REG - SEGRO PLC - Results for the year ended 31 December 2025
20/02/2026 07:00
For best results when printing this announcement, please click on link below:
https://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20260220:nRST7459Ta&default-theme=true
RNS Number : 7459T SEGRO PLC 20 February 2026
SEGRO plc's Full Year 2025 Results have been submitted in full unedited text
to the Financial Conduct Authority's National Storage Mechanism and will be
available shortly for inspection
at https://data.fca.org.uk/#/nsm/nationalstoragemechanism
(https://data.fca.org.uk/#/nsm/nationalstoragemechanism) and are also
available on the SEGRO website at: www.segro.com/investors
(http://www.segro.com/investors) . Investors should read the full unedited
text of the Full Year 2025 Results, including the description of the Group's
principal risks and uncertainties, and not rely only on the summarised
information set out in this announcement. Notes or Tables that are not
included herein refer to the full unedited text of the Full Year 2025 Results.
20 February 2026
RESULTS FOR THE year ENDED 31 december 2025
STRONG OPERATING PERFORMANCE WITH A RECORD YEAR OF LEASING
Headlines:
l Strong operational performance with a record £99 million of new contracted
rent commitments and 6.0 per cent growth in like-for-like net rental income.
l 6.1 per cent growth in Adjusted earnings and dividends per share.
l Momentum building in occupier markets with increased enquiry levels and active
negotiations for further pre-lets.
l Primed for further sustainable growth through the capture of rent reversion,
profitable development and exploitation of our exceptional data centre
pipeline.
Commenting on the results David Sleath, Chief Executive of SEGRO, said:
"SEGRO delivered a strong performance in 2025. We signed a record level of new
rent through the excellent asset management of our existing portfolio and the
signing of several large pre-lets, particularly in the second half of the year
as structural drivers started to re-assert themselves and demand picked up.
"This momentum has continued into 2026 and we take confidence from the
increased enquiry levels and active negotiations that we are having with a
diverse range of industrial, logistics and data centre occupiers for both new
and existing space."
Strong operational performance delivered 6 per cent growth in earnings and
dividends
l Record £99 million of new headline rent secured (2024: £91 million),
including £66 million of leasing and reversion capture in the existing
portfolio and £33 million of development signings (£26 million of which were
new pre-lets, mostly signed in the second half of 2025).
l Strong asset management performance resulted in 6.0 per cent like-for-like net
rental income growth, with the UK delivering an average uplift on rent reviews
and renewals of 46 per cent.
l Estimated Rental Value (ERV) growth of 3.1 per cent in the UK, with Park Royal
and Heathrow particularly strong at 4.7 per cent, and 1.0 per cent in
Continental Europe.
l Occupancy increased 90 bps to 94.9 per cent (2024: 94.0 per cent) as we
retained customers (2025: 82 per cent, 2024: 80 per cent) and let recently
refurbished and speculatively developed space. Our continued focus on
Operational excellence drove a strong 91 per cent customer satisfaction score.
l Development completions added £29 million of potential new headline rent, 93
per cent of which is already leased, delivered at a development yield of 8.2
per cent.
l Successful execution of our Responsible SEGRO initiatives, including: a 17 per
cent reduction in our corporate and customer carbon emissions; delivering
great outcomes from our Community Investment Plans in our local communities;
and, continued investment into Nurturing talent within our market-leading
operating platform.
l Adjusted pre-tax profit increased by 8.3 per cent to £509 million (2024:
£470 million) and Adjusted earnings per share increased by 6.1 per cent to
36.6 pence (2024: 34.5 pence).
l 2025 full year dividend increased 6.1 per cent to 31.1 pence (2024: 29.3
pence). Final dividend increased by 5.9 per cent to 21.4 pence (2024: 20.2
pence).
l Adjusted NAV per share up 2.0 per cent to 925 pence (31 December 2024: 907
pence). Over the full year the portfolio valuation increased 1.0 per cent
(2024: 1.1 per cent) on a like-for-like basis.
Primed for further sustainable growth
l SEGRO's modern, sustainable portfolio, focused on Europe's most attractive and
supply-constrained industrial, logistics and data centre markets, is
well-positioned for growth as structural drivers reassert themselves and
occupier activity levels increase.
l Existing portfolio offers £152 million of embedded income growth opportunity:
£99 million of rent reversion (£33 million of which is available to capture
in 2026) and £53 million of rent available through letting vacant space.
l Development projects under construction or in advanced negotiations equate to
£62 million of potential rent, 55 per cent of which is associated with
pre-lets, and offer an attractive 7.1 per cent development yield. Multiple
further conversations are underway on our 'construction-ready' land bank.
l Growth from the existing portfolio and development programme is expected to be
compounded by further ERV growth, which, over the medium-term we continue to
expect to be in the range of 3 to 6 per cent for our urban portfolio and 2 to
4 per cent for big box logistics assets.
l Significant data centre income and value creation opportunity from one of
Europe's largest banks of powered land (2.5GW, 1.1GW of which is available to
pre-let by the end of 2028), focused on key European Availability Zones.
