Tritax Big Box REIT plc

Good morning and welcome to our results presentation for the first six months of 2026. I'm Colin Godfrey, CEO of Tritax Big Box. As usual, I will kick off with our key messages before Frankie, our CFO, provides an update on our financial and operational performance. I'll then outline substantial strategic progress that we've made in the period before opening the lines for Q&A. The key message that I want to deliver this morning is that we're exceptionally well positioned to take advantage of the significant opportunities inherent within our business and the broader market. We continue to deliver against our key growth milestones, and with a near doubling of secure power for our data center pipeline, we're increasing our EPS growth ambition to 65% by 2031 or sooner, from 50% by 2030. The first half of 2026 has been defined by strong execution and a series of important strategic milestones across the business. Active asset management and capture of rental reversion has delivered strong income growth and we've been doing this at pace. Supported by a successful disposal program, we've recycled capital from lower returning assets to generate superior risk-adjusted returns and provide a key source of funding flexibility. Since January 2023, we have redeployed more than £1 billion into higher returning opportunities. In development, our agile platform continues to create future income opportunities at attractive yields on cost, allowing us to align development activity with market conditions and allocate capital selectively. Just 18 months after entering the data center sector, we have already made meaningful capital value development gains, which will be followed by significant rental income and earnings growth as schemes are delivered. Together, these achievements have delivered another period of strong financial performance with growth in net rental income, earnings, and dividends, which Frankie will cover in more detail shortly. They demonstrate the earnings power of our platform and the significant opportunity ahead as we continue to progress towards our long-term earnings ambition. Yesterday afternoon, we announced the exciting news that we have secured a further 235 megawatts of power for our data center pipeline. This is another major milestone building on successful granting of planning permission at Manafarm in the period. This incremental power is phased for delivery in 2030 to 2031 and nearly doubles our secured power to 507 megawatts. It is connected to two additional schemes which have the potential to deliver exceptional risk adjusted returns with a yield on cost of between 9 and 11% and a profit on cost in excess of 50%. The proposed equity issue unlocks the next wave of the data center pipeline, securing the early stage and longer term capex requirements of these two schemes, complementing our ongoing capital recycling program. These two new schemes give us the potential to nearly double our expected data centre rental income from the £58 million that we announced for the Manor Farm and Chelmsford projects to between £107 and £119 million. It is this additional opportunity which gives us the confidence to increase our adjusted EPS growth ambition to 65% by 2031 or sooner, up from 50% by 2030. Given commercial sensitivities, and as was the case with Chelmsford, we are not disclosing the precise locations of these two new schemes. However, they are both in the prime Greater London availability zone. This is further evidence that our power-first approach is working, creating exciting prospects in data centers with the potential to deliver exceptional risk-adjusted returns across a current total opportunity of over one gigawatt of potential power capacity. With that, I'll hand over to Frankie to cover the financial and operational review. Frankie.

Thank you Colin and good morning everyone. This first half reflects another strong period of disciplined execution across the business with consistent delivery across asset management, capital recycling and progress with our development opportunities. This has translated into strong earnings growth along with creating significant future opportunities to deliver value to shareholders. Starting with the headlines. The portfolio generated 5.1% EPRA like-for-like rental growth, more than double the level of the prior period. Adjusted EPS, excluding all DMA income, increased by 7% to 4.41 pence. And the dividend grew to 4 pence per share, a 4.4% increase. Our portfolio value was £7.7 billion, reflecting net disposals and modest valuation movements, resulting in a 1% reduction in EPRA NTA per share to 185.9 pence. Turning to the income statement, which highlights our recurring earnings and dividend growth. Net rental income increased by 16.2% to £173.3 million. Driven by the contribution from the Blackstone portfolio acquired in October 2025 and strong like-for-like rental growth. Operational efficiencies reduced the EPRA cost ratio excluding vacancy costs to 12.2%. This remains one of the lowest in the European real estate sector as the bottom right hand chart shows. As a result, operating profit increased by 6.1%. We have taken the opportunity to simplify our disclosure around earnings, which we now quote fully inclusive and fully exclusive of DMA income. Adjusted EPS excluding all DMA income increased by 7% to 4.41 pence. Adjusted earnings per share was also 4.41 pence with no DMA income recognised during the period. And the dividend represented a 91% payout ratio. The right hand chart sets out the moving parts of annual contracted rent over the period. and with the ERV of the portfolio 29% ahead of contracted rent, this shows that looking forward, there is still plenty of income growth to deliver. Our capital allocation framework remains unchanged. We continue to recycle capital from