Annual Report & Accounts 2024
Enabling
extraordinary
things
As SEGRO plc has a secondary listing on the regulated market
of Euronext in Paris, the oicial version of the Company’s Annual
Report and Accounts 2024 has been prepared in the ‘European
Single Electronic Format’ (required to be in XHTML format).
This PDF version (in non-XHTML format) is a reproduction of the
oicial version of SEGRO plc’s Annual Report and Accounts 2024
and both versions are available on the Company’s website.
Contents
2% other uses of
industrial land
Overview
An introduction to our business and
investment proposition.
Our Purpose 1
About SEGRO and 2024 highlights 2
Our Purpose in action 8
Strategic Report
A deep dive into our business: an
overview of our business model,
strategy and KPIs, a review of our 2024
performance, and some thoughts on
the outlook for 2025 and beyond.
Strategic Report 10
Chief Executive’s statement 11
Our business model
and strategy 16
Our stakeholders 18
Responsible SEGRO 21
Key performance indicators 30
Performance review 35
Regional updates 42
Financial review 44
Managing risks 50
Principal risks 54
Viability statement 61
Non-inancial information
and sustainability information
statement 62
Streamlined energy and
carbon reporting 63
Climate-related inancial
disclosures 64
Governance
An overview of our corporate
governance structure, policies and
practices as well as the key activities
undertaken by the Board and its
Committees.
Governance Report 72
Chair’s introduction to
governance 73
Application of the UK Corporate
Governance Code 2018 75
Board leadership and Company
purpose 76
Division of responsibilities 83
Stakeholders 84
External Board performance
review 89
Nomination Committee Report 91
Audit Committee Report 98
Directors’ Remuneration Report 105
Directors’ Remuneration Policy 123
Directors’ Report 132
Statement of Directors’
responsibilities 134
Financial Statements
Independent Auditors’ Report
to the members of SEGRO plc 135
Group Income Statement 142
Group Statement of
Comprehensive Income 142
Balance Sheets 143
Statements of Changes in Equity 144
Cash Flow Statement 146
Notes to the Financial Statements 147
Five-year inancial results 191
Further Information
Further information 192
Shareholder information 193
Glossary of terms 194
The Directors present the Annual
Report for the year ended 31 December
2024, which includes the Strategic
Report, Governance Report and
audited Financial Statements for the
year. References to ‘SEGRO’, the
‘Group’, the ‘Company’, ‘we’ or ‘our’ are
to SEGRO plc and/or its subsidiaries,
or any of them as the context may
require. Pages 105 to 131 inclusive
comprise the Directors’ Remuneration
Report and Directors’ Remuneration
Policy and pages 132 to 133 inclusive
comprise the Directors’ Report. These
have been drawn up and presented
in accordance with English company
law and the liabilities of the Directors,
in connection with these sections,
and shall be subject to the limitations
restrictions provided by such law.
The Annual Report contains
forward-looking statements. For
further information see page 192.
Urban warehouses are located in, or close to,
population centres and business districts
and provide lexible space for many 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.
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 house IT infrastructure
for building, running and delivering
applications and services, including the
Cloud and Artiicial Intelligence. They are
often located close to densely populated
areas and major inancial centres in
clusters known as Availability Zones.
Urban
warehouses
Asset type by value
57%
Big box
warehouses
Asset type by value
33%
Data
centres
Asset type by value
8%
SEGRO.com
For more information on
SEGRO’s activities and
performance please
visit our website:
www.SEGRO.com
Responsible SEGRO
For more information on
Responsible SEGRO
go to page 21
We create the
space that enables
extraordinary
things to happen
Real estate
to support the
digital economy
Supporting the
growth of high-
performing cities
Scan here to see
the video
www.SEGRO.com/
ara24/bigbox
Scan here to see
the video
www.SEGRO.com/
ara24/urban
Scan here to see
the video
www.SEGRO.com/
ara24/datacentres
We are both a creator of exceptional buildings
and an enabler for our stakeholders, particularly
our customers, employees, and local communities,
to achieve extraordinary things. For over 100 years,
we have anticipated and responded to their
evolving priorities, creating a portfolio of high-
quality assets across the UK and Europe.
Striving for the highest standards of innovation,
sustainable business practices and enabling
economic and societal prosperity underpins our
ambition to be the best property company and
is evidenced in both our day-to-day and longer
term decision making.
Our Purpose
See more on our Purpose in action:
pages 8, 29, & 34
Transforming
supply chains
Creating
logistics parks
for the future
Modern, lexible
spaces that meet
the needs of
ambitious cities
An authority on
delivering powered
shell data centres
in Europe
1 | SEGRO plc Annual Report & Accounts 2024 Overview Strategic Report Governance Financial Statements Further Information
Positioned
for long-term
success
Our simple but eective business model and the
consistent application of our clear strategy have
created a portfolio of irreplaceable pan-European
warehouses and data centres, as well as an
exceptional land bank. They are expertly
managed by our market-leading operating
platform that drives growth and unlocks value.
This is particularly valuable in a sector where
powerful, long-term structural drivers support
demand for our space and limit competition.
We have the potential to more than double
our rental income through proactive asset
management of our existing assets and the
development of our land bank, supported by a
strong balance sheet with plenty of irepower.
About SEGRO
Read more about long-term structural trends,
supporting demand for the spaces we create:
pages 4 to 5
Find our more about our business model
and strategy:
pages 16 to 17
Find out more about Responsible SEGRO:
pages 21 to 28
Our business model
and strategy
We have a compelling investment
proposition and our ongoing
commitment to Responsible
SEGRO ensures we deliver value
for all of our stakeholders.
2.
Acquisitions
6.
Asset
recycling
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Market
analysis
4.
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& customer
management
3.
Development
5.
Portfolio
review
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2 | SEGRO plc Annual Report & Accounts 2024 Overview Strategic Report Governance Financial Statements Further Information
Our investment
proposition
>35
dierent sectors
supported
67%
of our portfolio is in
supply constrained
urban areas
19
oices in
9 countries
£20.3bn
Assets under
Management
£422m
of potential rent
from our land bank
28%
Loan to value ratio
About SEGRO continued
Weighted towards urban
warehousing where there are
signiicant barriers to entry due
to land supply and increasingly
challenging planning regimes.
We are focused on the
industrial sector where there
are long-term structural
trends driving occupier
demand from a diverse
range of business sectors.
One of the most modern and
sustainable pan-European
portfolios focused on the most
attractive European markets.
A balance sheet with modest
leverage and a diverse, long-
duration debt proile that
provides us with plenty of
capacity for investment.
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.
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.
Supportive
structural
trends
Restricted land
availability
limits supply
response
Market-leading
pan-European
operating
platform
Exceptional
land bank for
development
Strong
balance
sheet
Prime portfolio
of existing
assets
3 | SEGRO plc Annual Report & Accounts 2024 Overview Strategic Report Governance Financial Statements Further Information
About SEGRO continued
All four of these structural trends
are having a powerful impact on
demand for industrial space, where
two or more of them combine the
eect is even greater.
Long-term
structural trends,
supporting demand
for the spaces
we create
The digital revolution has led to signiicant
changes in consumer behaviours and in the
way people communicate and work. Increased
e-commerce penetration across Europe has
led to retailers needing to adapt distribution
networks to facilitate omni-channel and the
growth of logistics to support pure play
e-commerce. The explosion of data and
adoption of Al is driving expansion of data
centre infrastructure across Europe.
Why SEGRO is well positioned:
– Our portfolio of big box and urban
warehouses provides space for both
fulillment and last-mile distribution.
– We own the largest hub of data centres in
Europe and have a 2.3GW land-enabled
power bank focused on Europe’s core
Availability Zones.
Major cities consistently grow faster than their
home countries, which increases demand for
housing as well as goods and services to
support these larger populations. Warehouses
are key to delivering many of these goods and
services, yet industrial land is increasingly
being used for residential development and
other uses (including data centres).
