Results for the

 six months ended

30 June 2026

 

 

 

 

5 August 2026

Unlocking embedded rental growth; 5.1% EPRA like-for-like rental growth
Delivering value through logistics development. Near doubling of secured power to 507MW
Increased ambition to grow adjusted EPS by 65%¹ by 2030/31

 

H1 2026 key figures 

	30 June 2026	30 June 2025	Change
Net rental income	£173.3m	£149.2m	16.2%
Operating profit2, 7	£152.9m	£144.1m	6.1%
Adjusted earnings per share (ex. all DMA income) 4, 7	4.41p	4.12p	7.0%
Adjusted earnings per share3,7	4.41p	4.63p	(4.8)%
IFRS earnings per share	2.80p	6.72p	(58.3)%
Dividend per share	4.00p	3.83p	4.4%
Dividend pay-out ratio (ex. all DMA income) 4, 7	90.7%	93.0%	(2.3)pts
Total Accounting Return7	1.3%	3.6%	(2.3)pts
EPRA cost ratio (excluding vacancy cost) 7	12.2%	12.9%	(0.7)pts
EPRA cost ratio (including vacancy cost) 7	13.5%	13.8%	(0.3)pts
	30 June 2026	31 December 2025
Contracted annual rent roll	£355.7m	£360.9m	(1.4)%
EPRA Net Tangible Assets per share7	185.9p	187.8p	(1.0)%
IFRS net asset value per share	185.6p	187.2p	(0.9)%
Portfolio value5, 7	£7.68bn	£7.89bn	(2.7)%
Loan to value (LTV)7	32.9%	33.2%	(0.3)pts

 

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

"The past six months further evidence Tritax Big Box's ability to capitalise on the opportunities within its control in a market environment that continues to reward quality, discipline and execution. We delivered attractive growth in recurring earnings, underpinned by higher rental income, the successful integration of the Blackstone portfolio and continued progress in capturing the substantial rental reversion embedded within our investment portfolio. Critically, our proactive approach and high-quality portfolio have helped offset market-wide declines in property values in the period. Our logistics development platform continues to create value through new lettings, development delivery and a strong occupier pipeline.

"Importantly, the securing of planning permission at Manor Farm represents a major demonstration of our power-first data centre approach, creating valuation gains, and future earnings growth to drive value creation for shareholders. The near doubling of our secured power to 507MW deepens our pipeline of data centre opportunities in a market that is starved of incremental supply. Combined with the proposed Equity Issue announced today, the enhanced data centre opportunity gives us the ambition to grow adjusted EPS by 65% by 2030/2031."

Attractive earnings growth delivered by higher rental income and cost-efficient structure

·    16.2% increase in net rental income to £173.3 million, driven by the Blackstone acquisition and continued operational execution with strong like-for-like rental growth capture.

·    7.0% increase in Adjusted EPS (excluding all Development Management Agreement (DMA) income) to 4.41 pence (H1 2026: 4.12p), recurring earnings momentum maintained.

·    No DMA income recognised in the period (H1 2025: £13.3 million), resulting in reported Adjusted EPS falling to 4.41 pence from 4.63 pence in the prior year.

o  DMA income can be variable by its nature, and the Board expects DMA income to be a proportionately smaller component of earnings moving forward. As such, and to simplify its presentation, we have reported an Adjusted EPS figure fully with and fully without DMA income.

·    IFRS EPS reduced to 2.80 pence due primarily to portfolio valuation movements, including a £15.8 million revaluation deficit⁸ reflecting a modest softening of yields during the period, compared with a £92.2 million surplus in the prior period.

·    EPRA cost ratio (excluding vacancy costs) improved to 12.2%, reflecting scale benefits and a reduced effective management fee.

·    Contracted annual rent roll of £355.7 million, with asset disposals reducing rent roll by 1.4% with proceeds deployed into higher-return growth opportunities.

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

·    Record portfolio reversion of 29.2% supports a clear pathway to future earnings growth, with £103.9 million of potential additional rent embedded within portfolio.

·    5.1% EPRA like-for-like rental growth reflects successful execution of our active asset management strategy (H1 2025: 2.5%).

·    £8.6 million of additional annual rent secured in the period, up 54% on the prior period (H1 2025: £5.6 million), demonstrating continued success in converting reversion into contracted income.

·    Near-term earnings visibility remains strong, with £23.1 million of further rental reversion capture opportunities either in progress or scheduled for review in H2 2026.

·    Approximately 72% of portfolio reversion is expected to be captured in the next 3 years.

 

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

·    £4.9 million of annual rent secured through development lettings in the period, supporting future earnings growth.

·    7.4% yield on cost delivered on completed and leased developments in period achieving higher end of guidance.

·    £13.0 million of potential future passing rent under construction, of which £9.8 million is already secured and expected to commence in H2 2026.

·    Strong occupier engagement across the development portfolio, with £7.6 million of rent in solicitors' hands and a further £6.8 million in advanced negotiations with occupiers.

·    Development capex temporarily moderated by planning determination delays, with full year deployment expected to be within the £150-250 million range.

·    Continued focus on low-carbon development delivering completed assets with weighted average embodied carbon of 347.9 kg CO₂e per m² (FY 20259: 433.7 kg CO₂e per m²) on a whole site basis.

Growth driver 3: Power-first data centres targeting exceptional risk-adjusted returns

·    Planning consent secured for Manor Farm, marking a major demonstration of our power-first data centre development strategy and contributing to development gains in the period.

o  107MW Phase 1 Manor Farm pre-let in solicitors' hands, targeting £34 million of annual rent at a 9.3% yield on cost.

·    Secured an additional 235MW of power, further deepening our data centre pipeline with targeted 9-11% yield on with delivery expected from 2030.

·    Planning milestones and prospective pre-letting activity driving development valuation gains supporting EPRA NTA and Total Accounting Returns.

·    Further opportunities progressing across our data centre pipeline exceeding 1GW, targeting 9-11% development yields and significant profits creating a significant long-term growth opportunity.

Rental growth supporting capital values

·    1.9% like-for-like ERV growth across the logistics portfolio during the period, reflecting continued occupier demand.

·    £7.68 billion portfolio value at 30 June 2026 (31 December 2025: £7.89 billion), with portfolio equivalent yield remaining broadly stable at 5.8% (31 December 2025: 5.7%).

·    Portfolio capital values declined by 0.2% (net of capex), with rental growth, development gains (including from Manor Farm) and asset management activity mostly offsetting valuation movement from market induced yield expansion.

·    Total Accounting Return of 1.3%, with earnings growth offset by modest market induced property revaluation declines and land option impairment.

£344.0 million of disposals year-to-date supporting development-led growth opportunities

·    £259.1 million of disposals completed in the period ahead of book value or acquisition price (in respect of UKCM assets), comprising:

o  £33.4 million of UKCM non-strategic disposals;

o  £225.7 million of disposals from logistics portfolio.

·    £84.9 million of UKCM non-strategic disposals exchanged or completed post period end.

·    The disposals of all UKCM non-strategic assets have now been either completed or exchanged, save for one final building which is under offer, at levels ahead of the implied acquisition price.

·    c.£1.0 billion of disposals achieved since 2022, ahead of book valuations overall. 

Balance sheet strength supporting our strategy

·    Loan-to-value reduced to 32.9% (31 December 2025: 33.2%), reflecting continued progress with our disposal programme and disciplined capital allocation.

o  Pro forma LTV of 32.1% including £84.9 million of disposals exchanged or completed post period end.

·    Net Debt / EBITDA improved to 7.9x⁶ (31 December 2025: 8.6x), supported by earnings growth and disposal proceeds.

·    Weighted average cost of debt remained unchanged at 3.6%, with 76% of drawn debt fixed or hedged, providing significant protection against interest rate volatility.

·    Strong liquidity position with over £530 million of available cash and undrawn facilities available to support future growth opportunities.

·   Investment grade A3 credit rating maintained by Moody's, reflecting the resilience of the portfolio, conservative leverage and strong financing platform.

 

Proposed Equity Issue to unlock next wave of data centre growth and returns

The Group today announces its intention to conduct a non-pre-emptive placing of new ordinary shares (the "Equity Issue") to raise approximately £350 million of gross proceeds (approximately 8% of current issued share capital). Full details of the proposed Equity Issue are contained in a separate announcement released by the Company.

The Equity Issue is intended to unlock the next wave of data centre growth and returns. The Company intends to use the net proceeds to advance its enlarged pipeline of data centre development opportunities including the early-stage and longer-term capex requirements of two additional data centre schemes totalling 235MW in the Greater London Availability Zones deliverable between 2030-2031. In addition, the proposed Equity Issue enhances the Group's financial flexibility complementing its disciplined approach to capital allocation. Completion of the proposed Equity Issue is subject to shareholder approval at a General Meeting to be held on 24 August 2026.

 

Results presentation and Q&A

A Company presentation for investors and analysts will take place via a webcast at 8.30am (UK time) on Thursday 06 August 2026, which can be accessed via:  https://brrmedia.news/BBOX_HY26

 

If you would like to ask a question verbally rather than through the webcast viewer, please join the presentation conference call:

UK: +44 (0) 33 0551 0200                       UK Toll Free: 0808 109 0700

USA Local: +1 786 697 3501                  USA Toll Free: 866 580 3963

Password:  Tritax Big Box HY26

A replay of the presentation will also be made available on the Company website.

 

Notes 

1.     65% growth potential by the end of 2030/31, with the baseline reference being the FY24 Adjusted earnings per share of 7.9p. Previous ambition of  50% growth potential by the end of 2030, with the baseline reference being the FY24 Adjusted earnings of £182.4 million. This should not be considered a profit forecast but an ambition. It assumes no material deterioration in macroeconomic conditions, including inflation, interest rates and GDP growth; sustained structural demand in key markets; investment markets remain open and ability to dispose of assets at or near book values. Excludes all DMA income or portfolio value movements.

2.     Operating profit before FV movements and other adjustments. 

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

4.     The Company has previously reported two key performance indicators in the form of Adjusted Earnings per share and Adjusted earnings per share (excluding additional DMA Income). In the period we have replaced the second of these key performance indicators. Previously this was defined as 'Adjusted Earnings (excluding additional DMA Income)' and this would have been inclusive of up to £4 million of DMA Income per annum. This has been revised to 'Adjusted Earnings (excluding DMA Income)', which now removes all DMA Income recognised in the period. The first key performance indicator, being Adjusted Earnings per share, continues to include all DMA Income recognised in the period and remains unchanged.

5.     The Portfolio Value includes the Group's investment assets and development assets, land assets held at cost, the Group's share of joint venture assets and other property assets. 

6.     Calculated based on 12-month pro-rated EBITDA inclusive of full twelve months reversion guarantee contribution from Blackstone acquisition and adjusted for fair value of UKCM debt at acquisition.

7.     An alternative performance measure. The Group uses a number of financial measures to assess and explain its performance, some of which are considered to be alternative performance measures as they are not defined under IFRS. For further details, see the Financial Review and Notes to the EPRA and other key performance indicators section, as well as definitions in the Glossary.

