Segro profits rise as investors await firm Prologis offer

(Sharecast News) - Takeover target Segro on Thursday reported a solid first-half performance, with underlying rent growth driving a 6% increase in adjusted profits, supported by "positive momentum" in occupier markets. The real estate group, which last week said it would be "minded to recommend" a £14bn takeover bid from US REIT Prologis, said like-for-like net rental income grew 5.3% compared with last year, with UK rents up 6.6% and Continental Europe rents up 3.3%.

Adjusted pre-tax profit totalled £268m over the six months to 30 June, up from £252m the year before.

The company signed £24m of new pre-lets during the period, with a record level of development projects in the current and near-term pipeline.

Meanwhile, the company said it sold or exchanged on £308m of assets above book value during the first half.

Chief executive David Sleath called it a "strong set of results".

"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," he said.

Assets under management slipped slightly over the six-month period to £21.7bn from £22.0bn at the end of 2025, with Segro's share of its portfolio falling to £18.7bn from £19.0bn. As such, net asset value per share fell 2.5% to 902p.

Segro shares were down 0.4% at 966.2p by 0827 BST, but have surged over 30% since mid-June on takeover speculation.

Last week, the board granted Prologis an extension to its 'put up or shut up' date to 12 August.

See the latest RNS on Investegate.