SEGRO (LON: SGRO) has contracted £70m of new headline rent so far this year, 32% more than the same period in 2025. The property group, which owns industrial, logistics and data centre space, gave the figure in a trading update today covering the nine months to the 30th of September.
Headline rent is annualised gross passing rent receivable once incentives such as rent-free periods have expired. Of the total, £42m came from the existing portfolio and £28m from development lettings.
Existing space is being re-let at higher rents. UK rent reviews, renewals and regears, where lease terms are renegotiated, achieved an average uplift of 43%, against 34% across the group and 5% in Continental Europe.
Occupancy rose 20 basis points since the half-year to 94.7%, and customer retention stood at 80%. Chief Executive David Sleath summed up the quarter:
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.
David Sleath, Chief Executive, SEGRO
Development completions so far in 2026 total 152,500 sq m, worth £13m of potential headline rent, of which 59% was secured by pre-let or by leasing speculatively built space before completion. Projects under construction or in advanced negotiation have grown to £103m of potential rent, two-thirds linked to pre-lets.
In West London, SEGRO is negotiating its first fully fitted data centre through a joint venture with Pure DC. It expects to sign a pre-let with a major hyperscaler, a very large cloud operator, in the coming months, in line with earlier expectations.
Disposals completed above book value total £223m this year, carrying £11m of rental income, with a further £57m exchanged and due to complete by year end. Talks on a new UK big box (large warehouse) joint venture are progressing well and are expected to generate about £500m of net proceeds.
Loan-to-value stands at 33%, with £1.2bn of available liquidity.
Shareholders approved the Scheme of Arrangement for the Prologis recommended best and final share offer at the court meeting and general meeting on the 28th of September. The combination remains subject to certain conditions, and Prologis, assisted by SEGRO, is progressing the regulatory processes, with completion expected in the first half of 2027.
SEGRO’s full-year 2026 results are due on Wednesday the 10th of February 2027.