SEGRO (SGRO) H2 2025 earnings summary

Executive summary

• Achieved record GBP 99 million in new headline rent and 6% like-for-like net rental income growth in 2025, despite challenging macro conditions.

• Adjusted earnings per share rose 6.1%, adjusted NAV per share up 2%, and dividend increased 6.1% year-over-year.

• Delivered strong operational and financial performance for FY 2025, with momentum building in occupier markets and a clear path for significant growth in industrial, logistics, and data centre platforms.

• High-quality, reversionary portfolio and profitable land bank support continued rental growth and value creation.

• Progressed Responsible SEGRO strategy, reducing carbon intensity, refreshing net zero targets, and delivering 54 community projects.

Financial highlights

• Adjusted profit before tax reached GBP 509 million, up 8.3% year-over-year.

• Adjusted earnings per share rose 6.1% to 36.6p; dividend per share also increased 6.1% to 31.1p.

• Portfolio valuation at share grew to GBP 19 billion, up 1% from the previous year.

• Like-for-like net rental income increased 6%, with UK at 6.2% and Continental Europe at 5.8%.

• Record GBP 99 million of new headline rent contracted and GBP 33 million of reversion captured.

Outlook and guidance

• Expect like-for-like rental growth to remain strong, supported by reversion capture, leasing vacant space, and active asset management.

• Development CapEx for 2026 guided at GBP 450–550 million, including GBP 150 million for infrastructure and data centre power upgrades.

• Disposals in 2026 expected at or above the upper end of the 1–2% long-term run rate, to fund higher-return opportunities.

• Rental growth guidance: 2–4% for big box logistics, 3–6% for urban assets over the medium term.

• Development yields targeted at 7–8% and new money yields above 10%.