Shares in Segro PLC (LSE:SGRO) led the FTSE 100 on Tuesday morning after the industrial property developer reported an uptick in rent in the third quarter, supported by improving occupier sentiment and increased pre-letting activity.
The real estate investment trust signed £22 million of new headline rent during the quarter, lifting the total for 2025 to date to £53 million. Rent reversion remained positive, with an average uplift of 37% across 170 lease events.
Occupancy was maintained at 94.3%, with customer retention at 86%.
The company ended the period with £1.7 billion of cash and committed facilities, and a loan-to-value ratio of 32%.
Development activity for the REIT saw the most productive pre-letting quarter in a year and a half, as new pre-lets totalled £7 million, including large logistics warehouses in France and Italy.
Year-to-date, completed developments represent 231,600 sq m and £27 million of rent, of which 89% is secured.
The company has invested £286 million into development projects and £228 million into acquisitions so far this year, including £25 million in land purchases and £39 million of disposals.
SEGRO’s data centre joint venture also made progress, with a planning application for a fully fitted facility at Slough Trading Estate expected shortly.
The shares rose 3.2% to 694.2p in early trading.