Clear capital allocation priorities, backed by a strong balance sheet
l Development continues to offer the most attractive risk-adjusted returns for
our capital: £413 million deployed in 2025 through £387 million of
development capex and £26 million of land acquisitions with near-term
development potential, complemented by £232 million of selective asset
acquisitions in core markets with strong returns potential.
l Development capex for 2026 estimated to be £450 to 550 million, depending on
the level of new projects starting in the coming months, including c.£150
million of infrastructure spend.
l Our disciplined approach to capital allocation ensures that we regularly
rotate capital into opportunities offering more attractive risk-adjusted
returns: after a very active 2024 in terms of disposals (£896 million), we
disposed of £57 million of assets and land during 2025 as investment markets
were more subdued. We plan for 2026 disposals to be at or above the upper end
of our medium to long-term run rate of 1 to 2 per cent of the portfolio.
l Strong balance sheet with moderate leverage: LTV of 31 per cent at 31 December
2025 (31 December 2024: 28 per cent) and net debt:EBITDA 8.4 times (31
December 2024: 8.6 times).
l Average cost of debt 2.6 per cent at 31 December 2025 (31 December 2024: 2.5
per cent).
OUTLOOK
We have strong conviction in the structural trends driving demand for
industrial, logistics and data centre space. They led to higher levels of
pre-let activity in the second half of 2025 and this momentum has continued
into 2026: enquiry levels have increased and we are actively negotiating a
strong pipeline of lettings on both existing space and for pre-let
developments, including data centres.
Occupiers are prioritising prime locations and the most modern, sustainable
assets to help them meet high consumer expectations and improve their
operational efficiency. Our focus on Europe's most attractive and
supply-constrained markets - two-thirds in major cities and one-third in key
logistics hubs - positions us well to meet their discerning requirements.
Our irreplicable portfolio, exceptional land bank, and one of the largest data
centre pipelines in Europe prime us for further sustainable growth ahead. We
expect increased activity levels and tightening supply-demand dynamics to
drive further rental growth and also have the potential to add:
l £152 million of additional rental income from our standing portfolio via rent
reversion (£99 million) and leasing vacant space (£53 million);
l £355 million of new rent from delivering industrial, logistics and powered
shell data centre projects on our land bank, with a profitable development
yield of 7 to 8 per cent.
Developing fully fitted data centre buildings on suitable sites within our
2.5GW+ powered land bank offers significant additional income and value
creation opportunity.
We have the right assets, team and balance sheet, leaving us well placed to
capitalise on strengthening occupier markets with multiple levers to drive
performance and deliver further compounding growth in earnings and dividends.
FINANCIAL SUMMARY
2025 2024 Change
per cent
Adjusted(2) profit before tax (£m) 509 470 8.3
IFRS(2) profit before tax (£m) 560 636
Adjusted(2) earnings per share (pence) 36.6 34.5 6.1
IFRS(2) earnings per share (pence) 40.7 44.7
Dividend per share (pence) 31.1 29.3 6.1
Total Accounting Return (%)(3) 5.3 3.1
2025 2024 Change
per cent
Assets under Management (£m) 22,004 20,296
Portfolio valuation (SEGRO share, £m) 18,962 17,770 1.0(4)
Net true equivalent yield (%) 5.5 5.4
Adjusted(5 6) net asset value per share (pence, diluted) 925 907 2.0
IFRS net asset value per share (pence, diluted) 906 889
Net debt (SEGRO share, £m) 5,919 5,000
Loan to value ratio incl. joint ventures at share (%) 31 28
Net debt:EBITDA(7) (times) 8.4 8.6
1 Figures quoted on pages 1 to 23 refer to SEGRO and SEGRO's share of joint
ventures, except for land (hectares) and space (square metres) which are
quoted at 100 per cent, unless otherwise stated. Please refer to the
Presentation of Financial Information statement in the Financial Review for
further details.
