“Our NNN income model has delivered exceptional earnings and dividend per share growth of 21% and 18% respectively. We have integrated the £3 billion of assets acquired through the LXi takeover, transacted on over £680 million of investments, and delivered strong rental growth from 340 asset management initiatives.”
Chief Executive
Highlights
Focus on winning sectors and delivering on M&A drives rents, earnings and dividend growth
- Net rental income increased 123% to £390.6m
- EPRA earnings up 120% to £268.0m, +20.7% on a per share basis
- Sector leading EPRA cost ratio at 7.8%
- Dividend increased 17.6% to 12.0p, 109% covered by earnings, including Q4 dividend declared today of 3.3p
- Continued dividend progression with expected 5.3% increase in Q1 2026 dividend to 3.0p (Q1 25: 2.85p)
Strong returns driven by reliable, repetitive and growing income
- Total property return of 8.3% (200bps outperformance of MSCI), income return 5.7% and ERV growth 3%
- Like for like income growth of 4.2% drives valuation uplift of £106.0m
- EPRA NTA per share of 199.2p (+3.9%)
- IFRS reported profit of £347.9m (2024: £118.7m)
- Total accounting return of 9.7% (2024: 1.3%)
Portfolio aligned to strongest thematics
- Portfolio value of £6.2bn (2024: £6.0bn) with logistics weighting at 46%
- £343m acquired in year (87% logistics)
- £342m disposed (£214m were former LXi and CTPT assets), further £63 million sold post year end
Activity continues to enhance portfolio quality, strengthening long and strong income characteristic
- WAULT of 18.5 years, gross to net income ratio of 99% and occupancy at 98% (99% post year end activity)
- Contractual rental uplifts on 77% of income, 40% of income subject to annual reviews
- Occupational activity added £15.3m pa contracted income
- Rent reviews +17% on five yearly equivalent basis with market reviews +40%
- Income uplift expected over next two years of £27m, 18% embedded reversion on logistics assets
- 92% of portfolio EPC A-C rated (up from 85%) with 3.6MWp of solar PV added and 2.6MWp of near-term potential
Scale delivering economies of opportunities and greater access to capital
- Unlocked M&A with Urban Logistics REIT Plc and Highcroft Investments Plc adding £1.2bn of assets
- Extended maturity on £975m of debt and new debt facilities of £525m (with post year end activity)
- LTV at 32.7%, debt maturity of 4.7 years and cost of debt at 4.0% (100% hedged following £489m of hedging activity)
- BBB+ credit rating in year increases options for future financings