SEGRO plc, a prominent player in the industrial property sector, has released its trading update for the period spanning from 1 January 2023 to 17 October 2023. The update paints a picture of a company on an upward trajectory, with significant rent roll growth and strategic disposals.

Key Highlights:

– SEGRO is poised for a robust year in rent roll growth, attributed to proactive asset management and the demand for its premium products.

– The company has made notable progress in disposals, completing or exchanging over £250 million year-to-date, surpassing book value.

– SEGRO is strategically focusing on profitable development opportunities, with projects currently underway or set to commence soon, promising a potential rent of £77 million at an anticipated yield on cost of 7.3%.

David Sleath, Chief Executive of SEGRO, commented on the company’s performance, stating, “SEGRO’s prime portfolio and market-leading operating platform have generated £58 million of new contracted rent in 2023, positioning us for a strong year in rent roll growth.” Sleath also highlighted the supportive occupier market conditions and the continued rental growth, which is increasing the reversionary potential in their existing portfolio.

Despite the subdued overall volume of investment market transactions due to the evolving macro-economic environment, SEGRO has made commendable progress in disposals. Sleath emphasized the importance of disciplined capital use in the current environment, prioritizing development opportunities on owned land and funding these investments from selective disposals.

The company’s financial calendar indicates that the full-year results for 2023 will be released on 16 February 2024.

SEGRO’s operating summary for the first nine months of 2023 showcases a standing portfolio contributing significantly to rent roll growth, with a customer retention rate of 81% and an occupancy rate of 95.3%. The company’s investment activity remains disciplined, with a development capex of £381 million for 2023 and disposals amounting to £251 million.

The balance sheet as of 30 September 2023 reveals a long-term, diversified debt profile, providing the company with both certainty and flexibility. SEGRO retains substantial liquidity, with 89% of its debt being fixed or capped.

For further details or inquiries, interested parties can reach out to the contact details provided for SEGRO and FTI Consulting.