2 The primary driver of the difference between Adjusted profit before tax
and IFRS profit before tax (£560 million IFRS profit before tax versus £509
million Adjusted profit before tax and earnings per share 40.7 pence IFRS
earnings per share versus 36.6 pence adjusted earnings per share) is the
realised and unrealised property gains on our portfolio recognised in IFRS but
not recognised in our Adjusted profit and earnings metrics. Further
information and reconciliations between the Adjusted and IFRS metrics can be
found in Note 2 (Adjusted profit) and Notes 11 (Earnings per ordinary share)
to the condensed financial information.
3 Total Accounting Return is calculated based on the opening and closing
adjusted NAV per share adding back dividends paid during the period.
4 Percentage valuation movement during the period based on the difference
between opening and closing valuations for all properties including buildings
under construction and land, adjusting for capital expenditure, acquisitions
and disposals.
5 A reconciliation between Adjusted net asset value per share and IFRS net
asset value per share is shown in Note 11 to the condensed financial
information.
6 Adjusted net asset value is in line with EPRA Net Tangible Assets (NTA)
(see Table 5 in the Supplementary Notes for a NAV reconciliation).
7 Relates to SEGRO Group only. For further information on net debt:EBITDA
see footnote 2 to Table 2 in the Supplementary Notes.
OPERATING SUMMARY & KEY METRICS
2025 2024
STABILISATION OF INVESTMENT MARKETS SUPPORTED MODEST VALUATION GAINS (see page
14):
Portfolio valuation change (%): Group 1.0 1.1
UK 0.8 2.1
CE 1.5 (0.8)
ERV growth (%) Group 2.3 3.2
UK 3.1 3.7
CE 1.0 2.3
RECORD CONTRACTED RENTAL INCOME DRIVEN BY SEGRO'S BEST-IN-CLASS ASSET
MANAGEMENT AND IMPROVING DEVELOPMENT VOLUMES (page 16):
Total new rent secured in the year (£m) 99 91
Pre-lets signed in the year (£m) 26 20
Like-for-like net rental income growth Group 6.0 5.8
(%):
UK 6.2 5.9
CE 5.8 5.7
Uplift on rent reviews and renewals (%): Group 36 34
(note: excludes uplifts from indexation) UK 46 43
CE 6 7
Occupancy rate (%) 94.9 94.0
Customer retention (%) 82 80
Corporate and customer carbon emission intensity (kgCO(2)e/sq m) 20 24(2)
Installed solar capacity (MW) 145 123
DISCIPLINED CAPITAL ALLOCATION DRIVING PORTFOLIO PERFORMANCE (see page 19):
Development capex (£m) 387 471
Asset acquisitions (£m) 232 431
Land acquisitions (£m) 26 23
Disposals (£m) 57 896
DEVELOPMENT PIPELINE DELIVERING PROFITABLE GROWTH (see page 20):
Development completions:
- Space completed (sq m) 249,200 374,700
- Potential rent (£m) (Rent secured) 29 (93%) 37 (84%)
- Development yield (%) 8.2 6.9
- BREEAM 'Excellent'(1) or above (% of floorspace 100 97
completed)
- Average embodied carbon intensity of development 280 318
completions (kgCOe/sq m)
Current development pipeline potential rent (£m) (Rent secured) 53 (47%) 46 (50%)
Near-term pre-let development pipeline potential rent (£m) 9 5
1 Or local equivalent. The 2024 comparator was based on rental value rather
than floorspace.
2 The 2024 carbon emissions intensities have been restated to align with
updates to our methodology and estimations related to Scope 3 emissions.
FINANCIAL CALENDAR
2025 final dividend ex-div
date
26 March 2026
2025 final dividend record
date
27 March 2026
2025 final dividend payment
date
8 May 2026
2025 Q1 Trading
Update
23 April 2026
Half Year 2026 Results
(provisional)
30 July 2026
WEBCAST / CONFERENCE CALL FOR INVESTORS AND ANALYSTS
A live webcast of the results presentation will be available from 08:30am (UK
time) at:
https://www.investis-live.com/segro/695e34e35e748c000f22c849/pevt
(https://www.investis-live.com/segro/695e34e35e748c000f22c849/pevty) y
(https://www.investis-live.com/segro/695e34e35e748c000f22c849/pevty)
The webcast will be available for replay at SEGRO's website at:
http://www.segro.com/investors (http://www.segro.com/investors) shortly after
the live presentation.
A conference call facility will be available at 08:30am (UK time) on the An audio recording of the conference call will be available until 27 February
following number: 2026 on:
Dial-in: +44 (0)800 189 UK: +44 (0)
0158 203 936 3001
+44 Access code: 802014
(0)203 939 2999
Access code: 248984
A video of David Sleath, Chief Executive discussing the results will be
available to view on www.SEGRO.com (http://www.SEGRO.com) , together with this
announcement, the Full Year 2025 Property Analysis Report and other
information about SEGRO.
