---

           

Results for the

 six months ended

30 June 2025 

6 August 2025

Three clear growth drivers delivering strong performance

Potential to deliver adjusted earnings growth of 50% by the end of 2030

Superior risk adjusted returns from logistics and data centre developments

H1 2025 key figures 

	30 June 2025	30 June 2024	Change
Net rental income	£149.2m	£127.2m	17.3%
Operating profit1	£144.1m	£123.8m	16.4%
Adjusted earnings per share2,6	4.63p	4.35p	6.4%
Adjusted earnings per share (ex. additional DMA income) 3, 6	4.29p	4.10p	4.6%
IFRS earnings per share	6.72p	9.14p	-26.5%
Dividend per share	3.83p	3.65p	4.9%
Dividend pay-out ratio (ex. Additional DMA income) 3, 6	89.4%	89.0%	+0.4pts
Total Accounting Return	3.6%	3.4%	+0.2pts
EPRA cost ratio (excluding vacancy cost) 6	12.9%	12.4%	+0.5pts
EPRA cost ratio (including vacancy cost) 6	13.8%	12.5%	+1.3pts
	30 June 2025	31 December 2024
Contracted annual rent roll	£311.3m	£313.5m	-0.7%
EPRA Net Tangible Assets per share6	188.17p	185.56p	1.4%
IFRS net asset value per share	186.74p	184.12p	1.4%
Portfolio value4, 6	£6.82bn	£6.55bn	4.1%
Loan to value (LTV)6	30.9%	28.8%	+2.1pts

 

Commenting on the results, Aubrey Adams, Chairman of Tritax Big Box REIT, said:

"There are few listed real estate companies that offer such compelling organic growth potential as Tritax Big Box. Our resilient income profile is underpinned by long-duration contracted revenues, from strong clients on triple-net leases, while our three clear growth drivers provide the potential to grow adjusted earnings by 50% by the end of 2030.

"During the period we have made significant strategic progress to further de-risk this growth and remain confident and excited about our future prospects. In particular, we've secured our second significant data centre opportunity, with the potential to deliver a 10-11% yield on cost. Our UKCM logistics assets have delivered 13.2% rental growth since acquisition. Recent development letting activity evidences the growing occupational interest in our sites - momentum we expect to build in the second half of the year." 

Attractive rental income growth supporting increase in Adjusted EPS, enhanced by DMA contribution

·    6.4% increase in Adjusted EPS to 4.63 pence (H1 2024: 4.35 pence) driven by net rental income growth.

o  Adjusted EPS excluding additional DMA income grew 4.6% to 4.29 pence (H1 2024: 4.10 pence).

·   17.3% increase in net rental income to £149.2 million (H1 2024: £127.2 million) driven by higher average contracted rent roll reflecting the full impact of the UKCM acquisition, along with active asset management and development execution.

·   12.9% EPRA cost ratio excluding vacancy costs remaining broadly stable (H1 2024: 12.4%). 13.8% EPRA cost ratio including vacancy costs (H1 2024: 12.5%), reflecting full period of assumed vacancy costs from UKCM acquisition.

 

Capital growth through stable yields, growing income and development activity

·  Increase in total portfolio value to £6.82 billion (31 December 2024: £6.55 billion), with equivalent yield remaining stable at 5.72% (31 December 2024: 5.68%).

·  1.4% portfolio capital value increase (H1 2024: 0.5% increase) driven by income growth and asset management alongside development gains.

 

Growth driver 1: Capturing record rental reversion to drive earnings growth

·    2.3% like-for-like Estimated Rental Value (ERV) growth across the logistics portfolio (H1 2024: 1.9%) across the six months.

·  28.9% logistics portfolio reversion (H1 2024: 25.5%) combined with current vacancy provides potential to capture £83.8 million of additional rent, of which 77% within the next 3 years, supporting future earnings growth.

·    £5.6 million (+10.3%) added to annual contracted rent through rent reviews and asset management initiatives:

o  Including 35.5% increase in aggregate across open market linked rent reviews settled in period.

o  Despite a weighting towards inflation linked and fixed uplift rent reviews in the period achieved a 9.2% absolute increase in passing rent across all rent reviews settled.

o  13.2% growth in contracted rent for UKCM logistics portfolio since acquisition.

 

Growth driver 2: Developing best-in-class logistics assets to drive earnings growth

·    1.1 million sq ft of development starts in H1 2025 of which 33% has been either pre-let or pre-sold.

·    £1.5 million added to passing rent from let development completions in the period.

·    0.4 million sq ft development letting shortly after period end adding £3.9 million per annum to passing rent.

·    2.5 million sq ft under construction at H1 2025, with 54% either pre-let or pre-sold, with an ability to add £23.1 million to annual rent (of which £11.1 million has been secured).

·    Consistent with FY 2024, development letting activity expected to be H2 weighted supported by:

o  0.9 million sq ft of pre-lets in solicitors' hands with an ERV of £8.8 million

o  2.1 million sq ft of further pre-lets in discussions with potential occupiers

o  1.2 million sq ft of speculative space in negotiations with potential occupiers with the potential to add £10.7 million to rental income.

·    Weighted average embodied carbon from developments completed in period of 316 kg CO₂e per m² (H1 2024: 296 kg CO₂e per m²).

·    Development starts for FY25 expected to be consistent with FY24 delivery, at the lower end of our 2-3 million sq ft guidance, whilst at the upper end of our 6-8% yield on cost range.

o  DMA income expected to contribute approximately £15 million to FY25 operating profit.

 

Growth driver 3: Power-first data centres targeting exceptional returns; 9-11% yield on cost from first two schemes

·    Significant occupational interest at 107MW Phase 1 Manor Farm, targeting £34 million per annum of rent at a 9.3% yield-on-cost, significant development profits and on track for delivery in H2 2027.

·    Project 2 site with 125MW and potential £23-25 million per annum of rent, 10-11% yield-on-cost and delivery anticipated in 2028.

·    Accelerated power delivery working with EDF Renewables, the global low carbon energy power generator.

·    Additional c.1GW pipeline of UK opportunities identified.

 

£278.2 million of disposals year-to-date supporting self-funding of organic growth opportunities

·    £204.8 million of disposals completed in the period, comprising:

o  £125.8 million of UKCM non-strategic disposals.

o  £79.0 million of additional disposals from logistics portfolio.

·    £73.4 million of disposals completed or exchanged post period end.

·  In total since completion of the UKCM acquisition, £283.7 million (61%) of UKCM non-strategic assets exchanged or sold:

o  Achieved a 6.5% blended NIY to date;

o  Further £49 million (11%) of UKCM non-strategic assets under offer;

o  Expecting to fully exit non-strategic assets in line with acquisition price.

·   Increased longer-term disposals guidance of £250-350 million per annum to support self-funding of growth opportunities.

 

Balance sheet strength supporting our strategy

·    30.9% LTV at 30 June 2025 (31 December 2024: 28.8%) and Net Debt/EBITDA⁵ of 7.9x (31 December 2024: 7.3x).

o  30.2% LTV on pro-forma basis when including all asset disposals exchanged or completed year to date.

·    3.2% weighted average cost of debt (31 December 2024: 3.1%), with 86% of drawn debt either fixed or hedged.

·    £400 million RCF refinancing with a 5-year term agreed in the period.

·    Over £470 million of available liquidity as at H1 2025.

·    Strong credit rating from Moody's of Baa1 (positive).

