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Segro plc (REIT)
(LSE:SGRO)
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Rating:71Outperform
Price Target:
953.00 p
▲(29.20% Upside)
Action:Reiterated
Date: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
Attractive development yields
SEGRO’s stated development yields (c.7–8% total cost; >10% on new CapEx) and material 2025 development investment demonstrate an ability to generate above-market returns from in-house development. Holding completed assets converts development spend into durable rental income and NAV growth, supporting organic earnings expansion over the medium term and lowering reliance on external acquisitions.
Negative Factors
Earnings volatility / cash mismatch
Historical swings in reported profits and a recent mismatch between net income and operating/free cash flow reduce earnings quality and predictability. For a dividend‑focused REIT, volatility in accounting earnings versus cash generation complicates distribution visibility and raises the risk that accounting gains may not translate into sustainable cash returns.
Read all positive and negative factors
Positive Factors
Negative Factors
Attractive development yields
SEGRO’s stated development yields (c.7–8% total cost; >10% on new CapEx) and material 2025 development investment demonstrate an ability to generate above-market returns from in-house development. Holding completed assets converts development spend into durable rental income and NAV growth, supporting organic earnings expansion over the medium term and lowering reliance on external acquisitions.
Read all positive factors
Segro plc (REIT) (SGRO) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£11.64B
Dividend Yield4.25%
Average Volume (3M)2.66M
Price to Earnings (P/E)27.7
Beta (1Y)1.32
Revenue Growth7.56%
EPS Growth-8.43%
CountryUK
Employees463
SectorReal Estate
Sector Strength53
IndustryREIT - Industrial
Share Statistics
EPS (TTM)0.31
Shares Outstanding1,354,073,400
10 Day Avg. Volume2,617,180
30 Day Avg. Volume2,655,677
Financial Highlights & Ratios
PEG Ratio-1.98
Price to Book (P/B)0.79
Price to Sales (P/S)13.42
P/FCF Ratio26.55
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
£897.50Price Target Upside21.68% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering7
EPS Forecast (FY)0.38
Revenue Forecast (FY)£707.33M
Segro plc (REIT) Business Overview & Revenue Model
Company Description
Operating as a prominent UK Real Estate Investment Trust (REIT), SEGRO excels in the acquisition, stewardship, and construction of contemporary warehouse and light industrial facilities. The company oversees an expansive portfolio, valued at a sub...
How the Company Makes Money
SEGRO makes money primarily by generating rental income from leasing its logistics and industrial properties to occupiers on commercial lease terms. A core earnings driver is contracted rent collected from tenants across its portfolio; this is sup...
Segro plc (REIT) Earnings Call Summary
Earnings Call Date:Feb 20, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Jul 30, 2026
Earnings Call Sentiment Positive
The call presented a broadly positive operational and financial story: record leasing (GBP 99m), strong like‑for‑like rental growth (6%), improved EPS and dividends (~6%), better valuations, high occupancy and a robust data center land/power platform that materially expands growth optionality. Challenges flagged were primarily execution and timing (H1 pre‑let weakness), subdued investment markets affecting disposals, regionally uneven rental/value trends (notably in parts of Eastern Europe and some London submarkets), and the higher complexity/capital intensity of fully fitted data centers which will require JV/project financing and active capital recycling. Overall, the positives around leasing momentum, disciplined balance sheet, development yield targets and the strategic data center pipeline outweigh the near‑term challenges and execution risks.Positive Updates
Record New Headline Rent
Signed a record GBP 99 million of new headline rent in 2025 (including GBP 33 million of development signings), the highest in the company's history.
Negative Updates
Slower Pre‑let Market Early in 2025 and Fewer Completions
Pre‑let activity was low in H1 2025 which reduced completions and development spend below original expectations; only GBP 29 million of headline rent delivered from completions in 2025.
Read all updates
Q4-2025 Updates
Positive
Negative
Record New Headline Rent
Signed a record GBP 99 million of new headline rent in 2025 (including GBP 33 million of development signings), the highest in the company's history.
