments under the sale and purchase agreements. Following finalisation of the adjustments, the Company issued a further 12,375,336 ordinary shares, which were admitted to trading on 8 May 2026.
Related party transaction
On 17 June 2026, we announced that the Company had entered into a DMA with the Manager to deliver the 125MW data centre scheme at Chelmsford. Consistent with the Manor Farm data centre scheme, the Manager will receive:
· a payment of £3.3 million in respect of project assembly services to date at Chelmsford;
· a development management fee of up to 5% of the development cost of the scheme, contingent upon receiving planning consent; and
· a profit share of 17.5% of the total development profits, contingent upon full delivery of a practically completed and let data centre. 50% of the Manager's profit share payment will be applied to the subscription or acquisition of shares in the Company.
Further information can be found in note 21 to the financial statements.
Guidance
The table below summarises our current guidance:
|
Aspect |
Guidance |
|
Portfolio rental reversion capture |
Potential opportunity to capture 72% within three years. |
|
|
|
|
DMA income |
Expected run rate of £3.0-5.0 million per annum in the medium term, with in-year guidance to be given where applicable |
|
|
|
|
Logistics development capex |
Target yield on cost: 6-8% FY26: £150-250 million. Longer term: £200-250 million. |
|
|
|
|
Data centre development capex |
Target yield on cost: 9-11% FY26: £50-100 million, revised down from £100-200 million per annum due to planning related delays at Manor Farm. Longer-term: Increased to £200-400 million per annum from £100-200 million reflecting enlarged pipeline. |
|
|
|
|
Asset disposals |
FY26: Up to £400 million of disposals, subject to market conditions Longer term: Up to £350 million per annum at 5-6% NIY |
|
|
|
|
LTV |
Below 35%. |
|
|
|
|
Capitalised interest |
FY26: Approximately £15-20 million, subject to data centre construction timing |
Going concern
We continue to have a healthy liquidity position, with strong levels of rent collection, a favourable debt maturity profile and debt costs which are substantially fixed or hedged.
The Directors have reviewed our current and projected financial position over a five-year period, making reasonable assumptions about our future trading performance. Various forms of sensitivity analysis have been performed, in particular regarding the financial performance of our clients and expectations over lease renewals. As at 30 June 2026, our property values would have to fall by approximately 50% before our loan covenants are breached at the corporate level.
At the period end, we had £417 million of undrawn commitments under our senior debt facilities and £120.2 million of cash. At the period end, the Group had borrowings of £255.6 million falling due within 12 months and capital commitments of £23.0 million under various development contracts (see note 20). Our loan to value ratio stood at 32.9%, with the debt portfolio having an average maturity term of approximately 4 years.
As at the date of approval of this report, we had substantial headroom within our financial loan covenants. Our financial covenants have been complied with for all loans throughout the period and up to the date of approval of these financial statements. As a result, the Directors have a reasonable expectation that the Company and the Group have adequate resources to continue in operational existence for the foreseeable future, which is considered to be to 5 August 2027.
Credit rating
The Group has an A3 long-term credit rating from Moody's Investor Services.
Change of auditor
As discussed in the Audit & Risk Committee report on page 101 of the 2025 Annual Report, the Group appointed Deloitte as its external auditor from the year ending 31 December 2026. Deloitte replaced BDO, which had conducted the audit since 2014 and had been reappointed in 2017 following a retender.
Alternative Investment Fund Manager (AIFM)
The Manager is authorised and regulated by the Financial Conduct Authority as a full-scope AIFM. The Manager is therefore authorised to provide services to the Group and the Group benefits from the rigorous reporting and ongoing compliance applicable to AIFMs in the UK.
As part of this regulatory process, Langham Hall UK Depositary LLP (Langham Hall) is responsible for cash monitoring, asset verification and oversight of the Company and the Manager. In performing its function, Langham Hall conducts a quarterly review during which it monitors and verifies all new acquisitions, share issues, loan facilities and other key events, together with shareholder distributions, the quarterly management accounts, bank reconciliations and the Company's general controls and processes. Langham Hall provides a written report of its findings to the Company and to the Manager, and to date it has not identified any issues. The Company therefore benefits from a continuous real-time audit check on its processes and controls.
Post balance sheet activity
In the period post the balance sheet date, the Group completed the sale of a £29.5 million investment asset and exchanged to sell £55.5 million of investment assets.
The Group also purchased a 50% interest in a joint venture for £24.3 million in relation to the Chelmsford data centre project.
Proposed Equity Issue to unlock next wave of data centre growth and returns
The Group today announces its intention to conduct a non-pre-emptive placing of new ordinary shares (the "Equity Issue") to raise approximately £350 million of gross proceeds (approximately 8% of current issued share capital). Full details of the proposed Equity Issue are contained in a separate announcement released by the Company.
The Equity Issue is intended to unlock the next wave of data centre growth and returns, The Company intends to use the net proceeds to advance its enlarged pipeline of data centre development opportunities including the early-stage and longer-term capex requirements of two additional data centre schemes totalling 235MW in the Greater London Availability Zones deliverable between 2030-2031. In addition, the proposed Equity Issue enhances the Group's financial flexibility complementing its disciplined approach to capital allocation. Completion of the proposed Equity Issue is subject to shareholder approval at a General Meeting to be held on 24 August 2026.
Key performance indicators
Our objective is to deliver attractive, low-risk returns to Shareholders, by executing the Group's Investment Policy and operational strategy. Set out below are the key performance indicators we use to track our progress. For a more detailed explanation of performance, please refer to the Manager's Report.
|
KPI |
Relevance to strategy |
Performance |
|
1. Total accounting return (TAR) |
TAR calculates the change in the EPRA net tangible assets (EPRA NTA) over the period plus dividends paid. It measures the ultimate outcome of our strategy, which is to deliver value to our shareholders through our portfolio and to deliver a secure and growing income stream. |
1.3% for the six months to 30 June 2026 (H1 2025: 3.6%, FY 2025: 5.5%) |
|
2. Dividend |
The dividend reflects our ability to deliver a low-risk but growing income stream from our portfolio and is a key element of our TAR. |
4.00p per share for the six months to 30 June 2026 (H1 2025: 3.83p, FY 2025: 8.00p) |
|
3. EPRA NTA per share1 |
The EPRA NTA reflects our ability to grow the portfolio and to add value to it throughout the lifecycle of our assets. |
185.9p at 30 June 2026 (30 June 2025: 188.17p, 31 December 2025: 187.76p). |
|
4. Loan to value ratio (LTV) |
The LTV measures the prudence of our financing strategy, balancing the potential amplification of returns and portfolio diversification that come with using debt against the need to successfully manage risk. |
32.9% at 30 June 2026 (30 June 2025: 30.9%, 31 December 2025: 33.2%). |
|
5. Adjusted earnings per share |
The Adjusted EPS reflects our ability to generate earnings from our portfolio, which ultimately underpins our dividend payments. |
4.41p per share for the six months to 30 June 2026 (H1 2025: 4.63p, FY 2025: 8.87p) 4.41p excluding all development management income (H1 2025: 4.12p, FY 2025: 8.22p). See note 1 within EPRA and other key performance indicators. |
|
6. Weighted average unexpired lease term (WAULT) |
The WAULT is a key measure of the quality of our portfolio. Long lease terms underpin the security of our income stream. |
9.9 years at 30 June 2026 (30 June 2025: 10.3 years, 31 December 2025: 9.6 years). |
|
7. Global Real Estate Sustainability Benchmark (GRESB) score |
The GRESB score reflects the sustainability of our assets and how well we are managing ESG risks and opportunities. Sustainable assets protect us against climate change and help our clients to operate efficiently. |
85/100 and 4 Green Star rating for 2025 (2024: 85/100, 4 Green Star rating) 99/100 and 5 Green Star rating for developments for 2025 (2024: 99/100 and 5 Green Star rating for developments) |
1 EPRA NTA is calculated in accordance with the Best Practices Recommendations of the European Public Real Estate Association (EPRA). We use these alternative metrics as they provide a transparent and consistent basis to enable comparison between European property companies.
EPRA performance indicators
The table below shows additional performance measures, calculated in accordance with the Best Practices Recommendations of the European Public Real Estate Association (EPRA). We provide these measures to aid comparison with other European real estate businesses.
For a full reconciliation of all EPRA performance indicators, please see Notes to the EPRA and other key performance indicators.
|
Measure and Definition |
Purpose |
Performance |
|
1. EPRA Earnings See note 8 |
A key measure of a group's underlying operating results and an indication of the extent to which current dividend payments are supported by earnings. |
£106.9 m / 3.95p per share (H1 2025: £112.4m / 4.53p per share, |
|
2. EPRA Net Tangible Assets See note 18 |
Assumes that entities buy and sell assets, thereby crystallising certain levels of unavoidable deferred tax. |
£5,045.6m / 185.9p per share as at 30 June 2026 (30 June 2025: £4,668.0m / 188.2p per share, |
|
3. EPRA Net Reinstatement Value (NRV) |
Assumes that entities never sell assets and aims to represent the value required to rebuild the entity. |
£5,566.4m / 205.6p per share as at 30 June 2026 (30 June 2025: £5,131.8m / 206.9p per share, |
|
4. EPRA Net Disposal Value (NDV) |
Represents the shareholders' value under a disposal scenario, where deferred tax, financial instruments and certain other adjustments are calculated to the full extent of their liability, net of any resulting tax. |
£5,194.0m / 191.3p per share as at 30 June 2026 (30 June 2025: £4,817.8m / 194.2p per share, |
|
5. EPRA Net Initial Yield (NIY) |
This measure should make it easier for investors to judge for themselves how the valuations of two portfolios compare. |
4.38% as at 30 June 2026 (30 June 2025: 4.44, 31 December 2025: 4.38%). |
|
6. EPRA 'Topped-Up' NIY |
This measure should make it easier for investors to judge for themselves how the valuations of two portfolios compare. |
4.70% as at 30 June 2026 (30 June 2025: 4.66%, 31 December 2025: 4.64%). |
|
7. EPRA Vacancy |
A "pure" (%) measure of investment property space that is vacant, based on ERV. |
6.48% as at 30 June 2026 (30 June 2025: 5.6%, 31 December 2025: 5.6%). |
|
8. EPRA Cost Ratio
|
A key measure to enable meaningful measurement of the changes in a group's operating costs. |
13.5% including vacancy costs (H1 2025: 13.8%, FY 2025: 13.7%). 12.2% excluding vacancy costs (H1 2025: 12.9 %, FY 2025: 12.4%). |
|
9. EPRA LTV |
A key shareholder-gearing metric to determine the percentage of debt comparing to the appraised value of the properties. |
34.0% as at 30 June 2026 (30 June 2025: 31.9%, 31 December 2025: 35.4%). |
Principal risks and uncertainties
The Audit & Risk Committee, which assists the Board with its responsibilities for managing risk, considers that while some risks may have increased and some risks reduced in the period, all principal risks and uncertainties presented on pages 67-70 of our 2025 Annual Report, dated 26 February 2026, remained valid during the period and we believe will continue to remain valid for the remainder of the year. These risks are summarised below.
In addition, the Audit & Risk Committee consider the development of existing and any new emerging risks that have the potential to impact the business in the future. During the period, amongst other things, key points for consideration included the Company's investment into data centres, the continued macroeconomic volatility within the UK and more widely and other technological based risks.
Property risks
· Client default: the risk of one or more of our clients defaulting
· Portfolio strategy and industry competition: the ability of the Company to execute its strategy and deliver performance
· Performance of the sectors clients operate in
· Execution of development business plan: there may be a higher degree of risk within our development portfolio
Financial risks
· Debt financing strategy - availability and cost of debt
Corporate risk
· We rely on the continuance of the External Manager
Taxation risk
· UK REIT status: any change to our tax status or in UK tax legislation could affect our ability to achieve our investment objectives and provide favourable returns to Shareholders
Other risks
· Macroeconomic volatility
· Physical and transition risks from climate change
Statement of directors' responsibilities
We confirm that to the best of our knowledge:
· the condensed set of financial statements has been prepared in accordance with the Disclosure Guidance and Transparency Rules of the Financial Services Authority, IAS 34 'Interim Financial Reporting',
· the interim management report includes a fair review of the information required by:
(a) DTR 4.2.7R of the Disclosure Guidance and Transparency Rules, being an indication of important events that have occurred during the first six months of the financial year and their impact on the condensed set of financial statements; and a description of the principal risks and uncertainties for the remaining six months of the year; and
(b) DTR 4.2.8R of the Disclosure Guidance and Transparency Rules, being related party transactions that have taken place in the first six months of the current financial year and that have materially affected the financial position or performance of the entity during that period; and any changes in the related party transactions described in the last annual report that could do so.
Shareholder information is as disclosed on the Tritax Big Box REIT plc website.
For and on behalf of the Board
Aubrey Adams OBE (Chairman)
5 August 2026
Independent review report to Tritax Big Box REIT plc
Conclusion
We have been engaged by the company to review the condensed set of financial statements in the half-yearly financial report for the six months ended 30 June 2026 which comprises the condensed group statement of comprehensive income, the condensed group statement of financial position, the condensed group statement of changes in equity, the condensed group cash flow statement and related notes 1 to 21.
Based on our review, nothing has come to our attention that causes us to believe that the condensed set of financial statements in the half-yearly financial report for the six months ended 30 June 2026 is not prepared, in all material respects, in accordance with United Kingdom adopted International Accounting Standard 34 and the Disclosure Guidance and Transparency Rules of the United Kingdom's Financial Conduct Authority.
Basis for conclusion
We conducted our review in accordance with International Standard on Review Engagements (UK) 2410 "Review of Interim Financial Information Performed by the Independent Auditor of the Entity" issued by the Financial Reporting Council for use in the United Kingdom (ISRE (UK) 2410). A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (UK) and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
As disclosed in note 1, the annual financial statements of the group are prepared in accordance with United Kingdom adopted international accounting standards. The condensed set of financial statements included in this half-yearly financial report has been prepared in accordance with United Kingdom adopted International Accounting Standard 34, "Interim Financial Reporting".
