SEGRO has added £26m to its rent roll over the last quarter as it spent £66m on land for new developments.
The REIT has spent more than £260m to top up its landbank in 2021 so far. Earlier this month is added two plots of land in London. In a trading update this morning it added that it was in line to invest £750m in its development pipeline.
The rent figure is a boost from Q3 2020, when it added £16m. The total for the nine months to 30 September 2021 was £64m, up from £50m for the same period last year. This includes £9m of new, unconditional prelet agreements and lettings of speculative developments prior to completion.
SEGRO chief executive David Sleath said: “We have made significant progress with our profitable development programme and have completed projects equivalent to £25m of potential rent, of which over 90% is already let.”
The industrial specialist said it had completed 4.8m sq ft of new developments so far in 2021, a fall against the same nine-month period for 2020, when it developed 7.5m sq ft. Some 93% of that space has now been let. Developments worth a further £31m in rent are expected to complete in the fourth quarter, £26m of which has been secured.
Sleath added: “We currently have 1m sq m of space under construction, and during the period have added to the active pipeline and secured further land to extend our bank of future development opportunities.”
The potential future headline rent of that pipeline is £68m, against last year’s figures of 12m sq ft and £67m. Two-thirds has been secured, and is expected to generate a yield of 6.8% when fully let.
SEGRO said it had additional prelets in advanced discussions for 196,000 sq m of space, with potential capex of £211m.
The REIT owns or manages 95m sq ft of warehouses and industrial space, valued at £17.1bn.
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