23rd Apr 2026 08:55
(Alliance News) - Segro PLC on Thursday noted favourable supply-demand dynamics, as it reported an uplift in rent reviews in the first quarter of 2026.
The London-based property developer said GBP23 million of new headline rent was contracted in the first quarter, up 43% from GBP13 million a year prior. Within this, it reported GBP11 million from the existing portfolio and GBP12 million from development lettings.
Segro also noted a 38% uplift in rent reviews, renewals and regears in the UK, up 19% at the group level and up 4% in Europe. Segro said it continues to "capture embedded mark-to-market rent potential in the portfolio".
The company reported customer retention at 83%, down from 92% a year prior. Its occupancy rate was 94.0%, down slightly from 94.8%.
Segro stated that the ongoing conflict in the Middle East has had "no discernible impact" on its leasing momentum, adding that the health of its customer base "remains strong". However, the company said it remains watchful of the situation and its possible impact on the real estate markets.
Segro shares were up 0.3% at 715.60 pence on Thursday morning in London.
Chief Executive David Sleath commented: "Segro has had a strong start to 2026, building on the momentum seen in the second half of last year... 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."
By Christopher Ward, Alliance News reporter
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