tiprankstipranks
Trending News
More News >
Segro plc (REIT) (GB:SGRO)
LSE:SGRO
Advertisement

Segro plc (REIT) (SGRO) AI Stock Analysis

Compare
136 Followers

Top Page

GB:SGRO

Segro plc (REIT)

(LSE:SGRO)

Rating:68Neutral
Price Target:
703.00p
▲(8.59%Upside)
Segro plc's stock score is bolstered by solid financial performance and positive corporate events, including strategic expansions and leadership changes. The valuation is appealing with a reasonable P/E ratio and high dividend yield. However, technical analysis presents bearish signals, indicating potential caution in the short term.
Positive Factors
Financial Stability
The balance sheet is well positioned with £2.2bn of cash and undrawn debt available, and an LTV of 29%.
Rental Income Growth
SEGRO continues to capture reversion, with rental uplift in the quarter on review and renewal some 25% ahead of previous rents.
Negative Factors
Market Performance
Although the imminent threat of tariffs has receded, it nevertheless remains in some form, and combined with the general softening in the occupier markets, it is unlikely that SEGRO shares will outperform.
Pre-letting Activity
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) (SGRO) vs. iShares MSCI United Kingdom ETF (EWC)

Segro plc (REIT) Business Overview & Revenue Model

Company DescriptionSEGRO 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 MoneySEGRO plc generates revenue primarily through rental income from its portfolio of industrial properties. The company's key revenue streams include long-term lease agreements with tenants in the logistics, retail, and manufacturing sectors. Rental income provides stable, recurring revenue, while the company also benefits from property development activities, where it constructs new facilities for existing and new clients. SEGRO's strategic location of properties near major transport hubs enhances its attractiveness to tenants, further securing its income. Additionally, the company may engage in asset disposals as part of its portfolio management strategy, which can contribute to its earnings. Strategic partnerships and joint ventures also play a role in expanding its operational footprint and revenue opportunities.

Segro plc (REIT) Earnings Call Summary

Earnings Call Date:Jul 31, 2025
(Q2-2025)
|
% Change Since: 0.43%|
Next Earnings Date:Feb 13, 2026
Earnings Call Sentiment Neutral
The earnings call reflects a balanced outlook. While there are strong performances in the existing portfolio and promising developments in data centers, there are notable challenges in the pre-let markets and geopolitical uncertainties impacting growth prospects.
Q2-2025 Updates
Positive Updates
Strong Portfolio Performance
The existing portfolio has shown a 7.8% growth in like-for-like net rental income, which has driven a 6.5% increase in earnings per share.
Dividend Growth
SEGRO has delivered a 6.5% increase in earnings and dividends per share. An interim dividend of 9.7p is recommended, continuing a 12-year track record of annual dividend growth.
Data Center Expansion
Progress in building out a data center platform, including plans for a 2.3 gigawatt land-enabled power bank and a joint venture to develop their first fully fitted data center.
Asset Value Stabilization
The portfolio value increased to GBP 18.5 billion, with a small increase in like-for-like valuation, indicating stabilization in asset values.
Strong Balance Sheet
Loan to value stands at 31%, with almost GBP 2 billion available in liquidity, and a stable A- credit rating.
Negative Updates
Slower Pre-Let Markets
European pre-let markets have been significantly slower over the past 18 months due to macro and geopolitical uncertainty, impacting development prospects.
Reduced CapEx Guidance
CapEx guidance for FY '25 has been reduced to GBP 400 million due to lower-than-expected pre-let signings.
Geopolitical and Macro Uncertainty
The macro environment and geopolitical issues have delayed big investment decisions and affected occupier decision-making.
Investment Activity
Investment activity resulted in a net loss of GBP 3 million of income due to higher-than-normal disposals in 2024.
Company Guidance
During the SEGRO Half Year 2025 Results Call, CEO David Sleath highlighted key performance metrics, emphasizing a 7.8% growth in like-for-like net rental income which propelled a 6.5% increase in earnings per share. The portfolio's value grew to GBP 18.5 billion, with a NAV per share uptick to 910p, marking the first increase since 2022. SEGRO maintained a robust balance sheet with a loan-to-value ratio of 31%, providing ample capacity for future growth. Despite slower European pre-let markets due to macro uncertainties, development prospects are improving, with a near-term pipeline showing promise. An interim dividend of 9.7p was declared, consistent with past growth trends. The company is also advancing its data center platform, working on a 2.3 gigawatt power bank, and has initiated a joint venture for a fully fitted data center, underscoring a strategic focus on sustainable and diversified growth.

