Tritax Big Box profits rise on strong rental growth

Logistical warehouse specialist Tritax Big Box said interim operating profit rose 5.6% driven by development completions and like-for-like rental growth.

The company said operating profit for the six months to June 30 came in at £88.6m as the boom in online shopping during Covid lockdowns saw companies looking for more warehouse space.

Tritax’s contracted annual rent roll grew 10.5% to £216m, with the supply of logistics space highly constrained and a 1.2% vacancy rate resulting in rapid leasing of buildings and rental growth.

“While noting the increasingly uncertain economic outlook, we continue to see strong occupier demand from a more diverse range of customers which is driving rents and supporting our ability to mitigate the effects of higher inflation,” the company said on Thursday.

Reporting by Frank Prenesti at Sharecast.com