SEGRO has published a trading update for the period from 1 January 2025 to 31 March 2025, with the company reporting strong performance from its existing portfolio and growth in its active development pipeline.
Development completions during the period totalled 50,000m² (c. 538,oooft²) of new space with £2 million
of headline rent, all of which has now been leased.
Additional highlights included:
- £58 million of potential headline rent from development projects under construction or in advanced negotiation, with an anticipated yield on cost of 7.7%
- A £7m increase from year end, of which £1m are pre-lets signed during the quarter
- Continued active 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)
- The creation of a £1 billion joint venture with Pure DC Group in March, to develop first, fully fitted data centre project
- Advanced plans for 2.3GW European land-enabled power bank located in key Availability Zone
- Disciplined capital allocation to drive portfolio performance: £208m of acquisitions, including SELP’s completion on a portfolio of Continental European big box assets (formerly owned by Tritax EuroBox) and a further £69m invested into development capex
- Disposals totalled £11m and all were priced above December 2024 book values
Additionally, SEGRO reported that it had a LTV of 29% and £2.2bn of cash and undrawn committed facilities.
This includes a new Revolving Credit Facility signed since the quarter end, extending the maturity of €1.6bn (c.£1.36bn) of existing facilities to a new five-year term.
SEGRO chief executive David Sleath 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.
“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.”