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
65
Positive
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
70
Positive
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
75
Positive
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue675.00M749.00M669.00M546.00M431.70M
Gross Profit531.00M588.00M451.00M401.00M323.80M
EBITDA763.00M-134.00M-1.88B270.00M280.00M
Net Income594.00M-253.00M-1.93B4.06B1.43B
Balance Sheet
Total Assets17.57B17.31B17.35B17.78B12.67B
Cash, Cash Equivalents and Short-Term Investments292.00M376.00M162.00M45.00M89.00M
Total Debt4.68B5.42B4.96B3.48B2.50B
Total Liabilities5.53B6.40B5.97B4.35B3.00B
Stockholders Equity12.05B10.90B11.37B13.44B9.66B
Cash Flow
Free Cash Flow306.00M402.00M204.00M304.00M194.40M
Operating Cash Flow330.00M431.00M213.00M311.00M199.30M
Investing Cash Flow-369.00M-526.00M-1.25B-1.28B-1.11B
Financing Cash Flow26.00M309.00M1.12B930.00M862.50M

Segro plc (REIT) Technical Analysis

Technical Analysis Sentiment
Negative
Last Price647.40
Price Trends
50DMA
675.12
Negative
100DMA
673.62
Negative
200DMA
693.80
Negative
Market Momentum
MACD
-7.52
Positive
RSI
38.40
Neutral
STOCH
18.76
Positive
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 647.4 is below the 20-day moving average (MA) of 658.37, below the 50-day MA of 675.12, and below the 200-day MA of 693.80, indicating a bearish trend. The MACD of -7.52 indicates Positive momentum. The RSI at 38.40 is Neutral, neither overbought nor oversold. The STOCH value of 18.76 is Positive, 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

Overall Rating
UnderperformOutperform
Sector (58)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
£3.51B7.1811.28%5.48%38.97%417.46%
75
Outperform
£4.45B11.208.66%6.28%122.74%60.58%
73
Outperform
$725.54M40.632.39%5.58%4.41%
69
Neutral
£4.29B10.836.13%5.75%0.97%
68
Neutral
£8.76B14.115.20%4.55%-4.77%
66
Neutral
£3.50B9.956.14%6.51%-20.83%
58
Neutral
C$1.26B-1.85-8.19%5.19%10.39%-20.06%
* Real Estate Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:SGRO
Segro plc (REIT)
647.40
-215.41
-24.97%
GB:BLND
British Land Company plc
349.60
-23.05
-6.19%
GB:LAND
Land Securities Group plc REIT
577.50
-0.58
-0.10%
GB:LMP
LondonMetric Property
191.00
5.12
2.75%
GB:SHED
Urban Logistics REIT plc
156.00
43.13
38.21%
GB:BBOX
Tritax Big Box REIT
141.30
-11.18
-7.33%

Segro plc (REIT) Corporate Events

Executive/Board Changes
SEGRO Director Appointed Chair Designate of Grainger plc
Neutral
Jul 31, 2025

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.

Business Operations and StrategyFinancial Disclosures
SEGRO Reports Strong H1 2025 Results and Expands Development Pipeline
Positive
Jul 31, 2025

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.

Regulatory Filings and Compliance
SEGRO plc Announces Total Voting Rights Update
Neutral
Jun 30, 2025

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.

Executive/Board ChangesBusiness Operations and Strategy
SEGRO Appoints New CFO to Drive Future Growth
Positive
Jun 12, 2025

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.

Regulatory Filings and Compliance
SEGRO Announces Total Voting Rights for Shareholders
Neutral
May 30, 2025

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.

Executive/Board ChangesBusiness Operations and Strategy
SEGRO plc Awards Shares to Directors Under Incentive Plan
Positive
May 12, 2025

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.

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.Date of analysis: Jul 31, 2025