SEGRO plc released a trading update on Wednesday covering the first half of 2026, reporting £53 million of new headline rent contracted in the period. The company said the new rent came from two primary sources: leasing and reversion within its existing portfolio, and lettings tied to development activity.
Within the existing portfolio SEGRO recorded £27 million of new headline rent by leasing vacant space and capturing reversionary opportunities. Development lettings accounted for the remaining £26 million, including £24 million arising from new pre-lets agreed during the period.
SEGRO highlighted substantial uplifts from contract renewals and rent reviews. In the UK it achieved a 44% uplift on rent reviews, renewals and regears. The group-wide average uplift was 32%, with Continental Europe showing a 4% uplift.
Occupancy across SEGRO's portfolio stood at 94.5% at the update date, a slight decline from year-end levels. The company attributed the modest fall to recent speculative completions in its German urban development portfolio.
On development and pipeline metrics SEGRO said it now has a record pipeline of projects either under construction or in advanced negotiations, representing £90 million of potential rent. Three quarters of that potential rent is linked to pre-let contracts, underlining pre-let activity as a key component of future income visibility.
The company narrowed its capital expenditure guidance for 2026 to a range of £500-550 million, noting the revised range sits at the top end of its prior guidance.
Regarding disposals and balance sheet items SEGRO completed £213 million of disposals above book value during the period, generating £10 million of associated rental income. The company also exchanged a further £95 million of disposals expected to complete later in 2026.
Operational efficiency improved, with the EPRA cost ratio excluding share-based payments falling to less than 18% from 19.8% at year-end.
Pro forma adjusted net asset value reached 905 pence, a small decrease from December 31, 2025. SEGRO said the reduction reflected differences in yield assumptions applied by the company’s new UK valuer for certain urban assets.
SEGRO reiterated its focus on data centre capacity as part of its strategy. The company added 0.5 GVA to its strategic power bank, signed a second fully fitted joint venture with Pure DC, and said it is in discussions for its first fully fitted data centre lease at Park Royal, London.
SEGRO will publish its half-year 2026 results on July 30, 2026.