 

Results presentation and Q&A

A Company presentation for analysts and investors will take place via a webcast with a live Q&A at 9am (BST) today and can be viewed at:

https://brrmedia.news/BBOX_HY25

 

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

USA: +1 786 697 3501

Password: Tritax Half Year 2025

 

 

Retail investor webcast and Q&A

The Company will also host a live interactive presentation aimed at retail investors on the Engage Investor platform, at 1.00pm (UK time) today.

Colin Godfrey (CEO) and Frankie Whitehead (CFO), who will host the event, welcome current shareholders and interested investors to join. Questions can be submitted prior to the webcast via the Engage Investor platform, or at any time during the live presentation. Investors can sign up to Engage Investor at no cost and follow Tritax Big Box REIT plc from their personalised investor hub.

Register interest and access this event here: https://engageinvestor.news/BBOX_IP2025

 

Notes 

1.     Operating profit before FV movements and other adjustments. 

2.     See Note 8 to the financial statements for reconciliation. 

3.     The anticipated run rate for Development Management Agreement (DMA) income is £3.0-5.0 million per annum over the medium term. We classify income above this as 'additional' development management income, which can be highly variable over time. We therefore present a calculation of Adjusted EPS that excludes additional development management income. £13.3 million of DMA income is included in the 4.63p Adjusted earnings per share in H1 2025. H1 2024: £12.2 million included in 4.35p Adjusted earnings per share). 

4.     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. 

5.     Calculated based on pro-forma EBITDA inclusive of full twelve months contribution of UKCM, adjusted for fair value of UKCM debt at acquisition.

6.     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.

 

For further information, please contact:

Tritax Group

Colin Godfrey, CEO                                                                               +44 (0) 20 8051 5060
Frankie Whitehead, CFO                                                                        [email protected]
Ian Brown, Head of Corporate Strategy & Investor Relations

Kekst CNC

Tom Climie/Guy Bates                                                                            +44 (0) 77 601 60 248 / +44 (0) 75 810 56 415

Email: [email protected]

The Company's LEI is: 213800L6X88MIYPVR714

Notes: 

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 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 recently secured its first data centre development opportunities (amounting to 272MW), and has a pipeline of over 1-gigawatt of further opportunities, offering the potential to deliver exceptional 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 250, FTSE EPRA/NAREIT and MSCI indices. 

 

Further information on Tritax Big Box REIT is available at www.tritaxbigbox.co.uk 

 

Chairman's statement

This was another important period in the ongoing evolution of our business, as the Manager continues to work hard to optimise our performance, embed value and enhance returns to shareholders. The Group delivered another strong financial performance underpinning further dividend progression, by capturing value through successful active management and progressing our development activities, including securing power agreements and sites for our first data centre developments.

Clear growth drivers set to deliver superior risk-adjusted returns

The strategy set out in the Manager's report has created three growth drivers, whose scale and breadth we believe is unique in UK real estate. They are:

·     Capturing record rental reversion through active management: At the period end, the investment portfolio had a level of rental reversion and vacancy of £84 million or 29%, which we are successfully capturing and adding to through our active asset management.

·     Our attractive logistics development pipeline: Our logistics development programme generates best-in-class assets for the investment portfolio and has the potential to more than double our rental income over the longer term, at an attractive yield on cost of 6-8%.

·     Delivering exceptional returns through data centre development: We have made an excellent start to our innovative 'power-first' approach to data centre development and have increased our guidance for the yield on cost in this market to 9-11%. Leveraging our experience in logistics development, adopting a "powered-shell" model, and with significant capex contingent upon planning and successful pre-letting to a strong client, we believe our approach has the potential to deliver exceptional risk adjusted returns to our shareholders.

These core growth drivers have the capacity to increase our Adjusted earnings by 50% by the end of 2030.

Performance and dividends

The quality of our investment portfolio and further income growth from our asset management and development programmes increased Adjusted EPS excluding additional DMA income by 4.6% to 4.29 pence. In line with our dividend policy, and consistent with our distribution methodology, we have declared dividends in respect of the first half totalling 3.83 pence per share, up 4.9%.

The Group remains conservatively financed, with an LTV of 30.9% at the period end. The Manager continues to successfully recycle capital to fund higher-returning opportunities and made further good progress disposing of the non-strategic assets which formed part of the portfolio acquired through the combination with UK Commercial Property REIT Limited ("UKCM") in 2024. We are on track to complete this disposal programme in line with the 24-month timetable we set out. In total, we expect to complete £350-450 million of disposals in 2025, including logistics assets where we have maximised their value in our ownership. We have significant headroom in our debt facilities and successfully refinanced two facilities in the period, with no further maturities falling due before December 2026.

Potential acquisition of Warehouse REIT

We continue to identify and assess opportunities to complement our portfolio with logistics assets that offer attractive rental growth, asset management opportunities and are of value to our clients.  In line with this, on 25 June 2025, we announced a cash and share offer for Warehouse REIT following extensive due diligence. The Board believes the combination with Warehouse REIT would further diversify our logistics portfolio by property size, location and use, offers sizeable near-term rental reversion we can capture, creates immediate financial synergies and generates returns above our cost of capital over the short to medium term. For Warehouse REIT shareholders, our offer provides both value certainty via a cash element plus the ability to participate in the future growth of the combined business. The Board believes the offer as presented is compelling to both Warehouse REIT and Tritax Big Box shareholders, reflecting our informed view on the value of the underlying assets of the business. While the combination is potentially compelling, the Board continues to remain highly disciplined on capital allocation and will assess any M&A opportunities relative to our range of organic opportunities to ensure that capital is appropriately and most efficiently allocated.

Significant earnings growth opportunities supported by a positive outlook

The logistics sector remains highly attractive, with the critical nature of the buildings supporting resilient client demand. The market continues to generate attractive rental growth, vacancy levels for new buildings are steady and speculative deliveries are set to slow in 2026. The fundamentals are therefore supportive of further rental growth.

In addition, the three growth drivers outlined above are set to deliver multi-year increases in earnings for us. In particular:

·    Some 77% or £64.3 million of the investment portfolio's £84 million of rental reversion is available to be captured in the next 3 years.

·     The logistics development pipeline has the potential to deliver £78 million of contracted rental income over the next three years, of which £11 million has already been secured.

·    Our two data centre development schemes have an estimated rental level of £58 million per annum, with the Manor Farm site having the potential to become income producing from 2027, subject to planning and agreeing a pre-let.

To support this growth, we have increased our longer-term disposal guidance to £250-350 million per annum enhancing our ability to self-fund our strategy and earnings ambition.

We are confident of making further progress in the second half of this year and over the years to come.

Aubrey Adams

Chairman

 

Manager's report

UK market review:

Demand diverse as occupiers seek greater supply chain resilience

H1 2025 saw 11.7 million sq ft of take-up across the UK, up from 10.5 million sq ft[1] in H1 2024[2].

The first half of 2025 has been positive overall, with resilient demand despite significant uncertainty created by higher employment costs and US tariffs at the beginning of the year. The period was characterised by two distinct quarters. The market saw just 14 deals in Q1 2025, albeit this totalled 5.0 million sq ft of demand. Activity picked up in May, however, gaining significant momentum through Q2 2025. 6.7 million sq ft of deals completed in the second quarter across 30 transactions².

Second quarter activity has been focused on standing stock with strong interest in both speculatively developed and second-hand buildings. Occupier demand remains diverse, a key attribute of the UK market. Notable transactions include third-party logistics companies ("3PLs") taking large units in the North East and South West to service ecommerce contracts; Chinese retailers and associated 3PLs committing to multiple buildings in the Midlands and demand from supermarket chains for large units (~350k sq ft+). 