lower returning assets into higher risk adjusted returns. At 30 June, the LTV had reduced to 32.9%. and when including post-period end disposals, reduces further to 32.1%. Despite some softening in prime yields, EPRA NTA per share declined only 1%, reflecting portfolio resilience and was offset by value created from our active asset management and development activity. We completed £259 million of disposals during the half, averaging 2% above prevailing book values and £344 million in the year to date. Just to highlight how effective we have been at funding our strategy in recent years, this takes total disposals over a three and a half year period to over £1 billion. As ever, capex invested over the period is reflective of specific circumstances in relation to our development sites. The planning delay at Manor Farm has been well communicated, and this was coupled with a delayed planning decision at a logistics site. Our logistics capex, including development and asset refurbishment, therefore, has been lower than anticipated this half, with a combined £79 million invested. CapEx in half two is set to increase and I will update you on how we see the remainder of the year on a later slide. Total accounting returns were impacted by the capital value performance across the portfolio of minus 0.2% for the period. Our 2.3% earnings yield for the six months was partly offset by a combined 0.9% reduction across our investment and logistics development portfolios as our equivalent yield moved out by 10 basis points to 5.8%. Like-for-like ERV growth remained healthy, however, at 1.9% for the six months. We are now starting to see value delivered from our DC pipeline. with a 0.5% positive contribution in respect of the Manor Farm planning delivery. Together, this produced an underlying total accounting return of 1.6% for the six months and a reported total accounting return of 1.3% after a land option impairment and the Blackstone completion statement true-up effects. Importantly, these returns do not yet reflect the full earnings and shareholder value potential embedded within the business. The benefits from the Blackstone portfolio are only just beginning to flow through, while the most significant value creation opportunities associated with our data center platform remain ahead of us, which I'll talk to in a moment. Now looking at our three growth drivers. First, asset management, which continues to deliver attractive and highly visible earnings growth. Across all lease events, we have secured £8.6 million of additional annual rental income, over 50% higher than the same period last year, delivering an average 10.5% uplift in passing rents. With a larger part of the portfolio subject to lease events in the period, this has led to our strong EPRA like-for-like rental growth of 5.1%. In our 2025 annual results, we signalled £26.9 million of potential reversion capture for this year. And we're making good progress looking at the bottom left-hand chart. First, we have captured £6.5 million of rental reversion through lease events in the first half, achieving 100% of the potential that we previously indicated. Second, we have £4.5 million of rental reversion attached to half-won lease events which are currently in progress. To remind you, we have a policy of accruing 75% of this from the rent review date. And thirdly, the second half events are even more significant, with over 15 million pounds of rental reversion available in half two. Portfolio vacancy was slightly higher overall, but this reflected net development activity. Underlying vacancy remained stable at 3.1%. Logistics development is our second growth driver. We currently have 1.2 million square feet under construction, representing £13 million of potential additional rent, with 78% of this already secured via pre-leasing. We completed 0.6 million square feet of new space, with potential rent of £6.9 million at an expected yield on cost of over 10%. This very attractive yield reflects later phases of schemes where land and infrastructure costs have already been born within previous phases. Further, we secured development lettings in the period, adding almost £5 million of annual rent and achieved an average yield on cost of around 7.5%. And Colin will expand upon some of the positive, forward-looking indicators that we are seeing in a moment. Now turning to data centers, our third growth driver. On the left is a reminder of the key features of our power first approach. An attractive component is that most of the value is created before construction begins. This illustration shows that approximately 60% of expected development profit is captured through delivering power, planning, and pre-letting. At Manor Farm, we had recognised approximately 20% of scheme profit at 30 June, stepping up to 30% in July after clearing the judicial review period. And with a pre-lease expected in half two, we expect to recognise 60% of scheme profits by the financial year end. And at Chelmsford, around 10% of scheme profit had been recognised at 30 June. and with planning permission pending, we expect to recognize at least 30% by the year end. Overall, this could translate to up to 100 million pounds of data center development profit being recognized this current year. Sustainability remains integral to our strategy and supports all three growth drivers. We continue to progress across the four pillars of our framework. including increasing rooftop solar, biodiversity, communities and carbon reduction initiatives. We're also developing a dedicated sustainability approach for our data centres, which we believe will differentiate our projects and we will talk more about this in future presentations. Our balance sheet remains a competitive advantage, supported by our staggered, diversified and long-term debt portfolio. We ended