Why SEGRO is well-positioned:
– Two-thirds of our portfolio is in urban
locations and beneits from this structural
shortage of supply.
– We have an incredibly diverse customer
base, many of them providing value-add
goods and services.
– Our urban customers need to be located
close to city centres for rapid access to their
end customers and skilled labour.
Learn more about how the spaces we
create enhance local communities and protect
the environment:
page 29
Learn more about the extraordinary things our
customers do in the spaces we create:
page 34
Source: ONSSource: Euromonitor
19%
e-commerce penetration
across our markets by 2028,
a 16% increase from 2024
16%
expected increase in London’s
population over the next 20 years
1
Digitalisation
2
Urbanisation
4 | SEGRO plc Annual Report & Accounts 2024 Overview Strategic Report Governance Financial Statements Further Information
About SEGRO continued
Eicient and reliable distribution networks
and supply chains are of vital importance for
successful, modern businesses. They allow
them to deliver superior customer service,
create cost eiciencies and build in resilience;
and require modern warehousing in the
right locations.
Why SEGRO is well-positioned:
– We manage one of the largest and most
modern warehouse portfolios in Europe,
with big box warehouses located along key
transportation routes and in major logistics
hubs, as well as urban warehouses in
major cities.
– Our focus on logistics parks and the
provision of key infrastructure, such as
strategic rail freight interchanges, attracts the
most ambitious and innovative businesses.
Businesses are increasingly focusing on the
impact of their operations on the environment
and the buildings that they occupy play an
important part in this. Our customers are
looking to minimise their own carbon footprints
and reduce their overall occupancy costs.
Buildings need to be sustainable in the long
term and use natural resources eiciently.
Why SEGRO is well-positioned:
– Our Mandatory Sustainability Policy ensures
that we build to the highest sustainability
standards.
– 76 per cent of SEGRO’s portfolio has an EPC
rating of ‘B’ or better and we have an active
programme to upgrade older assets when
the opportunity arises.
– We added a record level of solar to our
rooftops during 2024, taking our installed
capacity to 123 MW.
Source: European Central Bank: Global production and supply chain risks:
insights from a survey of leading companies 4 Source: CBRE European Logistics Occupier Survey 2024
64%
of logistics occupiers are planning
to be net-zero across their property
footprint by 2030
42%
of European irms have nearshored,
friendshored or diversiied production
in the past ive years
3
Supply chain
optimisation
4
Sustainability
5 | SEGRO plc Annual Report & Accounts 2024 Overview Strategic Report Governance Financial Statements Further Information
Our portfolio is located in densely populated
and supply-constrained cities, as well as key
transportation corridors and logistics hubs across
eight European countries.
The composition of our portfolio has been driven
by a deep understanding of our customers’
needs, as well as our in-depth analysis of key
regional characteristics, such as population
density and infrastructure networks. Our teams
on the ground in each of our key regions
supplement their local knowledge with data
driven insights from our Location Assessments,
which draw upon millions of data points across
an ever-evolving European market.
Our buildings are used by a diverse
customer base, many of whom we
work with across Europe.
Our top 20 customers
A diverse customer base including 1,369
businesses from >35 dierent sub-sectors
Geographical split by value (SEGRO share)
A strategically
located portfolio
About SEGRO continued
Urban
ware-
house
Big box
ware-
house
Data
centre
1 Amazon
2 Deutsche Post DHL
3 Virtus
4 Royal Mail Group
5 Fedex
6 Worldwide Flight
Services
7 GXO
8 British Airways
9 Global Technical
Realty
10 Equinix
11 Maersk
12 CEVA
13 Tesco Group
14 La Poste (DPD)
15 Iron Mountain
16 Evri
17 DP World
18 Ocado
19 Swissport
20 SDA
Transport and logistics 23%
Retail (physical, online and hybrid) 18%
Food and general manufacturing 15%
Technology, media and telecoms 11%
Post and parcel delivery 10%
Wholesale distribution 9%
Services and utilities 7%
Other 7%
1 UK 65%
2 France 11%
3 Germany 10%
4 Italy 5%
5 Poland 4%
6 Netherlands 2%
7 Spain 2%
8 Czech Republic 1%
1.
2.
3.
4.
5.
6.
7.
8.
Located in Europe’s most attractive,
supply-constrained markets
6 | SEGRO plc Annual Report & Accounts 2024 Overview Strategic Report Governance Financial Statements Further Information
A strong operating performance and excellent
progress with our Responsible SEGRO targets.
Solar capacity
123MW
2023: 59 MW
Employee volunteering days
700
2023: 707
Average embodied
carbon intensity
318 kgCO
2
e/sq m
2023: 331 kgCO
2
e/sq m
Uplift from rent
reviews and renewals
34%
2023: 31%
Development completions
374,700 sq m
2023: 625,700 sq m
Customer satisfaction
86%
2023: 88%
Investment into
portfolio
£925m
2023: £931m
New headline rent
contracted
£91m
2023: £88m
‘Your Say’
engagement score
86%
2023: 89%
Delivering value
for all of our
stakeholders
About SEGRO continued
7 | SEGRO plc Annual Report & Accounts 2024 Overview Strategic Report Governance Financial Statements Further Information
Creating
extraordinary
spaces across
our portfolio
We challenge ourselves to pursue excellence
in every aspect of our business. This ensures
that we think creatively, innovate, explore new
ways to serve our customers, challenge market
norms, and strive to stay one step ahead of
the competition.
In this year’s Annual Report & Accounts we
have highlighted three assets, one from each
of our portfolio segments (urban, big box and
data centres), and explore how these spaces
that we have created are enabling extraordinary
things to happen.
Our Purpose in action
Learn more about how the extraordinary things
our customers are doing on these estates on:
page 34
Learn more about how these assets are
enabling extraordinary things for all our
stakeholders on:
page 29
Sustainable growth, thriving economies, and
meeting the needs of growing populations rely on
optimised and eicient supply chains.
SEGRO’s development-led approach enables
delivery of sustainable, lexible warehouse space
for our diverse range of customers and critical
infrastructure to help move goods eiciently.
SEGRO Logistics Park East Midlands Gateway
(‘SLPEMG’) is a 700-acre site which was
transformed, with zero waste to landill, into
a logistics park for the future. Connected by a
Strategic Rail Freight Interchange, SLPEMG enables
11 customers and 7,000 workers to move millions
of goods and parcels.
The on-site rail terminal, operated by Maritime,
transports goods across the UK, linked by rail to
other strategic rail freight interchanges and major
UK ports such as Southampton, Felixstowe, London
Gateway and the Channel Tunnel. Every tonne of
freight transported by rail emits 76 per cent less
carbon compared to road haulage.
Transforming
supply chains
Logistics parks
of the future
Scan here to see the video
www.SEGRO.com/ara24/bigbox
8 | SEGRO plc Annual Report & Accounts 2024 Overview Strategic Report Governance Financial Statements Further Information
Our Purpose in action continued
The rapidly advancing digital economy is driving
innovation and global connectivity, with data
centres serving as the essential backbone for digital
services, including websites, apps, cloud
computing, business operations and increasingly
Artiicial Intelligence.
SEGRO is a leading enabler of this critical
infrastructure with over 20 years’ experience
delivering powered shell warehouses on the
Slough Trading Estate.
The Trading Estate is now home to 31 data centres
(including one under construction), with a headline
rent of £55m (8 per cent of the Group), and is
Europe’s largest cluster of data centres. Proximity,
Power and Planning are the key elements of a
successful data centre development strategy and
the Trading Estate has all three of these, with the
Simpliied Planning Zone creating a signiicant
competitive advantage. SEGRO is well placed to
continue unlocking the data centre potential that
we have in Slough as well as in other key
Availability Zones across Europe, with our 2.3GW
land-enabled power bank.
