REG - SEGRO PLC - Trading Update

SEGROAnnouncement

Tue 07:00

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RNS Number : 1083E  SEGRO PLC  21 October 2025

 

 

 

21 October 2025

 

SEGRO plc

Trading Update

 

SEGRO plc ("SEGRO" or the "Group") today publishes a trading update for the
period from 1 January 2025 to 30 September 2025(1).

 

 

KEY MESSAGES

 

 ·         Improving occupier sentiment has driven a strong quarter of letting activity
           with £22 million of new rent signed.
 ·         Momentum building in development programme with the most productive quarter of
           pre-lettings since Q1 2024.
 ·         Significant value creation opportunity from growing data centre pipeline.

 

David Sleath, Chief Executive, said:

"SEGRO has had a strong third quarter, with improving occupier sentiment
reflected in £22 million of new headline rent signed during the period,
bringing the total signed year-to-date to £53 million. We have made good
progress in capturing the significant mark-to-market rent potential in our
existing portfolio, whilst maintaining occupancy levels and retaining
customers.

"Momentum continues to build in our profitable development programme. We had
our strongest quarter of pre-letting activity since Q1 2024, signing £7
million of deals versus £3 million in H1 2025, and have a healthy pipeline of
further projects under discussion with enquiry levels increasing post the
summer. Our fully fitted data centre joint venture is on track to submit a
planning application in the coming weeks, and we are progressing multiple
negotiations on both powered shells and new fully fitted opportunities in the
UK and Continental Europe.

"These factors give us confidence in our ability to capture the embedded
growth potential in our existing portfolio and build out our exceptional
landbank, which provide the opportunity to double our rent roll. This will
support the delivery of further compound growth in earnings and dividends,
with significant further value creation upside from our growing data centre
pipeline."

KEY HIGHLIGHTS(1,2):

 ·         £53 million of new headline rent signed so far in 2025 (30 September 2024:
           £64 million) of which £22 million was added in the third quarter (Q3 2024:
           £15 million).
 ·         Our prime, modern portfolio continues to perform well as we capture reversion,
           reflected in a year-to-date uplift of 37 per cent across 170 rent reviews,
           renewals and regears (UK: 49 per cent, Continental Europe: 8 per cent), which
           supports continuing strong like-for-like net rental income growth.
 ·         Occupancy and customer retention high at 94.3 per cent and 86 per cent
           respectively.
 ·         Development completions during the period totalled 34,800 sq m of new space
           and added £8 million of headline rent, including the completion of our latest
           powered shell data centre on the Slough Trading Estate. This takes completions
           so far in 2025 to 231,600 sq m, equating to £27 million of expected rent, 89
           per cent of which has been secured.
 ·         Disciplined approach to capital allocation continues to prioritise accretive
           development-led growth, with £286 million invested into our development
           pipeline so far in 2025 (including £25 million of land purchases), £228
           million of asset acquisitions, partly offset by £39 million of disposals. We
           continue to expect development capex in 2025 to be c.£400 million.
 ·         Active and profitable development pipeline includes £45 million of future
           rent through projects currently onsite and in advanced negotiations, 47 per
           cent of this is secured or associated with pre-lets and the average
           development yield is 7.1 per cent. This pipeline includes:
           o  £7 million of new pre-lets signed during the quarter (£6 million of
           which was successfully converted from our half year near-term pipeline),
           including big box warehouses to be developed for third-party logistics
           operators in France and Italy.
           o  £10 million of near-term projects, which we would hope to sign in the
           coming weeks and months.
 ·         In addition, we have a healthy pipeline of further opportunities under
           negotiation, including powered shell and fully fitted data centres across the
           UK and Continental Europe.
 ·         Extra capacity added to our land-enabled power bank, including 190MVA of
           additional power reserved in a key London Availability Zone. Our flexibility
           to offer both powered shell and fully fitted data centres in Europe's prime
           data centre markets means that this power bank offers significant value
           creation opportunity.
 ·         Proactive balance sheet management to maintain flexibility and extend debt
           maturities: SEGRO secured a new €360 million five-year term loan facility to
           partly refinance the upcoming maturity in 2026 of its €650 million bond and
           SELP signed a new €600 million Revolving Credit Facility, replacing previous
           facilities and extending the maturity for up to five years.
 ·         Balance sheet therefore remains in a strong position to allow SEGRO to pursue
           further growth opportunities with a LTV of 32 per cent(3) and £1.7 billion of
           cash and undrawn committed facilities.

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 2025
unless otherwise indicated and the exchange rate applied is €1.15:£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 2025, adjusted for acquisitions, disposals and
other capital expenditure during the first quarter.

Financial calendar

Full Year 2025 results will be published on Friday 20 February 2026
(provisional date).

 

 

 

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. The company owns, manages and develops modern
warehousing, industrial property and data centres across the UK and seven
other European countries, with a portfolio of 10.8 million square metres of
space (116 million square feet) valued at £21.4 billion at 30 June 2025.

Founded in 1920, SEGRO's active approach to asset management and disciplined
approach to capital allocation has created a portfolio of high-quality,
sustainable buildings in some of Europe's largest cities and at key transport
and digital infrastructure hubs.

From big-box logistics to urban warehousing and data centres, SEGRO creates
the space that enables extraordinary things to happen. It provides the
infrastructure of modern economies and everyday life, enabling efficient,
low-carbon supply chains and digital connectivity across Europe, helping drive
growth and job creation. This space supports a diverse customer base including
retailers, manufacturers, logistics providers and technology companies.

SEGRO is committed to being a force for societal and environmental good,
prioritising Championing low-carbon growth
(https://www.segro.com/responsible-segro/carbon) , Investing in local
communities and environments
(https://www.segro.com/responsible-segro/community-investment-plans) , and
Nurturing talent (https://www.segro.com/responsible-segro/nurturing-talent) .

For more information, visit www.SEGRO.com (https://www.segro.com) .

 

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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