8.     Includes the fair value adjustment on assets held for sale (see note 12).

9.     Figure restated from previously reported 445kgCO₂e/m² due to updated information post year end.

 

For further information, please contact:

Tritax Group

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

Kekst CNC

Guy Bates / Lucy Besser                                                                    Tel:  +44 (0) 75 810 56 415 / +44 (0) 77 798 73 440

Email: [email protected]

The Company's LEI is: 213800L6X88MIYPVR714

Notes: 

Tritax Big Box REIT plc (ticker: BBOX) is the largest listed UK investor in high-quality logistics warehouse assets and controls the largest logistics-focused land platform in the UK. Tritax Big Box target attractive and sustainable returns for shareholders by investing in and actively managing existing built investments and land suitable for logistics development. The Company focuses on well-located, modern logistics assets, typically let to institutional-grade clients on long-term leases with upward-only rent reviews and geographic and client diversification throughout the UK. Additionally, having adopted a "power-first" approach, the Company has secured its first data centre development opportunities, and has a current total opportunity of over 1 gigawatt of power capacity, offering the potential to deliver exceptional risk-adjusted returns on an accelerated basis.

 

The Company is a real estate investment trust to which Part 12 of the UK Corporation Tax Act 2010 applies, is listed on the Official List of the UK Financial Conduct Authority and is a constituent of the FTSE 100, FTSE EPRA/NAREIT and MSCI indices. 

 

The Company's ordinary shares have not been and will not be registered under the US Securities Act 1933, as amended (the "Securities Act"), or the securities laws of any state or other jurisdiction of the United States, and may not be offered or sold directly or indirectly in or into the United States except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and in compliance with the securities laws of any state or any other jurisdiction of the United States.

 

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

Chairman's statement

Tritax Big Box has assembled a unique combination of logistics expertise, development capability, deep occupier relationships and, more recently, a proven ability to originate and progress power-enabled sites for digital infrastructure. These capabilities are difficult to replicate and are creating compelling, long-term growth opportunities for shareholders. By investing in logistics real estate and data centres our business is optimally positioned in two markets underpinned by global mega trends providing the potential for significant growth. In addition, the UK has specific characteristics which amplify these opportunities further by constraining supply, most notably due to planning and power provision, creating ideal conditions for enduring rental growth.

Across logistics real estate, occupiers recognise they must invest for the long term to remain competitive, including spending on automation to deliver cost savings and efficiencies. They continue to require modern, efficient and sustainable infrastructure. Meanwhile, demand for data centres in the UK is expected to grow fourfold by 2030^[1], while supply of new schemes will remain constrained by a scarcity of power and the UK's complex planning regime.

At the same time, the quality of the income generated by our investment portfolio is highly resilient and desirable in times of macroeconomic and political uncertainty, supported by long leases, strong customer covenants and assets that are critical to occupiers' operations.

The Company's inclusion in the FTSE 100 index from 2 March 2026 reflected the scale and ambition of the business. Today, with a near doubling of our secured power pipeline and significant opportunities across asset management, development and disciplined capital allocation, we have increased our ambition to grow Adjusted EPS by 65% between 2024 and 2030/31. We believe this combination of growth drivers is unique in UK real estate and positions the Company to deliver exceptional risk-adjusted returns for shareholders.

Delivering against our three growth drivers

The period has demonstrated the value of consistent strategic execution, as we successfully deliver against our three growth drivers.

Growth driver 1: Capturing record rental reversion through active management

At the period end, the portfolio had approximately £103.9 million of embedded rental reversion and vacancy, and we expect to be able to capture 72% of this over the next 3 years, through rent reviews, lease renewals and leasing activity. Asset management initiatives completed during the half generated £8.6 million of additional annualised rental income and rental uplifts averaged 10.5%. With a significant amount of lease reviews in progress, and scheduled lease events second half weighted, which together provide the potential to capture £23.1 million of incremental contracted rent, we expect to see further positive momentum in asset management.

Within this, the urban logistics portfolio we acquired from Blackstone last year is performing extremely well. We have actively engaged with our new clients and made good progress building strong relationships with them. This has enabled us to complete over 60 asset management initiatives, growing rental income by 4.4% and capturing rental uplifts averaging 25%. This has reinforced our conviction in the original investment thesis and the substantial rental reversion embedded within those assets.

Growth driver 2: Delivering best in class logistics developments

Our logistics development platform remains one of the UK's most attractive and provides a flexible source of future growth. During the period, we secured 0.5 million sq ft of development lettings, adding £4.9 million of annual contracted rent, with a further £7.6 million of annual rental income in solicitors' hands. Our development pipeline, which is controlled through long-dated, capital-efficient land options, has the potential to deliver approximately £354 million of future annual rent.

The timing of new development starts during the period was affected by planning determination delays on a small number of schemes. As a result, logistics development capex in H1 2026 was lower than originally anticipated. Importantly, these delays are procedural rather than demand-led and do not alter our confidence in the underlying opportunity set.

While macroeconomic and political uncertainty, including heightened geopolitical tensions, continues to influence the pace of occupier decision-making, underlying demand remains resilient. Occupier engagement across the portfolio is strong and we have a substantial pipeline of opportunities capable of delivering approximately £75 million of additional rental income over the near to medium term.

Growth driver 3: Delivering exceptional returns through data centre development

The most strategically significant development during the period has been the continued advancement of our data centre pipeline. Most notably, the receipt of planning consent at our scheme at Manor Farm, our first scheme, represents proof of concept for our power-first approach to creating data centres, validating our ability to identify, secure and advance opportunities in one of the world's most supply-constrained digital infrastructure markets.

The Manor Farm scheme benefits from 107MW of secured power capacity and has the potential to generate approximately £34 million of annual rent on completion at a very attractive 9.3% yield on cost. Our second scheme, Chelmsford benefits from 125MW of power and has the potential to generate a 10-11% yield on cost, with delivery expected in 2029.

While practical completion on the Manor Farm data centre scheme is expected in Q2 2028, major development milestones (such as obtaining planning permission or achieving a pre-let) generate development valuation gains which enhance the total returns delivered by the Company. With the successful planning decision at Manor Farm in June 2026, we are already beginning to deliver development gains driving shareholder returns. The attractive development gains will precede the income returns and it is pleasing that within 18 months of launch of our data centre programme we are already delivering attractive financial benefits to the Company.

The Company also entered into a development management agreement (DMA) with the Manager for our second data centre site at Chelmsford. The Board believes this DMA approach provides flexibility, aligns the remuneration of the Manager with successful delivery of data centres and does not encumber the Company with a higher fixed cost base associated with a large development capability. In addition, half of the profit share paid to the Manager is formed of shares in the Company, further aligning interests. The Company also benefits from a "first right of refusal" over all data centre related opportunities identified by the Manager, creating a potential opportunity of over 1 gigawatt.

As we announced today, we have nearly doubled the amount of secured power we control with a further 235MW, enabling us to develop two additional schemes and bringing our total secured power to 507MW. The two new schemes target £50-60 million of data centre rental income and £300-400 million of capital profits in aggregate. Consistent with Manor Farm and Chelmsford, these schemes are targeting yields on cost of between 9-11%, profit on costs of greater than 50% assisting in delivering exceptional risk-adjusted returns to shareholders. The schemes are in the Greater London availability zone. While there are key milestones to deliver, we anticipate them reaching practical completion in 2030/31, with meaningful capital value growth driving NTA performance at each development milestone ahead of significant rental income generation upon practical completion. The proposed Equity Issue supports the delivery of this growing pipeline, complementing our capital rotation activities.

The Board believes that data centres represent one of the most compelling opportunities in UK real estate, with the potential to deliver exceptional risk-adjusted returns to Tritax Big Box shareholders with an anticipated yield on cost of 9-11%.

Performance and dividends

The Group delivered strong operational and financial performance during the first half. Net rental income rose by 16.2% and Adjusted earnings per share (excluding all DMA income), which represents the recurring earnings potential of the business, increased by 7.0% to 4.41 pence (H1 2025: 4.12 pence). DMA income can be variable by its nature, and given the recent growth of the Group, the Board expects DMA income to be a proportionately smaller component of earnings moving forward. As such, and to simplify its presentation, we have reported an Adjusted EPS figure with and without all DMA income.

During the period, we reported a 1.3% Total Accounting Return, the reduction from 3.6% in H1 2025 reflecting significant DMA income recognition of £13.3 million in the prior period, combined with a reduction in property values and an impairment on certain land options. Due to the higher interest rate environment experienced in many global markets, including the UK, during the period we experienced modest market-wide yield expansion. Critically, due to the underlying high-quality of our portfolio and the attractive levels of rental growth we are able to deliver, we were able to mitigate much of this market-wide yield movement resulting in a modest 0.2% reduction in portfolio value.

Consistent with our guidance at the time of the acquisition of assets from Blackstone in October 2025, the Manager has made notable progress further strengthening the balance sheet. £259 million of asset disposals in the period contributed to a reduction in our period-end loan-to-value to 32.9% (31 December 2025: 33.2%). Including assets exchanged since the period end, disposals totalled £344 million, reducing pro forma loan-to-value further to 32.1%. At the period end, we had available liquidity of over £530 million.

The Board has declared interim dividends totalling 4.00 pence per share in relation to the six months, an increase of 4.4% on the prior year.

Significant earnings growth opportunities supported by a positive outlook

The substantial rental reversion embedded within our portfolio is the most-immediate driver of earnings growth. We continue to see significant opportunities to convert that reversion into contracted income through lease events and new lettings. The strong performance of the assets acquired from Blackstone gives us additional confidence in the scale of the opportunity and our ability to realise its potential over the coming years.

Complementing this, our logistics development programme remains well positioned to benefit from attractive long-term occupational fundamentals. While macroeconomic and political uncertainty continue to influence occupier behaviour, across our development portfolio we are seeing continued strong levels of occupier engagement, enquiry activity and active negotiations, albeit deals are taking time to complete. With a range of recently completed buildings with a potential rental income value of £18.5 million, and a flexible land platform capable of accommodating a range of buildings, we are well positioned to capture this demand.

The data centre platform has also achieved an important value creation milestone with planning consent at Manor Farm supporting total accounting returns and a prospective pre-let representing a further opportunity to crystallise value in the near term. Having already nearly doubled our secured power pipeline to 507MW, the proposed equity issuance will enable the Company to unlock the next wave of data centre development opportunities. With a targeted yield on cost of 9-11%, across the pipeline, we are confident the Company can generate exceptional risk-adjusted returns for shareholders through one of the most attractive long-term opportunities in the UK real estate market.

The progress achieved during the first half demonstrates that our strategy is delivering and that our future growth is supported by multiple, complementary sources of value creation. With record rental reversion, a high-quality logistics development pipeline and a growing data centre platform capable of generating exceptional risk-adjusted returns, we believe Tritax Big Box is uniquely positioned within UK real estate. Supported by a resilient income base, significant liquidity and disciplined capital recycling, we are well placed to deliver our enhanced ambition of growing Adjusted earnings by 65% by 2030/31 and to translate that growth into attractive long-term shareholder returns.

 

Aubrey Adams

Chairman

Manager's report

UK logistics market - demand from a diverse range of sectors:

Healthy fundamentals supporting rental growth

H1 2026 saw 10.9 million sq ft of take-up (H1 2025: 13.0 million sq ft) across 43 transactions^[2]. H1 2026 saw a similar number of transactions compared to the prior year, demonstrating robust occupier activity.

