Segro plc (REIT) (GB:SGRO)
LSE:SGRO
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Segro plc (REIT)
(LSE:SGRO)
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Rating:71Outperform
Price Target:
743.00 p
▲(10.73% Upside)
Action:ReiteratedDate: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 & pipeline
SEGRO's targeted development yields (7–8% total cost, >10% on new CapEx) and sizeable on-site/wider pipeline create durable internal growth optionality. High expected development returns support organic rental roll‑forward, reduce reliance on markets for income growth and enhance long‑term cash generation if execution stays disciplined.
Negative Factors
Earnings volatility & cash mismatch
SEGRO exhibits material cyclicality between accounting profits and cash generation, with 2025 showing a notable mismatch. Persistent divergence weakens earnings quality, complicates reliable dividend planning and makes forecasting free cash flow for capex-intensive development and data‑centre projects more uncertain over medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Attractive development yields & pipeline
SEGRO's targeted development yields (7–8% total cost, >10% on new CapEx) and sizeable on-site/wider pipeline create durable internal growth optionality. High expected development returns support organic rental roll‑forward, reduce reliance on markets for income growth and enhance long‑term cash generation if execution stays disciplined.
Read all positive factors
Segro plc (REIT) (SGRO) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£9.08B
Dividend Yield4.25%
Average Volume (3M)2.66M
Price to Earnings (P/E)17.7
Beta (1Y)1.16
Revenue Growth-4.77%
EPS GrowthN/A
CountryUK
Employees466
SectorReal Estate
Sector Strength53
IndustryREIT - Industrial
Share Statistics
EPS (TTM)0.18
Shares Outstanding1,353,761,200
10 Day Avg. Volume2,617,180
30 Day Avg. Volume2,655,677
Financial Highlights & Ratios
PEG Ratio-1.99
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
£823.78Price Target Upside22.77% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering10
EPS Forecast (FY)0.39
Revenue Forecast (FY)£760.22M
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 billio...
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 ...
Segro plc (REIT) Earnings Call Summary
Earnings Call Date:Feb 20, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Jul 23, 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
Negative
671.00
Price Trends
730.49
Negative
710.50
Negative
673.01
Negative
Market Momentum
-24.63
Positive
42.15
Neutral
32.09
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 671 is below the 20-day moving average (MA) of 687.16, below the 50-day MA of 730.49, and below the 200-day MA of 673.01, indicating a bearish trend. The MACD of -24.63 indicates Positive momentum. The RSI at 42.15 is Neutral, neither overbought nor oversold. The STOCH value of 32.09 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
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | £4.36B | 7.70 | 7.16% | 6.67% | 43.70% | 40.28% | |
75 Outperform | £3.65B | 3.98 | 7.75% | 5.85% | -20.83% | ― | |
73 Outperform | £3.96B | 10.57 | 5.78% | 5.30% | 35.06% | 127.62% | |
73 Outperform | £4.21B | 11.16 | 3.85% | 6.34% | 10.69% | 135.58% | |
71 Outperform | £9.08B | 17.68 | 3.51% | 4.25% | -4.77% | ― | |
69 Neutral | £2.57B | 3.50 | 8.78% | 2.58% | -0.04% | 655.16% | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% |
* Real Estate Sector Average
GB:SGRO
Segro plc (REIT)
671.00
82.43
14.00%
GB:BLND
British Land Company plc
365.20
44.02
13.71%
GB:SHC
Shaftesbury Capital
131.70
18.84
16.69%
GB:LAND
Land Securities Group plc REIT
568.00
85.35
17.68%
GB:LMP
LondonMetric Property
186.80
26.95
16.86%
GB:BBOX
Tritax Big Box REIT
146.40
27.34
22.97%
Segro plc (REIT) Corporate Events
Executive/Board ChangesRegulatory Filings and Compliance
SEGRO CEO Receives LTIP Share Release and Sells Portion to Cover Tax
Neutral
Mar 31, 2026
SEGRO has disclosed a director shareholding update after the release of long-term incentive plan awards granted to its executive directors in 2021. Following the end of a two-year post-vesting holding period, chief executive David Sleath received ...
Other
SEGRO Non-Executive Director Increases Stake with Share Purchase
Positive
Mar 27, 2026
SEGRO plc has disclosed that non-executive director Marcus Sperber purchased 3,897 ordinary shares in the company on 27 March 2026 at a price of 641.4 pence per share on the London Stock Exchange’s Main Market. Following this transaction, Sp...
Business Operations and StrategyDelistings and Listing Changes
SEGRO Seeks Admission of 500,000 Shares for Employee Incentive Schemes
Neutral
Mar 26, 2026
SEGRO plc has applied for the admission of 500,000 new ordinary shares to trading on the main market of the London Stock Exchange. The shares are being reserved under a block admission and will be issued under the company’s Long Term Incenti...
Business Operations and Strategy
SEGRO Advances 2.5GW Data Centre Strategy With New Slough Pre-Let and London JV Approval
Positive
Mar 16, 2026
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 B...
Financial DisclosuresRegulatory Filings and ComplianceShareholder Meetings
SEGRO Publishes 2025 Annual Report and 2026 AGM Materials
Neutral
Mar 13, 2026
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 ...
Executive/Board Changes
Segro Grants New Performance-Based LTIP Share Awards to CEO and CFO
Positive
Feb 26, 2026
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 3...
Business Operations and StrategyDividendsFinancial Disclosures
SEGRO posts record leasing and eyes further growth from data centre and industrial pipeline
Positive
Feb 20, 2026
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...
Business Operations and StrategyExecutive/Board Changes
SEGRO Strengthens Board with Appointment of Experienced CFO Louisa Burdett
Positive
Feb 9, 2026
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 Inte...
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.