Segro hails performance following nine-month headline rent growth

Segro PLC on Wednesday said it "continued to perform well" during the third quarter, as discussions for a London data centre and a UK big-box joint venture continue.

The London-based property developer contracted £70 million in new headline rent in the nine months to September 30, up 32% from £53 million a year earlier.

This comprised £42 million from its existing portfolio and £28 million from development lettings, the company said.

The group achieved an average rental uplift of 34% on rent reviews, renewals and regears, down from 37% a year earlier. UK rental uplift was 43%, down from 49%, while Continental Europe recorded an uplift of 5%, compared with 8% a year earlier.

Occupancy rose by 20 basis points from the first half of 2026 to 95% at September 30, while customer retention was 80%, down from 86% a year earlier.

Development completions totalled 152,500 square metres of new space, down 34% from 231,600 square metres a year earlier.

Looking ahead, Segro said discussions were progressing well on a new UK big-box joint venture, which it expects to generate about £500 million in net proceeds.

Segro also said negotiations are ongoing for a West London data centre through its joint venture with Pure DC are ongoing. It said it expects to sign a pre-let with an unnamed "hyperscaler" in the coming month.

Chief Executive David Sleath said: "Segro has continued to perform well during the third quarter. Demand-supply dynamics for modern and well-located industrial, logistics and data centre space remain supportive, enabling good progress with our letting of existing space, reversion capture and development signings."

Segro will publish its full-year 2026 results on February 10, 2027.

Shares in Segro were up 0.8% at 909.00 pence in London on Wednesday morning.

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