Segro secures £70m of new rent, boosts occupancy

21st Oct 2026 08:59

(Sharecast News) - Real estate investment trust Segro said on Wednesday that trading remained strong through the first nine months of the year, with rent growth, high occupancy and progress across its development pipeline all supporting earnings.

Segro has contracted £70m of new headline rent year‑to‑date, up 32% on the prior period, driven by £42m from its existing portfolio and £28m from development lettings. UK rent reviews, renewals and regears delivered an average 43% uplift, helping Segro continue to capture embedded mark‑to‑market potential. Occupancy edged up to 94.7%, with customer retention at 80%.

Development activity remained a key driver, with 152,500 square metres of completions so far in 2026, representing £13m of potential rent, nearly 60% of which has already been pre‑let or leased ahead of completion. Projects under construction or in advanced negotiation now represent £103m of potential rent, two‑thirds tied to pre‑lets.

Segro completed £223m of disposals above book value, with a further £57m exchanged, and said discussions on a new UK big‑box joint venture were advancing, expected to generate around £500m of net proceeds. Segro added that its balance sheet remained robust, with a 33% loan-to-value ratio and £1.2bn of liquidity.

The FTSE 100-listed firm added that negotiations were progressing on its first fully fitted West London data centre through its Pure DC joint venture, with a pre‑let to a major hyperscaler expected in the coming months.

Chief executive David Sleath said: "Segro has continued to perform well during the third quarter. Demand-supply dynamics for modern and well-located industrial, logistics and data centre space remain supportive, enabling good progress with our letting of existing space, reversion capture and development signings."

As of 0855 BST, Segro shares were up 0.95% at 910p.

Reporting by Iain Gilbert at Sharecast.com

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