SEGRO said it was positioned for another year of strong rent roll growth in a trading update for the period to 31 August.
The company said it had signed £58m of new headline rent so far this year, ahead of the equivalent period last year. This includes £21m of uplifts from rent reviews, renewals and indexation, reflecting a 30% average increase at lease events, and £17m of pre-let signings.
SEGRO said it anticipates investing circa £500m of development capex during 2024 and has a further circa £200m of asset disposals under offer.
The company also said that its recommended all-share offer for Tritax EuroBox, which was announced on 4 September, is expected to close in Q4 2024.
David Sleath, chief executive of SEGRO, said: “Our business is performing well as we head into the final months of the year. The overall balance of supply and demand in our occupier markets remains favourable and we continue to make good progress in capturing the significant embedded reversion within our portfolio.
“We are seeing liquidity return to investment markets and we continue to identify attractive opportunities to deploy capital both through asset acquisitions and into our profitable development pipeline, utilising our exceptional land bank.
“Our prime urban and big box portfolio, market-leading operating platform and strong balance sheet position us well to deliver strong returns from our existing portfolio and capitalise on new opportunities, supporting attractive and compounding increases in both earnings and dividends. This provides us confidence in the outlook for the remainder of the year and beyond.”
