Segro plc (REIT) (SGRO) AI Stock Analysis

• Market Cap: £9.49B
• Dividend Yield: 4.25%
• Average Volume (3M): 2.66M
• Price to Earnings (P/E): 15.3
• Beta (1Y): 1.09
• 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: -0.05
• Price to Book (P/B): 0.76
• Price to Sales (P/S): 13.59
• P/FCF Ratio: 29.97
• 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: £827.67
• Price Target Upside: 17.67% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 9
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 75 Outperform
• Price Target: 796.00p ▲(13.16% Upside)

Segro plc's overall stock score of 75 reflects a stable financial position, positive technical indicators, and attractive valuation. The company's strong earnings call and recent corporate events further bolster its outlook. While there are some risks due to macroeconomic uncertainties, the company's strategic initiatives and robust financial metrics position it well for future growth.

Positive Factors

Strong Portfolio Performance

The growth in net rental income indicates effective asset management and strong demand for Segro's properties, supporting long-term revenue stability.

Resilient Balance Sheet

A strong balance sheet with low leverage and high liquidity provides financial stability and flexibility for future investments and growth.

Data Center Joint Venture

The data center venture diversifies revenue streams and taps into growing demand for digital infrastructure, enhancing long-term growth prospects.

Negative Factors

Slow European Pre-let Market

Slower pre-let markets can delay project timelines, impacting revenue growth and increasing exposure to market volatility.

Delay in Development Projects

Delays in development projects can hinder growth potential and affect future income streams, posing risks to strategic expansion plans.

Limited Contribution from Development

Low contribution from development indicates challenges in converting projects into revenue, potentially affecting long-term profitability.

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 plc generates revenue primarily through leasing its industrial and logistics properties to a wide variety of tenants. The company's revenue model is anchored in long-term lease agreements, which provide stable, recurring rental income. Key revenue streams include base rents from tenants, as well as additional income from service charges and property management fees. Segro also benefits from property development activities, where it builds new facilities that it can lease out upon completion, often at premium rates due to the high demand for modern industrial space. Significant partnerships with major logistics and e-commerce firms enhance its occupancy rates and rental yields. The company's focus on strategic locations and high-quality developments further contributes to its profitability, as urbanization and the growth of online shopping continue to drive demand for its properties.

Segro plc (REIT) Financial Statement Overview

Summary

Segro plc shows a stable financial position with strong gross margins and a robust balance sheet. However, there is volatility in profitability and revenue, which poses potential risks.

Income Statement

Segro plc has experienced a mixed trajectory in recent years. The gross profit margin is strong at approximately 78.7% for 2024, indicating efficient cost management. However, there has been significant volatility in EBIT and net income, particularly in 2023, where both metrics were negative. Revenue has shown fluctuating growth patterns, with a notable decrease in 2024 compared to 2023. The company's ability to recover from previous losses in net income is promising, but the inconsistencies suggest potential risks in financial performance.

Balance Sheet

The balance sheet of Segro plc demonstrates a solid equity base, with an equity ratio of 68.6% in 2024, indicating a strong financial foundation. The debt-to-equity ratio is relatively moderate at 0.39, which shows a reasonable level of leverage. Return on Equity (ROE) improved significantly in 2024 after a negative performance in 2023, reflecting a return to profitability. While the balance sheet is robust, attention should be paid to the fluctuations in total liabilities and equity over time.

