Segro ups value of new rent contracts in third quarter

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Property investor and developer Segro said it signed new headline rent contracts worth £15.3m in the third quarter, up from £12.6m on-year.

The increase took the total for the nine months through to £48.6m, which was down from £52.0m on-year.

Rent roll growth from existing space in the third quarter, net of take-backs was £2.1m, down from £5.5m on-year.

'We have continued to capture reversionary potential from our portfolio, with new headline rents on review and renewal approximately 20% higher than previous passing rent in the nine months to 30 September 2019,' Segro said.

The company said the increase reflected a strong contribution from the Slough trading estate and its Greater London portfolio.

Segro said its vacancy rate was broadly stable at 4.9%, up from 4.8% on-year.

'The third quarter has seen another period of strong operational delivery from Segro,' chief executive David Sleath said.

'We have continued to secure high levels of new rental income both from our existing portfolio and from our active development programme, in which we have over 1m square metres of new space under construction or in advanced discussions.'

'During the period we also added further land and assets in our core urban markets, including in London and Paris to support further growth.'

'Looking ahead, the combination of new rental income from the development programme, compounded with the benefits of active asset management of our existing portfolio, should enable us to drive sustainable growth in both earnings and dividends.'