Read all positive updates
Company Guidance
Guidance from the call emphasised a material development-led growth phase: 2026 development CapEx is guided at EUR 450–550m (including ~EUR 150m of infrastructure for logistics parks and data‑centre power upgrades), with disposals expected at or above the upper end of the long‑term 1–2% p.a. run‑rate to recycle capital. Development economics remain attractive (target development yields c.7–8% on total cost, >10% on new CapEx; 2025 average development yield was 8.2%), and SEGRO reiterated medium‑term ERV/rental growth assumptions of 2–4% for Big Box logistics and 3–6% for Urban assets. Near‑term rental upside includes GBP 152m of growth opportunity in the existing portfolio (GBP 99m reversionary potential, ~GBP 53m vacant space), an on‑site development programme representing GBP 53m of potential headline rent (47% already leased) plus a further GBP 9m of advanced pre‑lets, and a wider pipeline/landbank opportunity (GBP 62m near term + GBP 346m wider landbank), which together sit atop a current headline rent base of c. GBP 755m and a stated potential to generate c. GBP 800m of additional rent. Data‑centre ambitions were quantified (powered land >2.5GW: 0.5GW operational, a route to 1.1GW pre‑leasable in ~3 years and a further 900MW defined; Slough has an extra 0.4GW in 2029), with an expectation to bring forward 1–2 data centres p.a., increasingly via fully‑fitted JV structures (SEGRO cash equity typically c. GBP 75–100m per project, funded with project debt) and potential fully‑fitted profits up to ~3x powered‑shell outcomes; fully‑fitted schemes also have a longer income lead time (~+18–24 months vs powered shells). Balance sheet/headline financial guidance remains conservative: LTV c.31%, net debt/EBITDA 8.4x (from 8.6x), average debt maturity ~6 years, ~EUR 1.9bn undrawn facilities, and continued focus on disciplined capital allocation.Segro plc (REIT) Financial Statement Overview
Summary
Income Statement
71
Positive
Balance Sheet
74
Positive
Cash Flow
63
Positive
| 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
Positive
737.60
Price Trends
768.21
Positive
740.90
Positive
717.40
Positive
Market Momentum
30.03
Positive
65.34
Neutral
30.38
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:SGRO, the sentiment is Positive. The current price of 737.6 is below the 20-day moving average (MA) of 846.73, below the 50-day MA of 768.21, and above the 200-day MA of 717.40, indicating a bullish trend. The MACD of 30.03 indicates Positive momentum. The RSI at 65.34 is Neutral, neither overbought nor oversold. The STOCH value of 30.38 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:SGRO.
Segro plc (REIT) Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | £4.32B | 9.23 | 7.73% | 5.85% | 15.13% | 29.40% | |
73 Outperform | £4.41B | 14.70 | 5.78% | 5.30% | 36.45% | -26.38% | |
71 Outperform | £11.64B | 27.68 | 3.51% | 4.25% | 7.56% | -8.43% | |
70 Outperform | £4.43B | 14.47 | 6.29% | 6.67% | 17.12% | -23.84% | |
69 Neutral | £2.72B | 7.65 | 8.78% | 2.58% | 5.42% | 35.88% | |
68 Neutral | £4.98B | 14.67 | 5.29% | 6.34% | 7.21% | -13.23% | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% |
* Real Estate Sector Average
GB:SGRO
Segro plc (REIT)
861.60
240.77
38.78%
GB:BLND
British Land Company plc
424.80
98.12
30.04%
GB:SHC
Shaftesbury Capital
140.10
-7.04
-4.79%
GB:LAND
Land Securities Group plc REIT
675.00
139.54
26.06%
GB:LMP
LondonMetric Property
188.50
8.75
4.87%
GB:BBOX
Tritax Big Box REIT
162.10
27.32
20.27%
Segro plc (REIT) Corporate Events
Business Operations and StrategyFinancial Disclosures
SEGRO boosts Coventry logistics park with trio of major leases
Positive
Jul 15, 2026
SEGRO has secured three new leases totalling around 540,000 square feet at SEGRO Park Coventry, including build-to-suit and pre-let facilities for Volvo Group UK and DIRKS Consumer Logistics, and a speculative unit for GigaCloud Technology. The de...
Business Operations and StrategyM&A Transactions
SEGRO rejects Prologis bid as undervaluing logistics REIT
Neutral
Jul 9, 2026
SEGRO has rejected a proposal from Prologis, valued at 886p per share, arguing that the offer undervalues its portfolio and growth prospects and represents an opportunistic attempt to acquire the company cheaply. Chairman Andy Harrison said the bi...
Business Operations and Strategy
SEGRO and Pure DC Launch Major Paris Data Centre Joint Venture
Positive
Jul 8, 2026
SEGRO has entered a second 50:50 joint venture with Pure Data Centres Group to develop a 48MW fully fitted data centre in a key Paris Availability Zone, targeting a long-term lease with a global hyperscaler. SEGRO will contribute powered land with...
Business Operations and StrategyFinancial Disclosures
SEGRO lifts H1 rental income and expands record development and data centre pipeline
Positive
Jul 8, 2026
SEGRO reported a strong start to 2026, securing £53 million of new headline rent in the first half versus £31 million a year earlier, driven by both its existing portfolio and development activity. The group recorded a 44% uplift on UK r...
Business Operations and StrategyFinancial DisclosuresM&A Transactions
Segro Sets Out Growth Strategy and Rejects Prologis Approach as Undervalued
Positive
Jul 8, 2026
Segro has outlined an ambitious income and value growth strategy, highlighting a substantial industrial and logistics development pipeline and a powerful data centre platform backed by a 3.0GVA European power bank. Management projects more than &#...
Business Operations and StrategyPrivate Placements and Financing
SEGRO Sets Up £3 Billion UK Logistics Joint Venture to Expand Big-Box Park Portfolio
Positive
Jul 1, 2026
SEGRO has agreed heads of terms for a 50:50 logistics joint venture with a major international institutional investor to develop and operate three big-box parks in Radlett, Coventry and Northampton. The £3 billion venture will initially acqui...
