Want to see GB:SGRO full AI Analyst Report?
Top Page
Segro plc (REIT)
(LSE:SGRO)
Select Model
Select Model
Rating:69Neutral
Price Target:
1,053.00 p
▲(8.44% Upside)
Action:Downgraded
Date:08/29/26
The score is driven primarily by solid financial performance (strong 2024–2025 rebound and a reasonably capitalized balance sheet) and supportive technicals (price above key moving averages with positive momentum). Offsetting these positives, valuation is a notable headwind due to the high P/E and only modest dividend yield, while historical earnings volatility and cash-vs-earnings mismatch temper confidence in the durability of reported profitability.
Positive Factors
Strong 2025 Revenue Growth
The sharp 2025 revenue increase indicates renewed demand and stronger operating scale across SEGRO’s logistics and industrial property portfolio, supporting future rental income and development opportunities if tenant demand remains resilient.
Negative Factors
Historically Volatile Earnings
Large earnings swings across the cycle reduce confidence in reported profitability as a stable measure of operating performance. REIT valuation movements and other non-recurring items can materially affect results beyond recurring rental income.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong 2025 Revenue Growth
The sharp 2025 revenue increase indicates renewed demand and stronger operating scale across SEGRO’s logistics and industrial property portfolio, supporting future rental income and development opportunities if tenant demand remains resilient.
Read all positive factors
Segro plc (REIT) (SGRO) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£12.86B
Dividend Yield3.32%
Average Volume (3M)5.96M
Price to Earnings (P/E)44.1
Beta (1Y)1.40
Revenue Growth6.58%
EPS Growth-52.02%
CountryUK
Employees463
SectorReal Estate
Sector Strength53
IndustryREIT - Industrial
Share Statistics
EPS (TTM)0.22
Shares Outstanding1,354,107,400
10 Day Avg. Volume4,289,940
30 Day Avg. Volume5,958,555
Financial Highlights & Ratios
PEG Ratio-1.98
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
£974.14Price Target Upside0.32% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering8
EPS Forecast (FY)0.38
Revenue Forecast (FY)£702.58M
Segro plc (REIT) Business Overview & Revenue Model
Company Description
Operating as a prominent UK Real Estate Investment Trust (REIT), SEGRO excels in the acquisition, stewardship, and construction of contemporary warehouse and light industrial facilities. The company oversees an expansive portfolio, valued at a sub...
How the Company Makes Money
SEGRO makes money primarily by generating rental income from leasing its logistics and industrial properties to occupiers on commercial lease terms. A core earnings driver is contracted rent collected from tenants across its portfolio; this is sup...
Segro plc (REIT) Earnings Call Summary
Earnings Call Date:Feb 20, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Feb 12, 2027
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 | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 745.00M | 726.00M | 675.00M | 749.00M | 669.00M | 546.00M |
| Gross Profit | 556.00M | 538.00M | 531.00M | 588.00M | 451.00M | 401.00M |
| EBITDA | 416.00M | 670.00M | 763.00M | -134.00M | -1.88B | 270.00M |
| Net Income | 298.00M | 551.00M | 594.00M | -253.00M | -1.93B | 4.06B |
Balance Sheet | ||||||
| Total Assets | 18.00B | 18.18B | 17.57B | 17.31B | 17.35B | 17.78B |
| Cash, Cash Equivalents and Short-Term Investments | 176.00M | 111.00M | 292.00M | 376.00M | 162.00M | 45.00M |
| Total Debt | 5.24B | 5.03B | 4.68B | 5.42B | 4.96B | 3.48B |
| Total Liabilities | 6.04B | 5.91B | 5.53B | 6.40B | 5.97B | 4.35B |
| Stockholders Equity | 11.97B | 12.27B | 12.05B | 10.90B | 11.37B | 13.44B |
Cash Flow | ||||||
| Free Cash Flow | 423.00M | 367.00M | 306.00M | 402.00M | 204.00M | 304.00M |
| Operating Cash Flow | 452.00M | 396.00M | 330.00M | 431.00M | 213.00M | 311.00M |
| Investing Cash Flow | -228.00M | -402.00M | -369.00M | -526.00M | -1.25B | -1.28B |
| Financing Cash Flow | -189.00M | -246.00M | 26.00M | 309.00M | 1.12B | 930.00M |
Segro plc (REIT) Technical Analysis
Neutral
971.00
Price Trends
924.16
Positive
819.11
Positive
761.10
Positive
Market Momentum
8.21
Positive
52.88
Neutral
21.63
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 971 is above the 20-day moving average (MA) of 957.04, above the 50-day MA of 924.16, and above the 200-day MA of 761.10, indicating a neutral trend. The MACD of 8.21 indicates Positive momentum. The RSI at 52.88 is Neutral, neither overbought nor oversold. The STOCH value of 21.63 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
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | £2.87B | 6.99 | 9.48% | 2.93% | 9.10% | 20.49% | |
71 Outperform | £4.51B | 14.71 | 5.39% | 5.31% | -13.80% | -38.91% | |
69 Neutral | £12.86B | 44.07 | 2.46% | 3.32% | 6.58% | -52.02% | |
69 Neutral | £4.32B | 14.16 | 6.29% | 6.80% | 17.12% | -23.84% | |
68 Neutral | £4.91B | 14.41 | 5.29% | 6.21% | 7.21% | -13.23% | |
67 Neutral | £4.28B | 9.09 | 7.73% | 5.53% | 15.13% | 29.40% | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% |
* Real Estate Sector Average
GB:SGRO
Segro plc (REIT)
941.40
344.46
57.70%
GB:BLND
British Land Company plc
416.80
97.12
30.38%
GB:SHC
Shaftesbury Capital
145.10
7.86
5.73%
GB:LAND
Land Securities Group plc REIT
662.50
155.60
30.70%
GB:LMP
LondonMetric Property
183.00
13.85
8.19%
GB:BBOX
Tritax Big Box REIT
153.20
23.25
17.89%
Segro plc (REIT) Corporate Events
Regulatory Filings and Compliance
SEGRO Confirms Total Voting Rights and Share Capital Structure
Neutral
Aug 28, 2026
SEGRO plc has reported that its total issued ordinary share capital as of 28 August 2026 stands at 1,354,107,450 ordinary shares of 10 pence each, with one voting right attached to every share. The company holds no shares in treasury, meaning all ...
