The SEGRO trading update published on October 21, 2026, showed £70 million of new headline rent contracted in the first nine months of the year, up 32% from the same period in 2025. Lettings across existing properties and developments supported the increase, while occupancy improved and the company continued regulatory work on its proposed combination with Prologis.
Key Takeaways
- Existing properties contributed £42 million of new contracted rent, with development lettings adding £28 million.
- Occupancy reached 94.7%, up 20 basis points since the first half, while customer retention was 80%.
- The Prologis combination remains conditional, with completion expected in the first half of 2027.
Table of Contents
- SEGRO trading update shows stronger leasing
- Development pipeline grows, but not all rent is secured
- Disposals support liquidity as joint venture talks continue
- Prologis transaction awaits remaining conditions
- Conclusion
SEGRO trading update shows stronger leasing
SEGRO’s third-quarter trading announcement covers January 1 to September 30, 2026. The £70 million contracted-rent figure measures annualised gross passing rent once incentives such as rent-free periods have expired; it is not rental revenue received during the nine months.
Chief Executive David Sleath said demand-supply conditions for modern, well-located industrial, logistics and data centre space remained supportive. He cited progress in leasing existing space, capturing higher rents and signing development agreements.
Rent reviews, renewals and renegotiated leases produced higher rents across the portfolio, with the UK recording a substantially larger average uplift than Continental Europe. These uplifts relate to the leases reviewed or renegotiated, rather than the entire portfolio.
| Item | Details |
|---|---|
| UK rent uplift | 43% average on rent reviews, renewals and renegotiated leases |
| Continental Europe rent uplift | 5% average on the same basis |
| Group rent uplift | 34% average on the same basis |
Development pipeline grows, but not all rent is secured
Development completions totalled 152,500 square metres during the first nine months, representing £13 million of potential headline rent. Of that potential rent, 59% had been secured through pre-lets or leases agreed before completion.
Projects under construction or in advanced negotiations represented a further £103 million of potential rent, with two-thirds associated with pre-lets. The distinction matters: potential rental income is not the same as rent already contracted or being received.
SEGRO was also negotiating its first fully fitted West London data centre through its joint venture with Pure DC. It expected to sign a pre-let with a major hyperscale customer in the coming months, but no signed agreement was announced.
Disposals support liquidity as joint venture talks continue
SEGRO completed £223 million of disposals above book value during the period. Those assets carried £11 million of associated rental income. A further £57 million of disposals had exchanged contracts and were due to complete by the end of 2026.
The company reported a loan-to-value ratio of 33% and £1.2 billion of available liquidity. Its LTV calculation used June 30 property values adjusted for acquisitions, disposals and other capital expenditure during the third quarter.
Discussions were progressing on a new UK big-box logistics joint venture. SEGRO expected approximately £500 million of net proceeds from contributing completed assets and land, although the arrangement had not been announced as completed.
Prologis transaction awaits remaining conditions
Shareholders approved the scheme of arrangement for Prologis’s recommended best and final share offer at meetings on September 28. Regulatory processes were continuing, and the combination remained subject to conditions.
SEGRO expected the transaction to conclude in the first half of 2027. Shareholder approval therefore marked a step toward completion, not a completed acquisition.
Conclusion
SEGRO’s nine-month update showed stronger leasing and improved occupancy, alongside development and disposal activity. The next scheduled financial milestone is full-year results on February 10, 2027, while the Prologis transaction remains subject to outstanding conditions.
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