Segro plc (REIT) (SGRO) AI Stock Analysis

• Market Cap: £9.38B
• Dividend Yield: 4.25%
• Average Volume (3M): 2.66M
• Price to Earnings (P/E): 17.7
• Beta (1Y): 1.18
• Revenue Growth: -4.77%
• EPS Growth: N/A
• Country: UK
• Employees: 466
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Industrial
• EPS (TTM): 0.18
• Shares Outstanding: 1,353,495,400
• 10 Day Avg. Volume: 2,617,180
• 30 Day Avg. Volume: 2,655,677
• PEG Ratio: -1.99
• Price to Book (P/B): 0.79
• Price to Sales (P/S): 13.42
• P/FCF Ratio: 26.55
• 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: £889.67
• Price Target Upside: 28.23% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 9
• EPS Forecast (FY): 0.39
• Revenue Forecast (FY): £757.47M

• Rating: 71 Outperform
• Price Target: 768.00 p ▲(10.69% Upside)
• Action: Reiterated Date: 03/03/26
• Date: Action: Reiterated 03/03/26

The score is driven primarily by improving financial performance (revenue/profit rebound and manageable leverage) and supportive technical trend signals. This is partially offset by valuation that is only moderate for a REIT and by financial-quality concerns (earnings volatility and recent cash-vs-earnings mismatch), while the latest earnings call adds support through constructive guidance and a credible growth pipeline with execution risks.

Positive Factors

High occupancy and record leasing momentum

Record new headline rent alongside high occupancy supports durable rental income growth and lowers vacancy risk. Strong retention (82%) and reversion uplifts (GBP 37m) indicate recurring upside from asset management, underpinning stable cash rents over the medium term.

Attractive development economics and active pipeline

Targeted development yields of ~7–8% and a sizeable on-site and wider landbank provide a structural growth engine. Repeatable development with >10% yields on new CapEx supports margin expansion and organic RENT growth as projects complete and are leased.

Conservative balance sheet and ample liquidity

A moderate LTV, long average debt maturity and substantial undrawn facilities support funding flexibility for development and capital recycling. This balance-sheet conservatism reduces refinancing risk and preserves capacity to execute multi-year projects.

Negative Factors

Earnings volatility and cash-vs-earnings mismatch

Reported profits have swung materially across recent years and do not consistently track operating or free cash flow. This weakens the reliability of accounting earnings for dividend coverage and planning, increasing the risk that earnings volatility could pressure distributions in downturns.

Data-center execution complexity and capital intensity

Moving into fully fitted data centres raises project scale, specialist execution risk, and longer income lead times (+18–24 months). Reliance on JVs and project finance increases structural complexity and can constrain returns or extend capital recovery periods if delivery or leasing lags.

Reliance on disposals amid subdued investment markets

SEGRO plans to recycle capital via disposals to fund higher-return development; weak investment markets reduce disposal throughput and timing certainty. Dependence on asset sales creates execution risk and could delay growth or force suboptimal sale pricing in challenging markets.

Segro plc (REIT) Business Overview & Revenue Model

Company Description

SEGRO is a UK Real Estate Investment Trust (REIT), and a leading owner, manager and developer of modern warehouses and light industrial property. It owns or manages 8.1 million square metres of space (88 million square feet) valued at £13.3 billion serving customers from a wide range of industry sectors. Its properties are located in and around major cities and at key transportation hubs in the UK and in seven other European countries.

How the Company Makes Money

SEGRO makes money primarily by leasing its industrial and logistics properties to tenants under rental contracts, generating recurring rental income that forms the core of its earnings. Revenue is supported by (1) rental growth mechanisms such as periodic rent reviews, indexation where applicable, and re-letting space at market rents when leases expire; (2) development activity, where SEGRO develops new warehouses or refurbishes/repurposes assets and then earns incremental rental income once properties are completed and leased (and may also realize gains if properties are sold); and (3) property valuation movements, where increases in the fair value of its investment portfolio can contribute to reported profits, though these are typically non-cash and can be volatile. As a REIT, SEGRO typically finances acquisitions and development through a mix of retained cash flow, debt, and equity, and returns cash to shareholders via dividends while meeting REIT distribution requirements. Specific significant partnerships contributing to earnings: null.

Segro plc (REIT) Financial Statement Overview

Summary

Strong rebound in 2024–2025 with solid revenue growth and improved profitability, supported by moderate leverage and substantial equity. Offsetting this, reported earnings have been volatile across prior years and 2025 shows a notable mismatch between net income and operating/free cash flow, reducing earnings quality confidence.