Growing European cities increase demand for
goods and services as well as employment.
SEGRO is a leading owner and developer of
modern, sustainable urban warehouse space,
located on the edge of some of Europe’s largest
cities. Our spaces are carefully designed to help
enhance our customers’ performance and deliver
tangible value for the communities in which they
are located.
SEGRO Park Berlin Airport epitomises this
approach. Located near Berlin Brandenburg
Airport, we created a park comprising a mix of light
industrial and logistics warehouses, ranging from
500 to 17,000 sq m. The park incorporates
sustainable building practices such as photovoltaic
systems and market-leading DGNB (German
Sustainable Building Council) certiication. It is now
home to 77 customers and a greater than 2,000
strong workforce serving Berlin and beyond.
Real estate to support
the digital economy
Supporting the growth
of high-performing cities
An authority on delivering
powered shell data centres
in Europe
Modern, lexible spaces
that meet the needs of
ambitious cities
Scan here to see the video
www.SEGRO.com/ara24/urban
Scan here to see the video
www.SEGRO.com/ara24/datacentres
9 | SEGRO plc Annual Report & Accounts 2024 Overview Strategic Report Governance Financial Statements Further Information
Responsible SEGRO lies at the
heart of our strategy. It focuses
on three priorities which we
have identiied as enabling us
to make the greatest business,
environmental and social
contribution.
Our simple but eective
business model, combined
with our clear and consistent
strategy, supported by our
strong culture and Values, are
key to our ambition of becoming
the best property company.
Performance
review
Strategic Report
Our business performed well
during 2024, delivering growth
through both the existing
portfolio and our development
programme.
Responsible
SEGRO
Our strategy and
business model
In this section we review SEGRO’s
performance during 2024 and discuss its
future prospects. We also show how our
business model creates value for all of our
stakeholders, how our strategy drives our
performance and how our responsibility
that goes beyond the space we own
continues to dierentiate us.
Chief Executive’s statement 11
Our business model and strategy 16
Our stakeholders 18
Responsible SEGRO 21
Key performance indicators 30
Performance review 35
Regional updates 43
Financial review 44
Managing risks 50
Viability statement 61
Non-inancial information and
sustainability information statement 62
Streamlined energy and
carbon reporting 63
Climate-related inancial disclosures 64
Find out more about
Responsible SEGRO:
page 21
Find out more about
our strategy:
page 16
Find out more about our
performance in 2024:
page 35
10 | SEGRO plc Annual Report & Accounts 2024 Overview Strategic Report Governance Financial Statements Further Information
Chief
Executive’s
statement
SEGRO has performed well during 2024.
Our prime portfolio of modern, sustainable
warehouses and data centres, located in the
most attractive and supply-constrained markets
and managed by our market-leading operating
platform, has continued to deliver growth.
We have increased the level of contracted rent
signed and delivered strong operating metrics,
despite the macroeconomic and geopolitical
conditions which impacted wider business
conidence during parts of 2024. This has been
possible due to the application of our clear
strategy to drive performance from our existing
portfolio, allocate capital into the most proitable
development and acquisition opportunities, and
maintain an appropriate and eicient capital
structure. This consistent strategy has ensured
that our business is well-placed to take advantage
of an inlection point in occupier markets.
We are pleased to report a 5.5 per cent increase
in Adjusted earnings per share and we are
therefore recommending a 5.4 per cent increase
in the total distribution to our shareholders to
29.3 pence for 2024 (2023: 27.8 pence) through
payment of a 20.2 pence per share inal dividend.
Highlights of the year included:
– £91 million of new headline rent contracted,
including £38 million from rent reviews,
renewals and indexation in the existing portfolio
as we continue to successfully capture the
reversion embedded within it. Lease events in
the UK delivered a record 43 per cent average
rental uplift from reviews and renewals.
– Development completions equating to
£37 million of potential headline rent, of which
84 per cent has been secured, expected to
deliver a yield on cost of 6.9 per cent. 97 per cent
of these projects have been, or are expected
to be, certiied at least BREEAM ‘Excellent’
(or local equivalent).
– Leveraging our local knowledge and strong
relationships to acquire £431 million of
highly-reversionary assets in core markets
with strong growth potential, and recycle
£896 million of assets and land which oered
less attractive risk-adjusted returns.
– Proactive work to source power connections
and prepare land to support future data centre
development with an increase in our power
bank opportunities to 2.3GW.
– Continued progress in addressing our carbon
footprint. In particular, we reduced the average
embodied carbon intensity of our development
programme by 4 per cent and doubled our
installed solar PV capacity to 123MW.
– Almost 1,000 volunteering days delivered
from projects associated with our Community
Investment Plans (we now have 14 following
the addition of plans in Italy and Spain).
– £907 million equity raise in February 2024
which provided us signiicant irepower to
invest in proitable growth opportunities in
2024 and as we head into 2025.
Scan here to see
the video
www.SEGRO.com/
ara24/David-Sleath
David Sleath
Chief Executive
1 Proportionally consolidated igures and metrics: SEGRO
owns assets both wholly itself and through stakes in
50-50 joint ventures. In the Financial Statements, the
proit from joint ventures is stated as a single igure in
the Income Statement and the net asset value of joint
ventures is stated as a single equity igure on the Balance
Sheet; Note 7 to the Financial Statements provides the
component parts of these igures. In operational terms,
SEGRO does not distinguish between assets held in joint
ventures from those assets which are wholly-owned.
Therefore, unless speciically stated, in the Strategic
Report, performance metrics and inancial igures are
stated relecting SEGRO’s wholly-owned assets and its
share of joint venture assets (known commonly as a
‘proportionally consolidated’ basis). Where the Strategic
Report refers to the area of a property, it is stated at 100
per cent of the space, irrespective of whether the
property is wholly-owned or held in a joint venture.
2 EPRA and Adjusted metrics: The Financial Statements are
prepared under IFRS. SEGRO management monitors a
number of adjusted performance indicators in assessing
and managing the performance of the business which
they believe relect the underlying recurring performance
of the property rental business which is the Group’s core
operating activity. These include those deined by EPRA as
part of their mission to establish consistency of calculation
across the European listed real estate sector. Pages 162 to
163 contain more information about the adjustments and
the reconciliation of these to IFRS equivalents. SEGRO
discloses EPRA alternative metrics on pages 184 to 190.
Adjusted NAV per share is in line with EPRA NTA.
3 Percentage valuation movement during the period
based on the dierence between opening and closing
valuations for all properties including buildings under
construction and land, adjusting for capital expenditure,
acquisitions and disposals. More details are provided on
page 35 and Table 3 in the Supplementary Notes.
Financial highlights
1
Adjusted proit
2
before tax
£470m +14.9%
2023: £409m
Adjusted earnings per share
2
34.5p +5.5%
2023: 32.7p
Adjusted NAV per share
2
907p
2023: 907p
Portfolio value
3
£17.8bn +1.1%
2023: £17.8bn
IFRS proit before tax
£636m
2023: £263m loss before tax
IFRS earnings per share
44.7p
2023: (20.7)p
IFRS NAV per share (diluted)
889p
2023: 886p
Loan to value ratio
28%
2023: 34%
11 | SEGRO plc Annual Report & Accounts 2024 Overview Strategic Report Governance Financial Statements Further Information
A bird’s eye view of 2024
Occupier markets remain in balance
and are reaching an inlection point
Two-thirds of our portfolio is located in Europe’s
largest, fastest growing and most densely
populated cities. Our urban warehouse portfolio
attracts a highly diverse customer base which
provide value-add goods and services and which
need to be within easy reach of their customers
and skilled employees. These dynamic
businesses tend to have greater pricing power,
making them less sensitive to short-term
macroeconomic factors and more focused
on harnessing growth.
