SEGRO plc (SGRO.L) — Company Research

Last Updated: 11 August 2026

SEGRO plc is the largest listed European warehouse landlord by market value after Goodman and Prologis, owning urban and big box logistics estates across the UK and Continental Europe plus a fast-growing data centre business built on the power capacity of the Slough Trading Estate. In the year to 31 December 2025 it produced revenue of £726m, adjusted earnings per share of 36.6p and a portfolio valued at £18,962m. It is also, as of 3 August 2026, subject to a recommended takeover by Prologis, Inc. valuing it at approximately £14.0bn — a fact that now sits underneath every current number in this report. Everything below comes from company filings, RNS announcements and official data. There are no analyst opinions or price targets anywhere in it.

1. Company Snapshot

Field	Value
Company	SEGRO plc, a UK Real Estate Investment Trust since 1 January 2007
Ticker / listing	SGRO, London Stock Exchange main market, with a secondary listing on Euronext Paris
Sector	Real estate — urban and big box logistics warehouses, plus data centres
Headquarters	London, United Kingdom
Financial year end	31 December
Revenue (FY2025)	£726m, up 7.6% on FY2024. Gross rental income £637m; net rental income £543m
Adjusted profit before tax (FY2025)	£509m, up 8.3%
Adjusted EPS (FY2025)	36.6p, up 6.1%
IFRS basic EPS (FY2025)	40.7p (FY2024: 44.7p)
Dividend per share (FY2025)	31.1p, up 6.1%, an 85% payout of adjusted profit after tax
EPRA net tangible assets per share	902p at 30 June 2026 (925p at 31 December 2025)
Portfolio value	£18.7bn at SEGRO's share, £21.7bn of assets under management, at 30 June 2026
Loan to value	32% including share of joint ventures at 30 June 2026
Employees	454 on average during 2025 (2024: 461)
CEO / Leadership	David Sleath, Chief Executive; Susanne Schroeter, Chief Financial Officer; Andy Harrison, Chair
Corporate status	Subject to a recommended all-share offer with a partial cash alternative from Prologis, Inc., announced 3 August 2026, valuing SEGRO at approximately £14.0bn and expected to complete in the first half of 2027

2. Bull and Bear Case

Bull Case

• The operating business is compounding regardless: adjusted EPS has risen every year from 28.0p in 2021 to 36.6p in 2025, and H1 2026 adjusted EPS grew a further 6.6% to 19.3p. Like-for-like net rental income grew 6.0% in FY2025.
• A record development pipeline that is mostly pre-let: current and near-term projects carry £90m of potential rent at a 7.4% blended yield with 75% already secured, and H1 2026 delivered £53m of new headline rent against £31m a year earlier.
• Data centres are a genuine second business, not a slide: 0.5GVA is already operational generating around £58m of headline rent, 7% of the rent roll, and the strategic power bank rose to over 3.0GVA in H1 2026. SEGRO identifies £464m of potential rent from 1.4GVA targeted over the next seven years.
• Embedded income growth is contractual, not speculative: £157m of embedded growth sat in the standing portfolio at 30 June 2026, comprising £101m of rent reversion and £56m from letting vacant space, before any new development completes.

Bear Case

• Property values fell in the first half of 2026: the portfolio declined 1.2% overall and 2.0% in the UK, EPRA net tangible assets fell 2.5% to 902p and IFRS earnings swung to a loss of 0.4p per share. The change of UK valuer to Cushman & Wakefield brought more conservative yields with it.
• The deal can still fail or slip: completion is not expected until the first half of 2027 and remains conditional on shareholder approval, court sanction, regulatory clearances and approval of Prologis's application for a secondary London listing.
• Leverage is rising into a higher-rate refinancing cycle: gross borrowings including the share of joint ventures reached £6,251m at 30 June 2026 and the weighted average cost of debt rose from 2.6% to 2.8%. New issuance is pricing near 4%, well above the legacy book.
• Occupancy is drifting and part of the pipeline is speculative: occupancy fell to 94.5% at 30 June 2026 from 94.9% at the year end, at the bottom of the 94–96% target range, and 25% of the current development pipeline is unlet with £322m of capex still to spend.