Income Statement

Revenue growth is solid in 2025 (up ~38.7% year over year), following a flat 2024 and growth in 2023, which points to a good top-line trajectory overall. Profitability looks strong in the last two years (2024–2025 show high margins and positive earnings), but results have been volatile across the cycle, with sizable losses in 2022–2023 and unusually elevated profits in 2020–2021—suggesting earnings are meaningfully influenced by valuation and other non-recurring items typical for REIT reporting. Overall: strong recent rebound, but with material historical swings that reduce earnings quality and predictability.

Balance Sheet

Leverage appears reasonable for an industrial REIT, with debt-to-equity generally in a moderate range (~0.26–0.50) and improving from 2023 to 2025. Equity remains substantial relative to total assets, supporting balance-sheet resilience. However, returns on equity have been inconsistent (negative in 2022–2023, modestly positive in 2024–2025), indicating profitability and asset value changes have not been stable year-to-year. Overall: solid capitalization and manageable leverage, tempered by uneven returns.

Cash Flow

Operating cash flow and free cash flow are consistently positive, and 2025 shows strong free-cash-flow growth (~49.5%) after a softer 2024. Cash generation also held up well in 2022–2023 despite reported net losses, indicating underlying cash earnings were steadier than accounting profits. A key weakness is that cash flow does not consistently track reported earnings (for example, 2025 shows strong net income but comparatively lower operating/free cash flow), which can create uncertainty around earnings quality and dividend capacity in weaker markets. Overall: healthy positive cash generation, but with notable cash-vs-earnings mismatch in the most recent year.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	726.00M	675.00M	749.00M	669.00M	546.00M
Gross Profit	538.00M	531.00M	588.00M	451.00M	401.00M
EBITDA	670.00M	763.00M	-134.00M	-1.88B	270.00M
Net Income	551.00M	594.00M	-253.00M	-1.93B	4.06B
Balance Sheet
Total Assets	18.18B	17.57B	17.31B	17.35B	17.78B
Cash, Cash Equivalents and Short-Term Investments	111.00M	292.00M	376.00M	162.00M	45.00M
Total Debt	5.03B	4.68B	5.42B	4.96B	3.48B
Total Liabilities	5.91B	5.53B	6.40B	5.97B	4.35B
Stockholders Equity	12.27B	12.05B	10.90B	11.37B	13.44B
Cash Flow
Free Cash Flow	367.00M	306.00M	402.00M	204.00M	304.00M
Operating Cash Flow	396.00M	330.00M	431.00M	213.00M	311.00M
Investing Cash Flow	-402.00M	-369.00M	-526.00M	-1.25B	-1.28B
Financing Cash Flow	-246.00M	26.00M	309.00M	1.12B	930.00M

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 771.41, below the 50-day MA of 764.84, and below the 200-day MA of 695.21, indicating a bearish trend. The MACD of -15.83 indicates Positive momentum. The RSI at 34.54 is Neutral, neither overbought nor oversold. The STOCH value of 36.01 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
LMP	80 Outperform	£4.31B	7.70	7.16%	6.67%	43.70%	40.28%
BLND	75 Outperform	£3.53B	3.98	7.75%	5.85%	-20.83%	―
BBOX	73 Outperform	£3.98B	10.57	5.78%	5.30%	35.06%	127.62%
LAND	73 Outperform	£4.10B	11.16	3.85%	6.34%	10.69%	135.58%
SGRO	71 Outperform	£9.38B	17.68	3.51%	4.25%	-4.77%	―
SHC	68 Neutral	£2.54B	3.50	8.78%	2.58%	-0.04%	655.16%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%

Segro plc (REIT) Corporate Events

SEGRO Advances 2.5GW Data Centre Strategy With New Slough Pre-Let and London JV Approval

SEGRO has expanded its data centre footprint by agreeing to develop a powered shell facility for an existing customer on the Slough Trading Estate, Europe’s largest data centre hub. The three‑storey, 30,000 sq m building, designed to BREEAM Excellent standards, will provide 50 MVA of contracted power, allowing SEGRO to profitably utilise a compact 3.5‑acre site within its established Slough campus.