We experienced good levels of occupier demand
during 2024, particularly in the inal part of the
year. As a result we added new customers in
fast-growing sectors such as robotics and
pharmaceuticals, and saw existing customers
move into larger premises to meet their growth
ambitions or into our refurbished and newly
developed space to suit their wider business
priorities, not least meeting their sustainability
ambitions. Our German urban portfolio
performed particularly well, with strong demand
for our newly developed space in and around
some of Germany’s largest cities. Customers
located in our UK urban markets have been
discerning around their real estate decision
making over the past 12 months. Many of them
are very location sensitive so have renewed
leases on their existing space, whilst others have
been expanding. A small number, often lower
margin businesses or those who can be more
lexible around location, have opted to move out
to lower cost more secondary markets but this
remains limited.
The supply situation in most of our urban
environments remains tight, meaning that rental
values continue to rise at more sustainable levels
than we saw during the pandemic. Land in
major European cities remains in short supply
and is shrinking, not least as a result of planning
regimes which often favour alternative
property types, most notably residential, and
green belt land remains very diicult to unlock.
This has capped the delivery of new speculatively
built space, which has helped to keep supply of
new space in our chosen sub-markets in-check.
The other one-third of our portfolio is big box
warehouses, located in key logistics hubs and
along major transportation routes, the most
strategic locations for customers looking to
optimise their supply chains and improve
distribution networks. The pandemic years
resulted in exceptional demand for this type of
space. We were always mindful that the levels
of demand seen during this period were likely to
be unsustainable and recent macroeconomic
and geopolitical conditions have accelerated the
normalisation, resulting in lower pre-let leasing
volumes during 2024. Despite this, data released
recently by Savills indicates that European big
box take-up was 4 per cent higher than the
pre-pandemic period of 2015–2019.
Supply of big box logistics product continued to
gradually increase into the irst half of 2024 as an
elevated amount of new speculatively built space
was delivered. This response was stronger in
some markets than others: market vacancy rates
have increased more in the UK and Poland than
in France and Germany, for example, but they
remain below historical averages. Lower levels of
new construction starts over the past 18 months
have meant that additional supply is now being
absorbed and vacancy rates have likely peaked
across most of our markets. Accordingly, the
supply-demand outlook appears set to
strengthen from here.
Across both our urban and big box markets, our
conversations with customers tell us that they are
continuing to focus on adapting their businesses
for increased levels of e-commerce penetration,
optimising their supply chains (manufacturers
were the largest takers of space in Europe during
2024) and improving the carbon footprint of their
businesses. These structural drivers remain
important and should result in an acceleration
of occupier activity, particularly as business
conidence improves in response to evolving
macroeconomic conditions and greater
political certainty.
Indeed, during the last months of 2024 we saw
a pick-up in enquiry levels for both our urban and
big box space across all of our markets. Heading
into 2025 we therefore have a number of advanced
conversations for lettings on existing space and
for pre-lets.
As a result of these dynamics, we saw continued
rental growth for prime industrial space at rates
similar to sustainable, pre-pandemic levels, and
we expect this to strengthen as occupier
demand accelerates.
Standing portfolio driving performance,
land bank primed and ready to respond to
pick up in occupier demand
Our focus on Operational excellence has been
key to unlocking the reversionary potential within
our portfolio, most of which sits within our UK
assets. Our prime portfolio and our active
approach to managing our estates and working
with our customers has helped us capture a 43
per cent uplift on rent reviews and renewals in the
UK (34 per cent across the Group) whilst
maintaining high levels of retention.
We have continued to take back older, urban
space when the opportunity arises to refurbish
and redevelop, helping to ensure that our
portfolio meets the highest standards, including
sustainability credentials, which are increasingly
important to occupiers. This, combined with the
completion of some speculative schemes that
we started at the peak of the market, has meant
that occupancy has reduced to 94 per cent
(2023: 95 per cent), at the lower end of our target
94 to 96 per cent range. Around half of this is
within our London portfolio, where we have
the most opportunities for such repositioning.
We are inding that when we return this newly
refurbished space to market, we are capturing
signiicant rental uplifts and letting the space
faster, showing that this asset management
activity is creating value.
Chief Executive’s statement continued
External factors that impact our business
Our business is aected by both cyclical factors
and structural trends. These impact both our
occupier markets and the demand for industrial
and logistics assets in investment markets. In
the ‘Bird’s Eye View’ section of our CEO
statement we explain what they meant for our
business during 2024 and give some thoughts
on how they will shape it going forward.
Cyclical factors
– Macroeconomic environment
– Interest rate cycle
– Competitive supply
Structural drivers (see pages 4 to 5)
– Digitalisation of our economies
– Urbanisation
– Supply chain optimisation
– Sustainability
12 | SEGRO plc Annual Report & Accounts 2024 Overview Strategic Report Governance Financial Statements Further Information
We generally choose to develop our big box
schemes on a pre-let basis to limit development
risk, so reduced pre-let volumes across the
market in 2024 have resulted in a lower level of
development completions, development spend
and new projects than we have seen in recent
years. We recently commenced a speculative big
box scheme in Dortmund based on the shortage
of supply in that region and the encouraging level
of enquiries that we are seeing, and, based on the
conversations we are having with occupiers in
other markets, we expect to see development
volumes pick up as the year progresses. We have
continued to progress our speculative urban
schemes in markets where occupier demand has
been more buoyant, for example in German urban
markets such as Berlin, Cologne and Düsseldorf.
Our development teams have also been working
hard on preparing future schemes, including
progressing large-scale infrastructure works at
our big box developments in Northampton and
Radlett. We are also actively progressing the data
centre opportunity within our portfolio, working
to secure planning and power for the more
than 2.3GW of opportunities that we have
identiied across Europe – the approval of the
Simpliied Planning Zone on the Slough Trading
Estate, with its expanded parameters, will provide
a signiicant competitive advantage in the
delivery of several projects.
Liquidity in investment markets has improved
and asset values appear to have stabilised
Inlation falling back towards central bank targets
and initial interest rate cuts helped liquidity return
to investment markets during 2024 and there
continues to be good investor appetite for
industrial and logistics assets.
This has led to higher investment volumes and
has helped yields to stabilise. Prime yields in
the UK were lat during 2024 (CBRE prime yield
remained at 5.25 per cent throughout the year)
and although there was some small further
outward yield shift in certain European markets
in the irst six months of the year, most markets
were stable in the second half of the year. (CBRE
prime yield France +15 basis points and Germany
+10 basis points, all in the irst six months of 2024).
Finance costs remain elevated which means
most debt-backed buyers have been active in
the higher yielding end of the market. This has
resulted in less capital chasing lower yielding,
prime assets. Investors have been selective,
focusing on assets in the best locations with
the highest sustainability credentials and where
there is reversionary potential that can be
captured quickly.
The outlook for yield and asset valuations is
notoriously hard to forecast. The recent ‘higher
rates for longer’ narrative has so far not had a
discernible impact on investment market liquidity.
However, as active portfolio managers, we do not
rely on yield compression but aim to create value
across the property cycle through asset and
portfolio management and driving rental growth.
Allocating our capital into the opportunities
with the most attractive risk-adjusted returns
We remained disciplined in our allocation of
capital during 2024. Although quieter pre-let
markets across Europe resulted in lower
investment into development than anticipated,
we took advantage of investment market
conditions and attractive pricing to acquire assets
in our core markets which oer potential for
strong mid-term returns.
Our investment teams used their local market
knowledge and strong relationships to identify
opportunities to acquire high-quality assets in
prime markets, where we have less land (and
therefore less development opportunity), which
complement our existing portfolio and oer
strong rental growth potential.
We were also agile in our recycling of capital,
completing almost £900 million of disposals.
Around half of these were sales of assets and
land where we had identiied special or motivated
purchasers, crystallising very attractive proits
versus book value. We also sold other assets that
we had identiied during our annual asset review
process as having weaker future returns potential.
