SEGRO hails ‘strong’ H1 results as occupier demand lifts earnings

Industrial and logistics developer SEGRO has highlighted continued demand for modern warehouse space across the Midlands after reporting a record development pipeline and a strong first half of 2026.

The FTSE 100 REIT, which owns and develops logistics parks across the UK’s motorway network, said improving occupier demand had helped it secure £53m of new headline rent during the first six months of the year, including £24m of new pre-lets and £26m of development signings.

SEGRO owns a number of key assets in the Midlands region, with more than 12m sq ft of space across major sites in Northampton, Coventry, Kettering, Kegworth, and Derby. In total, the region makes up around 15% of the firm’s 86m sq ft global portfolio.

• READ MORE: SEGRO secures trio of lettings in Coventry

Across the group, the current and near-term development pipeline now represents £90m of potential rental income, with 75% already pre-let, while development completions during the period added a further £12m of potential rent.

SEGRO also continued to recycle capital into new opportunities, completing or exchanging £308m of disposals above book value so far this year. Development investment is now expected to total £500m-£550m during 2026.

Earlier this month, the firm also announced plans for a £1bn UK logistics JV, agreeing heads of terms with an international capital partner, with assets at Coventry and Northampton included to seed the venture.

The group is currently the subject of a takeover bid by US rival Prologis, with shareholders currently mulling over a potential £14bn bid.

“We secured £53 million of new headline rent and have a record pipeline of development projects under construction or in advanced negotiations, underpinned by improving occupier demand for high-quality, well-located industrial, logistics and data centre space,” said David Sleath, chief executive.

“We remain focused on disciplined capital allocation, recycling assets above book value and investing in higher-return opportunities. This along with continued cost discipline and our focus on ensuring we have a capital-efficient corporate structure, is expected to support ongoing growth in earnings and dividends in the years ahead.”