Delistings and Listing ChangesPrivate Placements and Financing
SEGRO Adds New Ordinary Shares to LSE Listing
Neutral
Aug 28, 2026
SEGRO plc has issued and admitted to trading an additional 16,578 ordinary shares of 10 pence each on the London Stock Exchange Main Market. These new shares are fully fungible with the existing stock, bringing the total number of ordinary shares ...
Business Operations and StrategyM&A TransactionsRegulatory Filings and Compliance
Prologis Reaffirms Final Offer Terms in Bid for SEGRO
Positive
Aug 12, 2026
Prologis has reaffirmed the terms of its recommended best and final share offer with a partial cash alternative to acquire the entire issued and to be issued share capital of SEGRO. The deal would merge two major logistics real estate owners, pote...
Business Operations and StrategyM&A TransactionsRegulatory Filings and Compliance
Prologis Clarifies Terms on Best and Final Offer for SEGRO
Positive
Aug 12, 2026
Prologis has made a recommended best and final share offer, with a partial cash alternative, to acquire the entire issued and to be issued share capital of SEGRO. The proposal, first announced on 4 August 2026, would combine two major logistics re...
Regulatory Filings and Compliance
SEGRO Confirms Total Voting Rights Following Share Capital Update
Neutral
Jul 31, 2026
SEGRO plc has confirmed that as of 31 July 2026 its issued ordinary share capital consists of 1,354,090,872 shares of 10 pence each, with one voting right attached to every share. The company holds no shares in treasury, meaning the total number o...
Private Placements and FinancingRegulatory Filings and Compliance
SEGRO Adds Small Tranche of Shares to LSE Listing
Neutral
Jul 31, 2026
SEGRO plc has issued an additional 17,505 ordinary shares of 10 pence each, which have been admitted to trading on the London Stock Exchange’s Main Market. These new shares are fully fungible with the existing share capital, maintaining a si...
Business Operations and StrategyDividendsFinancial Disclosures
SEGRO Delivers Strong H1 2026 Results and Expands Data Centre Growth Pipeline
Positive
Jul 30, 2026
SEGRO reported a strong first half of 2026, with like-for-like net rental income up 5.3 per cent and adjusted earnings per share rising 6.6 per cent, supported by £53 million of new headline rent and record development pipelines. The group ma...
Business Operations and StrategyDelistings and Listing ChangesM&A Transactions
SEGRO Board Signals Support for Prologis’ Final Takeover Proposal
Positive
Jul 22, 2026
SEGRO’s board has acknowledged a fourth, “best and final” possible offer from U.S. logistics REIT Prologis for the entire share capital of the company, structured as 0.0920 new Prologis shares per SEGRO share plus a partial cash ...
Business Operations and StrategyM&A Transactions
SEGRO Board Rejects Prologis Bid, Touts Standalone Growth Potential
Positive
Jul 20, 2026
SEGRO’s board is urging shareholders to back its standalone growth strategy and reject Prologis’s latest takeover proposal, arguing that the offer undervalues the company’s unique portfolio and embedded growth. Management highlig...
Business Operations and StrategyM&A Transactions
Segro Rejects Revised Prologis Approach, Stresses Standalone Value
Neutral
Jul 20, 2026
Segro’s board has rejected a further revised, indicative takeover proposal from Prologis, which valued each Segro share primarily through new Prologis stock with a partial cash alternative. The directors argue that Segro’s growth strat...