Conclusions relating to going concern
Based on our review procedures, which are less extensive than those performed in an audit as described in the Basis for Conclusion section of this report, nothing has come to our attention to suggest that the directors have inappropriately adopted the going concern basis of accounting or that the directors have identified material uncertainties relating to going concern that are not appropriately disclosed.
This Conclusion is based on the review procedures performed in accordance with ISRE (UK) 2410; however future events or conditions may cause the entity to cease to continue as a going concern.
Responsibilities of directors
The directors are responsible for preparing the half-yearly financial report in accordance with the Disclosure Guidance and Transparency Rules of the United Kingdom's Financial Conduct Authority.
In preparing the half-yearly financial report, the directors are responsible for assessing the group's ability to continue as a going concern, disclosing as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the review of the financial information
In reviewing the half-yearly financial report, we are responsible for expressing to the company a conclusion on the condensed set of financial statements in the half-yearly financial report. Our Conclusion, including our Conclusion Relating to Going Concern, are based on procedures that are less extensive than audit procedures, as described in the Basis for Conclusion paragraph of this report.
Use of our report
This report is made solely to the company in accordance with ISRE (UK) 2410. Our work has been undertaken so that we might state to the company those matters we are required to state to it in an independent review report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company, for our review work, for this report, or for the conclusions we have formed.
Deloitte LLP
Statutory Auditor
London, United Kingdom
5 August 2026
|
Condensed group statement of comprehensive income |
|
|||||
|
For the six months ended 30 June 2026 |
|
|||||
|
|
Note |
Six months ended |
Six months ended |
Year ended |
|
|
|
30 June 2026 |
30 June 2025 |
31 December 2025 |
|
|||
|
(unaudited) |
(unaudited) |
(audited) |
|
|||
|
£m |
£m |
£m |
|
|||
|
Gross rental income |
|
176.9 |
152.4 |
312.5 |
|
|
|
Service charge income |
|
9.8 |
7.8 |
15.2 |
|
|
|
Service charge expense |
|
(10.1) |
(9.1) |
(16.9) |
|
|
|
Direct property cost |
|
(3.3) |
(1.9) |
(5.5) |
|
|
|
Net rental income |
|
173.3 |
149.2 |
305.3 |
|
|
|
|
|
|
|
|
|
|
|
Gross other operating income |
4 |
- |
90.6 |
104.1 |
|
|
|
Other operating costs |
5 |
- |
(77.3) |
(88.6) |
|
|
|
Net other operating income |
|
- |
13.3 |
15.5 |
|
|
|
|
|
|
|
|
|
|
|
Administrative and other expenses |
|
(20.4) |
(18.4) |
(37.1) |
|
|
|
Exceptional items |
|
- |
- |
(2.1) |
|
|
|
Operating profit before changes in fair value and other adjustments1 |
|
152.9 |
144.1 |
281.6 |
|
|
|
|
|
|
|
|
|
|
|
Changes in fair value of investment properties |
|
(15.8) |
92.2 |
198.6 |
|
|
|
Loss on disposal of investment properties |
|
(3.0) |
(5.3) |
(11.5) |
|
|
|
Share of (loss)/profit from joint ventures |
|
0.3 |
0.1 |
0.1 |
|
|
|
Dividend Income |
|
- |
1.2 |
1.3 |
|
|
|
Fair value movements in financial asset |
|
0.4 |
(1.4) |
(1.5) |
|
|
|
Impairment of intangible, other property assets and equity accounted investments |
11 |
(10.6) |
(25.5) |
(29.1) |
|
|
|
Operating Profit |
|
124.2 |
205.4 |
439.5 |
|
|
|
|
|
|
|
|
|
|
|
Finance income |
|
2.6 |
4.5 |
8.1 |
|
|
|
Finance expense |
6 |
(48.6) |
(36.7) |
(77.0) |
|
|
|
Changes in fair value of interest rate derivatives |
|
(2.4) |
(4.9) |
(7.3) |
|
|
|
Profit before taxation |
|
75.8 |
168.3 |
363.3 |
|
|
|
|
|
|
|
|
|
|
|
Taxation |
7 |
- |
(1.5) |
- |
|
|
|
Profit and total comprehensive income |
|
75.8 |
166.8 |
363.3 |
|
|
|
|
|
|
|
|
|
|
|
Earnings per share - basic |
8 |
2.80p |
6.72p |
14.39p |
|
|
|
Earnings per share - diluted |
8 |
2.80p |
6.72p |
14.38p |
|
|
|
1 Operating profit before changes in fair value of investment properties, loss on disposal of investment properties, share of profit from joint ventures, dividend income, fair value movements in financial assets, Impairment of intangible, other property assets and equity accounted investments. |
|
|||||
|
|
||||||
|
|
||||||
|
Condensed group statement of financial position |
||||||||||
|
As at 30 June 2026 |
||||||||||
|
|
Note |
Six months ended |
Six months ended |
Year ended |
||||||
|
30 June 2026 |
30 June 2025 |
31 December 2025 |
||||||||
|
(unaudited) |
(unaudited) |
(audited) |
||||||||
|
£m |
£m |
£m |
||||||||
|
Non-current assets |
|
|
|
|
||||||
|
Investment property |
10 |
7,403.1 |
6,414.4 |
7,371.1 |
||||||
|
Investment in land options |
11 |
122.2 |
125.8 |
124.2 |
||||||
|
Investment in joint ventures |
|
20.0 |
25.1 |
25.2 |
||||||
|
Other property assets |
|
0.8 |
0.9 |
0.8 |
||||||
|
Intangible assets |
|
0.2 |
0.6 |
0.4 |
||||||
|
Financial assets |
|
2.4 |
1.8 |
2.4 |
||||||
|
Interest rate derivatives |
13 |
8.6 |
5.2 |
2.8 |
||||||
|
Trade and other receivables |
14 |
8.3 |
4.3 |
7.5 |
||||||
|
Total non-current assets |
|
7,565.6 |
6,578.1 |
7,534.4 |
||||||
|
Current assets |
|
|
|
|
||||||
|
Trade and other receivables |
14 |
56.4 |
88.5 |
27.9 |
||||||
|
Cash and cash equivalents |
15 |
115.0 |
53.1 |
109.5 |
||||||
|
Restricted cash |
15 |
5.2 |
13.8 |
21.1 |
||||||
|
Tax asset |
|
2.0 |
0.4 |
2.0 |
||||||
|
Total current assets |
|
178.6 |
155.8 |
160.5 |
||||||
|
Assets classified as held for sale |
12 |
117.5 |
253.4 |
350.9 |
||||||
|
Total assets |
|
7,861.7 |
6,987.3 |
8,045.8 |
||||||
|
Current liabilities |
|
|
|
|
||||||
|
Deferred rental income |
|
(63.8) |
(58.4) |
(68.1) |
||||||
|
Trade and other payables |
|
(122.8) |
(123.9) |
(171.7) |
||||||
|
Tax liabilities |
|
(2.0) |
(1.9) |
(2.0) |
||||||
|
Bank borrowings |
16 |
(187.4) |
- |
- |
||||||
|
Loan notes |
16 |
(65.6) |
- |
(65.6) |
||||||
|
Total current liabilities |
|
(441.6) |
(184.2) |
(307.4) |
||||||
|
Non-current liabilities |
|
|
|
|
||||||
|
Trade and other payables |
|
(8.3) |
(4.4) |
(7.5) |
||||||
|
Bank borrowings |
16 |
(1,184.6) |
(1,020.1) |
(1,480.1) |
||||||
|
Loan notes |
16 |
(1,188.9) |
(1,142.5) |
(1,188.2) |
||||||
|
Deferred Consideration |
|
- |
(3.6) |
(3.7) |
||||||
|
Total non-current liabilities |
|
(2,381.8) |
(2,170.6) |
(2,679.5) |
||||||
|
Total liabilities |
|
(2,823.4) |
(2,354.8) |
(2,986.9) |
||||||
|
Total net assets |
|
5,038.3 |
4,632.5 |
5,058.9 |
||||||
|
Equity |
|
|
|
|
||||||
|
Share capital |
17 |
27.1 |
24.8 |
27.0 |
||||||
|
Share premium reserve |
17 |
49.2 |
49.2 |
49.2 |
||||||
|
Capital reduction reserve |
17 |
972.9 |
1,187.3 |
1,088.1 |
||||||
|
Merger Reserve |
17 |
1,302.6 |
957.0 |
1,283.9 |
||||||
|
Retained earnings |
17 |
2,686.5 |
2,414.2 |
2,610.7 |
||||||
|
Total equity |
|
5,038.3 |
4,632.5 |
5,058.9 |
||||||
|
Net asset value per share - basic |
18 |
185.61p |
186.74p |
187.22p |
||||||
|
Net asset value per share - diluted |
18 |
185.61p |
186.74p |
187.09p |
||||||
|
EPRA Net Tangible Asset per share - basic |
18 |
185.88p |
188.17p |
187.76p |
||||||
|
EPRA Net Tangible Asset per share - diluted |
18 |
185.88p |
188.17p |
187.63p |
||||||
|
These financial statements were approved by the Board of Directors on 5 August 2026 and signed on its behalf by: |
||||||||||
|
Aubrey Adams, Chairman |
|
|
|
|
||||||
|
Condensed group statement of changes in equity |
||||||||||
|
For the six months ended 30 June 2026 |
||||||||||
|
|
|
|
|
|
|
|
|
|||
|
Six months ended 30 June 2026 (unaudited) |
Note |
Share capital |
Share premium |
Merger Reserve |
Capital reduction reserve |
Retained earnings |
Total |
|||
|
£m |
£m |
£m |
£m |
£m |
£m |
|||||
|
1 January 2026 |
|
27.0 |
49.2 |
1,283.9 |
1,088.1 |
2,610.7 |
5,058.9 |
|||
|
Profit for the period and total comprehensive income |
|
- |
- |
- |
- |
75.8 |
75.8 |
|||
|
|
|
27.0 |
49.2 |
1,283.9 |
1,088.1 |
2,686.5 |
5,134.7 |
|||
|
Contributions and distributions: |
|
|
|
|
|
|
|
|||
|
Share issue in relation to the asset acquisition |
|
0.1 |
- |
18.7 |
- |
- |
18.8 |
|||
|
Dividends paid |
9 |
- |
- |
- |
(115.2) |
- |
(115.2) |
|||
|
30 June 2026 |
|
27.1 |
49.2 |
1,302.6 |
972.9 |
2,686.5 |
5,038.3 |
|||
|
|
|
|
|
|
|
|
|
|||
|
Six months ended 30 June 2025 (unaudited) |
Note |
Share capital |
Share premium |
Merger Reserve |
Capital reduction reserve |
Retained earnings |
Total |
|||
|
£m |
£m |
£m |
£m |
£m |
£m |
|||||
|
1 January 2025 |
|
24.8 |
49.2 |
957.0 |
1,289.0 |
2,247.4 |
4,567.4 |
|||
|
Profit for the period and total comprehensive income |
|
- |
- |
- |
- |
166.8 |
166.8 |
|||
|
|
|
24.8 |
49.2 |
957.0 |
1,289.0 |
2,414.2 |
4,734.2 |
|||
|
Contributions and distributions: |
|
|
|
|
|
|
|
|||
|
Dividends paid |
9 |
- |
- |
- |
(101.7) |
- |
(101.7) |
|||
|
30 June 2025 |
|
24.8 |
49.2 |
957.0 |
1,187.3 |
2,414.2 |
4,632.5 |
|||
|
|
|
|
|
|
|
|
|
|||
|
Year ended 31 December 2025 (audited) |
Note |
Share capital |
Share premium |
Merger Reserve |
Capital reduction reserve |
Retained earnings |
Total |
|||
|
£m |
£m |
£m |
£m |
£m |
£m |
|||||
|
1 January 2025 |
|
24.8 |
49.2 |
957.0 |
1,289.0 |
2,247.4 |
4,567.4 |
|||
|
Profit for the year and total comprehensive income |
|
- |
- |
- |
- |
363.3 |
363.3 |
|||
|
|
|
24.8 |
49.2 |
957.0 |
1,289.0 |
2,610.7 |
4,930.7 |
|||
|
Contributions and distributions: |
|
|
|
|
|
|
|
|||
|
Share issue in relation to the asset acquisition |
|
2.2 |
- |
326.9 |
- |
- |
329.1 |
|||
|
Dividends paid |
9 |
- |
- |
- |
(200.9) |
- |
(200.9) |
|||
|
31 December 2025 |
|
27.0 |
49.2 |
1,283.9 |
1,088.1 |
2,610.7 |
5,058.9 |
|||
|
Condensed group cash flow statement |
||||||||||
|
For the six months ended 30 June 2026 |
||||||||||
|
|
Note |
Six months ended |
Six months ended |
Year ended |
||||||
|
30 June 2026 |
30 June 2025 |
31 December 2025 |
||||||||
|
(unaudited) |
(unaudited) |
(audited) |
||||||||
|
£m |
£m |
£m |
||||||||
|
Cash flows from operating activities |
|
|
|
|
||||||
|
Profits for the period (attributable to the shareholders) |
|
75.8 |
166.8 |
363.3 |
||||||
|
Finance income |
|
(2.6) |
(4.5) |
(8.1) |
||||||
|
Finance expense |
6 |
48.6 |
36.7 |
77.0 |
||||||
|
Changes in fair value of interest rate derivatives |
|
2.4 |
4.9 |
7.3 |
||||||
|
Impairment of intangible and other property assets |
|
10.6 |
25.5 |
29.1 |
||||||
|
Amortisation of intangible property assets |
|
- |
0.8 |
0.9 |
||||||
|
Movement on valuation of financial asset |
|
(0.4) |
1.4 |
1.5 |
||||||
|
Share of profit from joint ventures |
|
(0.3) |
(0.1) |
(0.1) |
||||||
|
Loss on disposal of investment properties |
|
3.0 |
5.3 |
11.5 |
||||||
|
Changes in fair value of investment properties |
|
15.8 |
(92.2) |
(198.6) |
||||||
|
Accretion of tenant lease incentive |
|
(4.7) |
(8.6) |
(12.2) |
||||||
|
(Increase)/decrease in trade and other receivables |
|
(26.9) |
(32.8) |
29.8 |
||||||
|
Decrease in deferred income |
|
(4.4) |
(1.8) |
(1.8) |
||||||
|
(Decrease)/increase in trade and other payables |
|
(21.1) |
(2.9) |
13.2 |
||||||
|
Cash generated from operations |
|
95.8 |
98.5 |
312.8 |
||||||
|
Taxation charge |
7 |
- |
1.5 |
- |
||||||
|
Net cash flow generated from operating activities |
|
95.8 |
100.0 |
312.8 |
||||||
|
Investing activities |
|
|
|
|
||||||
|
Additions to investment properties |
|
(84.1) |
(411.9) |
(1,168.6) |
||||||
|
Additions to land options |
|
(5.2) |
(5.5) |
(8.6) |
||||||
|
Net working capital acquired from acquisitions |
|
- |
- |
20.6 |
||||||
|
Additions to joint ventures |
|
2.4 |
(0.9) |
353.9 |
||||||
|
Net proceeds from disposal of investment properties |
|
274.1 |
218.2 |
1.9 |
||||||
|
Interest received |
|
0.7 |
1.0 |
1.5 |
||||||
|
Dividends received from joint ventures |
|
- |
- |
0.5 |
||||||
|
Net cash flow used in investing activities |
|
187.9 |
(199.1) |
(798.8) |
||||||
|
Financing activities |
|
|
|
|
||||||
|
Bank borrowings drawn |
16 |
160.0 |
498.0 |
1,310.0 |
||||||
|
Bank and other borrowings repaid |
16 |
(272.0) |
(289.0) |
(646.0) |
||||||
|
Issue of loan notes |
|
- |
- |
297.0 |
||||||
|
Early redemption of loan notes |
|
- |
- |
(181.9) |
||||||
|
Interest derivatives received |
|
2.6 |
3.9 |
6.7 |
||||||
|
Loan arrangement fees paid |
|
(0.5) |
(5.1) |
(8.4) |
||||||
|
Bank interest paid |
|
(45.5) |
(32.2) |
(60.2) |
||||||
|
Interest cap premium paid |
|
(8.2) |
(2.5) |
(2.5) |
||||||
|
Dividends paid to equity holders |
|
(114.6) |
(101.5) |
(199.8) |
||||||
|
Net cash flow (used in)/generated from financing activities |
|
(278.2) |
71.6 |
514.9 |
||||||
|
Net increase in cash and cash equivalents for the period |
|
5.5 |
(27.5) |
28.9 |
||||||
|
Cash and cash equivalents at start of period |
15 |
109.5 |
80.6 |
80.6 |
||||||
|
Cash and cash equivalents at end of period |
15 |
115.0 |
53.1 |
109.5 |
||||||
|
|
|
|
|
|
||||||
Notes to the consolidated accounts
1. Basis of preparation
These condensed consolidated interim financial statements for the six months to 30 June 2026 have been prepared in accordance with the Disclosure Guidance and Transparency Rules of the Financial Services Authority, IAS 34 'Interim financial reporting' and also in accordance with the measurement and recognition principles of UK adopted international accounting standards. They do not include all of the information required for full annual financial statements and should be read in conjunction with the 2025 Annual Report and Accounts, which were prepared in accordance with UK-adopted International Accounting Standards (IFRS).
