16th Oct 2019 08:00
(Alliance News) - Real estate investment trust SEGRO PLC on Wednesday said it continued to secure high levels of new rental income in the third-quarter.
The company, which manages and develops warehouses and light industrial property, said active asset management and high occupier demand resulted in a "strong" operational performance, with new headline rental income rising 21% year-on-year to GBP15.3 million in the three months to September 30 from GBP12.6 million in the year ago period.
Year-to-date new headline rental income totalled GBP48.6 million, down 6.5% from GBP52.0 million a year ago.
Rent from existing assets more than halved year-on-year to GBP2.1 million in the third quarter from GBP5.5 million a year ago, but the nine-month figure rose 54% to GBP10.6 million.
"SEGRO continues to benefit from the structural trends of urbanisation and technological revolution, and despite the uncertain macro-economic backdrop at this time, we head into the final part of the year with confidence. Looking ahead, the combination of new rental income from the development programme, compounded with the benefits of active asset management of our existing portfolio, should enable us to drive sustainable growth in both earnings and dividends," Chief Executive David Sleath said.
SEGRO has completed 765,900 square metres of new developments year-to-date, generating GBP33.7 million of headline rent, 88% of which has been leased. It expects to complete new developments capable of generating GBP15.1 million of headline rent in the fourth quarter, GBP12.7 million of which has already been secured.
The company remains on track to invest around GBP600 million in the development pipeline, including land, infrastructure and construction, in 2019 as a whole.
SEGRO's vacancy rate was stable at 4.9% at September 30 versus 4.8% at June 30. Net debt at end of third quarter stood at GBP2.7 billion versus GBP2.4 billion at the end of second quarter.
SEGRO intends to release 2019 results on February 14.
By Tapan Panchal; [email protected]
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