20th Oct 2021 09:38
Alliance News) - Segro PLC said Wednesday it has had a "successful" third quarter, making "significant progress" on its profit development.
In the third quarter, Segro signed GBP26 million of new headline rent, up from GBP16 million a year before, taking the total to GBP64 million for the nine months to September 30, increased from GBP50 million last year.
The quarterly vacancy rate reduced to 3.2% from 4.3%, with Segro attributing this to demand for speculatively developed space.
Chief Executive David Sleath said: "Segro has had an active and successful third quarter as we continue to capitalise on strong occupier and investment market conditions, with high leasing volumes across the business."
"We have made significant progress with our profitable development programme and have completed projects equivalent to GBP25 million of potential rent, of which over 90% is already let. We currently have 1 million square meters of space under construction, and during the period have added to the active pipeline and secured further land to extend our bank of future development opportunities," he added.
Segro said its development programme has set up the company to increase annualised rent roll by 20%, or GBP92 million, from its pipeline of assets under construction.
So far in 2021, it has completed 450,000 square metres of new developments, down from 695,800 the year before, which Segro said will generate GBP25 million of headline rent with 93% already let.
At the end of September, over 998,000 square metres of space was under construction, with Segro noting this could turn into GBP68 million of future headline rent.
"We head into the final months of 2021 with confidence in our ability to drive further sustainable growth in rental income, earnings and dividends," Sleath added.
In 2021 so far, Segro has acquired over GBP260 million of land to top up its land bank, with GBP66 million added in the third quarter.
The firm said it remains on course to invest GBP750 million on its development pipeline in 2021.
Shares in Segro were 0.5% lower in London on Wednesday morning at 1,282.00 pence each.
By Paul McGowan; [email protected]
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