Tritax Big Box REIT Shares Rise: Sees Potential to Deliver 50% Medium-Term Earnings Growth

Tritax Big Box REIT (LON: BBOX) shares rose on Monday after the firm told investors that it anticipates growing adjusted earnings by 50% by the end of 2030. 

The forecast is underpinned by rental reversion, development opportunities, and its entry into large-scale data centres.

BBOX shares are up more than 1% at the start of the session, trading around the 149.9p mark.

Ahead of an investor seminar, the REIT outlined three main growth drivers: record rental reversion within its logistics portfolio with the potential to add £79 million to contracted rent, a development pipeline capable of adding more than £320 million in rent, and data centre schemes expected to contribute £58 million.

“With record rental reversion, an attractive logistics development pipeline and, thanks to our innovative power-first approach, the potential for major data centres, it is both the breadth and scale of our opportunity which is unique in UK real estate,” said CEO Colin Godfrey.

The logistics development programme is forecast to generate a 6–8% yield on cost, while data centre projects are targeting even higher returns. 

The first phase of its Manor Farm data centre is expected to deliver £34 million in annual rent from the second half of 2027, with a yield on cost of 9.3%. A second project, scheduled for 2028, is targeting a 10–11% yield.

Tritax said it is actively recycling capital from disposals into high-return opportunities and is supported by a strong balance sheet and efficient cost base.

The company also highlighted progress in asset management following its UKCM acquisition, particularly in urban logistics, which complements its core big box portfolio.

Godfrey added that the factors listed “give us the ability to grow Adjusted earnings by 50% by the end of 2030 and deliver superior risk-adjusted returns to shareholders.”