Tritax Big Box REIT Annual Rents and Rental Values Increase

Tritax Big Box REIT, a commercial-property investor, has reported an increase in its annual contracted rents and estimated rental values, despite also seeing an uptick in vacancies.

Strong Performance in Development Lettings

In 2023, Tritax Big Box REIT added £7.8 million ($9.9 million) of annual contracted rent through the development lettings of approximately 900,000 square feet of space. The company has also initiated more lettings developments, which have the potential to add an additional £15.6 million per year to the contracted rent in the future.

Growth in Rental Values

The company has experienced a 6.9% growth in like-for-like estimated rental values, contributing an extra £4.9 million to its annual contracted rents. The increase is attributable to successful rent reviews and asset management initiatives.

Increase in Vacant Space and Prime Rents

Despite the positive performance in rents and rental values, Tritax Big Box REIT has witnessed an increase in ready-to-occupy vacant space, which now stands at 5.1%, compared to 2.0% the previous year. However, prime headline rents have risen by 7.8%, although this growth rate is lower than that of 2022, which recorded a 12.9% increase.

Optimistic Outlook

While the logistics real estate market remains relatively subdued, Tritax Big Box REIT remains optimistic about the future. The company believes that the improvement in market conditions will provide favorable opportunities.

Chief Executive Colin Godfrey stated, "With record rental reversion in our portfolio, an attractive development pipeline, and a strong balance sheet, we are well positioned to deliver further income and capital growth."