SEGRO (SGRO) H2 2025 earnings summary

Executive summary

• Achieved record GBP 99 million in new headline rent and delivered strong operational and financial performance in 2025, with momentum building in occupier markets and a clear path for significant growth in industrial, logistics, and data centre platforms.

• Adjusted earnings per share rose 6.1% year-over-year, and adjusted NAV per share increased by 2% to 925p.

• Improving occupier sentiment and deal activity in H2 2025 continued into 2026, with strong inquiry levels and an active pipeline.

• Maintained disciplined capital allocation and operational excellence, supporting compounding annual growth since 2016.

• Advanced Responsible SEGRO strategy, reducing carbon intensity and delivering 54 community projects.

Financial highlights

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

• Net rental income grew by 8.6% year-over-year, driven by 6% like-for-like rental growth and development completions.

• Full year dividend of GBP 0.311, up 6.1% year-over-year.

• Portfolio valuation increased by 1% on a like-for-like basis to GBP 19 billion, with both U.K. and Continental Europe positive for the first time since 2022.

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

• Rental growth guidance maintained at 2%-4% for big box logistics and 3%-6% for urban assets over the medium term.

• Momentum in occupier markets expected to continue into 2026, with significant growth opportunities in industrial, logistics, and data centre sectors.