click for accessibility tool

This site uses cookies to improve your experience.

We use cookies to offer you better browsing experience. Cookies enhance site navigation, analyze site usage, and assist in our marketing efforts.To understand more about how we use cookies or to change your cookie preferences, visit our privacy and cookies page or click on ‘Show settings’. By clicking ‘Accept all Cookies,’ you agree to the storing of cookies on your device.

Privacy Policy Centre

When you visit any website, it may store or retrieve information on your browser, mostly in the form of cookies. This information might be about your preferences or your device and is mostly used to make the site work as you expect it to. The information does not usually directly identify you, but it can give you a more personalized web experience.

Because we respect your right to privacy, below you will find descriptions on the types of cookies used on this site and options to opt out where preferred. Please note blocking some types of cookies may impact your experience of the site and the services we are able to offer.

These cookies are necessary for the website to function and cannot be switched off in our systems. They are usually only set in response to actions made by you which amount to a request for services, such as setting your privacy preferences, logging in or filling in forms.

You can set your browser to block or alert you about these cookies, but some parts of the site will not then work. These cookies do not store any personally identifiable information.

These cookies allow us to count visits and traffic sources so we can measure and improve the performance of our site. They help us to know which pages are the most and least popular and see how visitors move around the site.
All information these cookies collect is aggregated and therefore anonymous. If you do not allow these cookies we will not know when you have visited our site, and will not be able to monitor its performance.

These cookies allow us to count visits and traffic sources so we can measure and improve the performance of our site. They help us to know which pages are the most and least popular and see how visitors move around the site.
All information these cookies collect is aggregated and therefore anonymous. If you do not allow these cookies we will not know when you have visited our site, and will not be able to monitor its performance.

Privacy and cookies

David Sleath, Chief Executive, said:

“Our business has continued to perform well during the first quarter, securing £21 million of new headline rent from a combination of increasing occupancy, uplifts from rent reviews and renewals and our development activity. We currently have 44 projects under construction, which are expected to generate £57 million of annualised rent and are already 72 per cent leased.

“The new equity raised in February provides the capacity to pursue further growth opportunities and we have a number of additional pre-let development projects at advanced stages of negotiation. Whilst we remain mindful of macroeconomic and political risks, we believe that our high quality portfolio of assets in prime locations across the UK and Continental Europe positions us well to continue to benefit from the structural drivers of e-commerce and urbanisation.”

Operational Excellence: Continuing to deliver profitable growth from active asset management and development (Appendix 1)

  • In the first quarter, we secured £21.2 million of new headline rent2 (Q1 2018: £27.3 million). Rent roll growth on existing space was particularly strong at £6.0 million (Q1 2018: £0.5 million), significantly benefiting from the re-gearing of a number of leases in our Heathrow portfolio. Within this we have secured new pre-lets of £11.1 million (Q1 2018: £23.3 million), well above the three-year quarterly average run rate of £7 million.
  • The vacancy rate has reduced to 4.4 per cent (31 December 2018: 5.2 per cent). The decrease since December reflects strong lettings of both existing and recently completed speculative space as well as the impact of disposals and low take-backs.
  • 100,000 sq m of developments were completed in the quarter, capable of generating £3.8 million of headline rent when fully let, of which £2.8 million (75 per cent) has been secured.
  • 1.0 million sq m of space was under development or approved for development at 31 March 2019 (31 December 2018: 0.8 million sq m). These projects equate to potential future annualised headline rent of £57 million, 72 per cent of which has been leased (31 December 2018: £46 million, 73 per cent leased), reflecting an estimated, fully-let yield on total development cost of approximately 7 per cent.
  • The development pipeline includes pre-lets signed during the period totalling 203,000 sq m. In the UK we secured a pre-let for a new data centre on the Slough Trading Estate and for the rail freight terminal at SEGRO Logistics Park East Midlands Gateway (SLP-EMG). In Italy we have agreed to construct a 103,000 sq m warehouse close to Rome for a global online retail company as well as two warehouses close to Milan for a hypermarket group and a third party logistics operator.