3. Business Segments

SEGRO reports under IFRS 8 in just two property segments, the United Kingdom and Continental Europe, plus an unallocated corporate category. Figures below are H1 2026, for the six months to 30 June 2026.

Segment	% of revenue	What it is
United Kingdom	64.9% (£240m of external revenue)	Urban warehouses concentrated in Greater London and the Thames Valley, big box logistics parks at Coventry, Northampton and Radlett, and the data centre cluster on the Slough Trading Estate. Gross rental income £234m, net rental income £214m, adjusted profit before interest and tax £214m. Directly owned property £11,436m. Contracted headline rent of £482m splits into £299m urban, £102m big box, £58m data centres and £23m other.
Continental Europe	35.1% (£130m of external revenue)	Warehouses in Germany, France, Italy, Poland, the Netherlands, Spain and the Czech Republic, roughly half of it held through the SELP joint venture with PSP Investments. Gross rental income £92m, net rental income £73m, adjusted profit before interest and tax £144m including joint venture income. Directly owned property £4,299m plus £2,752m of joint venture investments. Contracted headline rent £347m.
Other and unallocated	Nil material external revenue	Corporate centre, SELP holding companies and unallocated costs. Net rental income of negative £7m and an adjusted loss before interest and tax of £53m in H1 2026.

By value at 30 June 2026 the portfolio was 62% UK, 12% Germany, 11% France, 6% Italy, 4% Poland, 2% Netherlands, 2% Spain and 1% Czech Republic. By asset type, big box warehouses were 35% of value, data centres 8% and other uses of industrial land 2%, with urban warehouses making up the balance.

4. Business Model and Moat

How it makes money. SEGRO buys and develops industrial land, builds warehouses on it and lets them on long leases with contractual uplifts. Rent is the recurring revenue line: £637m of gross rental income in FY2025 producing £543m of net rental income after property costs. On top of that it earns management and performance fees for running the SELP joint venture on behalf of PSP Investments, £25m in FY2025. Because it is a UK REIT it pays almost no corporation tax on UK rental profits, which is why the effective tax rate on adjusted profit was just 2.8% in FY2025, and in exchange it must distribute at least 90% of UK-sourced tax-exempt rental profit as a Property Income Distribution.

Where the moat comes from. The asset is really the land and its permissions, not the shed. SEGRO's urban estates sit inside the M25 and around major European cities where new industrial consent is close to unobtainable, which is why UK urban warehouses alone generate £299m of headline rent. The Slough Trading Estate is a rarer asset still: Europe's largest data centre cluster, holding Simplified Planning Zone status with planning pre-approved for industrial and data centre use until the end of 2034, and carrying over 3.0GVA of secured grid power. Power capacity of that scale cannot be replicated quickly at any price, which is what turned an industrial estate into a data centre platform.

How the growth is funded. Development is paid for out of operating cash flow, disposals and debt rather than continual equity issuance — there was no equity raise in 2025 or 2026, the last being £889m in 2024. The 544-hectare land bank, valued at £1.1bn and about 6% of portfolio value, is the pipeline: it can support 2.2m sq m over five to seven years for around £2.3bn of capex, generating £248m of gross rental income at a 7–8% development yield. Capital is increasingly deployed through joint ventures — two 50:50 data centre vehicles with Pure DC and a proposed 50:50 UK big box partnership seeded with around £1bn of assets — which lets SEGRO keep the fee income and a half share of the upside while halving the balance sheet commitment.

5. Financial Health

All figures below come from SEGRO's published results announcements and Annual Report and Accounts. Revenue is the "Revenue" line at the top of the Group Income Statement, which comprises gross rental income plus joint venture fee income, management and development fees, service charge and other income and proceeds from the sale of trading properties.

