Investment accounts
Adult accounts
Child accounts
Choosing Fidelity
Choosing Fidelity
Why invest with us Current offers Fees and charges Open an account Transfer investments
Financial advice & support
Fidelity’s Services
Fidelity’s Services
Financial advice Retirement Wealth Management Investor Centre (London) Bereavement
Guidance and tools
Guidance and tools
Choosing investments Choosing accounts ISA calculator Retirement calculators
Share dealing
Choose your shares
Tools and information
Tools and information
Share prices and markets Chart and compare shares Stock market news Shareholder perks
Pensions & retirement
Pensions, tax & tools
Saving for retirement
Approaching / In retirement
Approaching / In retirement
Speak to a specialist Creating a retirement plan Taking tax-free cash Pension drawdown Annuities Investing in retirement Investment Pathways
Segro reports robust rent roll growth in first quarter
(Sharecast News) - Segro reported robust growth in its rent roll in a trading update for the March quarter on Thursday, driven by favourable occupier market dynamics. The FTSE 100 company said that in the quarter, it achieved significant growth in its rent roll, supported by ongoing positive trends in the occupier market.
Additionally, it said it had completed or unconditionally exchanged on £159m of disposals in 2024, at prices surpassing December book values.
The board said market data suggested that industrial and logistics asset values were stabilising.
Segro said it was well-positioned to invest in profitable development opportunities, boasting an average yield on cost of 7% to 8%.
The group also had the capacity to pursue additional growth opportunities, further bolstered by the proceeds of its recent equity raise.
Segro said it would publish its half-year results on 26 July.
"2024 has started well for Segro - our prime urban and big box portfolio and market-leading operating platform, supported by favourable occupier markets, have enabled us to sign £29m of new headline rent during the first quarter," said chief executive officer David Sleath.
"This was achieved through capturing rental uplift on lease renewals and rent reviews, as well as the signing of £17m of new pre-let developments.
"Market data is showing that industrial and logistics asset values are stabilising and potentially reaching a turning point."
Sleath said that although transaction volumes remained muted, Segro had disposed of £159m of land and standing assets so far this year, including £134m exchanged since the quarter ended, at prices above December book values, in line with its continued approach to disciplined capital allocation.
"As stated in our full-year 2023 results, our existing portfolio and land bank offer us the potential to grow our passing rents by more than 50% over the next three years, through capturing embedded rent reversion, leasing vacant units and developing new space.
"The £907m of new equity raised in February provides us with the capacity to pursue further attractive growth opportunities, both through development and asset acquisitions.
"This gives us confidence in our ability to deliver further compound growth in earnings and dividends during 2024 and beyond."
At 0815 BST, shares in Segro were up 1.01% at 836p.
Reporting by Josh White for Sharecast.com.
Share this article
Related Sharecast Articles
Important information: This information is not a personal recommendation for any particular investment. If you are unsure about the suitability of an investment you should speak to one of Fidelity’s advisers or an authorised financial adviser of your choice. When you are thinking about investing in shares, it’s generally a good idea to consider holding them alongside other investments in a diversified portfolio of assets. Past performance is not a reliable indicator of future returns.
Award-winning online share dealing
Search, compare and select from thousands of shares.
Expert insights into investing your money
Our team of experts explore the world of share dealing.
Policies and important information
Accessibility | Conflicts of interest statement | Consumer Duty Target Market | Consumer Duty Value Assessment Statement | Cookie policy | Diversity, Equity & Inclusion | Doing Business with Fidelity | Diversity, Equity & Inclusion Reports | Investing in Fidelity funds | Legal information | Modern slavery | Mutual respect policy | Privacy statement | Remuneration policy | Staying secure | Statutory and Regulatory disclosures | Whistleblowing policy
Please remember that past performance is not necessarily a guide to future performance, the performance of investments is not guaranteed, and the value of your investments can go down as well as up, so you may get back less than you invest. When investments have particular tax features, these will depend on your personal circumstances and tax rules may change in the future. This website does not contain any personal recommendations for a particular course of action, service or product. You should regularly review your investment objectives and choices and, if you are unsure whether an investment is suitable for you, you should contact an authorised financial adviser. Before opening an account, please read the ‘Doing Business with Fidelity’ document which incorporates our client terms. Prior to investing into a fund, please read the relevant key information document which contains important information about the fund.
This website is issued by Financial Administration Services Limited, which is authorised and regulated by the Financial Conduct Authority (FCA) (FCA Register number 122169) and registered in England and Wales under company number 1629709 whose registered address is Beech Gate, Millfield Lane, Lower Kingswood, Tadworth, Surrey, KT20 6RP.