The condensed consolidated financial statements for the six months ended 30 June 2026 have been reviewed by the Group's Auditor, Deloitte LLP, in accordance with International Standard on Review Engagements 2410, Review of Interim Financial Information Performed by the Independent Auditor of the Entity and were approved for issue on 5 August 2026. The condensed consolidated financial statements are unaudited and do not constitute statutory accounts for the purposes of the Companies Act 2006.
The comparative financial information presented herein for the year to 31 December 2025 does not constitute full statutory accounts within the meaning of Section 434 of the Companies Act 2006. The Group's Annual Report and accounts for the year to 31 December 2025 have been delivered to the Registrar of Companies. BDO LLP, who served as the Group's independent auditor in respect of those financial statements, issued an unqualified audit opinion, did not include references to any matters to which the auditors drew attention by way of emphasis without qualifying their report and did not contain a statement under section 498(2) or 498(3) of the Companies Act 2006.
1.1. Going concern
The Board has paid attention to the appropriateness of the going concern basis in preparing these financial statements. Any going concern assessment considers the Group's financial position, cash flows and liquidity, including its continued access to its debt facilities and its headroom under financial loan covenants.
The Directors have considered the cash flow forecasts for the Group for a period of at least twelve months from the date of approval of these condensed consolidated financial statements. These forecasts include the Directors' assessment of plausible downside scenarios. The Directors have reviewed the current and projected financial position of the Group, making reasonable assumptions about its future trading performance. Various forms of sensitivity analysis have been performed having a particular regard to the financial performance of its customers, track record of rental receipts, whilst taking into account any discussions held with the customer surrounding their future rental obligations. The analysis also included sensitising the impact of portfolio valuation movements through market volatility, rent collection and customer default. These scenarios all paid regard to the current economic environment.
The Group has a strong track record around rent collection with no history of significant levels of bad debt or arrears. Generally speaking, we have strong customers with robust balance sheets and strong cash flows. The Directors have also considered the arrears position in light of IFRS 9, expected credit loss model, see Note 14 for further details.
As at 30 June 2026, the Group had available liquidity of £532.1 million, comprising £417.0 million of undrawn commitments under its senior debt facilities and £115.1 million of cash and cash equivalents. At the period end, the Group had borrowings of £255.6 million falling due within 12 months and capital commitments of £23.0 million under various development contracts.
At 30 June 2026, the Group's loan to value ratio stood at 32.8%, with the debt portfolio having an average maturity term of approximately 4 years. As at the date of approval of this report, the Group has substantial headroom within its financial loan covenants. As at 30 June 2026 property values would have to fall by approximately 50% before loan covenants are breached.
The Group's financial covenants have been complied with for all loans throughout the period and up to the date of approval of these financial statements.
The Directors are therefore satisfied that the Group is in a position to continue in operation for at least twelve months from the date of approval of these condensed consolidated financial statements and consider it appropriate to adopt the going concern basis of accounting in preparing them. There is no material uncertainty relating to going concern.
2. Significant accounting judgements, estimates and assumptions
The condensed consolidated financial statements have been prepared on the basis of the accounting policies, significant judgements, estimates and key assumptions as set out in the notes to the Group's annual financial statements for the year ended 31 December 2025. No changes have been made to the Group's accounting policies as a result of the amendments and interpretations which became effective in the period as they do not have a material impact on the Group. Full details can be found in the Group's annual financial statements for the year ended 31 December 2025.
2.1 Estimates
Fair valuation of Investment property
The market value of Investment property is determined by an independent property valuation expert (see note 10) to be the estimated amount for which a property should exchange on the date of the valuation in an arm's-length transaction. Properties have been valued on an individual basis. The valuation expert uses recognised valuation techniques and the principles of both IAS 40 and IFRS 13.
The valuations have been prepared in accordance with the RICS Valuation - Global Standards January 2025 (the "Red Book"). Factors reflected comprise current market conditions including Net Initial Yield applied, annual rents and estimated rental values, lease lengths, location and building specification which would include climate-related considerations. The Net Initial Yield, being the most significant estimate, is subject to changes depending on the market conditions which are assessed on a periodic basis. The significant methods and assumptions used by the valuers in estimating the fair value of investment property, together with the sensitivity analysis on the most subjective inputs, are set out in note 10.
3. Summary of significant accounting policies
The accounting policies adopted in this report are consistent with those applied in the Group's consolidated financial statements for the year ended 31 December 2025 and are expected to be applied consistently during the year ending 31 December 2026.
3.1 New standard issued and effective from 1 January 2026
The following standard and amendment to existing standards has been applied in preparing the financial statements.
The following amendments are effective for the period beginning 1 January 2026:
· Amendments to IFRS 9 and IFRS 7: Classification and Measurement of Financial Instruments
· Annual Improvements to IFRS Accounting Standards - Volume 11
There was no material effect from the adoption of the above-mentioned amendments to IFRS effective in the period. They have no significant impact to the Group as they are either not relevant to the Group's activities or require accounting which is already consistent with the Group's current accounting policies.
4. Other operating income
|
|
Six months ended |
Six months ended |
Year ended |
|
30 June 2026 |
30 June 2025 |
31 December 2025 |
|
|
(unaudited) |
(unaudited) |
(audited) |
|
|
£m |
£m |
£m |
|
|
DMA Income |
- |
61.2 |
74.7 |
|
Sale of land |
- |
29.4 |
29.4 |
|
Other operating income |
- |
90.6 |
104.1 |
|
|
|
|
|
5. Other operating costs
|
|
Six months ended |
Six months ended |
Year ended |
|
30 June 2026 |
30 June 2025 |
31 December 2025 |
|
|
(unaudited) |
(unaudited) |
(audited) |
|
|
£m |
£m |
£m |
|
|
DMA expense |
- |
47.9 |
59.2 |
|
Cost of land |
- |
29.4 |
29.4 |
|
Other operating costs |
- |
77.3 |
88.6 |
6. Finance expense
|
|
Six months ended |
Six months ended |
Year ended |
|
30 June 2026 |
30 June 2025 |
31 December 2025 |
|
|
(unaudited) |
(unaudited) |
(audited) |
|
|
£m |
£m |
£m |
|
|
Interest payable on bank borrowings |
31.3 |
22.0 |
47.4 |
|
Interest payable on loan notes |
19.5 |
14.8 |
31.0 |
|
Commitment fees payable on bank borrowings |
1.1 |
1.1 |
4.4 |
|
Amortisation of loan arrangement fees |
2.4 |
2.2 |
2.5 |
|
Unwinding of deferred consideration |
0.2 |
0.3 |
0.4 |
|
Unwinding of discount on fixed rate debt |
3.0 |
3.0 |
6.1 |
|
|
57.5 |
43.4 |
91.8 |
|
Borrowing costs capitalised against development properties |
(8.9) |
(6.7) |
(14.8) |
|
Finance Expense |
48.6 |
36.7 |
77.0 |
7. Taxation
|
|
Six months ended |
Six months ended |
Year ended |
|
|
30 June 2026 |
30 June 2025 |
31 December 2025 |
|
|
(unaudited) |
(unaudited) |
(audited) |
|
|
£m |
£m |
£m |
|
Tax (charge)/credit |
- |
(1.5) |
- |
The UK corporation tax rate for the financial year is 25%.
Non‑taxable items include income and gains that are derived from the property rental business and are therefore exempt from UK corporation tax in accordance with Part 12 of CTA 2010.
REIT exempt income includes property rental income that is exempt from UK corporation tax in accordance with Part 12 of CTA 2010.
The tax charge in the prior period relates to the profit which is not exempt from UK corporation tax.
8. Earnings per share
Earnings per share (EPS) are calculated by dividing profit for the period attributable to ordinary equity holders of the Company by the weighted average number of Ordinary Shares in issue during the period. As there were dilutive instruments outstanding at 31 December 2025 basic and diluted earnings per share are shown below. There were no dilutive instruments outstanding as at 30 June 2025 or 30 June 2026 and therefore the basic and dilutive EPS metrics are the same.
The calculation of basic and diluted earnings per share is based on the following:
|
For the period ended 30 June 2026 (unaudited) |
Net profit attributable to Ordinary Shareholders |
Weighted average number of Ordinary Shares1 |
Earnings per share |
|
£m |
'000 |
pence |
|
|
EPS - basic and diluted |
75.8 |
2,705,814 |
2.80p |
|
Adjustments to remove: |
|
|
|
|
Changes in fair value of investment property |
15.8 |
|
|
|
Changes in fair value of interest rate derivatives |
2.4 |
|
|
|
Share of profit from joint ventures |
(0.3) |
|
|
|
Loss on disposal of investment properties |
3.0 |
|
|
|
Amortisation of other property assets |
- |
|
|
|
Changes in fair value of financial asset |
(0.4) |
|
|
|
Impairment of intangible contract and other property assets |
10.6 |
|
|
|
EPRA EPS1 - basic and diluted |
106.9 |
2,705,814 |
3.95p |
|
Adjustments to include: |
|
|
|
|
Fixed rental uplift adjustments |
0.7 |
|
|
|
Amortisation of loan arrangement fees and intangibles |
2.4 |
|
|
|
Unwinding of discount on fixed rate debt and deferred consideration |
3.2 |
|
|
|
Rent guarantees2 |
6.2 |
|
|
|
Adjusted EPS 1 - basic and diluted |
119.4 |
2,705,814 |
4.41p |
|
1 Based on the weighted average number of Ordinary Shares in issue throughout the period. |
|||
|
2 This is an adjust based on the £20 million rent guarantee and other guarantees given on the acquisition of the logistics portfolio in October 2025. |
|||
|
|
|
|
|
|
For the period ended 30 June 2025 (unaudited) |
Net profit attributable to Ordinary Shareholders |
Weighted average number of Ordinary Shares1 |
Earnings per share |
|
£m |
'000 |
pence |
|
|
EPS - basic and diluted |
166.8 |
2,480,677 |
6.72p |
|
Adjustments to remove: |
|
|
|
|
Changes in fair value of investment property |
(92.2) |
|
|
|
Changes in fair value of interest rate derivatives |
4.9 |
|
|
|
Share of profit from joint ventures |
(0.1) |
|
|
|
Loss on disposal of investment properties |
5.3 |
|
|
|
Amortisation of other property assets |
0.8 |
|
|
|
Changes in fair value of financial asset |
1.4 |
|
|
|
Impairment of intangible contract and other property assets |
25.5 |
|
|
|
EPRA EPS1 - basic and diluted |
112.4 |
2,480,677 |
4.53p |
|
Adjustments to include: |
|
|
|
|
Fixed rental uplift adjustments |
(3.0) |
|
|
|
Amortisation of loan arrangement fees and intangibles (see note 6) |
2.2 |
|
|
|
Unwinding of discount on fixed rate debt and deferred consideration |
3.3 |
|
|
|
Adjusted EPS1 - basic and diluted |
114.9 |
2,480,677 |
4.63p |
|
1 Based on the weighted average number of Ordinary Shares in issue throughout the period. |
|||
|
|
|
|
|
|
|
|
|
|
|
For the year ended 31 December 2025 |
Net profit attributable to Ordinary Shareholders |
Weighted average number of Ordinary Shares1 |
Earnings per share |
|
£m |
'000 |
pence |
|
|
Basic EPS |
363.3 |
2,523,753 |
14.39p |
|
Dilutive shares in respect of the deferred consideration to be issued in relation to the acquisition of the logistics portfolio from Blackstone. |
|
1,705 |
|
|
Diluted EPS |
363.3 |
2,525,458 |
14.38p |
|
Adjustments to remove: |
|
|
|
|
Changes in fair value of investment property |
(198.6) |
|
|
|
Changes in fair value of interest rate derivatives |
7.3 |
|
|
|
Share of profit from joint ventures |
(0.1) |
|
|
|
Loss on disposal of investment properties |
11.5 |
|
|
|
Amortisation of other property assets |
0.9 |
|
|
|
Changes in fair value of financial asset |
1.5 |
|
|
|
Gain on early redemption of bond |
(2.2) |
|
|
|
Impairment of intangible contract and other property assets |
29.1 |
|
|
|
Basic EPRA EPS 1 |
212.7 |
2,523,753 |
8.43p |
|
Dilutive shares in respect of the deferred consideration to be issued in relation to the acquisition of the logistics portfolio from Blackstone. |
|
1,705 |
|
|
Diluted EPRA EPS |
212.7 |
2,525,458 |
8.42p |
|
Adjustments to include: |
|
|
|
|
Fixed rental uplift adjustments |
(2.6) |
|
|
|
Amortisation of loan arrangement fees and intangibles |
4.3 |
|
|
|
Unwinding of discount on fixed rate debt and deferred consideration |
6.5 |
|
|
|
Exceptional items |
2.1 |
|
|
|
Rent guarantees |
0.8 |
|
|
|
Basic Adjusted EPS1 |
223.8 |
2,523,753 |
8.87p |
|
Dilutive shares in respect of the deferred consideration to be issued in relation to the acquisition of the logistics portfolio from Blackstone. |
|
1,705 |
|
|
Diluted Adjusted EPS |
223.8 |
2,525,458 |
8.86p |
|
1 Based on the weighted average number of Ordinary Shares in issue throughout the year. |
|||
Adjusted earnings is a performance measure used by the Board to assess the Group's dividend payments. The metric reduces EPRA earnings by other non-cash items credited or charged to the Group Statement of Comprehensive Income, such as fixed rental uplift adjustments and amortisation of loan arrangement fees.
