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Annual Report & Accounts 2025
Enabling extraordinary things
Front cover: SEGRO Park Le Blanc-Mesnil is located in the North-East of Paris, close to two major
airports and with excellent connectivity to the city centre. Our customer Maison Lefebvre
specialise in home furnishings and use their space as a showroom and sales office.
We are SEGRO.
We own, manage and develop modern and sustainable industrial
and logistics space across Europe. Our portfolio includes both
urban and big box warehouses and data centres. The spaces that
we create enable extraordinary things to happen – they provide
critical infrastructure for urban economies, underpin modern
distribution networks, empower our customers and drive
prosperity in our local communities. This is purposeful growth
thatdriveslasting impact.
Contents
Overview
About SEGRO
01
Strategic Report
Strategic Report
11
Chief Executive’s statement
12
Our business model
andstrategy
18
Responsible SEGRO
20
Key performance indicators
26
Performance review
28
Regional updates
37
Financial review
39
2025 Viability statement
45
Non-financial information
and sustainability
information statement
46
Streamlined energy and
carbon reporting
47
Climate-related financial
disclosures
48
Managing risk
56
Principal risks
59
Governance
Governance Report
69
Chair’s introduction to
governance
70
Governance at a glance
72
Board leadership and
Company purpose
74
Division of responsibilities
81
Section 172(1) statement
82
Our stakeholders
84
Board performance review
90
Nomination Committee
Report
92
Audit Committee Report
98
Directors’ Remuneration
Report
106
Directors’ Report
125
Statement of Directors’
responsibilities in respect of
the financial statements
127
Financial Statements
Financial Statements
128
Independent auditors’ report
to the members of SEGRO plc
129
Group Income Statement
136
Group Statement of
Comprehensive Income
136
Balance Sheets
137
Statements of Changes
inEquity
138
Cash Flow Statement
140
Notes to the Financial
Statements
141
Five-year financial results
188
Further Information
Further information
189
Shareholder information
190
Glossary of terms
191
Forward-looking statements
193
Find out more
193
The Directors present the Annual Report for the year ended 31 December
2025, 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 106 to 124 inclusive comprise the
Directors’ Remuneration Report and pages 125 and 126 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 and
restrictions provided by such law. The Annual Report contains
forward-looking statements. Forfurther information see page 193.
For our website use
the QR code or visit
our website at
www.SEGRO.com/
investors/ara25
Read more about
Responsible SEGRO
on page 20 to 25
Enabling extraordinary things
We are both a creator of spaces and an enabler ofextraordinary things
thatleave a lasting mark on businesses, communities andsociety.
For over 100 years, we have been
anticipating change, responding
toevolving needs, and creating the
spaces where ambition takes root
andextraordinary things take shape.
Across the UK and Continental
Europe, our portfolio of high-quality
assets provides a foundation for
opportunity, innovation, and
resilience. Every development reflects
ourcommitment to not just delivering
the highest standards of design and
sustainability, but to empowering our
customers and strengthening the
communities we serve.
Driven by an ambition to be thebest
property company, we embed
purposeful innovation and sustainable
progress into every decision —
ensuring thatthe extraordinary
thingswe enable today drive positive
change for generations tocome.
At SEGRO, our Purpose is to create the space
thatenablesextraordinary things to happen —
forbusinesses,communities and society at large.
Therealmeasure of our success lies in the voices ofthose
wework alongside. Readmore about their stories whenever
you seethisicon throughout this report.
For our stakeholders:
Our People Customers Communities Suppliers Investors Environment
By unlocking
talent,
empowering
ambition, and
inspiring futures
atSEGRO
By creating
spaces that allow
ambitious
businesses to
thrive
By sparking
opportunity
through jobs,
skills, and shared
prosperity
By creating strong
partnerships
andcollaborating
toachieve
sharedgoals
By enhancing
returns through
Disciplined
capital allocation
and operational
excellence
By protecting the
planet for future
generations
Read more on
page 84
Read more on
page 85
Read more on
pages 86
Read more on
page 87
Read more on
page 88
Read more on
page 89
01
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SEGRO plc Annual Report & Accounts 2025
Overview Strategic Report Governance Financial Statements Further Information
About SEGRO
enabling extraordinary things
A year of
Every achievement this year is a testament to what happens when we put our Purpose into action – creating the space
thatenablesextraordinary things to happen, not just for businesses but for the people and communities around us.
Driving the modernisation
oftheUK’s infrastructure
anddistribution networks
We completed a major milestone at
SEGROLogistics Park Radlett by installing
a6,000-tonne underbridge beneath
theMidland Main Line – the key step
thatwillconnect the strategic rail freight
interchange directly into the national rail
network. Our rail-connected UK logistics
parks are supporting greener, more
efficient supply chains in the UK.
6k
tonne underbridge
A landmark partnership
tobuild the data centres
oftomorrow
We announced the creation of a joint
venture with Pure Data Centres Group
to deliver our first fully fitted data
centre in WestLondon – a powerful
step forward inSEGRO’s data centre
strategy. Thec.30,000 sq m,
three-storey facility will support
next-generation Cloud workloads,
marking our evolution into a developer
of mission-critical infrastructure.
Thispartnership will unlock significant
long-term value and strengthen
ourrole in the digital economy.
Strengthening our presence in Europe’s
mostattractive logistics markets
Our SELP joint venture completed the acquisition
ofasix-asset, 37,000 sq m portfolio in the Netherlands
andGermany for €470 million.
37k €470m
sq m portfolio acquisition
The addition of this modern bigbox
space in Europe’s most attractive
andsupply-constrained logistics hubs,
drives growth andreinforces our
leadership in big boxlogistics.”
David Sleath, CEO, SEGRO
Reimagining a century-old estate
for modern businesses
We continued the transformation of the
SloughTrading Estate, one of the UK’s
mosthistoric industrial sites, into a modern
hub for innovation, through the completion
ofnine new units totalling 107,000 sq ft.
Thewarehouses have been built to a premium
specification offering sustainable, flexible
space suitable for a wide variety ofbusinesses.
Slough Trading Estate
hasspearheaded the
UK’sindustrial activity for
over a century, constantly
evolving to ensure it is
providing employment
andsupporting the local
andnational economy...”
Tan Dhesi, MP for Slough
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About SEGRO continued
Committing to a net-zero
future, backed by science
Our updated near-term and
net-zero emissions reduction
targets were validated by the
Science Based Targets initiative,
confirming SEGRO’s ambitious
pathway to decarbonisation.
Thecommitment builds on years
of progress and setsa clear,
measurable route tonet-zero
by2050, underscoring our
responsibility to lead the sector
insustainable development.
Net-zero
by2050
Ensuring European cities
arefitforthefuture
We completed the first phase of
SEGRO Centre Paris Les Gobelins,
transforming a former railway station
into a 75,000 sq m urban logistics hub
in the heart of the city, giving rapid
access to end users and making
low-carbon transportation a reality.
One of our first customers to occupy
the space will be the cargo-bike unit
ofDSV (formerly DBSchenker) which
will be delivering parcels andpallets
tocustomers in the city centre.
75k
sq m of space transformed
Find out more
To read more about
the extraordinary
things happening
inour properties
across our portfolio,
pleasevisit
www.SEGRO.com/
media/news
Building the future intimber
SEGRO Logistics Centre Hamburg
NeuWulmstorf, which completed
inMay,isthe first of its kind in
northern Germany. Built with an
entirely timber structure andpowered
by nearly 2MW of rooftop solar and
all-electric systems, this scheme
exemplifies howSEGROturns
brownfield sites intonext-generation,
low-carbon logisticshubs.
We are aware of
theresponsibility we
bear interms of reducing
greenhouse gas
emissions. That is why
we are focusing on
sustainable solutions
todrive forward the
decarbonisation of
supply chains – quickly
and on a large scale.
TheSEGRO Logistics
Centre Hamburg
NeuWulmstorf
fulfilsprecisely
thisrequirement...”
Sven Schoon,
Scan Global Logistics
Empowering a retail icon
witha sustainable new
homein Italy
We signed a pre-let to build a 81,000
sq m highly sustainable warehouse for
Primark. It will be its first distribution
centre in the country, supporting
itsexpansion into one of Europe’s
largest fashion retailmarkets.
81k
sq m highly sustainable
distributioncentre
We are excited
tofurther expand
Primark’s presence
inItaly with plans to
develop our firstdepot
here. The partnership
with SEGRO represents
a strategic step to
support our growth
ambitions and improve
efficiencies inour
supply chain...”
Luca Ciuffreda,
Primark
Investing in people,
skillsand communities
forlasting impact
We launched a Community
Investment Plan in St Albans, which
meansthey are now in place across
allof our target European markets.
15
Community Investment Plans
03
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About SEGRO continued
A modern, sustainable 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.
Urban warehouses Big box warehouses Data centres
Asset type by value
55%
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.
Asset type by value
35%
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.
Asset type by value
8%
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.
SEGRO Park Köln City,
Germany
SEGRO Logistics Park
Oberhausen, Germany SloughTrading Estate, UK
The remaining 2 per cent of our portfolio consists of industrial land used for non-warehouse purposes, for example car showrooms, self-storage facilities, hotels and offices.
04
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About SEGRO continued
Focused on Europe’s most attractive industrial,
logistics and data centre markets
Our buildings are located in densely
populated and supply-constrained
cities, as well as key transportation
corridors and logistics hubs across
eight European countries.
They are used by adiverse customer base,
manyofwhom we work withacrossmultiple
countries and different asset types.
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 andtheinsights we gain from our close
customer relationships, with data-driven insights
fromour Location Assessments, which draw
uponmillions of data points across an ever-evolving
European market.
05
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About SEGRO continued
Urban warehouse
Big box warehouse
Data centre
1
l l
2
l l
3
l l
4
l
5
l l
6
l l
7
l
8
l
9
l
10
l
11
l
12
l
13
l l
14
l l
15
l l
16
l l
17
l
18
l
19
l
20
l
62%
12%
11%
6%
4%
2%
2%
1%
UK
Germany
France
Italy
Poland
Netherlands
Spain
Czech Republic
Geographical split by value (SEGRO share)
25%
18%
15%
10%
9%
7%
6%
3%
7%
Transport and logistics
Retail (physical, online and hybrid)
Food and general manufacturing
Post and parcel delivery
Wholesale distribution
Data centre operators
Services and utilities
Technology, media and telecoms
Other
A diverse customer base including 1,371 businesses from >35 differentsectors
Positioned for long-term success
Our irreplicable portfolio is positioned to benefit from supply-demand dynamics that create
favourable conditions for growth. Our active approach to managing this portfolio, along with
our exceptional land bank and strong balance sheet, provides us with a runway to more than double
our rental income and create significant value for stakeholders in the coming years.
1.
2.
3.
4.
5.
6.
Supportive
structural trends
Restricted land
availability limits
supply response
Market-leading
pan-European
operating platform
Prime portfolio
ofexisting assets
Exceptional
landbank for
development
Strong
balancesheet
We are focused on the
industrial sector, where
there are long-term
structural trends driving
occupier demand
fromadiverse range
ofbusinesses.
Weighted towards urban
warehousing where
thereare significant
barriers to entry due to
competing uses of land
from other asset classes
and increasingly
challenging planning
regimes which severely
restrict the development
ofnew warehouses.
Our teams on the ground
in each market build close
relationships with our
customers, local
communities and other
business partners, helping
us to drive value and
create new opportunities.
One of the most
modernand sustainable
pan-European portfolios
focused on the most
attractive and supply-
constrained European
industrial, logistics and
data centre markets.
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.
A balance sheet with
modest leverage and
adiverse, long- duration
debt profile that provides
us with plenty of capacity
for investment.
>35
different sectors
supported
65%
of our portfolio is in
supply-constrained
urbanareas
19
offices in 9 countries
£22bn
assets under management
£408m
of potential rent from
ourland bank
31%
loan to value ratio
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About SEGRO continued
Delivering sustained earnings and
dividend growth through the cycle
Our clear strategy has delivered
sustained and compounding
earnings and dividend growth
for over a decade.
Our standing portfolio and
development pipeline both
contribute to this growth and
we see significant further
opportunity from delivering
both powered shells and fully
fitteddata centres on our
powered land bank.
Significant further
opportunity from our 2.5GW+
data centre pipeline
Upside from profitable
development pipeline
Prime, highly reversionary
portfolio supporting strong
like-for-like rental growth
07
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SEGRO plc Annual Report & Accounts 2025
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About SEGRO continued
Earnings and NAV growth
Adjusted earnings per share
FY25: 36.6p (+6.1%)
2016–2025 CAGR: 8%
Dividend per share
FY25: 31.1p (+6.1%)
2016–2025 CAGR: 8%
Adjusted NAV per share
FY25: 925p (+2.0%)
2016–2025 CAGR: 8%
Enduring long-term trends
that support demand
and restrict supply
08
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About SEGRO continued
Digitalisation
Digitalisation continues
toreshape consumer
behaviour and the way
people communicate and
work. The rapid adoption
of data-intensive
technologies, including
Artificial Intelligence, is
accelerating the growth
of e-commerce,
increasing the need for
highly efficient logistics
space and driving
demand for data centres
across Europe as
businesses process, store
and move ever-greater
volumes of data.
25%
forecast
e-commerce
penetration
acrossour markets
by 2030, from
18%today
1
Urbanisation
Growing populations require
housing but also more goods
and services. Industrial space is
key to delivering these yet new
residential schemes are often
developed on industrial land
and planning policies restrict
the supply of new space.
12%
expected increase
in London’s
population by
2045
2
Supply chain optimisation
Efficient and reliable distribution
networks and supply chains are
ofvitalimportance for successful,
modern businesses.
47%
of European occupiers expect their
warehouse space requirements
toincrease over the next 1–3 years
specifically to accommodate
restructuredsupply chains
3
Sustainability
Just like us, our customers
are looking to minimise their
carbon footprints and reduce
their overall occupancy costs
through efficient, sustainable
modern buildings.
65%
of European companies now
have validated ‘full value
chain’ targets (Scope 1, 2
and3) that include halving
carbon emissions by 2030
4
Source: 1. CBRE penetration and Eurostat population data. 2.Greater London Authority, ONS. 3. Savills – European Real Estate Logistics Census 2025. 4. Accenture – Destination Net Zero 2025 report.
Urban warehouses Big box warehouses
Enabling a diverse range of goods and services to be
delivered efficiently and sustainably across growing cities
Enabling our customers to optimise and
modernisetheirdistribution networks
The challenge The challenge
Düsseldorf lies at the heart of the Rhine Ruhr region, one of the largest metropolitan areas in
Europe, and is Germany’s sixth largest city. It’s vibrant bustling local economy means that a
diverse range of businesses need flexible space with excellent transport links, easy access to
local populations and high sustainability standards.
Our customer, HAVI, is a global leader in integrated supply chain management for the food
industry. They distribute frozen, chilled and dry products for a leading quick service restaurant
chain and were supplying outlets in Madrid and northern Spain out oftwo ageing warehouse
facilities, which were at capacity and involved verymanual processes.
The solution The solution
SEGRO Park Düsseldorf Flingern is our third urban development in the city and has been built
on the site of an old steel manufacturing plant. The scheme will be delivered in phases, the first
of which completed in early 2026, delivering units ranging from 400 to 9,500 sq m in size that
are designed to be suitable for companies from a wide range of industries. The park quickly
attracted five new customers, including a leading international courier to support local
distribution, as well as fast-growing, app-only supermarket Picnic who provide free, sustainable
home delivery via electric vehicles. Three additional businesses have secured smaller units,
reflecting the park’s ability to accommodate bothglobal operators and growing SMEs. The
space was almost two-thirds leased at completion with strong interest in the remaining units.
We developed SEGRO San Fernando I for HAVI on a pre-let basis on the site ofa former
carpark. It has great connectivity, located 15km from Madrid city centre with direct access
tothe A-2 and M-50 motorways. This 29,300 sq m warehouse allowed our customer to
consolidate operations in a single state-of-the-art building, giving them more storage capacity
and allowing themto automate and increase productivity. 1MW of solar panels will reduce their
operating costs and wellbeing features such as sports facilities and rest areas will help attract
and retain employees.
22,400 sq m 19 30 10%
modern, flexible space (in Phase 1) hectare site loading bays and capacity
for 22,300 pallets
anticipated increase in productivity
through automation
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About SEGRO continued
Data centres
Enabling the digital revolution and contributing
totheupgradeof Europe’s digitalinfrastructure
At a glance
• Our first fully fitted data centre project
• 50:50 joint venture with Pure DC
• Targeting a pre-let with a major hyperscaler
70+ MVA
power capacity (56MW IT load)
c.£1bn
potential investment
(SEGRO’sexpectedcashequity
contribution c.£150m)
c.9%
anticipated yield on cost
The challenge The solution
As our lives and the world around us are increasingly
digitalised there is a growing need for data centres close
tomodern cities, but a shortage of power and grid
connections is constraining their development. The focus
ofour data centre developments in Slough over the past
20years has been on powered shells, where we provide
thereal estate and power allocation and our customers fit
outand operate the space themselves. We have been
lookingfor ways to grow the data centre opportunity in
ourportfolio and maximise the value we can create from it.
The SEGRO Pure Premier Park Data Centre joint venture
bringstogether a SEGRO-owned former industrial plot in
WestLondon that had insufficient power for data centre
development, with 70 MVA of power sourced by Pure Data
Centres Group (Pure DC), a partner with technical expertise
infitting out data centres and a strong track record of working
with major hyperscalers.
Together we will develop a 56MW IT load data centre in
oneofLondon’s key Availability Zones. We intend to pre-let
thedata centre to a major hyperscaler who will operate it
themselves. Planning was submitted in late 2025, after which
we will actively start marketing the site, which could be
operational by 2030. Thisproject is expected tonot only
create a significant amount of income and value but will also
build our expertise in this fast-growing sector and ensure
wemaximise the value creation in our 2.5GW+ pipeline.
Scan here for
ourinsights series
with our JV partner
Pure Data
CentresGroup
www.SEGRO.com
/media/insights
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SEGRO plc Annual Report & Accounts 2025
Overview Strategic Report Governance Financial Statements Further Information
About SEGRO continued
A key milestone in our data
centrestrategy which creates
optionality inour execution
model and allows us to maximise
the risk-adjusted returns from
our data centre pipeline.”
Andrew Pilsworth,
Managing Director, Data Centres and
StrategicPartnerships
Strategic
report
Strategic Report 11
Chief Executive’s statement 12
Our business model andstrategy 18
Responsible SEGRO 20
Key performance indicators 26
Performance review 28
Regional updates 37
Financial review 39
2025 Viability statement 45
Non-financial information and
sustainability information statement 46
Streamlined energy
andcarbonreporting 47
Climate-related financial disclosures 48
Managing risk 56
Principal risks 59
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SEGRO plc Annual Report & Accounts 2025
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SEGRO Park Köln City, Germany
A record year
of leasing
2025 was a successful year for SEGRO, despite the
challenging geopolitical and macroeconomic environment.
We contracted arecordlevel of new rent, which has helped
us to delivergrowth in both earnings and dividends, whilst
ourbroader business initiatives have created significant
valueforall of our stakeholders.
David Sleath,
Chief Executive
Our strong operational and financial
performance, in more challenging occupier
markets, isatestament to the expertise
anddedication of our teams across Europe.”
Scan here to hear our
CEO talk about our
2025 performance
www.SEGRO.com/
investors/ara25/
strategic-report
Our prime modern portfolio of industrial, logistics and data centre
assets, is located in the most attractive and supply-constrained
European markets and remained in demand from occupiers during
2025. Our teams worked hard tocapture the significant mark-to-
market rent opportunity (reversionary potential) in ourportfolio and
execute our profitable development pipeline.
This activity has helped us to deliver a 6.1 per cent increase in
Adjusted earnings per share and weare therefore recommending
a6.1 per cent increase in the total distribution to our shareholders
to31.1 pence for 2025 (2024: 29.3 pence) through payment of a
21.4pence per share final dividend.
Aswe head into 2026 we are seeing momentum build across
ourmarkets and the investments that we have made intoour
portfolio and platform over recent years leave us well placed
totakeadvantage of the opportunities that we expect to arise
during2026 and beyond.
Highlights of the year included:
• £99 million of new headline rent contracted, including £37 million
ofreversion captured at lease events (with the UK delivering
arecord 46 per cent average rental uplift) and £26 million of
newpre-lets signed, mostly in the second half of the year.
• High levels of customer satisfaction, retention and increased
occupancy in our portfolio.
• Development completions equating to £29 millionof headline
rent, ofwhich 93 per cent has been secured through leasing,
delivering a development yield of 8.2 per cent once fully let.
• Proactive work to source power connections and prepare land
tosupport future data centre development with an increase
inour power bank opportunities to 2.5GW+.
• Creation of a joint venture with Pure Data Centres Group
(PureDC) to deliver our first fully fitted data centre in ParkRoyal,
West London.
• The approval of our new science-based targets which align
withthe 1.5°C pathways and position our business to be net-zero
by2050.
• 1,227 volunteering days delivered from projects associated with
our Community Investment Plans.
• Investment into our digital platform to deliver data-driven
insights, drive efficiencies, embrace Artificial Intelligence (AI)
technologies and deliver scale benefits.
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Chief Executive’s statement
Financial highlights
1
Adjusted profit before tax
£509m +8.3%
2024: £470m
IFRS profit before tax
£560m
2024: £636m
Adjusted earnings per share
(basic)
2
36.6p +6.1%
2024: 34.5p
IFRS earnings per share (basic)
40.7p
2024: 44.7p
Adjusted NAV per share
2
925p +2.0%
2024: 907p
IFRS NAV per share (diluted)
906p
2024: 889p
Portfolio value
3
£19.0bn +1.0%
2024: £17.8bn
1  Proportionally consolidated figures and metrics: SEGRO owns assets both wholly itself and through stakes in 50:50 joint
ventures. In the Financial Statements, the profit from joint ventures is stated as a single figure in the Income Statement
andthe net asset value of joint ventures is stated as a single equity figure on the Balance Sheet; Note 7 to the Financial
Statements provides the component parts of these figures. In operational terms, SEGRO does not distinguish between
assets held in joint ventures from those assets which are wholly-owned. Therefore, unless specifically stated, in the
StrategicReport, performance metrics and financial figures are stated reflecting 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 reflect the
underlying recurring performance of the property rental business which is the Group’s core operating activity. These include
those defined by EPRA as part of their mission to establish consistency of calculation across the European listed real estate
sector. Pages 155 to 156 contain more information about the adjustments and the reconciliation of these to IFRS equivalents.
SEGRO discloses EPRA alternative metrics on pages 181 to 187. Adjusted NAV per share is in line with EPRA NTA.
3 The percentage valuation movement during the period is based on the difference 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 28 and Table 3 in the Supplementary Notes.
A bird’s eye view of 2025
Structural trends reasserting themselves
andhelping momentum to rebuild in
occupiermarkets
2025 was another eventful year on the
geopolitical front and periods of uncertainty
continued to weigh on occupier and investor
sentiment, particularly during the first six
months of the year when trade tariffs were
infocus.
Large international businesses were hesitant
tocommit to sizeable capital expenditure
projects and decision making was delayed
asoccupiers waited for greater visibility.
Lacklustre economic growth forecasts also had
an impact and we noticed reduced appetite for
expansion, which led to a slow start to the year
across mostofour markets both in terms
oflettings and investment market activity.
By the summer, however, tariffuncertainty had
moderated and the long-term structural trends
at play in our sectorstarted to reassertthemselves.
Food and fashion retailers, as well as
e-commerce players who had paused
investment in their distribution network
expansion post the pandemic, returned to the
market to resume their growth plans and were
joined by new entrants such as Asian retailers.
Supply chain optimisation and resilience have
continued to be a focus of our conversations
with occupiers, and we sensed a desire to ‘get
on with things’ with businesses accepting that
acertain level of geopolitical uncertainty
isthe‘new normal’ and acknowledging that
theyneeded to progress their investment
planstoachieve their future aspirations.
Sustainability remained a priority, with
sophisticated occupiers seeking modern,
energy-efficient assets with wellbeing facilities
that help them attract and retain labour.
These trends led to increased enquiry levels
across our portfolio and a more active second
half of theyear, particularly in some of our
Continental European markets.
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Chief Executive’s statement continued
SEGRO Park Tychy, Przejazdowa, Poland
External factors that impact
ourbusiness
Our business is affected 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 2025 and give some thoughts on
how they will shape it going forward.
Cyclical factors
• Macroeconomic and geopolitical
environment (including the interest
ratecycle).
• Competitive supply.
Structural trends (see page 08)
• Digitalisation of our economies.
• Urbanisation.
• Supply chain optimisation.
• Sustainability.
A bird’s eye view of 2025 continued
Structural trends reasserting themselves
andhelping to build momentum in
occupiermarkets continued
Two-thirds of our portfolio is located in and
around Europe’s largest and most densely
populated cities; this includes both our urban
warehouses and data centres.
Our urban portfolio attracts a highly diverse
customer base which provides value-add goods
and services and which needs to be within
easyreach of its end customers and skilled
employees. These dynamic businesses tend
tohave greater pricing power, and are less
impacted by short-term macroeconomic
factors, as they are more closely linkedto the
activity levels and prosperity oftheir nearest city
rather than national GDP.
This was particularly evident in our German
urban markets during 2025, where we
experienced active occupier markets
throughout the year, particularly driven by
demand from the ‘Mittelstand’, the large number
of specialised SMEs that form the backbone
ofthe German economy, despite the slump
inmanufacturing and exports. We also saw
good demand in Warsaw, where there is a very
limited amount of modern industrial space.
Customers located in other urban markets,
suchas London and Paris, continued to be
discerning around their real estate decision
making. There were, however, areas of real
strength, such as in our Heathrow portfolio
where there is little competing supply and
whereoccupiers are being displaced for
datacentre development.
During 2025 we moved existing customers
around our urban portfolio, supporting their
changing business requirements, and also
welcomed newones, with notable activity
driven by the active food and hospitality sectors
in London. In other sectors we observed less
appetite for expansion, with many choosing
torenew leases on their existing space.
Our teams worked hard, leveraging theirstrong
customer relationships and asset management
expertise, to negotiate a 36 per cent uplift on
rent reviews and renewals during 2025 (46 per
cent in the UK) which allowed us to capture a
significant amount of the embedded reversion
in our portfolio whilst retaining customers.
The supply of modern industrial space
inmajorEuropean cities remains limited. Land
also remains in short supply, as industrial sites
are repurposed for higher-value uses such as
residential, and increasingly data centres, and
greenfield land remains very difficult to unlock
due to public policy and planning restrictions.
These factors have keptthe supply of new
space in our chosen markets in check.
The remaining one-third of our portfolio consists
of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 operate
efficient distribution networks.
Our big box lease lengths are typically long
andwe develop them on a mostly pre-let basis,
which means that we have very high occupancy
levels in this part of the portfolio. Growth is
therefore primarily driven by demand for new
build-to-suit space (pre-lets).
It was this part of our portfolio that was most
impacted by tariff and macroeconomic
uncertainty during the first half of 2025. We saw
occupiers favouring shorter leases on existing
space or, where they needed to expand or
move, often opting for speculatively developed
space that was immediately available.
As a result we had lower levels ofdevelopment
completions, development spend and land
utilisation in our portfolio during 2025 than
inrecent years, although we have continued
toprogress our speculative urban schemes
inmarkets such as Germany where occupier
demand has been more buoyant.
Improved sentiment post the summer led to
amore active second half of the year and an
increased number of pre-let signings, mostly
within our Continental European business which
contracted its strongest six-month period on
record. Activity levels remained low in the UK
until after the November Budget, but with that
out of the way, enquiry levels picked up
markedly going into year end.
We have therefore entered 2026 with good
momentum and have active conversations with
potential occupiers in respect of existing space
and for potential pre-let development projects
across our key markets.
The supply outlook for our big box markets also
looks positive going forward. Much of the space
thatcame to the market in 2023 and 2024
(either through new development, takebacks
orsub-letting) is now being absorbed and
speculative development starts have fallen
dramatically. Net absorption has turned
positiveand vacancy rates are starting to
fallacross Europe, which will result ingreater
supply-demand tension, particularly for the
mostmodern, well-located space, which
shouldbenefit our portfolio.
We continued to see rental growth for prime
industrial space during 2025, although lower
activity levels for much of the year meant that
itfell below our recent run rate. Itwas strongest
in our most active urban markets where demand
remained high and vacancy low (for example
inour Heathrow portfolio) andwe expect it to
strengthen as occupier demand and activity
levels accelerate across ourbroader portfolio.
We continue to expect ERV growth of 3to 6 per
cent for our urban portfolio and 2 to 4 per cent
for big box logistics in the medium-term.
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Chief Executive’s statement continued
A bird’s eye view of 2025 continued
Investment markets subdued but yields and
asset values stable
Macroeconomic and geopolitical uncertainty
also impacted investment market activity during
2025, with low volumes of transactions across
mostofour markets. The UK in particular was
hampered byconcerns over the impact of the
economic outlook on occupiers, as well as
interest rate expectations.
Industrial and logistics assets remain amongst
the favoured real estate sub-sectors,
butcontinued high funding costs have meant
thatsome investor attention has focused
onhigher-yielding assets with near-term
reversionary opportunity. This has meant
lessactivity in prime markets, with lot
sizesremaining smaller and few large
portfoliostraded.
Assets that traded have supported current
valuations and prime yields in both the UK
andmost Continental European markets were
broadly flat during 2025 although there was
asmall amount of yield compression in our
Southern European markets.
The outlook for yield and asset valuations is hard
to forecast but markets are expecting further UK
rate cuts in 2026, now thatinflation has returned
closer to target levels, which should be
supportive of increased investment market
activity, if, as expected, occupier market
fundamentals continue to improve.
Growing the significant data centre
opportunity in our portfolio
Data centre demand continues to grow in key
European Availability Zones
The European data centre market remains in
expansionary mode and is forecast to grow
strongly over the coming years. This is currently
being driven by the expansion of Cloud
capacity, as hyperscalers invest in the
infrastructure needed to process the huge
amounts of data created as our lives become
increasingly digitalised and as businesses move
their digital infrastructure online.
Hyperscalers prefer building out Cloud-related
capacity close to major population and financial
centres, where data can be transferred quickly
(known as ‘low latency’), and ideally within
clusters called Availability Zones. The Slough
Trading Estate is Europe’s largest data centre
cluster, part of the London Availability Zone, and
we estimate it provides almost half of the UK’s
data centre capacity.
The greatest constraint in these markets
isaccess to power, with long (three to five year)
lead times on new grid connections inmost
prime European data centre markets. But land is
also in short supply in these locations, so
datacentres are often competing with industrial,
and sometimes residential uses.
Finally, planning is far from straightforward
dueto environmental and political concerns,
particularly if it requires unlocking land from
green belts on the edge of cities. Sites that
havepower, zoned land and planning are
therefore very valuable assets.
These constraints mean that demand for Cloud
capacity is expected to outstrip supply over
thecoming years, although there will likely be
periods of faster expansion and others where
there is less activity, as hyperscalers tend to take
new capacity in large increments.
These same Availability Zones are also set to
benefit from demand related to AI, in particular,
the rapid scaling of ‘Inference AI’, also known
asthe ‘user-interface’. Similar to the Cloud,
many of these workloads also need to be
closeto end users, and for those related to
business activities, resilience is particularly
important. They will therefore naturally gravitate
to the same established clusters as current
Cloud facilities.
By contrast, AI training facilities, which tend to
grab much of the media headlines, are latency
insensitive and are typically located in more
peripheral areas where land and power are less
constrained and energy is cheaper. The
Inference market related to business activity is,
ultimately, expected to be much larger than the
AI training market.
We have proactively built one of the largest
banks of available power and zoned land
inEurope. Our 2.5GW+ data centre pipeline is
exclusively located in or close to established and
emerging European Availability Zones, where
demand is expected to be strong, being fuelled
by Cloud adoption today and we expect it to be
‘super-charged’ by the widespread adoption of AI.
The Simplified Planning Zone (SPZ) in Slough
pre-approves planning for both industrial and
multi-storey data centre development for the
next nine years, which provides us with a
significant competitive advantage in this
attractive data centre market.
During 2025 we strengthened our data centre
platform with key senior hires. We also brought
in dedicated energy expertise to help us
expandour power-enabled land bank and
accelerate connections.
An important milestone in our data
centrestrategy
We also announced an evolution in our data
centre strategy with the formation of the SEGRO
Premier Park DC joint venture. Thisis a 50:50
partnership with Pure Data Centres Group (Pure
DC) to build our first fully fitted data centre
inPark Royal, West London. Although we have
been active in the data centre space for over
20years, we have previously only developed
‘powered shell’ buildings so this marked a major
step-up in our strategy as we look to unlock
value from our data centre pipeline.
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Chief Executive’s statement continued
SEGRO Park Elancourt, France
We have a significant
opportunity for income
andvalue creation in our
growing 2.5GW data
centrepipeline.”
Growing the significant data centre
opportunity in our portfolio
continued
An important milestone in our data
centrestrategy continued
The joint venture brings together land owned
bySEGRO (aformer industrial site that had
insufficient existing power for data centre use)
with power secured by Pure DC. Italso allows us
to benefit from the technical expertise of a
partner with a strong track recordof working
with major hyperscalers as wemove into
delivering fully fitted facilities.
Going forward, we intend to develop both
powered shells and fully fitted facilities, with the
latter only through joint ventures such as our
partnership with Pure DC. This will allow us to
share the capital commitment and leverage
ourpartners’ expertise in leasing to, and fitting
out data centres for, hyperscalers, removing
theneed to build out this technical and
resource-intensive capability ourselves.
We can therefore executeon the significant
opportunity in our data centre pipeline in a way
that attracts themost demand for eachsite
andmaximises the income and valuegeneration
forSEGRO.
A planning application has now been submitted
for the development of the Park Royal facility
and we will start working on securing a pre-let
with amajor hyperscaler once this is approved.
Alongside this we have progressed
conversations on other data centre sites
andhave a number of powered shell and fully
fitted opportunities in various stages of
discussion, some ofwhich we hope to secure
in2026.
Driving performance through the
application of our clear strategy
Clear and disciplined approach to
capitalallocation
Whilst we have great confidence in the
long-term structural trends that underpin
demand for industrial, logistics and data
centrespace in our chosen markets, and are
encouraged by the momentum that is currently
building in occupier markets, we are also
focused on how we can drive performance
fromour portfolio through the use of levers
withinour own control.
Disciplined capital allocation has been a key
pillar of our strategy for more than 15 years and
wetake a rigorous approach to the deployment
ofcapital and its funding.
We continue to believe that development on
theland we own or already control is the most
accretive use ofour capital, profitably turning
our exceptional land bank into modern assets
inprime locations where we can drive strong
returns. Enquiry levels and active negotiations
on pre-lets point to an increased number
ofopportunities in 2026, which would allow
ustoaccelerate our development capital
expenditure and increase the utilisation
ofourland bank.
We remain very selective in our acquisition
activity, prioritising modern assets that offer
strong returns potential and complement our
existing portfolio, and land thatwe expect to
utilise in the near term.
Our investment activity is always part funded
bydisposals. Every asset in our portfolio,
including built assets and land, is regularly
assessed to ensure its expected future return
justifies a place in the portfolio. A higher interest
rate environment naturally means that we have
raised the bar not only for new investment,
butalso for what we retain. We therefore expect
to accelerate the pace of our disposal programme
in 2026 to reinvest capital in opportunities
offering more attractive risk-adjusted returns.
Operational excellence delivering growth
andincreased efficiency
Our strong customer relationships and the
expertise of our market-leading operating
platform have been instrumental in our ability
tocapture reversion and drive growth from
ourportfolio even in more challenging
marketconditions.
Over recent years we have made significant
investments into this platform both through the
opening of offices in additional markets and
digital initiatives to provide additional insights
and improve processes. These initiatives should
allow us to grow our rent roll through capturing
reversion, reducing vacancy and developing
new space without needing to add materially
toour head count or cost base.
Strong balance sheet and low average
costofdebt
Our finance team has worked hard to ensure our
balance sheet remains in great shape to support
our future plans. Leverage is moderate and should
remain so aswe increasingly look to fund more
ofour investments through disposals and we also
always consider opportunities to share capital
intensity with third-party investors.
Our weighted average cost of debt remains
lowat 2.6 per cent, helped by a diverse,
long-duration debt profile and our ability to
tapinto both euro and sterling debt markets.
Weexpect any further increases in finance costs
as we refinance maturing facilities at current
interest rates to be more than offset by the
reversion that wehave to capture within our
portfolio, helping to limit the impact on earnings.
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Chief Executive’s statement continued
Community volunteering, Poland
Successful execution of our carbon
and community initiatives
Our Responsible SEGRO ambitions are now well
integrated into the way that we do business day
to day, but we continue to challenge ourselves
to go further and faster. They are alsohaving
tangible impacts on our business performance,
helping to strengthen relationships, create new
opportunities and ensure that our business is fit
for the future.
We remain committed to our low-carbon growth
goal: reducing the carbon created by our
development programme and emissions linked
to the operation of our buildings through
improvements in energy efficiency and
increases to the solar capacity of our portfolio.
During 2025 wehad our near-term and net-zero
carbon reduction targets approved by the
Science Based Targets initiative (SBTi) and
mademeaningful progress towards them with
reductions in both our corporate and customer
and average embodied carbon intensity metrics.
Our Community Investment Plans (CIPs)
continue to be a huge success and we have
nowachieved our target of having plans in
eachof our major markets.
We have continued to broaden our volunteering
programmes, with our employees, customers,
suppliers, shareholders and other stakeholders
working together to deliver 1,227 volunteering
days in our local communities.
The impact of our CIPs on the communities near
our assets is significant 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 benefits of our
estates with our local communities positions us
as a preferred partner for local authorities and is
instrumental in creating future opportunities.
Our people at the heart
ofoursuccess
Real estate may be considered a physical asset
class but the business of acquiring, developing
and managing properties requires great people.
It is their knowledge, expertise and commitment
that builds a market-leading operating platform
and provides competitive edge. Nurturingtalent
therefore remains a key priority forourbusiness.
During 2025 we continued to strengthen our
culture, embedding our Values-led approach
toperformance, development and engagement;
completed strategic hires in senior roles; and
made further progress towards our diversity and
inclusion targets.
We want to enable our people to be their best
and fulfil their potential and I am particularly
proud of how our teams conducted themselves
during 2025.
When occupier markets are less buoyant
everything is harder. Negotiations are more
complex, getting deals signed takes longer
andrelationships become even more important.
It is in these markets that the strength of an
operating platform really shines through
andthat was true at SEGRO during 2025 as
wefaced challenges head on, refused to give
upand maximised the opportunities that
presented themselves.
I am delighted that their hard work, skills and
creativity, and professionalism have resulted
insuch a strong operating and financial
performance in 2025 and would like to thank
everyone for their contributions.
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 and ensure the future
successof our business.
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.
David Sleath,
Chief Executive
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Chief Executive’s statement continued
Colleagues at SEGRO Slough office, UK
Positioned for
long-term success
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.
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 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 were created with input from
theentire workforce; they have stood the test of time
andunderpin everything that we do.
Read more our Values on page 25
Read more about how the Board manages and monitors
ourPurposeandculture on page 79
Our strategy
Our clear strategy drives both our day-to-day decision
making and long-term thinking. Thecombination of
our Disciplined approach tocapital allocation,
commitment to Operational excellence and ensuring
we have an Efficient capital and corporate structure
keeps us focused on delivering sustainable long-term
growth in income, asset values and returns.
