Tritax Big Box (AO) | Buy | A big step forward on data centres

Research evidence excerpt

Tritax Big Box (AO) | Buy | A big step forward on data centres

Tritax Big Box Buy | Target Price: 175p

Company description Management

Tritax is an externally managed UK REIT focused exclusively on owning and Aubrey Adams, Independent Chairman

developing UK distribution warehouses (primarily the biggest) and data centres. Colin Godfrey, CEO, Tritax Group

Since its formation in late 2013, the same management team initially acquired Frankie Whitehead, CFO, Tritax Group

and subsequently developed a portfolio of high-quality warehouses, mainly let Key shareholders

under long triple net leases. Its acquisitions were largely property by property Free float 98.60%

until its acquisition of UKCM in 2024, which increased the value of its portfolio to Blackrock 10.59%

c. GBP6.2bn. Phoenix Life 1.10% Vanguard Group 4.14%

Investment case Valuation methodology

We believe Tritax is well placed to deliver strong top-line growth We base 80% of our target price on a ten-year DCF model. We

from its current positive reversion, its large attractive believe this allows us to best capture our views of both the long-

development pipeline (incl. data centres) and further market term growth and risk profiles of Tritax's business. Key in this

rent growth from structural change driving UK warehouse respect are: 1) both operational and financial gearing, 2) the

tenant demand. operating platform and management's influence, and 3) long-

We forecast an acceleration in EPS growth in 2026, driven by a term property sub-sector prospects.

greater uplift in rents from lease events and accretion from the We base 20% of its target price on a multiple of NAV.

Blackstone portfolio acquisition, and the growth to be sustained Risks to our rating

in 2027 and 2028.