Segro signs £20m in new headline rent during Q3

Real estate investment trust Segro said on Thursday that it had "performed well" throughout the third quarter, delivering "excellent operational results" with momentum continuing into the final quarter.

Segro stated that continued "strong occupier demand" had supported its ability to let new space and grow rents in its standing portfolio, with total new headline rent signed during the period at £20.0m, down from £26.0m a year earlier, bringing total year-to-date rent roll growth to £76.0m.

Occupancy rates remained broadly flat at 96.7%, while customer retention was unchanged at 76%.

The FTSE 100-listed firm added that new pre-lets signed since the halfway point f the year had helped to expand its development pipeline, with 1.3m square metres of space, equivalent to £118.0m of new rent, under construction or in advanced discussions.

Chief executive David Sleath said: "Over the past decade, the successful execution of our strategy has created an irreplaceable portfolio of modern, sustainable assets focused on markets with the tightest supply-demand dynamics, underpinning significant reversionary potential and future rental growth."

Sleath also noted that increases in interest rates and a "volatile macroeconomic environment" had reduced volumes in investment markets, causing asset prices to soften in the third quarter.

"However, we remain focused on the fundamentals of our business – owning, managing, and developing the highest-quality buildings whilst maintaining low leverage and a strong balance sheet, thereby supporting the delivery of attractive growth in earnings and dividends for our shareholders," he said.

As of 0810 BST, Segro shares were down 1.48% at 704.80p.

Reporting by Iain Gilbert at Sharecast.com