Cash Flow

Segro plc's cash flow statement shows positive trends, with a strong free cash flow generation in 2024 and a solid operating cash flow to net income ratio. The company has maintained a positive free cash flow, indicating its ability to generate cash after capital expenditures. Although there was a decline in free cash flow in 2024 compared to the previous year, the company has shown resilience in maintaining sufficient cash generation capabilities.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	523.50M	675.00M	749.00M	669.00M	546.00M	431.70M
Gross Profit	406.00M	531.00M	588.00M	451.00M	401.00M	323.80M
EBITDA	369.00M	763.00M	-134.00M	-1.88B	270.00M	280.00M
Net Income	497.50M	594.00M	-253.00M	-1.93B	4.06B	1.43B
Balance Sheet
Total Assets	17.81B	17.57B	17.31B	17.35B	17.78B	12.67B
Cash, Cash Equivalents and Short-Term Investments	141.00M	292.00M	376.00M	162.00M	45.00M	89.00M
Total Debt	4.96B	4.68B	5.42B	4.96B	3.48B	2.50B
Total Liabilities	5.74B	5.53B	6.40B	5.97B	4.35B	3.00B
Stockholders Equity	12.07B	12.05B	10.90B	11.37B	13.44B	9.66B
Cash Flow
Free Cash Flow	245.50M	306.00M	402.00M	204.00M	304.00M	194.40M
Operating Cash Flow	264.50M	330.00M	431.00M	213.00M	311.00M	199.30M
Investing Cash Flow	-319.00M	-369.00M	-526.00M	-1.25B	-1.28B	-1.11B
Financing Cash Flow	-426.00M	26.00M	309.00M	1.12B	930.00M	862.50M

Segro plc (REIT) Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 703.40
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 Positive. The current price of 703.4 is above the 20-day moving average (MA) of 701.72, below the 50-day MA of 703.53, and above the 200-day MA of 667.00, indicating a neutral trend. The MACD of -0.44 indicates Negative momentum. The RSI at 53.22 is Neutral, neither overbought nor oversold. The STOCH value of 73.73 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BBOX	83 Outperform	£4.03B	8.72	9.42%	5.32%	35.06%	127.62%
LMP	80 Outperform	£4.35B	12.45	7.22%	6.66%	43.70%	40.28%
SGRO	75 Outperform	£9.49B	15.33	5.20%	4.25%	-4.77%	―
BLND	75 Outperform	£3.91B	11.13	6.14%	5.85%	-20.83%	―
SHED	73 Outperform	―	―	―	―	4.41%	―
LAND	73 Outperform	£4.48B	18.07	3.85%	6.34%	10.69%	135.58%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%

Segro plc (REIT) Corporate Events

SEGRO plc Grants LTIP Awards to CFO Susanne Schroeter

SEGRO plc announced that its Remuneration Committee has approved the grant of conditional awards over shares to Susanne Schroeter, the Chief Financial Officer, under the 2018 Long Term Incentive Plan. This includes a 2025 LTIP Award, subject to performance conditions over three years, and a Recruitment LTIP Award, which will vest in two parts in 2027 and 2028. These grants are part of the company’s strategy to incentivize key executives and align their interests with those of shareholders, potentially impacting the company’s operational focus and stakeholder relations.

SEGRO Secures Pre-Let for Major German Distribution Centre

SEGRO has signed a pre-let development agreement for an 86,000 sq m distribution center in the Rhine-Ruhr region of Germany with a major international retailer. This project, expected to begin construction in Spring 2026 and complete by mid-2027, highlights SEGRO’s strategy of developing in prime locations and its commitment to sustainability. The new facility will offer modern, energy-efficient space, enhancing SEGRO’s competitive advantage and positioning it to attract sophisticated occupiers.

SEGRO plc Reports Strong Q3 2025 Performance with Robust Development Pipeline

SEGRO plc reported a robust third quarter for 2025, driven by improved occupier sentiment and a strong development pipeline. The company signed £22 million in new rent during the quarter, contributing to a total of £53 million for the year to date. SEGRO’s development program saw its most productive quarter since early 2024, with £7 million in pre-letting deals and a healthy pipeline of projects. The company is progressing with data center developments in the UK and Europe, which are expected to double its rent roll and support future earnings growth. SEGRO’s financial position remains strong, with a disciplined approach to capital allocation and a new €360 million loan facility to support further growth opportunities.

SEGRO plc Announces Total Voting Rights Update

SEGRO plc announced its total issued ordinary share capital as of 30 September 2025, comprising 1,353,495,326 ordinary shares, each with one voting right. This information is crucial for shareholders to determine their notification obligations under the Financial Conduct Authority’s Disclosure Guidance and Transparency Rules, impacting how they manage their interests in the company.