(Bloomberg) — Sturdy rental progress from corporations looking for warehouse and knowledge heart area is beginning to offset among the results of painful write-downs at Europe’s largest publicly traded industrial landlord.
Segro reported a 12.5% enhance in web rental revenue in 2023, because of new developments and a 6.5% rise in like-for-like rents, based on a press release Friday. The corporate says it expects to extend its complete lease roll by greater than 50% over the following three years as new warehouses are constructed and previous leases are renegotiated on current buildings at larger ranges.
That wasn’t sufficient to fully stall the influence of rising rates of interest, which have pushed up property yields and brought on valuations to fall, however the tempo of decline slowed quickly from the earlier yr. The owner marked down its portfolio of UK and European properties by 4% in 2023, in contrast with a markdown of 11% in 2022.
“We’re reassured by continued rental progress throughout our markets,” Chief Government Officer David Sleath mentioned within the assertion. “Market expectations for decrease rates of interest, if sustained, present a optimistic backdrop for a restoration of funding market sentiment because the yr progresses.”
