Segro had an encouraging third quarter, signing £22 million of new rental agreements as improving market conditions drive increased letting activity across its European warehouse portfolio.
Segro shares rose 2% in early trade on Tuesday.
The property group’s momentum accelerated through the three months to September. This represented its strongest quarter for pre-lettings since early 2024, with total new headline rent for the nine-month period reaching £53 million.
The FTSE 100 company’s modern portfolio continues to capture significant rental uplifts. Year-to-date rent reviews, renewals and regears across 170 transactions delivered an average increase of 37%, split between 49% in the UK and 8% in Europe.
An encouraging pipeline of data centre business has caught the attention of the market and made Segro one of the leading ways to gain exposure to Europe’s AI growth.
“SEGRO has had a strong third quarter, with improving occupier sentiment reflected in £22 million of new headline rent signed during the period, bringing the total signed year-to-date to £53 million,” said David Sleath, Chief Executive.
“We have made good progress in capturing the significant mark-to-market rent potential in our existing portfolio, whilst maintaining occupancy levels and retaining customers.
“Momentum continues to build in our profitable development programme. We had our strongest quarter of pre-letting activity since Q1 2024, signing £7 million of deals versus £3 million in H1 2025, and have a healthy pipeline of further projects under discussion with enquiry levels increasing post the summer. Our fully fitted data centre joint venture is on track to submit a planning application in the coming weeks, and we are progressing multiple negotiations on both powered shells and new fully fitted opportunities in the UK and Continental Europe.”