Tritax Big Box REIT plc (BBOX · LSE)
Warehouses Today, Power for Tomorrow
The UK's biggest owner of large distribution warehouses, now using its grid connections to build data centres in a market starved of power.
Bull case for Tritax Big Box REIT plc
Rents lag the market by roughly a third
Existing leases sit far below today's market rents, so income rises as leases reset.
Land options let it build cheaply
Long-dated options mean it buys land only after planning, cutting risk and upfront cash.
Secured grid power unlocks data centres
It holds electricity connections others must wait a decade for, enabling scarce data centre sites.
Bear case for Tritax Big Box REIT plc
Property values swing with interest rates
Higher rates push valuation yields out, cutting asset values regardless of rental performance.
Planning delays stall development starts
UK planning timetables can slip for years, pushing back income from new schemes.
Data centres need heavy capital upfront
Large sums go in before any rent arrives, and funding may need new shares.