Tritax Big Box REIT has said it is on track to collect 99% of rent owed in the first half of the year ending June, while highlighting expectations for “greater letting opportunities” in the second half of its financial year.
The logistics landlord has collected 98% of Q1 rent owed this year and 95% of Q2 rent. Almost all (99.8%) of rent for the 2020 financial year has been received, with full collection expected by the summer.
Tritax said 37% of its portfolio is due for rent review in its 2021 financial year. During the year to date it has undertaken around a third of the rent reviews falling due during 2021. Combined with two historic reviews settled during the period, £3.1m was added to annual contracted rent, up on £2m in the previous year.
In its latest trading update, Tritax noted an “increasing level of interest” in its development pipeline and that it expects an “acceleration” in letting activity from its land platform through to H1 2022.
Key activity during the first quarter included practical completion of construction for DPD at Bicester, its first net-zero carbon in construction building, and the Co-operative Group’s distribution centre at Biggleswade. Combined, these are contributing £5.5m to its passing annual rent.
Colin Godfrey, chief executive fund management, said: “We have made a good start to the year across all aspects of our business through a combination of effectively implementing our strategy and strong market fundamentals.
He added: “Our development platform is making good progress and, in line with our guidance, with more of our sites progressing through the planning process, we are well placed to begin capturing greater letting opportunities from the second half of this year.”
The news comes as Sir Richard Jewson formally steps down as chairman at the company’s AGM today. He will be replaced by senior independent director and former Savills chief executive Aubrey Adams.
To send feedback, e-mail pui-guan.man@egi.co.uk or tweet @PuiGuanM or @estatesgazette