A key attribute of the UK market is that demand comes from a diverse range of sectors. In the first half of the year:

·     Manufacturing activity included transactions from defence and Asian automotive occupiers.

·     Traditional retailers, which increasingly operate omni-channel supply chains, remained active. This included our new letting to Currys at Newark alongside an extension of the lease on an adjacent Currys unit.

·     Third-party logistics companies ("3PLs") continued to account for a significant share of demand. Following a period of network consolidation, many operators now have limited available capacity and are seeking additional space to support new contract wins.

E-commerce was the standout sub-sector during the period, with activity from both established operators and newer market entrants. The East Midlands was the most popular region, accounting for 47% of total take-up in H1^[2].

·     Established ecommerce occupiers leased several buildings and signed contracts with 3PL providers, which supported additional real estate commitments. Demand for both large speculative developments and existing second-hand stock was particularly strong.

·     Chinese entrants continued to expand their UK operations, typically through associated Chinese 3PL providers. Most committed to immediately available standing stock, with requirements generally focused on buildings in the 200,000-400,000 sq ft size range.

 

Market vacancy held flat across H1 at 7.1% (Q4 2025: 7.1%) with little change in either newly developed or second-hand vacant space^[2]. Local market dynamics remain variable, and pockets of under-supply continue to emerge; building size, specification, and location are all important. This has been evident in the Midlands where recent lettings mean larger, modern buildings are becoming increasingly scarce.  At the same time, the speculative development pipeline remains low with just 6.8 million sq ft of space under construction nationally (Q4 2025: 6.8 million sq ft), almost half the 12.8 million sq ft recorded as recently as H2 2024^[2].

Healthy occupier demand, constrained supply and a nuanced vacancy picture continue to support rental growth in the UK big box logistics market. MSCI UK Distribution Warehouse ERVs increased by 2.1% in H1 2026 (H1 2025: 2.4%).

Urban logistics fundamentals remain strong

Vacancy in buildings under 100,000 sq ft remains around 6% with a stable demand picture supported by lower levels of completions and buildings under construction[3]. Cost pressures remain a key consideration for occupiers, driving a continued focus on optimising existing space and supporting lease regears and extensions. At the same time, selected sub-sectors with strong structural growth drivers, such as parcel carriers, are increasingly pursuing expansion strategies, supporting new leasing commitments. MSCI UK industrial (excluding distribution warehouse) ERVs increased by 2.3% in the period.

Quality assets continue to attract capital

Investment volumes totalled £2.1 billion3 in H1 2026 (H1 2025: £3.3 billion) as global geopolitical events weighed on market activity. Transaction completions were subdued through April and May as investors assessed the implications of events in the Middle East.

During this period, however, conviction buyers remained engaged. Investor confidence improved towards the end of the half, supporting the completion of several portfolio and single-asset transactions late in the period.

Agents' views on prime pricing remained mixed. CBRE and Knight Frank adjusted their prime yields upwards, with CBRE moving 25 basis points to 5.50% (Q4 2025: 5.25%). In contrast, Savills and JLL held prime yields flat citing evidence that pricing for high-quality assets with strong income and covenant characteristics remained resilient.

Our valuation performance during the period reflects this trend. High-quality logistics assets of the type that we develop and own are attracting investor interest and we continue to receive unsolicited approaches for buildings at pricing consistent with end of 2025 levels.

Data centres - strong demand amid limited capacity

Hyperscale cloud, AI and sovereign compute requirements continue to drive unprecedented demand for data centres across Europe. London remains the region's primary demand hub, but growth is constrained by limited power availability and delivery timelines that result from navigating planning, energisation and delivery.

Large-scale projects capable of meeting occupier requirements within required timeframes, such as Manor Farm, remain rare. This supply constraint is reflected in the delivery pipeline, with new completions expected to fall to approximately 114MW in 2026 from 231MW in 20254. The limited availability of suitable capacity, despite sustained occupier demand continues to support strong market fundamentals.

Strategic and operational update:

A clear and consistent strategy that continues to deliver

Our strategy is designed to capture the significant value inherent in our portfolio and the opportunities presented by our markets. In doing so, we aim to deliver attractive and sustainable growth in income, dividends and capital values, and resilient performance through the economic cycle.

The three mutually reinforcing components of our strategy are:

1)   Owning high-quality assets that attract world-leading clients - delivering long-term, resilient and growing income, enhanced by urban logistics assets that can frequently capture market rents.

2)   Direct and active management - protecting, adding and realising value from the investment portfolio.

3)   Insight driven development and innovation - creating value, future-proofing and capturing occupier demand by developing new logistics and data centre assets.

Sustainability is an intrinsic part of our strategy and informs all our decision-making. We believe our focus on sustainability preserves and creates value and supports overall business performance. Our approach is also client centric, aligned with the growing recognition of the benefits modern and efficient logistics real estate can provide.

A strategy that delivers three powerful growth drivers

Our successful implementation of our strategy over more than a decade has given us the UK's strongest investment portfolio of logistics assets, the UK's largest logistics-focused land platform for development and a c.1GW pipeline of data centre development opportunities. This unique position presents us with three multi-year growth drivers, well aligned with global mega-trends. Taken together, enhanced by the doubling of secured power announced today, this combination has given us the confidence to increase our Adjusted EPS growth ambition to 65% by 2030/31, from approximately 50% by 2030, from our 2024 baseline:

·      Growth driver 1: Capture record rental reversion in the investment portfolio, through active management.

·      Growth driver 2: Deliver best-in-class logistics developments.

·      Growth driver 3: Deliver exceptional risk-adjusted returns through data centre development.

The following sections describe the key characteristics of our portfolio and our progress with each of our three growth drivers during the period.

Growth driver 1: Capturing record rental reversion through active management

Key figures	Six months to 30 June 2026	Six months to 30 June 2025	Change
Portfolio subject to rent review in period (%)	14.4%	8.7%	5.7pts
Proportion of portfolio reviewed (%)	12.6%	9.7%	2.9pts
Contracted rent uplifts - reviews and lease events (£m)	6.5	5.6	16.1%
Contracted rent uplifts - reviews and lease events (%)	10.5%	10.3%	0.2pts
Change in contracted rent from new lettings (£m)	2.1	-	n/a
Change in contracted rent from lease expiries (£m)	(0.9)	-1.5	40%
EPRA like-for-like rental growth (%)	5.1%	2.5%	2.6pts
Completed disposals (£m gross proceeds)	259.1	204.8	26.5%
Completed disposals (million sq ft)	1.8	1.3	38.5%
Completed disposals (£m contracted rent)	16.8	13.0	29.2%
Acquisitions (£m consideration)	-	74.3	-
Acquisitions (million sq ft)	-	0.6	-

Growing and lengthening income

In H1 2026, we completed reviews on 12.6% of the investment portfolio (H1 2025: 9.7%). This was the majority of the 14.4% (H1 2025: 8.7%) which was due for a rent review in the period. The difference is a timing feature and also includes outstanding rent reviews from previous periods that we settled in H1 2026 and reviews that began in the first half that had not completed at 30 June 2026.

The table below shows the strong rental uplifts achieved from rent reviews, lease renewals and extensions. The open market rent reviews were all for urban logistics assets, with an average increase of 39% and the greatest increase being 53%. Nearly 40 open market rent reviews were in progress at the period end, including four related to big box assets.

H1 2026 settled rent reviews and lease events

Rent review type	Number	% of contracted rent	Growth in passing rent (£ million)	Growth in passing rent (%)
Index linked	6	8.4%	3.5	11.7%
Open market	16	0.3%	0.5	39.0%
Hybrid	-	-	-	-
Fixed	4	3.9%	1.2	8.4%
Total rent reviews	26	12.6%	5.2	11.5%
Lease events (renewals and extensions)	36	4.5%	1.3	7.9%
Leasing up of vacant space	15	n/m	2.1	-
Total	77	17.1%	8.6	10.5%

In addition, we achieved 15 new lettings of units that had become vacant on lease expiry. These increased passing rent by £2.1 million. The total increase in passing rent from rent reviews and leasing activity was therefore £8.6 million

Consistent with our expectations, in addition to the £8.6 million secured in the period, another £11.7 million is currently being progressed. A further 14.4% of the portfolio is subject to review in H2 2026, where we have the potential to grow contracted rent by up to £8.7 million. In addition, lease expirations in H2 2026 have the potential to add an additional £2.7 million reversion capture.

The combination of our investment portfolio and logistics development programme helps us to be the landlord of choice for clients, as we can collaborate with them across multiple assets and develop their supply chain network with additional units. We saw the benefits of this approach during the period, agreeing a 20-year lease to Curry's on a 397,000 sq ft speculatively developed unit at Newark, in conjunction with a 10-year lease extension on the existing 726,000 sq ft unit let to Curry's in the same location. This increased the remaining lease term to 20 years, in line with the lease on the new building.

Other significant lease events during the period included:

·    15-year lease extension at Fradley (553k sq ft), with an open market rent review expected to deliver a c.25% uplift, in line with ERV, scheduled for 2027; and

·     five-year lease renewal at Didcot (288k sq ft), providing a rental uplift of 28.4% at £10 psf, 5.26% above the ERV.

Successful integration of the Blackstone assets and maximising the value of our urban logistics units

During the period, we focused on integrating and driving value from the assets we acquired from Blackstone in October 2025. Our proactive approach prioritises being on-site and engaging with clients. This has been well received by our new clients, and we are developing positive relationships, supporting good results with renewals and lease extensions. Our success has been enabled by further investment by the Manager in its asset and property management teams.

In line with our asset management strategy for our urban logistics assets, one of our key aims with the former Blackstone estates is to improve their overall quality and rental income, while ensuring the product remains appropriate for the client base. This includes improvements to landscaping, signage and estate amenities and ensuring the estates are clean and tidy, so they are attractive places to work for existing clients, and vacant units present favourably for viewings. Aligned to this approach, having undertaken 63 lease events, we have increased the rental income of the urban logistics assets acquired from Blackstone by 4.4% since acquisition.

Supporting our client engagement through technology

The Manager's proprietary Customer Engagement Platform is helping to further improve our client relationship management. The platform is a centralised repository of internal and external data sources, allowing our asset managers to quickly access and interpret key client information. This includes financial data, lease information, supply chain intelligence, client sustainability targets, records of recent engagement and property inspection reports. The platform is now embedded in the Asset Management team's daily workflow, and its benefits were evidenced during the integration of assets acquired from Blackstone, by enabling us to curate, analyse and update client intelligence at scale.

As well as being a valuable client research and tracking tool, the platform supports our verification and risk management processes, recording our covenant checking, frequency of inspections and client meetings. The data is also linked to property and client records in our Investment Modelling platform, allowing us to analyse data using multiple bases. 

Enhancing income and capital values through our focus on sustainability

By working in partnership with our clients on sustainability initiatives, we can increase rental income and capital values, while helping them to deliver their own sustainability targets. We have therefore integrated sustainability considerations throughout the investment lifecycle, as well as our management of the Group's supply chain and engagement with our clients.

Our objective is to achieve strong sustainability performance, with a focus on practical action. Data is integral to maximising our effectiveness, ensuring we are tracking our performance and continuing to add value to our buildings through proactive asset management and innovation.