Responsible SEGRO
Responsible SEGRO lies at the heart of our strategy
because it is woven through everything that we do –
from the day-to-day management of our portfolio
and platform to our investment decisions. We have
three clear priorities: Championing low-carbon
growth, Investing in our local communities and
Nurturing talent.
Our business model
1. Market analysis
We anticipate long-term trends and listen
closely to our customers’ evolving needs,
ensuring we invest in the right locations.
2. Acquisitions
We acquire high-quality assets and landin
attractive markets, sourcing opportunities
off-market where possible to strengthen
our portfolio and to create futurepotential.
3. Development
We develop modern, flexible, and
sustainable buildings in key locations,
engaging with local communities
throughout the development process to
ensure our spaces deliver shared value
and make a lasting positiveimpact.
4. Active asset and customer
management
We deliver outstanding customer service
and actively manage our assets, seeking
to strike theright balance between
occupancy and rental growth. We
continuously look for opportunities to
create additional value through
refurbishment, redevelopment, and
repositioning – including exploring
alternative uses that respond to
changingneeds.
5. Portfolio review
We undertake a detailed, annual
analysisof our portfolio to maintain a clear
understanding of the risk-return profile
ofevery asset and ensure it aligns with
ourlong-term ambitions.
6. Asset recycling
We dispose of assets where returns have
been optimised or where capital can be
more effectively deployed elsewhere,
supporting sustainable, future-focused
growth.
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Our business model and strategy
Our strategic pillars
Disciplined capital
allocation
Operational excellence Efficient capital and
corporate structure
Responsible SEGRO
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 efficiency.
Underpinning the property level returns from
our portfolio with a lean overhead structure,
the best technology-enabled processes, an
efficient capital structure and appropriate
financial leverage.
Responsible SEGRO determines how our
environmental and social contributions are
embedded as priorities within our business
strategy. It is fundamental to how we create
space that enables extraordinary things to
happen and ensures that our business is fit
for the future.
2025 outcomes
• Prioritising investment into our profitable
development pipeline, signing new
pre-lets and starting speculative
development in markets where there
isstrong demand and limited supply.
• Selective asset acquisitions, focused
oncore markets and assets with
strongreturns potential and wider
portfolio benefits.
• Well-executed disposals to release capital
toinvest into opportunities with higher
risk-adjusted returns.
2025 outcomes
• 91 per cent customer satisfaction score
thanks to our proactive asset and property
management teams.
• Capturing the significant reversionary
potential in the portfolio at lease events
whilst maintaining high levels of
customerretention.
• Successful execution of our
developmentprogramme and further
reduction in our carbon emissions.
• Introduction of SEGRO Asset Management
Application (SAMA) to digitalise our asset
management process.
2025 outcomes
• Active liquidity management to reduce
theimpact of refinancing and allow for
reinvestment into higher-growth
opportunities.
• Continuation of our digital transformation
programme, including the rollout of
Copilot to all employees with a structured
training programme; and the introduction
of a new facilities management system.
• ‘Best Value initiative’ continues across the
business to identify cost efficiencies and
ensure we are getting the best value from
our suppliers, helping drive a reduction in
administrative costs.
2025 outcomes
• Approval of our near-term and net-zero
target by the Science Based Target
initiative (SBTi) and excellent progress with
our carbon commitments, continued
modernisation of older assets and an
increase in our solar capacity.
• Launch of a Community Investment Plan
in St Albans, Hertfordshire, fulfilling our
ambition to have them in each of our key
markets by 2025.
• Continued progress with our Nurturing
talent priorities, including advancing our
diversity and inclusion agenda.
Relevant risks
Relevant risks
Relevant risks
Relevant risks
Section 172 statement
Section 172 of the Companies Act 2006 requires the Directors to promote the success of the
Company for the benefit of its members, whilst having regard to the interests of stakeholders
intheir decision making.
The Board considers that it has complied with the requirements of Section 172 throughout the
year. Further details on the Board’s interactions with SEGRO’s stakeholders are set out on page 84.
Risk key
Macroeconomic impact on market cycle
Portfolio strategy and execution
Major event/business disruption
Health and safety
Environmental sustainability and climate change
Development and construction execution
Financing strategy
Legal, political and regulatory
People and talent
Operational delivery
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Our business model and strategy continued
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.
This commitment 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 lived by our employees every
day.It is about doing the right thing and making
apositive impact wherever weoperate.
Responsible SEGRO is a long-
term priority that aims to
generate value both for us and
forour stakeholders. We will
continue to evolve in response
toour changing environment
tokeep delivering mutual gain.”
Paul Dunne,
Managing Director,
Operations, Digital
and Customer
Responsible SEGRO priorities (and relevant UN SDGs)
Championing
low-carbon growth
Investing in our local
communities and
environments
Nurturing talent
We are committed to reducing both
theoperational and embodied carbon
intensity of our properties. Wewant to
play our part in tackling climate change
and have ambitious net-zero goals.
In2025, our science-based carbon
reduction targets (with a baseline of
2023) were validated by the Science
Based Targets initiative, in line with
latestbest practice.
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.
We want our people to have rewarding
andfulfilling 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.
Corporate and customer carbonintensity
20.0kgCO
2
e/sq m
Average embodied carbon intensity
280kgCO
2
e/sq m
Solar capacity
145MW
Visibility of customer energy data
91%
Number of Community InvestmentPlans
15
Charitable giving
£2.8m
Total volunteering days across projects in
our local communities
1,227
Unemployed people trained (368 of whom
are now in employment)
1,666
‘Your Say’ engagement score
88%
Training hours
8,407
Voluntary employee turnover
6%
Gender split of workforce
49% male
51% female
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Responsible SEGRO
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-financial KPIs and to the annual bonus
forallemployees.
We report a summary of our progress with
theseduring 2025 in the following section and
discuss our priorities for 2026 – more detailed
information (along with full data sets) can be
found in our 2025 Responsible SEGRO Report.
We intend to set additional, more specific,
supporting targets as necessary and expect our
actions and approach to evolve over time to
reflect our achievements, technological change
and the priorities of our stakeholders and
widersociety.
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 will comply with relevant and
applicablesustainability reporting requirements
as these become mandatory for us.
We also engage with various organisations that
review and assess our ESG performance and
disclosures. These include 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 CDP, who include us on their ‘A’ list. 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.
SEGRO Day of Giving, UK
Responsible SEGRO gives the
opportunity for us to be a
force for social and
environmental good, a key
part of what makes our
culture so special and
underpins our employee
value proposition.”
Margaret Murphy,
Group HR Director
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Responsible SEGRO continued
Read more in our
Responsible SEGRO Report:
www.SEGRO.com/Responsible-SEGRO/
Responsible-SEGRO-review
Championing low-carbon growth in 2025
Corporate and customer carbon intensity
20.0kgCO
2
e/sq m
2024: 24.0 kgCO
2
e/sq m
1
Average embodied carbon intensity
ofourdevelopments
2
280kgCO
2
e/sq m
2024: 318 kgCO
2
e/sq m
Solar capacity
145MW
2024: 123MW
Visibility of customer
energy data
91%
2024: 87%
1 Restated.
2 Excludes developments that are not representative of the
carbon intensity of our typical developments.
SEGRO’s net-zero journey
As an owner, manager and developer of
buildings, we have a significant part to play in
tackling the challenge of climate change, in line
with the guidance and commitments of the 2015
Paris Agreement and 2018 Intergovernmental
Panel on Climate Change statement.
We need to ensure that our buildings are fit for
purpose for the future. One of the ways we do
this is to build adaptable buildings, suited to
more than one customer. This ensures a longer
lifespan for the building as well as reducing the
risk of vacancy and future refurbishment costs.
Championing low-carbon growth has been
apriority for SEGRO for over a decade.
Wehavehad our carbon footprint data
externally assuredannually since 2014.
99 per cent of our carbon emissions in 2025
were scope 3, and, as can be seen in the chart to
the left, the two largest contributors were
energy use in our spaces (our ‘corporate and
customer’ carbon emissions) and the energy
connected to the materials that we use in our
construction and refurbishment projects (our
‘embodied’ carbon emissions). Together these
accounted for 90per cent of our emissions.
We originally set carbon reduction targets in
2021, and after consistently tracking in line with
or ahead of these targets we set new targets
in2024. Both sets of targets were approved
under the international Science Based Targets
initiative (SBTi). The SBTi methodology identifies
pathways for companies to reduce
theemissions within their value chains to align
with 1.5°C pathways.
Our carbon reduction targets
Our targets are based on reductions in both
corporate and customer carbon intensity and
embodied carbon intensity. These targets are
based on sector-specific SBTi ‘Buildings’ criteria
and were validated by the SBTi in July 2025.
Our targets have a baseline of 2023, a near-term
interim goal in 2034 and a net-zero target year
of 2050. The target trajectories are steeper to
2034, then shallower out to 2050. The near-term
2034 targets are an 80 per cent reduction in
corporate and customer carbon intensity and a
58 per cent reduction in the embodied carbon
intensity of our developments. Once our 2050
target year is reached, the SBTi target
methodology allows for offsetting residual
emissions with best practice carbon removals,
accounting for a maximum of 10 per cent
oftarget emissions.
Setting targets under the new criteria has
allowed us to identify some methodology
improvements (outlined in our Responsible
SEGRO Report 2025). This means that the 2023
and 2024 figures disclosed are a restatement
ofour previously reported figures. We anticipate
that improvements to calculations and
methodology, and the associated restatements
and rebaselining, will be important and ongoing
features of our carbon management efforts.
We are committed to making a commensurate
and ambitious contribution to limiting global
warming. However, not all of the actions
neededto meet our targets are within our
control, and carbon accounting methodologies
are still evolving. Setting and publicising
carbonreduction targets are crucial elements
ofcarbon governance, and we are committed
tobeing transparent about our journey.
Key elements of our carbon
reduction strategy
Corporate and customer emissions:
• Improve the energy efficiency of our units
through construction and refurbishment
by targeting an Energy Performance
Certificate (EPC) rating of B or better,
ensuring alignment with and
preparedness for potential upcoming
regulatory requirements.
• Install solar panels to generate energy
forour customers, optimise on-site usage
through battery storage and microgrid
technology, and, where grid capacity
allows, export surplus electricity to the
local network.
• Replace fossil fuel heating systems
withefficient electrical heating.
• Purchase certified renewable electricity
for SEGRO’s own use and for those
customers on whose behalf we
procureenergy.
• Where customers do procure their own
energy (the majority of cases), encourage
them to procure certified renewable
electricity and track uptake – using our
‘green lease’ clauses.
Embodied carbon emissions:
• Work with our partners to procure
andutilise low-carbon materials such
astimber and recycled electric arc
furnace steel.
• Support the development of low-carbon
concrete solutions and adopt them
widely once proven suitable.
• Design embodied carbon out of
ourbuildings, changing layouts
andgeometries.
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Responsible SEGRO continued
SEGRO’s carbon footprint
‘000 tCO
2
e
l
Corporate and customeremissions
52%
l
Total embodied carbon
38%
l
Other procurement relatedemissions
10%
215
153
39
Corporate and customer emissions intensity
(kgCO
2
e/sq m)
Maximise the use of zero-carbon
electricityin our portfolio
Generate and optimise
zero-carbon electricity
Efficient use
oflow-carbon
heating
80%
reduction
by 2034
Net Zero
by 2050
Embodied carbon intensity of developments
(kgCO
2
e/sq m)
Build with low-carbon materials
Design low-carbon
buildings
58%
reduction
by 2034
Net Zero
by 2050
Championing low-carbon growth in 2025 continued
Our progress in 2025
We are committed to driving carbon out of our
business as quickly as we can and helping our
customers reduce their own carbon footprints.
We focus our carbon reduction activity on the
areas which are most material: emissions related
to our development programme and from energy
use in our spaces. To manage targets in these
areas we use an emissions forecasting process,
supported by a dynamic governance process
for our carbon management efforts. We also
continue to utilise our powerful carbon reporting
platform to help us to manage the thousands of
gas and electricity datapoints and deploy
sophisticated estimation methods to fill gaps.
We continue to rigorously review and implement
best practice reporting methodologies at the
same time.
Our corporate and customer carbon intensity
reduced by 17 per cent from 2024 to 2025,
primarily driven by lower-carbon electricity
being used in our spaces, and helped by our
rooftop solar panels.
The average embodied carbon intensity
ofrepresentative developments in our
development programme reduced by
12percent from 2024 to 2025. Our Mandatory
Sustainability Policy commits us to carry
outthird-party verified embodied carbon
assessments for all development projects over
5,000 sq m, and we work closely with our
suppliers to innovate and remove carbon
wherever possible. Key steps we have taken
inour 2025 developments include increasing
our use of low-carbon steel, cement
replacements and timber.
We are therefore on track for both of our main
science-based carbon reduction targets, as can
be seen inthecharts below. However, as our
2024 corporate and customer intensity shows,
we donot expect progress towards our targets
tobe linear. Achievement of our targets is
alsohighly dependent on the actions of our
stakeholders and developments in the wider
market, particularly the rollout of renewable
energy generation capacity and low-carbon
building materials.
Beyond our approach to carbon, we also
thinkcarefully about the impact of our
operations on other natural resources and the
local environment. Biodiversity remains an
important focus, and our development projects
aim to have a positive impact on our local
communities and environments. We also
support our customers in managing water
consumption, and our construction partners in
minimising waste generation and maximising
reuse opportunities.
2025 highlights
• 17 per cent reduction in corporate and
customer emissions intensity.
• 12 per cent reduction in the embodied carbon
intensity of our developments.
• 4 per cent increase in the visibility we have
ofour customer energy data.
• 81 per cent of the portfolio with an EPC rating
of B or better (2024: 76 per cent).
• 100 per cent of our development completions
were rated BREEAM ‘Excellent’ orhigher.
• 145 MW solar capacity installed at our
properties, a 22 MW increase in 2025.
• On track for both of our main science-based
net-zero targets.
Priorities for 2026
• Drive further reductions in our corporate
andcustomer emissions.
• Continue to increase the automation of the
retrieval ofourcustomers’ energy data.
• Continue to replace gas with efficient
low-carbon heatsources.
• Work with our supply chain partners
tofurtherreduce embodied carbon.
• Progress our solar installationstrategy,
whereeconomically viable.
• Prepare for the Energy Performance in
Buildings Directive Recast 2024, which is due
to impact our European markets in May 2026.
• Deliver SEGRO-wide biodiversity assessment.
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Responsible SEGRO continued
22.5
24.0
20.0
2023
2024 2025
331
318
280
2023
2024 2025
* Restated.
* *
Investing in our local communities and environments in 2025
Supporting the communities
that live and work around
ourkey industrial assets is
acore part of our Purpose
andstrategy, and something
we care deeply about.
We are committed to building strong, long-term
relationships with local organisations so that
together, we can make a positive and lasting
difference in the places where we have a
significant presence.
We believe that working in partnership with
organisations who truly understand the needs
oflocal communities enables us to have the
biggest impact. By taking this approach, we can
help tackle issues such as inequality and poverty
and make a meaningful difference to the lives of
people living close to our sites across the UK
and in Europe.
We work with a wide range of trusted charity
partners who bring deep local insight into the
challenges communities face, alongside the
expertise and resources needed to deliver
programmes that are practical, outcome-
focused and capable of making a lasting
impact.We bring this to life through Community
Investment Plans (CIPs), which provide a clear
framework for investing in projects that improve
the quality of life for local people – particularly
those facing barriers to careers advice,
employability support, and health and
wellbeingservices.
The CIP programme enables our teams in
keymarkets to respond effectively to local
priorities through impactful community
andenvironmental programmes.
Areas of focus
Education and employment: We partner with local
education establishments to help prepare young
people for the world of work through our
education programme, as well as helping people
from disadvantaged or marginalised backgrounds
into employment or better jobs. Since its launch in
2022, the programme has engaged over 36,000
students from diverse backgrounds in the UK,
Poland, Germanyand France, as well as helping
1,126 unemployed people into work.
Environment: Delivers community projectsthat
improve the biodiversity of thelocal area and
the health and wellbeing ofthelocal residents.
Volunteering is a vital part of the
success of our CIPs
Our employees, customers, suppliers and public
sector partners have proved once again the
incredible impact they can have when they
cometogether with a shared goal of improving
the lives of local people. During 2025 a total of
442 employees (95 per cent of the workforce)
participated, along with 354 suppliers, customers,
public sector partners and financial stakeholders,
delivering a total of 1,227 volunteering days.
We also launched our fifteenth CIP in St Albans,
Hertfordshire, which is linked to the delivery of
our new scheme SEGRO Logistics Park Radlett.
We now have 15 CIPs in place across the UK and
Europe, initial projects included: our Spanish
team launching their first sustainability education
programme, and Poland celebrating their
five-year anniversary of SEGRO Academy which
has helped develop the skills of 5,077 students.
Alongside our employees we had a tremendous
response with 202 customers and suppliers, by
providing volunteers to mentor and host school
visits to their businesses or construction sites,
aswell as supporting projects that helped
improve the environment for local communities.
Our buildings also play animportant role in
supporting our local communities. Our estates
provide valuable space for charity partners
suchas City Harvest, Slough Foodbank and
TheFelix Project to distribute food, that would
otherwise be wasted, to vulnerable people in
ourlocal communities.
2025 highlights
• Community projects are now being delivered
in 23 regions, cities and towns across
ourportfolio.
• A record numbers of customer, suppliers
andpublic sector stakeholders participated
inthe CIP programme.
• New CIP launched in St Albans, Hertfordshire.
Priorities for 2026
• Expand participation in the CIP by increasing
the number of engaged customers, public
sector partners, and suppliers.
• Strengthen data collection and analytic
platform to improve programme efficiency,
performance management, and outcomes.
• Embed further qualitative measurement within
the CIP programme to better capture lived
experience, progression, and wider impact.
• Measure and communicate the social value
impact of the 2025 CIP programme (UK only).
The impact of our Community
Investment Plans during 2025
Young people engaged
11,343
2024: 10,289
36,575 since launch of CIP programme
Environmental community projects
54
2024: 49
173 since launch of CIP programme
Unemployed people trained
1,666
2024: 1,197
4,946 since launch of CIP programme
Unemployed people into employment
368
2024: 349
1,126 since launch of CIP programme
Students mentored by SEGRO employees
andcustomers
154
2024: 140
418 since launch of CIP programme
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SEGRO plc Annual Report & Accounts 2025
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Responsible SEGRO continued
Charitable giving
in 2025
£2.8m
2024: £2.3m
Total
volunteering days
1,227
2024: 973
Number of Community
Investment Plans
15
2024: 14
Nurturing talent in 2025
Our Purpose ofcreating the
space that enables extraordinary
things to happen is as relevant
forthe 463 people that we
employ across nine countries as
it is forour other stakeholders.
Our People are at the heart of our success and
central to who we are. We are committed to
nurturing a diverse community where colleagues
can thrive, grow and perform at their best.
High standards of conduct are embedded in
ourCode of Business Conduct and Ethics,
guiding how we work every day.
During 2025 we embedded our Values-led
approach across performance, development and
engagement to help strengthen our culture.
Colleague engagement remained high, supported
by our ‘Say it like it is’ value, which encourages
open and honest conversations and ensures
colleague feedback shapes meaningful action
atboth local and Group-wide levels.
Talent retention also remained strong with
voluntary turnover at just 6 per cent, reflecting
thecare that underpins our employee experience.
We continued to strengthen leadership
andfuture skills, combining selective senior
appointments, including our new Chief Financial
Officer, with enhanced development for existing
leaders. We also continued to build our Data
Centre and Energy capabilities, reflecting their
growing strategic importance and the long-term
opportunities within these rapidly expanding
sectors. This involved targeted recruitment
andevolving how our existing expertise is
aligned across the Group, ensuring we are well
positioned to scale effectively and meet future
customer demand.
Our commitment to inclusion and diversity
advanced in a thoughtful way. Our workforce
remains broadly gender balanced, with 51 per cent
women and 49 per cent men. We are proud of the
meaningful progress made towards our senior
leadership gender goal of 40per cent female
representation by the end of 2025: it was 39 per
cent at the end of 2025, rising further to 41 per
cent at 1 January 2026. Progress on ethnic minority
representation in senior leadership is developing
more slowly, and we remain committed to steady,
sustainable improvement towards our 15 per cent
target by the end of 2027
2
.
We want colleagues to work in a healthy,
safeand secure environment supported by
comprehensive health and safety training,
wellbeing initiatives and appropriate
adjustments for employees who are, or become,
disabled. Our Accident Incident Rate
3
in 2025
was 0.46 (2024: 0.46).
To attract and retain the best talent we offer
competitive compensation including variable
pay, share awards and a broad range of benefits,
including enhanced family-friendly policies.
Wealso invest in training, development and
secondment opportunities to help colleagues
build skills and grow their careers.
1 Achieved by 1 January 2026.
2 Read more on Diversity, Inclusion and Equal Opportunity,
including key statistics, on page 96.
3 Employee injuries per 100,000 hours worked.
2025 highlights:
• Embedded our Values-led approach across
performance, development and engagement.
• Key senior hires to strengthen our leadership
capability and enhanced development for
existing leaders.
• Advanced our diversity and inclusion agenda,
achieving our target to have 40 per cent
women in senior leadership roles shortly after
year end.
Our priorities for 2026:
• Strengthen understanding of our employee
proposition, giving clarity on what sets SEGRO
apart and what supports high performance.
• Review our reward structures to ensure
optimal alignment with our strategy,
performance goals and diverse roles.
• Further develop current and future leaders
toensure SEGRO benefits from strong,
forward-looking leadership.
Our Values
Say it like it is
We always give honest feedback, keep our
promises and keep messaging clear and simple.
Stand side by side
We work together and put the interests ofour
business ahead of our own. We go out of our way
to support each other and share knowledge across
the business.
If the door is closed…
If one route is closed to us, we always find another
way. We challenge ourselves to think differently
and search for new ways to succeed.
Keep one eye on the horizon
We constantly look ahead to ensure we are
successful in the future. We do this in part by
taking an active interest in our customers and
theircustomers.
Does it make the boat go faster?
We keep things simple and continue to look for
improvements to how we work.
UK Gender and Ethnicity Pay
andBonus Gap
SEGRO continues to report a gender pay
gap above the national average, though the
gap is steadily narrowing, supported by
increased female representation in senior
roles. While the mean gender bonus gap
rose this year due to a small number of LTIP
and share-related payments, the median
bonus gap continued to decline. Our
ethnicity data similarly reflects the profile of
our workforce. The mean ethnicity pay gap
has reduced to 24.1 per cent, alongside a
corresponding reduction in the ethnicity
bonus gap.
Gender
pay gap
(mean)
1
2025
2024
Gender
bonus
gap
(mean)
2025
2024
Ethnicity
pay gap
(mean)
2
2025
2024
Ethnicity
bonus
gap
(mean)
3
2025
2024
1 2024: This is an adjusted figure that excludes a small
number of one-off payments. Including these reduces
themean gender pay gap to 30.3 per cent.
2 2024: This is an adjusted figure that excludes a small
number of one-off payments. Including these increases
the mean ethnicity pay gap to 37.4 per cent.
3 2025: This is an adjusted figure that excludes a small
number of one-off LTIP/Share payments. Including these
further reduces the mean ethnicity bonus gap to 19 per
cent in favour of ethnic minorities.
25
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SEGRO plc Annual Report & Accounts 2025
Overview Strategic Report Governance Financial Statements Further Information
Responsible SEGRO continued
32%
79%
24%
58%
39%
68%
31%
63%
‘Your Say’ engagement
scores
88%
(Participation rate: 94%)
2024: 86%
% of women in senior
leadership roles
41%
1
2024: 36%
2025 target of 40%
% of ethnic minorities in
senior leadership roles
6%
2024: 6%
2027 target of 15%
Measuring
success
We measure our success
bytracking KeyPerformance
Indicators (KPIs) that reflect
ourstrategic, operational
andfinancialprogress
andperformance.
They drive the internal management of the business,
andsome are used to determine how management
andemployees are remunerated.
Financial
These indicators reflect the metrics that we are most
focused on when measuring our financial success and
the economic value that we are creating. They help us
to make informed decisions about our strategy and
identify where we should prioritise our efforts.
Non-financial
These indicators link to our Responsible SEGRO
priorities and help to measure the shared value
ourbusiness creates to ensure that our business
ispositioned for long-term success. We intend for
ournon-financial KPIs to evolve as we progress
towardsour stated ambitions.
For a description of our financial KPIs use
theQRcode or visit our website at
www.SEGRO.com/investors/investment-
case/key-performance-indicators
Total shareholder return (TSR) %
7.4%
7.4%
(18.3)%
20.3%
2025
2024
2023
Our performance
Our TSR was 7.4 per cent, compared with 11.3 per cent
forthe FTSE 350 Real Estate index as markets
favoured higher yielding portfolios and near-term
income during 2025. TSR reflects a combination of the
29.9 pence dividend (20.2 pence 2024 final dividend
and 9.7 pence 2025 interim dividend) paid during
theyear, and an increase in the share price from
701.2pence at 31December 2024 to720.4 pence
at31December 2025.
Links:
Link to remuneration: Yes
Total property return (TPR) %
5.7%
5.7%
5.2%
(0.5)%
2025
2024
2023
Our performance
The TPR of the Group’s standing assets held
throughout 2025 was 5.7 per cent (2024: 5.2 per cent).
The UK portfolio generated a TPR of 5.2 per cent,
behind the benchmark calculated by MSCI Real Estate
UK All Industrial Quarterly of 7.2 per cent. The TPR
ofour Continental Europe portfolio was 5.8 per cent.
Benchmark data for Continental Europe will be
received later in the year.
Links:
Link to remuneration: Yes
Total accounting return (TAR) %
5.3%
5.3%
3.1%
(3.3)%
2025
2024
2023
Our performance
Our TAR was 5.3 per cent (2024: 3.1 per cent).
Thisperformance reflects a combination of the
18pence increase in Adjusted NAV from 907 pence at
31December 2024 to 925 pence at 31December 2025
and the 29.9 pence dividend (20.2 pence 2024 final
dividend and 9.7 pence 2025 interim dividend) paid
during the year.
Links:
Link to remuneration: Yes
Adjusted earnings per share
(EPS) pence
36.6p
36.6
34.5
32.7
2025
2024
2023
Our performance
Adjusted EPS increased by 6.1 per cent to 36.6 pence
during the year, reflecting higher rental income
fromour standing assets and new income from
acquisitions and developments.
Links:
Link to remuneration: Yes
Rent roll growth £m
£71m
71
56
65
2025
2024
2023
Our performance
In total, we generated £71 million of net new
annualised rent during the year (2024: £56 million). The
increase was driven by a record level ofrent signed at
reviews and renewals and a highernumber of pre-lets
signed (£26 million versus £20 million in 2024) as
occupier sentiment improved during the second half
of the year.
Links:
Link to remuneration: Yes
Loan to value (LTV) %
31%
31%
28%
34%
2025
2024
2023
Our performance
Our LTV ratio increased to 31 per cent during
2025.With the value of our portfolio broadly
unchanged during the period, this was mostly
duetoour investment activity, both development
capex and asset acquisitions. This is within our
leverage tolerance and gives us plenty of liquidity
tofund both visible investment and potential
opportunities that may arise.
Links:
Link to remuneration: No
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SEGRO plc Annual Report & Accounts 2025
Overview Strategic Report Governance Financial Statements Further Information
Key performance indicators: financial
Corporate and customer
emissions intensity kgCO
2
e/sq m
20.0
20.0
24.0
22.5
2025
2024
2023
Our performance
Our corporate and customer carbon intensity
decreased by 17 per cent to 20 kgCO
2
e/sq m during
2025,versus 2024 (restated). We continue to work
closely with our customers, including data centre
operators, supporting their progress towards their
owndecarbonisation commitments.
Links:
Link to remuneration: No
Customer satisfaction %
91%
91%
86%
86%
2025
2024
2023
Our performance
Satisfaction as an occupier of our buildings was
ratedas‘good’ or ‘excellent’ by 91 per cent of the
294customers who participated in 2025 (2024: 86 per
cent). The continued high satisfaction rate reflects
ourfocus on communication, being responsive and
understanding the needs of our customers and is
particularly pleasing given the cost pressures that
some of them are under (including rental increases).
Links:
Link to remuneration: Yes
Embodied carbon intensity
kgCO
2
e/sq m
280
280
318
331
2025
2024
2023
Our performance
The average embodied carbon intensity in our
development programme was 280 kgCO
2
e/sq m
reflecting a 12 per cent improvement versus 2024. We
continue to reduce this through use of low-carbon or
recycled materials, including concrete, steel and
timber, across multiple projects.
Links:
Link to remuneration: Yes
Employee engagement %
88%
88%
86%
89%
2025
2024
2023
Our performance
Our 2025 employee engagement score was
88percent. 94 per cent of our people responded
and88per cent of employees said that they are
proudto work at SEGRO. 88 per cent of
employeesbelieve that all people are valued at
SEGRO,regardless of gender, ethnicity, disability,
sexual orientation or background.
Links:
Link to remuneration: Yes
Visibility of customer energy
use%
91%
91%
87%
81%
2025
2024
2023
Our performance
Under standard market lease terms we do not have
automatic visibility of customer energy usage data.
Werecognise the importance of having good visibility
of this data so we can accurately assess our Scope 3
emissions and help our customers to reduce their own
carbon footprint as well as improving their energy
efficiency. The visibility of our customers’ energy
useimproved to 91 per cent (2024: 87 per cent)
ofourtotal property footprint by area.
Links:
Link to remuneration: Yes
Volunteering days
1,227
1,227
973
707
2025
2024
2023
Our performance
In 2025, 442 employees (95 per cent of the workforce)
worked alongside 354customers, suppliers, public
sector partners and financial stakeholders to deliver
atotal of 1,227 volunteering days. This represented
a26 per cent increase in volunteering days from
2024to 2025.
2023 note: employees only; other volunteering
notmeasured.
Links:
Link to remuneration: Yes
For a description of our non-financial
KPIs use the QR code or visit out
website at
www.SEGRO.com/responsible-
SEGRO/our-strategic-priorities
See more on our strategy on
page 18
We recognise that the management of risk
has a role to play in the achievement of our
strategy and KPIs. Risks can hinder or help
us meet our desired level of performance:
Read more about our risk management
on page 56
Where relevant we have linked our KPIs
directly to SEGRO’s incentive schemes.
Find out more in Remuneration on
page 106
Find out more about Responsible SEGRO
on page 20
Strategy key
Responsible SEGRO
Disciplined capital allocation
Operational excellence
Efficient capital and corporate structure
Risk key
Macroeconomic impact on market cycle
Portfolio strategy and execution
Major event/business disruption
Health and safety
Environmental sustainability and climate change
Development and construction execution
Financing strategy
Legal, political and regulatory
People and talent
Operational delivery
27
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SEGRO plc Annual Report & Accounts 2025
Overview Strategic Report Governance Financial Statements Further Information
Key performance indicators: non-financial
Portfolio update
Our portfolio delivered growth
in asset values, market rents
and rent roll during 2025 as
both occupier and investor
sentiment improved.
Strategy key
Responsible SEGRO
Disciplined capital allocation
Operational excellence
Efficient capital and corporate structure
SEGRO Centre Dagenham, UK
SEGRO Logistics Park Cerdanyola, Spain
2025 at a glance
Assets under management
£22.0bn
2024: £20.3bn
2025 highlights
• Asset values increased in 2025, with
theUK and Continental European
portfolios both delivering a positive
valuation performance for the first time
since 2022, driven bystable yields and
further ERV growth.
• However, ERV growth differed
significantly between markets. It was
strongest in parts of the portfolio where
there was active letting activity, for
example in West London and Germany.
• Rent roll growth was strong, driven
byboththe existing portfolio and
development pipeline, and we had
lesstakebacks than in recent years.
Link to our strategic pillars
Portfolio valuation
£19.0bn
2024: £17.8bn
Portfolio valuation change
1
+1.0%
2024: +1.1%
ERV growth
+2.3%
2024: +3.2%
Rent contracted
£99m
2024: £91m
Pre-lets signed
£26m
2024: £20m
Portfolio value increased to
£19.0 billion, further market
rentalgrowth
Warehouse property values were stable during
2025 in an uncertain environment, with investor
sentiment impacted by concerns about the
trajectory of GDP growth and interest rates.
Transaction volumes were muted, and although
the fundamentals of industrial and logistics
assets continued to appeal to investors, most
activity was focused on smaller lot sizes and
higher-yielding (lower-quality) assets or those
with near-term reversionary opportunity. The
prime assets that traded, supported current
yields and in more active markets (for example
Spain) there was a small amount of yield
compression. Given the relatively small amount
of absolute portfolio value growth, some of our
country-level changes were driven by specific
events or circumstances (for example
acquisition costs on a transaction in our Czech
portfolio and yield adjustments on a group of
assets nearing lease expiry in Poland).
Estimated market rental values (ERVs) have
increased across the portfolio, albeit at a
lowerlevel than recent years, with the UK
outperforming Continental Europe. Rental growth
has varied significantly between sub-markets,
with those experiencing more leasing activity,
whether rent reviews, renewals or new lettings
returning the strongest performance (for
example West London) whereas markets with
more supply and slower take-up have returned
the weakest performance (for example East
London and some of our development-led big
box markets such as Poland).
1 Percentage valuation movement during the period based on
the difference between opening and closing valuations for all
properties including buildings under construction and land,
adjusting for capital expenditure, acquisitions and disposals.
The valuation movement cannot be directly derived from the
Financial Statements and is calculated to be comparable with
published MSCI Real Estate indices against which SEGRO
ismeasured. Table 3 on page 182 provides a reconciliation
tothe Financial Statements.
28
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SEGRO plc Annual Report & Accounts 2025
Overview Strategic Report Governance Financial Statements Further Information
Performance review
Portfolio value increased to
£19.0 billion, further market
rentalgrowth continued
The Group’s property portfolio was
valuedat£19.0 billion at 31December 2025
(£22.0 billion of assets under management).
Thisequates to a 1.0 per cent increase in the
value ofthe portfolio (after adjusting for
capitalexpenditure and asset recycling)
withboth the UK and Continental Europe
portfoliosshowing value growth; this
comparesto 1.1 per cent growth in 2024.
Thenettrue equivalent yield on our portfolio
at31December 2025 was 5.5 per cent
(31December 2024: 5.4 per cent).
Assets held throughout the period increased
by1.3 per cent (2024: 0.9 per cent), supported
by stable yields, 2.3 per cent growth in ERVs
(2024: 3.2 per cent increase) and the benefit
ofour asset management initiatives.
• Assets held throughout the period in the UK
increased in value by 1.6 per cent (2024:
1.8per cent increase). The lower initial yield
ofour prime portfolio and larger land bank
have led to underperformance versus the
MSCI Real Estate All Industrial Quarterly Index
(which has a higher income yield) which
increased by 2.6per cent over the same
period. The net true equivalent yield applied
to our UK portfolio was 5.4 per cent
(31December 2024: 5.3 per cent).
Rentalvalues improved by 3.1per cent
(2024:3.7 per cent) driven by 4.7 per cent
growth inour Heathrow and Park
Royalportfolios.
• Assets held throughout the year in
Continental Europe increased in value by
1.0per cent (2024: 0.8 per cent decrease)
ona constant currency basis, driven by
stableyields (unchanged at 5.6 per cent)
andrental value growth of 1.0 per cent
(2024:2.3 per cent).
Unrealised gains and losses on whole portfolio as at 31December 2025 (£m)
£93m
£0m
£66m
(£9m)
£18m
£22m
£8m
(£2m)
£196m
UK
France
Germany
Poland
Italy
Spain
Netherlands
Czech
Republic
Total
Annualised rent potential as at 31December 2025 (£m)
£755m
£220m
£62m
£493m
£1,530m
Passing rent at
31 December 2025
Rent in rent free,
vacancy and
reversions
Current and near-
term development
pipeline
Future development
pipeline and options
Total potential
£99 million of new headline rent
signed in 2025
At 31December 2025 our portfolio generated
passing rent of £755 million, rising to £823 million
once rent-free periods expire (headlinerent).
We signed £99 million of new headline rent
commitments during the period. This equates to
£71 million of rent roll growth (2024: £56 million)
net of space taken back at lease expiry,
including £41 million netnew headline rent from
existing space (see‘Asset Management and
Investment Update’ on page 30) and £30 million
related to development (including pre-lets
signed) (see ‘Development Update’ on page 33).
What to expect in 2026
Property yields are driven by a multitude
ofmarket, economic and financial factors,
including interest rates, most of which are
outside our direct control, as well as market
expectations of rental growth.
The fundamentals for our sector remain strong,
with occupier demand supported by structural
trends and limited supply, which leaves us
optimistic about the prospects for further rental
value growth. We continue to expect ERV
growth of 3 to 6 per cent for urban and 2 to 4
per cent for big box logistics over the medium-
term, although there may be times it temporarily
falls below this, like we experienced in certain
parts of the business in 2025.
We expect rent roll to increase further through
leasing vacant or recently developed space, the
capture of reversion within the existing portfolio
and by signing further pre-lets in response to
occupier demand. We have the potential to
addalmost £800 million of new rent over the
coming years through ouractive asset
management of the existing portfolio and the
build out of our high-quality land bank (including
land options).
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SEGRO plc Annual Report & Accounts 2025
Overview Strategic Report Governance Financial Statements Further Information
Performance review continued
Asset management and investment update
2025 at a glance
New rent from existing portfolio
£66m
2024: £70m
2025 highlights
• The existing portfolio was once again
alarge contributor to rent roll growth
in2025.
• We continue to make great progress
capturing reversion and have also
increased occupancy.
• We had our new SBTi targets approved
and made great progress in reducing
ourcarbonemissions.
• Our investment activity has been more
muted but we added some excellent
assets totheportfolio that we expect
todeliver strong risk-adjusted returns.
Link to our strategic pillars
Uplift on rent reviews and renewals
36%
2024: 34%
Customer satisfaction
91%
2024: 86%
Corporate and customer
emissionsintensity
20.0kgCO
2
e/sq m
2024: 24.0 kgCO
2
e/sq m
1
Asset acquisitions
£232m
2024: £431m
Asset and land disposals
£57m
2024: £896m
1 Restated, see page 22.
Driving growth in the existing
portfolio through active asset
management
Our focus on Operational excellence is key
todelivering growth through the existing
portfolio, whether that means providing the
bestcustomer experience throughout the
customer’s ‘journey’ with SEGRO, optimising
rental income and lease terms, ensuring
consistency of operating standards, or driving
efficiency through continuous improvement
andthe digitalisation of processes.
Our market-leading operating platform, with
itslocal footprint, experienced teams and
mostly internalised asset and property
management structure, helps us to build strong
and meaningful relationships with our
customers and other business partners. These
interactions, along with the data-driven insights
provided by our digital platform, help us to
anticipate changing requirements and manage
our assets to generate long-term
outperformance. As a result, our existing
portfolio continues to contribute a significant
amount to the growth ofour rent roll as we
manage our assets to capture reversion, drive
rents and create additional value through
refurbishment and redevelopment.
During 2025 the existing portfolio delivered £66
million of new headline rent (2024: £70 million).
This comprised £29 million on new lettings
(2024:£32 million) and £37 million from the
capture of reversion (the difference between
in-place and market rents) on rent reviews
andrenewals, and from inflation-related uplifts
inindex-linked leases (2024: £38 million).
Thiswasoffset by rent lost from space taken
back of £25 million (2024: £32 million).
Strong and diversified
customerbase
Understanding our customers and their evolving
needs is crucial to the success of our business.
Theinsights that we gain from these partnerships
help us to shape our portfolio and ensure that
our buildings are fit for the future and suitable
for occupiers’ evolving needs.
