Amazon, Tesco, Argos and other online retailers could be hit by a decline in warehouse space, LSH says
Tritax Big Box purchased one of Amazon UK's largest distribution centres in a £42.9m deal on 10 August Reuters

Real estate investment company Tritax Big Box has reported a strong jump in profits in the first six months of 2016, helped by solid demand in the e-commerce sector.

Operating profits were up 62% year-on-year to £25.7m ($33.4m) in the January to June period.

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The firm's chairman Richard Jewson said he expected market conditions to remain favourable despite the backdrop of uncertainty created by the Brexit vote.

"UK retail continues to evolve, with e-commerce growth leading the way," he said in a statement.

"Many of our properties have an e-retail focus and/or automation, aiding home deliveries or store replenishment.

"These facilities are delivering economies of scale benefits and cost savings crucial to competitiveness and efficiency in a market where the consumer has become ever more demanding."

The earnings report comes a day after Tritax announced the acquisition of Amazon's 550,000 sq ft distribution warehouse in Peterborough in a £42.9m deal.

The firm had 28 assets on its portfolio at the end of June, independently valued at £1.53bn.