Tritax Big Box REIT (BBOX) investor relations material

Deal rationale and strategic fit

• Acquisition of 41 high-quality urban and big box logistics properties in key UK locations, expanding the asset base and supporting a leading market position.

• Assets are strategically located, broadening exposure in the Southeast, Midlands, and Northwest, and increasing urban weighting from 2% to over 20% since 2022.

• Properties acquired below replacement cost, providing an attractive entry point and reinforcing the platform's leadership.

• Portfolio complements existing strategy, supporting sustainable, long-term returns and broadening the customer offering.

• Aligns with growth drivers focused on rental reversion, development pipeline, and data center expansion.

Financial terms and conditions

• Total consideration of £1.04 billion, funded by £632–£635 million in cash (via a new £650 million debt facility) and up to £377 million in new shares issued at a 13.5–14% premium to the share price.

• Shares issued at 161p, a 14% premium to 30-day VWAP, with Blackstone receiving an 8.6–9% shareholding.

• Blackstone receives a £20 million rental reversion bridge, recognized over three years.

• Pro forma loan-to-value ratio expected at 35%, with a plan to reduce to 30% via £300 million of disposals over 12–18 months.

• Gross asset value increases to £7.86–£7.9 billion.

Synergies and expected cost savings

• Significant rental reversion potential, with 38% upside in urban assets and 28% across the portfolio.

• Operational leverage and economies of scale in asset management, leasing, facilities management, and insurance.

• Expected mid-single digit EPS accretion from year one and IRRs above cost of capital.

• Enhanced asset management opportunities and client solutions from a broader property offering.

• £20 million vendor-funded rental reversion bridge supports earnings over three years.