Industrial property firm Segro delivered strong half-year results with a “record level” of projects in the pipeline, driven by a continued demand for logistics space.
Adjusted profit before tax increased by 6.3% to £268m in the six months to 30 June and like-for-like net rental growth during the period was 5.3% (7.8%).
The company secured £53m of new headline rent, an increase of 71% from £31m, including £27m of new leases and £26m from tenants signing up to its new developments.
Segro chief executive David Sleath said it had “a record pipeline of development projects under construction or in advanced negotiations, underpinned by improving occupier demand for high-quality, well-located industrial, logistics and data centre space”.
He added: “We remain focused on disciplined capital allocation, recycling assets above book value and investing in higher-return opportunities.”
The company said demand was supported by the growth of European cities and the need for digital connectivity, operational efficiency and resilient supply chains.
Earlier this month, Segro said three companies, including Volvo Group, had signed lease agreements at its Coventry industrial park and reflected positive activity across its UK big box portfolio.