Fixed rental uplift adjustments relate to adjustments to net rental income on leases with fixed or minimum uplifts embedded within their review profiles. The total minimum income recognised over the lease term is recognised on a straight-line basis and therefore not fully supported by cash flows during the early term of the lease, but this reverses towards the end of the lease.
9. Dividends paid
|
|
Six months ended |
Six months ended |
Year ended |
|
30 June 2026 |
30 June 2025 |
31 December 2025 |
|
|
(unaudited) |
(unaudited) |
(audited) |
|
|
£m |
£m |
£m |
|
|
Fourth interim dividend in respect of period ended 31 December 2024 at 2.185 pence per Ordinary Share |
- |
54.2 |
54.2 |
|
First interim dividend in respect of year ended 31 December 2025 at 1.915 pence per Ordinary Share |
- |
47.5 |
47.5 |
|
Second interim dividend in respect of year ended 31 December 2025 at 1.915 pence per Ordinary Share |
- |
- |
47.5 |
|
Third interim dividend in respect of year ended 31 December 2025 at 1.915 pence per Ordinary Share |
- |
- |
51.7 |
|
Fourth interim dividend in respect of period ended 31 December 2025 at 2.255 pence per Ordinary Share |
60.9 |
- |
- |
|
First interim dividend in respect of year ended 31 December 2026 at 2.000 pence per Ordinary Share |
54.3 |
- |
- |
|
Total dividends paid |
115.2 |
101.7 |
200.9 |
|
Total dividends paid for the period (pence per share) |
2.000 |
1.915 |
5.745 |
|
Total dividends unpaid but declared for the period (pence per share) |
2.000 |
1.915 |
2.255 |
|
Total dividends declared for the period (pence per share) |
4.00 |
3.83 |
8.00 |
On 5 August 2026, the Company approved the declaration of the second interim dividend in respect of the year ended 31 December 2026 of 2.00 pence per share payable on 4 September 2026. In relation to the total dividends declared for the period of 4.00 pence, 4.00 pence is a property income distribution (PID).
10. Investment property
In accordance with IAS 40, investment property is stated at fair value as at 30 June 2026. The investment property has been independently valued by CBRE Limited ("CBRE"), Jones Lang LaSalle Limited ("JLL") and Colliers International Valuation UK LLP ("Colliers"), who are accredited independent valuers with recognised and relevant professional qualifications and with recent experience in the locations and categories of the investment properties being valued. CBRE and JLL value all investment property with leases attached or assets under construction. Colliers values all land holdings and land options. The valuations have been prepared in accordance with the RICS Valuation - Global Standards January 2025 (the "Red Book") and incorporate the recommendations of the International Valuation Standards and the RICS Valuation - Professional Standards UK January 2024 which are consistent with the principles set out in IFRS 13.
The valuers, in forming their opinion, make a series of assumptions, which are market related, such as Net Initial Yields and expected rental values, which are based on the valuer's professional judgement. The valuers have sufficient current local and national knowledge of the particular property markets involved and has the skills and understanding to undertake the valuations competently. The valuations consider a range of factors including the macro-economic environment, availability of debt finance and physical and transition risks relating to climate change.
The valuers of the Group's property portfolio have a working knowledge of the various ways that sustainability and environmental, social and governance factors can impact value and have considered these, and how market participants are reflecting these in their pricing, in arriving at their Opinion of Value and resulting valuations as at the date of the statement of financial position. Currently, assets with the highest standards of ESG are commanding higher rental levels, have lower future capital expenditure requirements, and are transacting at lower yields.
The valuations are the ultimate responsibility of the Directors. Accordingly, the critical assumptions used in establishing the independent valuation are reviewed by the Board.
All corporate acquisitions during the prior period have been treated as asset purchases rather than business combinations because they are considered to be acquisitions of properties rather than businesses.
|
|
|
Investment property freehold |
Investment property long leasehold |
Investment property under construction |
Total |
|
(unaudited) |
|
£m |
£m |
£m |
£m |
|
As at 1 January 2026 |
5,902.8 |
836.4 |
631.9 |
7,371.1 |
|
|
Property additions |
13.3 |
0.5 |
46.9 |
60.7 |
|
|
Fixed rental uplift and tenant lease incentives |
8.6 |
6.2 |
0.5 |
15.3 |
|
|
Disposals |
|
(11.4) |
- |
(15.4) |
(26.8) |
|
Transfer of completed property to investment property |
144.1 |
- |
(144.1) |
- |
|
|
Change in fair value during the period |
(32.4) |
(3.3) |
18.5 |
(17.2) |
|
|
As at 30 June 2026 |
|
6,025.0 |
839.8 |
538.3 |
7,403.1 |
|
|
|
|
|
|
|
|
|
|
Investment property freehold |
Investment property long leasehold |
Investment property under construction |
Total |
|
(unaudited) |
|
£m |
£m |
£m |
£m |
|
As at 1 January 2025 |
5,001.5 |
662.1 |
265.8 |
5,929.4 |
|
|
Property additions |
96.4 |
0.1 |
326.5 |
423.0 |
|
|
Fixed rental uplift and tenant lease incentives |
14.7 |
0.6 |
- |
15.3 |
|
|
Disposals |
(9.9) |
- |
- |
(9.9) |
|
|
Transfer of completed property to investment property |
59.8 |
- |
(59.8) |
- |
|
|
Transfer from land options |
- |
- |
3.4 |
3.4 |
|
|
Assets transferred to held for sale |
(33.4) |
(5.0) |
- |
(38.4) |
|
|
Change in fair value during the period |
37.5 |
6.4 |
47.7 |
91.6 |
|
|
As at 30 June 2025 |
|
5,166.6 |
664.2 |
583.6 |
6,414.4 |
|
|
|
|
|
|
|
|
|
|
Investment property freehold |
Investment property long leasehold |
Investment property under construction |
Total |
|
|
|
£m |
£m |
£m |
£m |
|
As at 1 January 2025 |
|
5,001.5 |
662.1 |
265.8 |
5,929.4 |
|
Property additions 1 |
897.0 |
167.5 |
446.2 |
1,510.7 |
|
|
Fixed rental uplift and tenant lease incentives |
18.0 |
0.9 |
- |
18.9 |
|
|
Disposals |
(39.0) |
- |
(21.3) |
(60.3) |
|
|
Transfer of completed property to investment property |
195.5 |
- |
(195.5) |
- |
|
|
Transfer from land options |
- |
- |
4.7 |
4.7 |
|
|
Transfer to assets held for sale |
(234.5) |
(5.0) |
- |
(239.5) |
|
|
Change in fair value during the year |
64.3 |
10.9 |
132.0 |
207.2 |
|
|
As at 31 December 2025 |
|
5,902.8 |
836.4 |
631.9 |
7,371.1 |
1 Acquisitions include the logistics portfolio acquired from Blackstone at a valuation of £1,000.9 million less a price discount on acquisition of £11.0 million and other asset acquisitions £75 million.
|
|
|
|
|
|
|
|
|
30 June 2026 |
30 June 2025 |
31 December 2025 |
||
|
|
£m |
£m |
£m |
||
|
Investment property at fair value per Group Statement of Financial Position |
7,403.1 |
6,414.4 |
7,371.1 |
||
|
Assets held for sale at fair value |
117.5 |
253.4 |
350.9 |
||
|
Total investment property valuation |
7,520.6 |
6,667.8 |
7,722.0 |
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
30 June 2026 |
30 June 2025 |
31 December 2025 |
|
|
£m |
£m |
£m |
||
|
Total investment property valuation (including assets held for sale) |
7,520.6 |
6,667.8 |
7,722.0 |
||
|
Rental reversion bridge |
14.7 |
- |
20.0 |
||
|
Total external valuation of investment properties |
7,535.3 |
6,667.8 |
7,742.0 |
||
The Group has other capital commitments which represent commitments made in respect of direct construction, asset management initiatives and development land (refer to note 20).
Fees payable under the DMA totalling £1.1 million (31 December 2025: £3.4 million and June 2025: £0.5 million) have been capitalised in the period being directly attributable to the ongoing development projects.
Valuation risk
There is risk to the fair value of real estate assets that are part of the portfolio of the Group, comprising variation in the yields that the market attributes to the real estate investments and the market income that may be earned.
Real estate investments can be impacted adversely by external factors such as the general economic climate, supply and demand dynamics in the market, competition for buildings and environmental factors which could lead to an increase in operating costs.
Besides asset specific characteristics, general market circumstances affect the value and income from investment properties such as the cost of regulatory requirements related to investment properties, interest rate levels, the availability of financing and ESG scores.
The Manager of the Group has implemented a portfolio strategy with the aim to mitigate the above stated real estate risk. By diversifying in regions, risk categories and tenants, it is expected to lower the risk profile of the portfolio.
Fair value hierarchy
The Group considers that all of its investment properties fall within Level 3 of the fair value hierarchy as defined by IFRS 13. There have been no transfers between Level 1 and Level 2 during any of the periods, nor have there been any transfers between Level 2 and Level 3 during any of the periods.
The valuations have been prepared on the basis of Market Value (MV), which is defined in the RICS Valuation Standards, as:
"The estimated amount for which a property should exchange on the date of valuation between a willing buyer and a willing seller in an arm's‑length transaction after proper marketing wherein the parties had each acted knowledgeably, prudently and without compulsion."
MV as defined in the RICS Valuation Standards is the equivalent of fair value under IFRS.
The following descriptions and definitions relating to valuation techniques and key unobservable inputs made in determining fair values are as follows:
The key unobservable inputs made in determining fair values are as follows:
Unobservable input: availability of power premium
Power availability premium reflects the estimated added value due to immediate or scalable access to high-capacity power and infrastructure readiness. Market demand assumptions consider projected interest from market participants, scarcity of comparable sites, and pricing in the relevant region.
Unobservable input: estimated rental value (ERV)
The rent per square foot at which space could be let in the market conditions prevailing at the date of valuation.
Passing rents are dependent upon a number of variables in relation to the Group's property. These include: size, location, tenant covenant strength and terms of the lease.