Disciplined Capital Allocation: Investment focused on development (Appendices 2 and 3)

  • Net investment during Q1 2019 totalled £40 million, comprising £100 million of development capex and land purchases, £10 million of asset acquisitions and £70 million of asset and land disposals.
  • Our investment activity continues to focus on delivering our current development pipeline and securing land to enable further development. We invested £90 million in development capex during the quarter and acquired £10 million of development land in Italy, Poland and the UK, almost all of which is connected to near term pre-let agreements. We continue to expect total investment in our development pipeline to exceed £600 million for 2019 as a whole (comprising approximately £400 million for development capex and the remainder on land acquisitions).
  • During the quarter we disposed of £70 million of land and assets, including a vacant big box warehouse in the Midlands and the building completed for Shop Direct at SLP-EMG on a turnkey basis.
  • We took the opportunity to acquire a newly-built 28,000 sq m warehouse in Barcelona, leased to a third party logistics operator, helping us to build scale in this attractive location.

Equity placing strengthens the balance sheet and supports further development-led growth

  • We raised £451 million of new equity in a placing to enable us to continue to add to our future development pipeline.
  • Net debt (including our share of debt in joint ventures) at 31 March 2019 was £2.2 billion (31 December 2018: £2.7 billion). The decrease principally reflects the net proceeds from the equity placing.
  • The look-through loan to value (LTV) ratio at 31 March 2019 (based on asset values at 31 December 2018, adjusted for development expenditure, acquisitions and disposals) was 23 per cent (31 December 2018: 29 per cent).
  • We estimate that the average number of shares for 2019 will be approximately 1,080 million, taking into account the new shares issued in the Placing and the provisional take-up of the final dividend in scrip form (subject to approval at the Annual General Meeting).

Financial calendar

The 2019 interim results will be published on Tuesday 23 July 2019.

1 In this statement, space is stated at 100 per cent, whilst financial figures are stated reflecting SEGRO’s share of joint ventures. Financial figures are stated for the three months to, or at, 31 March unless otherwise indicated. The exchange rate on 31 March 2019 was €1.16:£1 (31 December 2018: €1.11:£1; 31 March 2018: €1.14:£1).
2 Headline rent is annualised gross passing rent receivable once incentives such as rent free periods have expired.

This Trading Update, the most recent Annual Report and other information are available on the SEGRO website at

Neither the content of SEGRO’s website nor any other website accessible by hyperlinks from SEGRO’s website are incorporated in, or form part of, this announcement.

Forward-Looking Statements: This announcement contains certain forward-looking statements with respect to SEGRO plc’s (‘SEGRO’) expectations and plans, strategy, management objectives, future developments and performances, costs, revenues and other trend information. These statements are subject to assumptions, risk and uncertainty. Many of these assumptions, risks and uncertainties relate to factors that are beyond SEGRO's ability to control or estimate precisely and which could cause actual results or developments to differ materially from those expressed or implied by these forward-looking statements. Certain statements have been made with reference to forecast process changes, economic conditions and the current regulatory environment. Any forward-looking statements made by or on behalf of SEGRO are based upon the knowledge and information available to Directors on the date of this announcement. Accordingly, no assurance can be given that any particular expectation will be met and SEGRO's shareholders are cautioned not to place undue reliance on the forward-looking statements. Additionally, forward-looking statements regarding past trends or activities should not be taken as a representation that such trends or activities will continue in the future. Other than in accordance with its legal or regulatory obligations (including under the UK Listing Rules and the Disclosure Guidance and Transparency Rules of the Financial Conduct Authority), SEGRO does not undertake to update forward-looking statements to reflect any changes in events, conditions or circumstances on which any such statement is based. Past share performance cannot be relied on as a guide to future performance. Nothing in this announcement should be construed as a profit forecast. The information in this announcement does not constitute an offer to sell or an invitation to buy securities in SEGRO or an invitation or inducement to engage in any other investment activities.


SEGRO is a UK Real Estate Investment Trust (REIT), and a leading owner, manager and developer of modern warehouses and industrial property. It owns or manages 7.0 million square metres (75 million square feet) of space valued at £11 billion (as at 31 December 2018), serving customers from a wide range of industry sectors. Its properties are located in and around major cities and at key transportation hubs in the UK and in eight other European countries.

Click here to download this press release as a pdf.

Financial Investors
Copy URL