Chief Executive’s statement continued
During the year, we made an all-share oer to
acquire Tritax Eurobox plc, an externally managed
REIT with a portfolio of high-quality big box
warehouses in Continental Europe, whose
shares had consistently traded at a signiicant
discount to its net asset value. Although we were
unsuccessful in buying the company due to a
rival, higher, oer, we instead negotiated a
transaction with the eventual purchaser on
behalf of our joint venture, SELP, for six assets
in Germany and the Netherlands, exchanging
contracts in January 2025 and we expect to
complete on this transaction later in the irst
quarter. This is the part of the portfolio over which
we had the most conviction and our decision not
to counterbid relects our determination to
maintain capital discipline.
Balance sheet remains strong with plenty
of irepower
Our balance sheet is in great shape, with
moderate leverage and limited near-term
reinancing requirements. In the past six months,
we have taken advantage of liquidity in debt
capital markets to issue an eight-year €500 million
Eurobond from SEGRO and a seven-year
Eurobond from SELP at coupons of 3.5 and
3.75 per cent, respectively, which have extended
our average debt maturities and had only a
modest impact on our 2.5 per cent weighted
average cost of debt.
We raised £907 million through an equity placing
in February 2024, to deploy into the most
attractive development and investment
opportunities as activity in occupier markets
picks up. This, alongside the proceeds of
disposals, provides us with signiicant irepower
for continued investment.
Recent acquisitions, deliberate portfolio
management and our ongoing development
pipeline have allowed us to achieve critical mass
in most of our markets, which means we will be
able to deliver increased operational leverage as
we grow our business. We have also been
investing in developing our digital capabilities to
drive cost eiciency and create a more scalable,
technology-enabled platform.
Signiicant value creation opportunity
in data centres
One area that continues to grow regardless of the
macroeconomic environment is the data centre
sector, which is being driven by the exponential
growth in demand for data as consumers
digitalise their day-to-day lives, and companies
increasingly use data to drive their businesses
and move to cloud-based technology solutions.
The growth of generative artiicial intelligence is
also seeing very signiicant investment into data
centres by so-called ‘hyperscalers’.
Demand for data centres comes from two
main sources:
– Cloud: businesses are increasingly transitioning
their IT infrastructure to data centres, ideally
with low latency, enabling applications for end
user businesses and consumers to be run
remotely instead of running software and
storing data locally. This demand is typically
focused on Availability Zones.
– Artiicial Intelligence: this is expected to drive
signiicant growth. Many of the large hyperscalers
(such as Amazon Web Services, Microsoft and
Google) have announced signiicant investment
into their European data centre capacity over
recent months. The ‘inference’ (user-interface)
element of this demand is likely to focus on key
Availability Zones but the ‘generative’ (machine-
learning) element can happen in more remote
locations where power is more readily available.
Supply of new data centres is limited by a lack
of power infrastructure, a shortage of land and
restrictive planning permissions in key Availability
Zones across Europe – which in turn is driving
strong rental growth and high land values.
We have chosen to focus our data centre
investment on key Availability Zones, close to
major urban conurbations and aligned with our
existing urban footprint, which means that we are
positioned to beneit from both growth in the
Cloud as well as the ‘inference’ elements of AI
that require close proximity to end users. It also
means we retain maximum lexibility in this
fast-evolving space.
13 | SEGRO plc Annual Report & Accounts 2024 Overview Strategic Report Governance Financial Statements Further Information
Chief Executive’s statement continued
We have been active in this market for over 20
years, mainly providing powered shells to some
of the world’s largest data centre operators. Our
existing data centre portfolio (including projects
under development) currently represents over
0.5GW of capacity and the rental income equates
to 8 per cent of our headline rent. Today, the vast
majority of this installed capacity is on SEGRO’s
Slough Trading Estate which we believe to be the
largest hub of data centres in Europe. We have
used the knowledge and expertise, and customer
relationships developed through the creation of
this cluster to identify similar opportunities across
our portfolio where we have secured, or believe
we can secure, planning and power.
The total opportunity set or ‘power bank’ on sites
we own where we have, or believe, we can secure
power equates to 2.3GW of potential capacity,
including the 0.5GW in respect of existing data
centres which are operational or under
construction. We expect to add to this over time
as our teams work hard to secure the necessary
power and planning permissions. The Simpliied
Planning Zone status of the Slough Trading
Estate already provides a signiicant competitive
advantage in respect of planning on several of
these sites.
As we already mentioned, our preferred data
centre model to date has been to develop pre-let
powered shells: we provide the real estate and
arrange, with our partners, the power capacity
and our customers it out and operate or
sub-lease the space themselves. All of our
lettings have been to co-locators so far, but we
are having active conversations with hyperscalers
for some of our larger sites.
We expect this approach will continue to be
used for certain opportunities within our
pipeline. However, as the data centre market
and our own opportunity set has evolved and
grown, we see signiicant potential to create
value through developing fully-itted data
centres, initially working alongside partners
who will provide the operational expertise.
As always we will take a disciplined approach to
our capital allocation choices, seeking to deliver
the most attractive risk-adjusted returns on
every opportunity.
During 2024, we sold a land holding in
Continental Europe where we had obtained
planning permission and secured a large
allocation of power, in a location not aligned with
our view of the core Availability Zones. We were
able to crystallise a signiicant proit on cost,
whilst taking no development risk. We also
realised an attractive 100 per cent proit on
development cost from the sale, to an occupier,
of two long-leased data centres in Slough with
limited medium-term growth potential. We also
invested in expanding our pipeline of opportunities
by securing and progressing additional power
connections across Europe.
Committed to creating value for all
of our stakeholders
Our Responsible SEGRO ambitions remain
embedded in the way we do business, and we
continue to work hard towards achieving the
challenging targets that we have set ourselves.
We remain committed to our low-carbon growth
goal: reducing the embodied carbon in our
development programme, improving the energy
eiciency of our buildings and increasing the
solar capacity of our portfolio. During 2024 we
maintained the improvements in the carbon
intensity of our standing assets and reduced the
average embodied carbon intensity of our
development programme to 318 kgCO
2
e/sq m
(a reduction of 4 per cent versus our new 2023
baseline). We also more than doubled our installed
solar capacity to 123MW by installing photovoltaic
arrays on existing buildings as well as new
developments, and have launched a new Energy
Strategy to encourage consistency across the
Group and ensure that we can provide the power
our customers increasingly need. Recognising
that this is a fast-evolving area, we have updated
our carbon reduction targets based on the latest
guidance, introducing a new long-term science-
based target to be net-zero by 2050.
1 SEGRO Logistics Centre Elancourt
Politzer
2 Yusen Logistics, SEGRO Logistics
Park Northampton
1
2
14 | SEGRO plc Annual Report & Accounts 2024
Overview Strategic Report Governance Financial Statements Further Information
We have strong
conviction in the
enduring nature of
the structural trends
supporting demand
for our space –
digitalisation,
urbanisation, supply
chain optimisation and
sustainability – and take
conidence from the
recent pick up in
sentiment.”
David Sleath,
Chief Executive Oicer
Our Community Investment Plans (CIPs) continue
to grow in number and size, and during 2024 we
launched schemes in Italy and Spain, taking the
number of plans to 14, with community projects
in 21 regions, cities and towns across our
portfolio. Our employees, customers, suppliers
and other stakeholders worked together to
deliver almost 1,000 volunteering days in our
local communities. The impact of our CIPs on the
communities near our assets is signiicant and
they embed our buildings as local centres of
economic success, helping to create employment
opportunities for local people and improving the
environment and local amenities for local
residents. This focus on sharing the long-term
beneits of our estates with our local communities
positions us as a preferred partner for local
authorities and is instrumental in creating future
opportunities, demonstrated by the successful
renewal of the Simpliied Planning Zone in Slough.
