REG - SEGRO PLC - Trading Update

SEGROAnnouncement

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RNS Number : 7088G  SEGRO PLC  30 April 2025

 

 

 

30 April 2025

 

SEGRO plc

 

Trading Update

 

SEGRO plc ("SEGRO" or the "Group") today publishes a trading update for the
period from 1 January 2025 to 31 March 2025(1).

Summary

 ·         Strong performance from the existing portfolio and growth in our active
           development pipeline,  with ongoing pre-let negotiations across our key
           markets.
 ·         Creation of a £1 billion joint venture to develop our first fully fitted data
           centre in West London, marking a major milestone in our strategy in this
           fast-growing sector.
 ·         SEGRO remains well-placed to deliver growth, both from the existing portfolio
           and an exceptional development land bank and retains significant firepower to
           fund further attractive growth opportunities.

 

David Sleath, Chief Executive, said:

"SEGRO has had a good start to the year, growing our rent roll through asset
management to capture reversion and drive rents, expanding our active
development pipeline and progressing our data centre strategy. Long-term
structural trends continue to support demand for modern, well-located
warehouses and data centres, meanwhile the supply of new space in our chosen
sub-markets remains constrained due to lack of available land, power and
restrictive planning policies.

"Our portfolio is heavily weighted to supporting domestic consumption,
particularly the two-thirds located in Europe's largest cities, and we
therefore believe the direct impact of tariff policies on our portfolio will
be limited. While it is too early to assess the effect they may have on
broader economic activity, we remain on track for another year of strong
growth in contracted rents and are confident in SEGRO's ability to deliver
attractive compound earnings and dividend growth, with significant additional
value creation upside from our data centre pipeline."

KEY HIGHLIGHTS(1,2):

 ·         £13 million of new headline rent signed, the majority of which came from the
           existing portfolio, with a 37 per cent uplift from UK rent reviews and
           renewals (Group: 25 per cent, Continental Europe: 9 per cent).
 ·         Customer retention was very high at 92 per cent and occupancy stable at 94.0
           per cent.
 ·         Development completions during the period totalled 50,000 sq m of new space
           with £2 million of headline rent, all of which has now been leased.
 ·         £58 million of potential headline rent from development projects under
           construction or in advanced negotiation, with an anticipated yield on cost of
           7.7 per cent. This reflects a £7 million increase from year end, of which
           £1 million are pre-lets signed during the quarter. 56 per cent of this
           pipeline has been secured reflecting a lower level of pre-lets in the pipeline
           than recent years due to slower customer decision making. We continue to have
           active pre-let negotiations across all of our markets and are seeing strong
           interest in our speculative, mostly urban, schemes (particularly in Germany
           and Slough).
 ·         Announced the creation of a £1 billion joint venture with Pure DC Group in
           March, to develop our first, fully fitted data centre project. We continue to
           advance plans for our 2.3GW European land-enabled power bank located in key
           Availability Zones, including in Slough where we have created the largest hub
           of data centres in Europe.
 ·         Disciplined capital allocation to drive portfolio performance: £208 million
           of acquisitions, including SELP's completion on a portfolio of Continental
           European big box assets (formerly owned by Tritax EuroBox) and a further £69
           million invested into development capex. Disposals totalled £11 million and
           all were priced above December 2024 book values.
 ·         Balance sheet remains strong with a LTV of 29 per cent(3) and £2.2 billion of
           cash and undrawn committed facilities, positioning the Group well to pursue
           further growth opportunities. This includes a new Revolving Credit Facility
           signed since the quarter end with our existing lending banks at improved
           terms, extending the maturity of €1.6 billion of existing facilities to a
           new 5-year term.

 

 

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, 31 March 2025 unless
otherwise indicated and the exchange rate applied is €1.20:£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 31 December 2024, adjusted for the equity placing,
acquisitions, disposals and other capital expenditure during the first
quarter.

 

Financial calendar

Half Year 2025 results will be published on Thursday 31 July 2025.

 
CONTACT DETAILS FOR INVESTOR / ANALYST AND MEDIA ENQUIRIES:
 SEGRO           Soumen Das (Chief Financial Officer)             Tel: +44 (0) 20 7451 9110
                 Claire Mogford (Head of Investor Relations)      Tel: +44 (0) 20 7451 9048
                 Gary Gaskarth (External Communications Manager)  Tel: +44 (0) 20 7451 9069
 FTI Consulting  Richard Sunderland / Eve Kirmatzis               Tel: +44 (0) 20 3727 1000

This Trading Update, the most recent Annual Report and other information are
available on the SEGRO website at www.segro.com/investors
(http://www.segro.com/investors) .

 

 

About SEGRO

 

SEGRO is a UK Real Estate Investment Trust (REIT), listed on the London Stock
Exchange and Euronext Paris, and is a leading owner, manager and developer of
modern warehouses and industrial property. It owns or manages 10.3 million
square metres of space (111 million square feet) valued at £20.3 billion
serving customers from a wide range of industry sectors. Its properties are
located in and around major cities and at key transportation hubs in the UK
and in seven other European countries.

For over 100 years SEGRO has been creating the space that enables
extraordinary things to happen. From modern big box warehouses, used primarily
for regional, national and international distribution hubs, to urban
warehousing located close to major population centres and business districts,
it provides high-quality assets that allow its customers to thrive.

A commitment to be a force for societal and environmental good is integral to
SEGRO's purpose and strategy. Its Responsible SEGRO framework focuses on three
long-term priorities where the company believes it can make the greatest
impact: Championing low-carbon growth, Investing in local communities and
environments and Nurturing talent.

See www.SEGRO.com for further information.

 

Forward-Looking Statements: This announcement contains certain forward-looking
statements with respect to SEGRO's expectations and plans, strategy,
management objectives, future developments and performance, costs, revenues
and other trend information. All statements other than historical fact are, or
may be deemed to be, forward-looking statements. Forward-looking statements
are statements of future expectations and all forward-looking statements are
subject to assumptions, risk and uncertainty. Many of these assumptions, risks
and uncertainties relate to factors that are beyond SEGRO's ability to control
or estimate precisely and which could cause actual results or developments to
differ materially from those expressed or implied by these forward-looking
statements. Certain statements have been made with reference to forecast
process changes, economic conditions and the current regulatory environment.
Any forward-looking statements made by or on behalf of SEGRO are based upon
the knowledge and information available to Directors on the date of this
announcement. Accordingly, no assurance can be given that any particular
expectation will be met and you are cautioned not to place undue reliance on
the forward-looking statements. Additionally, forward-looking statements
regarding past trends or activities should not be taken as a representation
that such trends or activities will continue in the future. The information
contained in this announcement is provided as at the date of this announcement
and is subject to change without notice. Other than in accordance with its
legal or regulatory obligations (including under the UK Listing Rules and the
Disclosure Guidance and Transparency Rules of the Financial Conduct
Authority), SEGRO does not undertake to update forward-looking statements,
including to reflect any new information or changes in events, conditions or
circumstances on which any such statement is based. Past share performance
cannot be relied on as a guide to future performance. Nothing in this
announcement should be construed as a profit estimate or profit forecast. The
information in this announcement does not constitute an offer to sell or an
invitation to buy securities in SEGRO plc or an invitation or inducement to
engage in or enter into any contract or commitment or other investment
activities. Neither the content of SEGRO's website nor any other website
accessible by hyperlinks from SEGRO's website are incorporated in, or form
part of, this announcement.

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