Strategic report
Full year results with David Sleath
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Our strategy and business model
Our business model and the consistent application of our strategy have created a portfolio of irreplicable pan-European industrial and logistics properties and data centres, as well as an exceptional land bank. It all starts with a deep understanding of our customers’ needs and the markets in which we operate.
With these insights our market-leading operating platform expertly manages our assets to drive growth, unlock value and seek new opportunities. Our strategy shapes both our day-to-day decisions and our long-term ambitions, and it provides a clear direction that, together with our strong culture, empowers us to deliver on our Purpose
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Supportive structural trends
We are focused on the industrial sector where there are long-term structural trends driving occupier demand from a diverse range of business sectors
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65%
of our portfolio is in supply-constrained urban areas
Restricted land availability limits supply response
Weighted towards urban warehousing where there are significant barriers to entry due to land supply and increasingly challenging planning regimes
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19
Offices in 9 countries
Market-leading pan-European operating platform
Our teams on the ground in each market build close relationships with our customers and other business partners, helping us to drive value and create new opportunities
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£22bn
Assets under management
Prime portfolio of existing assets
One of the most modern and sustainable pan-European portfolios focused on the most attractive European markets
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£408m
of potential rent from our land bank
Exceptional land bank for development
Our extensive land bank is a rare and valuable asset and an important source of growth, both in terms of the physical assets that it allows us to develop and the rental income that those buildings generate
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31%
Loan to value ratio
Strong balance sheet
A balance sheet with modest leverage and a diverse, long duration debt profile that provides us with plenty of capacity for investment
Our portfolio
SEGRO owns, manages and develops industrial and logistics space across the UK and Continental Europe. Our portfolio includes both urban and big box warehouses, as well as data centres.
2% of our portfolio consists of industrial land used for non-warehouse purposes, for example car showrooms, self-storage facilities, hotels and offices.
Urban warehouses
Enabling a diverse range of goods and services to be delivered efficiently and sustainably across growing cities
55%
Urban warehouses by value
Urban warehouses are located in, or close to, major population centres and business districts and provide flexible space for many different activities. They are used by a wide variety of businesses that need rapid access to end customers and skilled labour. They are generally situated close to main routes into the city.
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SEGRO Park Köln City, Germany
Big box logistics
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SEGRO Logistics Park Oberhausen, Germany
Enabling our customers to optimise and modernise their distribution networks
35%
Big box by value
Big box warehouses are typically used for storing and processing goods for regional, national and international distribution and are much larger than urban warehouses. They are often located far from the end customer but on major transport routes (mainly motorways and around ports, rail freight terminals and airports) to allow rapid transit.
Data centres
Enabling the digital revolution and contributing to the upgrade of Europe’s digital infrastructure
8%
Data centres by value
Data centres house IT infrastructure for building, running and delivering applications and services, including the Cloud. They are often located close to densely populated areas and major financial centres in clusters known as Availability Zones.
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Slough Trading Estate, UK