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Segro reports strong start to 2018
Segro said it made a strong start to 2018 amid strong demand for its warehouses powered by the shift to online shopping.
In a trading update the industrial property developer said it secured a record £27.3m of new headline rent in the first quarter, up from £16.3m a year earlier.
Segro completed 146,500 sq m of developments in the quarter with potential for £10.9m of headline rent when fully let. It said £6.8m had already been secured. It said the development pipeline included a warehouse for Shop Direct at its logistics park in the East Midlands and an agreement to let 50,000 sq m to IKEA in Paris.
Chief executive David Sleath said: "We have had a strong start to 2018, securing £27m of new headline rent, a record level for a single quarter. Occupational demand remains encouraging across all our markets, particularly driven by the growth of online retailing."
The FTSE 100 company has capitalised on growing demand for warehouses and distribution centres near main transport routes as shopping moves online. Its customers include traditional retailers adapting to demand for internet shopping such as Marks & Spencer as well as online-only operators including Amazon.
The positive trading update for the period from 1 January to 17 April follows strong annual results in March that reported record development completions in 2017.
Segro shares, which have gained 29% in the past year, were little changed at 627p at 08:54 BST.