LONDON (dpa-AFX) - Segro plc (SGRO.L), a UK Real Estate Investment Trust, reported Wednesday improved rental collection in the third quarter.
Separately, the company said it has acquired Electra Park, a 13 acre urban warehouse estate in Canning Town, London from Schroders Plc (SDRC.L, SDR.L) for 133 million pounds.
The estate is close to Canary Wharf and London City Airport as well as being bordered by the A12 and A13 main roads, connecting it directly to central London. Electra Park provides 21,200 sq m of lettable space across 10 units of which nine are let, with the final unit currently under offer.
In the deal, Segro was advised by JLL, and Schroders were advised by Gerald Eve.
In its trading update, Segro said it signed contracts worth 15.8 million pounds of new headline rent during the third quarter, compared to 15.3 million pounds last year.
Rent roll growth from existing space, net of take-backs was 5.6 million pounds, up from 2.1 million pounds a year ago.
The company noted that for the year-to-date period in 2020, it has completed 695,800 sq m of new developments, capable of generating 38.0 million pounds of headline rent, compared to last year's 765,900 sq m, capable of generating 33.7 million pounds of headline rent.
Developments capable of generating 11 million pounds of headline rent are expected to complete in the fourth quarter, 8 million pounds of which has been secured.
The vacancy rate was stable at 5.2 percent.
Customer retention remains high at 88 percent, reflecting prime locations and focus on excellence in customer service.
The company further said that 70 million pounds of potential new headline rent from 1 million sq m of new space are under construction or in advanced discussions.
The company is slated to release its 2020 full year results on February 19, 2021.
David Sleath, Chief Executive, said, 'Rental collection has improved this quarter and we remain confident in the outlook for our business despite the macroeconomic uncertainties caused, in part, by Covid-19. We expect to continue to drive sustainable growth in both earnings and dividends from the combination of new rental income from the development programme, compounded with the benefits from active asset management of our existing prime portfolio.'
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