SEGRO has recommitted to pursuing growth opportunities in its latest trading update.
The industrial REIT, which earlier this month made a £552m play for Tritax EuroBox, said its balance sheet meant it was in a “strong position” to pursue further growth opportunities.
The group has an LTV of 29% and £2.1bn of cash and undrawn committed facilities.
Chief executive David Sleath said: “Our business is performing well as we head into the final months of the year. The overall balance of supply and demand in our occupier markets remains favourable and we continue to make good progress in capturing the significant embedded reversion within our portfolio.
“We are seeing liquidity return to investment markets and we continue to identify attractive opportunities to deploy capital both through asset acquisitions and into our profitable development pipeline, utilising our exceptional landbank.”
He added: “Our prime urban and big-box portfolio, market-leading operating platform and strong balance sheet position us well to deliver strong returns from our existing portfolio and capitalise on new opportunities, supporting attractive and compounding increases in both earnings and dividends. This provides us confidence in the outlook for the remainder of the year and beyond.”
Sleath said the business had signed £58m of new headline rent so far in 2024, which was ahead of the equivalent period in 2023 and positioned SEGRO for a strong year of rent roll growth. The headline rent number includes £21m of uplifts from rent reviews and renewals and £17m of prelets.
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