the period with an LTV of 32.9%, approximately 530 million pounds of available liquidity, four years average debt maturity and an average cost of debt of 3.6%. Pulling out the middle chart on this slide, which highlights an important point. Even if interest rates remain elevated and refinancing occurs at prevailing market rates, existing portfolio rental reversion far exceeds projected medium-term financing cost increases. And this is before any further rental growth is factored in. So overall, our balance sheet strength provides us with substantial flexibility to fund our future growth opportunities. Looking now at some forward guidance. Given the lower capex deployed in this first half, we have updated some of the current year figures in this table to reflect this. We expect to deliver up to 400 million pounds of disposals during the full year 2026 and are well on track given year-to-date activity. We continue to see annual logistics development capex of 200 to 250 million pounds over the long term. and given the development of the broader data center opportunity in the period, we are upgrading our capex targets for data centers from next year, effectively doubling these to between 200 and 400 million pounds per annum at a targeted yield on cost of 9 to 11%. To conclude, the business continues to combine strategic delivery with financial strength, supported by our robust balance sheet. Together, these support our three growth drivers, asset management and capturing rental reversion, logistics development, and our data center pipeline. And it's this combination augmented by the news of new power connections being secured and new equity capital to support enhanced DC development, which positions us to achieve our upgraded adjusted earnings per share growth ambition of 65% by 2031. And now I'll hand you back to Colin for the strategic update.

Thanks, Frankie. Well, I've never before been more confident in our ability to create long-term value for shareholders. We built a unique platform in the most exciting segments of UK real estate. A market-leading logistics portfolio with significant embedded rental growth, an agile logistics development platform and a hugely compelling and growing opportunity in data centres. These foundations, established over the last decade, have created a broader opportunity set than ever before, while remaining supported by high-quality income-producing assets and a strong balance sheet. As a result, we are extremely well positioned to continue growing earnings and creating significant value for shareholders over the long term. Starting with a high-level summary on the market. Demand, led by e-commerce occupiers, is healthy at 10.9 million square feet and supply remains constrained with limited speculative development starts. Vacancy remained stable at around 7% while rental growth was 2.1% in line with our portfolio. Investment market activity, suppressed in the spring due to the geopolitical events, shows signs of improvement, with high-quality logistics assets continuing to attract investor interest, albeit that there has been some modest yield softening. Against this backdrop, our portfolio has performed well, reflecting its quality and positioning, and we are optimally placed to capture further growth. We've developed our strategy so that the business can thrive in all market conditions. Our objective remains unchanged to convert structural demand across logistics and data centers into superior risk-adjusted returns for shareholders. We achieve this through owning and developing high quality assets and directly and actively managing them. We are client focused, sustainability led and differentiated by our entrepreneurialism. And the value that we're delivering is from three distinct and powerful growth drivers. First, capturing rental reversion and creating value through active asset management. Second, delivering logistics developments at attractive yields on cost through an agile and capital-efficient development platform. And third, generating exceptional returns from pre-let data center developments through our innovative power-first approach. Together, these growth drivers provide attractive high-quality income growth and substantial long-term value creation opportunities. Our portfolio is a significant competitive advantage. It's a deliberately curated market-leading collection of modern and mission-critical logistics assets in the UK's most important distribution locations, leased to world-leading occupiers and generating highly resilient income. Supported by a triple net lease structure, it delivers high quality and resilient cash flows, providing a strong platform for embedded and sustainable earnings growth. Turning then to our growth drivers. Building on the compounding nature of our rental income, our first growth driver remains one of the most compelling opportunities available to us. Market rental growth has been replenishing our portfolio rental reversion at the same rate that we have been capturing it, which is why our attractive level of reversion of over £100 million has remained broadly unchanged. And importantly, this growth requires little or no capital investment. We have a long established track record of meeting or exceeding market rental values when opportunities arise, and during the first half we captured 100% of available ERV. As shown here on the right, we estimate that more than 70% of today's rental reversion can be captured within the next three years. This is highly visible, high quality and capital light earnings growth that remains within our control to deliver. Following the successful acquisition of UKCM, the non-strategic asset sales have been above the purchase prices in aggregate and we now have the final asset in Solista's hands. Enhancing our urban small box opportunity, the Blackstone