We know our clients prefer modern buildings that are powered by clean energy, are energy efficient and have the power resilience to accommodate future electrification requirements. As at 31 December 2025, 84.4% of clients (by sq ft) had set carbon-reduction targets. Using our proprietary modelling platform, we are refining our asset-level decarbonisation plans and incorporating carbon efficiency actions into asset business plans and cash flows.

We take an active approach to improving the sustainability performance of our assets. This is heavily dependent on engaging with our clients and understanding the whole-building energy consumption of our assets. Our collaboration enables us to plan and finance energy efficiency projects, such as onsite solar PV, removal of natural gas-fired heating and replacement of LED lighting. To provide low-cost, low-carbon electricity to our clients, we have installed 29.8MW of onsite renewable solar capacity across 39 schemes, with 17 new schemes currently being assessed across our standing assets which could add 19.4MW of installed solar capacity.

Active management of the portfolio to optimise performance and recycle capital

Every six months, we conduct a thorough process to develop a five-year business plan for each asset in the portfolio. This draws on expertise from across our teams, including asset management, sustainability, development, power and our data analysts. Through this, we identify assets that are candidates for disposal, for example because:

1)   We have completed our asset management plans and maximised near-term value;

2)   The asset's investment characteristics no longer fit our desired portfolio profile; or

3)   The asset's future performance may be below others in the portfolio or have more risk attached to it.

When we identify certain assets for disposal, we look closely at capital market conditions to determine whether we are acting at the correct point in the market cycle for the assets in question. We continually profile the most active buyers to establish their desired income profile, coupled with their transactional experience and financing, to ensure we engage with credible purchasers able to complete transactions.

We have been one of the most proactive recyclers of capital in the sector, having sold c. £1 billion of assets since 2022. During H1 2026, we disposed of £225.7 million of logistics assets, including a portfolio of six assets sold to EQT Real Estate for £199 million, in line with their respective book values. These comprised big box and urban logistics assets at Leamington Spa, Peterborough, Didcot and Kettering.

We also neared completion of our divestment of the remaining non-strategic assets acquired with UKCM, disposing of two assets for gross proceeds of £33.4 million. Our disciplined disposal process and active management of the non-strategic assets has enabled us to achieve a blended exit price on our disposals to date that is in line with the assets' implied acquisition price. Post the period end, of the four remaining non-strategic assets, we have completed or exchanged to sell three, with disposal proceeds agreed at £84.9 million. Beyond this, we therefore only have one non-strategic asset remaining, which is in solicitors' hands and from which we expect to exit in the coming months.

 

Growth driver 2: Deliver best-in-class logistics developments.

	H1 2026	H1 2025	Change
Development starts (million sq ft)	-	1.1	-
-       of which DMA starts (million sq ft)	-	0.3	-
Development starts (£m ERV)	-	10.1	-
Space under construction (million sq ft)	1.2	2.5	(52.0%)
Space under construction (£m ERV)	13.0	23.1	(43.7%)
Development completions (million sq ft)	0.6	0.8	(25.0%)
-       of which DMA completions (million sq ft)	-	0.4	-
Development completions let (million sq ft)	-	0.1	-
Development completions let (£m to passing rent)	-	1.5	-
Development capex - logistics (£m)	79.6	166.8	(52.2%)
Development capex - data centres (£m)	1.6	201.0	(99.2%)
Total development capex (£m)	81.2	367.8	(77.9%)
Development lettings (million sq ft)	0.5	-	-
Development lettings (£m)	4.9	-	-
Development annualised contribution to passing rent (£m)	3.3	-	-
Average yield on cost for development lettings (%)	7.4	-	-
Planning consents secured (million sq ft)	-	0.3	-
Total planning consented land at the period end (million sq ft)	4.3	4.5	(4.4%)

Continued logistics development progress

Developing logistics assets replenishes our investment portfolio with new, best-in-class buildings and enhances overall shareholder returns, through an attractive yield on cost of 6-8% and careful risk management.

We control the UK's largest land portfolio for logistics development, which has the potential to deliver approximately 37.7 million sq ft of new space through developments and generate £354 million of additional contracted rent. Of this, c.£74.8 million is deliverable within 36 months. The pipeline is diversified geographically across 25 sites in prime locations and is highly flexible, enabling us to match our clients' requirements for different building sizes, ranging from urban or last mile assets to "mega boxes". Once built and let these developments become investment assets for us.

We made further progress with our development pipeline in H1 2026, with:

·     0.6 million sq ft of developments reaching practical completion in the period, with the potential to add £6.9 million to passing rent;

·      1.2 million sq ft of developments under construction at the period end, of which 78% has been pre-let; and

·      0.5 million sq ft of development lettings adding £4.9 million per annum to contracted rent, formed of:

o  0.4 million sq ft unit in Newark let to Curry's, securing £3.3 million in annual rental income and signed in conjunction with the 10-year lease extension on its existing 0.7 million sq unit in the same location (see Growth driver 1: Capturing record rental reversion through active management for more information); and

o  0.1m sq ft unit pre-let in Cambridge, securing £1.6 million in contracted annual rental income, subject to planning.

These new lettings collectively are expected to deliver a yield on cost of 7.4%.

At the period end, we also had:

·    0.8 million sq ft of development lettings in solicitors' hands, with potential annual rental income of £7.6 million; and

·      0.6 million sq ft of space in advanced negotiations, with the potential to add £6.8 million to rental income.

Two of our schemes experienced planning delays which resulted in no new development starts during the first half. We invested £79.6 million of capital expenditure in the period into logistics, including development and asset refurbishment, and, coupled with planned development starts in the second half of the year, expect our total investment for 2026 to be within the range of £150-250 million. Our yield on cost guidance for 2026 development starts is towards the upper end of 6-8% range, supported by our strategy of agreeing fixed-price construction contracts, continued market rental growth and the benefit of later phases of schemes with lower levels of associated infrastructure investment.

Occupier interest in build-to-suit logistics assets remains strong and we continue to receive enquiries and progress discussions on pre-let opportunities. These discussions typically relate to assets of 300,000 sq ft and above and see occupiers planning their supply chain needs up to four years ahead, reflecting their understanding of the barriers to entry for delivering the largest big boxes.

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

We hold most of our land portfolio through long-term options. These are capital efficient and reduce risk, as we typically only buy the land once we have received planning consent. This provides control over the quantum and timing of our purchases. The options include a typical 15-20% discount to prevailing land prices at the point of acquiring the land and we can offset much of the site's planning and infrastructure costs against the purchase price. This means we typically secure an attractive development profit on land drawdown and are partially insulated from the impact of changing land values over the longer term.

Another significant benefit of holding land under long-dated options is the flexibility it gives us to adjust our development activity upwards or downwards to match prevailing market conditions and optimise performance. This allows us to take a considered approach to speculative developments, only commencing construction when we have clear evidence of occupier demand. Where possible, we aim to deliver assets in locations where we see a gap in the market pipeline and can benefit from competitive tension between several occupiers looking for buildings.

As at 30 June 2026, the Group was awaiting decisions on planning applications totalling 6.9 million sq ft.

Our Investment Policy also ensures we control development risk by limiting land and development exposure to 15% of GAV, including a maximum exposure to speculative development of 5% of GAV. At the period end we remained well within these limits:

·      Land and development exposure was 6.6% of GAV; and

·      Speculative exposure (based on aggregated costs) was 2.7%.

A well-balanced portfolio of current, near-term and longer-term development opportunities

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

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

·     Near-term development pipeline - sites with planning consent received or submitted, and where we aim to begin construction in the next three years. The Group will own some of these sites, with others held under option as we are either awaiting planning consent or have achieved outline planning but not yet acquired the land.

·    Future development pipeline - longer-term land opportunities, which are principally held under option, and which are typically progressing through the planning process.

1) Current development pipeline - assets under construction to be delivered in next 12 months

At 30 June 2026, the Group had the following assets in the current development pipeline. The total estimated cost to complete is £23.0 million and the assets have the potential to add £13.0 million to annual passing rents.

	Costs of completion
		H2 2026	H1 2027	Total		Total sq ft	Contractual rent / ERV
		£m	£m	£m		m	£m
Current speculative		13.3	6.7	20.0		0.3	3.2
Current pre-let		3.0	-	3.0		0.9	9.8
Total		16.3	6.7	23.0		1.2	13.0

2) Near-term development pipeline - construction expected to commence in next 12-36 months

At the period end, the near-term development pipeline consisted of land capable of accommodating 7.6 million sq ft of logistics space and delivering £73.2 million of annual rent, of which £1.6 million is already secured at Cambridge.

Of this:

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

·      1.8 million sq ft relates to sites where we have submitted a planning application.

The table below presents the near-term development pipeline at the period end. Movements in the figures are driven by construction starts (which will move space to the current development pipeline), or changes in our view on the likely timing of starts, resulting in movements between the two categories below. The ERVs in the table are based on current market rents and therefore assume no further rental growth before the schemes become income producing.

Logistics development	Total sq ft	Current book value £m	Estimated cost to completion (Uncommitted) £m	ERV £m
Potential near-term starts in the next 12 months	2.0	21.3	220.0	17.0
Potential near-term starts in the following 24 months	5.6	75.1	695.8	56.2
	7.6	96.4	915.8	73.2

3) Future development pipeline

The future development pipeline is predominantly controlled under longer-term option agreements. Most option agreements contain an extension clause, allowing us to extend the option expiry date where necessary.

The future development pipeline has sites at various stages of the planning process, with multiple sites being currently promoted through local plans. We have continued to replenish the pipeline by securing options over new sites.

At 30 June 2026, the future development pipeline comprised 1,369 net acres, with the potential to support up to 29.8 million sq ft of development and generate around £279.1 million of contracted rent, assuming no future market rental growth.

During the period, the Group recorded an impairment against intangible and other property assets of £10.6 million (H1 2025: £25.5 million). This comprised an £3.2 million impairment against our share in a joint venture and £7.4 million in relation to a land option (which included an apportionment of the purchase price of DB Symmetry in 2019). In both cases, this reflects our views around the viability of developing these sites, as site specific circumstances is leading to the potential returns on offer falling below our target range and those available from other opportunities.

Development Management Agreements (DMA) and DMA income

While our development programme primarily creates assets for the investment portfolio, we occasionally work with a client to develop an asset for freehold sale to them, where this may help us to gain planning, open up a site and accelerate our profit capture.

We undertake these freehold sales through a DMA, under which we manage the development of an asset in return for a fee and/or profit share. The Group does not own the site during construction or the completed investment and DMAs are therefore excluded from our asset portfolio and recurring income metrics. DMAs deliver a high-return and capital light source of profit, which we can recycle into other development or investment activity.

On average over the medium-term we expect to generate £3.0-5.0 million per annum of DMA income. However, the nature and timing of these activities means DMA income is highly variable. The Group earned no DMA income in H1 2026 (H1 2025: £13.3 million).

The Company has previously reported two key performance indicators in the form of Adjusted Earnings per share and Adjusted earnings per share (excluding additional DMA Income).