Space-under-offer (9.9 million sq ft²) and requirements[3] suggest near-term demand is likely to remain at current levels and in line with recent years. Structural drivers, such as the growth of ecommerce, supply chain resilience and optimisation, and ESG continue to support our sector. In addition, companies are restructuring their supply chains and investing in new facilities with a focus on creating more efficient and resilient networks. This is driving activity in our sector despite the challenging macro-economic backdrop. Specifically:

·    ecommerce and retail operators continue to build out their networks and adopt more technology-based solutions, supported by larger power demands, in part to mitigate higher labour costs;

·    manufacturers are investing domestically as they re-design and selectively re-shore their global supply chains;

·     food retailers are refreshing networks as they look to drive economies of scale by consolidating into larger units, utilise more tech-based solutions (further increasing power requirements) and improve sustainability metrics;

·     and defence companies are active following the government's announcement of additional spending.

We are well positioned to capitalise on these trends through our high-quality, modern investment portfolio and large land portfolio and ongoing development programme. Our occupier hub currently has a similar level of enquiries as compared to late 2024, with a higher proportion at more advanced stages of negotiation. 

Higher vacancy offset by reduced speculative supply going forward

Market vacancy, which reflects ready-to-occupy space, stood at 7.1% at the end of the period, up from 5.6% at Q4 20242. Second-hand vacancy continues to trend higher but from low levels. Having been relatively stable over recent years, speculatively developed new vacancy increased in the period as several schemes completed. However, going forward, less speculatively developed new space will be coming to the market. Speculative space under construction dropped to 7.3 million sq ft at Q2 2025 from 12.8 million sq ft in Q4 2024 and is now at its lowest level since early 20212.

Resilient and attractive levels of rental growth

MSCI UK Distribution Warehouse ERVs increased by 2.4% in H1 2025 (H1 2024: 2.7%). Aggregate data hides significant local market dynamics; these not only relate to geography but also to building size, specification and age. ERV growth has become more building specific, underlining the importance of granular market knowledge and owning and developing the right product in the right location.

Capital markets: investor conviction remains high

CBRE prime market yields remained flat across the period at 5.25%. MSCI UK Distribution Warehouse capital growth totalled 1.8% in H1 2025 (H1 2024: 0.2%).

H1 2025 transaction volumes totalled £3.3 billion4 (H1 2024: £3.5 billion) with a notable uptick in activity through the second quarter. Transaction activity has been driven by big box portfolios and logistics parks of £100 million plus. Forced sellers remain a rarity while investor conviction in the sector remains high. Existing owners are, therefore, choosing to hold onto logistics assets given their confidence in the sector and attractive returns available following a period of repricing.

Strategic and operational update:

A consistent and successful strategy

Our strategy has three interlinked components.

1) High-quality assets attracting world-renowned clients - delivering long-term, resilient and growing income.

2) Direct and active management - optimising the portfolio, adding value and recycling capital.

3) Insight driven development and innovation - creating value, future proofing and capturing occupier demand.

Our approach to each element of the strategy is client-focused and sustainability-led, and includes a rigorous approach to managing risks. Information on how we implemented the strategy during the period is set out in the following sections.

1) High-quality assets attracting world-renowned clients

Our total portfolio comprises:

·      The investment portfolio. These are logistics assets with a lease or agreement for lease in place. We believe our investment portfolio is the strongest in the UK in terms of asset quality, which includes asset location, client financial covenant strength and lease length.

·      The development portfolio. This comprises land, options over land and buildings under construction, generating best-in-class logistics and data centre assets for the investment portfolio (see insight driven development and innovation below).

·      Non-strategic assets. These are typically modern, high-quality non-logistics assets acquired with UKCM, which we are divesting to provide funding for higher-returning opportunities, particularly our development programme.

Investment portfolio and non-strategic assets - key figures

	30 June 2025	31 December 2024	Change
Total portfolio value - investment portfolio (£bn)	5.95	5.77	3.1%
Total portfolio value - non-strategic assets (£bn)	0.24	0.39	(38.5)%
Number of investment assets - investment portfolio	104	102	2.0%
Number of investment assets - non-strategic assets	10	14	(28.6)%
Gross lettable area - investment portfolio (million sq ft)	42.4	41.8	1.4%
Gross lettable area - non-strategic assets (million sq ft)	0.9	1.5	(40.0)%
Estimated rental value - investment portfolio (£m)	373.7	362.9	3.0%
Estimated rental value - non-strategic assets (£m)	22.8	32.5	(29.8)%
Number of clients - investment portfolio	135	128	5.5%
Number of clients - non-strategic assets	43	78	(44.9%)
Vacancy - investment portfolio	5.6%	5.8%	-0.2pts
Vacancy - non-strategic assets	5.2%	4.3%	0.9pts
Total portfolio vacancy	5.6%	5.7%	-0.1pts
WAULT - investment portfolio (years)	10.5	10.6	-0.1 years
WAULT - non-strategic assets (years)	8.0	7.3	0.7 years
	H1 2025	H1 2024	Change
Like-for-like six-month ERV growth - investment portfolio	2.3%	1.9%	0.4pts

Resilient portfolio with embedded opportunities for value creation

The investment portfolio is split between:

·      foundation assets, which provide attractive, lower-risk and resilient long-term income; and

·      value add assets, which offer opportunities for capital or income growth through asset management.

Assets can move between these categories, as our asset management turns value add assets into foundation, or as foundation assets become value add, for example as a lease nears expiry.

At 30 June 2025, our total portfolio comprised:

Investment portfolio	% of GAV
Foundation assets	58.5%
Value add assets	28.7%
Total investment portfolio	87.2%
Development portfolio	9.2%
Non-strategic assets	3.6%
Total portfolio	100.0%

The total portfolio value at 30 June 2025 was £6.82 billion (31 December 2024: £6.55 billion). The capital value increase, across the portfolio was 1.4% higher, reflecting stable yields, further development gains and the benefits of our active asset management, including 2.3% like-for-like ERV growth over the six months.

A broad and well-located client offer

While big boxes make up most of our portfolio, over recent years our investment strategy and development programme have both increased the range of building sizes we can offer our clients. 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 30 June 2025	Contracted rent 31 December 2024
<100k sq ft	11.4%	11.0%
100 - 250k sq ft	10.9%	10.7%
250 - 500k sq ft	28.3%	28.9%
>500k sq ft	49.4%	49.4%

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 2025	31 December 2024
South East	35.3%	35.9%
South West	3.1%	3.0%
East Midlands	14.6%	14.3%
West Midlands	22.5%	22.3%
North East	14.4%	16.0%
North West	8.4%	6.8%
Scotland	1.7%	1.7%

Secure client base underpins income generation

The Group's diversified client base includes some of the world's most-important companies, with 61% 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 number of clients across the investment portfolio increased from 128 to 135 during the period. Investment portfolio vacancy at the period end was 5.6% (31 December 2024: 5.7%).

The table below lists the Group's top ten clients:

Client	% of contracted annual rent		Client	% of contracted annual rent
Amazon	15.6%		B&Q	3.0%
Morrisons	4.4%		Argos	2.9%
Iron Mountain	4.4%		Sainsbury's	2.8%
The Co-Operative Group	3.9%		Ocado	2.6%
Tesco	3.2%		Marks & Spencer	2.6%

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:

·      15.1% are reviewed annually; and

·      79.4% are reviewed in five-yearly cycles, with the timings staggered so there are reviews taking place each year; and

·      5.5% with either no or rent reviews of a different review frequency.

