Segro contracts £70 million in new rent so far in 2026, up 32%

 British warehouse landlord Segro said on Wednesday it had contracted £70 million of new headline rent so far this year, 32% more than a year earlier, as demand for logistics and data centre space held up ahead of its planned takeover by Prologis.

Of the total, £42 million came from the existing portfolio and £28 million from development lettings.

Chief Executive David Sleath said demand-supply dynamics for modern and well-located industrial, logistics and data centre space "remain supportive.”

Rents on UK leases reviewed, renewed or renegotiated rose an average 43%, as Segro raised rents on existing space towards market levels. The Group-wide average was 34% and Continental Europe’s was 5%.

Occupancy rose 20 basis points to 94.7% since the half-year, and customer retention stayed high at 80%.

Segro completed 152,500 square metres of new space so far in 2026, equal to £13 million of potential headline rent. Some 59% of that rent was secured through pre-lets or leasing before completion.

Development projects under construction or in advanced talks represent £103 million of potential rent, two-thirds tied to pre-lets.

Negotiations are ongoing for Segro’s first fully fitted data centre in West London through its joint venture with Pure DC. It expects to sign a pre-let with a major hyperscaler in the coming months.

Segro completed £223 million of disposals above book value this year, with £11 million of associated rental income, and exchanged a further £57 million due to complete by year-end. Talks on a new UK big box joint venture are expected to generate about £500 million of net proceeds.

Segro’s loan-to-value ratio was 33%, with £1.2 billion of available liquidity.

Shareholders approved the scheme of arrangement for Prologis’ recommended best and final share offer on Sept. 28. The deal remains subject to certain conditions, with Prologis, assisted by Segro, progressing regulatory processes, and is expected to conclude in the first half of 2027.