London-listed industrial landlord Segro PLC logged a year-over-year decline in contracted headline rent for the nine months ended Sept. 30 at £48.6 million, compared to £52.0 million in the year-ago period.
In a trading update, CEO David Sleath said the company expects sustainable growth in earnings and dividends with new rental income from its development program despite the uncertain macroeconomic conditions prevalent in the market.
During the three-month period ended Sept. 30, the company invested £78 million in urban warehouse asset acquisitions, including two off-market acquisitions in South and East London. Segro also made two further acquisitions in Lyon, France.
The real estate investment trust also invested £77 million in its land bank in London and Paris, which includes the acquisition of eight acres of land in Tottenham, North London, on which it expects to develop urban warehousing and a further acquisition of 14 acres of land for an urban warehousing project near Ingolstadt in southern Germany.
Additionally, the REIT sold £15.8 million worth of land and assets during the third quarter. The disposals, reflecting a 6.6% net initial yield, include land and assets in Gdansk, Poland.