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 2025	% of rent roll at 31 December 2024
Fixed uplifts	9.2%	9.4%
RPI/CPI linked	44.9%	45.0%
Open market	28.6%	31.1%
Hybrid (higher of inflation or open market)	12.1%	12.9%
No reviews[5]	5.2%	1.6%

Leases with inflation-linked reviews specify minimum and maximum rental growth, which average 1.6% and 3.6% 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 Direct and active management section below.

Increasing ERVs provide a substantial and embedded opportunity to grow rental income

At each valuation date, the valuer independently assesses the ERV of each asset in the investment portfolio. This is the rent the property would be expected to secure through an open market letting at that date. At 30 June 2025, the total investment portfolio ERV was £373.7 million (31 December 2024: £362.9 million), which is £83.8 million or 28.9% (31 December 2024: 27.9%) above the contracted rent. We have opportunities to capture the reversionary and vacancy potential across the investment portfolio through open market rent reviews, lease renewals, new leasing across vacant units or lease regears.

In aggregate, we have the potential to capture 77% or £64.3 million[6] of this reversion in the next three years. We have a strong track record of meeting or exceeding ERVs and capturing these uplifts which require either no or very limited capital expenditure.

Vacancy and outstanding reviews
				Contracted rent (£m)						% of contracted rent			ERV (£m)
Vacancy				-						-			23.9
Outstanding reviews from prior periods[7]				4.2						1.5%			6.7
Total				4.2						1.5%			30.6
Rent review and expiries[8]
			H2 2025							2026			2027
Review type	Frequency	Rent (£m)	% of passing			ERV (£m)		Rent (£m)		% of passing	ERV (£m)	Rent (£m)	% of passing		ERV (£m)
Indexation	Annual	20.0	6.4%			21.5		33.1		10.6%	39.6	33.1	10.6%		39.6
	5-yearly	7.8	2.5%			9.8		26.7		8.6%	34.0	17.6	5.7%		23.2
OMR / Hybrid	Annual	0.0	0.0%			0.0		0.0		0.0%	-	4.3	1.4%		4.8
	5-yearly	4.0	1.3%			5.4		22.5		7.2%	30.9	17.7	5.7%		20.0
Fixed	Annual	1.7	0.6%			1.7		10.8		3.5%	10.7	10.5	3.4%		10.4
	5-yearly	0.4	0.1%			-		8.5		2.7%	9.4	6.5	2.1%		8.6​
Total rent reviews		33.9	10.9%			38.4		101.6		32.6%	124.6	89.7	28.9%		106.6
Lease expiries		4.9	1.6%			6.8		9.6		3.1%	13.5	13.5	4.3%		15.3
Total lease events in period		38.8	12.5%			45.2		111.2		35.7%	138.1	103.2	33.2%		121.9

Vacancy levels reflect integration of UKCM portfolio and recently completed speculative developments

Our reported vacancy as at 30 June 2025 was 5.6%, a decrease from 5.7% as at 31 December 2024. Of this vacancy, approximately 3.2% relates to buildings which have been completed from our development programme in the past nine months. We see good levels of interest in these buildings, as evidenced by the letting of a 0.4 million sq ft building shortly after the period end. Taking into account this letting reduces the pro forma vacancy rate by 110 bps to 4.5%. The remainder of the vacancy figure relates primarily to the incorporation of vacant assets through the UKCM acquisition where overall vacancy has remained consistent.

Long duration, full repairing and insuring leases minimise capex and enhance income security

At the period end, the investment portfolio's WAULT was 10.5 years (31 December 2024: 10.6 years), with the foundation assets having a WAULT of 13.0 years (31 December 2024: 13.6 years).

Of total rents:

·      24.7% is generated by leases with 15 or more years to run; and

·      23.2% comes from leases expiring in the next five years, providing near-term opportunities to capture the growing rental reversion within the portfolio, as described above.

Full repairing and insuring ("triple net") leases result in high conversion of gross to net rental income

Most of our 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.

Portfolio quality reinforced by strong sustainability characteristics

EPC ratings are a key benchmark for both investors and occupiers and we are continuing to work with our clients and consultants to improve the EPC ratings of our buildings where possible. We are also constructing all our new logistics developments to a minimum standard of EPC A and BREEAM Excellent.

At 30 June 2025, 97% of the investment portfolio had an EPC rating of C or above (31 December 2024: 98%). At the year end, all assets certified or expected to be certified by BREEAM, while 50.3% had a rating of Very Good or above (31 December 2024: 49.5%).

2) Direct and active management

	Six months to 30 June 2025	Six months to 30 June 2024	Change
Completed disposals (£m gross proceeds)[9]	204.8	-	-
Completed disposals (million sq ft)	1.3	-	-
Completed disposals (£m contracted rent)	13.0	-	-
Acquisitions (£m consideration)	74.3	46.0	61.5%
Acquisitions (million sq ft)	0.6	0.5	20.0%
Portfolio subject to rent review in period (%)	8.7%	6.2%	2.5pts
Proportion of portfolio reviewed (%)	9.7%	7.7%	2.0pts
Change in contracted rent from lease expiries / new lettings (£m)	(1.5)	(2.3)	34.8%
Contracted rent uplifts - reviews and lease events (£m)	5.6	3.4	64.7%
Contracted rent uplifts - reviews and lease events (%)	10.3%	10.7%	-0.4pts
EPRA like-for-like rental growth (%)	2.5%	2.1%	0.4pts

Growing and lengthening income

Through our active management we are making good progress in leveraging the rental reversion opportunity in the investment portfolio, growing income by £5.6 million in the period through 35 initiatives, such as lettings, lease re-gears and rent reviews. Approximately 9.7% of the portfolio was reviewed in the period, with a further 10.9% set to be reviewed in H2 2025. The table below shows the strong rental uplifts from open-market reviews completed, as we capture above-ERV levels of income.

H1 2025 Settled rent reviews and re-lettings

Rent review type	Number	% of contracted rent	Growth in passing rent (£ million)
Index linked	5	4.1%	0.4
Open market / hybrid	6	2.7%	2.0
Fixed	3	2.8%	0.4
Total rent reviews	14	9.6%	2.8
Lease renewals and extensions	15	5.5%	2.6
Non-strategic assets	5	2.1%	0.2
Total all rent reviews and lease events	34	17.2%	5.6

We continue to have encouraging discussions with clients about collaborating across multiple assets and developing their supply chain networks with additional units, working on a portfolio approach rather than single assets. The combination of our investment portfolio and logistics development programme supports our ability to be the landlord of choice for clients.

Successful integration of UKCM logistics assets and maximising value of our urban logistics units

UKCM logistics assets	At acquisition	30 June 2025	Growth
Contracted rent	£34.0m	£38.5m	13.2%
ERV	£48.3m	£50.7m	5.0%
Asset values	£734.1m	£799.2	8.9%
Vacancy	10.5%	9.7%	0.8 pts

It has been a very active period successfully integrating the UKCM logistics assets into our portfolio. With just over 12 months in our ownership, we made significant progress in enhancing the estates, refurbishing selected buildings and undertaking significant engagement with clients to help drive rental growth. UKCM's logistics assets are one of the strongest performing parts of our business, as demonstrated by the 13.2% increase in contracted rent in our ownership.

In addition to UKCM logistics assets, to help capture rental reversion across our urban logistics assets, we have made good progress with works to enhance the estates. The programme includes new signage, amenities such as food and beverage outlets, landscaping incorporating outside seating areas, and increased security provisions, with the mix of initiatives tailored to the needs of each estate and the feedback from clients.