Our people are vital to our ongoing success and
Nurturing talent therefore remains a key area of
focus. During 2024 we completed the reshaping
of our leadership team and continued to invest in
the development of our employees. Within our
hiring, at these senior levels and across the
broader organisation, we have been deliberate in
creating a diverse talent pool and this has helped
us make progress against both of our diversity
goals, increasing the number of women and
ethnic minorities in senior leadership roles by
3 per cent and 1 per cent respectively. We also
introduced a range of new family-friendly policies.
Positioning our business for long-term success
The continued growth and strong operational
results produced by our business during 2024,
despite the macro environment, has shown that
our strategy to focus on the most demand-resilient
and supply-constrained markets can deliver
consistent results throughout the property cycle.
During the peak of the market, which was
ampliied by the pandemic, occupier and
investor demand was exceptionally strong for
industrial and logistics, fuelled by a very low
interest rate environment which meant that
returns were signiicantly driven by yield
compression and elevated levels of development.
The current environment is more ‘normal’, so
we are focused on executing our long-held
strategy to extract the best returns from our
existing portfolio and opportunities in our control.
We believe that the quality of our portfolio, and
the strength of our operating platform – with its
signiicant market experience, local knowledge
and strong stakeholder relationships – will
deliver stronger risk-adjusted returns than the
wider market.
This platform, and the people within it, have
been vital to our ability to get deals done, create
new opportunities and deliver growth for our
stakeholders this year and I would like to thank
everyone at SEGRO for their hard work and
contributions to our performance during 2024. I am
proud of what we have achieved, facing challenges
head on and constantly innovating to ind new ways
of getting things done, while keeping one eye on
the horizon and ensuring that our business is ready
to take advantage of the opportunities that present
themselves over the coming years. It is this
dedication and focus, that will ensure we continue
to deliver on our Purpose of creating the space
that enables extraordinary things to happen.
Outlook
We enter 2025 with conidence in SEGRO’s
prospects for further growth. Our portfolio is
of irreplicable quality, having been purposefully
curated over the past 15 years. Two-thirds of it
is located in Europe’s largest cities, with the
remaining one-third strategically located near
logistics hubs and along key transportation
corridors. Our chosen markets have a shortage
of modern, sustainable space with low land
availability and restrictive planning policies
limiting the supply of competing space.
We have strong conviction that demand for our
space will continue to be supported by powerful,
enduring structural trends: data and digitalisation,
urbanisation, supply chain optimisation and
sustainability. Sentiment in occupier markets is
improving and we saw a pick up in occupier activity
during the inal months of the year, as evidenced
by our strong leasing activity in the last quarter.
This momentum has carried into the early weeks
of 2025, and we take conidence from the
positive conversations we are having with our
customers across all of our markets.
Our portfolio is full of current and future
opportunity. We have the potential to:
– secure £173 million of additional rental income
from our standing portfolio through capturing
the existing rent reversion (£118 million) and
leasing vacant space (£55 million);
– deliver £422 million of new rent from
development on our exceptional land bank
located in the most attractive markets, with a
proitable yield on cost of 7 to 8 per cent; and,
– continue delivering compounding annual
rental growth on our portfolio in line with our
long-standing guidance of 2 to 6 per cent per
annum, thus growing rents faster than inlation.
Our track record in creating Europe’s largest hub
of data centres in Slough, with over 0.5GW of
capacity either operational or under construction,
has helped us to develop strong relationships
with global data centre players, which provide us
with unique insights into this exciting, high-
growth opportunity.
We have built a landbank with exceptional access
to 2.3GW of potential power in Europe’s key
Availability Zones. As well as building powered
shells, we recognise the potential to create
signiicant additional value from the development
of fully-itted data centres in select locations, with
projects currently under active consideration.
Our business is therefore well-placed for
further attractive, compounding growth in
earnings and dividends in the years ahead, with
signiicant additional value upside from our data
centre pipeline.
David Sleath
Chief Executive
Chief Executive’s statement continued
See more on our strategy on:
page 16
Read more about our risk management:
page 50
Find out more about Responsible SEGRO:
page 21
15 | SEGRO plc Annual Report & Accounts 2024 Overview Strategic Report Governance Financial Statements Further Information
Our business model and strategy
A deep understanding of our customers’
needs and the markets in which we operate
lies at the heart of how we do business.
Our strategy drives our day-to-day decision
making as well as our long-term thinking.
The direction provided by it, supported by
our strong culture, helps us deliver on our
Purpose and create long-term value for all
our stakeholders.
Responsible SEGRO lies at the heart of
our strategy because it is woven through
everything we do, from the asset
management of our portfolio to the
planning and execution of our development
programme to how we treat our people.
1. Market analysis
We consider long-term trends and our customers’
needs when deciding where and what to invest in.
2. Acquisitions
We buy assets and land in key strategic markets and
source opportunities o-market where possible.
3. Development
We build prime, lexible, sustainable warehouses
in key locations.
4. Active asset & customer management
We aim to deliver outstanding customer service
and actively manage our assets to strike a balance
between occupancy and rental growth. We look
for opportunities to create further value through
refurbishment, redevelopment and repositioning
of our assets (including potential alternative uses).
5. Portfolio review
We undertake a detailed analysis of our portfolio
every year to ensure we understand the risk-return
proile of every asset.
6. Asset recycling
We dispose of assets where we have optimised
returns or see better uses of capital.
What we do to enable extraordinary things to happen
Our business model
What we need to enable extraordinary
things to happen
Our Purpose
We create the space that enables extraordinary
things to happen. We are both a creator of
exceptional buildings and an enabler for our
stakeholders, particularly our customers,
employees and local communities, to achieve
extraordinary things.
Our ambition
To be the best property company includes:
driving long-term outperformance from our
portfolio; delivering outstanding customer
service; providing our employees with rewarding
and fulilling careers; and continually challenging
ourselves to innovate and keep one step ahead
of the competition in everything that we do.
Ultimately, we want to be the partner of choice
for all of our stakeholders.
Our culture and Values
We have a special company culture that
permeates throughout SEGRO based upon
a care for our stakeholders and each other, and
we have a mutual desire to create a successful
business that we are proud of.
Our Values and Purpose, co-created with input
from the entire workforce, have stood the test of
time and underpin everything that we do.
They are our core beliefs that guide our decision
making, large and small and inform the ways in
which we work together to make things happen:
– Say it like it is
– Stand side by side
– If the door is closed…
– Keep one eye on the horizon
– Does it make the boat go faster?
Delivering
long-term
success
Find out more about our Values:
page 28
Read How the Board manages and
monitors our Purpose and Culture:
page 81
Click the link to see our video on
what SEGRO Values mean for employees:
https://www.SEGRO.com/responsible-
SEGRO/reports-downloads
2.
Acquisitions
6.
Asset
recycling
1.
Market
analysis
4.
Active asset
& customer
management
3.
Development
5.
Portfolio
review
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16 | SEGRO plc Annual Report & Accounts 2024 Overview Strategic Report Governance Financial Statements Further Information
Our business model and strategy continued
Embedded in the way that we manage our
business day-to-day are our Responsible SEGRO
strategic priorities. They inluence the way we
manage our portfolio, how we create new space,
and the investments that we make into our
business to make sure that it is it for the future.
2024 outcomes
– Good progress against our carbon commitments
and the establishment of new near and long-term
science-based carbon reduction targets.
– Tangible outcomes from our Community
Investment Plans that are changing lives in our
local communities: 10,289 young people inspired
about the world of work, 1,197 unemployed
individuals supported through employability
training (349 of whom found work as a result).
– Good progress with our diversity targets and
a new personal development process that
incorporates the ‘How’ as well as the ‘What’
to help embed our Values and Behaviours.