Business Operations and StrategyFinancial Disclosures
SEGRO boosts Coventry logistics park with trio of major leases
Positive
Jul 15, 2026
SEGRO has secured three new leases totalling around 540,000 square feet at SEGRO Park Coventry, including build-to-suit and pre-let facilities for Volvo Group UK and DIRKS Consumer Logistics, and a speculative unit for GigaCloud Technology. The de...
Business Operations and StrategyM&A Transactions
SEGRO rejects Prologis bid as undervaluing logistics REIT
Neutral
Jul 9, 2026
SEGRO has rejected a proposal from Prologis, valued at 886p per share, arguing that the offer undervalues its portfolio and growth prospects and represents an opportunistic attempt to acquire the company cheaply. Chairman Andy Harrison said the bi...
Business Operations and Strategy
SEGRO and Pure DC Launch Major Paris Data Centre Joint Venture
Positive
Jul 8, 2026
SEGRO has entered a second 50:50 joint venture with Pure Data Centres Group to develop a 48MW fully fitted data centre in a key Paris Availability Zone, targeting a long-term lease with a global hyperscaler. SEGRO will contribute powered land with...
Business Operations and StrategyFinancial Disclosures
SEGRO lifts H1 rental income and expands record development and data centre pipeline
Positive
Jul 8, 2026
SEGRO reported a strong start to 2026, securing £53 million of new headline rent in the first half versus £31 million a year earlier, driven by both its existing portfolio and development activity. The group recorded a 44% uplift on UK r...
Business Operations and StrategyFinancial DisclosuresM&A Transactions
Segro Sets Out Growth Strategy and Rejects Prologis Approach as Undervalued
Positive
Jul 8, 2026
Segro has outlined an ambitious income and value growth strategy, highlighting a substantial industrial and logistics development pipeline and a powerful data centre platform backed by a 3.0GVA European power bank. Management projects more than &#...
Business Operations and StrategyPrivate Placements and Financing
SEGRO Sets Up £3 Billion UK Logistics Joint Venture to Expand Big-Box Park Portfolio
Positive
Jul 1, 2026
SEGRO has agreed heads of terms for a 50:50 logistics joint venture with a major international institutional investor to develop and operate three big-box parks in Radlett, Coventry and Northampton. The £3 billion venture will initially acqui...
Regulatory Filings and Compliance
Segro Confirms Total Voting Rights Following Share Capital Update
Neutral
Jun 30, 2026
Segro plc has reported that as of 30 June 2026 its issued ordinary share capital consists of 1,354,073,367 shares, each carrying one voting right, with no shares held in treasury. This disclosure clarifies the total number of voting rights for inv...
Business Operations and StrategyPrivate Placements and Financing
SEGRO Expands Share Capital with Admission of Additional Ordinary Shares
Neutral
Jun 30, 2026
SEGRO plc has increased its share capital with the issuance and admission to trading of 212,436 new ordinary shares of 10 pence each on the London Stock Exchange’s Main Market. Following this issuance, conducted between 29 May and 30 June 20...
Business Operations and StrategyM&A Transactions
SEGRO Board Rejects Prologis Proposal, Reasserts Standalone Growth Strategy
Neutral
Jun 30, 2026
SEGRO’s board has firmly rejected a possible takeover proposal from U.S. logistics real estate group Prologis, arguing the offer significantly undervalues the UK REIT’s prime urban European portfolio and future growth prospects. The co...
Business Operations and StrategyM&A Transactions
SEGRO rejects unsolicited Prologis approach as undervalued and opportunistic
Neutral
Jun 24, 2026
SEGRO has revealed that it received an unsolicited all-share proposal from U.S. logistics REIT Prologis, offering 0.084 Prologis shares per SEGRO share, valuing the approach at about 925 pence per share based on recent market prices. The board una...
Business Operations and StrategyPrivate Placements and Financing
SELP Joint Venture Raises €650 Million in Seven-Year Bond to Boost European Logistics Platform
Positive
Jun 23, 2026
SEGRO, through its role as parent of SELP Management Limited, underlines its strength in European logistics real estate via the SEGRO European Logistics Partnership, a 50:50 joint venture with PSP Investments that has grown since 2013 into a ̈́...
Business Operations and StrategyExecutive/Board ChangesRegulatory Filings and Compliance
SEGRO Directors Exercise and Receive New Options Under 2023–2026 Sharesave Plans
Neutral
Jun 2, 2026
SEGRO has reported director dealings under its Savings-Related Share Option Plan, with Chief Executive David Sleath exercising options from the 2023 Sharesave offer at £5.808 per share, acquiring 3,099 ordinary shares as the plan matured on 1...
Regulatory Filings and Compliance
Segro Confirms Total Voting Rights After Share Capital Update
Neutral
May 29, 2026
Segro plc has confirmed that its total issued ordinary share capital stands at 1,353,927,858 shares, each carrying one voting right and with no shares held in treasury. This clarification of total voting rights guides investors in calculating whet...
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.