Unobservable input: net initial yield
The net initial yield is defined as the initial gross income as a percentage of the market value (or purchase price as appropriate) plus standard costs of purchase.
|
30 June 2026 |
|
Unobservable Inputs |
|
|||||||
|
|
Market Value |
ERV range |
ERV Average |
Net initial yield |
Net initial yield |
|
||||
|
Industrials |
% |
£ psf |
£ psf |
range% |
average% |
|
||||
|
South East |
36.7% |
£7.15 - £20.83 |
£12.74 |
3.73% - 6.00% |
4.70% |
|
||||
|
South West |
3.4% |
£8.00 - £13.71 |
£9.51 |
4.92% - 5.46% |
5.16% |
|
||||
|
East Midlands |
13.2% |
£3.18 - £9.76 |
£8.46 |
3.58% - 5.84% |
4.82% |
|
||||
|
West Midlands |
23.3% |
£7.25 - £12.00 |
£9.28 |
3.70% - 6.32% |
4.96% |
|
||||
|
North East |
12.9% |
£4.90 - £10.16 |
£6.78 |
4.23% - 5.74% |
4.90% |
|
||||
|
North West |
8.9% |
£5.75 - £12.38 |
£9.53 |
3.84% - 5.68% |
4.97% |
|
||||
|
Scotland |
1.6% |
£6.50 - £6.50 |
£6.50 |
5.50% - 5.94% |
5.71% |
|
||||
|
|
|
|
|
|
|
|
||||
|
30 June 2026 |
|
Unobservable Inputs |
|
|||||||
|
|
|
ERV range |
ERV Average |
Net initial yield |
Net initial yield |
|
||||
|
Non-strategic |
|
£ psf |
£ psf |
range% |
average% |
|
||||
|
Office |
|
£25.00 - £25.00 |
£25.00 |
6.07% - 6.07% |
6.07% |
|
||||
|
Alternative |
|
£14.54 - £44.20 |
£25.33 |
5.70% - 11.13% |
7.58% |
|
||||
|
|
|
|
|
|
|
|
||||
|
30 June 2025
|
|
Unobservable Inputs |
|
|||||||
|
|
Market Value |
ERV range |
ERV Average |
Net initial yield |
Net initial yield |
|
||||
|
Industrials |
% |
£ psf |
£ psf |
range% |
average% |
|
||||
|
South East |
35.3% |
£6.25 - £19.00 |
£11.63 |
3.99% - 5.94% |
4.50% |
|
||||
|
South West |
3.1% |
£7.50 - £12.11 |
£8.71 |
3.89% - 5.41% |
4.98% |
|
||||
|
East Midlands |
14.6% |
£3.18 - £9.25 |
£8.07 |
3.55% - 5.80% |
4.60% |
|
||||
|
West Midlands |
22.5% |
£7.32 - £10.62 |
£8.94 |
3.72% - 6.43% |
4.76% |
|
||||
|
North East |
14.4% |
£4.90 - £8.45 |
£6.62 |
4.23% - 5.65% |
4.83% |
|
||||
|
North West |
8.4% |
£5.25 - £11.62 |
£8.71 |
4.07% - 5.77% |
5.06% |
|
||||
|
Scotland |
1.7% |
£5.03 - £7.13 |
£6.14 |
5.50% - 8.63% |
6.53% |
|
||||
|
|
|
|
|
|
|
|
||||
|
30 June 2025 |
|
Unobservable Inputs |
|
|||||||
|
|
|
ERV range |
ERV Average |
Net initial yield |
Net initial yield |
|
||||
|
Non-strategic |
|
£ psf |
£ psf |
range% |
average% |
|
||||
|
Office |
|
£22.38 - £39.18 |
£30.40 |
6.72% - 30.58% |
11.49% |
|
||||
|
Alternative |
|
£14.50 - £44.20 |
£24.38 |
4.84% - 14.46% |
6.79% |
|
||||
|
|
|
|
|
|
|
|
||||
|
31 December 2025 |
|
Unobservable Inputs |
|
|||||||
|
|
Market Value |
ERV range |
ERV Average |
Net initial yield |
Net initial yield |
|
||||
|
Industrials |
% |
£ psf |
£ psf |
range% |
average% |
|
||||
|
South East |
35.6% |
£6.50 - £23.36 |
£12.53 |
3.75% - 5.75% |
4.54% |
|
||||
|
South West |
3.4% |
£8.00 - £13.99 |
£9.36 |
3.83% - 5.16% |
4.82% |
|
||||
|
East Midlands |
13.9% |
£3.18 - £9.76 |
£8.18 |
3.53% - 6.06% |
4.83% |
|
||||
|
West Midlands |
23.9% |
£7.25 - £12.00 |
£9.14 |
3.70% - 6.61% |
4.90% |
|
||||
|
North East |
12.7% |
£4.90 - £9.76 |
£6.65 |
4.28% - 5.50% |
4.90% |
|
||||
|
North West |
8.7% |
£5.75 - £12.11 |
£9.20 |
3.90% - 5.56% |
4.98% |
|
||||
|
Scotland |
1.8% |
£6.50 - £6.50 |
£6.50 |
5.50% - 5.95% |
5.71% |
|
||||
|
|
|
|
|
|
|
|
||||
|
31 December 2025 |
|
|
|
|
|
|
||||
|
|
|
ERV range |
ERV average |
Net Initial Yield |
Net initial yield |
|
||||
|
Non-strategic |
|
£ psf |
£ psf |
range% |
average% |
|
||||
|
Office |
|
£25.00 - £38.95 |
£31.60 |
6.16% - 20.79% |
9.38% |
|
||||
|
Alternative |
|
£14.55 - £44.20 |
£25.95 |
5.35% - 12.10% |
7.62% |
|
||||
|
|
|
|
|
|
||||||
|
|
-5% in passing rent |
+5% in passing rent |
+0.25% Net Initial yield |
-0.25% Net Initial Yield |
||||||
|
|
£m |
£m |
£m |
£m |
||||||
|
(Decrease)/increase in the fair value of investment properties as at 30 June 2026 |
(343.2) |
343.2 |
(353.3) |
393.9 |
||||||
|
(Decrease)/increase in the fair value of investment properties as at 30 June 2025 |
(291.5) |
291.5 |
(297.7) |
331.5 |
||||||
|
(Decrease)/increase in the fair value of investment properties as at 31 December 2025 |
(337.0) |
337.0 |
(346.7) |
386.4 |
||||||
11. Investment in land options
|
|
Six months ended |
Six months ended |
Year ended |
|
30 June 2026 |
30 June 2025 |
31 December 2025 |
|
|
(unaudited) |
(unaudited) |
(audited) |
|
|
£m |
£m |
£m |
|
|
Opening balance |
124.2 |
148.8 |
148.8 |
|
Costs capitalised in the period |
5.2 |
5.5 |
8.6 |
|
Transferred to investment property |
- |
(3.4) |
(4.7) |
|
Impairment1 |
(7.2) |
(25.1) |
(28.5) |
|
Closing balance |
122.2 |
125.8 |
124.2 |
1During the period, the Group recognised an impairment charge in respect of a development scheme following a reduction in the external valuation. The decrease in value reflects increased uncertainty surrounding the timing, delivery and expected economic returns of the scheme. Following the impairment, the carrying value of the asset is aligned with its estimated fair value.
12. Assets Held for Sale
|
|
Industrial |
Land |
Non-strategic |
Total |
|
|
£m |
£m |
£m |
£m |
|
As at 1 January 2026 |
201.1 |
- |
149.8 |
350.9 |
|
Disposals |
(202.6) |
- |
(33.8) |
(236.4) |
|
Assets held for sale additions |
1.5 |
- |
0.1 |
1.6 |
|
FV adjustment |
- |
- |
1.4 |
1.4 |
|
As at 30 June 2026 |
- |
- |
117.5 |
117.5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Industrial |
Land |
Non-strategic |
Total |
|
|
£m |
£m |
£m |
£m |
|
As at 1 January 2025 |
79.0 |
29.4 |
332.0 |
440.4 |
|
Disposals |
(79.0) |
(29.4) |
(120.2) |
(228.6) |
|
Assets held for sale additions |
- |
- |
2.6 |
2.6 |
|
Transferred from investment property |
- |
- |
38.4 |
38.4 |
|
FV adjustment |
- |
- |
0.6 |
0.6 |
|
As at 30 June 2025 |
- |
- |
253.4 |
253.4 |
|
|
|
|
|
|
|
|
Industrial |
Land |
Non-strategic |
Total |
|
|
£m |
£m |
£m |
£m |
|
As at 1 January 2025 |
79.0 |
29.4 |
332.0 |
440.4 |
|
Disposals |
(79.0) |
(29.4) |
(217.8) |
(326.2) |
|
Assets held for sale additions |
- |
- |
5.8 |
5.8 |
|
Transferred from investment property |
201.1 |
- |
38.4 |
239.5 |
|
FV adjustment |
- |
- |
(8.6) |
(8.6) |
|
As at 31 December 2025 |
201.1 |
- |
149.8 |
350.9 |
Please refer to note 10 details into the inputs and assumptions used in determining the fair value of these assets as at 30 June 2026.
13. Interest rate derivatives
To mitigate the interest rate risk that arises as a result of entering into variable rate loans, the Group has entered into a number of interest rate derivatives. The fair value of Group's interest rate derivatives is recorded in the Group Statement of Financial Position and is determined by forming an expectation that interest rates will exceed strike rates and discounting these future cash flows at the prevailing market rates as at the year end. This valuation technique falls within Level 2 of the fair value hierarchy as defined by IFRS 13. There have been no transfers between Level 1 and Level 2 during any of the years, nor have there been any transfers between Level 2 and Level 3 during any of the years.
14. Trade and other receivables
|
Non-current trade and other receivables |
Six months ended |
Six months ended |
Year ended |
|
30 June 2026 |
30 June 2025 |
31 December 2025 |
|
|
(unaudited) |
(unaudited) |
(audited) |
|
|
£m |
£m |
£m |
|
|
Cash in public institutions |
8.3 |
4.3 |
7.5 |
|
The cash in public institutions is a deposit of £8.3 million paid by certain tenants to the Company, as part of their lease agreements.
|
|||
|
|
Six months ended |
Six months ended |
Year ended |
|
30 June 2026 |
30 June 2025 |
31 December 2025 |
|
|
(unaudited) |
(unaudited) |
(audited) |
|
|
£m |
£m |
£m |
|
|
Trade receivables |
43.1 |
67.0 |
18.1 |
|
Prepayments, accrued income and other receivables |
13.3 |
13.6 |
9.8 |
|
VAT |
- |
7.9 |
- |
|
|
56.4 |
88.5 |
27.9 |
The carrying value of trade and other receivables classified at amortised cost approximates fair value. The increase in trade receivables in the period was the increase in tenant receivables.
The Group applies the IFRS 9 simplified approach to measuring expected credit losses using a lifetime expected credit loss provision for trade receivables. To measure expected credit losses on a collective basis, trade receivables are grouped based on similar credit risk and ageing.
The expected loss rates are based on the Group's historical credit losses experienced over the three‑year period prior to the period end. The historical loss rates are then adjusted for current and forward-looking information on macroeconomic factors affecting the Group's Customers. The expected credit loss provision for June 2026 was £0.5 million (June 2025: £0.5 million and December 2025: £0.6 million). No reasonable changes in the assumptions underpinning the expected credit loss provision would give rise to a material expected credit loss.
15. Cash held at bank
|
|
Six months ended |
Six months ended |
Year ended |
|
30 June 2026 |
30 June 2025 |
31 December 2025 |
|
|
(unaudited) |
(unaudited) |
(audited) |
|
|
£m |
£m |
£m |
|
|
Cash and cash equivalents |
115.0 |
53.1 |
109.5 |
|
Restricted cash |
5.2 |
13.8 |
21.1 |
|
Total cash held at bank |
120.2 |
66.9 |
130.6 |
Included in cash and cash equivalents is cash where there is a legal restriction to specify its type of use, i.e cash received from the sale of a secured asset.
16. Borrowings
The Group has a £400 million and £500 million unsecured revolving credit facility (RCF) which provides the Group with a significant level of operational flexibility. Both facilities are provided by a syndicate of relationship lenders formed of large multi-national banks.
During the year, the Group extended the maturity of its £400 million RCF by one year from 17 June 2030 to 17 June 2031 and its £150 million term facility by one year from 18 October 2027 to 18 October 2028. These extensions were not considered a substantial modification as there were no significant changes to the loan's terms and conditions.
As at 30 June 2026, 59.0% (December 2025: 55.0% and June 2025: 68.6%), of the Group's drawn debt is fixed term, with 41.0% floating term (December 2025: 45.0% and June 2025: 31.4%). When including interest rate hedging the Group has fixed term or hedged facilities totaling 76% of drawn debt for 30 June 2026 (December 2025: 73% and June 2025: 87%).
As at 30 June 2026, the weighted average cost of debt was 3.60% (December 2025: 3.58% and June 2025: 3.21%). As at the same date the Group had undrawn debt commitments of £417 million (and 31 December 2025: £577 million and 30 June 2025: £410 million).
The Group has been in compliance with all of the financial covenants of the Group's bank facilities as applicable throughout the period covered by these financial statements.
