London - Warehousing firm Segro said on Thursday that Russia's invasion of Ukraine added to its construction supply chain and inflationary woes, and could put an upward pressure on rents. London-headquartered Segro, which operates in Britain and seven other European countries, said the constraints would further "tighten the supply-demand imbalance" for its industrial assets - properties typically used for goods manufacturing and distribution.
Demand has remained robust, leading to a strong start to the year, the company said. The commercial real estate firm operates 90 million square feet of warehouse space - the equivalent of more than 1,500 soccer fields. Warehousing companies have benefited from cut-throat competition among rapid delivery firms as retailers rearrange supply chains to bank on centrally located fulfilment centres and smaller urban distribution centres: "We have secured future opportunities for growth in some of our most supply-constrained urban markets through the acquisition of land, as well as income-producing assets with medium-term redevelopment potential," said Segro Chief Executive Officer David Sleath. The FTSE 100 firm said contracted rental income, which excludes space taken back for redevelopment, grew about 39% to 25 million pounds ($32.69 million) for the three months ended March 31.