Fiscal Year	Revenue (£m)	YoY %	GAAP EPS	Adjusted EPS	Dividend/share	Long-term debt (YE)
FY2021 (to 31 Dec 2021)	£546m	n/a †	339.0p	28.0p	24.3p	£3,406m
FY2022 (to 31 Dec 2022)	£669m	+22.5%	(159.7)p	31.0p	26.3p	£4,884m
FY2023 (to 31 Dec 2023)	£749m	+12.0%	(20.7)p	32.7p	27.8p	£5,347m
FY2024 (to 31 Dec 2024)	£675m	−9.9%	44.7p	34.5p	29.3p	£4,607m
FY2025 (to 31 Dec 2025)	£726m	+7.6%	40.7p	36.6p	31.1p	£4,386m

† No year-on-year figure is shown for FY2021 because the FY2020 comparative is outside the five-year window presented and was prepared on a different revenue composition. The swing in GAAP EPS from 339.0p in 2021 to a loss of 159.7p in 2022 is almost entirely property revaluation running through the income statement as interest rates rose, not a change in rental performance — adjusted EPS rose in every one of those years. The 2023 revenue figure includes an £89m SELP performance fee that did not repeat. Long-term debt is non-current borrowings at the Group level; total borrowings were higher in FY2025 at £4,951m because £565m sat in current borrowings. Group net debt was £4,840m at 31 December 2025, or £5,919m including SEGRO's share of joint ventures.

SEGRO reports half-yearly. The table below shows the reported halves with the derived second half marked.

Quarter / Half	Revenue	Adjusted EPS	GAAP EPS
H1 2026 (Jan – Jun 2026)	£370m	19.3p	(0.4)p
H2 2025 (Jul – Dec 2025) ‡	£375m	18.5p	22.4p
H1 2025 (Jan – Jun 2025)	£351m	18.1p	18.3p
FY2025 full year	£726m	36.6p	40.7p

‡ Second-half figures are derived by subtracting the reported first half from the reported full year; SEGRO does not publish them as a separate period. The H1 2026 IFRS loss per share of 0.4p is the result of a £270m valuation deficit in the half, against an adjusted profit after tax of £261m.

Balance sheet at 30 June 2026: cash and cash equivalents of £176m, no current borrowings, non-current borrowings of £5,023m and Group net debt of £4,847m. Including SEGRO's share of joint ventures, gross borrowings were £6,251m, cash £332m and net borrowings £5,919m. Loan to value was 32% on a look-through basis, gearing 40%, interest cover 4.0 times, weighted average cost of debt 2.8% and average debt maturity 6.3 years, with £1,538m of available cash and undrawn committed facilities. Fitch rates SEGRO BBB+ at the issuer level and A- on senior unsecured debt. In FY2025 net cash from operating activities was £396m, against £444m spent purchasing and developing investment properties and £29m on plant, equipment and intangibles; depreciation and amortisation was just £17m, as expected for a REIT.

6. Valuation Metrics

Share prices, and figures worked out from them, are not shown for London-listed companies on ChartsView. See the SGRO price on TradingView

Raw metrics, August 2026. Not opinions on whether the stock is cheap or expensive.

Metric	Value
Implied offer value	Approximately 944.7p per share on the all-share entitlement of 0.0920 Prologis shares at the 10 August 2026 Prologis close of $138.76 and GBP/USD of 1.3514.
Short interest (% of float)	0.30% — the FCA aggregated net short position in SEGRO plc, position date 5 August 2026, down from 0.43% on 28 July 2026 and 0.50% on 23 June 2026. Under the UK Short Selling Regulation applying from 13 July 2026 the FCA publishes only an anonymised aggregate of individual positions at or above 0.2%, so no holder names are available.

