SEGRO plc (LON:SGRO) has published a trading update for the period from 1 January 2026 to 30 September 20261.
David Sleath, Chief Executive, 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.”
KEY HIGHLIGHTS1,2:
· £70 million of new headline rent contracted year to date, 32 per cent higher than the prior year equivalent, £42 million of which is attributed to the existing portfolio and £28 million from development lettings.
· Average 43 per cent uplift on UK rent reviews, renewals and regears (Group: 34 per cent, Continental Europe: 5 per cent) as we continue to capture embedded mark-to-market rent potential in the portfolio.
· Occupancy increased 20bps to 94.7 per cent since HY 2026 and customer retention remains high at 80 per cent.
· Development completions so far in 2026 totalled 152,500 sq m of new space. This equates to £13 million of potential headline rent, 59 per cent of which has been secured by a pre-let or the leasing of speculatively developed space prior to completion.
· Development projects under construction or in advanced negotiations have grown further to £103 million of potential rent, two-thirds of which is associated with pre-lets.
· Negotiations ongoing for first fully fitted data centre in West London through our JV with Pure DC. Expect to sign pre-let with a major hyperscaler in the coming months, in line with our previous expectations.
· £223 million of disposals completed above book value so far in 2026 (with £11 million of associated rental income) and a further £57 million exchanged and due to complete by the end of the year.
· Discussions are progressing well on a new UK big box joint venture, expected to generate c.£500 million of net proceeds from seeding built assets and land, while deepening our investment capacity.
· Balance sheet remains strong, with LTV of 33 per cent and £1.2 billion of available liquidity.
· Shareholders approved the Scheme of Arrangement for the Prologis Recommended Best and Final Share Offer at a Court Meeting and General Meeting on 28 September. The combination remains subject to certain conditions and Prologis, assisted by SEGRO, is progressing the relevant regulatory processes. The transaction is expected to conclude in H1 2027.
1 In this statement, space is stated at 100 per cent, whilst financial figures are stated reflecting SEGRO’s share of joint ventures. Operational and financial figures are stated for the period to, or at, 30 September 2026 unless otherwise indicated and the exchange rate applied is €1.17:£1.
2 Headline rent is annualised gross passing rent receivable once incentives such as rent-free periods have expired.
3 Based on values as at 30 June 2026, adjusted for acquisitions, disposals and other capital expenditure during the third quarter.
Financial calendar
Full Year 2026 results will be published on Wednesday 10 February 2027.
