SEGRO Plc

SEGRO said 2025 adjusted earnings per share increased 6.1%, full-year dividend was 31.1p and up 6.1% year on year, adjusted NAV per share increased 2%, net rental income grew 8.6%, and like-for-like net rental income rose 6%. They also reported portfolio valuation growth of 1% on a like-for-like basis, adjusted profit before tax up 8.3%, LTV of 31%, and net debt-to-EBITDA down to 8.4x from 8.6x. On the operating side, they signed GBP 99 million of new headline rent, delivered GBP 37 million of reversion uplifts, and increased occupancy to 94.9%. Guidance included 2026 development CapEx of EUR 450 million to EUR 550 million, with about EUR 150 million for infrastructure, and disposals expected at or above the upper end of the long-term 1% to 2% portfolio run rate.

David Sleath framed 2025 as a strong year operationally and financially despite a difficult macro backdrop, emphasizing record leasing, better occupier sentiment, and a pickup in second-half activity that has carried into 2026. He stressed SEGRO’s long-term compounding track record and said the company is positioned to move back toward historical growth averages as fundamentals improve. His tone was constructive and increasingly confident, especially around the data center opportunity and the company’s land bank.

Susanne Schroeter-Crossan highlighted disciplined financial execution: adjusted EPS up 6.1%, dividend up 6.1% to 31.1p, adjusted NAV per share up 2%, net rental income up 8.6%, and adjusted profit before tax up 8.3%. She said LTV finished at 31% and net debt-to-EBITDA improved to 8.4x, supported by higher EBITDA and disciplined capital management; average debt maturity was 6 years and undrawn RCFs and term loans were circa EUR 1.9 billion. On capital allocation, she said 2026 development CapEx should be EUR 450 million to EUR 550 million, including around EUR 150 million of infrastructure, and that share buybacks are not currently attractive because development opportunities are more compelling. She also said the current data center strategy would not require an equity raise, with project debt and joint-venture funding helping keep cash equity needs manageable.

Analysts focused on three areas: whether SEGRO would move into defense manufacturing space, how much further urban occupancy could recover, and how the new data center strategy would be funded and protected from technology obsolescence. Management said defense manufacturing may create some indirect logistics demand but is not a major near-term theme for SEGRO because many sites would be in locations outside its core prime portfolio. On data centers, Andrew Pilsworth said the company is investing in long-life power and cooling infrastructure rather than chips or servers, and that obsolescence risk is therefore limited; Susanne added the fully fitted model would use JV project debt and should not require an equity raise. On capital intensity, David Sleath said fully fitted projects would likely be done one or two at a time and funded through active recycling, keeping leverage manageable.