7. What Are They Building

At 30 June 2026 the current development pipeline stood at 764,900 sq m approved, contracted or under construction, requiring £322m of capex to complete and carrying £65m of annualised gross rental income when fully let at an expected 7.5% development yield, with 65% of that rent already secured. Adding the near-term pipeline of 174,400 sq m, around £193m of future capex and around £25m of potential rent, gives a combined £90m of potential rent at a 7.4% blended yield with 75% pre-let — which SEGRO describes as a record. Development capex guidance for 2026 was narrowed to £500–550m including around £150m of infrastructure, of which £213m was deployed in the first half.

The land bank is the longer pipeline: 544 hectares valued at £1.1bn, capable of supporting 2.2m sq m over five to seven years for around £2.3bn of capex and £248m of gross rental income at a 7–8% development yield. Options over a further 1.3m sq m, expected to be exercised within two to three years and carried at £21m, cover another £128m of headline rent.

Data centres are the fastest-moving part. Operational capacity of 0.5GVA generates around £58m of headline rent, 7% of the rent roll, and the UK data centre assets alone are valued at £1,271m across 219,108 sq m at 100% occupancy. The strategic power bank grew by 0.5GVA in H1 2026 to over 3.0GVA. SEGRO has identified 1.4GVA of near-to-mid-term opportunity across roughly twelve sites, around 680MW of IT load, worth around £464m of potential rental income and expected to be income-producing within ten years, with a further 1.1GVA of reserved power beyond that. Around 0.3GVA of the 1.4GVA is expected to be sold as powered land, with the majority delivered as fully fitted facilities alongside powered shells. Concrete steps in 2026 included a 30,000 sq m powered shell pre-let at Slough with 50MVA of power in March, planning approval for a 56MW fully fitted facility at SEGRO Premier Park in Park Royal through the 50:50 joint venture with Pure Data Centres Group, a second multi-storey powered shell pre-let at Slough, and in July a second 50:50 Pure DC joint venture for a 48MW fully fitted data centre in Paris involving around £0.8bn of gross capital investment but only around £60m of SEGRO cash equity.

Alongside this, on 1 July 2026 SEGRO agreed heads of terms for a 50:50 development-led joint venture over its three largest UK logistics parks at Coventry, Northampton and Radlett, seeded with 225,000 sq m of existing assets producing £25m of annual income plus 380 acres of development land for approximately £1bn, in line with 31 December 2025 book value. Fully built out those parks would deliver 0.9m sq m and around £135m of total potential headline rent.

8. Competitive Landscape

Peer	Key 2025 metric
Prologis, Inc. (NYSE: PLD)	Q2 2026 core funds from operations of $1.63 per diluted share against $1.46 a year earlier; 2026 core FFO guidance raised to $6.22–$6.30 per share. It is also SEGRO's bidder.
Goodman Group (ASX: GMG)	FY26 guidance of at least 9% operating EPS growth and over A$2.6bn of operating profit; development work in progress of A$14.5bn at 31 March 2026, with data centres 73% of that pipeline
SEGRO plc (LSE: SGRO)	FY2025 adjusted EPS of 36.6p, adjusted profit before tax £509m, portfolio £18,962m, loan to value 31%, dividend 31.1p
Land Securities Group plc (LSE: LAND)	Year to 31 March 2026 EPRA EPS of 51.4p, up 2.2%, with EPRA net tangible assets of 882p, up 0.9%
LondonMetric Property plc (LSE: LMP)	Year to 31 March 2026 EPRA earnings of £305.3m, up 13.9%, equal to 13.5p per share; dividend 12.45p, 108% covered; portfolio £7.6bn; loan to value 36.7%
British Land Company plc (LSE: BLND)	Year to 31 March 2026 underlying profit of £294m, up 5%, underlying EPS 28.9p; EPRA net tangible assets 590p, up from 567p
Tritax Big Box REIT plc (LSE: BBOX)	H1 2026 net rental income of £173.3m, up 16.2%; adjusted EPS excluding development management activity 4.41p, up 7.0%; portfolio £7.68bn; secured data centre power nearly doubled to 507MW
VGP NV (Euronext Brussels: VGP)	FY2025 proportionally consolidated net rental income of €224.4m, up 16.7%, with EPRA net tangible assets up 9% and committed annualised rental income of €486.4m by April 2026