The success of this integration builds on the continued investment we have made in our asset management capabilities. This investment encompasses both team members and the systems and tools they use to effectively manage the full spectrum of logistics assets.

Realising value and recycling capital through disposals

Every six months, we conduct a thorough process to develop a five-year business plan for every asset in the portfolio. This draws on expertise from across our teams, including asset management, ESG, development, power and our analysts. Through this, we identify assets that are candidates for disposal 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 have identified candidates for disposal, we look closely at capital market conditions, to establish whether we are acting at the correct point in the market cycle. We continually profile the most active buyers to establish their desired income profile, coupled with their transactional experience and credibility, to ensure we engage with purchasers with high execution abilities.

UKCM related non-strategic asset disposal progress

When we completed the UKCM combination in May 2024, our plan was to divest the non-strategic assets within 24 months. We made further excellent progress during the period, completing contracts to dispose of three non-strategic assets for a total of £125.8 million. In total since acquisition, we have sold or exchanged to sell £283.7 million of assets, representing 61% of the non-strategic assets. A further £49.0 million of assets are under offer, and we are on track to complete the exit in line within our original two year time frame and at pricing consistent with acquisition costs.

Core logistics asset disposal progress

During the period, we also completed the disposal of a 755k sq ft logistics asset at Doncaster. This was part of a transaction to sell two assets to the same buyer for total consideration of £125.0 million, as reported in our 2024 full-year results. The sale of the first asset completed in 2024.

Total asset disposal progress

Overall, the disposal activity noted above has been conducted at or around book values. Having completed £204.8 million of disposals in H1 2025, we expect the total for the full year to be £350-450 million.

Acquiring investments with asset management potential

We continue to look for investment opportunities that can generate accretive total returns, support our income growth and broaden our client offering. This forms part of our ongoing portfolio optimisation and complements our development activity by typically offering lower risk and more immediate income.

In January 2025, we acquired a 627k sq ft cold store building in Haydock, a core North West location, for £74.3 million. The property is let to Sainsbury's as its principal North West hub. On acquisition the lease had an unexpired term of c.13 years, with a tenant break in c.8 years. The rent is reviewed on an uncapped basis to RPI every five years. The purchase price reflects a 6% NIY which, based on current and expected RPI growth rates, should create a running yield of 7% in 2028.

Enhancing sustainability performance through integration, engagement and active management

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 ESG 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 market-leading ESG 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.

Our ESG strategy has four themes, as set out below, each of which is underpinned by several targets and KPIs. At the period end we were on track with all targets for 2025. Further information on our targets can be found on page 50 of our 2024 Annual Report.

 

Achievements in H1 2025 included:

·      Sustainable buildings: We have continued to enhance the energy efficiency of our buildings, aligned to the decarbonisation programme described below. Three existing units achieved improved EPC ratings during the period. At the period end, 81% of the investment portfolio had an EPC rating of B or above (31 December 2024: 80%).

·      Climate and carbon: In 2024, we introduced a bespoke technology platform to support our asset-by-asset decarbonisation programme. During the period we incorporated decarbonisation plans for each asset into the platform, so we can evaluate our net zero trajectory and include associated capex requirements in our business plans. We expect these initiatives will further improve EPC ratings, with the platform enabling us to forecast EPC improvement across the portfolio. We are continuing to develop the platform, to create a full sustainability repository and analysis tool, combining decarbonisation plans, climate impact, power resilience and biodiversity, with the ability to integrate with our Investment Modelling platform. We are also looking to align our decarbonisation plans with the requirements of the Science-Based Targets initiative.

Other year-to-date activities include increasing the portfolio's solar PV capacity by 3.8MWp, through schemes at the Merseyside, Darlington, Biggleswade and Leamington Spa assets, bringing the total solar PV capacity of the investment portfolio to 28.3MWp. We expect to complete schemes totalling around 7.0MWp on our standing assets and new developments during 2025.

·      Natural capital: We continue to enhance biodiversity on the common parts of our estates, for example through planting schemes and inclusion of bee hives. Information on our approach to biodiversity net gain on new developments can be found in the insight driven development and innovation section. We are trialing different methodologies to evidence the positive impact of our biodiversity initiatives.

·      People and communities: Our social value strategy focuses on developing young people's skills in regions where we own assets. This supports our clients by developing potential employees for the future, thereby enhancing the resilience of the asset and location. Our approach is facilitated by our partnerships with Schoolreaders, the King's Trust and the charity Education and Employers. We are reviewing the various methodologies for measuring social value, which will enable us to track progress and set meaningful targets in this area.

During the period, we retained our MSCI AA rating and our B rating from CDP.

3) Insight driven development and innovation

Logistics developments - key figures	Six months to 30 June 2025	Six months to 30 June 2024	Change
Development completions (million sq ft)	0.4	0.8	(50.0)%
Development completions let (million sq ft)	0.1	0.8	(87.5)%
Development completions let (£m to passing rent)	1.5	7.4	(79.7)%
DMA completions (million sq ft)	0.4	0.0	-
Development starts (million sq ft)	1.1	0.9	22.2%
Of which are DMA	0.3	0.4	(25.0)%
Development starts (£m ERV)	10.1	4.6	119.6%
Development lettings (million sq ft)	0.0	0.1	-
Development lettings (£m)	0.0	1.3	-
Average development yield on cost (%)	-	7.1	-
Planning consents secured (million sq ft)	0.3	1.0	(70.0)%
Total planning consented land (million sq ft)	4.5	6.2	(27.4)%

Continued logistics development progress

We made further good progress with our development pipeline in H1 2025:

·      0.4 million sq ft of developments reached practical completion in the period, with the potential to add £4.1 to passing rent;

·      we started construction on 1.1 million sq ft of logistics space;

·      developments under construction totalled 2.5 million sq ft at the period end, of which 54% has been pre-let or pre-sold; and

·      we reported a 50% reduction in developments reaching completion in the period. This reduction reflected higher completions in the prior period which was attributed to our acceleration of development starts in response to exceptional occupational demand in the 2022/2023 period and the subsequent reversion back to our long-term 2-3 million sq ft of development starts.

We have seen an uptick in occupational interest in recent months, which we expect to convert to increased leasing activity in H2 2025. At the date of this report, we had:

·      completed a 0.4 million sq ft letting at our scheme in Rugby post the period end adding £3.9 million to contractual rent

·      0.9 million sq ft of development lettings in solicitors' hands, with potential annual rental income of £8.8 million.

·      2.1 million sq ft of pre-lets in discussions

·      1.2 million sq ft of speculative space in negotiations with the potential to add £10.7 million to rental income.

We continue to expect development starts for FY25 to be in line with FY24 levels and therefore at the lower end of our 2-3 million sq ft guidance, whilst delivering yields on cost towards the upper end of our 6-8% guidance range. DMA income is expected to contribute approximately £15 million to FY25 operating profit.

A carefully considered and low-risk approach to developing logistics assets

Developing logistics assets complements our investment portfolio by enhancing overall returns, as we target a yield on cost of 6-8% while carefully managing risk. We expect our 2025 schemes to achieve an average yield on cost of 7-8%.

We control the UK's largest land portfolio for logistics development. It has the potential to deliver approximately 39.3 million sq ft of new space through developments, with the scope to generate £347 million of contracted rent. Of this, c.£78 million is deliverable within 36 months, with £11 million already secured. The pipeline is diversified geographically across 26 sites in prime locations and is highly flexible, enabling us to match our clients' requirements from urban or last mile assets to "mega boxes". Once built and let these developments become investment assets for us.