Our customer base remains well diversified,
reflecting the flexibility of warehouse space
andthat two-thirds of our portfolio is in urban
locations. Our top 20 customers account for
33per cent of total headline rent. Amazon
remains our largest customer at five per cent
ofour total rent roll.
Customers from the retail sector were the
largest takers of ourspace during 2025, as they
returned to growth mode, closely followed by
the transport and logistics sector as they take on
new consumer and retail related contracts and
focus on prioritising efficiency, resilience and
sustainability across their operations. Our urban
spaces continue to appeal to adiverse range of
businesses who provide value-added goods and
services to nearby growingpopulations.
The health of our customer base remains strong:
rent lost due to insolvency was £4 million
(2024:£9 million), approximately 0.5 per cent
ofour headline rent. Our income at risk
‘watchlist’ remains small and rent collection
istracking at normal levels.
30
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SEGRO plc Annual Report & Accounts 2025
Overview Strategic Report Governance Financial Statements Further Information
Performance review continued
98% of our customers
wouldrecommend
SEGROto others, which
weattribute to the quality
of our spaces and the
service offered by our
market-leading
operatingplatform.”
Focused on delivering excellent
customer service
While the quality and location of our portfolio
are of primary importance to our customers,
building outstanding customer relationships
through consistently excellent customer service
is also critical. This supports our high customer
retention rates, underpins rental growth and
helps create new business opportunities.
We often work with our larger customers in
more than one location and regularly across
geographies: 26 per cent of our headline rent
comes from customers with whom we have
leases in more than one country. Our cross-
border customer account teams help to ensure
that we offer a streamlined and informed
approach to these businesses.
To maintain a clear understanding of our
customers’ needs, we carry out a rolling survey
throughout the year to identify and rectify issues
promptly. In 2025, we spoke to294 customers,
and 98 per cent said that theywould
recommend SEGRO to others (2024:97 per
cent) while 91per cent said they rated their
experience withSEGRO as ‘Excellent’ or
‘Good’ (2024: 86per cent).
In 2025 we furthered our customer insight
programme, expanding our use of senior
stakeholder interviews and advancing our
‘Growth-Generation’ project to identify new
opportunities to work with existing customers.
We continued to bring customers together
through our Futures Forums, using these
engagements to explore emerging trends,
shareperspectives and identify opportunities
formutual growth. This insight-led approach
ishelping us deepen relationships and
shapenew propositions in both established
andhigh-growth sectors.
Active asset management to capture
reversion, drive rents and create value
The active asset management of our portfolio
reflects our goal of generating outperformance
through the cycle. We create plans for every
single asset as part of our annual asset review
process, aiming to strike a balance between
maintaining current high occupancy and
creating opportunities to drive future rents
andcreate value through refurbishment,
redevelopment or conversion to alternative,
higher-value uses, such as data centres.
We monitor a number of metrics that help us
assess the performance of our existing portfolio:
• Excellent progress in capturing the
embedded reversion within our portfolio.
Lease reviews, renewals and regears during
the period generated a record uplift of 36 per
cent (2024: 34 per cent), adding £31 million
ofnew headline rent. New rents agreed were
46per cent higher in the UK (2024: 43 per
cent) as reversion accumulated over the past
five years was reflected in new rents agreed.
Annual indexation uplifts in Continental
Europe help us to capture reversion each
year, resulting in lower uplifts at lease events
of 6 per cent (2024: 7 per cent), albeit still
reflecting rental growth in excess of inflation
due to active asset management by our
teams. As at 31 December 2025, our
portfoliois 12 per cent reversionary, providing
us withthe opportunity to capture a further
£99 million ofheadline rent, £33 million of
which is up for rent review or renewal in 2026.
• Customer retention rate remained high at
82 per cent. Approximately £100 million of
headline rent was at risk from a break or lease
expiry during the period, of which we have
retained 81 per cent in existing space
(2024:78 per cent), and a further 1 per cent
innew premises (2024: 2 per cent).
• Occupancy has improved significantly to
94.9 per cent (2024: 94.0 per cent),
reflecting positive net absorption on
ourexisting space and a strong letting
performance in our recently completed
speculative projects. The occupancy rate
excluding recently completed speculative
developments was 95.4 per cent (2024:
95.4per cent) and the average occupancy
rate during the period was 94.1 per cent
(2024: 95.7 per cent).
• Lease terms continue to offer attractive
income security. The level of incentives
agreed for new leases decreased to 8.0 per
cent of headline rent (2024: 8.1 per cent).
Incentives decreased on both the standing
portfolio to 6.6 per cent (2024: 6.8 per cent)
and new developments (9.9 per cent versus
10.4 per cent in 2024). We maintained the
portfolio’s weighted average lease length,
with 7.1 years to first break and 8.2 years to
expiry (2024: 7.2 years to first break, 8.4 years
to expiry). Lease terms are longer in the UK
(8.7 years to break) than in Continental Europe
(4.9 years to break), reflecting the market
convention of shorter leases in countries
suchas France and Poland.
31
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SEGRO plc Annual Report & Accounts 2025
Overview Strategic Report Governance Financial Statements Further Information
Performance review continued
MPM Flooring, Slough Trading Estate, UK
Championing low-carbon and
supporting our customers with
theirown ambitions
Ensuring that our portfolio meets the highest
sustainability standards is key to us achieving
our Championing low-carbon growth targets,
and also helps us to attract and retain
customers. Many businesses now have their
own carbon reduction targets and the most
sophisticated occupiers want to locate their
operations in modern, energy-efficient spaces
that offer wellbeing features and provide a
healthy, safe and pleasant working environment
for their employees.
To reduce carbon emissions from our existing
portfolio we focus on two operational carbon
reduction targets: a near-term target to reduce
the intensity of our corporate and customer
emissions by 80 per cent by 2034, and a
net-zero target by 2050.
These targets have abaseline of 2023 and are
regularly reviewed toensure alignment with best
practice methodologies and update estimations.
During2025 these targets were approved
bytheScience Based Target initiative (SBTi).
During 2025, we achieved a 17 per cent
reduction in our corporate customer emission
intensity largely due to increasing the use of
renewable and low-carbon energy across
ourportfolio, supported by our continuing
installation of rooftop solar panels. We continue
to work closely with our customers who are
ontheir own net-zero journeys, for example
ourdata centre customers who have made
commitments to use only renewable energy
by2030, to help them achieve their goals.
Our green leases improve visibility of our
customers’ carbon emissions. They allow
ustoreport more accurate data and to
identifyopportunities to help them operate
theirbuildings more efficiently, reducing
theircarbon footprint and operating costs.
These clauses, alongside an increase in the
number of automatic meter feeds that we
receive, havehelped increase the visibility
ofourportfolio energy use to 91 per cent
(2024:87 per cent).
At the end of 2025, 81 per cent of the portfolio
had an EPC rating of B or better (2024: 76 per cent).
Whilst the majority of our portfolio is modern
and already meets the highest sustainability
standards, we do have some older assets
inLondon, which we are holding pending
refurbishment or redevelopment. These assets
are mostly in prime, West London locations
where land and buildings are in short supply
andrents continue to grow. This provides us
with the opportunity to add significant value,
whilst also improving their environmental
performance over time.
A key part of our asset planning process is
therefore determining the phasing of these
projects and managing the space to ensure
wehave vacant possession to suit our future
plans. This can lead to periods where the
headline vacancy in these sub-markets is
elevated, as has been the case in our London
portfolio over the last three years.
Our asset management teams are also working
hard to expand the solar capacity of our
portfolio through retrofitting onto existing assets
(we install photovoltaic arrays on almost all new
developments) where feasible. During 2025
weadded 22MW to our installed solar capacity,
taking the total to 145MW, 18MW of which was
through retrofits onto existing buildings.
We closely monitor the returns of our
sustainability investments to ensure that they
support the longer-term financial performance
of our portfolio. Although it is still hard to prove
sustainability investments enhance returns,
wehave found our most modern space attracts
higher-quality customers, leases faster and
helpsus set new rental levels on our estates.
Disciplined approach to capital
allocation focused on driving
portfolio performance
As well as supporting our asset managers in
driving performance and rental growth, our
annual asset review process helps to ensure that
our capital is invested in the opportunities that
offer the most attractive risk-adjusted returns.
This is fundamental to our Disciplined approach
to capital allocation aimed at generating
long-term outperformance from our portfolio.
Our asset plans (including an analysis of future
rental growth and development capex
expenditure requirements) allow usto identify
those assets where we have benefited from the
majority of the expected outperformance or
where the risk profile may have changed. This
analysis, alongside our in-depth knowledge of
our markets and our customer base, shapes our
future disposal list. We typically aim to dispose
of 1-2 per cent of the portfolio per annum but we
vary this according to the market backdrop,
always seeking to match our planned disposals
with motivated orspecial purchasers.
After a very active 2024 in terms of disposals
(£896 million of assets and land), we had a lower
level of disposals in 2025. During the year we
disposed of £31 million of built assets,
representing £1 million of annualised rental
income, for prices above book value. These
disposals included an older estate in North
London and a standalone asset in Germany,
aswell as a hotel developed as part of the
EastPlus portfolio in London. We also disposed
of £26 million of land, mostly smaller residual
plots, where we felt the development ‘journey’
was not justified by likely future returns.
During 2025 we acquired £232 million of assets
(at share), all within our SELP joint venture.
Thefirst was an excellent portfolio of sixassets
in Germany and the Netherlands (formerly
owned by Tritax EuroBox plc) and the second
was alogistics park in Prague. The annualised
rental income of these assets is £11 million.
These assets offered portfolio benefits,
providing additional scale in markets over which
we have strong conviction, and which offer
attractive future returns.
What to expect in 2026
We have a unique portfolio, focused on Europe’s
strongest industrial and logistics markets.
Wewill continue to actively manage our
assetsto capture reversion, reduce vacancy
(particularly in our London portfolio) and,
whenthe returns make sense, improve the
sustainability credentials of older assets.
Thisactivity, together with our focus on
providing excellent customer service, will
helpus to retain customers and drive
furtherrental growth.
We will continue to be very selective when it
comes to asset acquisitions, only considering
opportunities in core markets that exceed our
cost of capital and bring wider portfolio benefits.
A higher interest rate environment naturally
means that we have raised the bar not only for
new investment, butalso for what we retain. We
therefore 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.
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SEGRO plc Annual Report & Accounts 2025
Overview Strategic Report Governance Financial Statements Further Information
Performance review continued
Development update
2025 at a glance
Potential rent from development
completions
£29m
2024: £37m
2025 highlights
• Completed our first warehouse at
SEGROLogistics Park Northampton,
a100,000 sq m warehouse for
YusenLogistics and a further data centre
on the Slough Trading Estate.
• 12 per cent reduction in the
embodiedcarbon intensity of
ourdevelopment pipeline.
• £26 million of new pre-lets signed,
ourstrongest year since 2022.
• Good progress letting our speculatively
developed urban warehouse schemes for
example in Germany, Spain and Poland.
Link to our strategic pillars
Development yield (completions)
8.2%
2024: 6.9%
Development capital expenditure
£387m
Potential rent from current pipeline
£53m
2024: £46m
Potential rent from future pipeline
£355m
2024: £376m
Embodied carbon intensity
280kgCO
2
e/sq m
2024: 318kgCO
2
e/sq m
Health and safety is central to all of our business
activities and particularly important in our
development activity. For more information
onourapproach see page 62
Our development pipeline
grew during 2025,
following a strong H2
ofpre-let signings.”
Development pipeline delivering
new space in markets with
strongreturns
Our Disciplined approach to capital allocation
means that development continues to be the
focus of our capital deployment as we look
toturn land held on our balance sheet into
income-producing assets which offer strong
future returns. Our focus on Operational
excellence ensures that we execute on our
pipeline efficiently and safely and build
tothehighest construction and
sustainabilitystandards.
During 2025 we invested £413 million into our
development pipeline (2024: £494 million)
through £387 million of development capital
expenditure (including £149 million on
infrastructure to facilitate future UK big box
logistics parks and power upgrades in Slough)
and £26 million of land acquisitions.
Development capital expenditure was lower
than the c.£500 million expected at the start
ofthe year, due to slower occupier decision
making which resulted inus pushing back
thestart date of some anticipated projects.
However, the strong level of pre-let signings
inthe second half of 2025 will support higher
levels of investment into development in2026.
Development completions delivered
£29 million of potential headline rent
Development completions during 2025 added
249,200 sq m of new space to the portfolio,
generating £27 million of headline rent, with a
further £2 million to come when the remainder
of the space is let. The development yield
(including land, construction and finance
costs)is expected to be 8.2 per cent when
fullyoccupied, above our normal 7 to 8 per cent
range as it included a data centre which tend
todeliver higher development yields.
We completed 178,900 sq m of big box
warehouses during the period, including our
firstpre-let at SEGRO Park Northampton and
warehouses for a third-party logistics operator
inMadrid, a post and parcel company in Italy
and a freight-forwarder in Hamburg.
We delivered 53,100 sq m of urban warehouses,
including a speculatively built scheme on the
Slough Trading Estate, which isgenerating
strong interest from occupiers, pre-lets
inDüsseldorf and Marseille and a further phase
of our successful scheme in Cologne.
Finally, we developed a further multi-storey
datacentre in Slough equivalent to 17,200 sq m
of floor space.
Reducing embodied carbon in our development
programme is critical to helping us improve
ourcarbon footprint. During 2025, the SBTi
approved our updated targets, aligned with their
new ‘Buildings Framework’. Our embodied
carbon pathway has both a near-term target
toreduce embodied carbon by 58 per cent by
2034 versus the 2023 baseline, and a target to
be net-zero by 2050. We reduced the embodied
carbon intensity of our developments by 12 per
cent to 280 kgCO
2
e/sq m during the year
(2024:318 kgCO
2
e/sq m).
All of our eligible development completions
during 2025 have been, or are expected to be,
accredited BREEAM ‘Excellent’ or
‘Outstanding’ (or local equivalent).
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SEGRO plc Annual Report & Accounts 2025
Overview Strategic Report Governance Financial Statements Further Information
Performance review continued
£62 million of potential headline rent
currently under development or in
advanced negotiations
At 31December 2025, we had development
projects approved, contracted or under
construction totalling 649,200 sq m,
representing £279 million of future capital
expenditure to complete and £53 million of
annualised gross rental income when fully let.
The development yield onthese projects, when
fully occupied, is anticipated to be 7.0 per cent.
47 per cent of this rent has already been secured,
lower than our normal 60 to 70 per cent run rate.
This is due to a reduced number of pre-lets in
thedevelopment pipeline, rather than an increase
in speculative development volumes which are
running at normal levels on an absolute basis.
Wecontinue to focus our speculative projects
onmarkets where supply-demand dynamics
aretightest, and mostly on urban warehouse
schemes which we derisk through
phaseddevelopment.
We signed £26 million of headline rent
frompre-let agreements and lettings of
speculativedevelopments prior to completion
(2024: £20 million). The largest was to a global
online retailer in Germany and we also signed
pre-lets for other big box warehouses in Italy
and France, as well as a new unit on our food
campus, SmartParc SEGRO Derby.
In the UK, we have 20,600 sq m of space
approved or under construction, which includes
the above mentioned big box scheme and two
small speculative developments in West London.
In Continental Europe, we have 628,600 sq m
ofspace approved or under construction. This
includes the above pre-let schemes for retailers
and third-party transport and logistics operators
as well as phases of our successful urban
warehouse parks in Germany, including inBerlin,
Cologne and Düsseldorf, as well as in Madrid
and Paris.
We have factored construction and financing
costs at current rates into the development
returns for our future development projects.
Build costs are currently stable across our
markets.
Our development yields are typically 150 to 200
basis points higher than yields on equivalent
income-producing assets, meaning that
thereisa sizeable valuation uplift when
projectscomplete and are fully-let.
Development therefore remains a profitable
wayof deployingcapital.
Within the future development pipeline we often
have a small number of pre-let projects close to
being approved, awaiting either final conditions
to be met or planning approval to be granted
before commencing construction, typically
within the next 6 to 12 months. As at
31December 2025, our near-term pipeline
totals67,900 sq m of space, equating to
approximately £66 million of future capital
expenditure and £9 million of potential
annualrent.
£502 million of future potential rent
from land bank and options
Our land bank identified for future development
(including the near-term projects detailed
above) totalled 577 hectares as at 31December
2025, valued at £1.6 billion, roughly 8 per cent
ofour total portfolio value.
We estimate this land bank can support
2.6 millionsq m of development over the
nextfiveto seven years. The estimated
capitalexpenditure associated with the future
pipelineis approximately £2.9 billion. It could
generate£355 million of gross rental income,
representing a development yield (including
land and notional finance costs) of between
7and 8 per cent and a yield on new capital
invested of over 10 per cent.
This estimate includes a number of the powered
shell data centre opportunities within our
pipeline but does not yet include any additional
potential rental income or capital expenditure
associated with developing fully fitted data
centres, which is likely to be the case for
selective sites.
The development programme only includes
sites currently held as land; there is further
opportunity from the redevelopment of existing
assets which are not included in these
development pipeline numbers.
Land acquisitions that are contracted
(butsubject to further conditions) and land
heldunder option agreements are also not
included in the figures above but represent
significant further development opportunities.
These include sites for big box warehouses in
the UK Midlands as well as in Italy and Poland.
They also include urban warehouse sites in
London’s prime Western and Eastern corridors.
Those options we expect to exercise over
thenext two to three years are for land
capableofsupporting over 1.3 million sq m of
spaceand generating approximately £147 million
of headline rent, for a blended development
yieldofbetween 7 and 8 per cent. The options are
held on the balance sheet at a value of £22 million
(including joint ventures at share).
All of the figures relating to our land bank
andoptions, other than the current value, are
indicative, based on our current expectations,
and are dependent on our ability to secure lease
or pre-let agreements, planning permissions,
construction contracts and on our outlook
foroccupier conditions in local markets.
Further details of our completed projects
anddevelopment pipeline are available
intheFY2025 Property Analysis Report,
atwww.SEGRO.com/investors.
What to expect in 2026
Development capital expenditure in 2026 is
expected to be £450 to £550 million, depending
on the level of newprojects started in the
coming months. Within this is c.£150 million
ofinfrastructure investment related to our
bigbox logistics parksand power upgrades
onthe Slough Trading Estate. We expect the
development yield to remain at 7 to 8 per cent.
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SEGRO plc Annual Report & Accounts 2025
Overview Strategic Report Governance Financial Statements Further Information
Performance review continued
SEGRO Logistics Park Northampton, UK
Data centre update
2025 at a glance
Data centres headline rent
£58m
2024: £55m
2025 highlights
• Completed a data centre for Iron
Mountain on the Slough Trading Estate.
• Secured additional 0.2GW of power for
our data centre pipeline and progressed
further applications.
• Formed a joint venture to develop our
first fully fitted data centre in Park Royal
West London.
• Added to our data centre capabilities with
seniorexperienced hires.
Link to our strategic pillars
Data centres as % of portfolio, by value
8%
2024: 8%
Current capacity
0.5GW
2024: 0.5GW
Total power bank
2.5GW+
2024: 2.3GW
Growing the data centre opportunity
in our portfolio and developing
ourplatform
We have been active in the data centre
marketfor over 20 years, and our existing
datacentreportfolio currently delivers
0.5GWofoperationalcapacity, representing
approximately £58 million of headline rent at
31December 2025 (7 per cent of our rent roll).
The vast majority of this installed capacity is
onSEGRO’s Slough Trading Estate which is the
largest hub of data centres in Europe. Our existing
data centres have been built as powered shells,
where we provide the real estate and a power
capacity allocation (asagreed with our energy
partners) and our customers fit out and operate
orsub-lease thespace themselves.
Our track record and capabilities in this space,
including sector knowledge, technical expertise
and customer relationships, have enabled us to
identify similar opportunities across our portfolio
where we have secured, or believe we can
secure, planning and power to create
considerable further data centre capacity.
As a result we have created a data centre pipeline
that provides a significant income and value
creation opportunity in this fast-growing sector.
Wehave a total opportunity set on sites we own
where we have, orbelieve we can secure power
equating to over2.5GW+ ofpotential capacity,
including the 0.5GW of operational capacity
mentioned above. Wehave progressed further
opportunities during2025 and expect to add to
this as our teams work hard to secure the
necessary grid connections and investigate
innovative ways tobring forward additional
power.
Our data centre development sites are close
tomajor European cities and aligned with our
existing urban footprint. This means we are
wellpositioned to benefit from Cloud-driven
demand, the primary driver of data centre
growth in Europe today, as the digitalisation
ofour economies and day-to-day lives require
increasingly vast amounts of data.
Cloud facilities need close proximity to end
users to provide ‘latency’ (speed of data
transfer), which means they locate themselves
in and around major cities and tend to create
clusters known as ‘Availability Zones’, with the
largest European ones located in the prime
‘FLAP-D’ markets. All of our future capacity is in,
or close to, established (FLAP-D markets) or
emerging Availability Zones such as Marseille
and Warsaw. These same locations will also
benefit from ‘inference’ related Artificial
Intelligence (AI) demand, i.e. the user interface,
as much of thatalso needs to be close to end
users and prioritises resilience for business
workloads, just like Cloud users.
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SEGRO plc Annual Report & Accounts 2025
Overview Strategic Report Governance Financial Statements Further Information
Performance review continued
SEGRO’s 2.5GW+ powered land bank in key European Availability Zones
1.1GW available to pre-let by end of 2028. 2.5GW of power capacity = 2,500k MVA.
For more information on the datacentre market
opportunity see our CEO statement onpage 12
Andrew Pilsworth,
Managing Director, Data Centres
andStrategic Partnerships
Recent data centre development
onSloughTrading Estate, UK
Growing the data centre opportunity
in our portfolio and developing
ourplatform continued
The European data centre market is expected to
grow significantly across both established and
emerging Availability Zones over the coming
years but supply is constrained by long (three to
five year) lead times on grid connections, limited
land availability and restrictive planning/
permitting regimes.
We believe we have one of the largest permitted
land and power positions in key Availability
Zones across Europe, with most of our land
already zoned for industrial and data centre use.
We are therefore extremely well positioned to
take advantage of the growth opportunity that
the data centre market offers. A large number of
our UK sites arein Slough, where the Simplified
Planning Zonestatus provides a significant
competitive advantage as planning is pre-
approved for both industrial and data centre
development for the next nine years.
To help us maximise and capitalise on this
opportunity we strengthened our data centre
platform with key senior hires during 2025,
including the addition of data centre
development and leasing expertise, as well as
dedicated energy expertise to help us expand
ourpower bank and accelerate grid connections.
SEGRO Premier Park DC JV
at a glance
56MW
IT load fully fitted data centre
c.£1bn
potential total JV investment
c.9%
yield on cost
c.£150m
SEGRO’s expected cash equity
contribution
A significant income and value
generation opportunity from fully
fitted data centres
We have been carefully considering the best
strategy for executing on the exceptional land
and power positions that we control, one that
will allow us to maximise the income and value
creation opportunity.
Whilst powered shells continue to offer strong
returns, and remain an attractive execution
option, we believe that developing fully fitted
data centres on the most scarce and sought-
after sites will significantly enhance the income
and value that we can generate from our
powered land bank.
Developing a fully fitted data centre increases
the scope to include the mechanical and
engineering (M&E) fit out such as backup
generators and cooling systems. This equipment
has a long lifespan and less risk of obsolescence
than the IT infrastructure (for example
processors or ‘chips’, racking and servers),
which the end customer provides.
It is still more technically complex than
delivering a powered shell, and requires more
capital investment, but that means it also
significantly increases the returns potential from
asingle site.
To help manage the higher complexity and
increased personnel requirements of developing
fully fitted data centres, we will only build them
in joint venture structures with experienced
partners, allowing us to leverage their
established development platforms.
Our focus is on providing the real estate
solutions for data centres. We intend to protect
SEGRO from any operational risk by either
securing a net lease, which means that the
customer will operate and maintain the facility
themselves, or the services would be contracted
to a third party.
We announced the first of these in March,
a50:50 joint venture with Pure Data Centres
Group (Pure DC), who has over adecade
ofexperience in the design, build andoperation
of world-class data centres forthe most
sophisticated hyperscale users. This joint
venture has been established to develop and
deliver a 56MW IT load fully fitted data centre
inPark Royal, West London, a key London
Availability Zone.
The gross investment for this project
isanticipated to be approximately £1 billion
(including the land and power), of which
SEGRO’s future cash equity contribution is
expected tobe less than £150 million. It is
projected todeliver a net yield on cost (based
on futurerents and costs) of c.9 per cent.
We expect the project to generate very
attractive returns on our capital invested and
deliver a significant amount of value over the
development time horizon. A planning
application for the scheme was submitted inlate
2025 and once secured we will be actively
marketing the pre-let with hyperscalers and
expect strong demand given the severe land
and power constraints in the West London data
centre market.
By developing fully fitted data centres in joint
ventures and sharing the capital commitment,
we are also financially derisking the development
of these capital intensive assets. The use of
project finance within each joint venture means
SEGRO’s cash equity commitment will be modest.
We intend to carefully sequence the execution of
our data centre pipeline, recycling capital from
stabilised operational assets through refinancing
ofproject debt and exploring multiple exit
strategies to release funds for future opportunities.
We believe the evolution of our strategy to include
fully fitted data centres significantly increases the
potential income and value creation opportunity
within our 2.5GW+ data centre pipeline. For each
site, we will pursue the model which offers the
most attractive risk-adjusted returns, having regard
to factors such as the site characteristics, specific
market supply-demand dynamics, risk and return
expectations and the balance of our total pipeline
and funding requirements.
What to expect in 2026
We will continue to progress our data centre
pipeline during 2026 – preparing sites for
development and adding to it through securing
additional power capacity. We will be actively
marketing the pre-let opportunities in the 1.1GW
of power that we have available tolease by the
end of 2028 and aim to sign 1 to 2 new data
centre leases per year going forwards.
SEGRO Premier Park,
ParkRoyal is one of
London’s most sought-after
data centre locations and
will help supportthe UK’s
ambitions fordigitalisation.”
Dame Dawn Childs, CEO of Pure DC
36
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SEGRO plc Annual Report & Accounts 2025
Overview Strategic Report Governance Financial Statements Further Information
Performance review continued
Active asset management delivering growth
UK
Our asset management
teams delivered an
exceptional performance
from our existing portfolio
in 2025.”
James Craddock,
Managing Director, UK
Well-located and specified
space continued toattract
demand and set newrental
levels, despite there being less
expansionary activity as a
result ofbudget and economic
uncertainty.
According todata by Savills, net absorption
turned positivefor the first time in a few years,
astake-up was driven by leasing of existing and
speculatively developed space. This, combined
with low levels of space currently under
construction, should see market vacancy rates
improving over the coming 12 to 24 months.
Wesaw a pick up in enquiry levels and viewings
into the final months of the year. Rental growth
continued, albeit was market specific, with
WestLondon showing real strength and
resilience driven by the diverse pool
ofcustomerdemand. We continued to see
exceptional success from our teams in
capturing large reversionary uplifts through
rentreviews and renewals.
2025 key highlights
• Strength of the Park Royal and Heathrow
market, which represents 40 per cent of
ourUK portfolio and delivered 4.7 per cent
ERVgrowth.
• Significant progress capturing reversion,
delivering a record 46 per cent uplift on rent
reviews and renewals.
• Great headway in making our market-leading
big box logistics sites ‘construction-ready’.
• Enhanced our capabilities with the creation
ofa new energy team, and added 190MVA
toour UK data centrepipeline.
e
SEGRO Park Greenford
e
Risks and opportunities
• Strong pick up in enquiry levels for both
existing space and pre-lets in the final months
of 2025 and momentum has continued into
this year.
• Confidence in our ability to increase our
urbanoccupancy levels given these active
conversations and some early lettings in 2026.
• Significant pre-let opportunity as occupier
markets become more active with three prime
bigbox schemes ready to go.
• Expect to be able to add SEGRO Park Radlett
to this offering by the end of 2026 which
isaunique proposition offering large-scale
logistics just outside the M25.
SEGRO Logistics Park Radlett (CGI)
Portfolio value
£11.8bn +0.8%
ERV Growth
+3.1%
Headline rent (at share)
£476m
Occupancy
93%
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SEGRO plc Annual Report & Accounts 2025
Overview Strategic Report Governance Financial Statements Further Information
Regional updates
Development-led growth driven by structural trends
Continental
Europe
We had our strongest
sixmonths on record
forpre-lets in H2 as
e-commerce and
retailersreturned
toexpansion mode.”
Marco Simonetti
Managing Director, Continental Europe
Pre-let markets made a
remarkable recovery after an
uncertain start to theyear,with
demand drivenbysupply chain
reorganisation and some
expansionary activity.
Our best performing markets during 2025
wereGermany and Italy, where we saw strong
demand for both pre-let and speculatively
developed space. There was also a lot of activity
in Poland and Spain. The political situation in
France led to slightly lower take-up in our urban
markets. Rental growth was more subdued but
vacancy rates appear to have peaked which
should support stronger growth in the future as
more broad-based demand returns.
2025 key highlights
• Significant pick up in pre-let activity
leadingto£24 million of pre-lets signed in the
second half of 2025 alone.
• Strong lettings performance on our
speculative development programme,
particularly in Germany, Spain and Poland.
• Finished the year with very strong,
98percent, occupancy (including
somemarkets at100percent).
• Secured the building permit for our first data
centre in Continental Europe.
Risks and opportunities
• Completion of further phases of our
speculative programme in major European
cities, including SEGRO Park Les Gobelins
which is a unique scheme in an exceptional
central-Paris location.
• Progressing our data centre pipeline in
Continental Europe and looking to sign our
first pre-let.
• Index-linked uplifts in 2026 are likely to be
lower due to falling inflation, particularly
inFrance.
Portfolio value
£7.2bn +1.5%
ERV growth
+1.0%
Headline rent (at share)
£347m
Occupancy
98%
DPD, SEGRO Logistics ParkStryków,Poland
SEGRO European Logistics
Partnership (SELP)
SEGRO European Logistics Partnership
(SELP) is our Continental European big box
joint venture with PSP Investments. SELP’s
assets are managed by SEGRO alongside
itsown portfolio and in return SELP pays
SEGRO annual fees for asset management,
development, advisory and administrative
services. At 31December 2025 SELP’s
AUMwas €7 billion.
For more information on the joint venture please
visit: www.selp.lu
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SEGRO plc Annual Report & Accounts 2025
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Regional updates continued
Delivering financial
strength
During 2025 we
delivered growth in
earnings, dividends and
asset values and the
balance sheet is strong
going into 2026.”
Susanne Schroeter,
Chief Financial Officer
Financial position and funding
Net borrowings (£m)
4,840 5,919
4,244 5,000
Available cash and undrawn committed facilities (£m)
1
1,647 1,894
1,705 2,125
Gearing (%)
39 N/A
35 N/A
Loan to value ratio (%)
31 31
28 28
Net debt : EBITDA ratio (times)
2
8.4 N/A
8.6 N/A
Weighted average cost of debt (%)
3
2.5 2.6
2.5 2.5
Interest cover (times)
4
4.2 4.2
3.7 3.9
Average duration of debt (years)
6.7 6.0
7.8 6.9
31 December 2025
31 December 2024
SEGRO Group
SEGRO Group
and JVs at
share
SEGRO Group
SEGRO Group
and JVs at share
1 Excludes tenant deposits held within cash and cash equivalents.
2 Calculation detailed in Table 2 in the Supplementary Notes.
3 Based on gross debt, excluding commitment fees and non-cash interest.
4 Net rental income/Adjusted net finance costs (before capitalisation).
Financial highlights
Adjusted profit beforetax
£509m
2024: £470m
IFRS profit before tax
£560m
2024: £636m
Available cash and undrawn
committed facilities
£1.9bn
2024: £2.1bn
Loan to value ratio
31%
2024: 28%
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SEGRO plc Annual Report & Accounts 2025
Overview Strategic Report Governance Financial Statements Further Information
Financial review
Progress against
ourstrategy
What we said we would do
We intend to keep our LTV at around
30percent.
What we achieved in 2025
The impact of increased borrowings due to
development spend offset by higher asset
values has meant that LTV has increased
from 28 per cent to 31 per cent at
31December 2025 while net debt : EBITDA
ratio decreased from 8.6 times to 8.4 times.
What to expect in 2026
We aim to maintain our mid-cycle LTV at
around 30 per cent, although the evolution
of the property cycle will inevitably mean
that there are periods of time when our LTV
is higher or lower than this. We believe this
approach ensures significant headroom
compared against our tightest gearing
covenants should property values decline
further, as well as providing the flexibility to
take advantage of investment opportunities
which may arise. We have cash and
available facilities of £1.9 billion (including
our share of joint ventures) on which we can
draw to fund our investment plans.
Financial position at 31December 2025
At 31December 2025, the gross borrowings of
SEGRO Group and its share of gross borrowings
in joint ventures totalled £6,062million
(31December 2024: £5,536million), of which
£3million (31December 2024: £3million) are
secured by way of legal charges over specific
assets. The remainder of gross borrowings
areunsecured. Cash and cash equivalent
balances were £143 million (31December 2024:
£536million). Net borrowings were therefore
£5,919 million (31 December 2024:
£5,000million). The average debt maturity
was6.0 years (31December 2024:6.9 years)
andthe average cost of debt asat
31December2025 (excluding non-cash
interestand commitment fees) was 2.6 per cent
(31 December 2024: 2.5 per cent).
Funds available to the SEGRO Group (including
its share of joint ventures) at 31December 2025
totalled £1,894 million (31December 2024:
£2,125 million), comprising £68 million in cash
and short-term investments and £1,826 million
of undrawn credit facilities. Funds available
increases to £1,978 million (31 December 2024:
£2,337 million) including tenant deposits and
uncommitted credit facilities, which total
£84million. Cash and cash equivalent balances,
together with the Group’s interest rate and
foreign exchange derivatives portfolio, are
spread amongst a strong group of banks, all
ofwhich have a credit rating of ‘A-’ or better.
Financing
During 2025, SEGRO completed the following
financing transactions.
• Short-term debt: SEGRO signed a new
€1.6billion revolving credit facility with its
syndicate of eight relationship banks.
Thesenior unsecured facility has an initial
five-year term and may be further extended
toa maximum of seven years, subject to
lender approval. The new facility replaced
theprevious €1.0 billion and €0.6 billion
syndicated revolving credit facilities which
were due to mature in 2027. SELP signed a
new €0.6 billion revolving credit facility with
its syndicate of four relationship banks.
Thefacility has a three-year term with the
option to extend by a further two years,
subject to lender approval. The new facility
replaced the previous €0.5 billion and
€0.1billion syndicated revolving credit
facilities which were due to mature in 2027.
• Medium-term debt: SEGRO signed a new
five-year €360 million term loan facility with a
group of banks. The facility is undrawn at year
end and has an availability period for drawing
to March 2026 when it will be drawn to partly
refinance the upcoming €650 million bond
maturity. SELP signed a new three-year
€210million term loan facility with relationship
banks. The facility is undrawn at year end
andhas an availability period for drawing
toJune 2026.
• Long-term debt: SELP issued a €500 million
3.75 per cent bond due in 2032 which
hasrefinanced the SELP €500 million
1.50percent bond which was repaid
inNovember 2025.
Monitoring and mitigating
financialrisk
As explained in the risk section of this
AnnualReport, the Group monitors a number of
financial metrics to assess the level of financial
risk being taken and to mitigate that risk.
Treasury policies and governance
The Group Treasury function operates within
aformal policy covering all aspects of treasury
activity, including funding, counterparty
exposure and management of interest rate,
currency and liquidity risks. The Group Treasury
reports on compliance with these policies
onaquarterly basis and policies are reviewed
regularly by the Board.
Gearing and financial covenants
We consider the key leverage metric for
SEGROto be a proportionally consolidated
(look-through) loan to value ratio (LTV) which
incorporates assets and net debt on SEGRO’s
balance sheet and SEGRO’s share of assets
andnet debt on the balance sheets of its joint
ventures. The LTV at 31December 2025 on
thisbasis was 31 per cent (31December 2024:
28per cent), the increase primarily drivenby a
higher debt, offset by higher asset values.
SEGRO’s borrowings contain gearing covenants
based on Group net debt and net asset value,
excluding debt in joint ventures. The gearing
ratio of the Group at 31December 2025, as
defined within the principal debt funding
arrangements of the Group, was 39 per cent
(31December 2024: 35 per cent).
This is significantly lower than the Group’s
tightest financial gearing covenant within
thesedebt facilities of 160 per cent. Property
valuations would need to fall by around
50percent from their 31December 2025
valuesto reach the gearing covenant threshold
of 160per cent. A 50 per cent fall in property
values would equate to an LTV ratio of
approximately 62percent.
The Group’s other key financial covenant within
its principal debt funding arrangements is
interest cover, requiring that net interest before
capitalisation be covered at least 1.25 times by
net property rental income. The ratio for 2025
was 4.2 times, comfortably ahead of the
covenant minimum. Net property rental income
would need to fall by around 70 per cent from
2025 levels, or the average interest rate would
need to rise to 9.5 per cent from the full-year
average interest rate of 2.8 per cent to breach
the interest cover covenant threshold. On a
proportionally consolidated basis, including joint
ventures, the interest cover ratio was 4.2 times.
SEGRO also monitors its leverage on a net debt :
EBITDA basis which is an important metric for
rating agencies and our investors. SEGRO’s net
debt : EBITDA ratio at the end of 2025 was
8.4times (2024: 8.6 times), reflecting the net
impact of an £83 million increase in EBITDA
anda £596 million increase in net debt. SEGRO
has a long-term issuer default rating of ‘BBB+’
and a senior unsecured rating of ‘A-’ from Fitch
Ratings as at 31December 2025.
We mitigate the risk of over-gearing the
Company and breaching debt covenants by
carefully monitoring the impact of investment
decisions on our LTV and by stress testing
ourbalance sheet to potential changes in
property values.
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SEGRO plc Annual Report & Accounts 2025
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Financial review continued
Gearing and financial covenants
continued
Our intention for the foreseeable future is to
maintain our LTV at around 30 per cent, although
the evolution of the property cycle will inevitably
mean that there are periods of time when our LTV
is higher or lower than this. However, this level of
LTV through the cycle provides the flexibility to
take advantage of investment opportunities
arising and ensures significant headroom
compared against our tightest gearing covenants
should property values decline.
The weighted average maturity of the gross
borrowings of the Group (including joint
ventures at share) was 6.0 years, with the
closest maturity being SEGRO’s €650 million
euro bond in March 2026, followed by SELP’s
€500 million euro bond in December 2026.
These upcoming debt maturities have been
partially refinanced by the €360 million term
loan facility and €210 million term loan facility
forSEGRO and SELP, respectively, with the
remainder being financed by undrawn revolving
credit facilities. This long average debt maturity
comprises a well spread debt funding maturity
profile which reduces future refinancing risk.
Interest rate risk
The Group’s interest rate risk policy is designed
to ensure that we limit our exposure to volatility
in interest rates. The policy states that between
50 and 100 per cent of net borrowings
(including the Group’s share of borrowings
injoint ventures) should be at fixed or capped
rates, including the impact of derivative
financialinstruments.
At 31December 2025, including the impact
ofderivative instruments, 97 per cent (2024:
116per cent) of the net borrowings of the Group
(including the Group’s share of borrowings
within joint ventures) were either at fixed rates or
are protected from rising interest rates with an
active interest rate cap. The interest rate cap
portfolio has a spread of expiry dates over the
next 6 years to 2031 and an average expiry of
3.4 years.
