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Results for the 12 months ended 31 December 2022


Results for the 12 months ended 31 December 2022

Strong operational performance – record lettings – high-quality portfolio

02 Mar 2023

Increasing contracted rent and expected reduction in costs underpinning future earnings growth

  • £28.4 million growth (+14.5%) in annual contracted rent to £224.0 million from development lettings and active management underpinning future earnings growth when compared to current passing rent of £205.1 million.
  • 3% reduction in Adjusted EPS to 7.79 pence (2021: 8.23 pence) from lower additional development management (DMA) income and increased average share count.
  • Excluding additional DMA income:
    • Adjusted earnings increased by 8.3% to £140.3 million (2021: £129.6 million); and
    • Adjusted earnings per share increased by 1.8% to 7.51 pence (2021: 7.38 pence) with development completions and rental growth more than offsetting a 6.4% increase in average share count.
  • 5% increase in dividend to 7.00 pence per share; 93% pay-out ratio when adjusting for additional DMA income.
  • -15.9% Total Accounting Return (2021: 30.5%) driven by significant outward yield shift across the logistics real estate sector, (a -13.1% portfolio capital value deficit), offset in part by development gains and rental growth.
  • EPRA Cost Ratio reflects greater level of assets under construction which are not yet income producing.
    • Expected reduction in FY 2023 from reduced management fee and increased rental income from developments.

Occupational market remains at near record levels

  • 38 million sq ft of UK lettings in 2022 (2021: 42 million sq ft) to a diverse range of occupiers, the third highest year on record and 33% above the 10-year average.
  • UK supply constrained with ready to occupy vacant space remaining low at just 2.0% (Q4 2021: 1.6%)6.
  • Transaction market slowed in H2 2022, full year investment volumes totalling £6.7 billion (2021: £11.2 billion).
  • Prime market yield for high-quality rack-rented logistics real estate investment with c.15-year unexpired lease and open market rent reviews was 5.0%6 as at 31 December 2022 (Q4 2021: 3.5%).

Record development lettings secure £23.3 million of contracted annual rent

  • £23.3 million of contracted annual rent secured from record 3.1 million sq ft of development lettings in line with 6-8% yield on cost guidance.
  • 9 million sq ft of development starts in 2022, of which 2.4 million sq ft (82%) has been let to a range of high-quality customers
    • 4 million sq ft of development starts unlet with potential to add a further £4.7 million per annum to contracted rent.
    • 1 million sq ft started at Littlebrook and subsequently sold post practical completion (see below).
  • £2.6 million of additional annual rent secured through 0.3 million sq ft of development lettings post period end.
  • 2 – 3 million sq ft per annum long-term development guidance (£200 – 250 million) at a 6 – 8% yield on cost maintained.

Adding value through active management, including £150 million of disposals in line with December 2022 valuations

  • £5.1 million added to contracted annual rent from rent reviews and a lease renewal.
    • 6% increase in passing rent across the 34.2% of the portfolio subject to lease events resulting in EPRA like-for-like rental growth of 3.6% (2021: 3.3%).
  • Record like-for-like ERV growth of 9.2% over the year, with a 19.1% portfolio rental reversion at 31 December 2022.
  • Exchanged on the sale of £25 million of newly developed and vacant non-core assets at Littlebrook. In addition, post the period end, exchanged on a three asset portfolio sale realising gross proceeds of £125 million. Both of these transactions were in line with 31 December 2022 independent valuation.
  • Continued emphasis on enhancing ESG performance, demonstrated by inclusion in Sustainalytics, 2023 Top – Rated ESG Companies List, increase in MSCI rating from BBB to AA, and launch of new 2023 targets.

High-quality portfolio supports resilient and growing income

  • 100% of rent collected in relation to FY 2022 (2021: 100%).
  • 1% portfolio vacancy, reducing to 1.1% including post-year-end lettings (2021: 0%).
  • Long-term and full repairing and insuring (triple net) leases to a diverse range of large and resilient customers with 12.6 years weighted average unexpired lease term (WAULT) as at 31 December 2022 (2021: 13.0 years).

