(Alliance News) - Tritax Big Box REIT PLC on Thursday said it is benefiting from accelerating structural changes such as growth in e-commerce as its interim profit surged in the first half of 2021.
Pretax profit for the six months that ended June 30 was GBP376 million, more than tripled year-on-year from GBP103.2 million.
The London-based investor in distribution centres reported contracted annual rent of GBP189 million, up 4.7% from GBP180.6 million in the six months to December 31.
"We are benefiting from implementing a strategy that anticipated long-term and accelerating structural changes, particularly the growth in e-commerce. The strategic decision we took in 2019 to increase our development capabilities is paying off, providing us with a significant opportunity to capture unprecedented levels of demand and deliver attractive total returns to shareholders," said Chair Aubrey Adams.
IFRS net asset value per share increased by 11% from 169.92 pence per share to 188.57 pence.
EPRA net tangible assets per share were at 194.22 pence per share, up 11% from 175.61 pence.
"We are still in the early stages of a long-term growth cycle in the UK logistics real estate sector. The structural tailwinds driving occupier demand, notably the accelerating growth in e-commerce, remain firmly in place, contributing to the ongoing occupational demand-supply imbalance. Aligned to this, we expect to see further letting activity in the second half of this year," the firm said.
Tritax believes it has the "relevant capacity to secure the significant opportunities" ahead and looks "forward to further progress in the second half."
Shares in Tritax were up 2.8% to 222.60 pence each in London on Thursday morning.
By Amrit Sahota; newsroom@alliancenews.com
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Tritax Big Box (BBOX)