Segro PLC on Thursday hailed ‘strong growth’ in rent roll during the first quarter of the year as it noted a stabilisation of industrial and logistics asset values.

The London-based property investment firm reported total new headline rent signed of £29 million during the first quarter of 2024, up 21% from £24 million a year prior.

The occupancy rate edged down to 94.5% from 95.7% year-on-year due to speculative development completions. Customer retention edged up to 90% from 82%.

‘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 £29 million of new headline rent during the first quarter. This was achieved through capturing rental uplift on lease renewals and rent reviews, as well as the signing of £17 million of new pre-let developments,’ said Chief Executive Officer David Sleath.

Segro said that occupier markets remained favourable, supporting the company’s ability to lease new space and grow rents in the standing portfolio.

Looking ahead, CEO Sleath said: ‘Market data is showing that industrial and logistics asset values are stabilising and potentially reaching a turning point.’

Segro will release its half-year results on July 26.

Segro shares were up 1.0% to 835.60 pence per share on Thursday morning in London.

Copyright 2024 Alliance News Ltd. All Rights Reserved.