30th Apr 2025 09:44
(Alliance News) - Segro PLC on Wednesday said Chief Financial Officer Soumen Das will retire at the end of the year and noted that the supply of new space remains constrained.
The London-based industrial property investor said the process to replace Das as CFO has begun. Das will remain at the company until the end of the year to allow an orderly transition, Segro said.
The company said it signed GBP13 million of new headline rent in the first quarter of 2025, the majority of which came from its existing portfolio.
Segro said there was a 25% uplift from rent reviews and renewals, with 37% in the UK and 9% in continental Europe.
Chief Executive Officer David Sleath commented: "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," Sleath warned.
Segro said it has GBP58 million of potential headline rent from development projects under construction or in advanced negotiation, with an anticipated yield on cost of 7.7%, up GBP7 million from the end of 2024.
The company said development completions during during the period totalled GBP2 million of headline rent, which has now been leased.
It said its balance sheet "remains strong" with a loan-to-value of 29% and GBP2.2 billion of cash and undrawn committed facilities, which it said allows it to pursue further growth opportunities.
On tariffs, Segro said it expects the direct impact on its portfolio to be limited as its portfolio is weighted to supporting domestic consumption.
"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," said CEO Sleath.
Shares in Segro were down 1.7% to 678.80 pence in London on Wednesday morning.
By Michael Hennessey, Alliance News reporter
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