Segro delivers 'strong quarter' of letting activity
By Iain Gilbert
Date: Tuesday 21 Oct 2025
(Sharecast News) - Property investment and development firm Segro said on Tuesday that improving occupier sentiment had driven "a strong quarter" of letting activity, with £22m of new rent signed in the three months ended 30 September.
Segro stated it has now signed £53m of new headline rent so far in 2025, as its prime logistics portfolio continued to deliver strong rental growth and high occupancy.
The FTSE 100-listed firm said rent reviews, renewals and regears had driven a 37% uplift year-to-date, with UK assets seeing a 49% increase and Continental Europe up 8%. Occupancy stood at 94.3%, with customer retention at 86%.
Development completions in Q3 added £8m of rent across 34,800 square metres of new space, including a powered shell data centre at Slough Trading Estate. Total completions for the year reached 231,600 square metres, equating to £27m of expected rent, 89% of which has already been secured.
Segro also said it had invested £286m into its development pipeline so far this year, including £25m of land purchases, alongside £228m of asset acquisitions and £39m of disposals. Development capex for 2025 was expected to be around £400m.
On the financing side, Segro secured a new €360m five-year term loan to partly refinance its 2026 bond maturity, while SELP signed a €600m revolving credit facility. It also noted that its balance sheet remained strong, with a loan-to-value ratio of 32% and £1.7bn of cash and undrawn committed facilities.
Chief executive David Sleath said: "We have made good progress in capturing the significant mark-to-market rent potential in our existing portfolio, whilst maintaining occupancy levels and retaining customers. Momentum continues to build in our profitable development programme."
As of 0825 BST, Segro shares were up 3.74% at 697.75p.
Reporting by Iain Gilbert at Sharecast.com
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