Tritax Big Box’s profit rose 19% in the first half as the warehouse operator felt the benefit of “unprecedented” demand fuelled by the move to online shopping.
Operating profit for the six months to the end of June rose to £84.1m before changes to fair value and other adjustments from £70.6m a year earlier as net rental income increased to £87.4m from £78.8m. Tritax Big Box increased its dividend by 2.4% to 3.2p a share.
The company said it had the highest first-half take-up for its logistics space on record of 21m sq ft with a further 16m sq ft under offer. Demand for warehouses has boomed during the pandemic as the shift to online shopping has accelerated, leaving retailers and other companies needing more space for deliveries.
Tritax Big Box’s customers include Amazon, which accounts for 17% of annual rents, Tesco and Marks & Spencer.
Aubrey Adams, the company’s chairman, said: “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.”
The FTSE 250 group’s shares rose 2% to 220.98p at 10:07 BST, taking gains in 2021 to 31%.
