SEGRO (LSE:SGRO) reported a robust performance for 2025, achieving record new contracted rent of £99 million and like-for-like net rental income growth of 6.0 per cent. Adjusted earnings per share and dividends per share both increased by 6.1 per cent, supported by strong leasing activity and a high occupancy rate of 94.9 per cent. Development completions, the majority of which were pre-let, generated an attractive yield of 8.2 per cent.
Management emphasised the scale of embedded growth within the existing portfolio, citing opportunities from rent reversion and leasing vacant space, alongside a sizeable pipeline of industrial, logistics and powered shell data centre projects. The group expects these drivers, combined with disciplined capital allocation and moderate leverage, to sustain rental growth and compound earnings and dividends over time.
SEGRO estimates a further £152 million of potential rental uplift from its standing portfolio, in addition to up to £355 million of prospective new rent from developments across industrial, logistics and data centre assets. Targeted development yields are in the 7–8 per cent range. With one of Europe’s largest powered land banks dedicated to data centres, the company plans to increase development capital expenditure in 2026, leveraging its strengthened balance sheet to reinforce its presence in key European markets where demand for logistics and digital infrastructure continues to intensify.
Overall, SEGRO’s outlook reflects solid financial foundations, supportive technical momentum and a valuation viewed as reasonable relative to growth prospects. While macroeconomic headwinds remain a consideration, the company’s strategic positioning in supply-constrained urban and logistics hubs, together with expanding data centre exposure, underpins confidence in its longer-term growth trajectory.
More about SEGRO plc (REIT)
SEGRO plc is a UK-listed real estate investment trust specialising in modern, sustainable industrial, logistics and data centre properties across Europe. Its portfolio is concentrated in prime urban areas and major transport corridors, serving customers seeking energy-efficient space to support e-commerce expansion, resilient supply chains and growing digital infrastructure requirements.
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