Segro Stock Earnings Reports

2025 was a strong operational and financial year for SEGRO, with improving occupier sentiment carrying into 2026. Key operating metrics: record new headline rent of £99m (including £33m from development signings), like-for-like net rental income growth of ~6%, adjusted EPS up 6.1%, adjusted NAV per share +2% and portfolio valuation +1% on a like‑for‑like basis. Occupancy improved to 94.9% and SEGRO captured material reversion (36% uplift on reviews/renewals, 46% in the U.K.). Balance sheet remains conservative: LTV ~31%, net debt/EBITDA ~8.4x, average debt maturity ~6 years and ~€1.9bn of undrawn facilities. Capital allocation priorities remain development on existing land (targeted development yields generally 7–8%, >10% on new CapEx), selective acquisitions, and active recycling of non-core assets (disposals expected at or above the 1–2% long‑term run rate). 2026 development CapEx guidance is €450–550m (including ~€150m infrastructure/power upgrades). SEGRO is materially scaling a data‑center platform: an exceptional powered land and power position (c.2.5GW total, with ~0.5GW operational and ~1.1GW route to pre‑lease within 3 years), a JV with Pure Data Centers, and a strategy to deliver a mix of powered shells and increasingly fully fitted, JV‑funded data centers (targeting 1–2 data centers p.a.). Fully fitted projects are intended to be pre‑let, net‑leased and largely funded via project financing/JV structures to limit SEGRO cash equity. Management expects improving leasing momentum across U.K. and Continental markets, supportive structural demand drivers (e‑commerce, urbanization, supply‑chain optimization), and significant upside from reversionary potential, vacant recently developed space and the broader land bank.