In the period we have replaced the second of these key performance indicators. Previously, this was defined as 'Adjusted Earnings (excluding additional DMA Income)' and this would have been inclusive of up to £4 million of DMA Income per annum.

This has been revised to 'Adjusted Earnings (excluding DMA Income)', which now removes all DMA Income recognised in the period. The first key performance indicator, being Adjusted Earnings per share, continues to include all DMA Income recognised in the period and therefore remains unchanged.

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

Enhancing sustainability through our development activities

Sustainability is a core element of our approach to development. Knowing our clients want low-carbon, energy efficient buildings, we have set ambitious targets for our new buildings. We aim to achieve upfront embodied carbon of less than 400kg CO₂e/m², as well as EPC A and BREEAM Excellent certifications. Our average portfolio upfront embodied carbon intensity (whole site) for H1 2026 is 347.9 kgCO₂e/m² (FY25^[4]: 443.7kgCO₂e/m²), which we have achieved through optimising design and employing low-carbon construction materials, where viable.

Clients can struggle to attract and retain talent from the local communities around our assets. Our social impact programme includes a focus on building their future workforce. In H1 2026, through the education programmes delivered by our charity partnerships, we have directly and indirectly supported 44,876 young people to improve their employability skills and prepare for the world of work.

Growth driver 3: Delivering exceptional risk-adjusted returns through data centre development

Data centres are an essential part of the UK's economic growth agenda and are classified as Critical National Infrastructure. We see opportunities to deliver exceptional risk-adjusted returns to shareholders through pre-let data centre developments and made further excellent progress in the first half of the year.

We have taken an innovative "power-first" approach to developing data centre assets, recognising the acute scarcity of deliverable grid connections. In key availability zones the wait times for power connections are more than 10 years, which significantly restricts development of data centres in these locations.

Our "power-first" approach:

·      Utilises the Manager's deep in-house understanding of the UK power network;

·      Leverages our strong relationships with leading power companies;

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

·      Identifies and secures appropriate sites.

This means our data centre developments can be income producing up to a decade earlier than following the traditional real estate model of securing the land first. Typically, we will provide the client with a powered shell, in which the client is responsible for fitting out, operating and maintaining the data centre. Given their location and available power, our first two data centre developments - Manor Farm and Chelmsford - are particularly attractive to cloud service providers and for AI inference.

Reflecting delays to the Manor Farm planning permission process, which we had anticipated in December 2025, total capital expenditure on data centre development was £1.6 million in H1 2026.

Planning consent secured at Manor Farm

In January 2025, we purchased the 74-acre Manor Farm site at Heathrow, London, within the Slough Availability Zone. Simultaneously, we established a 50:50 joint venture with EDF Renewables, enabling accelerated power delivery to the site using existing grid connection agreements, with 107MW to be provided in 2027 and a further 40MW in 2029. This power capacity is supported by on-site utility-scale battery storage.

Manor Farm will be one of the UK's largest data centres, with a targeted yield on cost of 9.3%. On 10 June 2026, we announced that the Secretary of State for Housing, Communities and Local Government had approved our proposal, which will enable us to begin site preparation works in the second half of the year. We have a pre-let in solicitors' hands with a potential occupier on a powered-shell basis, where the occupier will be responsible for the internal fit out of the building and full rent will commence upon practical completion.

The Group has incurred initial funding costs of £80.0 million, covering the initial land purchase (£70.0 million), the 50% joint venture stake (£6.1 million) and associated costs (£3.9 million).  

The remaining capital requirements are expected to be broadly as follows:

·      £185 million of capital expenditure, contingent on securing a pre-let; and

·      c.£100 million of costs contingent on success, including contingent land consideration and Tritax Management Limited's profit share, 50% of which will be paid in Company shares.

Progressing our second data centre site at Chelmsford

Our second data centre site is at Chelmsford, in the broader London availability zone. It has an initial 125MW, with power delivery scheduled for 2028, and the opportunity for future expansion. It has the potential to deliver £23-25 million of annual rent and a highly attractive 10-11% yield on cost. Reflective of the quality of the location, which is well positioned close to key data cable routes, we have already received expressions of interest in the scheme from potential occupiers ahead of formal marketing of the site, which commenced in July.

In June 2026, the Company announced it had entered into a DMA with the Manager to deliver the data centre at Chelmsford, emulating the existing arrangements for Manor Farm. The Manager will provide development management and technical services, including securing planning, pre-letting services, overseeing construction, technical electrical expertise and managing the technical aspects of the scheme and all power-related elements. Further information can be found in the Financial review.

Securing an additional 235MW of power to enable two additional schemes

As we announced today, we have nearly doubled the amount of secured power we control with a further 235MW, enabling us to develop two additional schemes and bringing our total secured power to 507MW.

The two new schemes target £50-60 million of data centre rental income (excludes an additional 10-15% of power infrastructure-related rental income) and £300-400 million of capital profits in aggregate. Consistent with Manor Farm and Chelmsford, these schemes are targeting yields on cost of between 9-11%, profit on costs of greater than 50% assisting in delivering exceptional risk-adjusted returns to shareholders. The schemes are in the Greater London availability zone.

While there are key milestones to deliver, we anticipate them reaching practical completion in 2030/31, with meaningful capital value growth driving NTA performance at each of those milestones ahead of significant rental income generation. The proposed Equity Issue supports the delivery of this growing pipeline, complementing our capital rotation activities.

A potential >1GW opportunity

We have power enabled opportunities totalling over 1GW. These are formed of power opportunities at various points on the delivery framework and based upon levels of contractual certainty and anticipated power delivery dates. Our target yield on cost for powered shell data centre opportunities is 9-11% and we expect our capital expenditure on data centre development to be £100-200 million per annum over the medium term.

Addressing the sustainability challenges

We recognise the sustainability challenges that the data centre sector faces, during both development and operation. We are therefore developing a comprehensive approach to sustainability for our development pipeline. This will consider the challenges of climate change, biodiversity, health and wellbeing across five types of capitals - economic, physical, natural, human and social, and set out appropriate targets against each capital. Notably, as we are developing brand new and purpose-built data centres, they should provide greater efficiencies than retrofitting data centres into pre-existing logistics buildings.

We are already taking a proactive approach, which includes:

·    Promoting the use of closed-loop cooling systems, selected specifically to help minimise operational water demand. Modern industry examples demonstrate that closed-loop systems can operate with minimal ongoing water consumption, with top-up requirements limited to minor system losses.

·     Applying good practice mitigation, including high standards of energy efficiency with a fabric-first approach, and co-location with renewable energy generation assets. This will minimise energy demand, maximise efficiency and ensure alignment with national decarbonisation pathways.

·    Where possible, combining our data centre developments with co-located battery storage facilities. This will directly contribute to national net-zero goals, boosting clean-energy use by storing surplus renewables, strengthening grid and data-centre resilience, and reducing reliance on diesel generators and carbon-intensive peaking plant.

 

Our portfolio: High-quality and offering both resilience and substantial income growth potential

At the period end, the total portfolio value was £7.68 billion (31 December 2025: £7.89 billion), with rental growth, development gains (including from Manor Farm) and asset management activity substantially offsetting valuation pressure from higher yields, with the overall small decline in portfolio value reflecting asset disposals completed in the period.

The total portfolio comprises:

·      The investment portfolio - is formed of standing logistics assets, the vast majority of which are leased or have agreements for lease. The investment portfolio also includes a small number of non-strategic assets we acquired with UKCM in 2024, which we are divesting to fund higher-returning opportunities, particularly our development programme. At 30 June 2026, three of the four remaining non-strategic assets were either under offer or had exchanged contracts for sale. The final one went under offer post period end.

·      The development portfolio - comprises land, options over land and buildings under construction, generating best-in-class logistics and data centre assets for the investment portfolio.

Total portfolio	30 June 2026 £ billion	30 June 2026 % of GAV	31 December 2025 £ billion	31 December 2025 % of GAV
Logistics portfolio	7.05	91.9%	7.15	90.7%
Non-strategic assets	0.12	1.5%	0.15	1.9%
Investment portfolio	7.17	93.4%	7.30	92.6%
Development portfolio	0.51	6.6%	0.59	7.4%
Total portfolio	7.68	100.0%	7.89	100.0%

 

Our logistics portfolio

The below table shows key operational information in relation to our investment portfolio. Consistent with our strategy, we note the level of net asset disposals undertaken in the period, reflected in relative change in size within the portfolio and the associated impact on key metrics, such as Gross lettable area and Contracted rent.

	30 June 2026	31 December 2025	Change
Investment portfolio value (£bn)	7.17	7.30	(1.8)%
Number of lettable units	598	621	(3.7)%
Gross lettable area (million sq ft)	47.9	49.1	(2.4)%
Estimated rental value (£m)	459.6	462.0	(0.5)%
Contracted rent (£m)	355.7	360.9	(1.4)%
Number of clients	416	438	(5.0)%
Vacancy	6.5%	5.6%	0.9pts
-       Underlying	3.1%	3.1%	-
-       Relating to recently completed speculative developments	3.4%	2.5%	0.9pts
WAULT (years)	9.9	9.6	0.3 years
Like-for-like six-month ERV growth	1.9%	1.8%	0.1pts

A broad and deep logistics offering

"Big boxes", which we define as assets of more than 100,000 sq ft, make up most of our portfolio. Since 2022 we have also strategically built a growing presence in urban logistics assets under 100,000 sq ft, which accounted for 18.9% of our contracted rent at the period end. This allows us to meet our client needs for "first mile" mission-critical logistics assets through to "last mile" urban delivery units.

At the period end, the investment portfolio contained the following mix of building sizes:

Investment portfolio	Contracted rent 30 June 2026	Contracted rent 31 December 2025
<100k sq ft	18.9%	19.3%
100 - 250k sq ft	9.3%	10.6%
250 - 500k sq ft	28.1%	27.1%
>500k sq ft	43.7%	43.0%

The investment portfolio is well-diversified geographically, with a good balance of exposure to key logistics locations in the South East, the Midlands and the North of England:

Investment portfolio locations by market value	30 June 2026	31 December 2025
South East	36.7%	35.6%
South West	3.4%	3.4%
East Midlands	13.2%	13.9%
West Midlands	23.3%	23.9%
North East	12.9%	12.7%
North West	8.9%	8.7%
Scotland	1.6%	1.8%

Secure client base underpins income generation

We have a highly diversified client base, with 416 clients across the investment portfolio at the period end (31 December 2025: 438). Our clients include some of the world's most-important companies, with 57.5% being part of groups included in major stock market indices, such as the DAX 30, FTSE All Share, SBF 120, NYSE and S&P 500. The table below lists our top ten clients, which together accounted for 40.6% of contracted rent at 30 June 2026 (31 December 2025: 41.6%):

Client	% of contracted annual rent		Client	% of contracted annual rent
Amazon	12.4%		Tesco	3.5%
The Co-Operative Group	3.7%		B&Q	3.2%
WM Morrisons	3.7%		Curry's Group	2.7%
Iron Mountain	3.5%		Sainsbury's	2.3%
Argos	3.5%		Marks & Spencer	2.1%

Attractive "triple net" leases enhance income security and minimise property costs

At the period end, the investment portfolio's WAULT was 9.9 years (31 December 2025: 9.6 years), with the increase driven by leasing activity in the period. Urban logistics assets had a WAULT of 5.3 years (31 December 2025: 5.1 years) and big box assets had a WAULT of 10.9 years (31 December 2025: 10.6 years).

