Segro goes cap in hand to investors for funds to pursue opportunities

The property investor and developer also updated markets on recent trading, saying that new lettings and pre-let development agreements were tracking ahead of where expectations were at before the Covid-19 pandemic.

It also reiterated its target for a dividend payout ratio of 85-95.0% of adjusted profits before tax.

Management said the new equity would allow Segro to take advantage of opportunities across the UK and the Continent "through further, mostly pre-let, development projects together with acquisitions of land and investment assets."

To back up their case, they pointed to the acceleration in trends for the adoption of new technology and e-commerce, with their knock-on effect for demand of ots big box and urban warehouse portfolio.

They also referenced data from the Office for National Statistics, according to which e-commerce volumes in the UK had jumped by 16% month-on-month in April, while grocery sales had nearly double and with similar trends in place across the Channel.

Fresh equity would also Segro to continue investing while keeping its so-called leverage at or around current levels, the company said.