SEGRO PLC (LON;SGRO) said rents this year have risen strongly as demand for industrial and warehouse space keeps growing
New headline rents on review and renewal were up more than 12% on previous passing rent, Segro said, as ‘ongoing asset management continued to capture reversionary potential from our existing portfolio’.
The FTSE 100 group added it signed £18mln worth of new contracts and renewals between 1 January to 21 April 2021 with £11.3mln in pre-lets In France, Poland, Italy and a ‘big box’ warehouse in the East Midlands
As of 31 March 2021, it had over 1.1mln sq m of space under construction, equating to potential future headline rent of £67mln, with a further £20mln in near-term projects.
David Sleath, chief executive, said: “2021 has started well for SEGRO, with our ongoing active asset management strategy and continued strong occupier demand enabling us to sign £18 million of new headline rent during the quarter by capturing reversionary potential on the existing portfolio, alongside securing new pre-lets on developments.
“Our expanded, de-risked development programme now comprises 1.3 million sq m of new space either under construction or in advanced discussions.
“Our sector continues to benefit from highly supportive and structural tailwinds and we therefore remain confident in the outlook for the business.”
Demand for industrial warehouses and space has rocketed during the pandemic due to the growth in eCommerce and the need for fulfilment of these orders.