Investment trust insider on Tritax Big Box REIT – James Carthew: The overly discounted Reit with plenty of growth ahead
Investors are cautious of Tritax Big Box’s descent from a 30% premium to 26% discount, but its lengthy pipeline of M&A activity makes it one to watch.
Tritax Big Box Reit (BBOX) ranks as one of the largest London-listed investment companies with a market cap of £3.5bn, which positions it towards the top end of the FTSE 250 Index.
For many years, industrial property was an unloved and neglected part of the property market. New, purpose-built facilities were rare.
However, the ecommerce boom triggered a shift in sentiment and new demand, especially for large (500,000 square feet and upwards) “big boxes”. BBOX launched in 2013 to ride that wave and swiftly became one of the leading owners of this type of property.
By the end of June 2025, BBOX had 42.4m square feet of logistics assets and a further 10 properties (just under 1m square feet) of assets it was looking to sell. The whole portfolio was valued at over £6.8bn. Some £2.1bn of that was funded by debt – a loan-to value ratio of 30.9%, which equates to gearing of 45.2%.
BBOX set out to generate returns of 9% per annum over the medium term, and over the past 10 years it has achieved that in NAV terms. However, investors’ perceptions of the trust have been coloured by its shift from trading on a premium to NAV as high as 30% at the end of 2021 to languish on a 26% discount today.
If we go back to… read more here