Separately, SEGRO and joint venture partner Pure Data Centres Group have secured planning committee approval for SEGRO’s first fully fitted data centre at SEGRO Premier Park in Park Royal, West London. The planned facility will have access to 70 MVA of incoming power, feature energy‑efficient closed‑loop liquid cooling, and marks a milestone in SEGRO’s strategy to execute on a 2.5 GW‑plus data centre development pipeline and strengthen its position in Europe’s digital infrastructure market.

The most recent analyst rating on (GB:SGRO) stock is a Buy with a £880.00 price target. To see the full list of analyst forecasts on Segro plc (REIT) stock, see the GB:SGRO Stock Forecast page.

SEGRO Publishes 2025 Annual Report and 2026 AGM Materials

SEGRO has published its Annual Report and Financial Statements for the year ended 31 December 2025, along with the notice and proxy form for its 2026 Annual General Meeting, and made these materials available to shareholders online. The documents have also been or will be submitted to the UK National Storage Mechanism and the French Autorité des marchés financiers for public inspection, underscoring the company’s adherence to disclosure and corporate governance requirements for its investors.

The most recent analyst rating on (GB:SGRO) stock is a Hold with a £825.00 price target. To see the full list of analyst forecasts on Segro plc (REIT) stock, see the GB:SGRO Stock Forecast page.

Segro Grants New Performance-Based LTIP Share Awards to CEO and CFO

Segro plc has granted conditional share awards under its 2018 Long Term Incentive Plan to chief executive David Sleath and chief financial officer Susanne Schroeter, based on a reference share price of 810.8 pence. The awards, representing up to 304,181 shares for Sleath and 169,585 shares for Schroeter, are nil‑cost options subject to performance conditions over a three‑year period to 31 December 2028 and are intended to align executive remuneration with long‑term shareholder value.

The LTIP grants, executed off‑market on 25 February 2026, underscore the company’s continued reliance on performance‑linked equity incentives at the top management level. By tying maximum vesting to stretching performance targets disclosed in future annual reporting, Segro reinforces its governance framework and sends a signal to investors that leadership incentives remain closely connected to the group’s medium‑term operational and financial outcomes.

The most recent analyst rating on (GB:SGRO) stock is a Buy with a £915.00 price target. To see the full list of analyst forecasts on Segro plc (REIT) stock, see the GB:SGRO Stock Forecast page.

SEGRO posts record leasing and eyes further growth from data centre and industrial pipeline

SEGRO reported a strong 2025, delivering record new contracted rent of £99 million, 6.0 per cent like-for-like net rental income growth and 6.1 per cent increases in adjusted earnings and dividends per share, supported by robust leasing, high occupancy of 94.9 per cent and an 8.2 per cent yield on largely pre-let development completions. The group highlighted substantial embedded growth potential from rent reversion, letting vacant space and a significant data centre pipeline, underpinned by disciplined capital allocation, moderate leverage and rising occupier demand that it expects will drive further rental growth and compounding earnings and dividend expansion.

SEGRO plans to exploit £152 million of additional rent in its standing portfolio and up to £355 million of new rent from its industrial, logistics and powered shell data centre developments, with targeted development yields of 7–8 per cent. Management is increasing development capex in 2026, supported by a strengthened balance sheet and one of Europe’s largest powered land banks for data centres, aiming to consolidate its position in prime European industrial and digital infrastructure markets as structural demand trends intensify.

The most recent analyst rating on (GB:SGRO) stock is a Buy with a £857.00 price target. To see the full list of analyst forecasts on Segro plc (REIT) stock, see the GB:SGRO Stock Forecast page.

SEGRO Strengthens Board with Appointment of Experienced CFO Louisa Burdett

SEGRO plc has appointed Louisa Burdett as an independent non-executive director, effective 1 May 2026, adding a seasoned financial leader to its board. Burdett, currently chief financial officer of Spirax Group plc and previously CFO at Croda International, Meggitt and Victrex, also brings substantial non-executive and audit committee experience from her tenure at RS Group, which SEGRO’s chair says will significantly strengthen the board’s financial and risk oversight.

The appointment underlines SEGRO’s focus on board refreshment and governance depth as it navigates a competitive logistics real estate market. Investors and other stakeholders are likely to view the move as bolstering financial discipline and strategic resilience, given Burdett’s track record across multiple industries and her expertise in audit and risk management.

The most recent analyst rating on (GB:SGRO) stock is a Buy with a £857.00 price target. To see the full list of analyst forecasts on Segro plc (REIT) stock, see the GB:SGRO Stock Forecast page.