REG - SEGRO PLC - Trading Update

SEGROAnnouncement

23/04/2026 07:00

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RNS Number : 5630B  SEGRO PLC  23 April 2026

 

 

 

23 April 2026

 

SEGRO plc

 

Trading Update

 

SEGRO plc ("SEGRO" or the "Group") today publishes a trading update for the
period from 1 January 2026 to 31 March 2026(1).

Summary

 * Strong operational performance during the first quarter with £23 million of
new headline rent contracted, including £12 million of development lettings.

 * Momentum continues across our business, despite the uncertain geopolitical
environment, as we sign new leases, progress pre-let negotiations and conclude
disposals above book value.

 * Advancing our data centre strategy with the signing of a powered shell
pre-let, securing planning for our first fully fitted data centre and
progressing power upgrades.

 

David Sleath, Chief Executive, said:

"SEGRO has had a strong start to 2026, building on the momentum seen in the
second half of last year. The Middle East conflict has, so far, had no
discernible effect on our leasing momentum and the health of our diverse
customer base remains strong, but we remain watchful of the situation and its
potential impact on real estate markets.

"Structural trends continue to drive occupier demand for modern and
well-located, industrial, logistics and data centre space, at a time when
speculative space under construction across our markets remains low.

"We expect these favourable supply-demand dynamics to support further market
rental growth and create new development opportunities on SEGRO's exceptional
land bank. Through disciplined capital allocation, active asset management and
development execution, SEGRO is well-placed to deliver further compound growth
in earnings and dividends."

KEY HIGHLIGHTS(1,2):

 * £23 million of new headline rent contracted during the first quarter,
including £11 million from the existing portfolio as we lease vacant space
and capture reversion and £12 million of development lettings.

 * 38 per cent uplift on rent reviews, renewals and regears in the UK (Group: 19
per cent, Continental Europe: 4 per cent) as we continue to capture embedded
mark-to-market rent potential in the portfolio.

 * Customer retention remains strong at 83 per cent and occupancy stable at 94.8
per cent, as we reduced vacancy in our London portfolio and completed
speculatively developed urban space in Germany, for which we have multiple
lease negotiations ongoing.

 * Development completions during the period totalled 40,000 sq m of new space
with £4 million of headline rent, 37 per cent of which has been leased, a
lower level than usual due to the mix of projects (mostly urban speculative
schemes) that completed during the first quarter.

 * Development projects under construction or in advanced negotiations equate to
£73 million of potential rent, 67 per cent of which is associated with
pre-lets, and offers an attractive 7.6 per cent development yield. We
reiterate our £450-550 million development capex guidance for 2026.

 * Delivering on our data centre pipeline with the signing of a 30,000 sq m
powered shell data centre pre-let on the Slough Trading Estate, ongoing
infrastructure works ahead of a major power upgrade in Slough and planning
approval for our first 56MW fully fitted data centre in West London.

 * Active capital recycling to drive portfolio performance and fund future
growth: £106 million of disposals completed above book value (with £5
million of associated rental income) and a further £138 million exchanged and
due to complete later in 2026. Three-quarters of these transactions have
completed or exchanged since the start of March.

 * Balance sheet remains strong with a LTV of 31 per cent(3) and £1.5 billion of
cash and undrawn committed facilities. Repaid our March 2026 SEGRO bond
maturity using existing committed facilities. SELP joint venture issued €500
million senior unsecured notes to refinance existing indebtedness as well as
funds for general corporate purposes at an annual coupon of 3.875 per cent.

 

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 2026 unless
otherwise indicated and the exchange rate applied is €1.14:£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 2025, adjusted for acquisitions, disposals
and other capital expenditure during the first quarter.

 

Financial calendar

Half Year 2026 results will be published on Thursday 30 July 2026.

 
CONTACT DETAILS FOR INVESTOR / ANALYST AND MEDIA ENQUIRIES:
 SEGRO           Susanne Schroeter (Chief Financial Officer)        Tel: + 44 (0) 20 3887 4300
                 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 / Ellie Sweeney/ 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 10.9 million square metres of
space (117 million square feet) valued at £22.0 billion.

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's 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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