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AI’s turning warehouses and data centres into some of the most interesting passive income plays on the London market.
For investors targeting dividends, real estate investment trusts (REITs) offer a simple appeal: they collect rent and pass a large share of that cash out to shareholders.
In the UK, two names stand out for anyone linking AI demand to income: Tritax Big Box REIT (LSE:BBOX) and SEGRO (LSE:SGRO).
The key question is which one looks better for income today, not just in theory?
Latest results and income profile
Both companies have just reported stronger rental growth, and both are leaning into data centre-linked opportunities.
Tritax said its half-year 2026 net rental income rose 16.2% to £173.3m, while adjusted earnings per share (EPS) rose 7% to 4.41p. It also lifted its interim dividend 4.4% to 4p and ended the period with net tangible assets (NTA) per share of 185.88p and loan-to-value (LTV) of 32.9%.
SEGRO’s half-year 2026 results were also solid. Like-for-like net rental income rose 5.3%, adjusted EPS 6.6% to 19.3p, and the interim dividend was boosted 4.5% to 10.14p. Its EPRA (European Real Estate Association) NTA per share fell 2.5% to 902p and loan-to-value (LTV) stayed at 31%.
| Metric | Tritax Big Box | SEGRO |
|---|---|---|
| Net rental income | £173.3m | up 5.3% |
| Adjusted EPS | 4.41p | 19.3p |
| Interim dividend | 4p | 10.14p |
| EPRA NTA per share | 185.88p | 902p |
| LTV | 32.90% | 31% |
Which income looks better?
The income angle’s clear. Tritax’s dividend yield has held around 5.3% for recent months, while SEGRO’s has hovered around 3.3%. That means Tritax currently offers the bigger cash payout, but SEGRO has the larger, more diversified platform and a stronger track record of compounding.
For a pure passive income play, Tritax is the higher-yielding stock. It has also said it is lifting ambitions for adjusted EPS growth to 65% by 2030/31, helped by a data centre pipeline with secured power of 507MW. That suggests the income story may not be standing still.
SEGRO’s management has pointed to a wider European pipeline, including 3GVA of power bank and a £50p EPS target by 2030, but the current yield’s lower.
Risks to watch
Tritax is more exposed to UK logistics sentiment and execution risk around its expanding data centre pipeline. SEGRO has broader geographic diversification, but it still faces valuation pressure from interest rates and slower leasing if occupier demand weakens
Both face the usual risk that property yields move against shareholders.
The wider UK property market is also sensitive to borrowing costs, planning delays and economic growth, so a good income yield does not remove macro risk.
My verdict
For investors targeting the highest immediate income, Tritax Big Box is clearly the more attractive option to consider right now. But if you’re looking for a steadier long-term compounder with a stronger balance sheet and broader asset base, SEGRO deserves a closer look.
In short, Tritax offers the better income value today, but SEGRO may prove the more durable AI-linked property story over time.
But while AI might be the driving force behind much of the market’s movements these days, there’s one other UK income stock that could be even more appealing…
What income stock do we like better than Tritax Big Box REIT Plc right now?
One of our Share Advisor analysts has just released a brand new stock report that we think is a must-read for any investor looking to try and generate potential income.
And the best bit is that you can see if for yourself, right now, absolutely free of charge!
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Mark Hartley does not hold any positions in the companies mentioned.