A large part of the Group's borrowings are unsecured financing arrangements. A summary of the drawn and undrawn bank borrowings in the period is shown below:
|
|
30 June 2026 |
30 June 2025 |
31 December 2025 |
|||
|
|
(unaudited) |
(unaudited) |
(audited) |
|||
|
|
£m |
£m |
£m |
|||
|
At the beginning of the period |
1,507.9 |
843.9 |
843.9 |
|||
|
Bank borrowings drawn in the period under existing facilities |
160.0 |
335.0 |
480.0 |
|||
|
Bank borrowings repaid in the period under existing facilities |
(272.0) |
(126.0) |
(383.0) |
|||
|
Cancellation of bank borrowing facility on refinancing |
- |
(338.0) |
(263.0) |
|||
|
New bank borrowing facility from refinancing |
- |
338.0 |
830.0 |
|||
|
Total bank borrowings drawn |
1,395.9 |
1,052.9 |
1,507.9 |
|||
|
|
|
|
|
|
|
|
Any associated fees in arranging the bank borrowings and loan notes that are unamortised as at the period end are offset against amounts drawn on the facilities as shown in the table below:
|
|
30 June 2026 |
30 June 2025 |
31 December 2025 |
|||||
|
(unaudited) |
(unaudited) |
(audited) |
||||||
|
£m |
£m |
£m |
||||||
|
Bank borrowings drawn: due in less than one year |
190.0 |
- |
|
- |
||||
|
Less: unamortised costs on bank borrowings |
(0.1) |
- |
|
- |
||||
|
Fair value gain on UKCM borrowings on acquisition |
(2.5) |
- |
|
- |
||||
|
|
187.4 |
- |
|
- |
||||
|
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
||
|
|
30 June 2026 |
30 June 2025 |
31 December 2025 |
|||||
|
(unaudited) |
(unaudited) |
(audited) |
||||||
|
£m |
£m |
£m |
||||||
|
Bank borrowings drawn: due in more than one year |
1,205.9 |
1,052.9 |
|
1,507.9 |
||||
|
Less: unamortised costs on bank borrowings |
(7.3) |
(10.3) |
|
(8.3) |
||||
|
Fair value gain on UKCM borrowings on acquisition |
(14.0) |
(22.5) |
|
(19.5) |
||||
|
|
1,184.6 |
1,020.1 |
|
1,480.1 |
||||
|
|
|
|
|
|
|
|
||
|
|
|
|
||||||
|
Current bonds |
30 June 2026 |
30 June 2025 |
31 December 2025 |
|||||
|
(unaudited) |
(unaudited) |
(audited) |
||||||
|
£m |
£m |
£m |
||||||
|
2.625% Bonds 2026 |
65.6 |
- |
|
65.6 |
||||
|
Total net current bonds |
65.6 |
- |
|
65.6 |
||||
|
|
|
|
|
|
|
|
||
|
Bonds |
30 June 2026 |
30 June 2025 |
31 December 2025 |
|||||
|
(unaudited) |
(unaudited) |
(audited) |
||||||
|
£m |
£m |
£m |
||||||
|
2.625% Bonds 2026 |
- |
249.8 |
|
- |
||||
|
3.125% Bonds 2031 |
248.6 |
248.4 |
|
248.5 |
||||
|
4.750% Bonds 2032 |
|
297.3 |
|
- |
|
297.1 |
||
|
2.860% USPP 2028 |
250.0 |
250.0 |
|
247.7 |
||||
|
2.980% USPP 2030 |
150.0 |
150.0 |
|
250.0 |
||||
|
1.500% Green Bonds 2033 |
247.8 |
247.5 |
|
150.0 |
||||
|
Less: unamortised costs on loan notes |
(4.8) |
(3.2) |
|
(5.1) |
||||
|
|
1,188.9 |
1,142.5 |
|
1,188.2 |
||||
|
The weighted average term to maturity of the Group's debt as at the period end is 4.0 years (31 December 2025: 4.3 years). |
||||||||
|
|
30 June 2026 |
30 June 2025 |
31 December 2025 |
|||||
|
(unaudited) |
(unaudited) |
(audited) |
||||||
|
£m |
£m |
£m |
||||||
|
Repayable less than one year |
255.6 |
- |
|
65.6 |
||||
|
Repayable between one and two years |
600.0 |
440.0 |
|
340.0 |
||||
|
Repayable between two and five years |
1,005.9 |
1,162.9 |
|
1,467.9 |
||||
|
Repayable in over five years |
800.0 |
600 |
|
900.0 |
||||
|
|
2,661.5 |
2,202.9 |
|
2,773.5 |
||||
Set out below is a comparison by class of the carrying amounts and the fair value of the Group's financial instruments that are carried in the financial statements:
|
|
Book value |
Fair value |
Book value |
Fair value |
Book value |
Fair value |
|
30 June 2026 |
30 June 2026 |
30 June 2025 |
30 June 2025 |
31 December 2025 |
31 December 2025 |
|
|
(unaudited) |
(unaudited) |
(unaudited) |
(unaudited) |
(audited) |
(audited) |
|
|
£m |
£m |
£m |
£m |
£m |
£m |
|
|
Financial assets |
|
|
|
|
|
|
|
Interest rate derivatives |
8.6 |
8.6 |
5.2 |
5.2 |
2.8 |
2.8 |
|
Financial asset |
2.4 |
2.4 |
1.8 |
1.8 |
2.4 |
2.4 |
|
Trade and other receivables1 |
43.1 |
43.1 |
67 |
67 |
18.1 |
18.1 |
|
Cash held at bank |
120.2 |
120.2 |
66.9 |
66.9 |
130.6 |
130.6 |
|
Financial liabilities |
|
|
|
|
|
|
|
Trade and other payables2 |
121.3 |
121.3 |
123.9 |
123.9 |
158.6 |
158.6 |
|
Borrowings |
2,655.2 |
2,515.6 |
2,198.6 |
2,026.1 |
2,766.8 |
2,626.7 |
|
1. Excludes certain VAT, prepayments and other debtors. |
||||||
|
2. Excludes tax and VAT liabilities |
||||||
Interest rate derivatives are measured at fair value through profit and loss. All other financial assets and all financial liabilities are measured at amortised cost. All financial instruments were designated in their current categories upon initial recognition.
The Group has four fixed rate loans totalling £362 million, provided by PGIM (£90 million), Canada Life (£72 million) and Barings (£200 million). The fair value is determined by discounting the delta between contractual and market cash flows at a weighted average cost of capital discount rate. Market cash flows were built using the 12-year UK Gilt of 5.25% with an implied margin of 1.74% for the 2027 loan and 1.65% for the 2031 loan. The loans are considered to be a Level 2 fair value measurement. For all other bank loans there is considered no other difference between fair value and carrying value.
The fair value of financial liabilities traded on active liquid markets, including the 2.625% Bonds 2026, 3.125% Bonds 2031, 4.75% Bonds 2032, 1.5% Bonds 2033, 2.860% USPP 2028 and 2.980% USPP 2030, is determined with reference to the quoted market prices. These financial liabilities are considered to be a Level 1 fair value measure.
The fair value of the financial liabilities at Level 1 fair value measure were £1,147.8 million (Dec 2025: £1,148.9 million and June 2025: £1,008.6 million) and the financial liabilities at Level 2 fair value measure were £ 333.9 million (Dec 2025: £331.9 million and June 2025: £326.7 million).
17. Equity reserves
Share capital
The share capital relates to amounts subscribed for share capital at its nominal value. The Company had 2,714,497,501 shares of nominal value of 1 pence each in issue at the end of the period 30 June 2026 (30 June 2025: 2,480,677,459 shares and 31 December 2025: 2,702,122,165 shares).
|
|
30 June 2026 (unaudited) |
30 June 2025 (unaudited) |
31 December 2025 (audited) |
|
Issued and fully paid at 1 pence each |
£m |
£m |
£m |
|
Balance at the beginning |
27.0 |
24.8 |
24.8 |
|
Share issued from acquisitions |
0.1 |
- |
2.2 |
|
Balance at end of the period |
27.1 |
24.8 |
27.0 |
|
|
|
|
|
Share premium
The share premium relates to amounts subscribed for share capital in excess of its nominal value.
Capital reduction reserve
The capital reduction reserve account is classed as a distributable reserve. Movements in the current period relate to dividends paid.
Merger Reserve
Movements in the current and prior period relate to the shares issued in relation to the acquisition of a logistics portfolio in October 2025.
Retained earnings
Retained earnings relates to all net gains and losses not recognised elsewhere.
18. Net asset value (NAV) per share
Basic NAV per share is calculated by dividing net assets in the Group Statement of Financial Position attributable to ordinary equity holders of the Parent by the number of Ordinary Shares outstanding at the end of the period. As there are no dilutive instruments outstanding, both basic and diluted NAV per share are shown below.
The Group considered EPRA NTA to be the most relevant NAV measure for the Group and we are now reporting this as our primary NAV measure.
|
|
|
|
|
30 June 2026 |
30 June 2025 |
31 December 2025 |
|||
|
(unaudited) |
(unaudited) |
(audited) |
|||||||
|
£m |
£m |
£m |
|||||||
|
Net assets per Group Statement of Financial Position |
|
5,038.3 |
4,632.5 |
|
5,058.9 |
||||
|
EPRA NTA |
|
|
|
5,045.6 |
4,668.0 |
|
5,073.4 |
||
|
|
|
|
|
|
|
|
|
|
|
|
Ordinary Shares: |
|
|
|
|
|
|
|
||
|
Issued share capital (number) |
|
2,714,497,501 |
2,480,677,460 |
2,702,122,165 |
|||||
|
Net asset value per share - basic |
|
|
185.61p |
|
186.74p |
187.22p |
|||
|
Dilutive shares in issue (number) |
|
|
- |
|
- |
8,766,896 |
|||
|
Net asset value per share - dilutive |
|
185.61p |
186.74p |
187.09p |
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
30 June 2026 |
30 June 2025 |
31 December 2025 |
||||||
|
|
EPRA NTA |
EPRA NRV |
EPRA NDV |
EPRA NTA |
EPRA NRV |
EPRA NDV |
EPRA NTA |
EPRA NRV |
EPRA NDV |
|
£m |
£m |
£m |
£m |
£m |
£m |
£m |
£m |
£m |
|
|
NAV attributable to shareholders |
5,038.3 |
5,038.3 |
5,038.3 |
4,632.5 |
4,632.5 |
4,632.5 |
5,058.9 |
5,058.9 |
5,058.9 |
|
Revaluation of land options |
16.1 |
16.1 |
16.1 |
12.8 |
12.8 |
12.8 |
17.7 |
17.7 |
17.7 |
|
Mark-to-market adjustments of derivatives |
(8.6) |
(8.6) |
- |
23.3 |
23.3 |
- |
(2.8) |
(2.8) |
- |
|
Intangibles |
(0.2) |
- |
- |
(0.6) |
- |
- |
(0.4) |
- |
- |
|
Fair value of debt |
- |
- |
139.6 |
- |
- |
172.5 |
- |
- |
140.1 |
|
Real estate transfer tax1 |
- |
520.6 |
- |
- |
463.2 |
- |
- |
534.6 |
- |
|
NAV |
5,045.6 |
5,566.4 |
5,194.0 |
4,668.0 |
5,131.8 |
4,817.8 |
5,073.4 |
5,608.4 |
5,216.7 |
|
NAV per share |
185.88p |
205.06p |
191.34p |
188.17p |
206.87p |
194.21p |
187.76p |
207.56p |
193.06p |
19. Transactions with related parties
For the half year 30 June 2026, all Directors and some of the Members of the Manager are considered key management personnel. The terms and conditions of the Investment Management Agreement are described in the Management Engagement Committee Report within the 2025 Annual Report.
The total amount payable in the period relating to the Investment Management Agreement was £14.0 million (30 June 2025: £13.3 million, 31 December 2025: £27.2 million), with the total amount outstanding at the period end was £7.0 million (30 June 2025: £6.6 million and 31 December 2025: £7.1 million).
The Manager receives a net fee relating to asset management services provided to three properties which are 4% owned by the Group, amounting to £0.1 million for the period ended 30 June 2026 (30 June 2025: £0.05 million, 31 December 2025: £0.1 million).
The amounts paid to Directors for their services for the period to 30 June 2026 was £0.3 million (30 June 3025: £0.3 million and 31 December 2025: £0.6 million).
The total expense recognised in the Group profit or loss relating to share-based payments under the Investment Management Agreement was £2.8 million (30 June 2025: £2.7 million and 31 December 2025: £5.5 million), of which £2.8 million (30 June 2025: £2.7 million and 31 December 2025: £2.8 million) was outstanding at the period end.
The Members of the Manager who are considered as key management personnel are Colin Godfrey, James Dunlop, Henry Franklin, Petrina Austin, Bjorn Hobart, and Frankie Whitehead. The other Members of the Manager are Alasdair Evans, James Watson and Abrdn Holdings Limited
During the period the Directors who served during the period received the following dividends: Aubrey Adams: £12,765 (June 2025: £12,300 and December 2025: £23,700), Alastair Hughes: £3,237 (June 2025: £3,148 and December 2025: £6,089), Richard Laing: £3,345 (June 2025: £3,223 and December 2025: £6,234), Karen Whitworth: £2,574 (June 2025: £2,480, December 2025: £4,797), Wu Gang £366 (June 2025: £353, December 2025: £682) and Elizabeth Brown £867 (June 2025: £836, December 2025: £1,616).
During the period the Members of the Manager, who are considered key management personnel, received the following dividends: Colin Godfrey: £99,785 (June 2025: £130,349 and December 2025: £216,066), James Dunlop: £142,353 (June 2025: £123,648 and December 2025: £251,826), Henry Franklin: £104,522 (June 2025: £94,467 and December 2025: £182,534), Petrina Austin: £19,889 (June 2025: £17,410 and December 2025: £34,545), Bjorn Hobart: £22,212 (June 2025: £19,648 and December 2025: £38,874) and Frankie Whitehead £12,883 (June 2025: £10,660 and December 2025: £22,048).
The Group entered into a DMA with the Manager to deliver the 125MW data centre scheme at Chelmsford. Consistent with the Manor Farm data centre scheme, the Manager will receive:
· a payment of £3.3 million in respect of project assembly services to date at Chelmsford ;
· a development management fee of up to 5% of the development cost of the scheme, contingent upon receiving planning consent; and
· a profit share of 17.5% of the total development profits, contingent upon full delivery of a practically completed and let data centre. 50% of the Manager's profit share payment will be applied to the subscription or acquisition of shares in the Company.
20. Capital commitments
The Group had capital commitments of £23.0 million in relation to its development assets, active asset management initiatives and commitments under development land, outstanding as at 30 June 2026 (30 June 2025: £77.1 million 31 December 2025: 46.8 million). All commitments fall due within eighteen months from the date of this report.
21. Subsequent events
In the period post the balance sheet date, the Group completed the sale of a £29.5 million investment asset and exchanged to sell £55.5 million of investment assets.
The Group also purchased a 50% interest in a joint venture for £24.3 million in relation to the Chelmsford data centre project.
The Group today announces its intention to conduct a non-pre-emptive placing of new ordinary shares (the "Equity Issue") to raise approximately £350 million of gross proceeds (approximately 8% of current issued share capital). Full details of the proposed Equity Issue are contained in a separate announcement released by the Company.
The Equity Issue is intended to unlock the next wave of data centre growth and returns, The Company intends to use the net proceeds to advance its enlarged pipeline of data centre development opportunities including the early-stage and longer-term capex requirements of two additional data centre schemes totalling 235MW in the Greater London Availability Zones deliverable between 2030-2031. In addition, the proposed Equity Issue enhances the Group's financial flexibility complementing its disciplined approach to capital allocation. Completion of the proposed Equity Issue is subject to shareholder approval at a General Meeting to be held on 24 August 2026.
