Segro says business continued to perform well during first quarter
By Alexander Bueso
Date: Wednesday 17 Apr 2019
(Sharecast News) - Property developer Segro told shareholders on Wednesday that the business \"continued to perform well\" during the first quarter.
The company secured £21m of new headline rent, down from £27.3m in the year ago period, alongside rent roll growth of £6.0m on existing space - thanks to the re-gearing of a number of leases in its Heathrow portfolio, which management labelled as \"particularly strong\".
Segro also secured new pre-lets, worth £11.1m, which while less than the £23.3m observed over the first three months of 2018 was well above the three-year quarterly average of £7.0m, the company said in a statement.
A total of 44 projects under construction were expected to generate £57m of annualised rent and were aleady 72% leased, versus Segro\'s record 73% of pre-letting reached in fiscal year 2018.
There were 1.0m square metres of space under development or approved for development a 31 March, up from 0.8m as of 31 December.
During the quarter, 100,000 square metres of developments were completed, which were capable of generating £3.8m of headline rent when fully let, with 75% of that space having already been let.
The developer\'s vacancy rent meanwhile decreased from 5.2% as of year-end 2018 to 4.4%, on the back of \"strong\" lettings of existing and recently-completed speculative space, together with the imapct of disposals and low take-backs.
During the quarter, Segro carried out £40.0m of net investments, split between £100m of development capex and land purchases, £10m of asset acquisitions and £70m of asset and land disposals.
Following an equity placing in February, net debt declined from £2.7bn at the end of the fourth quarter of 2018 to £2.2bn.
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