Tritax Big Box REIT posts low quarterly take-up rate as sites were mostly

Tritax Big Box REIT () said take-up in the first quarter was lower than average because most sites were already occupied, with vacancy falling below 4%.

However, it expects take-up to increase again over the next month as there are a record 16mln square feet of logistics real estate space under offer in the market, nearly twice the level at the end of 2020.

READ: Demand for logistics space at record levels says Tritax Big Box

Investment demand remained at record levels, with volumes reaching £2bn, the highest first-quarter figure on record.

Recently completed transactions point to further downward pressure on prime yields, which remain at historic lows.

The FTSE 100 group added that demand for logistics space in the UK remains high following a record year of take-up in 2020.

It reckons it can increase rent further as 37% of the portfolio is due to a review across open market, fixed and inflation linked review types.

It has already carried out review for a third of these, adding £3mln to annual contracted rent.

As of Wednesday, 99.8% of full-year 2020 rents have been received with full collection expected by the summer.

Around 98% of first quarter 2021 and 95% of second quarter 2021 rents have been paid, with 99% expected to be received by the end of June for both periods.

“The market has strengthened in all respects and we expect the trifecta of development gains, rental growth and yield compression to continue in 2021,” analysts at Liberum noted.

Shares were flat at 189.7p on Wednesday at the opening bell.