acquisition significantly increased our rental reversion and is performing strongly with contracted rent up 4.4% and more to come. A direct approach to asset management is producing compelling results, having completed 14 new lettings, adding around £2 million of income and delivered average uplifts of 42% at rent review, representing a new asset event every two days since acquisition. The examples on the right highlight the opportunity to deliver compelling rental income growth. Contracted rent has increased by 56% at Gatwick Distribution Point and 33% at Sturchley Trading Estate since acquisition. Taken together, this demonstrates that the Blackstone portfolio is performing in line with and in some areas ahead of our original expectations. Our second growth driver is logistics development. With more than £360 million of future rental income potential, this remains one of the largest and most attractive development portfolios in the UK market. Through our agile and capital-efficient approach, we target yields on cost of 6% to 8%, with recent activity towards the top end of that range. Development activity in the first half was lower than prior periods, reflecting planning timetables on a small number of schemes rather than any change in occupier demand. As we've shown on the right, we have prelets in solicitors' hands, advanced discussions across several opportunities and strong occupier inquiry levels. Combined with our capital efficient and land option model, this leaves us well positioned to accelerate delivery as schemes move through the pipeline and operational demand crystallizes. Data centers represent a significant additional growth opportunity and are already contributing to performance. Market demand continues to accelerate, driven by hyperscale cloud, AI and data sovereignty requirements, while power constraints continue to limit new supply. As a result, occupiers are expanding beyond traditional West London locations into new markets where power is available. These conditions play directly to the strengths of our lower risk power first strategy, creating opportunities to deliver projects of scale for leading operators. This third growth driver is a particularly exciting part of our strategy because we're at the early stages of the journey and there is so much more to come. Manor Farm demonstrates why our power first approach to data centers is so valuable in a power constrained market. With power and planning consent secured, We now own an exceptionally scarce asset of scale in one of the world's most important data center locations. This has attracted significant occupier interest with a pre-let imminent. And as Frankie highlighted earlier, All of this supports a meaningful uplift in NTA, with development profits preceding attractive rental income at a 9.3% yield on cost, creating exceptional risk-adjusted returns. This is our power-first approach in action. And the really exciting news is that Manor Farm is just the start as we are today announcing two further schemes which nearly double the amount of our secured power. As we outline on the left hand side of this slide, our first two schemes have the potential to deliver approximately £58 million of annual rent at an attractive 9-11% yield on cost, with planning secured at Manor Farm and Chelmsford not far behind. They are already contributing to NTA growth with capital value gains in the period. And as mentioned, we have secured an additional 235 megawatts of power, enabling an additional two schemes in the London availability zone, as shown in the middle of the slide. This near doubling of our secure power also gives us the capability to nearly double the potential data center rental income that we can generate of between 107 and 119 million pounds per annum at compelling yields on cost, supporting an increase in our EPS ambition. These secured schemes form part of a total current opportunity of over one gigawatt, offering the potential to deliver exceptional income and capital returns over the medium term. Bringing everything together, you'll be familiar with this bridge which illustrates the scale of the opportunity ahead, giving us the potential to nearly double our rent roll in the medium term. So starting with today's passing rent on the left, we show how our three growth drivers can deliver materially higher earnings over time. Rental reversion provides the largest near-term opportunity driven by lease events and active asset management. Logistics development adds a substantial layer of potential future income and capital value growth through prelets, completions and the continued replenishment of the pipeline. Data centres provide a significant additional source of both income growth and value creation. beginning with Manor Farm in Chelmsford and the contribution of the new schemes of £55 million, effectively providing approximately £113 million of rental income. And while this bridge shows the rental income potential within the business, we also expect to deliver significant NTA growth, which will support total accounting returns. This is particularly relevant to our data center pipeline, where meaningful development gains will drive NTA growth ahead of significant rental income contributions. So in conclusion, we have never been more confident in the opportunity ahead. Our high quality portfolio with substantial embedded rental growth, agile development platform and exceptional data center opportunities provide multiple pathways to grow income significantly and create substantial value. Supported by a strong balance sheet and disciplined capital allocation, we believe that we are very well positioned to deliver our enhanced earnings growth ambition. Thank you for joining us. That concludes the formal part of our presentation. I'll now hand over to Ian for your questions. Ian.