Regulatory Filings and Compliance
Segro Confirms Total Voting Rights Following Share Capital Update
Neutral
Jun 30, 2026
Segro plc has reported that as of 30 June 2026 its issued ordinary share capital consists of 1,354,073,367 shares, each carrying one voting right, with no shares held in treasury. This disclosure clarifies the total number of voting rights for inv...
Business Operations and StrategyPrivate Placements and Financing
SEGRO Expands Share Capital with Admission of Additional Ordinary Shares
Neutral
Jun 30, 2026
SEGRO plc has increased its share capital with the issuance and admission to trading of 212,436 new ordinary shares of 10 pence each on the London Stock Exchange’s Main Market. Following this issuance, conducted between 29 May and 30 June 20...
Business Operations and StrategyM&A Transactions
SEGRO Board Rejects Prologis Proposal, Reasserts Standalone Growth Strategy
Neutral
Jun 30, 2026
SEGRO’s board has firmly rejected a possible takeover proposal from U.S. logistics real estate group Prologis, arguing the offer significantly undervalues the UK REIT’s prime urban European portfolio and future growth prospects. The co...
Business Operations and StrategyM&A Transactions
SEGRO rejects unsolicited Prologis approach as undervalued and opportunistic
Neutral
Jun 24, 2026
SEGRO has revealed that it received an unsolicited all-share proposal from U.S. logistics REIT Prologis, offering 0.084 Prologis shares per SEGRO share, valuing the approach at about 925 pence per share based on recent market prices. The board una...
Business Operations and StrategyPrivate Placements and Financing
SELP Joint Venture Raises €650 Million in Seven-Year Bond to Boost European Logistics Platform
Positive
Jun 23, 2026
SEGRO, through its role as parent of SELP Management Limited, underlines its strength in European logistics real estate via the SEGRO European Logistics Partnership, a 50:50 joint venture with PSP Investments that has grown since 2013 into a ̈́...
Business Operations and StrategyExecutive/Board ChangesRegulatory Filings and Compliance
SEGRO Directors Exercise and Receive New Options Under 2023–2026 Sharesave Plans
Neutral
Jun 2, 2026
SEGRO has reported director dealings under its Savings-Related Share Option Plan, with Chief Executive David Sleath exercising options from the 2023 Sharesave offer at £5.808 per share, acquiring 3,099 ordinary shares as the plan matured on 1...
Regulatory Filings and Compliance
Segro Confirms Total Voting Rights After Share Capital Update
Neutral
May 29, 2026
Segro plc has confirmed that its total issued ordinary share capital stands at 1,353,927,858 shares, each carrying one voting right and with no shares held in treasury. This clarification of total voting rights guides investors in calculating whet...
Business Operations and StrategyDelistings and Listing Changes
Segro to List 70,000 New Shares for Long-Term Incentive Plan on LSE
Neutral
May 26, 2026
Segro plc has applied to the London Stock Exchange for the admission to trading of 70,000 new ordinary shares of 10 pence each on the main market. The shares are being issued under the company’s Long Term Incentive Plan, with admission expec...
Business Operations and StrategyPrivate Placements and Financing
Segro Issues New Shares to Fund Employee Incentive Plans
Neutral
May 21, 2026
Segro plc has issued new ordinary shares to support its employee incentive arrangements, modestly increasing its overall share capital. The company’s stock remains fully fungible, with the additional equity admitted to trading on the London ...
Business Operations and StrategyExecutive/Board Changes
SEGRO grants CEO David Sleath shares under employee incentive plan
Neutral
May 14, 2026
SEGRO has granted Chief Executive David Sleath 508 ordinary shares worth £3,600 under its HMRC-approved Share Incentive Plan, which is available to all eligible employees. The award, based on an average share price of 708.04 pence, underscore...
Business Operations and StrategyExecutive/Board Changes
SEGRO Grants New Deferred Share Awards to Top Executives
Neutral
Apr 30, 2026
SEGRO plc has granted new deferred share bonus plan awards to senior management, linking compensation more closely to the company’s share performance. Chief executive David Sleath received a provisional allocation of 85,994 ordinary shares a...
Business Operations and StrategyExecutive/Board ChangesStock BuybackDividendsShareholder Meetings
Segro shareholders back all AGM resolutions, approve dividend and board mandates
Positive
Apr 23, 2026
Segro plc reported that all resolutions at its Annual General Meeting were approved by shareholders following polls on each item, including the receipt of financial statements, a final dividend of 21.4 pence per share and the directors’ remu...
Business Operations and StrategyFinancial Disclosures
SEGRO Delivers Strong Q1 Trading and Accelerates Data Centre Strategy
Positive
Apr 23, 2026
SEGRO reported a robust start to 2026, with £23 million of new headline rent contracted in the first quarter, strong customer retention at 83 per cent and portfolio occupancy at 94.8 per cent. The group achieved notable rent uplifts on UK lea...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.