SEGRO (LSE:SGRO) reiterated its 2026 development capex guidance of £450-550 million after a strong first quarter that saw £23 million of new headline rent contracted for the period 1 January to 31 March.
SEGRO, the London-listed owner-developer of industrial, logistics and data centre space in Europe, said leasing momentum continued despite geopolitical uncertainty and expects supply-demand dynamics to support further market rental growth and create new development opportunities.
The £23 million comprised £11 million from the standing portfolio and £12 million from development lettings, with customer retention at 83% and occupancy at 94.8%.
Rent reviews, renewals and regears delivered a 38% uplift in the UK (Group: 19%; Continental Europe: 4%).
Development completions added 40,000 sq m and £4 million of headline rent (37% leased), while projects under construction or in advanced negotiations represent £73 million of potential rent, 67% of which is pre-let, at a 7.6% development yield.
On data centres SEGRO signed a 30,000 sq m powered-shell pre-let in Slough, secured planning for a 56MW fully fitted data centre in West London and is progressing power upgrades ahead of a major Slough upgrade.
The group completed £106 million of disposals above book value (with £5 million of associated rental income), has a further £138 million exchanged to complete later in 2026, and said three-quarters of these transactions completed or exchanged since March.
SEGRO said its balance sheet remained strong with a 31% loan-to-value and £1.5 billion of cash and undrawn committed facilities, it repaid its March 2026 bond from existing facilities and SELP issued €500 million of senior notes at a 3.875% coupon.
Half Year 2026 results are scheduled for publication on 30 July.
