LONDON (ShareCast) - (ShareCast News) - Investment trust SEGRO said it was optimistic about its full-year performance as its UK portfolio was reaping the benefits of favourable market conditions.
In the three months to 21 October, the FTSE 250 group said the amount of new rent contracted jumped 63% year-on-year to £10.6m, with £2.3m of those £10.6m generated from the company's existing space compared with £1.9m a year earlier.

The performance was the strongest quarterly performance since 2012, the company said, adding it brought total contracted rent for the nine months to £25.7m, a 16.2% year-on-year increase.

SEGRO added the vacancy rate in the period improved from 7.4% at the end of June to 6.6%, due to an increase in tenants in its existing spaces, while rents have increased 3% year-on-year. The group is currently in the process of developing two projects in Rugby and Paris which will lead to potential rents of approximately £22m.

"Occupational conditions continue to be favourable, particularly in our UK portfolio, and we remain optimistic about our full year operating performance," the company said in a statement.

"We have seen further net absorption of existing space contributing to an improvement in our vacancy rate, and continued strengthening in overall rental terms."

SEGRO shares were up 0.70% to 445.10p at 0919 BST on Thursday.

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