Segro, a U.K.-based real estate investment trust, experienced a decrease in its contracted rental income during the third quarter of 2023. However, the company remains optimistic about its overall rent roll growth for the year, citing high demand for its products and proactive asset management.
In the three months ending on September 30, Segro secured £14 million ($17.1 million) of new headline rent, compared to the £20 million recorded in the same period last year.
For the nine-month period ending on September 30, total new contracted headline rent amounted to £58 million, a decrease from the previous year’s figure of £76 million.
Although Segro’s occupancy rate dipped slightly to 95.3% for the first nine months of the year (compared to 96.7% the previous year), customer retention saw an improvement, rising to 81% from 76%.
According to Chief Executive David Sleath, market conditions for occupiers remain favorable, with demand aligning with long-term trends and limited supply in the company’s chosen sub-markets. This situation has contributed to consistent rental growth for Segro.