Segro bullish after solid start to the year

Segro said on Thursday that 2023 had got off to strong start, boosted by solid occupier demand and limited supply.

The real estate investment trust, which specialises in warehouses and other industrial properties, said the occupancy rate was 95.7% in the first quarter, lower than the 96.7% recorded in the same three months a year earlier, but customer retention improved to 82% from 79%.

Total new headline rent signed during the period was £25m, compared to £24m in the first quarter of 2022.

Net debt rose marginally, to £5.9bn from £5.7bn.

David Sleath, chief executive, said: "2023 has started well for Segro. Occupier demand continues to be high and is coming from a range of customers, while supply remains limited across all our markets.

"These favourable dynamics, combined with the active asset management of our prime portfolio, have enabled us to drive strong rent roll growth from the leasing of recently completed space and the capture of reversion and indexation of our standing assets.

"Despite wider uncertainty arising from recent events in the credit markets, we remain well positioned with significant liquidity, no near-term financing requirements and modest leverage."

He added that the Reit expected to deliver further compound growth in both earnings and dividends in the current year.

As at 0900 BST shares in Segro were ahead 2% at 790.2p.