LONDON (ShareCast) - (Sharecast News) - Real estate group Segro said its business is performing well heading into the final months of the year as it progresses its £550m takeover of Tritax Eurobox, which is expected to close in the fourth quarter.
Thursday's trading update came three weeks earlier than expected to coincide with the posting of a scheme document related to the Tritax Eurobox takeover, first announced on 4 September.

Tritax Eurobox's directors said in the release that they believe the terms of the transaction "are in the best interests of [shareholders] and unanimously recommend that all scheme shareholders vote in favour at the court meeting|, which has been scheduled for 24 October.

In a statement, Segro's chief executive David Sleath said the overall balance of supply and demand in the company's occupier markets "remains favourable".

"We are seeing liquidity return to investment markets and we continue to identify attractive opportunities to deploy capital both through asset acquisitions and into our profitable development pipeline, utilising our exceptional land bank," he said.

Segro said £58m of new headline rent has been signed so far in 2024, ahead of last year, which includes £21m of uplifts from rent reviews, renewals and indexation - reflecting a 30% average increase at lease events - along with £17m of pre-let signings.

Meanwhile, a development programme is expected to add £48m of future rent through projects current onsite and in advanced negotiations.

"Our prime urban and big box portfolio, market-leading operating platform and strong balance sheet position us well to deliver strong returns from our existing portfolio and capitalise on new opportunities, supporting attractive and compounding increases in both earnings and dividends. This provides us confidence in the outlook for the remainder of the year and beyond," Sleath said.

Segro's shares were up 0.8% at 875.6p by 0900 BST.

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