The competitive picture has changed shape in 2026. SEGRO's nearest UK listed comparators, Tritax Big Box and LondonMetric, are each roughly a third of its size, and both are chasing the same data centre power story — Tritax nearly doubled its secured power to 507MW in the first half. Prologis and Goodman are the only genuinely larger logistics landlords globally, which is part of why a combination with Prologis would lift Prologis's European operating portfolio by 47% and its European land bank by 126%. Market caps above were re-checked live on 11 August 2026 and converted at spot rates the same day.

9. Insider Activity

David Sleath is Chief Executive and Susanne Schroeter is Chief Financial Officer. Almost all 2026 director dealing has been scheme-driven — annual incentive grants, vestings and the tax sales that settle them — with one genuine open-market purchase. No dealings have been announced since 2 June 2026 because the offer period, which began on 24 June 2026, restricts them. Transactions below come from SEGRO's Director/PDMR Shareholding RNS announcements.

Name	Date	Type	Shares	Plan Type
Marcus Sperber (Non-Executive Director)	27 Mar 2026	Purchase	3,897	Open-market purchase, taking his holding to 11,137 shares
David Sleath (Chief Executive)	25 Feb 2026	Award	304,181	2018 Long Term Incentive Plan, 2026 grant, three-year period to 31 Dec 2028
Susanne Schroeter (Chief Financial Officer)	25 Feb 2026	Award	169,585	2018 Long Term Incentive Plan, 2026 grant, three-year period to 31 Dec 2028
David Sleath (Chief Executive)	30 Mar 2026	Sale	56,821	Tax settlement on release of 2021 LTIP shares after the two-year holding period
David Sleath (Chief Executive)	28 Apr 2026	Award	85,994	Deferred Share Bonus Plan, 2025 award
David Sleath (Chief Executive)	28 Apr 2026	Sale	30,887	Tax settlement on vesting of the 2022 Deferred Share Bonus Plan award
David Sleath (Chief Executive)	01 Jun 2026	Exercise	3,099	Savings-Related Share Option Plan 2021, 2023 offer

The two sales by David Sleath were both net-settlement of income tax on shares that had just vested, not a reduction in economic exposure — he still held over 1.1m shares after each.

10. Key Risks

• Deal completion risk: the Prologis scheme of arrangement is conditional on SEGRO shareholder approval, court sanction, regulatory clearances and approval of Prologis's application for a secondary London listing, and is not expected to complete until the first half of 2027.
• Refinancing into higher rates: gross borrowings including the share of joint ventures were £6,251m at 30 June 2026 and the weighted average cost of debt has already risen from 2.6% to 2.8%. SELP's recent issuance priced at 3.875% and 4.0%, well above the legacy book, so each maturity refinanced is a drag on adjusted earnings.
• Data centre delivery and concentration risk: the £464m of potential data centre rent depends on grid power arriving on schedule, planning holding, and hyperscaler demand persisting. The Paris joint venture alone carries around £0.8bn of gross capital investment and is targeting a long-term lease with a global hyperscaler that is not yet signed.
• Occupancy and speculative development risk: occupancy of 94.5% at 30 June 2026 sits at the bottom of the 94–96% target range and below the 94.9% at the year end. A quarter of the current development pipeline is unlet with £322m of capex still to spend, so weaker take-up would leave completed but empty space.
• REIT status risk: SEGRO's very low 2.8% effective tax rate on adjusted profit depends on continuing to satisfy UK REIT conditions, including distributing at least 90% of UK-sourced tax-exempt rental profit. Loss of REIT status, or adverse change to the regime, would materially raise the tax charge.

