“Our latest results reflect the progress that we have made over the last few years to create the UK's largest and most efficient NNN REIT. Despite macro uncertainty, our relentless focus on income and ongoing rental growth, has again delivered.”
Chief Executive
Highlights
Focus on best assets in winning sectors drives rents, earnings and eleventh year of dividend progression
- Net rental income increased 16.6% to £455.3m, 9 months contribution from Urban Logistics REIT (‘ULR’) takeover
- Sector leading EPRA cost ratio down a further 10bps to 7.7%
- EPRA earnings up 13.9% to £305.3m, +2.4% on a per share basis to 13.5p (+24% over two years)
- Dividend up 3.8% to 12.45p, 108% covered by earnings and including Q4 dividend declared today of 3.3p.
Delivering reliable, repetitive and growing income
- Total property return of 7.1%, outperforming MSCI All Property UK Index by 170bps
- Like for like income growth2 of 4.2%, contributing to a valuation uplift of £68m
- Valuation yields unchanged and ERV growth was 3.3%, EPRA topped up NIY of 5.3% (equivalent yield of 6.4%)
- EPRA NTA per share up 0.7% to 200.6p
- IFRS reported profit of £295.7m
- Total accounting return of 6.9%
£7.6bn portfolio aligned to strongest thematics and mission critical assets
- Logistics weighting increased from 46% to 53%, urban logistics 38% of the portfolio (2025: 29%)
- £1,549m acquired in year (80% logistics) primarily through the takeover of ULR
- £318m disposed in year (54% former M&A assets) through 57 disposals
- Post year end: Acquired four convenience food pre-let developments anchored by M&S for £40m and sold £49m of further assets
Activity enhancing portfolio quality and strength of income, capturing reversion
- Rent reviews in year +19% on five yearly equivalent basis, with urban logistics market reviews +38%
- Asset management added £17m pa of net contracted rent
- Contractual uplifts on 69% of rental income (2025: 77%), expect £38m of rent uplift over next two years
- WAULT of 17 years, gross to net income ratio of 99% and occupancy at 98%
- Top three occupiers represent 22% of rent, down from 27%
- 92% of portfolio EPC A-C rated (A-B: 60%) with 4MWp of solar PV added
Scale is allowing us to benefit from greater debt optionality and has enhanced our debt structure
- £2.7bn of new/ refinanced debt in year with £1.1bn repaid, diversifying our lending pool and reducing finance costs
- Debt maturity of 4.4 years (5.2 years including extension options) with no material refinancing until FY30
- Low cost of debt maintained at 4.0%, 99.8% hedged and LTV at 36.7%