Relevant risks
4 Health and safety
5
Environmental sustainability
and climate change
9 People and talent
Using our in-depth knowledge of our customers
and the trends impacting their businesses, to pick
markets and assets that create the right portfolio
shape, actively manage its composition and
adapt our capital deployment according to our
assessment of the property cycle.
Leveraging our operating platform to optimise
performance through dedicated customer
service, expert asset management, development
and operational eiciency.
Underpinning the property level returns from our
portfolio with a lean overhead structure, the best
technology-enabled processes and an eicient
capital structure and appropriate inancial
leverage.
2024 outcomes
– Further investment into the most proitable
growth opportunities within our existing footprint.
– Our teams leveraged their local knowledge
and strong relationships to acquire prime
assets in attractive markets with strong rental
growth potential.
– Well-executed disposals to release capital to
invest into opportunities with higher risk-
adjusted returns.
2024 outcomes
– Providing excellent customer service.
– Capturing the signiicant reversionary potential
in the portfolio at lease events, yet maintaining
high levels of customer retention.
– Successful execution of our development
programme.
– Delivering rental growth across our markets.
2024 outcomes
– £1.5 billion of new equity and debt inancing to
provide irepower for further proitable growth.
– Continuation of our digital transformation
programme, including the delivery of key
projects to provide our teams with better
insights and improve process eiciency.
Relevant risks
1 Macroeconomic impact on market cycle
2 Portfolio strategy and execution
3 Major event/business disruption
6 Development and construction execution
8 Legal, political and regulatory
Relevant risks
2 Portfolio strategy and execution
3 Major event/business disruption
4 Health and safety
6 Development and construction execution
8 Legal, political and regulatory
9 People and talent
10 Operational delivery
Relevant risks
1 Macroeconomic impact on market cycle
2 Portfolio strategy and execution
7 Financing strategy
8 Legal, political and regulatory
9 People and talent
10 Operational delivery
Responsible SEGRO Disciplined capital allocation Operational excellence Eicient capital & corporate structure
Our strategyOur sustainable approach
Find out more about Responsible SEGRO
page 21
Find out more on Disciplined capital
allocation in the Performance review
page 37
Read more on Operational excellence
in the Performance review
page 40
Find out more on Eicient capital and corporate
structure in the Finance review
page 44
17 | SEGRO plc Annual Report & Accounts 2024 Overview Strategic Report Governance Financial Statements Further Information
Our stakeholders
Engaging
for mutual
success
Employee engagement
86%
Why they are important to us
Our people deliver our strategy in line with our Purpose, Values and
Behaviours. The strength of our operating platform, and therefore
the success of our business, depends on the talent, engagement
and motivation of our people.
What matters to them
– An inclusive and supportive workplace that is free from bias.
– Working for a company whose values match their own.
– Rewarding careers that enable them to thrive and fulil
their potential.
– Competitive compensation and beneits.
How we engage with them
– Weekly business updates.
– Quarterly employee brieings.
– Annual employee survey (Your Say).
– Employee groups on topics such as Culture, Wellbeing
and Inclusion.
– Annual reviews of individual performance and development needs.
– Training and development programmes and coaching.
2024 engagement highlights
– 86 per cent ‘Your Say’ engagement score, participation rate at
95 per cent.
– Completed the reshaping of our leadership team and supported
the transition.
– Made progress towards our diversity goals.
– Continued to strengthen our culture, embedding our Values and
Behaviours.
– Enhanced our colleague proposition, with new and enhanced
family-friendly policies.
Priorities for 2025
– Support our new leadership team as they inspire commitment,
create accountability for performance and actively build
our culture.
– Focus on supporting the personal and career development
of all of our people.
– Make further progress towards our diversity targets and continue
to create conversations about inclusion.
Employees Customers
We employ 466 people across nine countries with
a diverse range of skills.
We have 1,369 customers across eight countries and aim
to build outstanding customer relationships.
Customer satisfaction
86%
Why they are important to us
A deep understanding of our customers’ needs lies at the heart of
how we do business. The spaces we create enable our customers
to deliver an extraordinary range of goods and services, and are
crucial to their own success.
What matters to them
– High quality, sustainable, well-located space that enables them
to serve their customers and is safe to work in.
– Excellent customer service and a high-level of consistent experience.
– Support with their business goals and challenges.
– Connection with other businesses and insights into peers and
market trends.
How we engage with them
– Regular contact with our property and asset management teams.
– Annual customer satisfaction survey.
– Regular customer forums to discuss emerging trends.
– Partnering on our community projects.
2024 engagement highlights
– Record level of responses (355) to our customer survey, which
reported a high level of satisfaction.
– Launch of irst three SEGRO customer journey priority projects.
– Delivery of two Customer Futures Forums.
– Introduction of a new customer intelligence platform
to improve collaboration.
Priorities for 2025
– Organise further Customer Futures Forums and other industry
events to connect our customers and get insights that help
shape our business decisions.
– Target the customers and sectors that support SEGRO’s
growth plans.
We have identiied six key stakeholders
in our business – employees, customers,
communities, suppliers, investors and
the environment.
Underpinning these relationships is a
culture which promotes high standards of
business ethics, is focused on a long-term
sustainable strategy and which recognises
our responsibilities to the environment.
Read more in our Section 172 Statement and
Board stakeholder engagement summary:
pages 84 and 86
18 | SEGRO plc Annual Report & Accounts 2024 Overview Strategic Report Governance Financial Statements Further Information
Our stakeholders continued
Communities Suppliers
As a long-term investor we are committed to ensuring that
local people and communities beneit from our assets.
We work with 3,069 suppliers across the Group from
a diverse range of industries.
Employee volunteering days
700
Why they are important to us
We aim to deliver long-term economic and social beneits in the
communities where we operate. Our relationship with them means
that we are good neighbours and support each other, this helps
ensure the success of our estates.
What matters to them
– Local environment and quality of life.
– Sustainable designs that mitigate noise and traic congestion.
– Training and employment opportunities.
– Investment into the local economy.
– Enhancement of their local environment.
How we engage with them
– Early consultation on new developments.
– Creating partnerships with local authorities, charities and
education providers to deliver our Community Investment
Plans (CIPs).
– Long-term participation in community groups and local
advisory boards.
2024 engagement highlights
– Launch of two new CIPs in Italy and Spain (taking our total
number of CIPs to 14).
– Signiicant outcomes from our existing CIPs; SEGRO employees,
employees from our customers and suppliers delivered almost
1,000 volunteering days.
– Successfully renegotiated the Slough Trading Estate
Simpliied Planning Zone.
Priorities for 2025
– Continue to increase the number of customers and suppliers
supporting our CIP programme.
– Expand volunteering opportunities to include more stakeholder
partners such as local authorities and launch a new community
investment plan in Hertfordshire, linked to our new logistics park
in Radlett.
– Undertake performance review of our CIP programme to improve
community outcomes.
Supplier spend in 2024
£922m
Why they are important to us
We look to work with suppliers whose aims complement our own.
Close collaboration with them is key to us delivering on our goals,
including the reduction of our carbon emissions. They include our
construction partners, professional advisers and everyone involved
in SEGRO’s supply chain.
What matters to them
– Clearly deined expectations and standards (e.g. ethics,
modern slavery).
– Positive collaboration with aligned values and objectives.
– Advice on best practices and training support.
– Prompt and eicient payment of invoices.
How we engage with them
– Comprehensive supplier assurance process to ensure our
supply chain is maintained to a high standard.
– Regular service review sessions.
– Support with health and safety.
– Collaboration on our Responsible SEGRO ambitions and
CIP projects.
2024 engagement highlights
– Record level of suppliers (59) involved with our volunteering
programme.
– Expanded our Contractor Forums in the UK to include a larger
number of our supply chain partners to engage them in a wide
range of topics (including, sustainability, health and safety and
best practices).
– Developed a framework with key supply chain partners to drive
future areas of collaboration.
