SEGRO improved its rent roll in Q1 2023, thanks to strong occupier demand and limited supply.
David Sleath, SEGRO chief executive, said demand continues to be high from a diverse range of customers and thanks to the lack of available stock these “favourable dynamics” have enabled the group to drive strong rent roll from the leasing of recently completed space and the “capture of reversion and indexation” from SEGRO’s existing assets.
The developer has projects equivalent to £84m of additional rent under construction or due to start soon.
Sleath added: “Market data is showing signs of stabilisation in asset values, although investment activity remains subdued This is most evident in the UK where the indices show that values are broadly flat over the first quarter, but also in continental Europe, as supported by a valuation exercise relating to the SELP portfolio which indicated only a small decline in values during the first three months of the year.
“Despite wider uncertainty arising from recent events in the credit markets, we remain well positioned with significant liquidity, no near-term refinancing requirements and modest leverage. We have considerable capacity to continue investing in our portfolio in a disciplined manner and expect this to deliver further compound growth in earnings and dividends during 2023 and beyond.”