Of total rents:

·      21.6% is generated by leases with 15 or more years to run; and

·      27.6% comes from leases expiring in the next five years, providing near-term opportunities to capture the growing rental reversion within the portfolio, as described below.

The structure of our leases helps to maximise the proportion of our gross rental income that flows through to net rental income. Most of our logistics asset leases are full repairing and insuring (FRI), equivalent to "triple net" leases in the United States. This means our clients are responsible for property maintenance during the lease term and for dilapidations at the end of the lease. This minimises our irrecoverable property costs, which resulted in 98% conversion of gross to net rental income for the period.

Upward-only rent reviews provide attractive income growth

Most of our logistics leases benefit from upward-only rent reviews. Of total contracted rents for logistics assets:

·      13.2% are reviewed annually;

·      79.1% are reviewed in five-yearly cycles, with the timings staggered so there are reviews taking place each year; and

·      7.7% have either no rent reviews or a different review frequency (with opportunities to capture reversion upon expiry and reletting).

The table below shows the rent review types across the logistic portfolio at the period end:

Rent review type	% of rent roll at 30 June 2026	% of rent roll at 31 December 2025
Fixed uplifts	7.9%	7.9%
Inflation linked (RPI/CPI)	41.9%	40.3%
Open market	32.8%	34.9%
Hybrid (higher of inflation or open market)	10.4%	9.2%
No reviews[5]	7.0%	7.7%

Leases with inflation-linked reviews specify minimum and maximum rental growth, which average 1.6% and 3.7% respectively. In tandem with fixed rent reviews, this provides certainty on the minimum rental increases the portfolio will generate each year. We supplement this through open market and hybrid rent reviews, which can capture uncapped market rental growth, and other forms of active management to increase rental income.

Due to the balance of open market and inflation-linked rent reviews, and the growing rental reversion in the portfolio (see below), we remain positive about continuing to deliver attractive, long-term income growth from our investment assets. Information on rent reviews in the period can be found in the Growth driver 1: Capturing record rental reversion through active management section above.

Stable underlying portfolio vacancy

Having buildings available enables us to capture real-time demand in the market and carry out asset management initiatives such as refurbishments where needed, helping to improve the rental tone of an entire estate. For our speculative developments, our standard appraisal assumptions include a void period of up to 12 months, even though we only begin construction when we have had interest from and dialogue with at least one prospective client.

The table below shows the movement in vacancy across the investment portfolio during the period, with stable underlying vacancy in our investment portfolio offset by the contribution to vacancy from recently completed speculative developments:

Vacancy composition	30 June 2026	31 December 2025	Change
Underlying	3.1%	3.1%	0 pts
Recent development (i.e. completed within the past 12 months)	3.4%	2.5%	0.9 pts
Total vacancy	6.5%	5.6%	0.9 pts

Increasing ERVs and record rental reversion provide significant opportunity to grow rental income

At each valuation date, the valuer independently assesses the estimated rental value (ERV) of every asset in the investment portfolio. This is the rent the property would be expected to secure through an open-market letting at that date. The table below analyses the rental reversion in the investment portfolio, which is the difference between the ERV and the contracted rent at the period end:

Investment portfolio ERV	30 June 2026	31 December 2025	Change
ERV (£m)	459.6	462.0	(0.5)%
Contracted rent (£m)	355.7	360.9	(1.4)%
Rental reversion (£m)	103.9	101.1	2.8%
Rental reversion (%)	29.2%	28.0%	1.2pts

The ERV increased by 1.9% on a like-for-like basis in the period, reflecting market rental growth and the benefits of our asset management programme, with overall growth offset by ERV removed from the portfolio via those assets disposed of in the first half. At 30 June 2026, the total ERV was 29.2% higher than contracted rents, representing a record level of reversion.

We have opportunities to capture this reversion through open-market rent reviews, lease renewals, new leases and lease regears, as well as by filling vacancy in the investment portfolio. The tables below show the potential rental income from letting vacant assets and completing outstanding rent reviews, as well as the lease events arising in the near term that will allow us to capture higher rental levels.

Vacancy and outstanding reviews	Contracted rent (£m)	% of contracted rent	ERV (£m)
Vacancy	-	n/a	30.5
Outstanding reviews from prior periods[6]	15.5	4.4%	22.0
Total	15.5	4.4%	52.5

 

 

 

Rent review and expiries[7]			H2 2026			2027			2028
Review type	Frequency	Rent (£m)	% of passing	ERV (£m)	Rent (£m)	% of passing	ERV (£m)	Rent (£m)	% of passing	ERV (£m)
Index linked	Annual	20.8	5.8%	23.7	34.2	9.6%	42.6	34.2	9.6%	42.6
	5-yearly	9.4	2.6%	11.3	17.7	5.0%	24.3	13.0	3.7%	13.6
Open market and hybrid	Annual	1.8	0.5%	1.7	1.8	0.5%	1.7	1.8	0.5%	1.7
	5-yearly	13.4	3.8%	19.2	24.7	7.0%	29.3	19.4	5.5%	22.5
Fixed	Annual	1.8	0.5%	1.9	11.0	3.1%	11.1	5.3	1.5%	5.7
	5-yearly	4.3	1.2%	5.2	6.7	1.9%	9.1	0.0	0.0%	0.0
Total rent reviews		51.5	14.4%	63.0	96.1	27.1%	118.1	73.7	20.8%	86.1
Lease expiries		4.6	1.3%	7.3	13.0	3.6%	16.7	13.6	3.8%	17.1
Total events in period		56.1	15.7%	70.3	109.1	30.7%	134.8	87.3	24.6%	103.2

In aggregate, we have the potential to capture 72% or £75.2 million^[8] of reversion in the next 3 years. We have a strong track record of meeting or exceeding ERVs and capturing these uplifts, which require very limited or no capital expenditure. See the Capturing record rental reversion through active management section below for our progress in the period.

Portfolio quality reinforced by strong sustainability characteristics

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

At 30 June 2026, 78.7% of the investment portfolio had an EPC rating of B or above (31 December 2025: 79.8%^[9]) and 45.5% of all assets certified or expected to be certified by BREEAM had a rating of Very Good or above (31 December 2025: 44.8%). The decline in the proportion of the portfolio achieving an EPC rating of B or above in the period relates to a combination of the impact of asset disposals and existing buildings awaiting re-certification.

 

Financial review

Overview

The Group delivered a robust financial performance in H1 2026. Net rental income increased by 16.2%, primarily reflecting the inclusion of the Blackstone portfolio acquired in October 2025, our asset management driven strong levels of like-for-like rental growth and development activity, partially offset by the impact of asset disposals.

Simplifying our presentation of adjusted earnings to reflecting changing DMA income profile

With legacy DMA contracts assumed as part of our 2019 acquisition of DB Symmetry reaching their conclusion, the Board expects DMA income to be a proportionately smaller component of earnings moving forward. As such, and to simplify its presentation, we have reported an Adjusted EPS figure with and without all DMA income. Previously, any DMA income above £4 million was treated as "additional" and excluded from our Adjusted Earnings Per Share (excluding additional DMA income) figure.

Adjusted earnings per share (excluding DMA income), which represents the recurring earnings potential of the business, increased by 7.0% to 4.41 pence (H1 2025: 4.12 pence).  Given £nil DMA income in the period, Adjusted EPS was also 4.41 pence (H1 2025: 4.63 pence).

The key constituents of Adjusted EPS (excluding DMA income) growth in the period are shown in the table below:

	Pence
Adjusted EPS (including DMA income) in H1 2025	4.63
- DMA income	(0.51)
Adjusted EPS (excluding all DMA income) in H1 2025	4.12
Net revenue:
- Investment assets	0.27
- Development activity	0.06
- Acquisitions moved to development	(0.02)
- Corporate acquisition impact	0.87
- Disposals	(0.27)
Administrative expense	(0.07)
Net finance costs	(0.51)
Other	(0.04)
H1 2026 Adjusted EPS	4.41

The corporate acquisition impact category includes £5.3 million of income from the £20.0 million reversionary bridge provided by Blackstone, as part of the October 2025 portfolio acquisition. See Other operating income for further information. The acquired portfolio is on track to generate mid-single digits EPS accretion for 2026, as we expected at the time of the acquisition, and is accelerating rental income capture due to the frequency of lease events and rent reviews, as well as the reversionary bridge.

The total dividend for the period was 4.00 pence per share (H1 2025: 3.83 pence), an increase of 4.4% and in line with the Group's dividend policy.

The EPRA NTA per share at 30 June 2026 was 185.88 pence (31 December 2025: 187.76 pence), reflecting broadly stable asset valuations on the investment portfolio, with a modest impact from yield softening and gains on development assets, including a contribution relating to the Manor Farm data centre project following receipt of planning consent.

One of our objectives for 2026 is to maintain a strong balance sheet and modestly reduce the LTV, following the October 2025 acquisition of assets from Blackstone, to retain the Group's financial flexibility. At 30 June 2026, the LTV was 32.9%, down 0.3 points from 33.2% as at 31 December 2025. This reflects the benefit of our continued portfolio optimisation, with £243.8 million of asset disposals and £15.3m land sale completed in the period. Moody's Ratings has maintained the Company's credit rating outlook at A3 since November 2025.

Presentation of financial information

The financial information is prepared under IFRS. The Group's subsidiaries are consolidated at 100% and its interests in joint ventures are equity accounted for.

The Board sees Adjusted EPS as the most relevant measure when assessing dividend distributions. Adjusted EPS is based on EPRA's Best Practices Recommendations and excludes items considered to be exceptional, not in the ordinary course of business or not supported by recurring cash flows.

Financial results

Net rental income

Net rental income grew by 16.2% to £173.3 million (H1 2025: £149.2 million), as described in the Overview section above.

Contracted annual rent at the period end was £355.7 million (31 December 2025: £360.9 million), with the movement reconciled below. The annual passing rent at the period end was £328.5 million (31 December 2025: £337.2 million).

Contracted annual rent	£m
As at 31 December 2025	360.9
Development lettings	4.9
Rental reviews and asset management	8.6
Disposals	(16.8)
Lease expiry and rent guarantee conversion	(1.9)
As at 30 June 2026	355.7

Other operating income

As described in the insight driven development and innovation section, the Group earns DMA income from developing for third parties or pre-selling developments to owner-occupiers. This is an attractive and profitable activity as the third party typically funds the development, resulting in a high return on capital for us. We include DMA income within Adjusted earnings, as cash flows support it.

However, DMA income is more variable than property rental income and its timing can affect our earnings from period to period. In H1 2026, the Group recorded no DMA income (H1 2025: £13.3 million).

The Group recognised income of £5.3 million in Adjusted earnings from the reversionary bridge provided by Blackstone, as set out in our announcement of the portfolio acquisition in October 2025. The reversionary bridge related to the reduction in the agreed acquisition price and totalled £20.0 million. Under IFRS this was recognised as an initial reduction in the value of the portfolio acquired and is not recognised within the IFRS income statement. Our expectation is that we will recognise 50-60% of it within Adjusted earnings in 2026, 40-50% in 2027 and 0-10% in 2028. The amount recognised in the first half is therefore in line with this guidance.