As a result of the fixed rate cover in place, if
short-term interest rates had been 100 basis
points higher throughout the year to
31December 2025, the Adjusted net finance cost
of the Group would have been approximately
£1million lower (31 December 2024: £5 million
lower) representing under 1per cent
(31December 2024: 1 per cent) ofAdjusted profit
after tax. The sensitivity is inverted due to both
interest rate cap hedging floating rate debt
interest costs, and interest ratefloors hedging
floating rate cash interest income during the year
to 31 December 2025. The interest rate floor
contracts expired inDecember 2025.
The Group elects not to hedge account its
interest rate derivatives portfolio. Therefore,
movements in its fair value are taken to the
income statement but, in accordance with EPRA
Best Practices Recommendations Guidelines,
these gains and losses are eliminated from
Adjusted profit after tax.
Foreign currency translation risk
The Group has minimal transactional foreign
currency exposure but does have a potentially
significant currency translation exposure arising
on the conversion of its foreign currency
denominated assets (mainly euro) and euro
denominated earnings into sterling in the Group
consolidated accounts.
The Group seeks to limit its exposure to volatility
in foreign exchange rates by hedging its foreign
currency gross assets using either borrowings or
derivative instruments. The Group targets a
hedging range of between the last reported
LTVratio (31 per cent at 31December 2025)
and100per cent. At 31December 2025,
theGroup was 71 per cent hedged by gross
foreign currency denominated liabilities
(31December 2024: 75 per cent).
Including the impact of forward foreign
exchange and currency swap contracts used to
hedge foreign currency denominated net assets,
if the value of the other currencies in which the
Group operates at 31December 2025 weakened
by 10 per cent against sterling (to €1.27, in the
case of euros), net assets would have decreased
by approximately £160 million and there
wouldhave been a reduction in gearing of
approximately 2.4 per cent and in the LTV
of1.4per cent.
The average exchange rate used to translate
euro denominated earnings generated during
2025 into sterling within the Consolidated
Income Statement of the Group was €1.17:£1.
Based on the hedging position at 31December
2025, and assuming that this position had
applied throughout 2025, if the euro had been
10 per cent weaker than the average exchange
rate (€1.29:£1), Adjusted profit after tax for the
year would have been approximately £11 million
(2.2 per cent) lower than reported. If it had been
10 per cent stronger, Adjusted profit after tax for
the year would have been approximately
£14million (2.8 per cent) higher than reported.
Going concern
As noted in the Financial position and funding
section above, the Group has significant available
liquidity to meet its current liabilities asthey fall
due including the upcoming €650million bond
maturity, operational requirements and capital
commitments. TheGroup also has a long-dated
debt maturity profile and substantial headroom
against financial covenants.
• In April 2025 SEGRO signed a new €1.6 billion
revolving credit facility with its syndicate
ofeight relationship banks. The senior
unsecured facility has an initial five-year term
and may be further extended to a maximum
of seven years, subject to lender approval.
• In September 2025, SEGRO signed a new
€360 million term loan facility with
relationship and non-relationship banks.
Thefacility is undrawn at year end and has an
availability for drawing until March 2026, and
a final maturity date in September 2030.
• Cash and available committed facilities,
excluding tenant deposits, at 31December
2025 were £1.6 billion.
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SEGRO plc Annual Report & Accounts 2025
Overview Strategic Report Governance Financial Statements Further Information
Financial review continued
Hedging position (% of net borrowings)
31 December
2025
31 December
2024
SEGRO Group
Fixed rate borrowings
83
92
Floating rate borrowings subject to an active cap
16
23
Floating rate borrowings subject to an inactive cap
4
3
Floating rate borrowings not hedged
(1)
(9)
Total gross debt
102
109
Cash and cash equivalents
(2)
(9)
Total
100
100
SEGRO Group and JVs at share
Fixed rate borrowings
84
97
Floating rate borrowings subject to an active cap
13
19
Floating rate borrowings subject to an inactive cap
4
3
Floating rate borrowings not hedged
1
(8)
Total gross debt
102
111
Cash and cash equivalents
(2)
(11)
Total
100
100
Going concern continued
• The Group continuously monitors its
liquidityposition compared to committed and
expected capital and operating expenses on
arolling forward 18-month basis. The quantum
of committed capital expenditure at any
pointin time is typically low due to the short
timeframe to construct warehouse buildings.
• The Group also regularly stress tests its
financial covenants. As noted above, at
31December 2025, property values would
need to fall by around 50 per cent before
breaching the gearing covenant. In terms of
interest cover, net rental income would need
to fall by 70 per cent or the average interest
rate would need to reach in excess of
9percent before breaching the interest
cover covenant. All would be significantly
inexcess of the Group’s experience during
thefinancial crisis of 2008.
Having considered the principal risks facing the
Group, including liquidity and solvency risks,
stress testing, scenario analysis and material
uncertainties, the Directors have a reasonable
expectation that the Company and the
Grouphave adequate resources to continue
inoperational existence for the foreseeable
future (a period of at least 12 months from the
date of approval of the Financial Statements).
Accordingly, they continue to adopt the
goingconcern basis in preparing these
FinancialStatements.
Income Statement review
Presentation of financial information
The Group Financial Statements are prepared
under IFRS where the Group’s interests in joint
ventures are shown as a single line item on
theincome statement and balance sheet and
subsidiaries are consolidated at 100per cent.
The Adjusted profit measure reflects the
underlying financial performance of the
Group’sproperty rental business, which is our
core operating activity. It is based on EPRA
earnings as set out in the Best Practices
Recommendations Guidelines of the European
Public Real Estate Association (EPRA) which
arewidely used alternate metrics to their IFRS
equivalents within the European real estate
sector (further details can be found at
www.epra.com). In calculating Adjusted profit,
the Directors may also exclude additional items
considered to be non-recurring, unusual, or
significant by virtue of size and nature.
See Note 2 for more detail.
Adjusted profit (Note 2)
Gross rental income
637
592
Property operating expenses
(94)
(92)
Net rental income
543
500
Joint venture management
fee income
25
26
Management and
development fee income
3
6
Net service charge and other
income
1
(1)
Administrative expenses
(73)
(76)
Share of joint ventures'
Adjusted profit
1
78
83
Adjusted operating profit
before interest and tax
577
538
Net finance costs
(68)
(68)
Adjusted profit before tax
509
470
Tax on Adjusted profit
(14)
(12)
Adjusted profit after tax
495
458
2025
£m
2024
£m
1 Comprises net property rental income less administrative
expenses, net finance costs and taxation.
Net rental income
£43m higher
Net rental income increased by £43 million to
£543 million (or by £47 million to £675 million
including joint ventures at share before joint
venture fees), reflecting the positive net impact
of like-for-like rental growth, development
completions and investment activity during the
year, offset by the impact of disposals.
On a like-for-like basis
2
, before other items
(primarily corporate centre and other costs not
specifically allocated to the two property
businesses), net rental income increased by
£33million, or 6.0 per cent, compared to 2024.
This is due to strong rental performance across
our portfolio. In the UK, there was a 6.2 per cent
increase, primarily through capturing the
reversionary potential in the portfolio through
lease reviews and renewals. In Continental
Europe there was a similar increase
(5.8percent), primarily through indexation
andhigher average occupancy.
2 The like-for-like net rental growth metric is based on
properties held throughout both 2025 and 2024 on a
proportionally consolidated basis. This provides details
ofunderlying net rental income growth excluding the
distortiveimpact of acquisitions, disposals and
developmentcompletions.
Administration expenses
£3m lower
Administrative expenses have decreased by
£3million to £73 million in the current year.
Thisprimarily related to careful cost control
andstable indirect property and administration
headcount (168 compared to 167 in 2024),
offsetby an increase in depreciation of
£5million reflecting investment in technology
through IT costs and depreciation from project
spend in previous years. This is a contributory
factor for the total cost ratio (after share-based
payments), which includes property operating
expenses which decreased from 20.7 per cent
to 19.8 per cent in the current year. Excluding
the impact of vacant costs, the total cost
ratiohas decreased from 19.1 per cent to
17.5per cent. Further detail is given in Table 9
inthe notes to the Financial Statements.
Income from joint ventures
£6m lower
Income from joint ventures fell by £6 million
intotal compared to the prior year, being a
decrease in SEGRO’s share of joint ventures’
Adjusted profit after tax by £5 million and a
decrease in joint venture management fee
income by £1 million. The Adjusted profit fell
from £83 million in 2024 to £78 million in 2025.
Whilst net rental income has increased by
£4million, this has been offset by increases
innet finance costs (£4 million) from higher net
borrowings and increases in tax (£4 million)
asprofits were more weighted to higher
taxationjurisdictions.
Joint venture management fee income decreased
by £1 million to £25 million in 2025 due to a slight
reduction in development activity.
Net finance costs
£0m flat
Net finance costs were flat compared to 2024
at£68 million. The gross interest costs in the
year (£131 million) are £4million lower than the
prior year which is completely offset by the
£4million reduction in interest capitalised on
development properties in 2025 (£63 million).
Gross interest costs reduced as a result of lower
interest rates, particularly EURIBOR, compared
to the prior year.
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SEGRO plc Annual Report & Accounts 2025
Overview Strategic Report Governance Financial Statements Further Information
Financial review continued
Income Statement review
continued
Taxation
2.8%
(effectiverate)
The tax charge on Adjusted profit of £14 million
(2024: £12 million) reflects an effective tax rate
of 2.8 per cent (2024: 2.6 per cent).
The Group’s effective tax rate reflects the fact
that around three-quarters of its wholly-owned
assets are located in the UK and qualify for REIT
status. This status means that income from
rental profits and gains on disposals of assets
inthe UK are exempt from corporation tax,
provided SEGRO meets a number of conditions
including, but not limited to, distributing 90 per
cent of UK taxable profits.
Adjusted profit (EPS)
£37m higher
(36.6p)
Adjusted profit after tax increased by £37 million
to £495 million (2024: £458 million) as a result
ofthe above movements, primarily growth
inrental income.
Adjusted profit is detailed further in Note 2
tothe Financial Statements.
Adjusted earnings per share are 36.6 pence
compared to 34.5 pence in 2024 due to the
increase in Adjusted profit offset by the
23.8million increase in the average number
ofshares in issue compared to the prior year.
IFRS profit
IFRS profit before tax in 2025 was £560 million
(2024: £636 million), equating to basic post-tax
IFRS profit per share of 40.7 pence compared
with 44.7 pence per share for 2024.
Areconciliation between Adjusted profit
beforetax and IFRS profit before tax is provided
in Note2 to the Financial Statements.
The principal driver of the reduction in IFRS
profit is realised and unrealised property gains
which is the main reason for the decrease in
profit per share in 2025 compared to 2024.
Totalgain on properties is £93 million
(2024:£167 million), the reduction from 2024
isdue to lower profit on sale of investment
properties as detailed further in Note 8.
The largest component is valuation gains on
investment properties of £91 million including
joint ventures at share (2024: £90 million), which
is driven by a 2.3 per cent increase in ERV and
gains from development completions. These are
discussed in more detail in the Performance
review on page 28.
In addition, there has been a fair value loss on
derivatives of £35 million (2024: £3 million gain)
primarily from euro denominated interest
rateswaps.
Balance sheet
At 31December 2025, IFRS net assets
were£12,273 million (31December 2024:
£12,049million), reflecting 906 pence per
share(31 December 2024: 889 pence) on
adiluted basis.
Adjusted NAV per share at 31December 2025
was 925 pence, an increase of 18 pence
compared to the prior year (31December 2024:
907 pence). This movement primarily reflects
profits and property gains, offset by dividends,
and exchange rate movements. The chart
highlights the main factors behind the
movement in Adjusted NAV. A reconciliation
between IFRS and Adjusted NAV is available
inNote 12 to the Financial Statements.
Cash flow and net debt reconciliation
Cash flows from operating activities of
£492million are £33 million higher than the
prioryear primarily from increased rental
activity. Finance cost outflows of £134 million
inservicing the debt facilities, represent a small
reduction on the prior year (£141 million)
broadlyreflective of the lower gross interest
charge (before capitalised interest) in the period.
Interest rate risk management is detailed
furtherin the Financial review on page 41.
Inaddition there were tax payments of
£25million, primarily in Italy.
The Group made net investments of
£399million in investment and development
properties during the year on a wholly-owned
cash flow basis (2024: £377 million). This is
principally driven by expenditure of £444 million
(2024: £1,000 million) to purchase and develop
investment properties to deliver further growth
in line with our strategy. This was offset by
disposals of investment properties of £45 million
(2024: £623 million) as the business continued
to recycle assets when the opportunity arose.
During the year £405 million (2024: £277 million)
in dividends were paid as the prior year
dividends included a scrip dividend uptake
discussed further in Note 11.
The net debt movement also includes a
£166million increase in respect of the
retranslation of the euro denominated debt
asthe euro has weakened over the course
oftheyear from €1.21:£1 to €1.15:£1.
Overall, net debt has increased in the year
by£596 million to £4,840 million.
43
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SEGRO plc Annual Report & Accounts 2025
Overview Strategic Report Governance Financial Statements Further Information
Financial review continued
Adjusted net asset value (pence per share)
907p
37p
7p
(30)p
5p
(1)p
925p
EPRA NTA
attributable
to ordinary
shareholders at
31 December
2024
Adjusted profit
after tax
Realised and
unrealised
property gain
Dividend
(2024 final
and 2025 interim)
Exchange
rate movement
(net of hedging)
Other
EPRA NTA
attributable
to ordinary
shareholders at
31 December
2025
Cash flow bridge (£m)
Capital expenditure
Table 10 in the Supplementary Notes sets out
analysis of the capital expenditure during the
year. This includes acquisition and development
spend, on an accruals basis, in respect of the
Group’s wholly-owned investment and trading
property portfolios, as well as the equivalent
amounts for joint ventures at share.
Total spend for the year was £835 million,
areduction compared to the prior year
(2024:£1,104 million), with reduced spend on
acquisitions which were primarily undertaken
bythe SELP joint venture in the current year.
Thedevelopment spend of £387 million (2024:
£471 million) was split equally between the UK
(predominantly in the National Markets region)
and CE (predominantly in Germany). More detail
on this spend can be found in the Development
and Investment Updates on pages 30 to 34.
Development capital expenditure also
includesinfrastructure spend of £149 million
(2024: £138million). Interest of £64 million
(2024: £69 million) has been capitalised
intheyear.
Spend on existing completed properties totalled
£61 million (2024: £54 million). The balance
mainly comprises refurbishment and fit-out
costs, which equates to less than 8 per cent
oftotal spend.
Dividend increase reflects the strong
operational results and confidence
for the future
Under the UK REIT rules, we are required
topayout 90 per cent of UK-sourced,
tax-exempt rental profits as a ‘Property Income
Distribution’ (PID). Since we also receive
incomefrom our properties in Continental
Europe, ourtotal dividend should normally
exceed this minimum level and we target a
payout ratio of85 to 95 per cent of Adjusted
profit after tax. We aim to deliver a progressive
and sustainable dividend which grows broadly
inline with our Adjusted earnings per share.
The Board has concluded that it is appropriate
to recommend an increase in the 2025 final
dividend per share by 1.2 pence to 21.4 pence
(2024: 20.2 pence). We will pay the 2025 final
dividend as a PID and expect to pay the 2026
interim dividend as an ordinary dividend. The
Board’s recommendation is subject to approval
by shareholders at the 2026 Annual General
Meeting to be held on 23 April 2026, in which
event the 2025 final dividend will be paid on
8May 2026 to shareholders on the register
atthe close of business on 27 March 2026.
In considering the final dividend, the Board took
into account:
• the policy of targeting a payout ratio of
between 85 and 95 per cent of Adjusted
profitafter tax;
• the desire to ensure that the dividend is
sustainable and progressive throughout
thecycle; and
• the results for 2025 and the outlook
forearnings.
The total dividend for the year will therefore
be31.1 pence, a rise of 6.1 per cent versus 2024
(29.3 pence) and represents a distribution of
85per cent of Adjusted profit after tax.
The Board has decided not to offer a scrip
dividend option for the 2025 final dividend.
44
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SEGRO plc Annual Report & Accounts 2025
Overview Strategic Report Governance Financial Statements Further Information
Financial review continued
(4,244) 492 (134) 63 (25) (405) (444) 45 (8) 34 (15) (29) 3 (7) (166) (4,840)
Opening
net debt
Cash flow
from
operating
activities
Finance
costs
(net)
Dividends
received
(net)
Tax paid Dividends
paid
Purchase
and
development
of
investment
properties
Sale of
investment
properties
Acquisitions
of interest
in property
and other
investments
Net
divestment
in joint
ventures
Net
settlement
of foreign
exchange
derivatives
Purchase of
plant and
equipment
and
intangibles
Other cash
movements
Non cash
movements
Exchange
rate
movements
Closing
net debt
Confirmation of viability
The Directors have considered the Group’s
prospects, including reference to the Group’s
principal risks, to form the basis of our
assessment of short-term and longer-term
viability. The process for conducting this
assessment is summarised in the Audit
Committee’s Report on page 98.
The Directors confirm that they have a
reasonable expectation that the Group will be
able to continue in operation and has adequate
resources to meet its liabilities as they fall due
over the next five years.
The assessment of viability is split into
short-term and longer-term time horizons.
Short-term assessment
The short-term assessment included consideration
of our going concern assessment and a review
ofkey controls around liquidity management.
Management regularly reviews the Group’s
liquidity position and operating results. In
addition, key treasury metrics including financial
covenants are reviewed by the Executive
Committee on a quarterly basis.
Longer-term assessment
The period assessed for the longer term is the
same five-year time horizon as covered by
theGroup’s annual rolling five-year strategic
financial plan. This is considered to be the
optimum balance between our need to plan for
the long term, and the progressively unreliable
nature of forecasting in later years, particularly
given the historically cyclical nature of the
property industry.
The strategic financial plan comprises a five-year
Medium-Term Plan (MTP) and an Asset Plan,
within the context of macroeconomic and
property market outlooks provided by external
advisers and SEGRO expertise.
The central corporate team and each country
orregional property team provide a forecast for
revenue and costs for the business for the MTP and
for total returns from each asset for the Asset Plan.
They also provide forecasts on potential
development activity from the existing land bank,
refurbishment of existing assets (including with
regard to current and expected environmental
legislation — see pages 48 to 55 for more detail
onclimate-related financial disclosures) and their
expectations of acquisitions and disposals.
This process generates a five-year forecast for
capital expenditure and associated funding
requirements, net income, net asset values
andcash flows. The Directors confirm that they
have no reason to expect a step-change in
theGroup’s viability immediately following
thefive-year period assessed.
In addition to the robust ongoing assessment and
management of the risks facing the Group, as
already set out in this section, the Group has stress
tested the MTP. The stress tests consider the risks
that could either individually, or in aggregate,
threaten the viability of the Group, represented by
the breach of key financial ratios and covenants.
The risks are based on an individual event or
combination of events occurring, using historic
data (for example the acute property valuation
decline in 2007–2009) and forward-looking
probability analysis where available. The process
for conducting the Group’s assessment is the
responsibility of the Chief Financial Officer and
isoverseen by the Audit Committee.
The main stress tests carried out in 2025,
alongwith their potential impacts, were:
• A scenario consisting of:
– zero market rental (ERV) growth throughout
the period;
– a significant reduction in development levels;
– re-letting of units following lease expiry
taking an extra three months; and
– fewer asset disposals than in the base plan.
The main impacts are lower asset values, and
Adjusted NAV throughout the period, with
reduced earnings growth, and high leverage.
• A no disposals scenario: NAV and earnings
would improve and leverage metrics would
deteriorate; however, they would remain well
withincovenant thresholds.
• Impact of rising interest rates, manifested in
a reverse stress test to assess what level of
interest rates would cause a covenant breach:
a rise of at least eight percentage points in the
Group’s average interest rate across the period,
assuming current levels of fixed rate interest
and protection from our interest rate caps.
Reverse stress testing was also undertaken over
the period under review. None of the financial
covenants were breached during the five-year
period, with gearing remaining comfortably
below 160 per cent and interest cover well
above 1.25 times.
Property valuations would need to fall by around
50 per cent from their 31 December 2025 values
to reach the gearing covenant threshold of
160per cent. A 50 per cent fall in property
values would equate to an LTV ratio of
approximately 62 per cent. Net property rental
income would need to fall by around 70 per cent
from 2025 levels to reach the interest cover
covenant threshold of 1.25 times.
Outside the MTP, the following viability risks
were also considered:
• A 10 per cent movement in foreign
exchange rates: due to long-term hedging
arrangements in place, foreign exchange
movements are not considered a material risk
to the Group’s viability.
• An inability to refinance maturing debt:
thenearest material refinancing requirement
is in 2026 for the €650 million bond maturity
which has been partially refinanced by the
new €360 million term loan facility, with the
residual financed through the revolving credit
facility which was £1.3 billion undrawn at
31December 2025. This means the risk to the
Group’s viability is towards the start of the
period. We typically consider refinancing
options for long-term debt around 12 months
ahead of maturity, and where not, we carefully
consider the liquidity implications. In the
event that relationship bank lending, equity
and bond markets are unavailable, options to
raise liquidity include reductions in capital
expenditure and increased asset disposals.
• A sustained interruption to the Group’s
business continuity: a qualitative assessment
of SEGRO’s ability to operate with
compromised workspace and IT structure
iscarried out each year, with regular live
scenario tests undertaken by key members
ofstaff with the help of external advisers
toensure responses are rehearsed and
mitigations are in place. No material threat
toSEGRO’s viability was identified.
• Climate-related threats to the portfolio:
working with Savills Earth, we conducted a
climate risk exposure study to assess the acute
and chronic physical risks to our portfolio
spanning a period from the current day to 2100.
Drought stress presents as the most significant
emerging chronic hazard but with limited impact
on our assets. Heat stress and river flood are
other areas where there is an increase in risk
exposure compared to the baseline, but assets
exposed to these hazards represent only 5 to 6
per cent of rental value. Therefore, we do not
consider such risks to be a threat to the viability
of the Group. Further information can be found
on pages 49 and 50.
The scenarios set out are hypothetical and
severe for the purpose of creating outcomes
which have the ability to threaten the viability
ofthe Group. We also note that, in the event
ofasevere threat to liquidity, various options
areavailable to the Group to maintain viability.
These options include reduction of any
non-committed capital expenditure and
acquisitions, selling assets, or reducing cash
dividends (including the use of scrip dividends).
We are optimistic about the longer-term
prospects of our business based on our prime,
sustainable portfolio and high levels of occupancy
let to a diverse range of customers on long
average lease lengths, backed by a strong
balance sheet with long debt maturity and with
well spread diversified refinancing requirements.
These are supported by the long-term trends in
the warehouse and industrial real estate sector
ofgreater e-commerce penetration of retail sales,
supply chain reconfiguration and increasing
urbanisation across Europe.
45
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SEGRO plc Annual Report & Accounts 2025
Overview Strategic Report Governance Financial Statements Further Information
2025 Viability statement
This table signposts related non-financial and sustainability information in this report and further reading on our website.
Reporting requirement
Policies
Website (WWW.SEGRO.com)
Reference in 2025 Annual Report
1. Environmental matters
Mandatory Sustainability Policy
About – Policies Responsible SEGRO
Championing low-carbon growth
22-23
2. Climate-related financial disclosure requirements
Responsible SEGRO
Climate-related financial disclosures
48-55
3. Employees
Code of Business Conduct and Ethics
About – Policies
Governance
Governance
80
87
Human Rights Policy
About – Policies
Governance
125
Our Purpose and Values
Our Purpose – Our Values
Our business model and strategy
18-19
Nurturing talent
25
Governance
79
Diversity and Inclusion Policy
About – Policies
Nurturing talent
25
Group Health and Safety Policy
About – Policies
Nurturing talent, principal risks and
Governance
25, 62, 79
4. Human rights
Human Rights Policy
About – Policies
Directors’ Report
125
Modern Slavery and Human Trafficking Statement
Anti-Slavery and Human Trafficking Policy
About – Slavery and Human Trafficking
Directors’ Report
125
Modern Slavery and Labour Standards Supplier Code
About – Slavery and Human Trafficking
Governance
Directors’ Report
87
125
5. Social
Modern Slavery and Labour Standards Supplier Code
About – Slavery and Human Trafficking
Suppliers
Directors’ Report
87
125
Modern Slavery Statement
About – Slavery and Human Trafficking
Directors’ Report
125
Human Rights Policy
About – Policies
Directors’ Report
125
Group Health and Safety Policy
About – Policies
Nurturing talent, principal risks and
Board leadership and Company purpose
25, 62, 79
Supplier Code of Conduct
About – Policies
Governance
87
6. Anti-corruption and anti-bribery
Code of Business Conduct and Ethics
About – Policies
Nurturing talent
25
Governance
80
7. Business model
About – Our Business
Our business model and strategy
18-19
8. Principal risks and uncertainties
Effective risk management
56-58
9. Non-financial Key Performance Indicators
Investors – Investment Case – Non-
financial Key Performance Indicators
Key performance indicators
27
46
|
SEGRO plc Annual Report & Accounts 2025
Overview Strategic Report Governance Financial Statements Further Information
Non-financial information and sustainability information statement
These figures have been prepared in
accordance with the GHG Protocol to fulfil our
regulatory obligation to report greenhouse
gas emissions pursuant to section 7 of the
Companies Act 2006 (Strategic Report and
Directors’ Report) Regulations 2013 and the
Companies (Directors’ Report), and Limited
Liability Partnerships (Energy and Carbon
Report) Regulations 2018; the latter
commonly referred to as Streamlined
Energyand Carbon Reporting (SECR).
We report our data using an operational control
approach to define our organisational boundary
and have reported emissions following both the
location-based and market-based approach,
using the IEA residual emission factors for any
energy tariffs that are not low-carbon.
We have chosen ‘annualised responsible floor
area sq m’ as our intensity metric, which is all
floor area with Scope 1 and 2 emissions in the
reporting year, apportioned to the length of time
the space was vacant.
‘Total energy use’ covers electricity, fuels
(including transport fuels) and district heating
converted to kWh units. 2025 greenhouse gas
emissions and energy usedata are for theperiod
1 January to 31December 2025 (2024: 1 January
to 31December 2024).
Scopes 1 and 2 emissions, reported under SECR,
account for less than 1 per cent of SEGRO’s total
emissions. For our full Scopes 1 to 3 carbon
footprint, and all of the metrics we are tracking
on our path to net-zero carbon, please see our
Responsible SEGRO Report 2025.
Our Responsible SEGRO Report, and a detailed
description of ourmethodology, can be
foundatSEGRO.com/Responsible-SEGRO/
reports-downloads.
Streamlined energy and carbon reporting (SECR)
In line with best practice, under SECR we report both a ‘market-based’ and ‘location-based’ figure
for emissions from electricity consumption. The market-based approach incorporates SEGRO’s
move towards low-carbon energy tariffs on its controlled space (largely its SEGRO-occupied offices,
SEGRO-managed common parts and vacant space), whereas the ‘location-based’ approach uses
national grid averages (see the notes to the table below for more on location/market).
SLR Consulting provide limited independent assurance to ASAE3000.
Global SECR-relevant GHG emissions in metric tonnes CO
2
e
Emissions from:
2025 2025 – UK 2025 – EU
2024* 2024 – UK 2024 – EU
Scope 1 emissions –
combustion of fuels and
refrigerant use
2,306 829 1,477
2,292 1,127 1,165
Scope 2 emissions –
purchased energy
(location-based)**
3,637 1,228 2,409
3,375 1,357 2,018
Scope 2 emissions –
purchased energy
(market-based)***
1,801 1,041 760
1,296 638 658
Scope 3 – business
travel
64 34 30
108 58 50
Total SECR carbon
emissions (location-
based) tCO
2
e
6,007 2,091 3,916
5,774 2,542 3,232
Responsible floor area
sq m****
595,920 286,983 308,937
468,452 258,316 210,136
Carbon intensity
(kgCO
2
e/sq m) –
location-based
10.1 7.3 12.7
12.3 9.8 15.4
Carbon intensity
(kgCO
2
e/sq m) –
market-based
7.0 6.6 7.3
7.9 7.1 8.9
Total energy use (kWh)
27,961,249 12,634,283 15,326,966
23,835,174 12,783,041 11,052,133
* All 2024 data above has been restated to update Q4 2024 energy consumption estimates to actuals.
** The location-based approach to calculating Scope 2 emissions (emissions from electricity consumption) uses national grid average
emissions factors which reflect the make-up of a country’s electricity supply between fossil fuels and renewables. SECR legislation
requires that a location-based figure be reported.
*** The market-based approach to calculating Scope 2 emissions reflects the carbon intensity of the electricity tariffs procured
bySEGRO, using the IEA residual emission factors for any energy tariffs that are not low-carbon.
**** Responsible floor area includes common areas and space classified as vacant during the year, apportioned to the length of time
the space was vacant.
For more details on the independent assurance
ofour GHG data see: www.SEGRO.com/
Responsible-SEGRO/reports-downloads
47
|
SEGRO plc Annual Report & Accounts 2025
Overview Strategic Report Governance Financial Statements Further Information
Streamlined energy and carbon reporting
For our Responsible SEGRO
Report use the QR code or visit
our website at https://
www.SEGRO.com/Responsible-
SEGRO/Responsible-SEGRO-
review
As a leading owner, manager and developer
ofindustrial assets in Europe, oursustainability
and financial strength is reliant upon an effective
and rigorous risk management framework.
Ourproperties span the UK and Continental
Europe and are therefore exposed toa variety
ofeffects from a changing climate. We believe
that these climate-related risks, if unmitigated,
present a threat to society as well asto our
business operations and financial strength
overthe coming decades.
A core element of our strategy to reduce
thecarbon intensity of our business is our
science-based greenhouse gas (GHG) emissions
reduction targets, set in 2024 and re-baselined
in2025. We aim to reduce the embodied carbon
intensity of our new buildings by 58 per cent, and
our corporate and customer emissions intensity
by 80 per cent, both by 2034against a 2023 base
line. We also have 2050 net-zero targets in these
two categories, which make up the material
portion of our Scope 1, 2 and 3 GHG emissions.
These targets were approved by the Science
Based Targets initiative(SBTi) during 2025.
The achievement of our targets in both
categories is highly dependent upon factors
outside of our control. Reduction of embodied
carbon inour developments can be influenced
via engagement with our suppliers butis
dependent on the availability of low-carbon
materials. We have limited control over emissions
fromcustomer activity in our assets but we seek
toinfluence customer emissions through
increasing our visibility of customer energy use,
the adoption of‘green’ lease clauses in new
lettings, as well asthe installation of on-site solar
energy generation capacity.
There have been no material changes to the
nature of the business over the past 12 months,
but a revision to the calculation methodology
required by the SBTi has resulted in changes
toour 2023 baseline and 2024 comparative
emissions intensities. Further information
onthisis included in the 2025 Responsible
SEGROReport.
We believe this disclosure is consistent with
therecommendations and recommended
disclosures of the Task Force on Climate-related
Financial Disclosures (TCFD), including the
‘Guidance for All Sectors’ and the specific
guidance applicable to the ‘Materials and
Buildings’ industry to the extent to which it is
applicable to SEGRO’s operations. It sets out how
SEGRO incorporates climate-related risks and
opportunities into governance, strategy, risk
management, metrics and targets, and how we
are responding to stakeholder expectations,
national regulations and sector-wide best practice.
This is an area of constant evolution and we
intend to continue improving the disclosure
ofour activity and performance. The material
information and disclosure on climate impact
isprovided in this Annual Report but additional
complementary information can be found in
the2025 Responsible SEGRO Report.
Governance
Governance plays a key contributing role to the
effective delivery of strategy and SEGRO has
aclear governance structure with a single
Boardcomprising an independent Chair,
sixindependent Non-Executive Directors
andtwoExecutive Directors.
Board and management
oversightofclimate-related risks
andopportunities
The Board is responsible for setting the strategic
direction of the Company to ensure its long-term
success which includes the delivery and
integration of its strategic priorities, including
Responsible SEGRO, and their associated targets.
Specifically, the Board has oversight of
climate-related performance, risks and
opportunities andtakes into consideration all
elements of Responsible SEGRO, including
climate-related risks and opportunities, when
reviewing and guiding on annual budget and
long-term planning matters as well as major
strategic andinvestment decisions.
Governance of climate-related risks and opportunities
The Board
Oversight of climate-related strategy and performance
Ä
Ä
Executive Committee
Setting climate change-related strategy and targets
Ä
Ä
Ä
Ä
Technical
Implementation
Group
Focus on
development policy
and improvement
Investment
Committee
Ensuring capital
allocation decisions
are consistent with
climate-related
targets
Group Risk
Committee
Monitoring climate
change-related
risks and emerging
risks
ESG Governance
Committee
Monitoring
SEGRO’s climate
targets and
external ESG
disclosures
Operational
Implementation
Group
Focus on policy
and improvement
of existing assets
48
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SEGRO plc Annual Report & Accounts 2025
Overview Strategic Report Governance Financial Statements Further Information
Climate-related financial disclosures
Audit Committee
Oversight of climate-related
disclosure within the
AnnualReport
Nomination Committee
Considers sustainability
andclimate change-related
experience of new and
existing Board members
Remuneration Committee
Sets, monitors and approves
compensation and targets
related to sustainability
performance, including
reducing Group carbon
emissions
Board and management oversight
ofclimate-related risks and
opportunities continued
The Board has access to advice relating to
climate-related risks and opportunities from
internal and external bodies including the
in-house sustainability team, our portfolio valuers,
Schneider Electric as our environmental
consultants and SLR Consulting as a provider
ofpartial assurance of Group environmental data,
among others.
The Chief Executive has overall responsibility
forthe Responsible SEGRO priorities. The
Managing Director, Operations, Digital and
Customer is responsible for climate-related risks
and opportunities that relate to the portfolio.
The table on page 48 outlines the ways in which
Board Committees provide oversight for SEGRO’s
climate change-related strategy and targets.
Governance: action during 2025
• The Executive Committee has approved our
updated GHG reduction targets, which were
validated by SBTi also in 2025.
• The Board received updates on progress
against our Responsible SEGRO commitments,
including reducing carbon emissions.
• The Audit Committee received updates from
the Head of Sustainable Finance on evolving
sustainability reporting requirements in the UK
and European Union and the progress SEGRO
is making to respond to these.
• The Remuneration Committee approved the
targets relating to the Responsible SEGRO
annual bonus metrics for Executive Directors,
which are mirrored for all employees,
including ones incentivising actions to reduce
embodied carbon in developments and
increase energy data visibility.
• The ESG Governance Committee has been
setup to advise and support the Executive
Committee in respect of climate targets
andexternal ESG disclosures.
Strategy
As a long-term property owner, we need to
ensure that our buildings are fit for purpose for
the future. One of the ways we do this is to build
adaptable buildings, suited to more than one
customer. This ensures a longer life span for the
building as well as reducing the risk of vacancy
and future refurbishment costs.
The Responsible SEGRO framework sets out
how we integrate environmental and social
considerations into our corporate strategy,
including ‘Championing low-carbon growth’
which sets out our approach to reducing carbon
emissions from our business activities. This
commitment includes Scope 1 and 2 emissions
and the material Scope 3 emissions which
areCapital Goods (embodied carbon from
completed developments) and Downstream
Leased Assets (largely corporate emissions
andthose from customers occupying our
buildings). See the Responsible SEGRO Report
at www.SEGRO.com for a full breakdown
ofourScope 1, 2 and 3 emissions.
Strategy: action during 2025
SEGRO completed a number of projects
tomitigate climate-related transition risks:
• We continued to work with external
consultants to update and refine our Net-Zero
Transition Plan, taking improved emission
forecasting capabilities to inform a more
accurate strategy and timeline for achieving
net-zero.
• We continued to invest in our existing
portfolio, refurbishing older assets to improve
their energy efficiency and carbon footprint
and retrofitting solar PV arrays to standing
assets to increase our on-site clean energy
generating capacity.
• We also continue to work with external
consultants to ensure that we are positioned
to comply with the prevailing regulatory ESG
reporting requirements comfortably before
we become required to report on them.
Identification of climate-related
risksand opportunities over the
short, medium and long term and
their impact on SEGRO’s business,
strategy and financial planning
Materiality analysis of physical risk
In 2024, working with Savills Sustainability
inconjunction with Munich Re, JBA and
open-source data providers, SEGRO undertook
aphysical climate risk portfolio screening
toassess the acute and chronic physical risks
toour portfolio. This detailed assessment
isperformed every two years and takes into
consideration the latest climate data and
analytical approaches. The analysis identified
where there were significant exposures to
physical climate risks at country, portfolio and
estate level across a range of climate scenarios,
both Representative Concentration Pathways
(RCPs) and Shared Socioeconomic Pathways
(SSPs), and over four time horizons out to 2100.
In 2025 SEGRO updated this analysis to account
for changes in the portfolio.
The full report from Savills is available at
www.SEGRO.com/Responsible-SEGRO/
reports-downloads.
For this study, the physical risk from hazards
under RCP 4.5/SSP 2-4.5 (3ºC warming
by2100,the intermediate scenario) and
RCP8.5/SSP 5-8.5 (4–5ºC warming by 2100,
thehigh emission scenario) were modelled
on196 estates, covering over 98 per cent of our
owned or managed floor area (at 100 per cent)
and estimated rental value (ERV, based on
SEGRO wholly owned properties and its share
ofproperties in joint ventures and associates).
Theoutcome of this analysis for the 2050 time
horizon is presented in the table on page 50.
In summary, primarily considering the
intermediate scenario (RCP 4.5/SSP2-4.5) the
risks to the business from exposure to climate
change-related hazards are not considered
tohave materially changed.
Drought Stress, involving an extended period
ofwater deficit, presents as the most significant
emerging chronic climate-related hazard across
both RCP/SSP scenarios, with assets exposed
tothis hazard in the intermediate scenario
representing 13 per cent of rental value (26 per
cent in the high emissions scenario), focused on
our portfolio in Southern Europe, specifically in
Italy, Spain and southern France. The main risks
to buildings associated with lack of water are
also associated with fire weather and
heatstress, where high temperatures are
experienced for an extended period. The
portfolio’s exposure to these hazards is relatively
lower at 1 per cent and 5 per cent respectively.
Beyond these risks our portfolio has relatively
limited vulnerability to drought stress, as our
buildings are not inherently significant users
ofwater with systemic water use restricted
toplumbing and fire protection systems,
maintained in line with local regulations.
Riverflood is the other area of potential
vulnerability where there is an increase in risk
exposure compared to baseline, but assets
exposed to this hazard represent only 4-5 per
cent of rental value in the intermediate scenario.
7 per cent ofthe portfolio, by rental value, is
exposed to cold stress in the intermediate
scenario, but thisis lower than the current
exposure meaning that the level of risk is
expected to diminish overtime.
