Segro posts record £99m of new rent as earnings, occupancy rise

(Sharecast News) - Property developer Segro said on Friday that it delivered a "strong operating performance" in 2025, securing a record £99m of new contracted rent and posting 6% like‑for‑like growth in net rental income. Adjusted earnings and dividends per share both rose 6.1% year‑on‑year to 36.6p and 31.1p, respectively, as momentum grew across occupier markets, with enquiry levels improving and active negotiations underway for further pre‑let deals. Adjusted pre-tax profits increased by 8.3% to £509m.

Segro said its record new headline rent performance, which was up from £91m a year earlier, included £66m from leasing and reversion capture within its existing portfolio and £33m from development deals, of which £26m were new pre‑lets signed largely in the second half.

The FTSE 100-listed group reported strong asset‑management performance, delivering 6% like‑for‑like net rental income growth, and said estimated rental values rose 3.1% in the UK, with Park Royal and Heathrow particularly strong at 4.7%, while ERVs in Continental Europe increased 1%.

Occupancy improved to 94.9%, up 90 basis points from 94% in 2024, supported by higher customer retention, and development completions added £29m of potential new headline rent, 93% of which was already leased, delivered at an 8.2% yield. Adjusted net asset value per share was up 2% to 925p.

Looking ahead, Segro added that it was well positioned for further sustainable growth, supported by rent reversion, a profitable development pipeline and what it described as an "exceptional" data‑centre opportunity pipeline.

Reporting by Iain Gilbert at Sharecast.com