Segro plc (REIT) (GB:SGRO)
LSE:SGRO
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Segro plc (REIT)
(LSE:SGRO)
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Rating:71Outperform
Price Target:
749.00 p
▲(1.55% 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
High occupancy and tenant retention
Sustained high occupancy (94.9%) and strong retention (82%) underpin predictable rental cash flows and lower vacancy risk. For a logistics REIT this durable demand reduces downside to income, supports stable dividend capacity and improves ability to fund development without stressing the balance sheet.
Negative Factors
Earnings volatility and cash-vs-earnings mismatch
Material divergence between accounting profits and cash generation weakens earnings quality and complicates forecasting of distributable income. For a REIT that pays consistent dividends, persistent cash‑vs‑earnings mismatch raises the risk of payout strain in weaker markets and hampers reliable capital planning.
Read all positive and negative factors
Positive Factors
Negative Factors
High occupancy and tenant retention
Sustained high occupancy (94.9%) and strong retention (82%) underpin predictable rental cash flows and lower vacancy risk. For a logistics REIT this durable demand reduces downside to income, supports stable dividend capacity and improves ability to fund development without stressing the balance sheet.
Read all positive factors
Segro plc (REIT) (SGRO) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£9.40B
Dividend Yield4.25%
Average Volume (3M)2.66M
Price to Earnings (P/E)17.7
Beta (1Y)1.21
Revenue Growth7.56%
EPS Growth-8.46%
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
£773.63Price Target Upside4.88% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering10
EPS Forecast (FY)0.38
Revenue Forecast (FY)£707.53M
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
Positive
737.60
Price Trends
724.93
Positive
711.90
Positive
675.22
Positive
Market Momentum
>-0.01
Negative
62.17
Neutral
77.60
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 above the 20-day moving average (MA) of 679.35, above the 50-day MA of 724.93, and above the 200-day MA of 675.22, indicating a bullish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 62.17 is Neutral, neither overbought nor oversold. The STOCH value of 77.60 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 |
|---|---|---|---|---|---|---|---|
80 Outperform | £4.42B | 7.70 | 7.16% | 6.67% | 43.70% | 40.28% | |
75 Outperform | £3.96B | 3.98 | 7.75% | 5.85% | 23.40% | 148.54% | |
73 Outperform | £4.08B | 10.57 | 5.78% | 5.30% | 36.45% | -26.38% | |
73 Outperform | £4.39B | 11.16 | 3.85% | 6.34% | 10.69% | 135.58% | |
71 Outperform | £9.40B | 17.68 | 3.51% | 4.25% | 7.56% | -8.46% | |
69 Neutral | £2.61B | 3.50 | 8.78% | 2.58% | 5.42% | 35.88% | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% |
* Real Estate Sector Average
GB:SGRO
Segro plc (REIT)
695.00
37.91
5.77%
GB:BLND
British Land Company plc
386.90
8.10
2.14%
GB:SHC
Shaftesbury Capital
133.50
0.17
0.13%
GB:LAND
Land Securities Group plc REIT
591.00
18.10
3.16%
GB:LMP
LondonMetric Property
189.40
7.15
3.92%
GB:BBOX
Tritax Big Box REIT
151.00
14.14
10.33%
Segro plc (REIT) Corporate Events
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...
Business Operations and StrategyPrivate Placements and Financing
Segro’s SELP Venture Secures Strong Demand for €500m Bond Issue
Positive
Apr 15, 2026
Segro’s SEGRO European Logistics Partnership joint venture, a 50:50 platform with PSP Investments focused on Continental European logistics, has priced a €500 million senior unsecured bond with a five-year term, carrying a 3.875 per ce...
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.