 

Administrative and other expenses

Administrative and other expenses, which include all the operational costs of running the Group, were £20.4 million (H1 2025: £18.4 million). The Investment Management fee for the period was £14.0 million (H1 2025: £13.3 million), with the increase due to the average EPRA NTA across the two periods and principally in relation to the Blackstone portfolio acquisition, including the related share issuance. The effective fee rate decreased from 58.3bps in H1 2025 to 55.7bps in the current period.

The EPRA Cost Ratio (including vacancy cost) was 13.5% (H1 2025: 13.8%), with vacancy broadly stable across the period. The EPRA Cost Ratio (excluding vacancy cost) was 12.2% (H1 2025: 12.9%), demonstrating our continued prioritisation of a low cost base for the Group, relative to our peers.

Operating profit

Operating profit before changes in fair value and other adjustments was £152.9 million (H1 2025: £144.1 million).

During the period, the Group sold £243.8 million of investment assets. After transaction costs, the Group has recorded a small loss on disposal of investment property in the period of £3.0 million (H1 2025: loss of £5.3 million).

The loss recognised on revaluation of the Group's investment properties was £15.8 million (H1 2025: £92.2 million gain), Further details are provided in the Portfolio Valuation section. The Group has recorded an impairment against intangible and other property assets of £10.6 million (H1 2025: £25.5 million) more details of which are provided in the Future development pipeline section of the Manager's Report.

Financing costs

Net financing costs for the period were £46.0 million (H1 2025: £32.2 million), excluding the loss in the fair value of interest rate derivatives of £2.4 million (H1 2025: £4.9 million loss). The weighted average cost of debt at the period end was 3.6% (31 December 2025: 3.6%, 30 June 2025: 3.2%). The increase in the cost of debt compared with H1 2025 reflects the higher average net debt drawn throughout the period, including the temporary acquisition facility used to finance the acquisition of the Blackstone portfolio. As planned, we have repaid a significant proportion of this acquisition facility during the period (see debt capital below). The majority of the Group's debt is either fixed rate or covered by interest rate caps. See hedging policy below for further details.

Average drawn debt during the period was £2,784.0 million (H1 2025: £2,106.9 million).

The Group capitalised £8.9 million of interest expense in the period (H1 2025: £6.7 million), reflecting the capital deployed into active development projects including our data centre projects. Our data centre development pipeline differs from our logistics development pipeline from an investment lead time perspective. Our logistics assets are relatively quick to construct, at around nine to twelve months, and our policy is to capitalise interest using our average cost of debt during the vertical construction phase of the asset, utilising our general borrowing pool. In contrast, our  data centre projects have longer timeframes attached to both the infrastructure works as well as vertical construction; therefore we commence capitalising interest from the point of land drawdown/infrastructure commencement, utilising the specific rate of borrowing for these projects. Our joint venture agreement with EDF results in the Company charging a finance rate to the JV in line with the current cost of borrowing under our corporate RCF. Interest capitalised in relation to data centre developments is therefore proportionately greater than for logistics developments. Our guidance for capitalised interest for the full year remains at £15-20 million.

The interest cover ratio, calculated as operating profit before changes in fair value and other adjustments divided by net finance expenses, was 3.7x (H1 2025: 4.5x). The net debt to EBITDA ratio grossed up for the 12 months to 30 June 2026 was 7.9x (31 December 2025: 8.6x).

Tax

The Group has continued to comply with its obligations as a UK REIT and is exempt from corporation tax on its property rental business.

There was no tax charge in the period (H1 2025: £1.5 million charge).

Profit and earnings

Profit before tax was £75.8 million (H1 2025: £168.3 million), with the movement between the two periods driven by continued success with asset management and its impact on operating profit for the period, impairment charges (see portfolio valuation below) and the difference in net finance expense. The largest variance over the period relates to the valuation performance of the Group's investment properties which resulted in a fair value loss recognised of £15.8 million (H1 2026: £92.2 million gain).

IFRS EPS was 2.80 pence (H1 2025: 6.72 pence) with the performance driven by the same points as referenced in the above paragraph. Basic EPRA EPS, which excludes the impact of property valuation movements and the impairment charge, was 3.95 pence (H1 2025: 4.53 pence).

Adjusted EPS[10]for the six months was 4.41 pence (H1 2025: 4.63 pence) (see note 8 for the calculation). The metric we see as closest to recurring earnings is Adjusted EPS excluding DMA income, which was 4.41 pence for the period (H1 2025: 4.12 pence), an increase of 7.0% (also see Notes to the EPRA and other key performance indications, Note 1, for further information).

Dividends

We aim to deliver an attractive and progressive dividend. The Board's policy is for the first three quarterly dividends to each represent 25% of the previous full-year dividend, with the fourth-quarter dividend determining any progression. The aim is to achieve an overall pay-out ratio in excess of 90% of Adjusted earnings.

Following this policy, the Board has declared the following interim dividends in respect of H1 2026:

Declared	Amount per share	In respect of three months to	Paid/to be paid
7 May 2026	2.00p	31 March 2026	12 June 2026
5 August 2026	2.00p	30 June 2026	4 September 2026
Total	4.00p

The total dividend for the period of 4.00 pence was up 4.4% on the prior period (H1 2025: 3.83 pence). The pay-out ratio was 91% of Adjusted EPS (excluding all DMA income).

The cash cost of the dividends in relation to the period was £115.2 million (H1 2025: £101.7 million) (see note 9 for the calculation).

 

Portfolio valuation

The total portfolio value at 30 June 2026 was £7.68 billion (31 December 2025: £7.89 billion), including the Group's share of joint ventures:

	30 June 2026	31 December 2025
	£m	£m
Investment properties (including the rental reversion bridge)	7,417.7	7,391.1
Other property assets	0.8	0.8
Land options	122.2	124.2
Share of joint ventures	20.0	25.2
Financial asset	2.4	2.4
Assets held for sale	117.5	350.9
Portfolio value	7,680.6	7,894.6

CBRE and JLL independently value the Group's assets that are leased, pre-leased or under construction. These assets are recognised in the Group Statement of Financial Position at fair value. The loss recognised on revaluation of the Group's investment properties was £15.8 million (H1 2025: £92.2 million gain). This was the net of:

·      a modest outward movement in equivalent yield of 5.8% at the period end (31 December 2025: 5.7%);

·      continued progress with the development programme, including a gain on Manor Farm on receipt of planning consent; and

·      further growth in ERVs, which were 1.9% higher over the period.

Colliers independently values all owned and optioned land. Under IFRS, land options are recognised at cost and subject to impairment review. As at 30 June 2026, the Group's investment in land options totalled £122.2 million (31 December 2025: £124.2 million). During the period, we recorded an impairment charge of £10.6 million against the Group's option on a single site and a site option held through a joint venture. More details are provided in the future development pipeline section in the Manager's Report.

The share of joint ventures in the table above comprises 50% interests in certain special purpose vehicles, relating to land, land options and the Manor Farm joint venture. These are equity accounted for and appear as a single line item in the Statement of Comprehensive Income and Statement of Financial Position.

Capital expenditure

Capital expenditure totalled £81.2 million in the period (H1 2025: £443.8 million). This comprised £79.6 million of capital investment in the Group's logistics development and refurbishment programmes (H1 2025: £166.8 million) and £1.6 million related to our data centre projects (H1 2025: £201.0 million). The Group did not acquire any investment properties in the period (H1 2025: £76.0 million).

Embedded value within land options

As land under option approaches the point of receiving planning consent, any associated risk should reduce and the fair value should increase. When calculating EPRA NTA, the Group therefore makes a fair value mark-to-market adjustment for land options. At the period end, the fair value of land options was £16.1 million greater (31 December 2025: £17.7 million greater) than costs expended to date.

 

 

Net assets

The EPRA NTA per share at 30 June 2026 was 185.9 pence (31 December 2025: 187.76 pence). The table below reconciles the movement during the period:

	p
As at 31 December 2025	187.76
Operating profit net of finance costs	4.23
Investment assets	(1.37)
Data Centres	0.87
Development assets	(0.19)
Land options	(0.45)
Merger impact	(0.16)
Other	(0.57)
Dividends paid	(4.24)
As at 30 June 2026	185.88

The Total Accounting Return for the period, which is the change in EPRA NTA plus dividends paid, was 1.3% (H1 2025: 3.6%).

Debt capital

At 30 June 2026, the Group had the following borrowings:

Lender	Maturity	Loan commitment	Notional amount drawn at 30 June 2026	Balance sheet carrying value at 30 June 2026
		£m	£m	£m
Loan notes
2.625% Bonds 2026	Dec-26	65.6	65.6	65.6
2.86% Loan notes 2028	Feb-28	250.0	250.0	250.0
2.98% Loan notes 2030	Feb-30	150.0	150.0	150.0
3.125% Bonds 2031	Dec-31	250.0	250.0	248.6
4.75% Bonds 2032	Nov-32	300.0	300.0	297.3
1.5% Green Bonds 2033	Nov-33	250.0	250.0	247.8
Bank borrowings
RCF (syndicate of nine banks)	Oct-29	500.0	295.0	295.0
RCF (syndicate of eleven banks)	Jun-31	400.0	188.0	188.0
Helaba	Jul-28	50.9	50.9	50.9
PGIM Real Estate Finance	Mar-27	90.0	90.0	90.0
Canada Life	Apr-29	72.0	72.0	72.0
Barclays	Oct-28	150.0	150.0	150.0
Barings Real Estate Advisers	Apr-27	100.0	100.0	100.0
Barings Real Estate Advisers	Feb-31	100.0	100.0	100.0
Santander	Apr-28	350.0	350.0	350.0
Total		3,078.5	2,661.5	2,655.2

During the period, we took up extension options to extend the term by one year on our £400.0 million RCF and the £150.0 million loan facility with Barclays.

We also used the proceeds of our asset sales during the period to repay £272.0 million of the Santander acquisition facility. This is a temporary facility we arranged to part finance the acquisition of the Blackstone portfolio in October 2025. With £350 million outstanding on this loan, we plan to refinance the balance of this loan in due course.

Of the Group's drawn debt as at 30 June 2026, 76.2% was either at fixed interest rates or was hedged. For most of its variable rate debt, the Group uses interest rate caps which run coterminous with the respective loan and protect the Group from significant increases in interest rates. During the period, we extended the current hedging profile by securing new interest rate caps at 3.0% on £350.0 million of debt for 25 months, replacing caps that expired in H1 2026, at a cost of £8.2 million. As a result, at 30 June 2026 the proportion of the Group's debt that was either at fixed rates or had interest rate caps in place was:

·      76.2% including the bridging facility (31 December 2025: 72.7%); and

·      87.7% excluding the acquisition facility (31 December 2025: 93.7%).

Debt maturity

At the period end, assuming we utilise all borrower extensions, the Group's debt had an average maturity of 4.0 years (31 December 2025: 4.3 years). Excluding the Santander facility, the average maturity was 4.4 years.

Loan to value (LTV)

The Group has a conservative leverage policy. At the period end, the LTV was 32.9% (31 December 2025: 33.2%), with the decrease primarily reflecting the £259.1 million of proceeds from our asset disposal programme, which exceeded capital expenditure of £81.2 million in the period. We are targeting disposals for the full year of up to £400 million, subject to market conditions.

