Segro posts strong H1 performance as occupier demand lifts rental growth

Segro delivered a strong first‑half performance in 2026, supported by resilient occupier markets, robust rental growth and accelerating progress across its data centre strategy.

Segro park, Cologne city

The company reported 5.3% like‑for‑like net rental income growth, underpinning a 6.6% increase in adjusted EPS to 19.3p. New headline rent secured during the period rose to £53 million, up from £31 million in H1 2025, including £24 million of new pre‑lets and £27 million of leasing and reversion capture within the existing portfolio.

Occupancy remained within Segro’s target range at 94.5%, while rent reviews and renewals in the UK delivered an average uplift of 44%. Group ERV growth reached 1.8%, with the UK at 2.3% and Continental Europe at 1.1%.
development activity continues to scale, with completions adding £12 million of potential headline rent, 58% of which is already leased, at an average yield of 6.5%. 

Capital recycling remains a core focus, with £308 million of disposals completed or exchanged so far in 2026, all above book value. Development capex is now expected to reach £500–£550 million for the year.

Segro also advanced its data centre strategy, adding 0.5GVA of power capacity to its strategic bank, taking total potential capacity to 3.0GVA across key European availability zones. The company secured planning for its first fully fitted data centre in Park Royal, signed a powered‑shell pre‑let at Slough Trading Estate, and formed a second joint venture with Pure Data Centres Group to deliver its first fully fitted continental European facility in Paris.

CEO David Sleath said improving occupier demand for high‑quality industrial, logistics and data centre space is underpinning a “record pipeline of development projects,” adding that disciplined capital allocation and cost control will support continued earnings and dividend growth.

Segro expects substantial embedded income growth, including £157 million of reversion and vacancy capture, and forecasts adjusted EPS to rise from 36.6p in 2025 to around 50p by 2030, supported by structural demand drivers and constrained land and power availability across its core markets.