Tritax Big Box Dividend Yield Hits 5.3% as SEGRO Plots a Longer EPS Runway

Tritax Big Box dividend yield is running at 5.3%, a clear margin above SEGRO’s 3.3%, yet the H1 2026 results season for both UK logistics REITs has complicated a simple yield comparison considerably. Both companies reported stronger rental growth, both are deepening data centre pipelines, and both are restructuring their balance sheets, each through different routes. The question for income investors is not just who pays more now, but whether the higher-yielding option can sustain that premium.

H1 2026 results: rental momentum and the data centre pivot

Tritax reported half-year net rental income up 16.2% to £173.3 million, driven in part by EPRA like-for-like rental growth of 5.1%, described by the company as more than double the prior period. Adjusted earnings per share rose 7% to 4.41p. The interim dividend was lifted 4.4% to 4p. Alongside those results, Tritax disclosed a proposed Equity Issue and upgraded its earnings ambition: Chairman Aubrey Adams stated, ‘The near doubling of our secured power to 507MW deepens our pipeline of data centre opportunities in a market that is starved of incremental supply. Combined with the proposed Equity Issue announced today, the enhanced data centre opportunity gives us the ambition to grow adjusted EPS by 65% by 2030/2031.’ That 65% target is itself an upgrade on the prior ambition of 50% growth by 2030, with the additional 235MW of secured power the catalyst for the revision.

The logistics rental reversion embedded in the existing Tritax portfolio adds further texture to the earnings outlook. At H1 2026, the company reported a 29% embedded rental reversion worth over £100 million, with more than 70% of that capturable within three years, according to GuruFocus via Yahoo Finance. Tritax also reported an EPRA cost ratio of 12.2%, which the company characterises as among the lowest in the European real estate sector, and an average cost of debt of 3.6%. Balance-sheet activity has been brisk: over £1 billion of disposals completed since January 2023, averaging above book values.

SEGRO’s half-year picture was solid if less dramatic in headline rental terms. Like-for-like net rental income rose 5.3%, adjusted EPS increased 6.6% to 19.3p, and the interim dividend was lifted 4.5% to 10.14p. Adjusted pre-tax profit at SEGRO increased 6.3% to £268 million. UK rent reviews and renewals achieved an average uplift of 44%, with occupancy held at 94.5%, within the company’s stated target range of 94 to 96%. EPRA NTA per share fell 2.5% to 902p; LTV was steady at 31%.

SEGRO’s data centre ambitions are proportionally larger in absolute power terms. The company’s power bank reached 3.0GVA of potential capacity across key European Availability Zones, with 0.5GVA added in the period. Of that, 1.4GVA is targeted to lease over seven years, carrying expected potential rent of £464 million. Progress during the period included a powered shell pre-let on the Slough Trading Estate, planning secured for its first fully fitted data centre lease at Park Royal in London, and the formation of a joint venture with Pure Data Centres Group to build a first fully fitted data centre on the Continent in Paris.

Comparing the Tritax Big Box dividend profile against SEGRO’s long-run EPS case

The yield gap is not subtle. According to the FT markets data page for BBOX, Tritax currently trades at a 16.68% discount to NAV, with an annual dividend of 8.17p and a yield of 5.31%. SEGRO’s yield, at 3.3%, reflects a larger and more geographically diversified platform rather than lower absolute income; SEGRO’s most recent full-year dividend was 21.4p paid on 8 May 2026. Its EPS progression target is c.50.0p by 2030, up from 36.6p in 2025.

SEGRO’s financial architecture is also evolving. The company announced a 50:50 joint venture with an unnamed major international capital partner, seeding it with a c.£1 billion portfolio of standing assets and land at December book valuations. Average cost of debt at SEGRO stood at 2.8% at 30 June 2026, compared with Tritax’s 3.6%, and net debt to EBITDA reduced to 8.3 times. ERV growth came in at 2.3% in the UK and 1.1% on the Continent.

For income investors weighing the two today, Tritax carries the higher yield and a deeper near-term rental reversion. The discount to NAV, at almost 17%, means the shares are not priced for optimism. SEGRO, by contrast, trades on a tighter multiple reflecting its continental diversification and lower debt cost, but offers a structurally lower current payout. Tritax’s prior EPS target was 50% growth by 2030, per an earlier half-year filing on Investegate; the upgrade to 65% by 2031 was accompanied by a fresh equity raise, which means dilution risk sits alongside the upgraded ambition.

The next test for the Tritax Big Box dividend is whether the data centre pipeline translates into earnings fast enough to sustain the current payout ratio through the equity raise. For SEGRO, the metric to watch is how quickly the 1.4GVA of targeted data centre leasing converts from pipeline to contracted rent.