Real estate company SEGRO (SGRO) reported its strongest year of lettings take-up in 2025. The FTSE 100 firm specialises in developing sites for logistics, warehousing and data centres.
| Share price: 801p (+0.4%) | PE: 16.2x |
| Market cap: £10.8bn | Yield: 3.9% |
Strong momentum
SEGRO recorded £99 million of new contracted rent commitments and 6% growth in LFL net rental income last year. The firm said momentum was building among occupiers with increasing levels of enquiry and active negotiations for pre-lets.
The headline rent increase included £66 million of leasing and reversion capture in the existing portfolio, and £33 million of development signings. Of these, £26 million were new pre-lets with the majority signed in the second half of 2025.
ERV (estimated rental value) increased by 3.1% in the UK and by 1% in continental Europe. Occupancy increased to 94.9% as the firm retained more customers and let recently refurbished and speculatively developed space.
‘SEGRO delivered a strong performance in 2025 and this momentum has continued into 2026,’ said CEO David Sleath. ‘We take confidence from the increased enquiry levels and active negotiations we are having with industrial, logistics and data centre occupiers for both new and existing space.’
We’ve been banging the drum on commercial property for ages and SEGRO is the biggest UK player by market cap. It has a modern, sustainable portfolio focused on Europe’s most attractive and supply-constrained industrial, logistics and data centre markets.
The existing portfolio offers £152 million of embedded income growth through rent reversion and vacant space. In addition, developments under construction or in advanced negotiations represent another £62 million of potential rent.
The shares have been ‘late developers’, only turning up in September last year. They’ve had a nice run from the low, up around 23%, but they are still well below their old highs.
Read the press release here: https://www.segro.com/investors
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