CONTACT DETAILS FOR INVESTOR / ANALYST AND MEDIA ENQUIRIES:
SEGRO Susanne Schroeter Tel: + 44 (0) 20 3887 4300
(after 11am)
(Chief Financial Officer)
Claire Mogford Mob: +44 (0) 7710 153 974
(Head of Investor Relations) Tel: +44 (0) 20 7451 9048
(after 11am)
FTI Consulting Richard Sunderland /Eve Kirmatzis Tel: +44 (0) 20 3727 1000
ABOUT SEGRO
SEGRO is a UK Real Estate Investment Trust (REIT), listed on the London Stock
Exchange and Euronext Paris, and is a leading owner, manager and developer of
modern warehouses and industrial property. It owns or manages 10.9 million
square metres of space (117 million square feet) valued at £22.0 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
For over 100 years SEGRO has been creating the space that enables
extraordinary things to happen. From modern big box warehouses, used primarily
for regional, national and international distribution hubs, to urban
warehousing located close to major population centres and business districts,
it provides high-quality assets that allow its customers to thrive.
A commitment to be a force for societal and environmental good is integral to
SEGRO's purpose and strategy. Its Responsible SEGRO framework focuses on three
long-term priorities where the company believes it can make the greatest
impact: Championing low-carbon growth, Investing in local communities and
environments and Nurturing talent. See www.SEGRO.com for further information.
The financial information set out in this announcement does not constitute the
consolidated statutory accounts ("Group Financial Statements") for the years
ended 31 December 2024 and 2025, but is derived from those Group Financial
Statements. Statutory accounts for 2024 have been delivered to the Registrar
of Companies and those for 2025 (approved by the Board on 19 February 2026)
will be delivered following the Company's annual general meeting. The external
auditor has reported on the Group Financial Statements for the year ended 31
December 2025 and their report did not contain any modification.
The Board of Directors of SEGRO plc met on 19 February 2026 and approved the
Group Annual Report and Group Financial Statements for the year ended 31
December 2025. Certain parts of the Group Annual Report and Group Financial
Statements have not been included in this announcement..
Forward-Looking Statements: This announcement contains certain forward-looking
statements with respect to SEGRO's expectations and plans, strategy,
management objectives, future developments and performance, costs, revenues
and other trend information. All statements other than historical fact are, or
may be deemed to be, forward-looking statements. Forward-looking statements
are statements of future expectations and all forward-looking statements are
subject to assumptions, risk and uncertainty. Many of these assumptions, risks
and uncertainties relate to factors that are beyond SEGRO's ability to control
or estimate precisely and which could cause actual results or developments to
differ materially from those expressed or implied by these forward-looking
statements. Certain statements have been made with reference to forecast
process changes, economic conditions and the current regulatory environment.
Any forward-looking statements made by or on behalf of SEGRO are based upon
the knowledge and information available to Directors on the date of this
announcement. Accordingly, no assurance can be given that any particular
expectation will be met and you are cautioned not to place undue reliance on
the forward-looking statements. Additionally, forward-looking statements
regarding past trends or activities should not be taken as a representation
that such trends or activities will continue in the future. The information
contained in this announcement is provided as at the date of this announcement
and is subject to change without notice. Other than in accordance with its
legal or regulatory obligations (including under the UK Listing Rules and the
Disclosure Guidance and Transparency Rules of the Financial Conduct
Authority), SEGRO does not undertake to update forward-looking statements,
including to reflect any new information or changes in events, conditions or
circumstances on which any such statement is based. Past share performance
cannot be relied on as a guide to future performance. Nothing in this
announcement should be construed as a profit estimate or profit forecast. The
information in this announcement does not constitute an offer to sell or an
invitation to buy securities in SEGRO plc or an invitation or inducement to
engage in or enter into any contract or commitment or other investment
activities.
Neither the content of SEGRO's website nor any other website accessible by
hyperlinks from SEGRO's website are incorporated in, or form part of, this
announcement.
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
or visit
www.rns.com (http://www.rns.com/)
.
RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
. END FR AKCBDDBKBBBD
Copyright 2019 Regulatory News Service, all rights reservedRecent news on SEGRO
See all newsREG - SEGRO PLC - Director/PDMR Shareholding
AnnouncementREG - SEGRO PLC - Results for the year ended 31 December 2025
AnnouncementREG - SEGRO PLC - Directorate change
AnnouncementREG - SEGRO PLC - Holding(s) in Company
AnnouncementREG - SEGRO PLC - Holding(s) in Company
Announcement