StockMarketWire.com - SEGRO's total contracted headline rent was £36.4 million for the nine months to 30 September, 3% higher than the same period last year.

The company contracted £8.8 million of new headline rent during the third quarter, including £3.8 million in rent from existing space.

It completed 313,000 sq m of fully let developments which will generate £12 million of headline rent, the largest of which was a 156,000 sq m fulfilment centre for Amazon in Rome.

Strong lettings of existing space and development completions in the third quarter contributed to an improvement in the vacancy rate to 4.1% from 5.5% at 30 June 2017.

SEGRO let the final speculatively developed warehouses at Rugby Gateway in the Midlands and Navigation Park in Enfield to DHL, meaning both estates are now fully let. In addition, it let one of the two remaining warehouses at Origin in West London to Amazon. These three transactions added £2.4 million of headline rent.

The company also signed new, unconditional pre-let agreements totalling £1.3 million of headline rent during the third quarter, including to retailer Leroy Merlin near the inland port of Gennevilliers, close to the centre of Paris.

At 30 September 2017, 725,000 sq m of space was in the current development pipeline, equating to potential future headline rent of £41 million (30 June 2017: 920,400 sq m, £46 million).

Net debt at 30 September 2017 was £2.3 billion.

David Sleath, chief executive, said: "Investor appetite for prime warehouse assets remains strong, attracted by the structural drivers of occupier demand, limited supply and the prospect of rental growth particularly in the UK and in urban warehousing in Continental Europe.

"These trends in occupier and investor demand provide a supportive backdrop for SEGRO's performance for the remainder of 2017 and into 2018."




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