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Climate-related financial disclosures continued
Identification of climate-related risksand opportunities over the short, medium and long term and their impact on SEGRO’s business, strategy
andfinancialplanning continued
Climate change physical exposure risk at asset level based on RCP 4.5/SSP 2-4.5 and RCP 8.5/SSP 5-8.5
Hazard
Metric
Scenario
(RCP,Year)
Floorspace
(at 100%)
ERV
(at share)
Markets most affected
River Flood
1 in 100-year return period >0
RCP4.5, 2050 (Undefended)
5%
5%
France, Poland, Germany, UK, Italy, the Netherlands
RCP8.5,2050 (Undefended)
6%
6%
France, Poland, Germany, UK, Italy, the Netherlands
RCP4.5, 2050 (Defended)
4%
4%
France, Poland, Germany, UK, Italy
RCP8.5,2050 (Defended)
4%
4%
France, Poland, Germany, UK, Italy
Storm surge
‘Very High’ Risk
SSP2-4.5, 2050 (Undefended)
3%
4%
Coastal regions in UK, Germany, the Netherlands
SSP5-8.5, 2050 (Undefended)
3%
4%
Coastal regions in UK, Germany, the Netherlands
SSP2-4.5, 2050 (Defended)
1%
2%
Coastal regions in UK
SSP5-8.5, 2050 (Defended)
1%
2%
Coastal regions in UK
Precipitation Stress
‘High’ and ‘VeryHigh’ Risk
SSP2-4.5, 2050
6%
3%
Italy
SSP5-8.5, 2050
6%
3%
Italy
Drought Stress
‘High’ and ‘VeryHigh’ Risk
SSP2-4.5, 2050
18%
13%
Southern France, Italy, Spain
SSP5-8.5, 2050
49%
26%
Germany, Czech Republic, Poland, France, Italy, Spain
Heat Stress
‘High’ and ‘VeryHigh’ Risk
SSP2-4.5, 2050
11%
5%
Southern France, Central Spain, Italy
SSP5-8.5, 2050
13%
6%
Southern France, Central Spain, Italy
Cold Stress
‘High’ and ‘VeryHigh’ Risk
SSP2-4.5, 2050
19%
7%
Germany, Poland, Czech Republic
SSP5-8.5, 2050
15%
5%
Germany, Poland, Czech Republic
Fire Weather Stress
‘High’ and ‘VeryHigh’ Risk
SSP2-4.5, 2050
3%
2%
Southern France, Central Spain
SSP5-8.5, 2050
3%
2%
Southern France, Central Spain
The assessment report and data above
donotconsider any asset specific development
or refurbishment mitigation cycles. As part
ofour sustainable development objectives,
assessments are carried out prior to
development and adaptation measures,
including but not limited to those listed to the
right carried out accordingly.
Risk
Adaptation techniques
Drought Stress and Heat Stress
(seeR1below)
• Rainwater harvesting systems for internal building use and landscaping
• Thermal modelling undertaken and orientation/window positioning of the building reviewed, including external
planting toprovide shade, brise soleil, louvres, window tinting
• On-site renewable energy generation installed to manage additional cooling requirements
River Flood and Precipitation Stress
(seeR2 below)
• Flood risk assessment to be carried out on development orretrospectively
• Sustainable urban drainage systems
• Retention schemes – ponds/basins
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Climate-related financial disclosures continued
Materiality analysis of transition risk
We work with our stakeholders (primarily our
customers, suppliers and investors) and advisers
(primarily our valuers and environmental
consultants) to monitor, assess and prioritise
emerging climate change transition risks.
Wejudge materiality with reference to two
mainfactors: the environmental and
reputational risks of failing to meet our carbon
emission reduction targets and the financial risk
of building redundancy or being unable legally
tolease ourbuildings.
We consider these risks in the context of a
qualitative scenario where legislation, regulation
and behaviours drive progress towards sub-2
o
C
warming by 2100. We believe that in this
scenario there are three main climate change
transition factors with the potential toimpact
the Group financially:
• Environmental legislation: legislation
surrounding the sustainability performance
ofcommercial and non-commercial real estate
is likely to tighten in future as governments
pursue their commitments under the Paris
Agreement. We expect this to take the form
ofregulations but also increasingly some
formof carbon tax (including Carbon Border
Adjustment Mechanisms introduced by the
EUand proposed by the UK) to encourage the
use of lower-carbon materials and processes.
The primary financial risk relates to our ability
torent out our buildings if they fall below
emerging environmental legislation.
Thisdrivesour determination to improve
theenergy performance of our portfolio
bothin new development and through
refurbishment, measured primarily by
increasing the floorspace rated B or better by
Energy Performance Certificates and reducing
the energy and CO
2
intensity of our buildings.
• Customer behaviours and preferences:
ourcustomers, particularly our largest,
international customers, increasingly expect
their premises to display high levels of energy
efficiency. Energy efficiency not only reduces
the operating costs of the building but also
helps them achieve their own environmental
and carbon reduction targets. The primary
financial risk relates to the appeal of our
buildings to customers if they are below
acceptable levels of energy efficiency
andwider environmental sustainability,
ordonot offer expected facilities such as
EVcharging. We are addressing this risk
through further improving the EPC ratings
ofour portfolio, increasing the amount of
on-site renewable energy generation, and
improving thesustainability credentials
ofourdevelopments.
•
• Access to capital: investors are increasingly
discriminating between investment
opportunities based on sustainability
credentials. The primary financial risk relates
to reduced availability and higher cost of
capital for companies which do not show
strong performance and/or progress in
thisarea.
Applying the analysis to strategic
planning
In terms of decision making, we consider
climate-related issues within the following
timehorizons:
• Short-term: up to 12 months, in line with the
budget setting carried out annually
• Medium-term: up to 5 years, in line with the
Medium-Term Planning carried out annually
• Long-term: up to 10 years, in line with capital
investment appraisal cash flows. We assume
a60-year life span for our newly-developed
properties
Given the relatively small element of the
portfolio exposed to the physical risks, and
thefact that our estates in Southern European
contain some of our newest buildings, we
believe the overall financial risk to be immaterial
and longer term. However, as part of our active
asset management and based on our analysis of
the physical risks arising from climate change
scenarios, we continue to monitor and analyse
the asset-level risks and opportunities and their
associated financial implications. Ourexposure
to transition risks is addressed byour response
to energy efficiency regulations across our
markets, as well our GHG emission reduction
targets, both of which are embedded in
ourstrategy.
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Climate-related financial disclosures continued
SEGRO Park Frechen, Germany
Climate-related risks
Risk Risk horizon Corporate strategy Financial planning
R1
Chronic physical risk
Rising temperatures
(includingextreme heat events)
Medium-term risks:
• Greater investment in cooling measures inside and
outsidebuildings
• Higher operating costs for customers and SEGRO
fromincreased cooling demand
• Reduced wellbeing and productivity of workforce
Mitigations integrated into developments and refurbishments
in properties in high-risk geographies, including water
conservation through recycling of rain water and measures
toreflect heat and improve shading externally.
Measures incorporated into financial appraisals
ofdevelopments and refurbishments.
R2
Acute physical risk
Flood and precipitation
Short-term risks:
• Increased investment in drainage solutions and
flooddefences
• Increased insurance, maintenance and repair costs
fromgrowing flood risk
• Negative impact on asset valuations
All new investments (both acquisitions and developments)
incorporate flood risk assessments.
Measures taken to mitigate flood risk include rainwater
recycling and landscaping to minimise run-off, and balancing
pools to cater for run-off from hard-standingareas.
Measures incorporated into financial appraisals of
acquisitions, refurbishments and developments.
Valuers review assets for short-term physical risks
aspart of twice-yearly appraisals.
R3
Policy and legal
transitionrisk
Environmental legislation
Medium-term risks:
In the UK, the Minimum Energy Efficiency Standard (MEES)
regulations require buildings to achieve a certain standard
ofenergy performance for them to be leased. At a high level,
by 2030, properties will need to achieve a minimum
EnergyPerformance Certificate rating of ‘B’ before they
canbe leased.
Similar legislation is being put in place across our other
markets. The aim of our corporate strategy is to be compliant
with such legislation well in advance of the deadlines.
Properties which are unrated or have an EPC below B
areexpected to be upgraded when they become vacant
(approximately 43 per cent of such buildings in the UK
areexpected to be vacated by 2030).
Capex associated with refurbishment, including
improving energy efficiency, is factored into short-
term budgets and the five-year Medium-Term Plan.
The estimated cost to upgrade the UK estate to EPC
rating ‘B’ or better is approximately £40 million by
2030, much of which will be absorbed within normal
course of refurbishment capex. The figure has
decreased primarily due to work carried out to date to
improve low-grade EPC premises to at least B-grade.
R4
Market transition risk
Customer behaviours
Short- and medium-term risks:
Customers expect to operate their properties efficiently.
There is growing evidence of rental discount associated with
buildings which display poor sustainability credentials.
New developments and refurbishments incorporate
sustainability technologies suited to their use and location,
including (but not limited to) solar panels (for customer use),
electric vehicle charging facilities, low-carbon heating and
initiatives to promote local biodiversity and worker wellbeing.
Capex associated with refurbishment, including
improving energy efficiency, is factored into short-term
budgets and the five-year Medium-Term Plan.
R5
Reputation transition risk
Access to capital
Short- and medium-term risks:
The Sustainable Finance Disclosure Regulation (SFDR)
imposes mandatory ESG disclosure obligations for asset
managers and other financial markets participants.
TheSFDRis accompanied by other emerging UK and
EUsustainability reporting requirements which may impact
non-financial companies.
We have an established Green Finance Framework which
complies with International Capital Market Association and
the Loan Market Association principles. The Framework sets
out the investment criteria for deploying and allocating the
proceeds of green finance instruments, including in energy-
efficient and low-carbon buildings. SEGRO will continue
tomonitor emerging UK and EU non-financial reporting
regulations as required.
When a decision is made to raise capital, consideration
is given to whether the issue should fall under the
Green Finance Framework (e.g. a Green Bond).
Climate-related opportunities
Opportunity Risk horizon Corporate strategy Financial planning
O1
Energy and fuel
On-site renewable energy
generation
Short- and medium-term opportunity:
Revenue and zero-emission energy potential from installing
PV panels onbuilding roofs.
PV panels are installed on roofs where feasible and all
newdevelopments are constructed with roofs to support
PVpanels if a full array is not installed during construction.
Energy saving from solar PV is an important element in
creating net-zero carbon buildings on a full life basis.
The costs of solar panels are incorporated in new
development and refurbishment capex. Revenues
andcost savings, which are currently a small
proportion of overall revenues, are split between being
incorporated into rents and separately identified.
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Climate-related financial disclosures continued
Risk management
Climate-related risks are identified and assessed
using our risk management framework set out
on page 58. Principal risks are defined as those
which could intolerably exceed our risk appetite,
considering both inherent and residual impact,
and cause material harm to the Group.
Engagement with stakeholders
We engage with our stakeholders throughout
the year on many different topics, although the
subjects of climate change and the need to
reduce corporate and customer GHG emissions
have featured more prominently over the past
year. More detail on our stakeholder
engagement, including on climate-related
matters, can be found on pages 84 to 89.
Identifying and assessing
climate-related risks
Although climate change presents opportunities
as well as risks for SEGRO, climate change
isidentified as a principal risk within
environmental sustainability and climate change
on the Risk Register. Climate-related risks are also
considered within other principalrisks including
political and regulatory,development plan
execution andmajor event/business disruption.
For each risk, our Risk Register tracks:
• description of the risk and the potential
effects
• the Executive Director with overall ownership
and the Risk Manager responsible for
monitoring and managing the risk
• an annual probability and potential impact,
toenable prioritisation
• mitigations in place as well as the owner
ofeach mitigating action
At the current time and based on asset-level
scenario analysis, no material capital
expenditure has been identified beyond normal
course development and refurbishment costs
associated with mitigating assets in high-risk
locations against climate change-related risks.
Such risks, and related capital expenditure,
areconsidered as part of the annual asset
planning process associated with the five-year
Medium-Term Plan.
Managing and mitigating
climate-related risks
Our process for recognising, monitoring
andmitigating principal risks, including
climate-related risks, is set out on page 58
oftheAnnual Report. The Board has overall
responsibility for ensuring that risk is effectively
and consistently managed across the Group.
The Audit Committee monitors the effectiveness
of the Group’s risk management process
onbehalf of the Board. In every year, the
AuditCommittee twice reviews the process
ofhow the Group Risk Register has been
compiled andthe Board twice reviews the
principal andemerging risks. The Board also
reviewsandapproves the Group’s risk
appetiteat least once every year.
In its Responsible SEGRO framework, SEGRO
has committed itself to achieving science-based
targets for reducing Scope 1, 2 and 3 emissions
(including corporate and customer emissions)
toensure compliance with a less than 1.5ºC
increase in global temperatures. A key risk
surrounding these targets is that we cannot
becertain to achieve them given limited ability
to control or influence customers’ energy
useinour buildings and uncertainty over the
availability of low-carbon building materials
toreduce the embodied carbon emissions
indevelopments.
The metrics and targets section below provides
details on how we monitor these risks and our
progress over the past year.
Risk management:
actionduring2025
We have an established Mandatory Sustainability
Policy and internal targets associated with not
only reducing embodied carbon emissions
butalso working with our customers and supply
chain to achieve greater visibility of those
emissions. These targets are integrated within
aResponsible SEGRO element of the bonus
metrics throughout the organisation.
• Sustainability Policy: We review our Mandatory
Sustainability Policy annually and continue to
update it to reflect the latest level of ambition
and minimum expectations. Wewill continue
to keep the policy under review and adjust
and tighten it in response toemerging
regulation and market norms toensure that
itis always in line with best-in-class practice.
• We initiated a project to analyse in greater
detail the vulnerability of our portfolio
wheremodelled, unmitigated physical
climatechange hazards are at the more
severe end. We used the hazards highlighted
by our portfolio level analysis performed
in2024 for selected sites; and have
conducted one on-site visit in 2025,
withasecond one scheduled for 2026
toconduct more detailed examinations of
vulnerability.
Metrics and targets
To enable our stakeholders to consider
andcompare our reporting, we contribute
toanumber of externally recognised
benchmarks and disclose metrics in line with
externally recognised frameworks including
Sustainability Accounting Standards Board
(SASB), Global Reporting Initiative (GRI) and
theEPRA Best Practices Recommendations
onSustainability Reporting. We will also
reportinline with new and evolving UK and
EuropeanSustainability Reporting requirements,
where required and relevant to us, which
encompass disclosures from a number
oftheseexternal frameworks.
In order to ensure that we also report on those
issues that we can have a direct impact upon,
we refer to our double materiality assessment
(see Responsible SEGRO Report), and identify
the key associated metrics that are material
tothe business. Below are the climate-related
metrics and targets which we monitor.
Thoseinbold are incorporated into the
Responsible SEGRO elements of the annual
bonus of all employees.
There are no metrics specifically mapped
torisk2 (flood), although risks 1 and 2 are
addressed in the scenario analysis on page 50.
We are monitoring and addressing the asset-
level risks and opportunities but there is not yet
a meaningful, measurable metric for these areas.
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Climate-related financial disclosures continued
Metrics and targets continued
Assets
Policy and Legal
Corporate and customer carbon intensity of the portfolio
(based on the CO
2
e emissions of the portfolio for which
we have visibility of the data), in kgCO
2
e/sq m of AUM
(science-based target, market basis)
2023 baseline (rebased): 22.5kgCO
2
e/sq m
2034 interim target (rebased): 4.5kgCO
2
e/sq m
(-80%vsbaseline)
2050 target: net-zero
20.0
24.0
Decrease reflects continuing shift to renewable energy
use in our portfolio, supported by rooftop solar installed
on many of our buildings.
2024 restated to align with updates to our methodology
and estimations related to Scope 3 emissions.
R3, R4, O1
EPCs rated B or better (based on floorspace AUM)
81%
76%
Increase due to completions of energy-efficient
developments and refurbishments.
R3, R4
EPCs rated below E (based on floorspace AUM)
1%
1%
Slight decrease reflecting disposals and developments.
R3
Portfolio with high environmental certification (BREEAM
Very Good or better (or equivalent)) based on floorspace
AUM
56%
51%
Completions of developments offset by disposals.
R4, R5, O1
Assets
Risk Adaptation and
Mitigation
Portfolio with high environmental certification (BREEAM
Very Good or better (or equivalent) and/or EPC
certificate of B or better (percentage of value at share)
(‘Green portfolio’)
£11.5 billion
(70%)
£10.0 billion
(65%)
Comprising wholly owned assets of £9.0 billion
(2024:£7.9 billion) and assets held in joint ventures
of£2.5 billion at share (2024: £2.1 billion).
R5
Expenditures
GHG Emissions
Visibility of customer emissions
Percentage of portfolio space (sq m of AUM) for which
we have energy data
91%
87%
Many customers are not obliged to disclose energy use
data to us. Without it, however, we cannot accurately
measure our corporate and customer emissions
(approximately half of our total Scope 1–3 emissions).
R1, R3, R4
Corporate and customer emissions (Scope 1, 2 and 3 –
Downstream Leased Assets)
Tonnes CO
2
-equivalent emissions (science-based target)
The SBTi launched a new ‘Buildings’ framework in 2024;
as our existing targets were due for renewal, we have
used this framework to set new net-zero targets in
Corporate and Customer Carbon emissions intensity and
Embodied Carbon emissions intensity, replacing our
previous targets in absolute emissions.
214,615
239,779
Incorporates Scope 1, 2 (market-based) and 3
(Downstream Leased Assets) emissions from the portfolio.
The decrease reflects continuing shift to renewal energy
use in our portfolio, supported by rooftop solar installed
on many of our buildings.
2024 restated to align with updates to our methodology
and estimations related to Scope 3 emissions.
R3, R4, R5, O1, O3
Financial
Climate-related
Metric
2025
2024
Narrative
Associated risk
oropportunity
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Embodied carbon intensity (based on Scope 3 Capital
Goods)
kgCO
2
e/sq m of completed space (science-based target)
2023 baseline: 331 kgCO
2
e/sq m
2034 target: 139 kgCO
2
e/sq m (-58% vs baseline)
2050 target: net-zero
280
318
This figure incorporates the results from 238,474 sq m of
space completed in 2025.
R3, R4
Internal carbon price (£ per tonne)
£100
£100
A carbon price is applied to capex relating to
environmental improvements, particularly when
considering the returns from retrofitting solar PV to
existing assets.
R3, R4, O1
Revenues
Energy/Fuel
On-site solar power capacity (MW)
145.1
123.1
22 MW capacity added during the calendar year (2024:
64MW) as part of new development completions,
retrofitting PV panels to existing buildings and
acquisitions of buildings with PV.
R3, R4, O1
Percentage of visible corporate and customer electricity
use from certified renewable sources
82%
76%
Based on the portfolio for which we have visibility, and
using estimates and assumptions on the residual element.
This figure may change as we increase the visibility of our
customers’ energy use. We are working with our
customers to improve this metric through increased use
of certified renewable energy tariffs and renewable
energy generatedon-site.
(2024 restated for updated assumptions on data centre
energy use.)
R3, O1
Financial
Climate-related
Metric
2025
2024
Narrative
Associated risk
oropportunity
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Effective risk
management
Risk management ensures
astructured approach to
decision making, reducing
theuncertainty surrounding
expected outcomes. This is
balanced against the objective
of creating and protecting
valuefor our stakeholders.
SEGRO recognises that an effective,
proportionate, dependable, and integrated
riskmanagement process is essential for
asuccessful strategy, decision making,
andbusiness model. The framework ensures
that SEGRO can maintain resilience amidst
ongoing macroeconomic uncertainty, aswell as
ensuring that we are best positioned tobenefit
from future market improvement.
Annual risk management update
Throughout the year, SEGRO’s Board and
relevant Committees have continued to oversee
our response to external and internal risks.
TheGroup Risk Committee convened three times
during 2025 to supervise the risk management
function on behalf of the Executive Committee.
Following Soumen Das’s departure from SEGRO
as Chief Financial Officer, I have taken his
position on the Group Risk Committee as Chair.
Ihave joinedthe existing team of knowledgeable
and experienced senior management who are
well established on theCommittee.
SEGRO’s principal risks have remained
relativelyconsistent. We regularly review our
investment strategy and carefully manage
ourbalance sheet to protect SEGRO from
ongoing economic uncertainty. This year we
have considered potential new risks arising
outofSEGRO’s joint venture with Pure Data
Centres Group (Pure DC) andthe development
of a fully fitted data centre. Various elements of
this risk overlap withrisks we already consider,
forexample, construction execution, power
andthe wider portfolio strategy.
SEGRO has also been monitoring the rapidly
developing cyber security environment and
increasingly sophisticated, high-profile attacks.
Inlight ofthese developments, we have reviewed
ourassessment of supplier exposure, the efficacy
of our controls and the appropriateness of our
response plans including strengthening
contracted cyber specialist resources. We have
also started using Artificial Intelligence (AI) as part
of our wider defencetoolset to help defend
against attacks bycybercriminals who
themselves may bemaking use ofit.
Emerging risks
In addition to monitoring our principal risks,
weactively identify, monitor and formally review
emerging risks. These risks include a variety
ofpotential longer-term developments relating
to such areas as customer trends, planning
policy, technology developments, energy
andpower, climate change-related
extremeweather events and corporate growth.
Two examples of what we consider are:
Technology and AI as a disruptor and
opportunity. The full impact of AI and its
application to most businesses is impossible
tofully assess whilst it currently evolves at such
pace. We believe that peers could gain a
competitive advantage through earlier or better
use of AI on their platform. The continued
adoption of AI by our customers may affect
customer demand for our assets. It also
createsa significant opportunity for our data
centrestrategy.
Increased geopolitical instability. The volatile
geopolitical landscape may cause significant
disruption following rising protectionism,
heightened political tensions leading to conflict
and/or strategic competition between major
powers. This might create long-term uncertainty
and affect global trade, energy security, supply
chains and regulatory landscapes.
Overall, despite these concerns SEGRO remains
agile and alert in seeking to mitigate the impacts
of such risks on the business.
Susanne Schroeter,
Chief Financial Officer
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Managing risk
DPD, SEGRO Park Stryków, Poland
Our risk appetite
Risk appetite is integrated within SEGRO’s
riskmanagement process; we aim to keep
controllable risks within our appetite. Our risk
appetite drives business decisions and strategic
planning across all parts of the organisation.
Theappetite is reviewed and approved by the
Board annually and it defines tolerances and
targets for key metrics, as well as consisting
ofqualitative descriptions. Risk appetites vary
byrisk type and adapt over time but, overall,
theGroup maintains a low-risk appetite
tosupport long-term value.
We ensure that we
proactively and continuously
monitor risk toenable us
torespond tochanges in
therisk environment and
promptly make appropriate
adjustments.”
Property risk
SEGRO seeks outperformance from its
portfolio and therefore recognises that it
must accept a balanced level of property
risk. The portfolio targets stable, low-risk
income and resilience during downturns,
supported by appropriate land holdings
anda diverse occupier base across
differentsectors, withstrong covenants.
Wegenerally avoid over-exposure to
specialised properties in our industrial and
logistics portfolio and encourage customers
to support SEGROin operating inalow
carbon way.
Financial risk
The Group adopts a conservative approach
to financial risk, particularly regarding
solvency and gearing covenant breaches.
Asa REIT, we focus on ensuring stable
progression of earnings and dividends in the
long term, aswell as growth innet asset
value. Werecognise that an appetite for low
leverage can help to mitigate exposure to
market-drivenfluctuations in assetvaluation
and consequential impact onnet asset value.
Corporate risk
The Group has a very low appetite for risks
that could damage its strong reputation with
its stakeholders, including customers,
shareholders, regulators, its people,
business partners, suppliers, lenders,
andthe communities where it operates.
Wetherefore prioritise legal compliance
with relevant laws, accurate and timely
reporting, the health and safety of all
stakeholders, environmental responsibility,
ethical conduct, business continuity,
andcontributing positively to our
localcommunities.
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Managing risk continued
We recognise that for a
riskmanagement process
tobea success it needs
tobe embedded in
thebusiness and well
understood by everyone
involved intheprocess.”
Our integrated and robust approach
to risk management
The Board undertakes a comprehensive
evaluation of the Group’s principal risks, with
formal reviews conducted at least twice a year.
Furthermore, the Board completes an annual
review and approval of the Group’s risk appetite
and risk management policy. The Audit
Committee evaluates the effectiveness of
theGroup’s risk process.
The risk management process identifies,
evaluates, responds to, and records key risks
tothe Group’s strategy and objectives. Internal
risks are closely monitored to ensure that
effective controls are in place and functioning
asintended. The Board recognises its limited
control over external risks like global events,
macroeconomic trends, and regulations,
butcontinues to assess their impact on the
business. The risk process supports appropriate
mitigation measures, but acknowledges
absolute effectiveness is often unlikely to be
feasible. Continuous oversight ensures SEGRO
monitors and adapts to changing risks, whether
that arises from development of an existing
principal risk or a new emerging risk.
The most significant risks are detailed in the
Group Risk Register and for each risk, there
arecontrols to help manage them effectively,
aswell as an assessment of the inherent
(beforecontrols) and residual (after controls)
states. Risk impact is measured against our
riskappetite, classifying each principal risk as
belowappetite, within appetite, tolerable, or
intolerable. We also include a risk velocity for
themost significant risks (i.e. how long it might
takefor an unmitigated risk to reach an
intolerableimpact).
A Key Risk Indicator (KRI) dashboard is regularly
compiled and monitored to track actual and
forecast performance against our risk appetite
metrics. The KRIs are essential to the Group’s
strategy, making sure we stay on track with our
objectives. This transparent overview of risk
status is reviewed by relevant monitoring
Committees and helps SEGRO tomake
informeddecisions.
The Group Risk Register serves as a key input
todetermine priorities within the Group’s internal
audit assurance programme. Furthermore,
management’s annual self-assessment of
internal control effectiveness is aligned to the
risks documented in the register.
Risk governance
The first line of defence is provided by the part
ofthe business that has primary responsibility
toown and manage the risk. They should be close
to and understand the risk thoroughly. Itconsists
of Executive Risk Owners who are allmembers of
the Executive Committee and oversee their risks
while assigning accountability to the Risk
Managers. The Risk Managers are therefore
responsible for the assessment of therisk as well
as the design, implementation and operation of
controls, related to the applicable risk appetite.
Both the Risk Manager and Executive Risk Owner
for each risk review, identify and assess the
existing and emerging risks, together with the Risk
Management Function, at least twice a year.
The second line of defence is provided by
theCommittee that monitors the risk. Alsoat
this level is the Executive Committee which
oversees execution of risk management across
the Group and delegates responsibility tothe
Group Risk Committee.
The Risk Management Function is overseen by
the Group Risk Committee and this function
maintains the Group Risk Register, manages risk
documents, supports the first line of defence
and provides quality assurance.
The third line of defence is provided by internal
audit which oversees the effectiveness of these
processes on behalf of the Board. The Audit
Committee gives objective and independent
assurance on whether the first and second lines
of defence are operating effectively, and
oversees the internal audit programme with
consideration of the Group Risk Register.
Additional details regarding adherence to the
risk management provisions of the UK Corporate
Governance Code are available in the internal
controls and risk management section of the
Audit Committee Report on page 105.
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Managing risk continued
Risk management process
Risk management process
Board
The Board has overall responsibility for ensuring that risk is effectively managed across the Group
Ä
Audit Committee
Monitors effectiveness of the risk management process
Ä
The first line of defence
Executive Risk Owners Risk Managers
Ä
The second line of defence
Monitoring Committees Executive Committee Group Risk Committee
(including Risk Management
Function)
Ä
The third line of defence
Internal Audit
Principal risks and uncertainties
Principal risks have the potential to materially
impact SEGRO’s business. These risks are
classified as ‘principal’ based on theirpotential
to intolerably exceed the Group's risk appetite
(considering both inherent and residual states)
and to have a material impact.
Principal risks are regularly reviewed and
updated to reflect changing knowledge,
understanding, and risk assessment.
Risks thatmay be unknown at present, or that
are currently considered immaterial and
therefore not detailed here, may become
material in the future. SEGRO documents
emerging risks which have not yet fully
developed, acknowledging that the impact,
likelihood, and timing of these risks is difficult
toquantify. SEGRO continuously monitors
emerging risks and evaluates whether an
emerging risk should be reclassified as a
principal risk.
The principal risks currently identified by the
Group are detailed on the following pages. Each
risk description highlights potential areas of
impact on the Group and an assessment of the
residual risk. It also specifies the relevant time
horizon and probability of the risk, the key
mitigation and management activities, the
oversight Committees which act as second lines
of defence, any changes in risk levels during the
year, and links to additional information within
this Annual Report.
A summary of the Group’s principal risks is
provided below. Each risk includes commentary
on current year activity. Whilst each risk has
been reviewed on multiple occasions
throughout the year there have been no
significant changes to the definition or
assessment of the risks, compared to those
outlined in the 2024 Annual Report.
1. Macroeconomic impact on market cycle
Change in 2025:
No change
Probability:
Low
High
Impact:
Low
High
The property market is cyclical in nature and, therefore, there is a risk that the Group may
misinterpret or fail to react appropriately to changes in the property market, cost of finance or
broader macroeconomic and geopolitical conditions. This misjudgement could lead to the
adoption of an inappropriate strategy or hinder the execution of an existing strategy, ultimately
affecting property performance and shareholder value..
Mitigations
The Investment Committee, Executive Committee, and ultimately the Board continue to monitor
the property market cycle and wider macroeconomic environment. Multiple, diverse investment
and occupier market intelligence is regularly reviewed and considered, both from internal
‘on-the-ground’ sources and independent external sources.
The Group’s investment and divestment stance is adjusted in response to both current and
anticipated market conditions. The Investment Committee assesses both upside and downside
scenarios to evaluate the impact of varying market conditions and to inform our portfolio
strategy (see separate principal risk).
Current year activity
The continued uncertain economic backdrop and elevated geopolitical risk were reflected
inparallelled uncertainty in the occupational and investment market in 2025.
In light of these conditions, we have continued to perform thorough economic outlook
assessments. We have mitigated our corporate risk through an appropriate financing strategy
(see other principal risk) and ensured that the consequences for our portfolio strategy are
appropriately aligned (seeseparate principal risk). The aim of these actions is to enable us to
withstand economic shocks and take advantage of market opportunities.
Link to strategy:
Overseen by:
Executive Committee, Investment Committee
The market outlook is detailed in the ChiefExecutive’s statement: page 12
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Principal risks
Strategy key
Responsible SEGRO Disciplined capital allocation Operational excellence Efficient capital and corporate structure
2. Portfolio strategy andexecution
Change in 2025:
No change
Probability:
Low
High
Impact:
Low
High
SEGRO could have an inappropriate portfolio strategy or fail to adequately execute its strategy,
meaning the Group’s total property and/or shareholder returns could underperform in absolute
or relative terms. This could be caused by:
• incorrect or ineffective capital allocationdecisions;
• poor or incorrect market or asset level assumptions (see separate principal risk);
• inaccurate modelling or forecasting;
• lack of appropriate procedures and inadequate due diligence resulting in lengthy, onerous
orcostly transactions; and/or
• failure of due diligence.
Mitigations
The Board regularly reviews the Group’s portfolio strategy to consider the desired shape of
theportfolio. The portfolio strategy should align with the Group’s overall strategy and adapt to
market conditions. Major capital investment and disposal decisions require Board approval.
Policies are in place to govern investment activity.
The Group’s approach to capital allocation is informed by independent external assessments of
market conditions and forecasts. Locally based property, investment and operational teams
(overseen by the Managing Directors and ultimately the Chief Executive Officer) provide market
intelligence and utilise their networks to assess risks. SEGRO aims to optimally position its
portfolio in terms of location and asset type. The annual asset planning and budgeting process
provides a bottom-up assessment of the performance and potential for all existing assets,
helping to determine where to invest capital and to identify assets for disposal. Investment
hurdle rates are regularly reappraised in light of estimates of our weighted average cost of capital
and assessment of market risks.
Current year activity
The Group has maintained a disciplined and responsive approach to portfolio management,
asoutlined in the Performance review section on page 28. We have continued to review our
portfolio strategy, including data centre exposure, and ensured we have an appropriate
investment stance and hurdle rates to deliver resilience against macroeconomic uncertainty.
We have a large data centre land and power banks. We have considered how to ensure that our
strategy for these opportunities suitable manages the associated risks associated, whilst
remaining consistent with the Group’s Investment stance.
Link to strategy:
Overseen by:
Executive Committee, Investment Committee
Performance review: page 28
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Principal risks continued
Strategy key
Responsible SEGRO Disciplined capital allocation Operational excellence Efficient capital and corporate structure
3. Major event/businessdisruption
Change in 2025:
No change
Probability:
Low
High
Impact:
Low
High
There may be unexpected global, national or regional events which may include, but are not
limited to: a global financial crisis, pandemic or other healthcare failure, power and/or water
shortages, weather-related event, armed conflict or civil unrest, acts of terrorism and/or
cyberbreach (either malicious or accidental) or other IT disruption. Events may be singular
orcumulative, and lead to business disruption or impairment of the operating environment.
Thiscould result in sustained asset value or revenue damage, solvency or covenant stress,
liquidity or business continuity challenges.
Mitigations
The Group ensures its resilience against a global event and business disruption through its
financing strategy (see separate principal risk), diverse portfolio strategy (see separate principal
risk) and organisational resilience of the workforce. Where appropriate, relevant insurance is
procured and horizon scans help identify potential upcoming risk areas. The assessment of going
concern and viability is conducted through a detailed, bottom-up, Medium-Term planning
process including a business stress test and downside scenarios.
Specialist and accredited employees, ensure the resilience and security of our technology
through controls, training, testing, and audits. These activities are overseen by our Digital Board
which is the committee responsible for managing technology-related risks. We maintain robust
processes and controls for business continuity and IT disaster recovery. Additionally, we use
third-party experts who supplement our internal expertise when testing our resilience to cyber
attacks and are ready to support us, as required, during the management of a crisis.
Current year activity
In 2025, geopolitical instability continued, and therefore the Group’s operations and stakeholders
are still experiencing uncertainty. The Group maintained its robust financing and portfolio strategy,
ensuring flexibility and preparedness for major events and business disruptions. The Board and
other Committees remained vigilant and actively managed risk responses as situations evolved.
The business continuity plan continued to operate successfully with a major incident management
plan feeding into individual local and incident-specific management plans. Theannualasset
planning process reviewed any areas of weakness in the portfolio and had associated plans to
rectify them.
Our cyber breach response plan was reviewed and enhanced during 2025. We continue regular
training for, and testing of, employees including phishing tests and education on AI chatbots.
Link to strategy:
Overseen by:
Executive Committee, Digital Board
The market outlook is detailed in the
ChiefExecutive’s statement: page 12
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Principal risks continued
Strategy key
Responsible SEGRO Disciplined capital allocation Operational excellence Efficient capital and corporate structure
4. Health and safety
Change in 2025:
No change
Probability:
Low
High
Impact:
Low
High
A health and safety incident may occur which involves harm to individuals or loss of life. This may
be associated with the failure of Health and Safety Management Systems, failure of a building or
other physical asset, or negligence of a third party. Furthermore, the Group may breach relevant
legislation or fail to provide suitable employee support. The consequences may be a negative
impact on employees and/or other stakeholders, litigation, fines, and serious reputational damage.
Mitigations
A Health and Safety Policy and Management System are in place, and best practice is reviewed
with the Health and Safety Working Group. The Health and Safety Management System includes
specific mandatory procedures covering operational and work activities. The working group
continuously monitors health andsafety practices, including incidents, inspections, and training
across the business. Legal guidance and additional support are provided by local health and
safety consultants and lawyers, who offer regulatory assurance alongside our internal expertise.
We facilitate the sharing of best practice across the industry though our forums with contractors.
Construction monitoring activities continue with our contracted external consultants in
eachcountry through in-person development inspections, and SEGRO support, including
contributions to training where requested. Incidents and inspections are tracked across the
Group on the Health and Safety Management System. SEGRO maintains a zero-tolerance
approach to poor health and safety practices and collaborates with health and safety consultants
to enhance understanding and implementation of SEGRO’s requirements. We require all our
suppliers to confirm that they meet our Health and Safety Standards.
The Health and Safety Management System is supported by site inspections of existing
andpotential new assets, as part of proactive management, and development project
inspections in line with SEGRO’s Health and Safety Construction Standards. In relation to our
estates, many of which are accessed by both our customers and the public, we carefully
consider the design, take action to mitigate risks and provide training to raise awareness.
Current year activity
We further developed our employee training programme, virtually and in person, with our
training partners aswell as issuing specific communications in relation to incidents or learnings.
The health and safety team ensured that employees throughout the Group remained
knowledgeable on current and future health and safety legislative changes. Routine monthly
health and safety reporting to internal operational, technical and leadership teams, allows them,
with the health and safety team, to respond to feedback and experiences, for example working at
height activities, as well as reviewing specific practices and controls where required.
Link to strategy:
Overseen by:
Executive Committee, Joint Operating Group
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Principal risks continued
Strategy key
Responsible SEGRO Disciplined capital allocation Operational excellence Efficient capital and corporate structure
5. Environmental sustainability and climate change
Change in 2025:
No change
Probability:
Low
High
Impact:
Low
High
Failure to adequately anticipate and/or respond to the impact of climate change or lack
ofpreparation for environmental risks and regulation. This could relate to:
• increased severity and unpredictability of weather-related events leading to more frequent
damage toour buildings;
• changes in laws, regulations, policies, taxation, andreporting requirements; and/or
• changes in social attitudes and customer requirements whereby SEGRO is required to alter the
design and build of properties and/or energy provision to buildings and/or commitments
toclimate change mitigationinitiatives.
These risks may result in increased and/or unplanned financial costs to SEGRO, disruption to our
customers, legal and/or regulatory non-compliance and negative reputational effects reduced
demand for our properties and reduced competitiveness.
Climate-related risks, their time horizon and their management and mitigation are detailed
further onpages 52 and 53.
Mitigations
The Responsible SEGRO framework guides our efforts to reduce corporate, customer,
andembodied carbon emissions. The sustainability team updates the Executive Committee
mostmonths and the Board annually.
SEGRO’s Mandatory Sustainability Policy is one of the methods used to support continuous
improvement of its environmental performance. It includes amongst other requirements,
capturing energy consumption data, implementing building information modelling and
conducting life cycle assessment for larger developments, adhering to minimum EPC standards
for major refurbishments, and supporting the delivery of renewable energy.
Our sustainability team supports the Group and local teams with data gathering and
understanding legal and regulatory requirements, as well as sharing best practice and guidance
from external advisers overseeing compliance with the Mandatory Sustainability Policy.
Current year activity
We have worked with a third-party to further develop our Net-Zero Transition Plan. The Executive
Committee has approved a new set of GHG reduction targets which were validated by the SBTi
July 2025.
We are monitoring the development of the Energy Performance in Buildings Directive Recast
2024 which sets mandatory standards to improve energy efficiency in EU buildings and is
currently applicable in our European markets. In 2025 our physical climate risk report was
published and models the effects of the physical risks toourportfolio.
During the year, we have established an ESG Governance Committee. The Committee formally
meets at least four times a year to govern the Company’s ESG disclosure and reporting, and
determine the process for setting ESG targets.
Environmental considerations continued to be a key factor in asset acquisition and disposal
decision making, developments and refurbishment decisions.
See page 53 for details of further actions during 2025.
Link to strategy:
Overseen by:
Executive Committee, Joint Operating Group
Responsible SEGRO, Carbon climate related
disclosures: page 48
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Principal risks continued
Strategy key
Responsible SEGRO Disciplined capital allocation Operational excellence Efficient capital and corporate structure
6. Development and construction execution
Change in 2025:
No change
Probability:
Low
High
Impact:
Low
High
SEGRO has an extensive current programme and future pipeline of developments. Thestrategy
and execution of this brings the following risks:
• above-appetite exposure to non-income producing assets;
• below-appetite land holdings or development activity;
• inaccurate appraisal assumptions or poor acquisition due diligence;
• contractor default or poor performance;
• exposure to direct or indirect supply chain issues; and/or
• defective or deleterious materials in buildings.
This could result in increased costs and delays, reduced property returns, loss or limitations
ofbuilding use, legal and/or regulatory non-compliance, reputational damage, fines and loss
ofshareholder confidence.
