Segro plc (REIT) (SGRO) AI Stock Analysis

• Market Cap: £10.77B
• Dividend Yield: 4.25%
• Average Volume (3M): 2.66M
• Price to Earnings (P/E): 17.7
• Beta (1Y): 1.08
• 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: £896.71
• Price Target Upside: 11.39% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7
• EPS Forecast (FY): 0.39
• Revenue Forecast (FY): £765.67M

• Rating: 71 Outperform
• Price Target: 916.00p ▲(13.79% 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

Attractive Development Economics

SEGRO’s disciplined development programme targets mid‑single digit yields on total cost and higher on new CapEx, supporting durable ROIC improvement. High development activity (GBP 413m invested) creates organic rental growth and value uplift that can drive recurring income over multiple years.

High Occupancy and Leasing Momentum

Sustained high occupancy, strong retention and notable reversion uplifts underpin stable recurring rent and tenant diversification. These metrics indicate durable cash generation potential and asset management skill that support long‑term rental resilience across market cycles.

Disciplined Balance Sheet & Liquidity

Conservative headline metrics and significant undrawn facilities provide funding flexibility for development and JV co‑investment without immediate recourse to distressed disposals. A multi‑year average debt maturity reduces refinancing risk and supports steady capital deployment through cycles.

Negative Factors

Earnings vs Cash‑flow Mismatch

Inconsistent alignment between accounting profits and cash generation reduces earnings quality and complicates dividend visibility in weaker markets. For a REIT, persistent mismatches can force reliance on disposals or external financing to support payouts and capex, raising execution risk.

Data‑centre Execution & Capital Intensity

Moving into fully‑fitted data centres materially raises project complexity, funding needs and delivery timelines. Reliance on JVs and project finance and longer income lead times heighten execution risk and could dilute returns if build or leasing markets soften over the next 2–4 years.

Dependence on Disposals in Weak Markets

The strategy requires active capital recycling to fund higher‑return developments. If investment markets remain muted, forced or delayed disposals could reduce growth momentum, compress realized proceeds and constrain the ability to scale development or data‑centre ambitions without raising leverage.

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

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	4.95B	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: Neutral
• Last Price: 805.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 Neutral. The current price of 805 is above the 20-day moving average (MA) of 797.63, above the 50-day MA of 761.39, and above the 200-day MA of 691.72, indicating a neutral trend. The MACD of 13.79 indicates Positive momentum. The RSI at 45.88 is Neutral, neither overbought nor oversold. The STOCH value of 23.87 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	£4.91B	7.70	7.22%	6.67%	43.70%	40.28%
BLND	75 Outperform	£3.82B	3.98	6.14%	5.85%	-20.83%	―
BBOX	73 Outperform	£4.46B	10.57	9.42%	5.30%	35.06%	127.62%
LAND	73 Outperform	£4.56B	11.16	3.85%	6.34%	10.69%	135.58%
SGRO	71 Outperform	£10.77B	17.68	5.20%	4.25%	-4.77%	―
SHC	68 Neutral	£2.85B	7.76	8.66%	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 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.

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.

The most recent analyst rating on (GB:SGRO) stock is a Buy 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.