NOTES TO THE EPRA AND OTHER KEY PERFORMANCE INDICATORS (UNAUDITED)
1. Adjusted earnings - income statement
The Adjusted earnings reflects our ability to generate earnings from our portfolio, which ultimately underpins dividend payments.
|
|
Six months ended |
Six months ended |
Year ended |
|
30 June 2026 |
30 June 2025 |
31 December 2025 |
|
|
£m |
(reported) £m |
£m |
|
|
Gross rental income |
176.9 |
152.4 |
312.5 |
|
Service charge income |
9.8 |
7.8 |
15.2 |
|
Service charge expense |
(10.1) |
(9.1) |
(16.9) |
|
Direct property expenses |
(3.3) |
(1.9) |
(5.5) |
|
Fixed rental uplift adjustments |
0.7 |
(3.0) |
(2.6) |
|
Net rental income |
174.0 |
146.2 |
302.7 |
|
Other operating income |
- |
13.3 |
15.5 |
|
Amortisation of other property assets |
- |
0.8 |
0.9 |
|
Dividend Income |
- |
1.2 |
1.3 |
|
Administrative expenses |
(20.4) |
(18.4) |
(37.1) |
|
Adjusted operating profit before interest and tax |
153.6 |
143.1 |
283.3 |
|
Net finance costs |
(46.0) |
(32.2) |
(68.9) |
|
Gain on early redemption of bond |
- |
- |
(2.2) |
|
Rent guarantees |
6.2 |
- |
0.8 |
|
Amortisation of loan arrangement fees |
2.4 |
2.2 |
4.3 |
|
Unwinding of discount on fixed rate debt and deferred consideration |
3.2 |
3.3 |
6.5 |
|
Adjusted earnings before tax |
119.4 |
116.4 |
223.8 |
|
Tax on adjusted profit |
- |
(1.5) |
- |
|
Adjusted earnings after tax |
119.4 |
114.9 |
223.8 |
|
All DMA income |
- |
(12.6) |
(16.4) |
|
Adjusted earnings per share (exc. all DMA income) |
119.4 |
102.3 |
207.4 |
|
|
|
|
|
|
Weighted average number of Ordinary Shares |
2,705,814,254 |
2,480,677,460 |
2,523,753,006 |
|
Adjusted earnings per share |
4.41p |
4.63p |
8.87p |
|
Adjusted earnings per share (exc. all DMA income)1 |
4.41p |
4.12p |
8.22p |
|
1 The Group has previously reported two key performance indicators in the form of Adjusted Earnings per share and Adjusted earnings per share (excluding additional DMA Income). In the period we have replaced the second of these key performance indicators, previously, this was defined as 'Adjusted Earnings (excluding additional DMA Income)' and this would have been inclusive of up to £4 million of DMA Income per annum. This has been revised to 'Adjusted Earnings (excluding DMA Income)', which now removes all DMA Income recognised in the period. The first key performance indicator, being Adjusted Earnings per Share, continues to include all DMA Income recognised in the period and remains unchanged. |
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2. EPRA earnings per share
|
|
Six months ended |
Six months ended |
Year ended |
|
|
30 June 2026 |
30 June 2025 |
31 December 2025 |
|
|
|
£m |
£m |
£m |
|
|
|
Total comprehensive income (attributable to shareholders) |
75.8 |
166.8 |
363.3 |
|
|
Adjustments to remove: |
|
|
|
|
|
Changes in fair value of investment properties |
15.8 |
(92.2) |
(198.6) |
|
|
Changes in fair value of interest rate derivatives |
2.4 |
4.9 |
7.3 |
|
|
Changes in fair value of financial asset |
(0.4) |
1.4 |
1.5 |
|
|
Share of profits from joint ventures |
(0.3) |
(0.1) |
(0.1) |
|
|
(Gain)/Loss on disposal of investment properties |
3.0 |
5.3 |
11.5 |
|
|
Amortisation of other property assets |
- |
0.8 |
0.9 |
|
|
Gain on early redemption of bond |
- |
- |
(2.2) |
|
|
Impairment of intangible and other property assets |
10.6 |
25.5 |
29.1 |
|
|
Profits to calculate EPRA Earnings per share |
106.9 |
112.4 |
212.7 |
|
|
|
|
|
|
|
|
Weighted average number of Ordinary Shares |
2,705,814,254 |
2,480,677,460 |
2,523,753,006 |
|
3. EPRA NAV per share
The Group considered EPRA Net Tangible Assets (NTA) to be the most relevant NAV measure for the Group. EPRA NTA excludes the intangible assets and the cumulative fair value adjustments for debt-related derivatives which are unlikely to be realised.
|
30 June 2026 |
|
|
|
|
|
|||
|
|
Note |
EPRA NTA |
EPRA NRV |
EPRA NDV |
|
|||
|
|
£m |
£m |
£m |
|
||||
|
NAV attributable to shareholders |
|
5,038.3 |
5,038.3 |
5,038.3 |
|
|||
|
Revaluation of land options |
|
16.1 |
16.1 |
16.1 |
|
|||
|
Mark-to-market adjustments of derivatives |
|
(8.6) |
(8.6) |
- |
|
|||
|
Intangibles |
|
(0.2) |
- |
- |
|
|||
|
Fair value of debt |
|
- |
- |
139.6 |
|
|||
|
Real estate transfer tax1 |
|
- |
520.6 |
- |
|
|||
|
At 30 June 2026 |
18 |
5,045.6 |
5,566.4 |
5,194.0 |
|
|||
|
NAV per share |
|
185.88p |
205.06p |
191.34p |
|
|||
|
|
|
|
|
|
|
|||
|
30 June 2025 |
|
|
|
|
|
|||
|
|
Note |
EPRA NTA |
EPRA NRV |
EPRA NDV |
|
|||
|
|
£m |
£m |
£m |
|
||||
|
NAV attributable to shareholders |
|
4,632.5 |
4,632.5 |
4,632.5 |
|
|||
|
Revaluation of land options |
|
12.8 |
12.8 |
12.8 |
|
|||
|
Mark-to-market adjustments of derivatives |
|
23.3 |
23.3 |
- |
|
|||
|
Intangibles |
|
(0.6) |
- |
- |
|
|||
|
Fair value of debt |
|
- |
- |
172.5 |
|
|||
|
Real estate transfer tax1 |
|
- |
463.2 |
- |
|
|||
|
At 30 June 2025 |
18 |
4,668.0 |
5,131.8 |
4,817.8 |
|
|||
|
NAV per share |
|
188.17p |
206.87p |
194.21p |
|
|||
|
|
|
|
|
|
|
|||
|
31 December 2025 |
|
|
|
|
|
|||
|
|
Note |
EPRA NTA |
EPRA NRV |
EPRA NDV |
|
|||
|
|
£m |
£m |
£m |
|
||||
|
NAV attributable to shareholders |
|
5,058.9 |
5,058.9 |
5,058.9 |
|
|||
|
Revaluation of land options |
|
17.7 |
17.7 |
17.7 |
|
|||
|
Mark-to-market adjustments of derivatives |
|
(2.8) |
(2.8) |
- |
|
|||
|
Intangibles |
|
(0.4) |
- |
- |
|
|||
|
Fair value of debt |
|
- |
- |
140.1 |
|
|||
|
Real estate transfer tax1 |
|
- |
534.6 |
- |
|
|||
|
At 31 December 2025 |
18 |
5,073.4 |
5,608.4 |
5,216.7 |
|
|||
|
NAV per share |
|
187.76p |
207.56p |
193.06p |
|
|||
|
Dilutive NAV per share |
|
187.63p |
207.37p |
192.91p |
|
|||
|
|
|
|
|
|
||||
4. EPRA net initial yield (NIY) and EPRA "topped up" NIY
|
|
Six months ended |
Six months ended |
Year ended |
|
30 June 2026 |
30 June 2025 |
31 December 2025 |
|
|
£m |
£m |
£m |
|
|
Investment property - wholly owned |
7,520.6 |
6,667.8 |
7,722.0 |
|
Investment property - share of joint ventures |
1.8 |
4.0 |
4.0 |
|
Less: development properties |
(538.3) |
(583.6) |
(631.9) |
|
Completed property portfolio |
6,984.1 |
6,088.2 |
7,094.1 |
|
Allowance for estimated purchasers' costs |
471.4 |
411.0 |
478.9 |
|
Gross up completed property portfolio valuation (B) |
7,455.5 |
6,499.2 |
7,573.0 |
|
Annualised passing rental income |
355.7 |
311.3 |
360.9 |
|
Less: contracted rental income in respect of development properties |
(9.8) |
(11.2) |
(9.8) |
|
Property outgoings |
(3.5) |
(2.6) |
(5.6) |
|
Less: contracted rent under rent-free period |
(15.8) |
(9.2) |
(13.9) |
|
Annualised net rents (A) |
326.6 |
288.3 |
331.6 |
|
Contractual increases for fixed uplifts |
24.0 |
14.8 |
19.6 |
|
Topped up annualised net rents (C) |
350.6 |
303.1 |
351.2 |
|
EPRA net initial yield (A/B) |
4.38% |
4.44% |
4.38% |
|
EPRA topped up net initial yield (C/B) |
4.70% |
4.66% |
4.64% |
|
|
|
|
|
5. EPRA vacancy rate
|
|
Six months ended |
Six months ended |
Year ended |
|
30 June 2026 |
30 June 2025 |
31 December 2025 |
|
|
£m |
£m |
£m |
|
|
Annualised estimated rental value of vacant premises |
29.0 |
21.2 |
25.1 |
|
Portfolio estimated rental value1 |
448.2 |
381.5 |
452.2 |
|
EPRA Vacancy rate |
6.48% |
5.56% |
5.55% |
|
|
|
|
|
6. EPRA cost ratio
|
|
Six months ended |
Six months ended |
Year ended |
|
30 June 2026 |
30 June 2025 |
31 December 2025 |
|
|
£m |
£m |
£m |
|
|
Property operating costs |
3.5 |
2.6 |
5.6 |
|
Administration expenses |
6.4 |
5.1 |
9.9 |
|
Management fees |
14.0 |
13.3 |
27.2 |
|
Total costs including and excluding vacant property costs (A) |
23.9 |
21.0 |
42.7 |
|
Vacant property cost |
(2.3) |
(1.3) |
(4.1) |
|
Total costs excluding vacant property costs (B) |
21.6 |
19.7 |
38.6 |
|
|
|
|
|
|
Gross rental income - per IFRS |
176.9 |
152.4 |
312.5 |
|
Gross rental income (C) |
176.9 |
152.4 |
312.5 |
|
Total EPRA cost ratio (including vacant property costs) |
13.5% |
13.8% |
13.7% |
|
Total EPRA cost ratio (excluding vacant property costs) |
12.2% |
12.9% |
12.4% |
7. EPRA like-for-like rental income
|
|
Six months ended |
Six months ended |
|
|
|
30 June 2026 |
30 June 2025 |
Change |
Change |
|
|
£m |
£m |
£m |
% |
|
|
Like-for-like rental income |
139.9 |
133.0 |
|
|
|
Other rental income |
0.2 |
0.1 |
|
|
|
Like-for-like gross rental income |
140.1 |
133.1 |
7.0 |
5.3% |
|
Like for like irrecoverable property expenditure |
(1.9) |
(1.6) |
|
|
|
Like-for-like net rental income |
138.2 |
131.5 |
6.7 |
5.1% |
|
|
|
|
|
|
|
Reconciliation to Net rental income per Statement of Comprehensive Income: |
|
|
|
|
|
Development properties |
2.3 |
0.5 |
|
|
|
Properties acquired |
29.5 |
2.9 |
|
|
|
Properties disposed |
5.8 |
13.1 |
|
|
|
Once off adjustment |
(0.8) |
2.6 |
|
|
|
Irrecoverable Property Expense |
(1.7) |
(1.6) |
|
|
|
Total per Statement of Comprehensive Income |
173.3 |
149.2 |
24.1 |
16.2% |
8. EPRA property-related capital expenditure
|
|
Six months ended |
Six months ended |
Year ended |
|
30 June 2026 |
30 June 2025 |
31 December 2025 |
|
|
£m |
£m |
£m |
|
|
Acquisition1 |
8.8 |
96.5 |
1,070.3 |
|
Development2 |
48.2 |
328.7 |
444.7 |
|
Transfers to Investment Property |
- |
(3.4) |
(4.7) |
|
Investment properties: |
|
|
|
|
Tenant incentives3 |
15.3 |
15.3 |
18.9 |
|
Capitalised interest |
8.9 |
6.7 |
14.8 |
|
Total Capex |
81.2 |
443.8 |
1,544.0 |
|
Share issued for acquisitions |
- |
- |
(329.1) |
|
Conversion from accrual to cash basis |
8.1 |
(31.9) |
(37.7) |
|
Total Capex on a cash basis |
89.3 |
411.9 |
1,177.2 |
1 See note 10
2 See note 10 and note 11
3 Fixed rental uplift and tenant lease incentives after adjusting for amortisation on rental uplift and tenant lease incentives.
9. Total Accounting Return (TAR)
|
|
Six months ended |
Six months ended |
Year ended |
|
30 June 2026 |
30 June 2025 |
31 December 2025 |
|
|
Opening EPRA NTA |
187.76p |
185.56p |
185.56p |
|
Closing EPRA NTA |
185.88p |
188.17p |
187.76p |
|
Change in EPRA NTA |
(1.88)p |
2.61p |
2.20p |
|
Dividends paid |
4.26p |
4.10p |
7.93p |
|
Total growth in EPRA NTA plus dividends paid |
2.38p |
6.71p |
10.13p |
|
Total return |
1.3% |
3.6% |
5.5% |
10 . Loan to value ratio
The proportion of our gross asset value that is funded by net borrowings.
|
|
Six months ended |
Six months ended |
Year ended |
|
30 June 2026 |
30 June 2025 |
31 December 2025 |
|
|
£m |
£m |
£m |
|
|
Gross debt drawn |
2,638.7 |
2,176.1 |
2,747.3 |
|
Less: cash |
(120.2) |
(66.9) |
(130.6) |
|
Net debt |
2,518.5 |
2,109.2 |
2,616.7 |
|
Gross property value |
7,666.2 |
6,822.0 |
7,875.0 |
|
Loan to value ratio |
32.9% |
30.9% |
33.2% |
11 . EPRA Loan to value ratio
The proportion of our gross asset value that is funded by net borrowings.
|
|
Six months ended |
Six months ended |
Year ended |
|
30 June 2026 |
30 June 2025 |
31 December 2025 |
|
|
£m |
£m |
£m |
|
|
Gross debt drawn |
2,661.5 |
2,202.9 |
2,773.5 |
|
Working capital1 |
66.4 |
36.9 |
145.8 |
|
Less: cash |
(120.2) |
(66.9) |
(130.6) |
|
Net debt |
2,607.7 |
2,172.9 |
2,788.7 |
|
Gross property value |
7,666.2 |
6,822.0 |
7,875.0 |
|
Loan to value ratio |
34.0% |
31.9% |
35.4% |
1 Working capital is calculated as the net position of the following line items shown on the Balance Sheet: Current trade and other receivables, current trade and other payables and current tax liabilities.