Change in portfolio valuation and EPRA NTA from market repricing of logistics assets

  • Total portfolio value of £5.06 billion as at 31 December 2022 (31 December 2021: £5.48 billion), equating to an equivalent yield of 5.3% (31 December 2021: 4.1%).
  • Reduction in like-for-like value of investment assets was -15.2%5 across the year (H2 2022: -20.0%).
  • The impact of changes in yields on EPRA NTA has been partly mitigated by development profits and growth in ERV.

Maintaining a strong balance sheet

  • 2% loan to value at 31 December 2022, within guidance of 30% – 35% and maintaining substantial covenant headroom.
    • Including the assets exchanged for disposal subsequent to the period end, the pro-forma FY22 LTV reduces to 29.0%.
  • Stable, recurring cash-flows of the portfolio reflected in 4.8x interest cover.
  • 4 years average debt maturity, 99% of drawn debt fixed or hedged at 31 December 2022, with an average cost of 2.6%.
  • £200 million increase in RCF commitments on existing terms, with available liquidity at 31 December 2022 in excess of £500 million.

Aubrey Adams, Chairman of Tritax Big Box REIT plc, commented:

“We made excellent operational progress this year, successfully deploying capital into higher yielding development opportunities and delivering record levels of new lettings, validating both our strategy and our decision to accelerate development activity in 2022. The income generated from these lettings will increasingly flow into earnings during 2023 and we will see the full benefits in 2024.”

“Despite this positive operational performance we have not been immune from the rapid fall in property valuations in the second half of the year. However, we entered this period with a strong balance sheet and high-quality assets, providing us with the headroom to weather these changes as we continued to implement our strategy. Encouragingly, the strength of the occupational market continues to support attractive rental growth and we are seeing early signs of the investment market stabilising as investor confidence begins to return.”

“We have a high-quality portfolio delivering resilient and growing income that leaves us well positioned for the future, whatever the economic backdrop. The demand and supply fundamentals of our sector remain highly compelling and we are confident in our ability to deliver further income and capital value growth.”

Presentation for analysts and investors

A Company presentation for analysts and investors will take place via a live webcast with Q&A at 9.00am (GMT) today and can be viewed at:

If you would like to ask questions verbally please join the presentation via conference call:

UK: +44 (0) 33 0551 0200

UK (toll free): 0808 109 0700

US: +1 786 697 3501
Password: Tritax Full Year Results

The presentation will also be accessible on-demand later in the day on the Company website:


  1. Operating profit before changes in fair value and other adjustments.
  2. See Note 13 to the financial statements for reconciliation.
  3. The anticipated run rate for development management income is £3.0 – 5.0 million per annum over the medium term. Adjusted EPS becomes 7.51p when excluding development management income above this anticipated run rate (‘additional’ development management income). £9.3 million of development management income is included in the 7.79p Adjusted earnings per share in 2022 (2021: £0 million included in 8.23p Adjusted earnings per share). Also see Note 1 to EPRA and Other key performance indicators.
  4. The Portfolio Value includes the Group’s investment assets and development assets, land options held at cost, the Group’s share of joint venture assets and other property assets.
  5. Excludes development assets, land and land options.
  6. Source: CBRE


Tritax Group

Colin Godfrey, CEO                                                                     Tel: +44 (0) 20 8051 5060
Frankie Whitehead, CFO                                                   
Ian Brown, Head of Investor Relations

Kekst CNC

Neil Maitland/Tom Climie                                                            Tel: +44 (0) 7971 578 507

       +44 (0) 7760 160 248


The Company’s LEI is: 213800L6X88MIYPVR714


Tritax Big Box REIT plc (ticker: BBOX) is the largest listed investor in high-quality logistics warehouse assets and controls the largest logistics-focused land platform in the UK. Tritax Big Box is committed to delivering 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 tenants on long-term leases with upward-only rent reviews and geographic and tenant diversification throughout the UK. The Company seeks to exploit the significant opportunity provided by the imbalance between strong occupational demand and constrained supply of modern logistics real estate in the UK.

The Company is a real estate investment trust to which Part 12 of the UK Corporation Tax Act 2010 applies, is listed on the premium segment of the Official List of the UK Financial Conduct Authority and is a constituent of the FTSE 250, FTSE EPRA/NAREIT and MSCI indices.

Further information on Tritax Big Box REIT is available at


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