SEGRO reported strong growth in its rent roll and completed or unconditionally exchanged on £159m of disposals in Q1 2024.
In a trading update, the developer said it had signed £29m of new headline rent in Q1 through capturing rental uplift on lease renewals and rent reviews, in addition to the signing of £17m of new pre-let developments.
David Sleath (pictured), chief executive of SEGRO, said: “Market data is showing that industrial and logistics asset values are stabilising and potentially reaching a turning point. Although transaction volumes remain muted, we have disposed of £159m of land and standing assets so far this year – including £134m exchanged since the quarter end – at prices above December 2023 book values, in line with our continued approach to disciplined capital allocation.
“As stated in our full year 2023 results, our existing portfolio and land bank offer us the potential to grow our passing rents by more than 50% over the next three years, through capturing embedded rent reversion, leasing vacant units and developing new space. The £907m of new equity raised in February provides us with the capacity to pursue further attractive growth opportunities, both through development and asset acquisitions. This gives us confidence in our ability to deliver further compound growth in earnings and dividends during 2024 and beyond.”
