Tritax Big Box REIT generated a total return of 15.1% in 2016, beating the FTSE EPRA/NAREIT UK Index’s 10.2%.
In a trading update ahead of its December year-end results, the REIT said its portfolio’s value stood at £1.9bn. It invested in 35 assets with a combined floor space of 18.2m sq ft and let to 29 tenants.
Last year it made 10 investments, valued at £524m in total.
Tritax’s portfolio is now 100% let and has an unexpired lease term of 15.3 years. It generates annual rent of £99.7m.
Since the REIT’s inception, four out of five deals have been off market, with an average yield of 5.7%. Several properties were under offer, it said.
Colin Godfrey, partner at Tritax, said: “Demand for quality logistics assets continued during 2016, with yields buoyed by industrial rental growth.
“Big Box continues to benefit from changing shopping habits, with the growth in e-commerce and the economies of scale offered by these assets driving occupational demand. Significant barriers to entry limit supply and drive rental growth.”
• To send feedback, e-mail alex.peace@estatesgazette.com or tweet @egalexpeace or @estatesgazette