Glossary of Terms
"Adjusted Earnings" Post-tax earnings attributable to shareholders, adjusted to include licence fees receivable on forward funded development assets, finance income on interest rate derivatives and adjusts for other earnings not supported by cash flows. "Adjusted Earnings per share" or "Adjusted EPS" on a per share basis.
"Big Box" A "Big Box" property or asset refers to a specific subsegment of the logistics sector of the real estate market, relating to very large logistics warehouses (each with typically over 500,000 sq ft of floor area) with the primary function of holding and distributing finished goods, either downstream in the supply chain or direct to consumers, and typically having the following characteristics: generally a modern constructed building with eaves height exceeding 12 metres; let on long leases with institutional-grade tenants; with regular, upward-only rental reviews; having a prime geographical position to allow both efficient stocking (generally with close links to sea ports or rail freight hubs) and efficient downstream distribution; and increasingly with sophisticated automation systems or a highly bespoke fit out.
"Board" The Directors of the Company.
"BREEAM" The Building Research Establishment Environmental Assessment Method certification of an asset's environmental, social and economic sustainability performance, using globally recognised standards.
"Company" Tritax Big Box REIT plc (company number 08215888).
"Contracted annual rent roll" Annualised rent, adjusting for the inclusion of rent free period.
"CPI" Consumer Price Index, a measure that examines the weighted average of prices of a basket of consumer goods and services, such as transportation, food and medical care as calculated on a monthly basis by the Office of National Statistics.
"Current Development Pipeline" Assets that are in the course of construction or assets for which we have made a construction commitment.
"CVA" A company voluntary arrangement, a legally binding agreement between a business and its creditors which sets out a debt repayment plan and enables a viable business to avoid liquidation.
"Directors" The Directors of the Company as of the date of this report being Aubrey Adams, Elizabeth Brown, Alastair Hughes, Richard Laing, Karen Whitworth, Wu Gang and Kirsty Wilman.
"Dividend pay-out ratio" Dividend per share divided by Adjusted Earnings per share.
"Development Management Agreement" or "DMA" An agreement between the Group and a developer setting out the terms in respect of the development of an asset. In particular, the development of the Tritax Big Box Developments Portfolio is the subject of a DMA between Tritax Big Box Developments Holdings and Tritax Big Box Developments ManCo.
"Development portfolio" or "Development assets" The Group's Development portfolio comprises its property assets which are not Investment assets, including land, options over land as well as any assets under construction on a speculative basis.
"EPC rating" A review of a property's energy efficiency.
"EPRA" European Public Real Estate Association.
"EPRA Earnings" Earnings from operational activities (which excludes the licence fees receivable on our Forward Funded Development assets).
"EPRA NAV" or "EPRA Net Asset Value" The Basic Net Asset Value adjusted to meet EPRA Best Practices Recommendations Guidelines (2016) requirements by excluding the impact of any fair value adjustments to debt and related derivatives and other adjustments and reflecting the diluted number of Ordinary Shares in issue.
"EPRA Triple Net Asset Value (NNNAV)" EPRA NAV adjusted to include the fair values of financial instruments, debt and deferred taxes.
"EPRA Net Tangible Asset (NTA)" The Basic Net Asset Value adjusted to meet EPRA Best Practices Recommendations Guidelines (2019) requirements by excluding intangibles and the impact of any fair value adjustments to related derivatives. This includes the revaluation of land options.
"EPRA Net Reinstatement Value (NRV)" IFRS NAV adjusted to exclude the impact of any fair value adjustments to related derivatives. This includes the revaluation of land options and the Real estate transfer tax (RETT).
"EPRA Net Disposal Value (NDV)" IFRS NAV adjusted to include the fair values of debt and the revaluation of land options.
"EPRA Net Initial Yield (NIY)" Annualised rental income based on the cash rents passing at the balance sheet date, less non-recoverable property operating expenses, divided by the market value of the property, increased with (estimated) purchaser's costs.
"EPRA 'Topped-Up' NIY" This measure incorporates an adjustment to the EPRA NIY in respect of the expiration of rent-free periods (or other unexpired lease incentives, such as discounted rent periods and step rents).
"EPRA Vacancy" Estimated market rental value (ERV) of vacant space divided by the ERV of the whole portfolio.
"EPRA Cost Ratio" Administrative and operating costs (including costs of direct vacancy) divided by gross rental income.
"Estimated cost to completion" Costs still to be expended on a development or redevelopment to practical completion, including attributable interest.
"Estimated rental value" or "ERV" The estimated annual market rental value of lettable space as determined biannually by the Group's valuers. This will normally be different from the rent being paid.
"FCA" The United Kingdom Financial Conduct Authority (or any successor entity or entities).
"Forward Funded Development" Where the Company invests in an asset which is either ready for, or in the course of, construction, pre-let to an acceptable counterparty. In such circumstances, the Company seeks to negotiate the receipt of immediate income from the asset, such that the developer is paying the Company a return on its investment during the construction phase and prior to the tenant commencing rental payments under the terms of the lease. Expert developers are appointed to run the development process.
"Foundation asset" Foundation assets provide the core, low-risk income that underpins our business. They are usually let on long leases to clients with excellent covenant strength. These buildings are commonly new or modern and in prime locations, and the leases have regular upward only rent reviews, often either fixed or linked to Inflation Indices.
"FRI Lease" Full Repairing and Insuring Lease. During the lease term, the tenant is responsible for all repairs and decoration to the property, inside and out, and the building insurance premium is recoverable from the tenant.
"Future Development Pipeline" The Group's land portfolio for future development typically controlled under option agreements which do not form part of the Current or Near Term development pipelines.
"Gearing" Net borrowings divided by total shareholders' equity excluding intangible assets and deferred tax provision.
"GIA" Under the RICS Code of Measuring Practice (6th Edition) the Gross Internal Area (GIA) is the basis of measurement for valuation of industrial buildings (including ancillary offices) and warehouses. The area of a building measured to the internal face of the perimeter walls at each floor level (including the thickness of any internal walls). All references to building sizes in this document are to the GIA.
"GAV" The Group's gross asset value.
"Global Real Estate Sustainability Benchmark (GRESB) Assessment" GRESB assesses the ESG performance of real estate and infrastructure portfolios and assets worldwide, providing standardised and validated data to the capital markets.
"Gross rental income" Contracted rental income recognised in the period, in the income statement, including surrender premiums and interest receivable on finance leases. Lease incentives, initial costs and any contracted future rental increases are amortised on a straight-line basis over the lease term.
"Group" or "REIT Group" The Company and all of its subsidiary undertakings.
"IMA" The Investment Management Agreement between the Manager and the Company.
"Investment portfolio" or "Investment assets" The Group's Investment Portfolio comprises let or pre-let (in the case of Forward Funded Developments) assets which are income generating, as well as any speculative development assets which have reached practical completion but remain unlet.
"Investment property" Completed land and buildings held for rental income return and/or capital appreciation.
"Land asset" Opportunities identified in land which the Manager believes will enable the Company to secure, typically, pre-let Forward Funded Developments in locations which might otherwise attract lower yields than the Company would want to pay, delivering enhanced returns but controlling risk.
"Listing Rules" The listing rules made by the Financial Conduct Authority under section 73A of FSMA.
"Loan Notes" The loan notes issued by the Company on 4 December 2018.
"Loan to Value (LTV)" The proportion of our gross asset value that is funded by net borrowings.
"Logistics" Encompasses the B8 and E use categories under the Town and Country Planning (Use Classes) Order 1987 as amended from time to time.
"London Stock Exchange" London Stock Exchange plc.
"Manager" Tritax Management LLP (partnership number 0C326500).
"Near-term Development Pipeline" Sites which have either received planning consent or sites where planning applications have been submitted prior to the year end.
"Net Initial Yield (NIY)" The annual rent from a property divided by the combined total of its acquisition price and expenses.
"Net rental income" Gross rental income less ground rents paid, net service charge expenses and property operating expenses.
"Net zero carbon" Highly energy efficient and powered from on-site and/or off-site renewable energy sources, with any remaining carbon balance offset.
"Non-PID Dividend" A dividend received by a shareholder of the principal company that is not a PID.
"Ordinary Shares" Ordinary Shares of £0.01 each in the capital of the Company.
"Passing rent" The annual rental income currently receivable on a property as at the balance sheet date (which may be more or less than the ERV). Excludes service charge income (which is netted off against service charge expenses).
"PID" or "Property income distribution" A dividend received by a shareholder of the principal company in respect of profits and gains of the Property Rental Business of the UK resident members of the REIT group or in respect of the profits or gains of a non-UK resident member of the REIT group insofar as they derive from their UK Property Rental Business.
"Portfolio" The overall portfolio of the Company including both the Investment and Development portfolios.
"Portfolio Value" The value of the Portfolio which, as well as the Group's standing assets, includes capital commitments on Forward Funded Developments, Land Assets held at cost, the Group's share of joint venture assets and other property assets.
"Pre-let" A lease signed with a client prior to commencement of a development.
"REIT" A qualifying entity which has elected to be treated as a Real Estate Investment Trust for tax purposes. In the UK, such entities must be listed on a recognised stock exchange, must be predominantly engaged in property investment activities and must meet certain ongoing qualifications.
"Rent roll" See "Passing rent".
"RPI" Retail price index, an inflationary indicator that measures the change in the cost of a fixed basket of retail goods as calculated on a monthly basis by the Office of National Statistics.
"SDLT" Stamp Duty Land Tax - the tax imposed by the UK Government on the purchase of land and properties with values over a certain threshold. "Shareholders" The holders of Ordinary Shares.
"SONIA" Sterling Overnight Index Average
"Speculative development" Where a development has commenced prior to a lease agreement being signed in relation to that development.
"sq ft" Square foot or square feet, as the context may require.
"Tritax Big Box Developments shareholders" The holders of B and C Shares in Tritax Big Box Developments.
"Tritax Big Box Developments ManCo" Tritax Big Box Developments Limited, a private limited company incorporated in England and Wales (registered number 11685402) which has an exclusive development management agreement with Tritax Big Box Developments to manage the development of the Tritax Big Box Developments Portfolio.
"Topped up net initial yield" Net initial yield adjusted to include notional rent in respect of let properties which are subject to a rent-free period at the valuation date thereby providing the Group with income during the rent-free period. This is in accordance with EPRA's Best Practices Recommendations.
"Total Expense Ratio" or "TER" The ratio of total administration and property operating costs expressed as a percentage of average net asset value throughout the period.
"Total Accounting Return" Net total return, being the percentage change in EPRA NTA over the relevant period plus dividends paid.
"Total Shareholder Return" A measure of the return based upon share price movement over the period and assuming reinvestment of dividends.
"Triple Net Lease" - A triple net lease (NNN lease) is a commercial lease agreement in which the tenant is responsible for paying property taxes, insurance, and maintenance costs in addition to rent and utilities. This type of lease shifts most property expenses from the landlord to the tenant.
"Tritax Big Box Developments" Tritax Big Box Development Holdings Limited, a limited company incorporated in Jersey (registered number 127784).
"Tritax Big Box Developments Portfolio" The portfolio of assets held through Tritax Big Box Developments following the acquisition of db Symmetry in February 2019, including land, options over land and a number of assets under development.
"True Equivalent Yield (TEY)" The internal rate of return from an Investment property, based on the value of the property assuming the current passing rent reverts to ERV on the basis of quarterly in advance rent receipts and assuming the property becomes fully occupied over time.
"UK AIFMD Rules" The laws, rules and regulations implementing AIFMD in the UK, including without limitation, the Alternative Investment Fund Managers Regulations 2013 and the Investment Funds sourcebook of the FCA.
"Value Add asset" These assets are typically let to clients with good covenants and offer the chance to grow the assets' capital value or rental income, through lease engineering or physical improvements to the property. We do this using our asset management capabilities and understanding of client requirements. These are usually highly re-lettable. It also includes assets developed on a speculative basis which have reached practical completion but remain unlet at the period end.
"WAULT" or "Weighted Average Unexpired Lease Term" The income for each property applied to the remaining certain term for an individual property or the lease and expressed as a portfolio average in years.
"Waystone" or "Waystone Asset Services" A trading name of Waystone Administration Solutions (company number 2605568).
"Yield on cost" The expected gross yield based on the estimated current market rental value (ERV) of the developments when fully let or actual rental value for completed developments or those pre-let, as appropriate, divided by the estimated or actual total costs of the development.
[1] Source: UK Government, Oxford Economics
[2] CBRE 3 DTRE
[3] CoStar 4 Savills (shown on following page)
[4] Figure restated from previously reported 445kgCO2e/m2 due to updated information post year end.
[5]. This reflects shorter-dated leases, typically in smaller assets, where no rent review is undertaken within the lease period.
[6]. Rent for overdue reviews is accrued and recognised within rental income at a level that is reasonably expected to be achieved on settlement.
[7]. Includes both non-strategic and logistics assets.
[8]. Assumes (i) all existing vacant assets are let at ERV in 2026 (ii) all lease expiries are re-let to June 2026 ERV in the year of expiry (iii) all open market rent reviews are reviewed to June 2026 ERV in the year of review, and (iv) inflation-linked and fixed reviews are reviewed in line with the contractual position, considering any floors and caps.
[9] Figure restated from previously reported 79.3% due to updated information post year end.
1 Excluding additional development management agreement income
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