Priorities for 2025
– Targeting an even higher level of participation in our suppliers
CIP programme, including inviting new suppliers to participate
in our mentoring programme.
– Continued investment into our Contractor Forums and
development of our approach to working with key suppliers.
– Further enhancement of our third-party supplier due-diligence
systems and processes.
19 | SEGRO plc Annual Report & Accounts 2024 Overview Strategic Report Governance Financial Statements Further Information
Our stakeholders continued
Total shareholder return
(18)%
Why they are important to us
Shareholders, both institutional and retail, are the owners of our
business. They are also the inancial institutions who provide debt
and our joint venture partners.
What matters to them
– Clearly articulated long-term strategy.
– Financial performance, returns and dividend growth.
– Strong balance sheet.
– Risk management and eicient use of capital.
– Leading ESG performance.
How we engage with them
– Our extensive Investor Relations programme ensures we relect
our investors views in our decision making.
– This includes: meetings, roadshows, conferences and asset tours;
regulatory reporting; and our Annual General Meetings.
2024 engagement highlights
– 285 investor meetings, including all of our active top 20 shareholders.
– Investor and Analyst Day focusing on our unique urban portfolio
attended by 120 analysts and investors.
– Asset tours for institutional shareholders and analysts.
– Areas of focus included the health of occupier markets and the
data centre opportunity within our portfolio.
Priorities for 2025
– Continue to take an open and transparent approach to inancial
communication.
– Engage proactively with our largest shareholders and potential
new investors.
– Develop a retail investor engagement strategy.
Reduction in average embodied carbon intensity
4%
Why it is important to us
We pay close attention to the materials and resources we use in our
business to protect the planet for future generations and ensure
SEGRO’s long-term success.
What matters to it
– Reduction of the carbon emissions generated by our operations
and particularly our development programme.
– Maximising the eiciency and minimising the resource usage
of our assets.
– Protection and enhancement of biodiversity in our local areas.
How we consider the environment
– Ambitious carbon-reduction targets.
– Addition of solar panels where feasible.
– Scenario analysis to understand the potential impact of climate
change and mitigate risks.
– Consideration of carbon and biodiversity impacts of our
development projects.
2024 engagement highlights
– Establishment of new near-term and net-zero science-based
carbon reduction targets.
– 4 per cent decrease in our average embodied carbon intensity
– Signiicant increase in visibility of our customer energy usage
(now at 87 per cent).
– A record 64MW added to our installed solar capacity.
Priorities for 2025
– Continue to drive reductions in our carbon emissions.
– Increase the automation of the retrieval of our customers’
energy data.
– Replace gas with low-carbon alternatives where possible.
– Progress our large-scale solar installation.
– Prepare for reporting against the new European Sustainability
Reporting Standards.
Investors Environment
Our investors provide the capital through equity or debt
which inances SEGRO’s business and its future growth.
The regions in which we operate and local areas impacted
by the development and ongoing operations of our assets.
20 | SEGRO plc Annual Report & Accounts 2024 Overview Strategic Report Governance Financial Statements Further Information
Responsible SEGRO
We are committed
to being a force
for societal and
environmental good
Responsible SEGRO demonstrates
how our environmental and social
contributions are embedded within
our business.
Our commitment to being a force for societal
and environmental good has been at the heart of
how our business operates since it was founded.
It has been instrumental in SEGRO’s success over
the past century and will be just as important for
the next. This commitment is led by our Board
but lived by our employees every day. It is about
doing the right thing and making a positive
impact wherever we operate.
Championing low-carbon growth
Corporate and customer carbon intensity
36.4 kgCO
2
e/sq m
2023: 36.1 kgCO
2
e/sq m
Visibility of customer energy data
87%
2023: 81%
Average embodied carbon intensity
318 kgCO
2
e/sq m
2023: 331 kgCO
2
e/sq m
Solar capacity
123MW
2023: 59MW
Number of Community Investment Plans
14
Charitable giving
£2.3m
Employee volunteering days across
projects in our local communities
700
Unemployed people trained
(349 of whom who are now in employment)
1,197
‘Your Say’ engagement score
86%
Training hours
7,059
Voluntary employee turnover
7.2%
Gender split of workforce
50% male 50% female
We are committed to reducing the embodied carbon in our development programme as
well as reducing the carbon-intensity of our properties. We want to play our part in tackling
climate change and have ambitious net-zero goals. In 2024, we have set new science-
based carbon reduction targets (with a baseline of 2023), in line with latest best practice.
Investing in our local communities and environments
Championing low-carbon growth
We have a strong track record of supporting local communities and employment
(including training) is one of the areas that our Community Investment Plans (CIPs) focus
on. We want to play our part in reducing inequalities and ensuring more people have the
right skills to access meaningful work.
Nurturing talent
We want our people to have rewarding and fulilling careers and are committed to fair pay
throughout our operations and also our supply chain, and to ensuring that our spaces
provide safe working environments and promote health and wellbeing for all.
Responsible SEGRO priorities (and relevant UN SDGs)
Read more in our
Responsible SEGRO Report:
www.SEGRO.com/responsible-SEGRO/
reports-downloads
21 | SEGRO plc Annual Report & Accounts 2024 Overview Strategic Report Governance Financial Statements Further Information
Responsible SEGRO continued
ESG reporting and ratings
We recognise that transparency around our
sustainability performance is essential to building
trust with our stakeholders.
As the wider Environmental, Social and
Governance (ESG) reporting environment is
evolving, we continually monitor our approach
to ensure that we are aligned to, and engaged
with, the most relevant frameworks in order to
provide clear, reliable, and meaningful disclosures
to meet the needs of our investors, customers,
employees, and communities, whilst
demonstrating our performance against
our Responsible SEGRO framework.
This currently includes reporting against
established frameworks including the Global
Reporting Initiative (GRI) and Task Force on
Climate-related Financial Disclosures project
(TCFD), as well as the National Equality Standard,
Parker Review and FTSE Women Leaders.
In addition, we expect to report against EU
sustainability reporting standards when these
become mandatory for us.
We also engage with various organisations who
review and assess our ESG performance and
disclosures. This includes agencies that monitor
our disclosures, such as MSCI, who rate us AAA,
as well as organisations that require active
participation and additional transparency, such
as the Carbon Disclosure Project (CDP), who rate
us A. We also participate in indices such as
FTSE4Good, who rate us at 3.3 (2.8 sub-sector
average). The above are SEGRO’s latest ratings
at the time of publication.
How we deliver on our
Responsible SEGRO goals
We have long-held commitments to leadership
in health and safety, stakeholder engagement,
corporate governance and being a good
corporate citizen.
Our Responsible SEGRO framework helps us
to articulate our sustainability goals and address
our stakeholders’ most material concerns.
Within this we have focused in on three
enduring strategic priorities, which were
determined through engagement with our
stakeholders. These priorities cover the areas
where we believe we can make the greatest
business, environmental and social contribution.
They are:
Championing low-carbon growth
Investing in our local communities
and environments
Nurturing talent
For each of these areas we have established
challenging targets that are linked to four
non-inancial KPIs and to the annual bonus
for all employees.
We report a summary of our progress with
these during 2024 in the following section and
discuss our priorities for 2025 – more detailed
information (along with full datasets) can be
found in our 2024 Responsible SEGRO Report.
We intend to set additional, more speciic,
supporting targets as necessary and expect
our actions and approach to evolve over time
to relect our achievement, technological
change and the priorities of our stakeholders
and wider society.
1 SEGRO Park Limeil-Brévannes
2 SEGRO Employment
Programme, East London –
ELBA employment workshop
2 SEGRO Schools Programme,
Slough – Learning to Work
student workplace visit
1
2
3
22 | SEGRO plc Annual Report & Accounts 2024
Overview Strategic Report Governance Financial Statements Further Information