We hold most of the 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 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.

Our Investment Policy limits 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 9.2% of GAV; and

·      speculative exposure (based on aggregated costs) was 3.6%.

The UK's largest land portfolio for logistics development capable of delivering 39.3 million sq ft

We categorise our development portfolio based on the timing of opportunities:

1) Current development pipeline - assets under construction, which are either pre-let, let during construction or speculative developments. The Group owns these sites.

2) 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 pending planning consent or where we have achieved outline planning but have yet to acquire the land.

3) 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 2025, the Group had the following assets in the current development pipeline. The total estimated cost to complete is £77.1 million and the assets have the potential to add £23.1 million to annual passing rents.

	Costs of completion
	H2 2025	H1 2026	H2 2026	Total		Total sq ft	Contractual rent / ERV
	£m	£m	£m	£m		m	£m
Current speculative	30.6	0.5	1.5	32.6		1.2	12.0
Current pre-let	36.9	4.7	2.9	44.5		1.0	11.1
Total	67.5	5.2	4.4	77.1		2.2	23.1

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 5.7 million sq ft of logistics space and delivering £54.7 million of annual rent.

Of this:

·      3.5 million sq ft relates to land with planning consent; and

·      1.5 million sq ft relates to sites where we have planning submission pending or 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 shown below are based on current market rents and therefore assume no further rental growth before the schemes become income-producing.

	Total sq ft	Current book value	Estimated cost to completion	ERV
			(Uncommitted)
		£m	£m	£m
Potential near-term starts in the next 12 months	1.1	24.3	124.2	10.1
Potential near-term starts in the following 24 months	4.6	70.4	552.9	44.5
	5.7	94.7	677.1	54.6

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.

We are awaiting decisions on longer-term planning applications supporting our future development pipeline totalling 4.2 million sq ft at 30 June 2025.

During the period, the Group recorded an impairment against intangible and other property assets of £25.5 million (H1 2024: £0.2 million). The majority of this impairment relates to a single site held under land option where our expectations on the possible likelihood and timing of achieving planning consent changed in the period. Given the sites national significance, including its potential as a lower-carbon rail freight connected logistics hub, planning consent was being progressed through a Development Consent Order (DCO) with the ultimate decision made by the Secretary of State. In March 2025, the Secretary of State did not grant planning consent to the scheme in our proposed form. The impairment represents approximately half of the overall value of the option and associated costs (noting that a proportion of the overall acquisition consideration for DB Symmetry had been allocated to this option). The remaining carrying value on the balance sheet is supported by a third-party opinion of value in respect of the land option valuation. The development team is now revising its plans for the site on the basis of feedback from the DCO process to seek alternative routes to its potential development.

At 30 June 2025, the future development pipeline comprised 1,525 net acres with the potential to support up to 32.4 million sq ft of development and generate around £269.3 million of contracted rent, again assuming no market rental growth.

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 Development Management Agreement (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. DMAs deliver a high-return, capital light but variable source of profit, which we can recycle into other development or investment activity.

Included with the DMA categorisation are pre-sales, where we sell land and then typically undertake development services for the new landowner. In H1 2025, we reached practical completion on a 0.4 million sq ft unit that was pre-sold to Siemens Healthineers. We also started on site for a 0.3 million sq ft DMA for Greggs.

The treatment and impact of DMA income is discussed in the Financial review.

Enhancing ESG through our development activities

ESG is a core element of our approach to development. Our progress in the period included:

·   Sustainable buildings: Two units delivered through our development programme in Merseyside and Darlington achieved EPC ratings of A and A+ respectively, with both also set to achieve BREEAM Excellent ratings. All units in our logistics development programme are built to achieve net zero in construction.

·      Natural capital: Biodiversity net gain regulations are in force for new developments. These commitments can be met by purchasing credits and we have also been reviewing how to meet them through active management of additional land. This links with our active works on the common parts of our estates, as described in the enhancing sustainability performance through integration, engagement and active management section.

Power-first data centres to deliver exceptional returns

We see opportunities to deliver exceptional returns to shareholders through pre-let data centre developments, and made excellent progress towards this in the first half of the year.

Data centre operators need any new asset to have:

·      Significant amounts of power. It is increasingly common for a data centres to consume 50-100MW of power. For context, 100MW is equivalent to the power consumption of Milton Keynes, which has a population of 287,000.

·      Proximity to other data centres. Clustering data centres in an 'availability zone' provides availability, resilience and scalability. London is the UK's key zone, with Slough the most prime.

·      Connectivity to data infrastructure. This ensures quality of service. Cloud services and AI are particularly sensitive to latency caused by remoter locations.

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 ten years, which significantly restricts development of data centres in these locations.

Our power-first model:

·      Utilises our deep in-house understanding of the UK power network.

·      Identifies and secures existing grid connection agreements in key data centre locations.

·      Identifies and secures an appropriate site.

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. We will provide the client with a 'powered shell', in which the client is responsible for fitting out, operating and maintaining the data centre.

In January 2025, we announced that we had purchased a 74-acre site ('Manor Farm') at Heathrow, London, within the Slough Availability Zone. Simultaneously, we established a 50% share in a joint venture with EDF Renewables. This enables accelerated power delivery to the Manor Farm site using pre-existing grid connection agreements, with 107MW to be provided in H2 2027 and 40MW in 2029. This connectivity is supported by utility-scale battery storage. Manor Farm will be one of the UK's largest data centres, with the potential to deliver rental income of approximately £34.0 million per annum and a targeted yield on cost of 9.3%.

The capital requirements for Manor Farm are as follows:

·      Initial funding 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);

·      £185 million of capital expenditure, contingent on successful planning and securing 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.

We have received strong occupational interest in Manor Farm, with NDAs signed with hyper-scalers and significant co-locators. The planning process is ongoing and we are targeting receipt of consent by the end of 2025.

During H1 2025, we also secured a second data centre site, located in the broader London availability zone. It has an initial 125MW with the potential for future expansion, and power delivery scheduled for 2028. Subject to planning and pre-letting, construction could begin in 2027, it has the potential to deliver £23-25 million of annual rent, and a highly attractive 10-11% yield on cost.

We have a pipeline of further grid connection agreements totalling over 1GW. The attractions of this market are reflected in our guidance for powered shell data centre opportunities, with our target yield on cost now increased to 9-11%. We expect our total capital expenditure on data centre development to be around £200 million in FY25 and £100-200 million per annum longer term.

Further information on the data centre market, our power-first model and our pipeline can be found in our 30 June 2025 Capital Markets Day presentation, which is available on our website.

Financial review

Overview

The Group delivered a robust financial performance in H1 2025. Net rental income increased by 17.3%, primarily reflecting the inclusion of the UKCM assets for the full six months. In H1 2024, the UKCM portfolio was consolidated for the final six weeks of the period. Net rental income is also impacted by other net investment activity, along with results from our asset management activity and development activity. The Group recognised £13.3 million of DMA income in the period (H1 2024: £12.2 million).

