The positive update from Segro, which operates in Britain and seven other European countries, comes at a time real estate firms remain wary of falling property prices, with tighter credit conditions making it harder for companies to refinance debt in the highly-leveraged sector.

"Despite wider uncertainty arising from recent events in the credit markets, we remain well positioned with significant liquidity, no near-term refinancing requirements and modest leverage," CEO David Sleath said in a trading statement.

London-headquartered Segro said that market data was showing signs of stabilisation in asset values, although investment activity remained subdued.

A survey last month, conducted by real estate firm Robert Irving Burns based on responses from around 250 commercial estate agents, showed sales values across all sub-categories including retail, industrial and leisure were set to edge down in the second quarter.

RBC analysts in a note said in the absence of more macroeconomic challenges, they expect Segro to continue to benefit from strong structural tailwinds for warehouse demand across Europe.

Chief Financial Officer Soumen Das told Reuters that the group was not at risk from short-term interest rate rises as it focuses on matching its long-term funding structure spread across banks, bond markets and private placements with a long-term investment strategy.

Das said Segro had been active in debt markets in the past 12 months to raise new capital.

Shares in the FTSE 100 firm were up about 3.8% at 801.8 pence at 1103 GMT.

(Reporting by Aby Jose Koilparambil in Bengaluru; Editing by Rashmi Aich and Elaine Hardcastle)

By Aby Jose Koilparambil