Net debt and operating cash flow

Net debt at the period end was £2,518.5 million (31 December 2025: £2,616.7 million), comprising £2,661.5 million of gross debt less £120.2 million of available cash held (31 December 2025: £2,773.5 million gross debt, £130.6 million cash).

Net operating cash flow was £95.8 million for the six months (H1 2025: £100.0 million).

Equity issuance

The final consideration for the Blackstone portfolio we acquired in October 2025 was subject to customary post-completion adjustments under the sale and purchase agreements. Following finalisation of the adjustments, the Company issued a further 12,375,336 ordinary shares, which were admitted to trading on 8 May 2026.

Related party transaction

On 17 June 2026, we announced that the Company had entered into a DMA with the Manager to deliver the 125MW data centre scheme at Chelmsford. Consistent with the Manor Farm data centre scheme, the Manager will receive:

·      a payment of £3.3 million in respect of project assembly services to date at Chelmsford;

·     a development management fee of up to 5% of the development cost of the scheme, contingent upon receiving planning consent; and

·      a profit share of 17.5% of the total development profits, contingent upon full delivery of a practically completed and let data centre. 50% of the Manager's profit share payment will be applied to the subscription or acquisition of shares in the Company.

Further information can be found in note 21 to the financial statements.

Guidance

The table below summarises our current guidance:

Aspect	Guidance
Portfolio rental reversion capture	Potential opportunity to capture 72% within three years.
DMA income	Expected run rate of £3.0-5.0 million per annum in the medium term, with in-year guidance to be given where applicable
Logistics development capex	Target yield on cost: 6-8% FY26: £150-250 million. Longer term: £200-250 million.
Data centre development capex	Target yield on cost: 9-11% FY26: £50-100 million, revised down from £100-200 million per annum due to planning related delays at Manor Farm. Longer-term: Increased to £200-400 million per annum from £100-200 million reflecting enlarged pipeline.
Asset disposals	FY26: Up to £400 million of disposals, subject to market conditions Longer term: Up to £350 million per annum at 5-6% NIY
LTV	Below 35%.
Capitalised interest	FY26: Approximately £15-20 million, subject to data centre construction timing

Going concern

We continue to have a healthy liquidity position, with strong levels of rent collection, a favourable debt maturity profile and debt costs which are substantially fixed or hedged.

The Directors have reviewed our current and projected financial position over a five-year period, making reasonable assumptions about our future trading performance. Various forms of sensitivity analysis have been performed, in particular regarding the financial performance of our clients and expectations over lease renewals. As at 30 June 2026, our property values would have to fall by approximately 50% before our loan covenants are breached at the corporate level.

At the period end, we had £417 million of undrawn commitments under our senior debt facilities and £120.2 million of cash. At the period end, the Group had borrowings of £255.6 million falling due within 12 months and capital commitments of £23.0 million under various development contracts (see note 20). Our loan to value ratio stood at 32.9%, with the debt portfolio having an average maturity term of approximately 4 years.

As at the date of approval of this report, we had substantial headroom within our financial loan covenants. Our financial covenants have been complied with for all loans throughout the period and up to the date of approval of these financial statements. As a result, the Directors have a reasonable expectation that the Company and the Group have adequate resources to continue in operational existence for the foreseeable future, which is considered to be to 5 August 2027.

Credit rating

The Group has an A3 long-term credit rating from Moody's Investor Services.

Change of auditor

As discussed in the Audit & Risk Committee report on page 101 of the 2025 Annual Report, the Group appointed Deloitte as its external auditor from the year ending 31 December 2026. Deloitte replaced BDO, which had conducted the audit since 2014 and had been reappointed in 2017 following a retender.

Alternative Investment Fund Manager (AIFM)

The Manager is authorised and regulated by the Financial Conduct Authority as a full-scope AIFM. The Manager is therefore authorised to provide services to the Group and the Group benefits from the rigorous reporting and ongoing compliance applicable to AIFMs in the UK.

As part of this regulatory process, Langham Hall UK Depositary LLP (Langham Hall) is responsible for cash monitoring, asset verification and oversight of the Company and the Manager. In performing its function, Langham Hall conducts a quarterly review during which it monitors and verifies all new acquisitions, share issues, loan facilities and other key events, together with shareholder distributions, the quarterly management accounts, bank reconciliations and the Company's general controls and processes. Langham Hall provides a written report of its findings to the Company and to the Manager, and to date it has not identified any issues. The Company therefore benefits from a continuous real-time audit check on its processes and controls.

Post balance sheet activity

In the period post the balance sheet date, the Group completed the sale of a £29.5 million investment asset and exchanged to sell £55.5 million of investment assets.

The Group also purchased a 50% interest in a joint venture for £24.3 million in relation to the Chelmsford data centre project.

Proposed Equity Issue to unlock next wave of data centre growth and returns

The Group today announces its intention to conduct a non-pre-emptive placing of new ordinary shares (the "Equity Issue") to raise approximately £350 million of gross proceeds (approximately 8% of current issued share capital). Full details of the proposed Equity Issue are contained in a separate announcement released by the Company.

The Equity Issue is intended to unlock the next wave of data centre growth and returns, The Company intends to use the net proceeds to advance its enlarged pipeline of data centre development opportunities including the early-stage and longer-term capex requirements of two additional data centre schemes totalling 235MW in the Greater London Availability Zones deliverable between 2030-2031. In addition, the proposed Equity Issue enhances the Group's financial flexibility complementing its disciplined approach to capital allocation. Completion of the proposed Equity Issue is subject to shareholder approval at a General Meeting to be held on 24 August 2026.

 

Key performance indicators

Our objective is to deliver attractive, low-risk returns to Shareholders, by executing the Group's Investment Policy and operational strategy. Set out below are the key performance indicators we use to track our progress. For a more detailed explanation of performance, please refer to the Manager's Report.

KPI	Relevance to strategy	Performance
1. Total accounting return (TAR)	TAR calculates the change in the EPRA net tangible assets (EPRA NTA) over the period plus dividends paid. It measures the ultimate outcome of our strategy, which is to deliver value to our shareholders through our portfolio and to deliver a secure and growing income stream.	1.3% for the six months to 30 June 2026 (H1 2025: 3.6%, FY 2025: 5.5%)
2. Dividend	The dividend reflects our ability to deliver a low-risk but growing income stream from our portfolio and is a key element of our TAR.	4.00p per share for the six months to 30 June 2026 (H1 2025: 3.83p, FY 2025: 8.00p)
3. EPRA NTA per share1	The EPRA NTA reflects our ability to grow the portfolio and to add value to it throughout the lifecycle of our assets.	185.9p at 30 June 2026 (30 June 2025: 188.17p, 31 December 2025: 187.76p).
4. Loan to value ratio (LTV)	The LTV measures the prudence of our financing strategy, balancing the potential amplification of returns and portfolio diversification that come with using debt against the need to successfully manage risk.	32.9% at 30 June 2026 (30 June 2025: 30.9%, 31 December 2025: 33.2%).
5. Adjusted earnings per share	The Adjusted EPS reflects our ability to generate earnings from our portfolio, which ultimately underpins our dividend payments.	4.41p per share for the six months to 30 June 2026 (H1 2025: 4.63p, FY 2025: 8.87p) 4.41p excluding all development management income (H1 2025: 4.12p, FY 2025: 8.22p). See note 1 within EPRA and other key performance indicators.
6. Weighted average unexpired lease term (WAULT)	The WAULT is a key measure of the quality of our portfolio. Long lease terms underpin the security of our income stream.	9.9 years at 30 June 2026 (30 June 2025: 10.3 years, 31 December 2025: 9.6 years).
7. Global Real Estate Sustainability Benchmark (GRESB) score	The GRESB score reflects the sustainability of our assets and how well we are managing ESG risks and opportunities. Sustainable assets protect us against climate change and help our clients to operate efficiently.	85/100 and 4 Green Star rating for 2025 (2024: 85/100, 4 Green Star rating) 99/100 and 5 Green Star rating for developments for 2025 (2024: 99/100 and 5 Green Star rating for developments)

¹ EPRA NTA is calculated in accordance with the Best Practices Recommendations of the European Public Real Estate Association (EPRA). We use these alternative metrics as they provide a transparent and consistent basis to enable comparison between European property companies.

EPRA performance indicators

The table below shows additional performance measures, calculated in accordance with the Best Practices Recommendations of the European Public Real Estate Association (EPRA). We provide these measures to aid comparison with other European real estate businesses.

For a full reconciliation of all EPRA performance indicators, please see Notes to the EPRA and other key performance indicators.

Measure and Definition	Purpose	Performance
1. EPRA Earnings See note 8	A key measure of a group's underlying operating results and an indication of the extent to which current dividend payments are supported by earnings.	£106.9 m / 3.95p per share (H1 2025: £112.4m / 4.53p per share, FY 2025: £212.7m / 8.42p per share).
2. EPRA Net Tangible Assets See note 18	Assumes that entities buy and sell assets, thereby crystallising certain levels of unavoidable deferred tax.	£5,045.6m / 185.9p per share as at 30 June 2026 (30 June 2025: £4,668.0m / 188.2p per share, 31 December 2025: £5,073.4m / 187.8p per share).
3. EPRA Net Reinstatement Value (NRV)	Assumes that entities never sell assets and aims to represent the value required to rebuild the entity.	£5,566.4m / 205.6p per share as at 30 June 2026 (30 June 2025: £5,131.8m / 206.9p per share, 31 December 2025: £5,608.4m / 207.6p per share).
4. EPRA Net Disposal Value (NDV)	Represents the shareholders' value under a disposal scenario, where deferred tax, financial instruments and certain other adjustments are calculated to the full extent of their liability, net of any resulting tax.	£5,194.0m / 191.3p per share as at 30 June 2026 (30 June 2025: £4,817.8m / 194.2p per share, 31 December 2025: £5,216.7m / 193.1p per share)
5. EPRA Net Initial Yield (NIY)	This measure should make it easier for investors to judge for themselves how the valuations of two portfolios compare.	4.38% as at 30 June 2026 (30 June 2025: 4.44, 31 December 2025: 4.38%).
6. EPRA 'Topped-Up' NIY	This measure should make it easier for investors to judge for themselves how the valuations of two portfolios compare.	4.70% as at 30 June 2026 (30 June 2025: 4.66%, 31 December 2025: 4.64%).
7. EPRA Vacancy	A "pure" (%) measure of investment property space that is vacant, based on ERV.	6.48% as at 30 June 2026 (30 June 2025: 5.6%, 31 December 2025: 5.6%).
8. EPRA Cost Ratio	A key measure to enable meaningful measurement of the changes in a group's operating costs.	13.5% including vacancy costs (H1 2025: 13.8%, FY 2025: 13.7%). 12.2% excluding vacancy costs (H1 2025: 12.9 %, FY 2025: 12.4%).
9. EPRA LTV	A key shareholder-gearing metric to determine the percentage of debt comparing to the appraised value of the properties.	34.0% as at 30 June 2026 (30 June 2025: 31.9%, 31 December 2025: 35.4%).