Adjusted EPS grew by 6.4% to 4.63 pence (H1 2024: 4.35 pence). Adjusted EPS excluding addition DMA income was 4.29 pence (H1 2024: 4.10 pence), an increase of 4.6%. The key constituents of Adjusted EPS growth in the period are shown in the table below:

	Pence
Adjusted EPS in H1 2024	4.35
Less: Additional DMA	(0.25)
	4.10
Net revenue:
- Investment assets	0.08
- Development activity	0.12
- Acquisitions	0.08
- UKCM Acquisition (includes dilution from share issue)	0.08
- Disposals	(0.10)
Administrative Expense	(0.11)
Net finance	(0.13)
Other	0.17
2025 Adjusted Earnings (exc. Add DMA)	4.29
Additional DMA	0.34
2025 Adjusted Earnings	4.63

The total dividend for the period was 3.83 pence per share (H1 2024: 3.65 pence), an increase of 4.9% and in line with the Group's dividend policy.

The EPRA NTA per share at 30 June 2025 was 188.17 pence (31 December 2024: 185.56 pence), partly as a result of the £92.2 million gain recognised on change in fair value of investment properties (H1 2024: £96.5 million).

The business remains soundly financed, with the Group's LTV increasing modestly to 30.9% (31 December 2024: 28.8%), as a result of the net investment made in capital expenditure in the year, which has been used to further progress our logistics developments and commence our deployment into data centre projects. During the period and subsequently, Moody's Ratings has maintained the Company's credit rating outlook at Baa1 (positive) and reaffirmed its long-term corporate credit rating.

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 continues to see Adjusted EPS^[10]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 17.3% to £149.2 million (H1 2024: £127.2 million). Contracted annual rent at the period end was £311.3 million (31 December 2024: £313.5 million), with the movement reconciled below. The annual passing rent at the period end was £300.1 million (31 December 2024: £296.8 million).

Contracted annual rent	£m
As at 31 December 2024	313.5
Development lettings	6.7
Rental reviews and asset management	5.6
Disposals	(13.0)
Lease expiry	(1.5)
As at 30 June 2025	311.3

Other operating income - Development Management Agreement (DMA) 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 it is supported by cash flows.

However, DMA income is more variable than property rental income and its timing can affect our earnings from period to period. In H1 2025, the Group recorded DMA income of £13.3 million (H1 2024: £12.2 million). Our guidance for DMA income for the full year is approximately £15 million.

Over the medium-term, we expect the run rate for DMA income to be £3.0-5.0 million per year. To aid comparability across periods and to give us a recurring earnings figure to base our dividend on, we also calculate Adjusted earnings excluding DMA income above this run rate (see profit and earnings below). The additional DMA income is then available to be recycled into further opportunities across our development pipeline and/or other investment opportunities.

Administrative and other expenses

Administrative and other expenses, which include all the operational costs of running the Group, were £18.4 million (H1 2024: £15.6 million). The Investment Management fee for the period was £13.3 million (H1 2024: £11.4 million), with the increase due to a greater EPRA NTA over the period following the share consideration issued in respect of the UKCM transaction in 2024.

The EPRA Cost Ratio (including vacancy cost) was 13.8% (H1 2024: 12.5%), this was similar to the level in December 2024, but an increase over June 2024 due to the assumed vacancy from the UKCM portfolio. The EPRA Cost Ratio (excluding vacancy cost) was 12.9% (H1 2024: 12.4%), demonstrating our continued prioritisation of a low cost based for the Group relative to our peers.

Operating profit

Operating profit before changes in fair value and other adjustments was £144.1 million (H1 2024: £123.8 million).

During the period, the Group sold £204.8 million of investment assets. When taking into account transaction costs, the Group has recorded a loss on disposal of investment property in the period of £5.3 million.

The Group has recorded an impairment against intangible and other property assets of £25.5 million (H1 2024: £0.2 million) more details of which are provided on page 18 in the Manager's Report.

Financing costs

Net financing costs for the period were £32.2 million (H1 2024: £28.9 million), excluding the loss in the fair value of interest rate derivatives of £4.9 million (H1 2024: £1.3 million loss). The weighted average cost of debt at the period end was 3.21% (31 December 2024: 3.05%), with 86% (31 December 2024: 93%) of the Group's drawn debt being either fixed rate or covered by interest rate caps (see hedging policy below).

The movement in net financing costs therefore reflects the increase in average drawn debt throughout the period, which stood at £2,106.9 million (H1 2024: £1,792.4 million). The Group capitalised £6.7 million of interest expense in the period (H1 2024: £1.6 million), reflecting the capital deployed into active development projects including our data centre projects.

The interest cover ratio, calculated as operating profit before changes in fair value and other adjustments divided by net finance expenses, was 4.5x (H1 2024: 4.3x). The net debt to EBITDA ratio for the 12 months to 30 June 2025 was 7.9x (31 December 2024: 7.3x).

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.

A tax charge of £1.5 million arose in the period, on profits not in relation to property rental business (H1 2024: £3.1 million).

Profit and earnings

Profit before tax was £168.3 million (H1 2024: £190.2 million), with the movement between the two periods primarily reflecting the overall growth in operating profit before changes in fair value and other adjustments, the valuation performance of the Group's investment properties, impairment charges (see portfolio valuation below) plus the difference in net finance expense. IFRS EPS was 6.72 pence (H1 2024: 9.14 pence). Basic EPRA EPS, which excludes the impact of property valuation movements and the impairment charge, was 4.53 pence (H1 2024: 4.49 pence (restated)).

Adjusted EPS[10]for the six months was 4.63 pence (H1 2024: 4.35 pence) (see note 8 for the calculation). The metric we see as closest to recurring earnings is Adjusted EPS excluding additional DMA income above the anticipated run-rate, which was 4.29 pence for the period (H1 2024: 4.10 pence), an increase of 4.6%.

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 2025:

Declared	Amount per share	In respect of three months to	Paid/to be paid
8 May 2025	1.915p	31 March 2025	13 June 2025
6 August 2025	1.915p	30 June 2025	5 September 2025
Total	3.83p

The total dividend for the period of 3.83 pence was up 4.9% on the prior period (H1 2024: 3.65 pence). The pay-out ratio was 89% of Adjusted EPS excluding additional DMA income.

The cash cost of the dividends in relation to the period was £101.7 million (H1 2024: £84.3 million) (see note 9 for the calculation).

Portfolio valuation

The total portfolio value at 30 June 2025 was £6.82 billion (31 December 2024: £6.55 billion), including the Group's share of joint ventures:

	30 June 2025	31 December 2024
	£m	£m
Investment properties	6,414.4	5,929.4
Other property assets	0.9	1.7
Land options	125.8	148.8
Share of joint ventures	25.1	24.4
Assets held for sale	253.4	440.4
Portfolio value	6,819.6	6,544.7

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 gain recognised on revaluation of the Group's investment properties was £92.2 million (H1 2024: £96.5 million gain). The investment portfolio equivalent yield at the period end remained stable at 5.7% (31 December 2024: 5.7%). This was supplemented by continued progress with the development programme and further growth in ERVs, which were 2.3% 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 2025, the Group's investment in land options totalled £125.8 million (31 December 2024: £148.8 million). During the period, we recorded an impairment charge of £25.5 million against the Group's option held on land a single strategic site more details of which are provided on page 18 in the Manager's Report.

The share of joint ventures in the table above comprises 50% interests in certain SPVs, relating to land and land options, as well as 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 £443.8 million in the period (H1 2024: £1,300.1 million). This comprised £76.0 million of investment in the purchase of one big box logistics asset, £166.8 million of capital investment in the Group's logistics development programme and £201.0 million related to our data centre projects, which included acquiring the Manor Farm site, our second data centre site and a grid connection agreement. Capital expenditure in the prior period included the acquisition of the UKCM portfolio, which totalled £1,163.6 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 £12.8 million greater (31 December 2024: £18.0 million greater) than costs expended to date.

