Segro has continued to make "good progress" in the third quarter of its financial year as the property investment company reaped the benefits of reshaping of its portfolio.
In an interim management statement for the period to 22 October 2014, the Slough-headquartered group said occupational market conditions in the UK have continued to strengthen.
The business also revealed that it has a "committed development pipeline", capable of generating an additional £17m of rent, substantially over the next 12 months.
Segro completed more than 1.2 million sq ft of developments in the quarter, capable of generating annualised rent of £4.4m, of which £3.8m has already been secured.
Meanwhile, the group completed £246m of acquisitions and £79m of disposals in the quarter.
Chief executive David Sleath said: "We have continued to make good progress over the quarter, reflecting the benefits of the strategic reshaping of our portfolio. Occupational market conditions in the UK have continued to strengthen, which have contributed to further net absorption of existing space and a significant improvement in portfolio occupancy.
"Our development programme is delivering new product into a market that is short of well-located, modern warehouse space. Additionally, we have a committed development pipeline which is capable of generating an additional £17m of rent, substantially over the next 12 months, half of which has already been leased.
"Investor demand for well-located industrial and logistics assets has continued to strengthen during the period. The IPD Monthly Index showed 3.9 per cent growth in UK industrial property capital values for the third quarter and transactional evidence of higher values continues to be observed in Continental Europe.
"Together, these factors should provide a supportive environment in which to undertake asset disposals and are likely to be positive for year-end property valuations."
Segro will issue its results for the year to 31 December 2014 on 25 February 2015.