21st Apr 2016 06:51
LONDON (Alliance News) - Industrial property investor SEGRO PLC on Thursday said it secured more new rent in the first quarter of 2016, compared to a year before, though its vacancy rate increased as short-term tenants left.
The FTSE 250-listed group said it contracted GBP8.6 million in new rent in the three months to the end of March, up from GBP6.0 million a year earlier. This included pre-lets secured doubling in the quarter, up to GBP3.6 million from GBP1.8 million.
SEGRO said its vacancy rate remains close to historical lows, but it increased to 5.1% at the end of March from 4.8% at the end of December. This was due to short-term space taken over the Christmas period expiring, along with lease expiries.
"2016 is progressing well and in line with our expectations. Occupier demand for good quality, modern warehouse space in key locations remains encouraging and we have had another strong quarter of signing up new rental commitments, showing a healthy improvement compared to the equivalent period last year driven by pre-let agreements and letting up space developed speculatively," said Chief Executive David Sleath.
"Whilst real estate investment volumes generally in the first half of 2016 are expected to be much reduced on 2015, recent transactions suggest that investor demand for high quality, well-located warehouses remains strong," he added.
By Sam Unsted; [email protected]; @SamUAtAlliance
Copyright 2016 Alliance News Limited. All Rights Reserved.
Related Shares:
Segro