Net assets

The EPRA NTA per share at 30 June 2024 was 188.17 pence (31 December 2024: 179.33 pence). The table below reconciles the movement during the period:

	p
As at 31 December 2024	185.56
Operating profit net of finance costs	4.56
Investment assets	2.71
Non-Core assets	(1.12)
Development assets	1.92
Land options	(1.24)
Other	(0.12)
Dividends paid	(4.09)
As at 30 June 2025	188.17

The Total Accounting Return for the period, which is the change in EPRA NTA plus dividends paid, was 3.6% (H1 2024: 3.4%).

Debt capital

At 30 June 2025, the Group had the following borrowings:

Lender	Maturity	Loan commitment	Notional amount drawn at 30 June 2025	Balance sheet carrying value at 30 June 2025
		£m	£m	£m
Loan notes
2.625% Bonds 2026	Dec-26	250.0	250.0	249.8
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	248.4
1.5% Green Bonds 2033	Nov-33	250.0	250.0	247.5
Bank borrowings
RCF (syndicate of seven banks)	Oct-28	500.0	302.0	302.0
RCF (syndicate of eleven banks)	Jun-30	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-27	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
Total		2,612.9	2202.9	2198.6

In June 2025, we announced that we had entered into a new £400.0 million unsecured RCF with a syndicate of existing and new lenders, to refinance the previous £300.0 million RCF and provide further capacity to support our investment and development activities. The new RCF has an initial five-year term and can be extended to seven years with lender consent. It also contained an uncommitted £200.0 million accordion option. It features the same margin ratchet as the previous facility, with an opening margin of 110bps and a margin reduction in future if the Company receives a rating upgrade to A3 or higher from Moody's or the equivalent from S&P or Fitch.

We also refinanced a £150 million facility with Barclays, agreeing a £150.0 million term loan that matures in October 2027 and may be extended by up to three years with lender consent. It aligns with our ESGG strategy, as it incorporates a sustainability linked margin adjustment, as well as benefiting from the same margin ratchet as the new RCF.

Of the Group's drawn debt as at 30 June 2025, 68.6% was at fixed interest rates. 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 on £200.0 million of debt for 12 months, at a cost of £2.5 million. As a result, the Group had either fixed or capped rates on 86.3% of its drawn debt at the period end and the average cost of borrowing at 30 June 2025 was in line with previous year end, at 3.21% (31 December 2024: 3.05%).

Debt maturity

At the period end, the Group's debt had an average maturity of 4.2 years (31 December 2024: 4.5 years). Our policy is to look to refinance the Group's borrowings around 12 months ahead of their maturity. The next maturity falls in December 2026.

Loan to value (LTV)

The Group has a conservative leverage policy. At the period end, the LTV was 30.9% (31 December 2024: 28.8%), with the increase reflecting our capital expenditure on our logistics and data centre development programmes, partially offset by continued good progress with recycling capital through asset disposals.

Net debt and operating cash flow

Net debt at the period end was £2,109.2 million (31 December 2024: £1,883.3 million), comprising £2,202.9 million of gross debt less £66.9 million of available cash held (31 December 2024: £1,963.9 million gross debt, £80.6 million cash).

Net operating cash flow was £100.0 million for the six months (H1 2024: £84.4 million).

Guidance

The table below summarises our current guidance:

Aspect	Guidance
Portfolio rental reversion capture	Potential opportunity to capture 77% in the next three years.
Logistics - development capex	FY25: £200-250 million; longer-term: £200-250 million per annum
Logistics - development yield on cost	FY25 development starts: 7-8%; longer-term: 6-8%
Data centre - development capex	FY25: £200 million; longer-term: £100-200 million per annum
Data centre - development yield on cost	Targeting 9.3% for Manor Farm; longer-term: 9-11%
DMA income	Approximately £15 million for FY25. Expected run rate of £3.0-5.0 million per year thereafter, although we will guide accordingly
Disposals	FY25: £350-450 million; longer-term: £250-350 million
LTV	Below 35%

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 2025, 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 £410.0 million of undrawn commitments under our senior debt facilities and £66.9 million of cash, of which £77.1 million (see note 20) was committed under various development and purchase contracts. Our loan to value ratio stood at 30.9%, with the debt portfolio having an average maturity term of approximately 4.2 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 6 August 2026.

Credit rating

The Group has a Baa1 long-term credit rating and positive outlook from Moody's Investor Services.

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 sold or exchanged to sell £73.4 million of investment assets.

 

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.	3.6% for the six months to 30 June 2025 (H1 2024: 3.4%, FY 2024: 9.0%)
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.	3.83p per share for the six months to 30 June 2025 (H1 2024: 3.65p, FY 2023: 7.66p)
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.	188.17p at 30 June 2025 (30 June 2024: 179.33p, 31 December 2024: 185.56p).
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.	30.9% at 30 June 2025 (30 June 2024: 29.9%, 31 December 2024: 28.8%).
5. Adjusted earnings per share	The Adjusted EPS reflects our ability to generate earnings from our portfolio, which ultimately underpins our dividend payments.	4.63p per share for the six months to 30 June 2025 (H1 2024: 4.35p, FY 2024: 8.91p) Excluding additional development management income, Adjusted EPS was 4.29p (H1 2024: 4.10p). See note 8 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.	10.3 years at 30 June 2025 (30 June 2024: 10.1 years, 31 December 2024: 10.3 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 2024 (2023: 85/100, 4 Green Star rating) 99/100 and 5 Green Star rating for developments for 2024 and the GRESB 2024 Regional Listed Sector Leader and Regional Sector Leader for Europe, and Global Listed Sector Leader and Global Sector Leader, all for the Industrial sector

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.	£112.4 m / 4.53p per share (H1 2024: £91.8m / 4.49p per share (restated), FY 2024: £202.3m / 8.93p 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.	£4,668.0m / 188.17p per share as at 30 June 2025 (30 June 2024: £4,448.7m / 179.33p per share, 31 December 2024: £4,603.2m / 185.56p 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.	£5,131.8m / 206.87p per share as at 30 June 2025 (30 June 2024: £4.885.9m / 196.96p per share, 31 December 2024: £5,048.5m / 203.51p 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.	£4,817.8m / 194.21p per share as at 30 June 2025 (30 June 2024: £4,601.2m / 185.48p per share, 31 December 2024: £4,777.8m / 192.60p 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.	4.44% as at 30 June 2025 (30 June 2024: 4.36%, 31 December 2024: 4.26%).
6. EPRA 'Topped-Up' NIY	This measure should make it easier for investors to judge for themselves how the valuations of two portfolios compare.	4.66% as at 30 June 2025 (30 June 2024: 4.71%, 31 December 2024: 4.61%).
7. EPRA Vacancy	A "pure" (%) measure of investment property space that is vacant, based on ERV.	5.6% as at 30 June 2025 (30 June 2024: 3.8%, 31 December 2024: 5.7%).
8. EPRA Cost Ratio	A key measure to enable meaningful measurement of the changes in a group's operating costs.	13.8% including vacancy costs (H1 2024: 12.5%, FY 2023: 13.6%). 12.9% excluding vacancy costs (H1 2024: 12.4 %, FY 2024: 12.6%).
9. EPRA LTV	A key shareholder-gearing metric to determine the percentage of debt comparing to the appraised value of the properties.	31.8% as at 30 June 2025 (30 June 2024: 31.0%, 31 December 2024: 30.1%).