Mitigations
We closely monitor our exposure to non-income producing assets (including land, infrastructure,
and speculative developments), especially when acquisition decisions are being made by the
Investment Committee. The key stages of transactions require appropriate approvals as set out
in our relevant policies..
Our development programme prioritises pre-let opportunities, particularly for our big box
projects. We retain a high level of optionality in our future development programme, including
land acquisition, and commitment to infrastructure and buildings. The risk of cost overruns or
supply chain issues is, at least in part, mitigated by using our experienced development teams
and a panel of trusted advisers and contractors, and typically using fixed price contracts where
commercially appropriate to do so. Collaboration with contractors and ongoing communication
helps to identify potential issues and possible solutions ahead of time.
The risk of contractor default is reduced (but not entirely mitigated) by using a diverse group
ofcompanies, which we often have a long-standing relationship with, and which have been
through a rigorous onboarding process including continuous close monitoring of their
financialstrength.
Development and construction oversight is overseen internally by the Construction
SteeringCommittee which includes senior managers responsible for the associated risks.
TheConstruction Steering Committee coordinates with the health and safety team to
managechallenges such as defective or deleterious materials in buildings. Internal forums
withrepresentatives from local technical development teams meet regularly to discuss best
practice, and other relevant updates, reporting in to the Construction Steering Committee.
Additionally, the partnership development team engages with stakeholders as part of SEGRO’s
social responsibilities and supports planning processes. We have specialist internal expertise
related to the commercial, technical and regulatory aspects of power to ensure we can secure
the right power, in the right place, at the right time to meet our customers’ demands.
Current year activity
In light of the ongoing variability in market conditions, we have continued to monitor the
valueofland holdings, looking for optionality where possible. We have worked closely and
inpartnership with our contractors and are still making use of lump sum contracts while we
closely monitor market intelligence. We have continued to investigate ways to drive best value
from costs with input from our technical teams in the UK and Continental Europe, to ensure
SEGRO remains competitive.
Link to strategy:
Overseen by:
Executive Committee, Investment Committee,
Joint Operating Group
Development update: pages 33 and 34
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Principal risks continued
Strategy key
Responsible SEGRO Disciplined capital allocation Operational excellence Efficient capital and corporate structure
7. Financing strategy
Change in 2025:
No change
Probability:
Low
High
Impact:
Low
High
The Group could suffer an acute liquidity or solvency crisis caused by a failure in design
orexecution of its financing strategy. Such an event may be caused by a number of
factorsincluding:
• a failure to obtain debt or equity funding (for example, due to market disruption or
ratingdowngrade);
• having an inappropriate debt structure (including leverage level, debt maturity, interest rate
orcurrency exposure);
• poor forecasting;
• defaulting on loan agreements as a result of a breach of financial or other covenants; and/or
• counterparty default.
This could result in an inability for SEGRO to finance its strategy, and financial loss
orfinancialdistress.
Mitigations
The Treasury strategy is reviewed annually by the Board and the quarterly report is reviewed by the
Executive Committee to ensure our key risk metrics are reviewed regularly. The Group’s financing
strategy is consistent with the Group’s risk appetite, and overarching strategy. Our Group Treasury
policy outlines key parameters and comprehensive controls to ensure effective execution of this
strategy. The Group periodically assesses its financing needs based on opportunities and market
conditions and maintains long-term relationships with various finance providers.
Current year activity
The Group holds a significant presence across various capital markets including euro bond,
sterling bond and US private placements. SELP also holds a significant presence in the euro
bondmarket. We continue to be advised by our lending banks and corporate brokers that we
can currently access all debt markets. Liquidity remains strong due to the facilities put in place
and there is substantial headroom against all our financial covenants. This positions us well
financially in order to support activities aligned with our strategy. Furthermore, the Group
continues to utilise fixed rate debt and pertinent derivatives to mitigate the risk of rising
interestrates both currently and in the future.
Link to strategy:
Overseen by:
Executive Committee
Financial review: page 39
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Principal risks continued
Strategy key
Responsible SEGRO Disciplined capital allocation Operational excellence Efficient capital and corporate structure
8. Legal, political andregulatory
Change in 2025:
No change
Probability:
Low
High
Impact:
Low
High
The Group could fail to comply with laws, regulations, governance obligations or contractual
obligations (including in respect of joint ventures), which are applicable now, or may become
applicable in the future. Such failures could lead to material litigation, censure, penalties and
fines, reputational damage, damage to relationships with stakeholders (including joint venture
partners), and loss of stakeholder confidence. It could also impact the Company’s REIT and SIIC
status and damage relationships with tax authorities.
Compliance with future new laws and/or regulations introduced by governments in the countries
in which the Company operates could potentially impact the business and its ability to achieve
its strategic objectives.
A lack of employee awareness of the obligations which apply to the Company, as well as its
culture may lead to an increased risk of unethical, fraudulent and/or unacceptable behaviour
including breaches of the Code of Business Conduct and Ethics and other key policies.
Mitigations
Internal legal and company secretariat experts continue to monitor developments in the legal,
governance and regulatory environment, together with their colleagues in other specialist
internal teams. The Company appoints well-reputed and high-quality external advisers to help
itmanage and monitor this further, with heads of functions regularly consulting with external
advisers, attending relevant briefings, and participating as members of key industry bodies.
Compliance with key contracts, including joint venture agreements, is handled by SEGRO’s
legalteam with support from specialist colleagues. Comprehensive governance and compliance
structures, and other management manuals, are in place as required. The Company also closely
monitors taxation regulations with advisers to promptly address any changes affecting the
Group or its stakeholders. SEGRO’s experienced internal tax team manages the Group’s tax
compliance, and REIT and SIIC compliance is reviewed bi-annually.
All relevant employees are required to confirm compliance with the Code of Business Conduct
and Ethics each year which includes a confirmation that they are not aware of any breaches
orinappropriate behaviour having taken place. All new employees are required to carry out
mandatory training on various aspects of the Code of Business Conduct and Ethics and targeted
training is also delivered where appropriate. Our Supplier Code of Conduct also reinforces the
high ethical behaviour we expect from suppliers and those working with us.
The Executive Committee regularly considers legal and regulatory risks and significant legal and
regulatory updates or changes are communicated to the Board and its Committees (as relevant),
where they are further considered, as soon asis appropriate.
Current year activity
The legal and regulatory environment continues to be dynamic with increasing laws and
regulations, together with an ongoing strong stance taken on enforcement by governments
andregulators. Tax risk also remains highdue to changes in governmental policy. SEGRO
continues to complete actual and forecastcompliance tests for REIT and SIIC compliance.
A tougher economic environment increases the risk of unethical behaviour. We have robust
processes and procedures in place to mitigate against this. We continue to raise awareness
ofthe obligations of employees set out in the Code of Business Conduct and Ethics, as well
asour suppliers through our supplier screening programme, supplier interviews and the
SupplierCode of Conduct which further reinforces the behaviour expected from suppliers
andthose working for the Company. Further detail on the Code of Business Conduct and
Ethics,which was updated during the year, is on page 80 of the Governance Report.
Link to strategy:
Overseen by:
Executive Committee
Our governance framework: page 81
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Principal risks continued
Strategy key
Responsible SEGRO Disciplined capital allocation Operational excellence Efficient capital and corporate structure
9. People and talent
Change in 2025:
No change
Probability:
Low
High
Impact:
Low
High
SEGRO could fail to deliver its strategy because of:
• a failure to attract, retain, or develop the diverse talent needed;
• insufficient leadership strength or succession depth for critical roles;
• declines in engagement or cultural alignment that could impact performance; and/or
• organisational structures or skills that do not evolve quickly enough to support
strategicpriorities.
This could be associated with inappropriate or ineffective people policies and processes and
could lead to a less productive workforce, lower performance, higher employee turnover,
weakculture, inefficient cost base or unclear structure, responsibilities and roles.
Mitigations
SEGRO has a strong people and culture framework designed to build capacity, support
engagement and maintain organisational agility. Our forward-looking organisational design
andcapability reviews ensure teams are appropriately structured and skilled. Regular reviews
bythe Executive Committee and the Board creates strong pipelines for critical roles and
effectively manages key person risk. Continuous development, succession and retention
planning, is supported by active performance management and engagement insights.
Competitive, market-tested reward structures and flexible incentive tools help attract and
retainhigh-quality talent, including annual benchmarking of compensation with independent
third-party advisers, overseen by the Remuneration Committee. Ongoing programmes
strengthen our inclusive, Values-led culture and support high levels of employee engagement.
Current year activity
During 2025, we maintained organisational stability, including leadership transitions such asthe
appointment of a new CFO, with voluntary attrition remaining low. We continued toinvest in
critical capabilities, adding additional strength in data centres, energy and digital, ensuring we
are well positioned to deliver our strategy. Dynamic and ongoing reviews of our organisational
design and people capabilities ensure resources align with business needs and cost efficiency.
We completed performance, development, succession and retention planning, supported
byemployee engagement surveys to monitor sentiment and inform action, ensuringthat
wearenurturing our internal talent and continuing to strengthen our culture
andorganisationaleffectiveness.
Link to strategy:
Overseen by:
Executive Committee
Nurturing talent section: page 25
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Principal risks continued
Strategy key
Responsible SEGRO Disciplined capital allocation Operational excellence Efficient capital and corporate structure
10. Operational delivery
Change in 2025:
No change
Probability:
Low
High
Impact:
Low
High
The Group may experience operational failures such as:
• poor customer insight and retention or increased level of customer defaults;
• fraud, error or disruption of treasury operations;
• inaccurate, misleading or delayed valuation or tax reporting;
• inaccurate, unavailable or incomplete data including lease data and/or;
• errors in lease terms or execution.
These issues could lead to various adverse effects, including weaker customer demand and
relationships, reputational damage, regulatory censure or fines, additional and unplanned costs,
reduced income and property valuation, illiquidity, misinformed strategic decisions and missed
opportunities. Overall, this could increase SEGRO’s costs, reduce competitiveness and damage
its reputation.
Mitigations
The Group is dedicated to maintaining a high standard of Operational excellence. The Executive
Committee and Joint Operating Group consistently monitor various risks associated with
property management, organisational effectiveness, and customer relations.
Each operational area is supervised by a skilled central team and often also by regional team
members. Weuse reputable external experts to advise us and receive market insights. We
maintain close relationships with our customers to understand their needs and their risks
including relating tocovenant reviews.
Our internal teams are also supported by bespoke technology tools, which are usually internal
togovern the process associated with operational delivery.
We ensure that our customer base is diverse and wherever possible, possesses financial stability,
which we monitor closely along with customer concentration metrics. We undertake an annual
customer satisfaction survey and conduct interviews with senior customer stakeholders to
facilitate the identification of key customer requirements.
Current year activity
We continue to prioritise close engagement with our customers and especially focus on
customer activities, as well as continually assessing the risks associated with customer
concentration andmonitoring with the use of updated reporting which is accessible Group-wide.
The approval for leases, as required in the leasing policy, is now integrated into SEGRO’s
automated letting recommendation tool. The SEGRO Asset Management Application, is a
workflow tool to enhance oversight and monitoring of leases. It is now in place in all regions and
helps teams to review and manage lease events. These tools increase efficiency, consistency
andcontrol.
The Group valuation is currently undertaken bi-annually by CBRE, which is considered
reputableand independent. Following the RICS changes to mandatory rotation rules in the
UK,we retendered the UK valuation during the year, and approved the appointment of
Cushman&Wakefield as SEGRO’s UK valuers with effect from the June 2026 half-year valuation.
CBRE remains the valuer of the Continental European portfolio.
Link to strategy:
Overseen by:
Executive Committee, Joint Operating Group
Performance review: page 28
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Principal risks continued
Strategy key
Responsible SEGRO Disciplined capital allocation Operational excellence Efficient capital and corporate structure
Governance
Governance Report 69
Chair’s introduction to governance 70
Governance at a glance 72
Board leadership and Company
purpose 74
Division of responsibilities 81
Section 172(1) statement 82
Our stakeholders 84
Board performance review 90
Nomination Committee Report 92
Audit Committee Report 98
Directors’ Remuneration Report 106
Directors’ Report 125
Statement of Directors’ responsibilities
in respect of Financial Statements 127
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SEGRO Logistics Park Northampton,
Management Suite, UK
Delivering our
strategy
As Chair of SEGRO, I am
pleasedto introduce our
Board’s Governance Report
for 2025.
Our well-established
governance framework
remainsrobust and
continues tounderpin the
Board’s decisions that drive
the Company’s long-term
sustainable success.
Andy Harrison,
Chair
Governance and our strategy
2025 saw the Company operating in a complex
and evolving external environment, shaped
bymacro and geopolitical uncertainty.
Theseconditions informed many of the Board’s
discussions during the year, with careful
consideration given to their implications for the
business, our stakeholders and the Company’s
long-term positioning.
Against this complicated backdrop, the
Company has delivered a year of successful
operational and financial performance. This
outcome is a testament to the strength and
resilience of our portfolio, the clarity of our
strategic direction and the dedication of our
talented people. Our robust governance
framework supported the Board’s oversight
throughout the year, ensuring informed
decisions were made with a view to driving the
long-term sustainable success of the Company.
As well as the ongoing advice the Board
provided on the Company’s strategy, and its
governance oversight, you can read about some
of the key decisions made in 2025 on page 77.
Board skills
During the period, and following feedback given
during the 2024 external Board performance
review, we approved an updated Board skills
matrix to ensure the Board has an appropriate
balance of skills to operate effectively now and
in the future. You can read about the updated
Board skills matrix on page 94.
Internal Board performance review
The internal Board performance review carried
out in 2025 confirmed that the Board and its
Committees continued to operate effectively.
You can find further detail on the review on
pages 90 and 91.
Nurturing talent
Succession planning and talent development for
the Board and senior management, to ensure
that there remains a strong leadership pipeline,
continue to be key areas of focus for the Board.
During the year, the Board spent time reviewing
the people strategy for retaining, developing
and attracting the best talent across the
organisation and driving diversity, inclusion
andequal opportunity within the business.
Further information on succession planning
canbe found in the Nomination Committee
Report on pages 92, 93 and 95.
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Chair’s introduction to governance
Nurturing talent continued
As part of our wider stakeholder engagement
programme, the Non-Executive Directors once
again held a number of sessions with a cross-
section of employees from across the business
to gain a first-hand insight into the issues that
matter most to our people.
Board changes
Susanne Schroeter joined the Company as an
Executive Director and Chief Financial Officer
on1 December 2025. She brings with her a
wealth of financial and pan-European business
expertise, adding further perspective to Board
discussions. Please join me in giving her a warm
welcome. You can read more about the process
to appoint Susanne on page 97.
Susanne succeeds Soumen Das, who stepped
down from his role as an Executive Director and
Chief Financial Officer on 31 December 2025.
On behalf of the Board, I would like to thank
Soumen for his commitment and valuable
contribution to both the Company and the
Board throughout his time at SEGRO.
As announced on 9 February 2026, I am also
pleased to welcome Louisa Burdett as a
Non-Executive Director from 1 May 2026.
Louisahas worked in a number of senior
financial roles throughout her career. Her
extensive financial and risk management
experience will be of benefit to the Company
and I, and my Board colleagues, are looking
forward to working with her.
Other stakeholder engagement
The Board remains committed to balancing
theinterests of all SEGRO stakeholders in
itsdecision making and acknowledges its
responsibilities to the wider community.
You can find our Section 172 statement,
alongwith details on how the Board interacts
with each of our six stakeholder groups, on
pages 82 to 89.
Each year we invite our larger shareholders
tomeet with myself, the Senior Independent
Director, and/or the Committee Chairs. In 2025,
Iwelcomed the opportunity to engage in
productive discussions with some of these
shareholders, gaining valuable insight into the
matters most important to them and their
perspectives on SEGRO.
As you can read further about in the Directors’
Remuneration Report on page 106 to 124, Simon
Fraser, our Remuneration Committee Chair,
wrote to our larger shareholders towards the
end of 2025 to explain certain changes made to
our Long Term Incentive Plan (LTIP) for2026. He
welcomed the opportunity to engage with
shareholders on this topic.
As always, we will continue to foster open and
constructive dialogue with our shareholders
throughout 2026, ensuring that any feedback
isshared with the Board as a whole and
considered in decision making.
Annual General Meeting (AGM)
On behalf of the Board, I would like to extend
mythanks to those shareholders who attended
the AGM in April 2025, where our Chief
Executive delivered a presentation on SEGRO’s
performance in 2024 and the early part of 2025.
All shareholders received communications
forthe AGM at least 20 working days in
advanceof the meeting and were invited to
askquestions, either in the room or by email
ahead of the meeting. The other Directors and
Iwere also available to meet with attendees
informally, both before and after the meeting,
and we look forward to doing so again at
thisyear’s AGM which will take place on
23April2026 at RSAHouse, where all
Directorswill stand for election or re-election.
The Company proposes separate resolutions
oneach substantially separate issue, with
votingconducted by a poll. At the 2025 AGM,
82per cent of the issued share capital voted
(2024: 80 per cent) and all the proposed
resolutions were passed.
Following the meeting, the results of votes
lodged for and against each resolution were
announced to the London Stock Exchange
andpublished on our website.
Thank you
Finally, I would like to express my thanks to all
our employees for their dedication and efforts
over the past year. I am equally thankful to
myfellow Board members for their insight,
stewardship, and ongoing support of SEGRO.
Andy Harrison
Chair
Statement of compliance
The UK Corporate Governance Code 2024
(the Code) is the key governance guidance
to which we referred during the financial
year to 31 December 2025. It can be found
in full on the Financial Reporting Council’s
(FRC) website at www.frc.org.uk.
The Board considers that, throughout the
year, it has complied with the Provisions
ofthe Code in all respects.
Details on how we have complied with
theProvisions and applied the Principles
asset out in the Code are outlined in
thisAnnual Report.
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Chair’s introduction to governance continued
SEGRO Annual General Meeting, 2025, UK
At a glance
The Board’s composition
supports effective leadership
and independent oversight,
witha strong gender balance,
mix of backgrounds and a
balanced range of tenures;
combining continuity with
freshperspective to support
robustchallenge, informed
decision making and long-term
sustainable success.
Board composition
• The Directors collectively have a
complementary mix of skills, experience and
sector knowledge to support the Company’s
long-term strategy.
• The Board’s composition reflects an
appropriate balance between continuity and
refreshment, with a range of tenures that
support both institutional knowledge and
independent challenge. Director tenure is kept
under regular review as part of the Board’s
succession planning and annual Board
performance review.
• The Board benefits from a strong level of
gender balance, supporting a diversity of
perspectives and inclusive decision making.
The Company remains committed to
maintaining appropriate balance over time
through its approach to succession planning
and Board refreshment.
Strategy key
Responsible SEGRO
Disciplined capital allocation
Operational excellence
Efficient capital and corporate structure
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Governance at a glance
l
Male
4
l
Female
5
Gender
l
Executive
Directors
2
l
Independent
Non-Executive
Directors
6
Independence
(excluding
the Chair)
l
British
8
l
Non-British
1
Nationality
l
White
8
l
Asian/AsianBritish
1
Our Board
composition
1
l
1st term
(0–3 years)
1
l
2nd term
(3–6 years)
3
l
3rd term
(6–9 years)
3
Non-Executive
Directors’
tenure
Ethnicity
Skills that enablelastingimpact
All Directors appear in more than one category, and were marked on a grading scale from zero to three for each category. The maximum score for each category is 27.
Link to strategy
23
15
14
22
19
17
20
19
11
22
FTSE Listed Experience
Customer (eg. commercial
experience from another industry)
Commercial Real Estate
Investment or Management
International Business/Markets
Finance/Accounting/Audit
Corporate Finance/M&A/Investment Banking
Investment/Capital Allocation
Remuneration
Digital/Data/Cyber Security
Chairing/Committee Chair
1 Figures do not include Soumen Das, who retired from the Board on 31 December 2025. Susanne Schroeter, who was appointed to the Board on 1 December 2025, is included.
Strategic Delivery, Extraordinary Outcomes
The Board Committees
support our governance
framework by providing
focused oversight and
independent challenge.
Byapplying specialist
expertise and rigorous
scrutiny to key areas of
thebusiness, they enhance
theBoard’s decision
making, strategic focus,
and overalleffectiveness.
Nomination
Committee
Our Nomination Committee
ensures that we have a
strong Board with a good
balance of appropriate skills,
experience and knowledge,
delivering strong
governance and effective
succession planning.
Read more in the Nomination Committee
Report from page 92
Audit
Committee
Our Audit Committee
monitors the integrity of
theFinancial Statements,
reviews internal controls
andrisk management
systems, and oversees
theinternal and external
audit processes.
Read more in the Audit Committee
Report from page 98
Remuneration
Committee
Our Remuneration
Committee determines
theRemuneration Policy
which aims to incentivise
strong performance
whilstavoiding excessive
risk taking.
Read more in the Directors’ Remuneration
Reportfrom page 106
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Governance at a glance continued
Board of Directors
Our Board is made up
oftalented individuals,
witha depth of commercial
experience from a range
ofindustries.
This diversity ofthought helps create an
effective and entrepreneurial Board as each
member has a fresh perspective to bring to
discussions, supporting our ambition ‘to be
thebest property company’.
Our Independent Non-Executive Directors
bringindependent judgement and scrutiny
tothe decisions taken by the Board.
Theymonitor the success of management
indelivering the agreed strategy within
theriskappetite and control framework set
bythe Board and hold the Executive Directors
toaccount against these objectives.
Committee key
Audit Committee member
Nomination Committee member
Remuneration Committee member
Chair of Committee
See the Governance Framework on page 81 for the roles
and responsibilities of the Chair, Chief Executive and
Senior Independent Director.
* Denotes a publicly listed appointment.
Andy Harrison
Chair
Appointed: 1 April 2022 (Chair from 30June2022)
Skills and experience
Andy is an experienced Chair having held the
positionat Dunelm Group plc for over seven years.
Heis the former CEO of threelarge consumer-facing
organisations, Whitbread, easyJet and RAC, which all
have strong service offerings. His leadership, business
understanding and insights have proven to be valuable
additions to theboardroom.
Contribution to SEGRO’s long-term success
With over 35 years’ experience serving on the boards
oflisted companies, during varying economic
conditions, Andy is well qualified to lead SEGRO’s
Board to deliver our ambitious plans for profitable
growth. His Board colleagues consider him to be an
effective Chair, with his thoughtful leadership style
facilitating an open and collaborative environment
amongst the Directors which, in turn, encourages
constructive challenge anddebate.
David Sleath OBE
Chief Executive
Appointed: 1 January 2006 (Chief Executive
from28April 2011; Group Finance Director
from1January 2006 to28 April 2011)
Skills and experience
David has considerable board-level experience of
listedcompanies and has extensive knowledge of the
real estate, manufacturing anddistribution sectors and
the Company. His financial and general management
experience has helped lead the successful design
andimplementation of the Company’s strategy
duringhis tenure as Chief Executive.
David is a Fellow of the Institute of Chartered
Accountants in England and Wales.
Contribution to SEGRO’s long-term success
As Finance Director, David was a key member of the
management team which navigated SEGRO through the
global financial crisis, swiftly followed by the acquisition of
Brixtonwhose London-centric portfolio complemented
and enhanced SEGRO’s own. As Chief Executive, he
initiated a wide-ranging strategic review in 2011 involving
reshaping both the portfolio and the business to create a
platform for long-term success, with a particular focus on
performance, culture, and sustainability. This review laid
the foundation for SEGRO to become the largestUK REIT
by market capitalisation and a long standing constituent
ofthe FTSE 100 index. Outside SEGRO, his role as a
Non-Executive Director at RS Group plc provides valuable
insight into the opportunities and challenges within a
global, digitally-focused, distribution business, while his
involvement with theEPRA Board and as a member of the
BPF Policy Steering Group provides insights into, and the
ability to influence, two important tradeassociations.
External appointments
• Senior Independent Non-Executive Director, RS
Group plc*
• Board member, European Public Real
EstateAssociation
Susanne Schroeter
Chief Financial Officer
Appointed: 1 December 2025
Skills and experience
Susanne has extensive finance experience and
strongpan-European business expertise, with deep
knowledge of financial markets, real estate, logistics,
online retail, and digital transformation. She has held
senior leadership roles across the UK, Germany, and
Hong Kong, including Chief Financial Officer roles at
sennder Technologies GmbH and LEG Immobilien.
Shehas also held senior capital markets roles at
Deutsche Bank, Morgan Stanley, and Standard
Chartered, providing her with a deep understanding
offinancing markets.
Contribution to SEGRO’s long-term success
Susanne brings a broad mix of financial, banking and
capital markets expertise, combined with first hand
experience in the real estate, logistics and online
retailing sectors. Her insights gained from working
withdata-driven companies within sectors that
benefitfrom long-term structural trends supports the
Company’s commitment to delivering sustainable,
value-driven growth. This breadth of knowledge
andexperience, together with her international
perspective gained from senior roles in Europe
andAsia, brings invaluable insight to Board
discussionsand strategic decisions.
External appointments
• Non-Executive Director, Supervisory Board Member,
Zalando SE*
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Board leadership and Company purpose
Mary Barnard
Independent Non-Executive Director
Appointed: 1 March 2019
Skills and experience
Mary has extensive commercial and general
management experience and a deep understanding
ofcustomer needs and trends through her various
international roles in sales and marketing. She has a
strong knowledge of the operation of the retail market
and supply chain. In addition, she is currently leading
amajor global digital transformation, including
implementing new digital technologies, data strategy
and AI capabilities, with insights which are of benefit to
SEGRO.
Contribution to SEGRO’s long-term success
Mary has first-hand experience of international retail
markets and customer trends, as well as rapidly
evolving digital and data trends, and often shares her
observations at Board meetings which helps to set the
scene on global market sentiment. This provides useful
insight into some of the key drivers which may impact
our customers, allowing the Board to be mindful
ofthem in its decision making.
External appointments
• Executive Vice President, Business Transformation,
Mondelez International Inc*
Sue Clayton
Independent Non-Executive Director
Appointed: 1 June 2018
Skills and experience
Sue brings a wealth of property market knowledge
tothe Board, with over 30 years of experience in
property investment markets, having worked in the
UKcommercial property market for her whole career.
She is active inpromoting diversity in the Real Estate
industry including through her former role as the
Chairof Women’s Network at CBRE and as co-founder
of Real Estate Balance.
Sue is a Fellow of the Royal Institute of Chartered
Surveyors (FRICS).
Contribution to SEGRO’s long-term success
Sue’s real estate expertise brings an additional
viewpoint to discussions on the industry,
complementing the experience ofthe Executive
Directors, and she also provides constructive challenge
on the valuation of the property portfolio.
Her passion for promoting diversity in the Real Estate
industry echos the ambitions of the Company’s
Nurturing talent framework and both the Board and
theNomination Committee benefit from her insights
onthis important topic.
External appointments
• Consultant, Blue Coast Capital
Carol Fairweather
Senior Independent Non-Executive
DirectorDirector
Appointed: 1 January 2018 (Senior Independent
Non-Executive Director from 1July 2023)
Skills and experience
Carol has recent and relevant finance experience and
brings commercial knowledge to the Board. Her prior
experience as Chief Financial Officer of the retailer
Burberry Group is valuable to the Company in her
understanding of retail and digital commerce trends.
Carol is a Fellow of the Institute of Chartered
Accountants in England andWales.
Contribution to SEGRO’s long-term success
Carol’s financial expertise and understanding
oftheimportance of goodgovernance are integral
toherrole as Chairof the Audit Committee.
Underherleadership, the Audit Committee provides
comfort for our shareholders and other stakeholders
byensuring thatthere is robust oversight of the
internalcontrol framework and effective processes
andcontrols inplace to safeguard the integrity
oftheFinancialStatements.
External appointments
• Non-Executive Director, Smurfit Westrock plc*
Simon Fraser
Independent Non-Executive Director
Appointed: 1 May 2021
Skills and experience
Simon has extensive knowledge of workingon
remuneration committees, having previously chaired
the remuneration committees at Derwent London and
Lancashire Holdings. He is a former investment banker
with a wealth of financial experience, having spent
themajority of his career with Bank of America Merrill
Lynch where he was appointed Managing Director and
Co-Head of the Corporate Broking division in 2004.
Contribution to SEGRO’s long-term success
Board discussions benefit from Simon’s extensive
knowledge of financial marketsand his perspective
hasbeen particularlyuseful during this period
ofmacroeconomic challenge.
He has led the Remuneration Committee indelivering
an appropriate remuneration framework for Executive
Directors and the wider workforce, which is designed
with the views of our key stakeholders in mind,
whilstalso aligning with our Purpose and Values
andaiming to promote the long-term sustainable
success of theCompany.
External appointments
• Senior Independent Non-Executive Director,
StJames’s Place plc*
• Chair, Grainger plc*
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Board leadership and Company purpose continued
Marcus Sperber
Independent Non-Executive Director
Appointed: 1 May 2024
Skills and experience
Having worked in the sector for over 30years,
Marcusbrings with him vast experience of the real
estate industry inboth the UK and Continental Europe.
Hehas held a number of senior executive roles
throughout his career, including, mostlatterly,
Managing Director and Headof Global Real Estate
atBlackRock, and has served on a number of
industrycommittees.
He is the Founder of NorthCroft Capital, areal estate
investment and advisory business, where he provides
strategic business advice to institutional capital
andreal estate businesses.
Marcus is a Fellow of the Royal Institution
ofCharteredSurveyors (FRICS).
Contribution to SEGRO’s long-term success
Throughout his career, Marcus has experienced
first-hand the varying economic cycles of the property
sector, and this, combined with his extensive real
estate and investment knowledge more generally
brings invaluable insight to Boarddiscussions.
External appointments
• Founder, NorthCroft Capital
• Non-Executive Director, Cadillac Fairview
PropertyTrust (the Canadian pension plan
OTPP’sreal estatearm)
• Non-Executive Director, Savills plc*
• Chair, Jewish Care (Registered Charity)
Linda Yueh CBE
Independent Non-Executive Director
Appointed: 1 May 2021
Skills and experience
Linda brings a broad range of skills to theBoard,
including robust commercial experience and a strong
background in economics, as a Fellow in Economics
atStEdmund Hall, Oxford University and Adjunct
Professor of Economics at London Business School.
Contribution to SEGRO’s long-term success
Linda regularly draws on her wealth of knowledge
ofinternational markets, the macroeconomic context,
and global, economic trends, both past and present,
toshape Board discussions. Her perspective helps the
Board to keep one eye on the horizon by applying
learnings from past trends to the current environment.
Through her role chairing a sustainability committee, she
brings another perspective to the ESG considerations
which are embedded in the Board’s decision making
and help guide our Responsible SEGRO strategy.
External appointments
• Non-Executive Director, Standard Chartered PLC*
• Non-Executive Director, Rentokil Initial plc*
• Chair, Baillie Gifford’s The Schiehallion Fund Ltd*
• Advisory Board Member, Greene King Limited
Role of the Board
The Board’s primary responsibility is to provide overall leadership of the Company and to promote its long-term
sustainable success, generating value for shareholders and contributing to wider society.
It sets the Company’s strategic aims and ensures that it operates within a framework of prudent and effective
controls which enable risks to be assessed and managed. It makes certain that the necessary financial and human
resources are in place for the Company to meet its objectives.
Further, the Board ensures that there is effective engagement with shareholders and other key stakeholders
inorder for the Directors to satisfy their obligations under section 172(1) of the Companies Act 2006, as detailed
onpage 82. The work of the Board complements, enhances and supports the work of the Executive Committee,
inparticular in respect of the Company’s culture, and its Purpose and Values.
Effective and efficient functioning of the Board
During 2025, there were seven scheduled Board meetings.
Each Director has committed to attend all scheduled Board and Committee meetings, and would not do so only
inexceptional circumstances. This is kept under review to ensure that Directors are fulfilling their commitments
tothe Company. Similarly, every effort is made by Directors to attend any ad hoc meetings or working sessions.
On the rare occasion that aDirector cannot attend a meeting they are still provided with the papers in advance
ofthe meeting and are given an opportunity to discuss them with the Chair or Chief Executive.
The Board has the flexibility to meet in person or virtually as the need arises, including on an ad hoc basis.
Attendance at scheduled Board and Committee meetings
Board
Audit
Committee
Nomination
Committee
Remuneration
Committee AGM
Director
Mary Barnard
7/7 4/4 3/3 1/1
Sue Clayton
7/7 3/3 4/4 3/3 1/1
Soumen Das
1
7/7 1/1
Carol Fairweather
7/7 3/3 4/4 3/3 1/1
Simon Fraser
7/7 3/3 4/4 3/3 1/1
Andy Harrison
7/7 4/4 1/1
Susanne Schroeter
2
1/1
David Sleath
7/7 1/1
Marcus Sperber
7/7 1/1
Linda Yueh
7/7 3/3 4/4 3/3 1/1
Total number of scheduled
meetings in 2025
7 3 4 3 1
1 Soumen Das retired from the Board on 31 December 2025.
2 Susanne Schroeter was appointed to the Board on 1December 2025 and has attended all relevant meetings since her appointment.
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Board leadership and Company purpose continued
Board site visit, Axis Park, UK
Board activities and decisions in 2025
As well as the more
generalstrategic advice
and governance oversight
provided by the Board
during 2025, and
described throughout this
Governance Report, some
other areas of focus during
the year included:
Strategy
• considering the Company’s strategy and agreeing it remained
appropriate;
• considering the evolution of the Company’s data centre strategy
including the availability of power;
• reviewing the Group’s digital strategy, to ensure that it remains closely
aligned with the needs of the business and supports in the delivery of
our priorities;
• reviewing the Company’s investment stance, and adapting the focus
as necessary in response to the changes in the property cycle and
wider investment market;
• challenging whether the Company’s approach to share buybacks
remained appropriate;
• reviewing and approving the principal risks and risk appetite of the
Company; and
• considering presentations by the Company’s corporate brokers,
Morgan Stanley and UBS, on shareholder trends.
Financial
• approving the Half-and-Full-Year Financial Statements, the 2024
Annual Report and Accounts and the 2025 interim and final dividends
in line with the dividend policy;
• monitoring liquidity through regular reviews of the cash flow position,
committed capex and the development pipeline;
• approving a new €1.6 billion revolving credit facility, as detailed further
on page 40;
• receiving presentations from the Company’s independent valuers,
CBRE, on our portfolio performance and providing constructive
challenge around the valuation process to gain comfort that it
remained robust and appropriate;
• approving the appointment of Cushman & Wakefield as the Company’s
UK valuers with effect from the Company’s June 2026 Half-Year
valuation; and
• on the recommendation of the Audit Committee following a
competitive tender process, approving the reappointment of
PricewaterhouseCoopers LLP as external auditor, subject to
shareholder approval at the 2026 AGM.
Operational
• reviewing health and safety across the
Group, including monitoring performance
against the Company’s zero-tolerance
approach to health and safety breaches,
andreviewing key findings and learnings
from any incidents;
• considering ways to deepen customer
insights to further enhance relationships
withcustomers and better understand their
businesses and needs; and
• hearing how our Community Investment
Plans have delivered positive impacts on
employment, the local economy and the
environment in the communities in which
weoperate.
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Board leadership and Company purpose continued
Board in action
The Board hosts an annual Strategy Event to reflect on the business’ key strategic themes and
long-term focus. In doing so, the Board recognises the value of focusing on the broader strategic
context to ensure the business remains on course to fulfil its long-term strategic objectives.
Together with the Executive Committee and Company Secretary, the Board was joined by
internal experts and external advisers who shared valuable insights into relevant strategic
topics, including Morgan Stanley’s perspective on the global macroeconomic outlook and
Savills’ view on the global industrial and logistics property market.
Internal speakers included:
• the Head of Strategic Planning and the Associate Director of Strategic Insights, who shared
areview of structural drivers in the market;
• the Managing Director Continental Europe; Head of Investment Continental Europe;
andHead of Finance Continental Europe, who provided updates on the Continental Europe
business plan, whilst the Managing Director UK; Head of Investment UK; and Head ofFinance
UK focused on the annual portfolio review and outputs from the medium-term asset and
financial planning process;
• the Managing Director, Data Centres and Strategic Partnerships; Director of Western
Corridor; and Finance Director, Operational Analysis who provided updates on the
Company’s data centre strategy and business plan, including the availability of power; and
• the Head of Corporate Finance who, alongside the Chief Financial Officer, presented the
Group’s medium-term plan.
Other members of the Executive Committee gave presentations on their key business priorities,
including talent management. Free form discussions and reflections took place following the
conclusion of the presentations.
As well as hearing from colleagues and advisers during the Board Strategy Event, the Directors value
meeting and hearing from different people who are close to the Company’s markets and who can
tell the Board what they are seeing and hearing on the ground – either during Board meetings, on-
site tours, or in the offices when the Board visits.
During 2025, the Board heard from a range of internal experts including:
• members of the Executive Committee on their individual areas of responsibility and how they
have each delivered against the Group’s strategy;
• the Group HR Director on talent management and diversity, inclusion and equal
opportunityinitiatives;
• the Managing Director of Group Investment on the annual review of acquisitions and
developments and the market outlook;
• the Head of Legal and Company Secretary on legal and governance matters impacting
theGroup;
• the Director of Customer Marketing and Development on fostering customer insights
andstrengthening relationships;
• the Chief Information Officer on the Company’s Digital Plan;
• the Head of Business Intelligence and Advanced Analytics on the use of technology to support
decision making;
• the Head of Investor Relations on share price performance and investor and analyst feedback;
• the Director of Sustainability on sustainability matters of relevance to the Group;
• the Managing Director, Germany and Netherlands; and the Head of Netherlands, who provided
anupdate on the Dutch market and the Company’s activities there during a Board visit to
Amsterdam; and
• the Head of Western Corridor; and Directors of Western Corridor, who briefed the Board on their
portfolio during a Board tour of Slough and Heathrow.
These sessions help to provide context for the Board to make strategic decisions, including in
respect of acquisitions, disposals and the development pipeline.
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Board leadership and Company purpose continued
Purpose, Values and culture
How the Board lives our Purpose
andValues
We are proud of our Purpose – to create the space
that enables extraordinary things to happen – and
our five Values which support our culture and align
with our strategy. They are well embedded in the
business and form the basis of our workforce
policies. They help to unify employees and describe
the core beliefs about how SEGRO does business,
acting as a universal language across our business
and the countries in which we operate.
It is essential that the Directors lead by example
andembody the Values. Executive Directors, being
more visible leaders around the business, help
tosetthe tone.
Consistent feedback from the recent Board
performance reviews demonstrate that all Directors
feel they can contribute, speak freely and are
notconstrained in the boardroom. TheChair
encourages open debate and no oneindividual
dominates the discussion. The relationships between
the Board members mean that they are comfortable
to sayit like it is, whilst their diverse backgrounds
and well-balanced experience bring varying
perspectives to Board discussions, and the regular
refreshing of appointments ensures fresh
perspective and challenge. Together, thisfosters
asupportive environment which promotes true
diversity of thought and constructive challenge.
How the Board manages, monitors
andembeds our culture
The Board believes that our culture can bedefinedby:
• a strong desire to create a successful business
wecan be proud of;
• trust and strong professional integrity – wedeliver
on promises;
• pragmatism – a ‘sleeves up’ approach
regardlessof status;
• thoughtful, detailed and measured decision
making;
• respect and transparency; and
• caring about people and taking an interest
intheirwellbeing.
