SEGRO (SGRO) H1 2025 earnings summary

Executive summary

• Achieved 7.8% like-for-like net rental income growth, supporting 6.5% earnings and 6.6% dividend per share growth year-over-year.

• First NAV per share increase since mid-2022, with portfolio value up 0.5% to £18.5 billion and adjusted NAV per share at 910p.

• Significant progress in data centre platform, including a joint venture for a fully fitted data centre and plans for a 2.3GW+ power bank.

• Strong balance sheet, disciplined capital allocation, and improving pre-let development pipeline.

• Interim dividend increased to 9.7p, up 6.6% year-over-year.

Financial highlights

• Adjusted profit before tax rose 11% to £252m; adjusted EPS up 6.5% to 18.1p; dividend per share up 6.6% to 9.7p.

• Portfolio value at £18.5bn; adjusted NAV per share at 910p; IFRS NAV per share at 891p.

• Net rental income (proportionally consolidated) up 7.2% to £328m; like-for-like NRI up 7.8%.

• Loan-to-value ratio at 31%; net debt:EBITDA at 8.8x; interest cover ratio 4.3x.

• Total cost ratio improved to 19%; average debt maturity 6.6 years; average cost of gross debt 2.9%.

Outlook and guidance

• Rent roll growth expected from £116m reversion, reducing vacancy (£56m), and further market rental growth (2–4% for big box, 3–6% for urban portfolio).

• Development pipeline to deliver additional rent, with £406m of new rent opportunity at 7–8% yield and £123m of land options.

• Data centre expansion offers significant value creation, with 1.8GW+ of additional power capacity in key European zones.

• Expectation of continued mid- to high-single-digit EPS and dividend growth over the medium term.

• Ongoing focus on disciplined capital allocation and leveraging structural trends in urbanisation and digitalisation.