Segro (LSE:SGRO), the warehouse and data-centre landlord, reported on Wednesday that it contracted £70m of new headline rent in the nine months to 30 September, up 32% on the same period last year. Of that total, £42m came from the existing portfolio and £28m from development lettings, the company said in a trading update covering 1 January to 30 September.
Occupancy rose 20 basis points to 94.7% since the half-year, with customer retention at 80%, while UK rent reviews, renewals and regears achieved an average 43% uplift (34% across the group, 5% in Continental Europe).
Chief executive David Sleath said demand-supply dynamics for modern, well-located industrial, logistics and data-centre space "remain supportive, enabling good progress with our letting of existing space, reversion capture and development signings."
Development completions so far this year totalled 152,500 square metres of new space, equivalent to £13m of potential headline rent, with 59% already secured through pre-lets or leasing of speculative space ahead of completion.
The forward development pipeline, under construction or in advanced negotiations, has grown to £103m of potential rent, two-thirds tied to pre-lets; Segro also said it expects to sign a pre-let with a major hyperscaler in the coming months for its first fully fitted data centre in west London, developed through its joint venture with Pure DC.
The company completed £223m of disposals above book value during the period, with a further £57m exchanged and due to complete by year-end, and said discussions are progressing on a new UK "big box" joint venture expected to generate approximately £500m of net proceeds from seeding built assets and land.
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Segro reported a loan-to-value ratio of 33% and £1.2bn of available liquidity at period end.
Shareholders approved the scheme of arrangement underpinning Prologis's recommended takeover of Segro at a court meeting and general meeting on 28 September, a deal valuing the company at approximately £14bn; the combination remains subject to regulatory approvals and is expected to complete in the first half of 2027.