The Board continues to monitor the culture ofthe
Company through indicators which serve as a
temperature check. They consider:
• the results of the employee engagement pulse
survey ‘Your Say’;
• feedback from the workforce engagement
sessions led by the Non-Executive Directors;
• internal audit reports;
• data on employee turnover;
• feedback from office and site visits by Executive
Directors and the Board as a whole;
• any whistleblowing incidents;
• any health and safety incidents;
• any breaches of the Code of Business Conduct
and Ethics;
• the results of the annual customer satisfaction
survey;
• progress against diversity and inclusion targets;
• feedback from the Group HR Director, who
addressed cultural priorities across the workforce
at the 2025 Strategy Event; and
• risk discussions and strategic planning which
consider culture.
These activities enable the Board to gain regular and
meaningful insight into how the Company’s Values
are being lived across the organisation. The Board
frequently assess whether the desired culture is
embedded, identifies areas for improvement, and
takes action where necessary to support a positive,
inclusive and high-performing culture throughout
the Group.
Outcome
The Board considers that, on the whole, there isa
strong culture at SEGRO of which our employees are
proud. During the most recent Your Say survey,
90per cent of employees said that they understood
SEGRO’s strategy and business priorities and 88 per
cent said they felt proud to work at SEGRO.
We have a unifying set of Values that drive our culture.
When the Directors are together, they live the Values
asfollows:
Say it like it is
The Directors are honest and transparent in dealings with each other and those
who interact with them both inside and outside of the boardroom. The Chair
encourages constructive debate and challenge during meetings.
Stand side by side
The Non-Executive Directors bring to the Board their wide-ranging and extensive
knowledge and experience from other businesses. The Directors are supportive
and take collective responsibility for decisions.
Keep one eye on the horizon
The Directors look to the long term in their decision making. They want to
understand future trends and how the Company can use them for the benefit
ofall of our stakeholders in the short, medium and longer term.
If the door is closed…
The Non-Executive Directors support the Executive Directors to find solutions
tomore complex issues and provide assistance where difficult judgement calls
and decisions need to be made.
Does it make the boat go faster?
The Directors look at different ways of working to create effective relationships
and discuss regularly where they can best add value.
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Board leadership and Company purpose continued
Corporate governance disclosures
Promoting long-term sustainable
success
SEGRO’s principal duty is to deliver long-term,
lasting and sustainable success, and to generate
value for shareholders and other investors,
whilst being mindful of its impact on
stakeholders and wider society. Real estate is
inherently a long-term industry and the Board
therefore takes this into consideration in all its
decision making.
As you will have already read, the Board
facilitates decision making through robust
governance processes (including through the
Schedule of Matters Reserved for Decision by
the Board, which forms the framework for the
Board’s decisions and is available to view at
www.SEGRO.com) and by ensuring that
effective risk management is in place, including
reviewing the measures used to mitigate the
near-and longer-term risks (including emerging
risks) to the business.
The Board is ever mindful of the need to balance
the pursuit of opportunities without taking
unacceptable or excessive risk, and ensures that
the Company has the appropriate resources,
interms of time, people and funding, to do so.
You can read more about the Company’s
approach to risk and risk management on pages
56 to 58 whilst page 105 contains further details
about the Audit Committee’s role in ensuring
that robust processes have been put inplace to
be sure that risks are identified, evaluated and
managed. The Board regularly discusses the
Company’s principal risks, along with new and
emerging risks, and considers how they may
impact on our long-term goals.
Identifying and managing conflicts
of interest
The Board operates a policy to identify and, when
appropriate, manage actual or potential conflicts
of interest affecting Directors. Prior to taking on
any additional external commitments, Directors
are required to submit any actual or potential
conflicts of interest they may have with the
Company to the Chair or Senior Independent
Director for approval. Any conflicts of interest are
recorded and approved by the Board at each
meeting. Directors have a duty to keep the Board
updated about any changes to these conflicts.
Code of Business Conduct
andEthics
The Board takes an active interest in ensuring
that appropriate policies and practices are in
place, consistent with the Company’s Purpose
and Values. One such policy is our Code of
Business Conduct and Ethics (Code of Ethics)
which was updated during the year, and which is
core to the way in which our business isrun, the
work we do and our reputation.
The Code of Ethics sets out the high ethical
standards expected of all our people in their
daily work to enable us to act with honesty and
integrity. The Code of Ethics covers various
policies on a wide range of activities and any
breaches are thoroughly investigated with
appropriate action taken. The Board receives
regular reports on compliance with the
CodeofEthics and the Company’s policy on
whistleblowing, which sets out the procedure
bywhich employees and any third parties can
use a confidential external service, Safecall,
toraise concerns. There were no whistleblowing
reports, either to Safecall, or through internal
channels, during 2025.
The Code of Ethics also sets out our approach to
the human rights of all our stakeholders. Our
due diligence to combat slavery and human
trafficking is set out in our Modern Slavery
Statement which is approved by the Board each
year and is on our website at www.SEGRO.com.
See page 125.
Our Supplier Code of Conduct (also updated
during the year) ensures that all suppliers adhere
to high ethical standards and reinforces
SEGRO’s commitment to operating our business
in an ethical and honest way.
The Audit Committee is responsible for ensuring
that appropriate safeguards are in place for the
detection of fraud and prevention of bribery,
including overseeing and monitoring the
Group’s anti-bribery and corruption policies and
procedures. See page 105.
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Board leadership and Company purpose continued
Division of responsibilities
The division of responsibilities of the Chair, Chief
Executive and Senior Independent Director are
clearly established in writing and approved by
theBoard.
Chair
The Chair is responsible for the leadership of the Board
and its overall effectiveness in directing the Company
and promoting an open environment for challenge
anddebate. He encourages participation by all the
Directors, facilitates constructive relations and
creates the right atmosphere to promote a culture
of open discussion and effective decision making.
Along with the other Non-Executive Directors, he is
responsible for holding the Executives to account
against agreed objectives.
Chief Executive
The Chief Executive recommends the Group’s
strategy to the Board and is responsible for its
implementation and for the Group’s overall
performance. He ensures that the interests of
theGroup’s stakeholders are taken into account
with regards to the long-term impact ofthe
Board’sdecisions.
Senior Independent Director
The Senior Independent Director acts as a sounding
board for the Chair and serves as an intermediary for
Directors and shareholders should communication
through the normal channels fail. She leads the
appraisal of the Chair’s performance each year and
would, as required, chair the Nomination Committee
when it considers his succession.
Availability of the Chair, Chief Executive
and the Company Secretary
The Chair, the Chief Executive and the Company
Secretary are always available for the Directors
todiscuss any issues concerning Board meetings
orother matters. All Directors have access to the
advice and services of the Company Secretary, who
is responsible for ensuring compliance with Board
procedures. Directors also have the right to seek
independent professional advice at the Company’s
reasonable expense should they so wish.
Our Governance Framework
The Board is responsible for creating and delivering shareholder value by setting the strategic direction of the Group. The Board delegates a number of its
responsibilities to its three sub-Committees. The Committee Chairs provide regular updates on the activities of each Committee at Board meetings.
The Executive Committee supports the Chief Executive with the development and implementation of Group strategy, the management of the business and the
discharge of responsibilities delegated by the Board. It typically meets formally each month and informally most weeks, and during the year there are dedicated
sessions to discuss strategic priorities as well as ad hoc sessions to keep up to date with more day-to-day operational issues. The Executive Committee delegates
some of its responsibilities to a number of management committees, membership of each includes at least one member of the Executive Committee.
Health and Safety
Develops and manages
the implementation of
health and safety policies,
reviews the outcomes of
the Health and Safety
Working Group as well
asany other health and
safety matters.
Joint Operating Group
Assists the Managing
Director of Operations,
Digital and Customers
tomanage the
operationsof the Group
and to discharge the
responsibilities
delegatedto him by the
Chief Executive.
Group Risk Committee
Establishes, monitors and
reports to the Executive
Committee and ultimately
the Board and Audit
Committee on the Group’s
approach to risk
management.
Investment Committee
Recommends the
investment strategy
forthe Group, manages
theallocation of capital
andoversees all major
investment and
divestment decisions
onbehalf of the
ExecutiveCommittee.
The Digital Board
Drives delivery and value
for all aspects where
digital is an enabler or
catalyst for change.
Itapproves the roadmap
for the Digital Programme
and discharges its
responsibilities delegated
by the Executive
Committee.
Read more on
pages 56 to 68
The Leadership team comprises the members of the Executive Committee and their senior direct reports, each of whom has responsibility forthe Group’s
operations in a particular geography or for one or more of the Group’s main functional areas.
It serves as a discussion forum and sounding board with which the Executive Directors can share knowledge and ideas, gain a better understanding of the
localmarket outlook and share cross-functional and cross-border information.
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Division of responsibilities
Nomination Committee
Ensures that the Board and its Committees have
the appropriate skills, knowledge, diversity and
experience to operate effectively and to
oversee the delivery of the strategy.
Audit Committee
Monitors the integrity of the Group’s Financial
Statements, reviews the relationship with the
external auditor and the role and effectiveness
ofthe internal audit function. Oversees the risk
management process and internal control
environment.
Remuneration Committee
Determines the reward strategy for
theExecutiveDirectors to align their interests
with those of shareholders andemployees.
Read more on
pages 92 to 97
Read more on
pages 98 to 105
Read more on
pages 106 to 124
Stakeholder engagement
Section 172(1) statement
The Board confirms that during
the year ended 31December
2025 it has acted in the way it
considers, in good faith, would
be mostlikely to promote
thelong-term success of the
Company forthe benefit of its
members as a whole whilst
having due regard tothe
matters set out in section 172(1)
(a) to (f) of the Companies Act
2006 (s172).
Each of the Directors are mindful of their duties
under s172 to run the Company for the benefit
of itsshareholders and, in doing so, to take into
account the long-term impact of any decisions
on stakeholder relationships and the impact of
the Company’s activities on the environment,
whilst maintaining its reputation for high
standards of business conduct at all times.
TheCompany cannot operate in a vacuum.
Wecan only succeed if we conduct ourselves
ina responsible manner and have positive
relationships with all of our stakeholders.
Factor Link to strategy Link to stakeholders
a
the likely consequences of any decision in the
longterm;
b
the interest of the Company’s employees;
c
the need to foster the Company’s business
relationships with suppliers;
d the impact of the Company’s operations on the
community and the environment;
e
the desirability of the Company maintaining a
reputation of high standards of business conduct; and
f the need to act fairly as between members of
theCompany.
Strategy key Stakeholder key S172 factor key
Responsible SEGRO
Customers
Investors
a
Long-term
consequences
d
Impact of operations
Disciplined capital
allocation
Communities
Environment
b
Interests of
employees
e
Maintaining
reputation
Operational
excellence
Suppliers
Employees
c
Fostering
relationships
f
Need to act fairly
Efficient capital and
corporate structure
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Section 172(1) statement
How the Board considers s172 matters
The Directors engage directly with as many stakeholders as they can but given the number spread across multiple geographies, stakeholder engagement often takes place at the operational level. In this
next section, we explain how the Board, and the Company, has engaged with our stakeholders and how that engagement has influenced its decision making.
When making decisions which impact our key stakeholders the Board considers the factors set out in s172. Some examples of this in 2025 include:
Joint venture with Pure Data
CentresGroup
a c e
The Board approved the Company entering into a joint venture
with Pure Data Centres Group (Pure DC) to pre-lease and develop
a fully fitted data centre at Premier Park, Park Royal. Aspart of the
transaction, SEGRO contributed a 10 acre site at Premier Park,
with Pure DC contributing the site’s power via a 70MVA
connection. The contributions allow for the development of a 56
MW IT capacity data centre which is expected to be pre-let to a
hyperscaler.
Prior to approving the joint venture, the Board spent time considering
its effect on a number of the Company’s key stakeholders, including:
• the anticipated market and investment reaction to the
transaction and the impact on the Company’s shareholders
(including the future likely liquidity of the asset);
• the repurposing of the site from a generic warehouse,
previously let to MatchesFashion, to a highly bespoke data
centre – with further thought given to the impact on suppliers
(both construction and power), the local community, and the
environment (both the impact of the power and water usage of
the data centre, and the reuse of the land, some of which was
previously contaminated);
• the customer demand for the product; and
• employee resourcing requirements of both the transaction team
and the team which will be responsible for delivering the project.
Taking account of the above considerations, the Board believes
that the joint venture and future development of a fully fitted data
centre are in the best interests of its stakeholders.
Approval of infrastructure works
atRadlett
a c d e f
The Board approved the purchase of a 1,000 acre landholding in
2023 at Radlett. In early 2024, the Board approved the capex
required to begin the infrastructure works, some of which were
time sensitive (including the rail connection), and in 2025 the
Board approved the final infrastructure works for the site.
Due to the significance of the project, the Board received several
project updates throughout the year, including hearing about:
• the enhanced project governance which had been put in place
to monitor risk, protecting shareholder value;
• the anticipated financial returns from the project which should
enhance the Company’s value for the benefit of its investors;
• the procurement process which was followed to appoint the
General Contractor to carry out the second part of the
infrastructure works;
• the conditions imposed in respect of the planning, including
the development of a country park, for the benefit of the
surrounding environment and communities; and
• potential customer demand for the site, including
consideration of the type of customers who may be interested
in taking space and why.
Throughout the process, the Board has acted in what it considers
to be the best interests of SEGRO’s stakeholders.
Appointment of Susanne Schroeter
asan Executive Director and
ChiefFinancial Officer
a b e
The Board approved the appointment of Susanne Schroeter as
anExecutive Director and Chief Financial Officer with effect from
1 December 2025. Susanne has replaced Soumen Das, who
retired from the Board and Company on 31 December 2025.
When considering Susanne’s appointment, thought was given
toher extensive finance experience and strong pan-European
business expertise, together with her deep knowledge of financial
markets, real estate, logistics, online retail, and digital
transformation, which the Board considered would be of real
benefit to a number of the Company’s stakeholders, including
investors, customers, suppliers and employees. Susanne’s
breadth of knowledge and experience, together with her
international perspective gained from senior roles in Europe
andAsia, will bring invaluable insight to Board discussions
andstrategic decisions too.
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Section 172(1) statement continued
Engaging for mutual success
Employees
Why they are important to us
Our people deliver our strategy and bring our Purpose, Values and behaviours to life. The
strengthofour platform – and our business performance – relies on their capability, engagement
andmotivation.
What matters to them
• An inclusive, supportive environment where everyone feels respected, valued and free from bias.
• Working for an organisation whose Values align with their own and are lived consistently every day.
• Meaningful and rewarding careers that provide opportunities to grow, thrive and fulfil their potential.
• Competitive, fair and transparent compensation and benefits that reinforce their contribution
andvalue.
How the Company engages with them
• A refreshed intranet (The Box) for a better, more intuitive experience.
• Monthly Leadership Briefings shared openly on The Box.
• Quarterly business briefings for all colleagues.
• The Your Say survey, the most recent of which received an 88 per cent engagement score, and
participation rate of 94 per cent.
• Wellbeing and Inclusion events and drop-ins for two-way dialogue.
• Annual performance and development reviews.
• Training, development programmes and coaching opportunities.
SEGRO offices Düsseldorf, Germany
How the Board engages with them
As the Group has a non-unionised business with a headcount of 463 employees based in multiple
countries, an alternative arrangement (as permitted by Provision 5 of the Code) remains the most
appropriate option. This involves a three-stage approach which, whilst now well-embedded, remains
under review to ensure it continues to be effective and encompasses the spirit of enabling the voice
of the employee to be heard in the boardroom:
• An annual programme of workforce engagement with Non-Executive Directors hosting
scheduledsessions with a cross-section of employees from across the Group. In 2025 three
sessions were held on topics such as Executive Remuneration, and diversity, inclusion and equal
opportunity. Non-attributable feedback from each session was relayed at the following Board
meeting for discussion.
• Meetings with regional and local leadership teams, asset tours, and informal engagement with
colleagues through office lunches, afternoon teas and dinners whilst visiting sites.
• Board, Strategy and Committee meetings throughout the year, where a wide range of employees
attended to present on their areas of expertise.
Impact/outcome of engagement
• Meaningful action is taken to address the areas of importance raised by employees during the
workforce engagement sessions.
• Employee feedback is a key consideration in people strategy and planning.
• Site visits provide valuable insight into local operations, culture and strategic priorities across
thebusiness.
• Board discussions benefit from the wealth of specialist knowledge on employees’ areas of focus,
support the Boards’ understanding of the business ensuring informed decision making.
• Meeting with a diverse group of employees at all levels enables the Board to experience the
SEGRO culture first-hand and see how our employees uphold the Purpose and Values.
Priorities for 2026
• Deepen colleagues’ understanding of our employee proposition, ensuring everyone feels
connected to what makes SEGRO unique and understands how our environment enables
highperformance.
• Evolve our reward approach to optimise alignment with our strategy, performance goals and the
diverse roles across SEGRO, reinforcing a strong sense of value and recognition.
• Strengthen leadership capability at all levels so current and future leaders foster an engaging,
inclusive culture and provide the forward-looking direction needed for colleagues to thrive.
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Our stakeholders
Customers
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 and well-located space that enables them to serve their own customers
and provides a safe working environment.
• Excellent customer service and a consistently high-quality experience across our portfolio.
• Support in achieving their business goals and responding to operational challenges.
• Opportunities to connect with our businesses, alongside insights into peers and wider
markettrends.
• An integrated cross-border relationship with SEGRO's teams, helping customers with their
industrial and logistics space requirements across our portfolio through a single, coordinated
approach.
How the Company engages with them
• Regular contact with our property and asset management teams, supported by structured insight
gathering and collaboration.
• Annual customer satisfaction survey, which received 294 responses in 2025 and reported a high
level of satisfaction (91 per cent), provides a key measure of performance and tells us about
customers’ emerging priorities.
• Regular customer forums enable open discussion on market trends and shared challenges.
• Partnering with customers on our community projects.
• Investment in customer journey priority projects and a customer intelligence platform, improving
collaboration, responsiveness and consistency of information shared across the business.
How the Board engages with them
• Visits to assets occupied by customers such as DHL, Kite Pharma, Swissport, Royal Mail and Iron
Mountain during 2025 provided first-hand insight into how customers use their space, what they
value most, and how our assets support their operations.
• A Board dinner with customer executives from CEVA Logistics provided valuable insight into their
business model, future trends and expectations of SEGRO as a long-term partner.
• The Board regularly reviews the results of the annual customer satisfaction survey and broader
customer insights to maintain oversight of customer sentiment and evolving needs.
Penguin Random House, SEGRO Logistics Park Cerdanyola, Spain
Impact/outcome of engagement
• Understanding what customers value in high-quality, fit-for-purpose space and service.
• Customer insights provide important context for strategic decisions, helping the Board to identify
opportunities, manage risks and respond to emerging challenges.
• Ongoing monitoring of customer satisfaction and trends supports informed leadership and
continuous improvement.
Priorities for 2026
• Deepen relationships and shape the SEGRO proposition in established high-growth sectors.
• Enhance customer reporting, action tracking and information delivery through AI-powered tools.
• Support customers in transitioning to lower-carbon energy, underpinned by our solar
installationstrategy.
• Continue to replace gas with efficient, low-carbon heat sources across the portfolio.
• Deliver a SEGRO-wide biodiversity assessment to inform future action.
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Our stakeholders continued
Communities
Why they are important to us
We aim to deliver long-term economic and social benefits in the communities in which 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 traffic congestion.
• Training and employment opportunities.
• Investment into the local economy.
• Enhancement of their local environment.
How the Company engages with them
• Early consultation on new developments.
• Partnerships with local authorities, charities and education providers to deliver our Community
Investment Plans (CIPs). In 2025 we launched a fifteenth CIP in St Albans, Hertfordshire, which
means we now have one in each of our major markets.
• 1,227 volunteering days were delivered in our local communities by our employees and
representatives from our customers, suppliers and other stakeholders during 2025.
• Long-term participation in community groups and local advisory boards.
SEGRO day of giving, Germany
How the Board engages with them
• Monitors progress on CIPs, and hears how they deliver positive impacts on employment,
thelocaleconomy and the environment in the communities in which we operate.
• Approved ESG targets as part of employees’ remuneration package, to include a target number of
volunteering days to be completed by employees, customers and suppliers.
• Participation in the SEGRO Day of Giving; volunteering on projects that benefit our local
communities. In 2025, our Executive Directors, David Sleath and Soumen Das, took part in
projects in the UK.
• Career employability workshops for young people, helping to improve access to the workforce.
Our Chair, Andy Harrison, took part in two workshops in Enfield during 2025.
Impact/outcome of engagement
• Considers community impact in investment decisions, ensuring capital allocation supports
localbenefits.
• Volunteering initiatives address local needs and delivers meaningful, lasting community impact.
They further enable employees to build stronger stakeholder relationships and valuable insights.
Priorities for 2026
• Expand participation in the CIP by increasing the number ofengaged customers, public sector
partners, and suppliers.
• Strengthen data collection and our analytic platform to improve programme efficiency,
performance management, and outcomes.
• Embed further qualitative measurement within the CIP to better capture lived experience,
progression, and the wider impact.
• Measure and communicate the ‘Social Value’ impact of the 2025 CIP (in the UK only).
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Our stakeholders continued
Suppliers
Why they are important to us
We have over 3,000 suppliers across the Group and spent c.£723 million with them in 2025. 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 defined expectations and standards (including high ethical standards).
• Positive collaboration with aligned values and objectives.
• Advice on best practices and training support where necessary.
• Prompt and efficient payment of invoices.
How the Company engages with them
• Our Supplier Code of Conduct and Modern Slavery and Labour Standards Supplier Code
consolidate and set out in full the principles and standards that we expect from suppliers and
outline how wecan work side-by-side to create real change.
• A comprehensive supplier assurance process to ensure our supply chain is maintained to a high
standard with regular service review sessions.
• Support with health and safety training and initiatives, where appropriate.
• Collaboration on our Responsible SEGRO ambitions and CIP projects. 108 suppliers participated
inour volunteering programme in 2025.
• Contractor Forums in the UK for our supply chain partners, to engage on a wide range of topics
such as sustainability, health and safety and best practice.
• Use of a framework with key supply chain partners to drive future areas of collaboration.
• We are an accredited UK Living Wage employer, and are working with our suppliers to help
ensureeveryone working in our supply chain to support us is paid a real Living Wage.
How the Board engages with them
• Meets with suppliers whilst on site tours, such as Wates Construction in 2025.
• Regular discussion and consideration of suppliers throughout the year, including in respect
oftheRadlett infrastructure works.
• Invites suppliers to join Board meetings and the annual Strategy Event to provide updates
ontheirareas of expertise.
• Receives training, from key suppliers, to ensure that the Board remains well informed on their
responsibilities.
Winvic, SEGRO Logistics Park Northampton, UK
Impact/outcome of engagement
• Enhances the Board’s understanding of our markets, as well as the opportunities and challenges
some are facing, and the potential impact on our business.
• Considers the highest ethical standards as integral to SEGRO’s business.
• Approves the Modern Slavery Statement and maintains oversight of the Modern Slavery and
Labour Standards Code and the Code of Business Conduct and Ethics to ensure that these
standards are maintained by our suppliers as appropriate.
Priorities for 2026
• Build on previous record high levels of engagement and participation from our supplier partners
in our CIP, with a wide range of different ways that they are able to continue to be involved.
• Work in close collaboration with our key supply chain partners on our Best Value initiative to
understand how we can do things better, taking a multi-year approach to driving new value
andperformance.
• Work with supply chain partners to further reduce embodied carbon in development
andrefurbishment.
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Our stakeholders continued
Investors
Why they are important to us
Shareholders, both institutional and retail, are the owners of our business. They also include the
financial institutions who provide debt and capital to us and our joint ventures.
What matters to them
• Clearly articulated long-term strategy.
• Financial performance, returns and dividend growth.
• Strong balance sheet.
• Risk management and efficient use of capital.
• Leading ESG performance.
• Effective and robust governance.
How the Company engages with them
• Our extensive Investor Relations programme ensures we reflect our investors’ views in our
decision making. This includes: meetings; roadshows; conferences and asset tours; regulatory
reporting; and our Annual General Meeting.
• In 2025, we engaged with investors across 300 meetings, including all of our active largest 20
shareholders. We hosted asset tours giving over 150 institutional investors and analysts the
opportunity to see our assets and learn more about the portfolio.
• Areas of focus included supply-demand dynamics and rental growth outlook in our occupational
markets, the pace of our development pipeline, capital reallocation strategy, and the data centre
opportunity within our portfolio.
SEGRO Annual General Meeting, 2025, UK
How the Board engages with them
• Attendance at the annual Financial Results presentation to engage with investors and analysts.
In2025, our Chair, Andy Harrison, and Executive Directors, David Sleath and Soumen Das,
attended the 2024 Financial Results presentation.
• Attendance by the whole Board at the 2025 Annual General Meeting to meet with, and
answerquestions from, shareholders both formally, during the meeting, and informally,
overrefreshments.
• The Chair extends an invitation annually to our ten largest shareholders to meet with him, the
Senior Independent Director and/or the Committee Chairs. In 2025, the Chair consequently
metwith several investors.
• In 2025, Simon Fraser, Chair of the Remuneration Committee, met with investors todiscuss
changes to the Remuneration Policy and the 2026 LTIP performance metrics, following him
writing to the Company’s 20 largest shareholder and proxy voting agencies, inviting engagement.
Impact/outcome of engagement
• Regular engagement with our investors helps the Board understand what is important to
themand informs its decision making.
• In developing the 2026 LTIP performance metrics, investor perspectives were considered
andvalued.
Priorities for 2026
• Continue to take an open and transparent approach to financial communication.
• Engage proactively with our largest shareholders and potential new investors.
• Ensure that investors understand our data centre strategy and the income and value
creationopportunity that it offers.
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Our stakeholders continued
Environment
Why it is important to us
We recognise that the interactions of our business with the environment, through the materials and
resources we use in development, the activity of our customers in our buildings, and the exposure
ofour portfolio to emerging climate risks, are critical to SEGRO’s long-term resilience and success.
What matters to it
• Reduction of the carbon emissions generated by our operations and through our
developmentprogramme.
• Maximising the efficiency and minimising the resource usage of our assets.
• Understanding and ensuring the resilience of our portfolio to climate change risks.
• Protection and enhancement of biodiversity in our local areas.
How the Company considers the environment
• Ambitious science-based carbon reduction targets, including net-zero targets in our primary
categories of emissions, including:
– Decreasing our corporate and customer carbon emissions intensity by 17 per cent, and our
average embodied carbon intensity in our developments by 12 per cent, in 2025.
– Working with customers on their carbon reduction journeys, including through installation
ofsolar panels at our properties, where economically feasible.
– Increasing visibility of our customer energy usage (now at 91 per cent).
– Adding 22 MW to installed solar capacity at our properties in 2025.
• Scenario analysis to understand the potential impact of climate change and mitigating risks.
• Consideration of the carbon and biodiversity impacts of our development projects.
How the Board considers the environment
• All requests for capital approval must contain information on the environmental implications
andmitigations as required by the Company’s Mandatory Sustainability Policy.
• Oversees the alignment between developments and our Responsible SEGRO targets, ensuring
wherever possible our buildings benefit from sustainable enhancements.
• Receives regular updates on progress against our Responsible SEGRO targets and sustainability,
including hearing from the Director of Sustainability on progress made on Championing low-
carbon growth in 2025.
• Regular updates from internal and external experts on current and forthcoming
environmentallegislation.
CEVA Logistics collaborating on community investment, Poland
Impact/outcome of engagement
• Monitoring progress against our Responsible SEGRO targets ensures that they remain
appropriate, stretching and in the best interests of all of our stakeholders.
• Environmental impact of our developments and net-zero ambitions are considered for capital
allocation requests.
• Reports on sustainability and updates on compliance with the Mandatory Sustainability Policy
enable the Board to lead the business in a way which it believes is most likely to promote its
long-term sustainable success.
• The Board stays well informed and the Company continues to comply with requirements with
regards to ESG, due to regular updates and engagement on this topic.
Priorities for 2026
• Support our customers in moving to lower carbon energy, helped by our solar installationstrategy.
• Continue to replace gas with efficient low-carbon heat sources.
• Work with our supply chain partners to further reduce embodied carbon.
• Deliver on a SEGRO-wide biodiversity assessment.
• Conduct at least one climate vulnerability on-site visit in 2026.
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Our stakeholders continued
Internal Board performance review
Frequency and evaluation type
Year 1: External
Year 2: Internal
Year 3: Internal
In line with the requirements of the Code,
theBoard undertakes an externally facilitated
performance review every three years. In the
intervening two years, internal reviews of the Board,
its Committees and the performance of individual
Directors are carried out. The last external Board
performance review took place in 2024 and our
intention is to repeat this exercise in 2027.
This year's internal review was led by the Senior
Independent Director, Carol Fairweather, and
overseen by the Chair, with support throughout
the process from the Company Secretary.
TheSenior Independent Director and Company
Secretary agreed the areas of focus for the
review with the Chair, and held 1:1interviews
with individual Board members and the HR
Director, structured around these themes, with
the opportunity for participants toexpress their
views on any other matters of importance
tothem. A draft report summarising the key
themes from the review, was discussed with
theChair and Chief Executive ahead of the
December 2025 Board meeting, following which
it was presented to the Board, who agreed the
actions for the upcoming year.
Agreed areas of focus
The review focused on a wide selection of
themes, and the combination of topics allowed
us to seek views on both strategic and
business-as-usual items.
Key areas of focus included:
• the size and composition of the Board and its
Committees and the balance of the skills,
experience, independence and diversity
brought by each ofthe Directors;
• Board succession planning, along with the
people strategy for the wider business;
• the Board’s input to the development of
strategy and the effectiveness of strategy
sessions at Board meetings;
• Board dynamics and the relationships
between the Directors, and between the
Board and the Executive Committee, as well
asthe contributions of individual Directors,
including the Chair; and
• stakeholder engagement and the
consideration of stakeholder interests as part
of Board discussion and decision making.
Conclusions
Overall, the feedback from the review remained
positive and concluded that the Board and its
Committees continue to perform to a high
standard and cover all of their statutory duties.
The key findings of the review are
summarisedbelow:
• the size, balance of experience and skills,
anddiversity of the Board was considered
tobe appropriate. This would be kept under
review during the coming year with two
Non-Executive Directors due to reach the end
of their nine-year tenures in 2027;
• Board meetings were effectively run by
theChair with Board dynamics remaining
strong and the Board was considered to
becollaborative with appropriate levels
ofchallenge;
• the Board appreciated the increased time
thathad been spent on strategic updates,
including insights on longer-term strategic
drivers, and wanted this to remain a key focus;
• the Board was comfortable that Executive and
Non-Executive succession planning was being
appropriately considered. Increased visibility
of senior management succession planning
was well received;
• all three Board Committees were thought to
be well chaired and effective in discharging
their respective duties with the combination
of skills and experience brought by the
Committee members deemed appropriate;
• the quality of papers continued to improve
tosupport effective discussion and decision
making; and
• Board members commented positively on the
employee engagement sessions and visits to
local SEGRO teams. Customer interactions
had also been very well received and there
was a desire for these to continue.
Actions
Following the review, the Board appreciated the
opportunity to reflect on its performance and
highlighted areas for continued focus in 2026,
some of which included:
• to continue to receive regular updates
onstrategic items and in-depth reviews
ofthestructural drivers of the business,
andto ensure adequate time is given to
themat Board meetings and the annual
Strategy Event;
• to continue with regular updates to the
Nomination Committee on Board and
Executive Committee succession planning,
including updates on wider talent
management and a review of future
capabilityrequirements, as well as the
required skill sets and experience for
replacement Non-Executive Directors;
• to maintain the programme of regular
stakeholder engagement; and
• to maintain the discipline around succinct
executive summaries in Board papers and
presentations to allow sufficient time for
discussion and questions from Boardmembers.
Actions against these priorities will be considered
by the Board during the course of 2026 and
reported against in next year’s Annual Report.
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Board performance review
Review of the actions from the 2024 review
In July and December 2025, the Board revisited the conclusions of the 2024 external Board performance review to ensure that progress was being made on the key actions identified:
What we said we would do
What we did
Further information
Strategy
Maintain the regular updates at Board meetings on strategy and
thekey strategic priorities, ensuring sufficient time for debate,
including updates on the longer-term trends that could impact
thekey structural drivers of the business.
In addition to the dedicated Strategy Event in November 2025, the Board
received regular updates at Board meetings on strategic topics and the key
strategic drivers for the business,and additional time was allocated on the
Board agenda for discussion and debate.
This will continue to be a key area of focus throughout 2026.
Board in action – page 78
Board activities and decisions in 2025 – page 77
Stakeholder engagement
Maintain the cadence of breakfasts and dinners with external
speakers, including customers and suppliers, and allocating time
on Board agendas to discuss any outputs from these interactions.
The stakeholder engagement programme allowed the Board to meet with key
stakeholders including employees, customers and suppliers throughout the
course of the year. Sufficient time was allocated on Board agendas to discuss
the outputs from these meetings.
This will continue to be an area of focus throughout 2026.
Our stakeholders – pages 84 to 89
Board in action – page 78
Succession planning and talent management
Dedicating sufficient time at Nomination Committee meetings
todiscuss and consider Board, Executive and senior management
succession planning, talent management and future
capabilityrequirements.
Additional Nomination Committee meetings were held in 2025 to consider
Executive Director, Non-Executive Director, and senior management
succession planning, as well as talent management and future capability
requirements for management.
Succession planning will remain a key area of focus in 2026.
Senior management succession planning and talent
management– page 93
Succession planning – page 95
Board papers and agendas
Continue to improve discipline around succinct executive
summaries in Board papers and presentations to allow sufficient
time for discussion and questions from Board members.
This was addressed in 2025 and the Board valued the improvement to the
length and summarisation of Board papers which allowed more effective
discussion at Board meetings.
This will remain an area of focus throughout 2026.
Board activities and decisions in 2025 – page 77
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Board performance review continued
Composition, succession and evaluation
Committee membership
Andy Harrison (Chair)
Mary Barnard
Sue Clayton
Carol Fairweather
Simon Fraser
Linda Yueh
During the year, the Committee has acted in accordance with
its Terms of Reference, which were last updated in February
2024 and can be found at www.SEGRO.com
Letter from the Chair of the
Nomination Committee
Dear shareholder,
I am pleased to present the Nomination Committee
(the Committee) Report for 2025, inwhich we set
out how the Committee has discharged its
responsibilities during the year.
The Committee comprises five of the Independent
Non-Executive Directors and is chaired by myself
as the Chair of the Board.
In this Report we will demonstrate how the
Committee has fulfilled its role of overseeing the
composition of the Board and its Committees,
andmonitoring the balance of skills, experience,
independence and knowledge as well as the
diversity of its members in its broadest sense.
In 2025, the Committee met four times, detailed on
page 76, to consider the items set out below.
Board changes
Appointments
In anticipation of Soumen Das’ planned retirement
inDecember 2025, the Committee worked closely
with the Chief Executive and Group HR Director to
undertake a thorough search for his successor with
the assistance of Russell Reynolds. After a robust
search process, which is detailed further on page97,
the Committee recommended to the Board the
appointment of Susanne Schroeter.
Susanne was appointed as an Executive Director
and Chief Financial Officer on 1 December 2025
and will be subject to election by shareholders at
the upcoming Annual General Meeting (AGM).
Susanne brings a wealth of financial and
pan-European business expertise which
complements the existing skill set of the Board
andwill offer new insights to Board discussions.
Susanne is currently undergoing a comprehensive
induction programme, which will be reported
infurther detail in the 2026 Annual Report.
On behalf of the Committee, I would like to
welcome Susanne to the Board.
We recently announced the appointment of Louisa
Burdett as an Independent Non-Executive Director
with effect from 1 May 2026. Louisa has extensive
financial and risk management experience, further
complementing the Board’s existing skills. Louisa
will stand for election by shareholders at the 2027
AGM. Further details on her appointment and
induction will be included in next year’s Report.
Retirements
Soumen Das retired as an Executive Director
andChief Financial Officer with effect from
31December 2025, allowing for an orderly
handover of responsibilities to Susanne.
On behalf of the Committee, I would like to thank
Soumen for his contribution to the Company
andwish him the very best for the future.
Committee membership
The Committee considered the appointments of
Independent Non-Executive Directors to each of
the three Board Committees and concluded that
they remain appropriate and effective although,
asever, this will be kept under review.
Board succession planning
Succession planning remained a priority for the
Committee throughout the year and you can read
more about our approach on page 95.
Mindful of the tenure of some of our Non-Executive
Directors, namely Sue Clayton and Carol
Fairweather, who are now each serving their final
three-year term (Carol will have served on the
Board for nine years on 1 January 2027, and Sue will
have served for nine years on 1 June 2027), the
Committee has been considering succession
planning for their roles.
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Nomination Committee Report
Board succession planning continued
Careful attention has been given to
maintaining an appropriate mix of skills,
experience, independence and diversity,
aswell as the overall balance of the Board.
In addition to her role as an Independent
Non-Executive Director, Carol also serves
asChair of the Audit Committee and Senior
Independent Director, and succession
planninghas therefore focused particularly
onensuring a smooth and orderly transition
ofthese responsibilities.
Board succession planning will, as ever, remain
a focus for the Committee during2026.
Senior management succession
planning and talent management
In 2025, the Committee, as usual, spent time
reviewing succession planning and talent
management for senior management roles,
including the Executive Committee members
and Leadership team roles, as well as talent
more generally throughout the business.
TheCommittee seesthis as a key priority
toensure we have theright leadership and
people in place to deliver our strategic
objectives and support long-term growth.
The Committee considers succession planning
below Board level essential for maintaining
aneffective leadership pipeline, promoting
diversity, inclusion and equal opportunity, and
enabling an orderly transition of responsibilities
over time.
Board Diversity, Inclusion and
EqualOpportunity Policy
The Board Diversity and Inclusion Policy was
updated in December 2025 and is now titled
the Board Diversity, Inclusion and Equal
Opportunity Policy (the Policy). The Policy
wasreviewed and updated to ensure that it
includes equal opportunity considerations and
to ensure it remains appropriate, effective and
in line with best practice.
You can read more about the updates made to
the Policy, as well as how the objectives set out
in the Policy have been achieved during the
year, on page 96. ThePolicy is also available to
view on the Company’s website at
www.SEGRO.com.
Committee effectiveness
As part of the internal Board performance
review undertaken during the year, detailed
onpages 90 and 91, the operation of each
ofthe Board Committees was considered,
andit was concluded that they continue to
operate effectively and were well led by their
respective Chairs.
An update on the activities of the Committee
was provided to the Board at each
subsequentBoard meeting following
aCommittee meeting.
Looking ahead
In 2026, the Committee will continue to focus
on succession planning, both generally and
with regard to specific key roles for both the
Board and in respect of key talent throughout
the organisation, to ensure that we remain well
positioned for the future.
Diversity, inclusion and equal opportunity
forthe Board and senior management roles
also remains a key item for discussion on
theagenda and we will continue to monitor
progress against achievements of the
agreedBoard and senior management
diversity targets.
If you have any questions on the Nomination
Committee or the contents of this Report,
docontact me at
companysecretariat.mailbox@SEGRO.com.
Andy Harrison
Chair of the Nomination Committee
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Nomination Committee Report continued
What the Committee did in 2025
In addition to its key responsibilities, in 2025 the Committee:
• considered succession planning for Soumen Das, the Company’s former
ChiefFinancial Officer and Executive Director;
• worked closely with the Chief Executive on the recruitment of the new
ChiefFinancial Officer, and recommended the appointment of
SusanneSchroeter to the Board;
• considered succession plans for Carol Fairweather and Sue Clayton,
twoNon-Executive Directors, in anticipation of their nine-year terms
completingin 2027;
• reviewed succession planning and talent management for the Board, senior
management and key roles throughout the organisation more generally; and
• considered and approved the updated Board Diversity, Inclusion and Equal
Opportunity Policy.
