Segro plc (REIT) (SGRO) AI Stock Analysis

• Market Cap: £8.59B
• Dividend Yield: 4.66%
• Average Volume (3M): 2.45M
• Price to Earnings (P/E): 13.8
• Beta (1Y): 1.19
• Revenue Growth: -4.77%
• EPS Growth: N/A
• Country: UK
• Employees: 466
• Sector: Real Estate
• Sector Strength: 48
• Industry: REIT - Industrial
• EPS (TTM): 0.18
• Shares Outstanding: 1,353,491,100
• 10 Day Avg. Volume: 1,980,960
• 30 Day Avg. Volume: 2,448,044
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: £738.33
• Price Target Upside: 15.08% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7

• Rating: 70 Outperform
• Price Target: 693.00p ▲(8.01% Upside)

Segro plc's overall stock score reflects a strong financial foundation and promising earnings outlook, tempered by technical weaknesses and macroeconomic uncertainties. The company's attractive valuation and strategic initiatives in data centers and development are key strengths.

Positive Factors

Joint Ventures

During the quarter, the Company announced a 1bn JV with Pure DC to develop its first fully-fitted data centre.

Rental Income

SEGRO continues to capture reversion, with rental uplift in the quarter on review and renewal some 25% ahead of previous rents.

Negative Factors

Occupier Market

The occupier market has slowed with take-up back to pre-pandemic levels and supply constant, leading to a fall in net absorption.

Pre-letting Rate

The rate of pre-letting has slowed to 53% from a high of 75%, indicating a decrease in pre-committed rental agreements.

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 generates revenue primarily through rental income from its extensive portfolio of properties leased to various tenants. The company employs a long-term leasing strategy, often entering into agreements that provide stable cash flows. Key revenue streams include rents from logistics and industrial properties, which benefit from the increasing demand for last-mile delivery solutions and e-commerce growth. Additionally, Segro engages in property development, creating new facilities that can be leased out once completed, thereby enhancing its income potential. Strategic partnerships and joint ventures with other property developers and institutional investors further contribute to its earnings, allowing Segro to leverage additional capital for development projects.

Segro plc (REIT) Financial Statement Overview

Summary

Segro plc presents a mixed but stable financial position. Strong gross margins and a solid balance sheet with moderate leverage are offset by volatility in profitability and revenue fluctuations. The cash flow statement reflects consistent cash generation, reinforcing financial stability despite some inconsistencies.

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

Segro plc (REIT) Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 641.60
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 Neutral. The current price of 641.6 is above the 20-day moving average (MA) of 637.08, below the 50-day MA of 654.40, and below the 200-day MA of 673.45, indicating a neutral trend. The MACD of -4.62 indicates Negative momentum. The RSI at 49.96 is Neutral, neither overbought nor oversold. The STOCH value of 33.88 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	78 Outperform	£4.38B	11.02	8.66%	6.27%	122.74%	60.58%
BBOX	74 Outperform	£3.42B	8.05	9.42%	5.63%	35.06%	127.62%
SHED	73 Outperform		―		―	4.41%	―
SGRO	70 Outperform	£8.59B	13.84	5.20%	4.66%	-4.77%	―
BLND	69 Neutral	£3.40B	9.66	6.14%	6.57%	-20.83%	―
LAND	66 Neutral	£4.22B	10.66	6.13%	5.76%	0.97%	―
Sector *	63 Neutral	C$2.01B	5.92	-0.84%	5.17%	1.83%	-19.11%

Segro plc (REIT) Corporate Events

SEGRO Director Appointed Chair Designate of Grainger plc

SEGRO plc, a real estate investment trust, has announced a significant change in its board composition. Simon Fraser, an Independent Non-Executive Director at SEGRO, has been appointed as Non-Executive Director and Chair Designate of Grainger plc, effective from October 1, 2025. This appointment is set to enhance Fraser’s leadership role in the industry, as he will assume the position of Chair of the Grainger plc Board following their 2026 Annual General Meeting.

The most recent analyst rating on (GB:SGRO) stock is a Buy with a £8.85 price target. To see the full list of analyst forecasts on Segro plc (REIT) stock, see the GB:SGRO Stock Forecast page.

SEGRO Reports Strong H1 2025 Results and Expands Development Pipeline

SEGRO plc reported strong financial performance for the first half of 2025, with a 7.8% increase in like-for-like net rental income and an 11% rise in adjusted pre-tax profit. The company is experiencing growth in its development pipeline, particularly in urban spaces, and has made significant progress in its data center platform, including a joint venture to develop a fully fitted data center. The company’s strategic positioning in supply-constrained European markets supports its continued growth in earnings and dividends, with a focus on leveraging its existing portfolio and development opportunities.

The most recent analyst rating on (GB:SGRO) stock is a Buy with a £950.00 price target. To see the full list of analyst forecasts on Segro plc (REIT) stock, see the GB:SGRO Stock Forecast page.

SEGRO plc Announces Total Voting Rights Update

SEGRO plc announced its total issued ordinary share capital as of 30 June 2025, which comprises 1,353,491,143 ordinary shares with one voting right per share. This information is crucial for shareholders to determine their notification requirements under the Financial Conduct Authority’s Disclosure Guidance and Transparency Rules, impacting how they manage their interests in the company.

The most recent analyst rating on (GB:SGRO) stock is a Buy with a £950.00 price target. To see the full list of analyst forecasts on Segro plc (REIT) stock, see the GB:SGRO Stock Forecast page.

SEGRO Appoints New CFO to Drive Future Growth

SEGRO plc has announced the appointment of Susanne Schroeter-Crossan as its new Chief Financial Officer, effective December 1, 2025. Schroeter-Crossan brings extensive financial and international experience from her roles at sennder Technologies GmbH, LEG Immobilien, and major investment banks. Her expertise in real estate, logistics, and online retailing is expected to support SEGRO’s growth in the industrial, logistics, and data center sectors. The appointment is seen as a strategic move to leverage her skills for the company’s future expansion and to strengthen its market-leading position.

The most recent analyst rating on (GB:SGRO) stock is a Buy with a £1045.00 price target. To see the full list of analyst forecasts on Segro plc (REIT) stock, see the GB:SGRO Stock Forecast page.

SEGRO Announces Total Voting Rights for Shareholders

SEGRO plc announced its total issued ordinary share capital as of May 30, 2025, which consists of 1,353,488,991 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.

The most recent analyst rating on (GB:SGRO) stock is a Buy with a £1045.00 price target. To see the full list of analyst forecasts on Segro plc (REIT) stock, see the GB:SGRO Stock Forecast page.

SEGRO plc Awards Shares to Directors Under Incentive Plan

SEGRO plc announced that its directors, David Sleath and Soumen Das, have been awarded free shares under the company’s Share Incentive Plan (SIP), which is an HMRC-approved share plan for eligible employees. This move reflects SEGRO’s commitment to aligning the interests of its leadership with those of its shareholders, potentially enhancing stakeholder confidence and reinforcing the company’s market position.

The most recent analyst rating on (GB:SGRO) stock is a Buy with a £1045.00 price target. To see the full list of analyst forecasts on Segro plc (REIT) stock, see the GB:SGRO Stock Forecast page.