SEGRO (SGRO) Q2 2026 earnings summary

Executive summary

• Achieved strong H1 2026 financial performance with 6.6% EPS growth, 5.3% like-for-like net rental income growth, and robust occupier demand across industrial, logistics, and data centre segments.

• Secured £53 million of new headline rent, with £24 million from new pre-lets and £27 million from leasing and reversion capture.

• Continued execution of data centre strategy, including new joint ventures, power bank expansion to 3.0GVA, and infrastructure advancements.

• Maintained occupancy at 94.5% and customer retention at 77%, with 58% of new development completions already leased.

• Focused update due to ongoing offer period, including a fourth acquisition proposal from Prologis.

Financial highlights

• Adjusted profit before tax rose 6.3% to £268 million; adjusted EPS up 6.6% to 19.3p.

• Dividend per share increased 4.5% to 10.14p.

• Like-for-like net rental income grew 5.3%, with UK up 6.6% and Continental Europe up 3.3%.

• EPRA NTA per share declined 2.5% to 902p; portfolio valued at £19bn, down 1.2% due to higher yields.

• LTV stable at 31%; net debt to EBITDA at 8.3x; average cost of debt at 2.8%.

Outlook and guidance

• Over £1bn of incremental income opportunity identified across standing portfolio, development pipeline, and data centres.

• Development capex for FY26 expected at £500–£550 million, with completions and prelet pipeline supporting future volumes.

• Substantial embedded growth opportunity with £157 million of additional rental income from rent reversion and leasing vacant space.

• Development yield on completions at 6.5%; adjusted EPS expected to progress from 36.6p in 2025 to ~50.0p by 2030.

• Focus remains on disciplined capital allocation, cost control, and selective disposals to fund investments.