Segro plc (REIT) (SGRO) AI Stock Analysis

• Market Cap: £9.46B
• Dividend Yield: 4.03%
• Average Volume (3M): 3.55M
• Price to Earnings (P/E): 15.7
• Beta (1Y): 1.26
• Revenue Growth: -9.88%
• EPS Growth: N/A
• Country: UK
• Employees: 459
• Sector: Real Estate
• Sector Strength: 72
• Industry: REITs
• EPS (TTM): 0.45
• Shares Outstanding: 1,352,862,500
• 10 Day Avg. Volume: 3,624,933
• 30 Day Avg. Volume: 3,552,019
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 12.89
• Price to Cash Flow (P/CF): 33.60
• P/FCF Ratio: 21.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: 833.67p
• Price Target Upside: 20.16% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 9

Segro plc demonstrates a solid overall performance with strengths in financial stability and strategic expansion through recent acquisitions. The company's valuation metrics are appealing, offering a reasonable P/E ratio and attractive dividend yield. However, technical indicators show mixed signals, suggesting potential caution in the short term. Overall, Segro plc presents a balanced investment opportunity with growth potential in the European logistics market.

Positive Factors

Financial Stability

SEGRO's well capitalised balance sheet should allow it to both execute on the development programme and make opportunistic acquisitions, whilst maintaining an LTV of <30%.

Market Position

SEGRO is well-placed to take advantage of the improving occupier and investment markets when other developers may still be struggling with capital constraint.

Negative Factors

Market Slowdown

The occupier market has slowed with take-up back to pre-pandemic levels and supply constant, leading to a fall in net absorption.

Segro plc (REIT) Business Overview & Revenue Model

Company Description

Segro PLC is a European real estate investment trust involved in the ownership and management of industrial and warehouse properties. The company's real estate portfolio is split fairly evenly between smaller, light industrial warehouses, which primarily serve as urban distribution centers, and larger logistics, or big box, warehouses. The majority of Segro's properties are located in either the Greater London area or the adjacent Thames Valley. The company derives the vast majority of its income in the form of rental income from its tenants operating out of its warehouses. Food and general manufacturing, transport and logistics, and retail companies comprise most of Segro's customers. The company's other major markets include the European cities of Warsaw, Dusseldorf, and Paris.

How the Company Makes Money

Segro plc generates revenue primarily through leasing its industrial and logistics properties to a variety of tenants. The company's business model is centered on acquiring, developing, and managing high-quality assets that are strategically located in proximity to major transportation hubs and urban centers. Key revenue streams include rental income from long-term leases, which provide a stable and predictable cash flow. Additionally, Segro engages in property development, adding value through the construction of new facilities tailored to tenant specifications, which can further enhance rental yields and attract new clients. The company's growth is supported by significant partnerships with major logistics and retail companies, as well as its ability to leverage its expertise in property management to optimize asset performance and drive tenant satisfaction.

Segro plc (REIT) Financial Statement Overview

Summary

Income Statement

Balance Sheet

Cash Flow

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
734.00M	749.00M	669.00M	546.00M	431.70M	432.50M
	Gross Profit
600.00M	588.00M	451.00M	401.00M	323.80M	305.20M
	EBIT
591.00M	-180.00M	197.00M	265.00M	303.20M	269.30M
	EBITDA
545.00M	-134.00M	-1.88B	270.00M	280.00M	272.70M
	Net Income Common Stockholders
-10.00M	-253.00M	-1.93B	4.06B	1.43B	857.90M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
376.00M	376.00M	162.00M	45.00M	89.00M	132.50M
	Total Assets
17.31B	17.31B	17.35B	17.78B	12.67B	10.08B
	Total Debt
5.42B	5.42B	4.96B	3.48B	2.50B	2.02B
	Net Debt
5.05B	5.11B	4.80B	3.44B	2.41B	1.89B
	Total Liabilities
6.40B	6.40B	5.97B	4.35B	3.00B	2.41B
	Stockholders Equity
10.90B	10.90B	11.37B	13.44B	9.66B	7.68B
Cash Flow		Free Cash Flow
354.00M	402.00M	204.00M	304.00M	194.40M	207.60M
	Operating Cash Flow
384.00M	431.00M	213.00M	311.00M	199.30M	210.30M
	Investing Cash Flow
-196.00M	-526.00M	-1.25B	-1.28B	-1.11B	-227.80M
	Financing Cash Flow
255.00M	309.00M	1.12B	930.00M	862.50M	84.00M

Segro plc (REIT) Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 693.80
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:SGRO, the sentiment is Negative. The current price of 693.8 is below the 20-day moving average (MA) of 702.57, below the 50-day MA of 702.79, and below the 200-day MA of 808.73, indicating a bearish trend. The MACD of -5.33 indicates Positive momentum. The RSI at 45.92 is Neutral, neither overbought nor oversold. The STOCH value of 65.52 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:SGRO.