11. Recent Developments

• 04 Aug 2026 — Prologis announces a recommended acquisition of SEGRO. To be implemented by scheme of arrangement, with SEGRO directors intending to recommend unanimously and completion expected in the first half of 2027.
• 30 Jul 2026 — H1 2026 results. Revenue of £370m, adjusted EPS up 6.6% to 19.3p, but an IFRS loss per share of 0.4p after a valuation deficit. EPRA net tangible assets fell 2.5% to 902p and the interim dividend was set at 10.14p, trimmed from the 10.4p it would otherwise have been to match the permitted dividend cap in the Prologis proposal.
• 22 Jul 2026 — Prologis tables a best and final proposal. The Takeover Panel extended the put-up-or-shut-up deadline to 12 August 2026.
• 15 Jul 2026 — Three new customers at SEGRO Park Coventry. Around 540,000 sq ft let across pre-lets to Volvo Group UK and DIRKS Consumer Logistics plus a lease of a speculatively developed warehouse to GigaCloud Technology.
• 08 Jul 2026 — H1 trading update and a second data centre joint venture. SEGRO reported £53m of new headline rent including £24m of pre-lets, narrowed 2026 development capex guidance to £500–550m and confirmed £308m of disposals completed or exchanged. It also announced a second 50:50 joint venture with Pure DC for a 48MW fully fitted data centre in Paris.
• 01 Jul 2026 — UK big box joint venture heads of terms. A proposed 50:50 development-led partnership over Coventry, Northampton and Radlett, seeded with roughly £1bn of assets and land at 31 December 2025 book value.
• 24 Jun 2026 — SEGRO rejects Prologis's first approach. The board disclosed an unsolicited proposal received on 16 June 2026 worth 925p per share and rejected it unanimously as opportunistically timed. The offer period began that day.
• 23 Jun 2026 — SELP prices €650m of 4.000% bonds due 2033. Proceeds were used to repurchase €539m of 3.75% bonds due 2027, following a €500m 3.875% issue in April 2026.
• 16 Mar 2026 — Slough powered shell pre-let and Park Royal approval. A 30,000 sq m powered shell pre-let over three floors with 50MVA of power was signed with an existing customer, and planning committee approval was received for the first fully fitted data centre at SEGRO Premier Park with 70MVA of incoming power.
• 20 Feb 2026 — FY2025 results. Revenue £726m, adjusted EPS 36.6p, dividend 31.1p, EPRA net tangible assets 925p and a record £99m of new headline rent secured, with the portfolio valued at £18,962m and loan to value at 31%.

12. Key Dates

• 06 Aug 2026 — ex-dividend date for the 2026 interim dividend of 10.14p; record date 7 August 2026
• 12 Aug 2026 — extended Rule 2.6 put-up-or-shut-up deadline for Prologis, now superseded by the firm offer announced on 3 August 2026
• 17 Sep 2026 — 2026 interim dividend of 10.14p paid, as an ordinary rather than Property Income Distribution dividend, with no scrip alternative
• Expected Aug 2026 — posting of the Scheme Document, due within 28 days of the 3 August Rule 2.7 announcement unless the Takeover Panel agrees otherwise
• TBC — Court Meeting and General Meeting at which SEGRO shareholders vote on the scheme; dates to be set in the Scheme Document
• TBC — FY2026 full-year results. SEGRO has not published a date and its investor calendar is currently empty; the FY2025 results were released on 20 February 2026.
• Expected Mar 2027 — SEGRO's 2027 annual meeting to consider a 2026 final dividend of up to 22.56p; Prologis has said the scheme court hearing will not be convened until after it
• Expected H1 2027 — completion of the Prologis acquisition, subject to shareholder approval, court sanction, regulatory clearances and approval of Prologis's secondary London listing

While the offer period runs, SEGRO's RNS feed is dominated by Form 8.3 and Form 8.5 opening position and dealing disclosures from Prologis, Invesco, Vanguard, FIL, Northern Trust, Dimensional and others, as the Takeover Code requires. Scheduled macro events that move UK real estate valuations, including Bank of England rate decisions, are listed on the ChartsView Economic Calendar, and readers discuss UK-listed property names in the ChartsView Forum.

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