KEY MESSAGES
- Strong operational performance with a record £99 million of new contracted rent commitments and 6.0 per cent growth in like-for-like net rental income.
- 6.1 per cent growth in Adjusted earnings and dividends per share.
- Momentum building in occupier markets with increased enquiry levels and active negotiations for further pre-lets.
- Primed for further sustainable growth through the capture of rent reversion, profitable development and exploitation of our exceptional data centre pipeline.
Commenting on the results David Sleath, Chief Executive of SEGRO, said:
“SEGRO delivered a strong performance in 2025. We signed a record level of new rent through the excellent asset management of our existing portfolio and the signing of several large pre-lets, particularly in the second half of the year as structural drivers started to re-assert themselves and demand picked up.
“This momentum has continued into 2026 and we take confidence from the increased enquiry levels and active negotiations that we are having with a diverse range of industrial, logistics and data centre occupiers for both new and existing space.”
Strong operational performance delivered 6 per cent growth in earnings and dividends
- Record £99 million of new headline rent secured (2024: £91 million), including £66 million of leasing and reversion capture in the existing portfolio and £33 million of development signings (£26 million of which were new pre-lets, mostly signed in the second half of 2025).
- Strong asset management performance resulted in 6.0 per cent like-for-like net rental income growth, with the UK delivering an average uplift on rent reviews and renewals of 46 per cent.
- Estimated Rental Value (ERV) growth of 3.1 per cent in the UK, with Park Royal and Heathrow particularly strong at 4.7 per cent, and 1.0 per cent in Continental Europe.
- Occupancy increased 90 bps to 94.9 per cent (2024: 94.0 per cent) as we retained customers (2025: 82 per cent, 2024: 80 per cent) and let recently refurbished and speculatively developed space. Our continued focus on Operational excellence drove a strong 91 per cent customer satisfaction score.
- Development completions added £29 million of potential new headline rent, 93 per cent of which is already leased, delivered at a development yield of 8.2 per cent.
- Successful execution of our Responsible SEGRO initiatives, including: a 17 per cent reduction in our corporate and customer carbon emissions; delivering great outcomes from our Community Investment Plans in our local communities; and, continued investment into Nurturing talent within our market-leading operating platform.
- Adjusted pre-tax profit increased by 8.3 per cent to £509 million (2024: £470 million) and Adjusted earnings per share increased by 6.1 per cent to 36.6 pence (2024: 34.5 pence).
- 2025 full year dividend increased 6.1 per cent to 31.1 pence (2024: 29.3 pence). Final dividend increased by 5.9 per cent to 21.4 pence (2024: 20.2 pence).
- Adjusted NAV per share up 2.0 per cent to 925 pence (31 December 2024: 907 pence). Over the full year the portfolio valuation increased 1.0 per cent (2024: 1.1 per cent) on a like-for-like basis.
Primed for further sustainable growth
- SEGRO’s modern, sustainable portfolio, focused on Europe’s most attractive and supply-constrained industrial, logistics and data centre markets, is well-positioned for growth as structural drivers reassert themselves and occupier activity levels increase.
- Existing portfolio offers £152 million of embedded income growth opportunity: £99 million of rent reversion (£33 million of which is available to capture in 2026) and £53 million of rent available through letting vacant space.
- Development projects under construction or in advanced negotiations equate to £62 million of potential rent, 55 per cent of which is associated with pre-lets, and offer an attractive 7.1 per cent development yield. Multiple further conversations are underway on our ‘construction-ready’ land bank.
- Growth from the existing portfolio and development programme is expected to be compounded by further ERV growth, which, over the medium-term we continue to expect to be in the range of 3 to 6 per cent for our urban portfolio and 2 to 4 per cent for big box logistics assets.
- Significant data centre income and value creation opportunity from one of Europe’s largest banks of powered land (2.5GW, 1.1GW of which is available to pre-let by the end of 2028), focused on key European Availability Zones.
Clear capital allocation priorities, backed by a strong balance sheet
- Development continues to offer the most attractive risk-adjusted returns for our capital: £413 million deployed in 2025 through £387 million of development capex and £26 million of land acquisitions with near-term development potential, complemented by £232 million of selective asset acquisitions in core markets with strong returns potential.
- Development capex for 2026 estimated to be £450 to 550 million, depending on the level of new projects starting in the coming months, including c.£150 million of infrastructure spend.
- Our disciplined approach to capital allocation ensures that we regularly rotate capital into opportunities offering more attractive risk-adjusted returns: after a very active 2024 in terms of disposals (£896 million), we disposed of £57 million of assets and land during 2025 as investment markets were more subdued. We plan for 2026 disposals to be at or above the upper end of our medium to long-term run rate of 1 to 2 per cent of the portfolio.
- Strong balance sheet with moderate leverage: LTV of 31 per cent at 31 December 2025 (31 December 2024: 28 per cent) and net debt:EBITDA 8.4 times (31 December 2024: 8.6 times).
- Average cost of debt 2.6 per cent at 31 December 2025 (31 December 2024: 2.5 per cent).
OUTLOOK
We have strong conviction in the structural trends driving demand for industrial, logistics and data centre space. They led to higher levels of pre-let activity in the second half of 2025 and this momentum has continued into 2026: enquiry levels have increased and we are actively negotiating a strong pipeline of lettings on both existing space and for pre-let developments, including data centres.
Occupiers are prioritising prime locations and the most modern, sustainable assets to help them meet high consumer expectations and improve their operational efficiency. Our focus on Europe’s most attractive and supply-constrained markets – two-thirds in major cities and one-third in key logistics hubs – positions us well to meet their discerning requirements.
Our irreplicable portfolio, exceptional land bank, and one of the largest data centre pipelines in Europe prime us for further sustainable growth ahead. We expect increased activity levels and tightening supply-demand dynamics to drive further rental growth and also have the potential to add:
- £152 million of additional rental income from our standing portfolio via rent reversion (£99 million) and leasing vacant space (£53 million);
- £355 million of new rent from delivering industrial, logistics and powered shell data centre projects on our land bank, with a profitable development yield of 7 to 8 per cent.
Developing fully fitted data centre buildings on suitable sites within our 2.5GW+ powered land bank offers significant additional income and value creation opportunity.
We have the right assets, team and balance sheet, leaving us well placed to capitalise on strengthening occupier markets with multiple levers to drive performance and deliver further compounding growth in earnings and dividends.