Segro plc (REIT) Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SGRO	71 Outperform	£9.46B	15.65	5.18%	4.03%	-9.88%	―
Sector *	61 Neutral	$4.76B	18.86	-2.89%	8.05%	6.45%	-20.33%
BLND	61 Neutral	£3.53B	19.43	3.17%	6.44%	-30.83%	―
LAND	54 Neutral	£4.18B	39.59	1.61%	7.10%	-1.73%	―

Segro plc (REIT) Corporate Events

SEGRO’s SELP Completes €470 Million Acquisition of Logistics Assets

SEGRO, acting as a venture adviser to the SEGRO European Logistics Partnership (SELP), has completed the acquisition of six logistics assets from Titanium Ruth Holdco Limited, valued at €470 million. These assets, located in key logistics hubs in the Netherlands and Germany, cover 370,000 sq m of fully-leased space, generating €24 million in rent with a net initial yield of 5.0%. This acquisition strengthens SELP’s position in the European logistics market, enhancing its portfolio and revenue potential.

SEGRO plc Grants LTIP Share Awards to Key Executives

SEGRO plc announced the granting of conditional awards over shares under its 2018 Long Term Incentive Plan (LTIP) to key directors and persons discharging managerial responsibilities. This move is part of their strategy to incentivize leadership, with significant share awards given to both the CEO and CFO, potentially impacting their operational focus and aligning management interests with long-term shareholder value.

SEGRO Reports Robust Growth in 2024, Eyes Future Expansion

SEGRO plc reported a 5.5% growth in earnings and dividends per share for 2024, driven by strong leasing activity and asset management, including a record 43% rental uplift from UK rent reviews. The company achieved a £91 million new headline rent and increased its net rental income by 7%, with a focus on data centre development, securing a significant pipeline in European core Availability Zones. SEGRO also improved its financial position with reduced debt costs, enhancing its capacity for future growth.

BlackRock Adjusts Holdings in SEGRO plc

BlackRock, Inc., a major shareholder in SEGRO plc, has recently adjusted its holdings, crossing the threshold of 10.5% of voting rights in the company. This change in ownership percentage reflects a slight reduction in BlackRock’s position, potentially impacting investor perceptions and stakeholder dynamics within SEGRO.

BlackRock Adjusts Holdings in SEGRO plc

SEGRO plc, a UK-based real estate investment trust, announced changes in major holdings due to BlackRock Inc.’s acquisition or disposal of voting rights. BlackRock’s voting rights in SEGRO have decreased from 10.92% to 10.57%, reflecting a slight reduction in their holdings. This adjustment may influence SEGRO’s shareholder dynamics and suggest possible recalibrations in BlackRock’s investment strategy.

SEGRO Expands European Logistics Portfolio with €470 Million Acquisition

SEGRO, acting as venture adviser to the SEGRO European Logistics Partnership (SELP) joint venture, announced the purchase of six logistics assets from Titanium Ruth Holdco Limited, valued at €470 million. These assets, located in key logistics hubs in the Netherlands and Germany, offer significant rental growth potential and align with SELP’s existing portfolio, enhancing returns through increased scale. The completion of this transaction, subject to EU anti-trust clearance, bolsters SEGRO’s position in the European logistics market.

SEGRO’s SELP Joint Venture Prices €500 Million Bond

SEGRO, acting as a venture adviser to the SEGRO European Logistics Partnership (SELP) joint venture, has announced the pricing of a €500 million senior unsecured bond issue. The bonds, carrying a 3.75% annual coupon and a seven-year term, were highly in demand, being more than eight times oversubscribed. The proceeds from this issuance will be used primarily to refinance existing debt, potentially enhancing SELP’s financial structure and market position as a leading Continental European logistics platform. This strategic financial move underscores SELP’s growth trajectory, with a portfolio valued at €6.7 billion and generating substantial annual rent from 5.8 million square meters of lettable area.

SEGRO plc Announces Total Voting Rights Update

SEGRO plc announced that its total issued ordinary share capital consists of 1,352,862,607 shares, each with one voting right, as of 31 December 2024. This information is crucial for shareholders to calculate their interest in the company and comply with the Financial Conduct Authority’s Disclosure Guidance and Transparency Rules.

SEGRO Director Acquires Additional Shares

SEGRO plc announced a share purchase transaction involving its Non-Executive Director, Marcus Sperber, who acquired 7,240 ordinary shares at a price of £6.905596 per share, resulting in a total investment of £49,996.52. The transaction took place on the London Stock Exchange and reflects a commitment to aligning leadership interests with shareholder value, potentially impacting investor perception positively.