Composition, skills and experience
The Board is currently made up of a
Non-Executive Chair, six Independent
Non-Executive Directors and two Executive
Directors, all of whom are equally responsible
forthe effective stewardship and leadership
ofSEGRO.
During the period, the Committee reviewed and
updated the Board skills matrix to assess Board
effectiveness and identify areas where
additional expertise would strengthen its
capabilities. The updated matrix provides a
structured assessment of the skills required
foracollectively effective Board, enabling
evaluation of both current capabilities and
future needs. This approach ensures the matrix
remains fit for purpose in supporting Board
training, succession planning, and the delivery
ofthe Company’s strategic priorities.
In developing the matrix, the Committee noted
the importance of skills in digital, data and cyber
security, as well as Board and Committee
chairing experience. You can review the
updated matrix on page 72.
Using the updated matrix, the Committee
reviewed the skills and experience of the Board
members, as well as the size of the Board as a
whole, and concluded that it was appropriate
insize with the right balance of skills and
experience to fulfil its duties. This will continue
to be kept under review on an annual basis.
Board appointments
The Committee leads the process for the
identification, evaluation and recommendation
of candidates for Board appointments, ensuring
an appropriate balance of skills, experience,
independence and diversity, as well as a
diversepipeline.
The process of Board appointments includes
preparing role specifications, using external
search advisers where appropriate, assessing
candidates on merit against objective criteria,
and ensuring that appointees have sufficient
time to fulfil their roles, with clear expectations
set out at appointment and ongoing disclosure
of commitments.
In 2025, the Committee worked closely with
theChief Executive and Group HR Director to
recommend Susanne Schroeter’s appointment
to the Board, which you can read more about
onpage 97.
Conflicts of interests
The Committee oversees the ongoing review
and management of the Directors’ conflicts of
interest to ensure that any actual or potential
conflicts of interest relating to Directors are
identified, disclosed and authorised prior to
appointment. This supports high standards
ofcorporate governance by promoting
transparency, independence of judgement
andthe integrity of Board decision making.
Induction
On joining the Board, new Directors participate
in a comprehensive induction programme
designed to familiarise them with the Company,
its assets, policies and procedures, and to
introduce them to employees and key advisers,
in order to assist them in becoming effective in
their role as quickly as possible.
As part of the induction process, they are
provided with information on the Group, its
policies and its governance structure by the
Company Secretary.
They will also meet with the Executive Directors,
the other members of the Executive Committee,
the Heads of Functions covering various aspects
of the business, and the Company’s external
advisers which include the valuers, brokers, and
internal and external auditors, during the course
of Board activities.
Training
To ensure the Board continually updates and
refreshes its skills and knowledge, ongoing
training and development support is provided.
The Directors are regularly briefed on:
business-related matters; governance updates;
investor expectations; and legal and regulatory
changes which impact the Company.
During the year, both the Audit and
Remuneration Committees received updates
orbriefings on relevant accounting,
remuneration and regulatory developments,
evolving market trends and changing
disclosurerequirements from external
advisersand internal management.
Directors may also request training on specific
issues with some attending external courses
(often provided by our professional advisers).
From time to time, meetings with specialists
inthe business are arranged for Directors
whomay wish to gain a deeper insight into a
particular topic. The Directors may raise any
training needs with the Chair which helps to
ensure that the training programme meets
theneeds of the Board, individual Directors
andthe business. The Directors have access
tothe advice of the Company Secretary and
independent professional advice is available at
the Company’s expense, if necessary, to enable
Directors in fulfilling their duties and
responsibilities.
During the year, all Board members received
theannual refresher training on the UK Market
Abuse Regulation from the Company Secretary
and were reminded of their ongoing duties and
responsibilities as Directors by our corporate
lawyers, Slaughter and May.
SEGRO Park Gliwice, Einsteina, Poland
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Non-Executive Directors
l
First term
l
Second term
l
Third term
31 December 2025
Carol Fairweather 8 years, 0 months
Sue Clayton 7 years, 6 months
Mary Barnard 6 years, 10 months
Linda Yueh 4 years, 8 months
Simon Fraser 4 years, 8 months
Andy Harrison 3 years, 9 months
Marcus Sperber 1 year, 7 months
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
Tenure
Executive Directors
1 January 2006 16 January 2017 1 December 2025
David Sleath 20 years, 0months
Soumen Das
1
8 years, 11 months
Susanne Schroeter
2
0 years, 1 month
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
Succession planning
The Committee is responsible for the effective
and orderly succession planning of Directors,
both Non-Executive and Executive, the Group
HR Director and the Company Secretary.
It monitors the tenure of Directors to ensure that
it plans sufficiently in advance of retirements
from the Board to ensure orderly succession
ofNon-Executive Directors. In accordance with
the Code, all Directors stand for election or
re-election at each AGM.
Along with considering Board succession,
theCommittee oversees the development
ofastrong pipeline of diverse and talented
individuals below Board level. It reviews regularly
the quality of the Leadership team and senior
managers as it recognises the importance of
creating and developing a suitably talented,
diverse pipeline ready to serve as the next
generation ofleaders.
The Chief Executive, supported by the Group
HRDirector, presents to the Committee on
Leadership team succession planning and the
talent development programme for the wider
workforce. For the Executive Committee and for
roles in the Leadership team, plans are in place
for both sudden, unforeseen absences, and for
longer-term succession. These form the basis of
development plans for our most talented people
and will ensure that, looking forward, we have
the right people to deliverour strategy.
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1  Soumen Das retired from the Board on 31 December 2025.
2 Susanne Schroeter was appointed to the Board on 1 December 2025.
Board diversity, inclusion
andequalopportunity
The Board recognises the benefit and value of
diversity in its broadest sense and believes that,
throughout SEGRO, diversity of perspective and
experience enables more effective discussion
and better decision making. SEGRO is a
pan-European business committed to the
creation of an inclusive culture, where each
individual is given the opportunity to contribute
and use their talents and abilities to their
maximum potential.
We believe a diverse Board, with a broad range
of skills, backgrounds, knowledge and
experience, is a key driver of an effective Board
as it promotes constructive debate and effective
decision making.
The composition of the Board exceeds the
criteria of both the FTSE Women Leaders Review
on gender diversity and the Parker Review on
ethnic diversity. As at 31 December 2025,
20percent were from an ethnic minority
background (including Soumen Das who
retiredfrom the Board on 31 December 2025),
50percent of the Board were female (including
Susanne Schroeter following her appointment to
the Board on 1
December 2025) and two senior
Board positions are now held by women,
strengthening the gender diversity of the Board.
Board Diversity, Inclusion and Equal
Opportunity Policy
The Committee is responsible for monitoring
theeffectiveness of the Policy.
The Policy sets out the Company’s approach to
diversity, inclusion and equal opportunity and
considers how this contributes to SEGRO’s
Group-wide diversity, inclusion and equal
opportunity ambitions. In December 2025,
the Policy was updated to explicitly incorporate
equal opportunity, reinforcing our commitment
to merit-based appointments tothe Board,
Board Committees and senior management
which are assessed against clearlydefined and
objective criteria.
The Policy incorporates a broad range of
diversity factors as set out in the Disclosure
Guidance and Transparency Rules, specifies
diversity targets with which the Board aims to
comply, and considers how the Policy is applied
to the Audit, Nomination and Remuneration
Committees as well as the Board and senior
management. The Committee considers that the
Board and its Committees were in compliance
with the Policy, which remained appropriate and
aligned with best practice, and will keep both
the Policy itself and compliance with it under
periodic review.
Diversity, inclusion and equal
opportunity in Directors’ recruitment
When searching for a Director, the Committee
ismindful of the advantages a diverse Board
brings and ensures that in selecting and briefing
executive search firms, the importance of
diversity, inclusion and equal opportunity
ishighlighted at the outset. The Committee
particularly considers how it describes the skills
and experience needed for the roles as this
helps attract as wide a pool of candidates as
possible. Only executive search firms that have
signed up to the Voluntary Code of Conduct
forExecutive Search Firms will be used in the
recruitment of Directors. In the final selection
decision, all Board appointments are made
onmerit and relevant experience, against the
criteria identified by the Committee with regard
to the benefits of diversity in the widest sense.
Reporting table on sex/gender representation
2
Number of
Board
Members % of Board
Number of
senior
positions on
the Board
3
Number in
executive
management
4
% of
executive
management
Men
5 50 3 6 67
Women
5 50 2 3 33
Not specified/prefer not to say
— — — — —
Reporting table on ethnicity representation
2
Ethnicity
Number of
Board
Members % of Board
Number of
senior
positions on
the Board
3
Number in
executive
management
4
% of
executive
management
White British or other White
(including minority-white groups)
8 80 4 8 89
Mixed/Multiple Ethnic Groups
— — — — —
Asian/Asian British
2 20 1 1 11
Black/African/Caribbean/Black/
British
— — — — —
Other ethnic group
— — — — —
Not specified/prefer not to say
— — — — —
1 The senior management’s direct reports (which include members of the Leadership team) are the next layer of management
below senior management as defined by the Code. This figure differs from the percentage of women in senior leadership roles
disclosed on page 25 which is inclusive of executive/senior management, and not just their direct reports.
2 These tables set out the numerical data required to be disclosed in accordance with UKLR 6.6.6(9) as at 31 December 2025.
Thedata collected from Directors and executive management for the purposes of making this disclosure is provided on a
voluntary basis. The figures include Soumen Das, who retired from the Board on 31 December 2025, and Susanne Schroeter
whowas appointed to the Board on 1 December 2025.
3 Senior positions on the Board include the Chair, Chief Executive, Chief Financial Officer and Senior Independent Director.
4 Executive/senior management comprises the Executive Committee, being the most senior managerial body below the Board,
andthe Company Secretary as defined by the UK Listing Rules and the Code.
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Gender balance of executive/senior
management’s direct reports
1
l
Male (19)
59%
l
Female (13)
41%
Gender balance of total workforce
l
Male (225)
49%
l
Female (238)
51%
Time commitment
As part of the recruitment process, the
significant time commitments of potential
Boardmembers should be disclosed to the
Committee. On appointment, the Chair and
Non-Executive Directors receive a formal letter
of appointment clearly setting out their
expected time commitment to the Company
and any additional future commitments should
not be undertaken without prior notification
tothe Board.
Executive Directors are permitted to hold one
external directorship as approved by the Board.
David Sleath holds one external directorship, at
RS Group plc, and Susanne Schroeter holds one
external directorship, at Zalando SE.
The Committee has considered the additional
commitments of all Directors and has concluded
that each of them has sufficient time to commit
to the Company and are not overboarded. Their
individual contributions are, and continue to be,
important to the Company’s long-term
sustainable success.
For transparency, we disclose all significant
external appointments held by our Directors
intheir biographies on pages 74 to 76;
however,it is recognised that many of these
appointments do not require the same time
commitment as appointments to publicly
listedcompanies.
Directors’ independence
The Board is made up of a majority of
Independent Non-Executive Directors, which
promotes the good governance of the
Company by ensuring that the Executives are
held to account and are not able todominate
Board decision making.
The Committee considers each of the
Non-Executive Directors to be independent
incharacter and judgement in accordance
withthe criteria set out in the Code.
The Chair was considered independent on
appointment and the Committee still considers
him to be so.
Prior to their appointment, the Directors
mustdisclose any actual or potential conflicts
ofinterests and any future business interests
that could result in a conflict must not be
undertaken without the prior notification to,
andauthorisation of, the Board. The Board
considers and approves the conflicts of
interestas declared by any Director at each
Board meeting.
1 The figures include Soumen Das, who retired from the Board
on 31 December 2025, and Susanne Schroeter, who was
appointed to the Board on 1 December 2025.
Directors’ effectiveness
The performance and individual contribution
ofeach of the Directors is reviewed annually as
part of the Board performance review process,
which this year was an internal review led by
theSenior Independent Director and overseen
by the Chair. Further details can be found
onpages90 and 91.
The review concluded that the Chair continued
to demonstrate strong and effective leadership,
conducted Board meetings in a well-structured
and inclusive manner, and remained effective in
fulfilling the responsibilities of his role.
The Non-Executive Directors agreed that the
Chief Executive continued to demonstrate
energy and commitment in his role and provides
strong leadership to an effective Executive team.
The performance of the other Non-Executive
Directors is appraised by the Chair and Senior
Independent Director, whilst the Chief Executive
provides feedback on the Chief Financial Officer.
Director election/re-election
attheAGM
Having considered the skills and performance
ofeach Director, and whether they continue
tobe effective and demonstrate commitment
totheir roles, the Committee makes a formal
recommendation to the Board that they
beelected/re-elected as appropriate.
The Committee has concluded that all Directors
continue to be effective in their roles and
accordingly will submit themselves for election/
re-election as appropriate by shareholders
atthe2026 AGM.
For information on how each of the Directors
contributes to the long-term success of the
Company, see their biographies on pages 74
to76.
Susanne’s appointment
In 2025, the appointment of a successor
Chief Financial Officer was a key focus of
the Committee. As this is an Executive role,
the Committee worked closely with the
Chief Executive and Group HR Director to
agree a detailed specification, taking into
consideration the experience, technical
knowledge, and leadership characteristics
required for the position. Russell Reynolds,
an independent external search firm with no
connections to the Board or its individual
Directors, were appointed to support in the
recruitment process. They are a signatory
tothe voluntary Code of Conduct for
Executive Search Firms, as required by
theBoard Diversity, Inclusion and Equal
Opportunity Policy, and the Committee
wascognisant of the Policy requirements
throughout the recruitment process.
Russell Reynolds commenced the search
for a diverse long list of potential
candidates, which was reviewed by the
Chief Executive, Group HR Director, and
theCommittee, following which the
Committee Chair met with the Chief
Executive and Group HR Director to receive
and discuss feedback. A shortlist was
agreed, and, following interviews and
assessment ofthe candidates’ credentials,
Susanne Schroeter was identified as the
preferred candidate. The Committee
recommended to the Board that she be
appointed as an Executive Director and
Chief Financial Officer, subject to approval
by shareholders at the 2026 Annual General
Meeting. TheBoard subsequently approved
the recommendation, and Susanne joined
us asChief Financial Officer with effect
from 1December 2025.
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l
Independent Chair (1)
10%
l
Independent Non-Executive Directors (6)
60%
l
Executive Directors (3)
1
30%
Audit, risk and internal control
Committee membership
Carol Fairweather (Chair)
Sue Clayton
Simon Fraser
Linda Yueh
During the year, the Committee has acted in accordance
with its Terms of Reference, which were last updated in
February 2026 and can be found at www.SEGRO.com
Letter from the Chair of the
Audit Committee
Dear shareholder,
As Chair of the Audit Committee (the Committee),
Iam pleased to present the Committee’s report
for2025.
Over the following pages you will see how the
Committee has discharged its responsibilities,
aswell as other areas which it has focused on.
Composition
The Committee continues to be made up entirely
of Independent Non-Executive Directors, each of
whom has considerable commercial knowledge
and broad industry expertise.
I satisfy the requirement of the UK Corporate
Governance Code 2024 (the Code) to bring
recentand relevant financial experience to the
Committee, and the Committee also benefits from
the additional financial expertise and experience
provided by both Simon Fraser and Linda Yueh as
well as the wealth of property experience brought
by Sue Clayton.
There were no changes to the composition of the
Committee during the year, and the Board remains
satisfied that theCommittee as a whole has the
relevant competence and appropriate balance of
skills andexperience to properly discharge
itsduties.
Meetings
The Committee met formally three times during
the year (although Committee members met less
formally a number of times throughout the year to
consider the external auditor tender) and provided
updates to the Board on its activities at each
subsequent meeting. We believe this is the
appropriate amount of scheduled meetings,
however if the need arises, additional formal
meetings are convened. In addition to the regularly
scheduled meetings, the Committee members
alsoattended a workshop hosted by the external
auditor, PricewaterhouseCoopers LLP (PwC),
onTechnology in Audit in order to stay abreast
ofdevelopments in this evolving area.
As usual, our external and internal auditors joined
the meetings throughout the year, together with
anumber of employees from across the business.
Wecontinue to find this incredibly valuable as it
allows us to see the pool of talent within the
Company and facilitates a greater depth of
discussion and debate on some specialist topics.
In 2025, we were joined by:
• the Head of Finance for the Group and Group
Financial Controller to consider the accounting
judgements and treatments that have been
adopted for particular transactions;
• the Head of Legal and Company Secretary,
whoprovided updates on relevant legal and
regulatory matters as well as the work of the
Group Legal function;
• the Head of Corporate Finance and Director
ofGroup Tax, who provided an update on
developments in the current tax landscape,
theGroup’s tax strategy and an overview of
significant tax issues or changes that could
potentially impact the Group’s tax charge;
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Audit Committee Report
Meetings continued
• the Director of Technology & Architecture, who
delivered his annual update on developments
in cyber security threats (including from AI)
andthe continued investments by the
Company in response, and the current status
of cyber security defences; and
• the Head of Insurance and Risk, who updated
the Committee on the risk management
process as well as the work undertaken
toprepare for compliance with the new
Provision 29 of the Code.
Regular updates were also provided to the
Committee on internal controls and anti-bribery
and corruption safeguards.
In addition to scheduled meetings, I speak
regularly with the Chief Financial Officer, Headof
Finance for the Group, Group Financial Controller
and Head of Legal and Company Secretary to
discuss any topical issues that should be brought
to the attention of the Committee.
Areas of focus in 2025
A comprehensive list of the Committee’s
activities can be found on page 100.
A major area of focus for the Committee during
the year was the tender of the external auditor
which is detailed further on page 104. Following
a competitive tender process in line with the
recommendations of the FRC’s Audit
Committee and the External Audit: Minimum
Standard, the Committee has recommended
the reappointment of PwC as external auditor.
As well as the external auditor tender, some
specific highlights this year included detailed
updates on:
• the Company’s risk management and internal
controls framework in preparation for the
introduction of Provision 29 of the Code,
which comes into effect for the 2026
financialyear;
• the work undertaken to ensure compliance
with the Economic Crime and Corporate
Transparency Act 2023, including the failure
to prevent fraud offence; and
• the evolving requirements for the Group
inrelation to the emerging EU and UK
sustainability reporting requirements.
Committee effectiveness
As part of the internal Board performance
review, the operation of the Committee was
considered (see pages 90 and 91) and was
deemed to be operating effectively.
Discharge of responsibilities
The quality of debate and challenge amongst
the Committee, management and the internal
and external audit teams, together with the
comprehensive information provided to the
Committee, has assisted us in appropriately
discharging our responsibility.
I would like to thank all those who have
contributed to the Committee this year
fortheirefforts.
Looking ahead
In 2026, in addition to our usual work, the
Committee will focus on:
• continuing to monitor the approach and
progress made to ensure the Company’s
compliance with Provision 29 which came
intoeffect on 1 January 2026;
• monitoring the transition of Cushman &
Wakefield as the Company’s UK valuers;
• keeping under review evolving sustainability
reporting requirements in both the EU and
UK;and
• monitoring the progress of preparation for,
and the implications of, applying the new
accounting standard IFRS 18 Presentation
andDisclosure in Financial Statements, which
willcome into effect on 1 January 2027.
If you have any questions on the Audit
Committee or the contents of this Report,
docontact me at
companysecretariat.mailbox@SEGRO.com.
Carol Fairweather
Chair of the Audit Committee
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What the Committee did in 2025
Throughout the year, the
Committeehas:
• reviewed and monitored the integrity
oftheFinancial Statements including
reviewing significant financial reporting
judgements and estimates made by
management, to ensure that the quality
ofthe Company’s financial reporting
ismaintained, in the Company’s Half-
andFull-Year Financial Statements;
• assessed the objectivity, independence
andcompetence of the external valuer of
the Group’s property portfolio and gained
assurance around the valuation process;
• ensured compliance with applicable
accounting standards, monitoring
developments in accounting regulations
asthey affect the Group and reviewed
theappropriateness of accounting policies
and practices in place;
• ensured the processes followed to support
the making of the going concern and
viability statements remained robust
andwere correctly followed;
• advised the Board on whether the process
supporting the preparation of the Annual
Report taken as a whole, is appropriate
toallow the Board to conclude that the
Annual Report is fair, balanced and
understandable and provides the
information necessary toshareholders to
assess the Group’s position, performance,
business model andstrategy;
• monitored matters relating to tax,
includingREIT status and other significant
open matters;
• monitored the effectiveness of the Group’s
risk management systems and considered
theadequacy of the process being
undertaken to identify risks and mitigate
the exposure of the Group to them;
• reviewed the governance process
andcontrols in place for large and
complexprojects;
• considered the approach taken to prepare
forcompliance with the new Provision 29
oftheCode;
• reviewed cyber security processes and
thecontinued investment in this area to
respond to increasing trends in cyber
threats, including those from AI;
• ensured appropriate safeguards were
inplace for the detection of fraud and
prevention of bribery. This extends
toresponsibility for overseeing and
monitoring the Group’s Anti-Bribery
andCorruption policies and procedures
contained in the Company’s Code of
Business Conduct and Ethics;
• reviewed the Company’s key legal
mattersto ensure risk is being
appropriately managed andmitigated;
• reviewed the adequacy of internal
financialcontrols and broader internal
control systems;
• analysed and challenged the results of
internal audit reviews and management’s
plans to resolve any actions arising from
them, and further scrutinised the outcomes
ofcertain of those actions, including
receiving detailed updatesfrom the
Procurement and HR functions;
• led the external auditor tender and
recommended to the Board the
reappointment of PwC as external auditor;
• examined the performance of the external
and internal auditors, their objectivity,
effectiveness and independence, as well as
the terms of their engagement and scope
of the external and internal audit plans;
• reviewed and re-approved the Policy
forApproval of Non-Audit Fees; and
• monitored the ratio and level of audit to
non-audit fees paid to the external auditor
and agreed their remuneration for the year.
Financial reporting process
A key area of responsibility for the Committee
isthe monitoring of the integrity of the
Company’s Financial Statements and any
formalannouncements relating to the
Company’s financial performance, as well as
reviewing any significant financial reporting
issues and judgements contained therein.
The Group has long-established internal controls
and risk management systems in relation to the
process for preparing the Financial Statements.
Various checks on internal financial controls take
place throughout the year, including internal
audits which are detailed further on page 104.
Developments in accounting regulations and
best practice in financial reporting are
monitored by the Company and, where
appropriate, reflected in the Financial
Statements. Training is also provided to the
finance teams and the Committee is kept
appropriately informed.
The financial reporting from each business
(UKand Continental Europe) is reviewed
bytheHead of Finance for the business,
followingsubmission by the regional finance
teams. The results of each business are subject
to further review by the Group Finance function,
including senior members of the Group Finance
team, before being consolidated. Thedraft
consolidated statementsare reviewed by
variousindividualsincluding those independent
ofthepreparer.
The review includes checking consistency
internally, withother statements and with
internal accounting records.
The Committee receives reports from
management and the external auditor on
significant judgements, changes in accounting
policies, and other relevant matters relating
tothe consolidated Financial Statements.
The Committee and the Board review the draft
consolidated Financial Statements.
Viability statement and
goingconcern
The Committee is responsible for ensuring that
the process put in place to allow the Board to
make the viability statement on page 45 remains
robust, in line with market practice andis
correctly and properly followed.
The Committee reviewed the process which
included extended scenario analysis and is
comfortable with the process followed to make
the viability statement and has confirmed this
tothe Board.
The Committee reviewed the recommendation
setting out the support for adopting the going
concern basis in preparing the Financial
Statements. The Committee confirmed to
theBoard that the recommendation was
appropriate. The Board’s statement is set
outonpage 42.
Fair, balanced and
understandable
The Code requires the Board to confirm that it
considers that the Annual Report, taken as a
whole, is fair, balanced and understandable
andprovides the information necessary for
shareholders to assess the Company’s position,
performance, business model and strategy.
In order to enable the Board to make this
confirmation, the Audit Committee has
oversight of the process which has been
followed, whereby the section owners and an
independent reviewer confirm that in their
opinion and against an agreed list of criteria
theAnnual Report is fair, balanced
andunderstandable.
These criteria include:
• is the whole story presented, with key
messages appropriately reflected?;
• does the Report properly provide the
necessary information, with a good level of
consistency, for stakeholders to assess
SEGRO as a business?; and
• is the Report presented in straightforward
language, easy to understand and within
aclear framework?
The Committee reviewed the process that
management had undertaken to make the
statement, which included regular meetings
ofthe Annual Report and Accounts Working
Group during the drafting process to ensure
aconsistent approach, and confirmed to the
Board that the processes and controls around
the preparation of the Annual Report are
appropriate, robust and consistent.
The fair, balanced and understandable
statement is made on page 127.
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Significant judgements made by the Committee in 2025
Significant matter
The action taken
Valuation of the property portfolio
Valuation is central to the business’ performance and is a significant estimate
forthe Committee as it is inherently subjective, because the valuer must make
assumptions and judgements in reaching its conclusions.
This is a recurring risk for the Group as it is key to its IFRS profitability, balance
sheet portfolio value, net asset value, total property return, and employee
incentives. It also affects investment decisions and the implementation of
theCompany’s Disciplined Capital Allocation Policy.
It is included on the Risk Register as a potential key business risk.
The Committee ensured that there was a robust process in place to satisfy itself that the valuation of the property
portfolio by CBRE, a leading firm in the UK and Continental European property markets, was carried out
appropriately and independently.
The Chair of the Audit Committee met separately with CBRE in advance of the Committee meetings to review the
valuation process in detail and ensure the valuer remained independent, objective and effective.
Given the significance of this judgement, as in previous years, the full Board also met twice with CBRE to review,
challenge, debate and consider the valuation process; understand any particular issues encountered in the
valuation; understand the impact of climate change and sustainability requirements on valuations; and discuss the
processes and methodologies used.
The auditors also meet with the valuers, and they use the services of their own in-house property valuation expert
totest the assumptions made by CBRE. They report to the Audit Committee on their findings.
The Committee confirmed that it was satisfied that the valuation was not subject to undue influence and had
beencarried out fairly and appropriately, and in accordance with the industry valuation standards, and therefore
suitable for inclusion in the Financial Statements.
For details of the Group’s properties and related accounting policies see Note 1 and Note 13 of the Financial
Statements. For details of the results of the valuation see Note 8 of the Financial Statements.
For further information see
page 130
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External auditor
PricewaterhouseCoopers LLP (PwC) has been
the Company’s external auditor since the 2016
audit, and the Committee continues to enjoy
aconstructive working relationship with them.
During the year, the Committee led the re-
tender of the external auditor as stipulated by
current regulation that requires a tender every
10 years, following which it recommended
thatPwC be reappointed for a further term.
Thetender process is detailed in full overleaf.
Richard Porter has been the external audit
partner since 2023. The Committee Chair has
regular discussions with Richard and his PwC
colleagues to consider matters as they arise
throughout the year and the Committee
regularly meets privately with Richard to discuss
PwC’s work and observations on the Company.
No areas of concern were raised during the year.
Oversight
PwC presented their audit plan for the year
which the Committee considered and approved.
The key areas of risk, which were primarily
identified as areas of judgement and complexity,
were highlighted by PwC and were consistent
with those areas identified by the Committee.
The level of audit materiality was also discussed
and agreed.
PwC presented a detailed report of their audit
findings at the year end, which was reviewed
and discussed. A review of the external auditor’s
report was also undertaken by the Committee
atthe half year. As part of the reviews the
Committee probed and challenged the work
undertaken and the findings and the key
assumptions made, with particular attention
tothe areas of audit risk identified.
Independence
The Company complies with the Competition
and Markets Authority Order 2014 relating to
audit tendering and the provision of non-audit
services. There are no contractual obligations
which restrict the Committee’s choice of
external auditor or which put in place a
minimum period for their tenure. Prior to the
re-tender in 2025, the external audit was last
tendered in 2015 following which the auditor
changed in 2016 from Deloitte LLP to PwC.
Remuneration
The Committee considers the remuneration of
the external auditor at least on a semi-annual
basis and approves its remuneration. It also
keeps under close review the ratio of audit
tonon-audit fees to ensure that the
independence and objectivity of the external
auditor are safeguarded.
In 2025, fees for audit services amounted to
£1.53 million and the non-audit fees amounted
to £0.08 million. The reduction in non-audit fees
from the prior year reflects a change in scope
under the Corporate Sustainability Reporting
Directive, which meant that work previously
carried out by PwC in relation to this reporting
was no longer required in 2025.
The non-audit fee for 2025 equates to 5 per cent
of the average audit fees of the last threeyears.
The chart below sets out the ratio of audit to
non-audit fees for each of the past three years:
Audit fees (£m)
1.53
1.58 1.39
Non-audit fees (£m)
0.08
0.20 0.19
Ratio of non-audit
fees to audit fees (%)
5
13 14
2025
2024 2023
The Committee has concluded that PwC
remains independent and objective, and that
thelevel of non-audit to audit fees is acceptable
for 2025. PwC has provided written confirmation
of its independence to the Committee.
We have voluntarily provided details on the fees
relating to the audit of the Group’s SELP joint
venture with PSP Investments, for which PwC
isthe auditor, in Note 6(ii) to the Financial
Statements. The Committee has no oversight
orcontrol over these fees as the SELP joint
venture operates totally independently and
isnot controlled by the SEGRO Group or the
Committee. The fees are provided solely for
information purposes and do not form part
ofthe audit fees, nor are they included in the
calculation to determine the ratio of audit to
non-audit fees on an annual or three-year basis
for the SEGRO Group.
Policy for approval of non-audit fees
The Committee considers the Policy for
Approval of Non-Audit Fees (the Policy) on an
annual basis to ensure that it remains fit for
purpose.
The Policy, which is available on our website
atwww.SEGRO.com, was updated in
December2025.
The Committee is satisfied that the Policy
isappropriate and in line with industry
bestpractice.
The Policy sets out the very limited
circumstances where PwC may be appointed
tocarry out non-audit services but only with
theprior consent of the Committee or the
Committee Chair, through delegation of
authority from the Committee. There must be
anobvious and compelling reason why PwC
should be appointed and there should be no
threat to the independence of PwC.
The impact on non-audit to audit fees must also
be considered, and fees incurred for non-audit
work must not exceed 70 per cent of the
average of the audit fees paid for the last three
consecutive years. All non-audit fees are
reported to the Committee.
Effectiveness
The Committee assesses the effectiveness
ofthe external audit process on an annual
basis,by taking into account the views of
management involved in the audit and by
reviewing a number of factors including:
• performance in discharging the audit
andhalf-year review;
• independence and objectivity;
• robustness of the audit process, including
how the auditor demonstrated professional
scepticism and challenged management’s
assumptions particularly in relation to the
valuation of the Group’s portfolio;
• the quality of service and delivery, including
appropriate resources and skills for the
complexity of SEGRO’s audit; and
• remuneration.
The Committee also noted the results of the
PwC Audit Quality Review inspection results
2024/25.
Having considered the above, the Committee
believes the audit to be effective with an
appropriate level of challenge.
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External auditor continued
External auditor tender
During the year, the Committee completed a
competitive tender process in accordance with
the FRC’s Audit Committees and the External
Audit: Minimum Standard.
A subcommittee comprising members of the
Committee and led by the Committee Chair
wasestablished in 2024 to oversee the tender
process and make a recommendation to
theCommittee.
During 2024, following review and consideration
of a number of prospective audit firms
(including challenger firms), the Committee
invited a selection of firms to participate in a
formal audit tender. Two firms elected to
participate, with other firms declining due to
independence or capacity challenges. The two
firms were invited to submit a proposal in 2025
and both were provided with appropriate and
equal access to information andkey
stakeholders, and were assessed against
transparent, non-discriminatory criteria with a
clear focus on audit quality.
A tender panel comprising members of the
sub-committee and senior members of
thefinance team reviewed the tender
documentation and evaluated the firms’
writtenproposals and formal presentations.
The evaluation considered
• overall audit quality;
• the level of independent challenge expected
and demonstrated;
• knowledge and experience of the real
estatesector;
• understanding of SEGRO’s business and
associated risks;
• capability and competence of the proposed
lead partner and audit team, including
specialist resources;
• pan-European capability;
• the proposed audit approach, including
reliance on controls and the use of
technology (including AI) and data analytics;
• the approach to resolving judgemental issues
and the quality and availability of technical
accounting resources;
• proactivity and innovation, including how the
audit could evolve over time;
• communication and reporting;
• value-added insights; and
• the commitment and motivation
demonstrated throughout the tender process.
At the conclusion of the process, the
Committee, based on the recommendation of
the sub-committee, determined that PwC was
best placed to deliver a high-quality,
independent audit.
Accordingly, the Committee recommended
tothe Board that PwC be reappointed as
external auditor for the 2026 financial year.
Thisrecommendation was considered and
thenaccepted by the Board, and will be put
toshareholders at the forthcoming AGM.
Internal auditor
The Committee believes that given the
Company’s size and structure, using a third
party to perform the internal audit function
continues to be the most appropriate model.
This provides independent challenge of
management and gives access to a wide range
of expertise.
KPMG has performed the role since its
appointment in 2007 and reappointments in
2014 and 2022 following a tender.
During their tenure, there have been a number
of rotations of lead partners and audit managers
to ensure that a fresh perspective is given, and
their independence and scrutiny are maintained.
Topics included in the internal audit plan for
2025 were selected based on a review of the
Group’s principal risks, the timing of the
previous audit and advice on market insights
from KPMG. Significant areas of risk are subject
to internal audit on a cyclical basis.
The proposed internal audit plan for 2025 was
considered and approved by the Committee in
December 2024, and was kept under review
during the course of the year.
Internal audits during 2025 included the
following:
• data management and governance;
• REIT and SIIC compliance;
• business continuity planning and disaster
recovery;
• acquisitions and disposals of investment
properties;
• Human Resources;
• Payroll;
• Procurement; and
• IT Vendor management.
Each internal audit during 2025 confirmed that
no significant control issues were identified.
However, a number of process and minor
control improvement points were identified
withfollow up actions and timelines which
wereregularly monitored by management
andtheCommittee.
Feedback on the performance of KPMG for each
internal audit is given by the Company and
waslargely positive and no areas of particular
concern have been brought to the Committee’s
attention. The lead KPMG partner attends
Committee meetings to present KPMG’s report
and the Committee also meets privately with
him during the year. No matters of concern were
raised in the private meetings.
Effectiveness
The Committee believes that both the process
for determining the internal audit programme,
and the programme itself, are appropriate
andeffective, and as in previous years the
programme will be amended during the year
ifrequired to react to any new events
orinformation.
The Committee is satisfied that the internal audit
function continues to perform effectively.
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Valuers
The single most important judgement that the
Committee and the Board has to make is the
value of the Group’s portfolio. The Committee
isassisted in reaching this judgement by its
external valuer, CBRE, who have held this
position since 2012. CBRE was reappointed
in2021 for a further four-year term, and the
Committee believes that it continues to be
effective in its role.
The effectiveness of the Group’s valuers is
assessed through regular meetings during the
year with the Chair of the Audit Committee
andsupplemented by additional sessions with
management, which focused on the following:
• independence and objectivity;
• experience and qualification of the
valuationteam;
• consistency of approach across each of the
countries in which the Group operates; and
• quality of data and materials, including the
two presentations to the Board.
As a result, the Committee concluded that the
external valuers performed to a high standard,
were independent, and that the well-run process
delivered a robust set of valuations.
The new RICS requirement for the mandatory
periodic rotation of UK valuers, will come into
effect for theGroup’s UK-based assets for the
June 2026 valuation. In December 2024, the
Board considered and agreed the proposed
approachand timeline for the tender
processfor new valuers for the UK portfolio.
Anextensive and competitive tender process
was undertaken by management during 2025.
Five firms were invited to submit written
proposals following which a shortlist of
candidates progressed to panel interview with
members of senior management from across
the business in order to provide differing
perspectives. A recommendation was
subsequently made to appoint Cushman &
Wakefield as the valuers of the UK portfolio
fromthe June 2026 valuation, which was
approved by the Board. The Board further
agreed to retain CBRE as the valuer for the
Continental European portfolio, as permitted
bythe RICS requirement. On-boarding of
Cushman & Wakefield began in 2025 in order
toprepare for the change and the Committee
will monitor the transition to the new UK
valuersduring 2026.
Internal controls and
riskmanagement
Risk
The Board recognises that effective risk
management is key to the long-term sustainable
success and future growth of the business and
the achievement of the Group’s strategic
objectives (see pages 56 to 68). It is ever aware
of the need to ensure that new and emerging
risks, as well as the more established principal
risks, are adequately managed and mitigated.
Risk management is therefore embedded in the
Company’s decision making and culture, and
robust systems have been put in place to ensure
this remains the case.
There is an ongoing process for identifying,
evaluating and managing the principal risks
faced by the Group, which has been in place
during the year, together with the means for
identifying those emerging risks which may
impact the Group in the future. These emerging
risks are discussed throughout the business by
the appropriate working groups, conducting
both horizon scanning and discussions at a
more granular level. The Group Risk Committee
monitors and reports on the Company’s
approach to risk management as detailed
further on pages 56 to 58.
The Board assumes responsibility for the
effective management of risk across the Group,
determined by its risk appetite, as well as
ensuring that each business area implements
appropriate internal controls. The Committee
reviews regularly the effectiveness of the risk
management process on behalf of the Board
and is satisfied that it remains robust for the
financial year in question and up to the date
ofthis Annual Report.
Internal controls
The Committee is responsible for reviewing the
adequacy and effectiveness of internal control
systems (covering all material controls including
financial, operational and compliance controls
and risk management systems) on behalf of
theBoard.
At each meeting, the Committee receives
anupdate on internal controls and regularly
reviews the adequacy and effectiveness of
theGroup’s internal control systems through
various activities including:
• reviewing the effectiveness of the risk
management process;
• reviewing and challenging management’s
self-assessment of the internal controls
framework; and
• reviewing the work undertaken by the
internaland external auditor, in relation
tointernal controls.
The Committee also receives at each meeting
an anti-bribery and corruption report to enable
itto satisfy its responsibility for ensuring that
adequate safeguards for the prevention of
bribery and corruption and detection of fraud
are in place. Details of how matters of concern
can be reported and will be investigated are on
page 80. No matters of concern were reported
during the year, either through the Company’s
independent whistleblowing reporting service,
Safecall, or through internal channels.
The Group’s internal auditor, KPMG, also
facilitated a Fraud Vulnerability workshop
withanumber of stakeholders from across the
business, to discuss the key fraud risks that
could potentially impact SEGRO and the
mitigating controls in place. An update was
provided to the Committee at the December
2025 meeting.
Outcome
The framework for monitoring and maintaining
internal controls is considered appropriate for
aGroup of SEGRO’s size and complexity and
isdesigned to provide reasonable assurance
against material misstatement or loss.
On the basis of the Committee’s work,
itconfirms that it has not been advised of,
oridentified, any failings or weaknesses which
itregards to be significant in relation to the
Group’s internal control systems during the year.
It also confirms that the Group’s internal control
systems have been in place for the year under
review and up to the date of approval of this
Annual Report and are in accordance with the
Guidance on Risk Management, Internal Control
and Related Financial and Business Reporting
issued by the Financial Reporting Council.
Provision 29
The requirement of Provision 29 of the Code
willcome into effect in the 2026 financial year.
The Group Risk function, with support from
theinternal auditor, has led the work to ensure
the Board will be in a position to comply with
this provision and has provided updates to the
Committee during the year.
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Ensuring fair and responsible pay
Committee membership
Simon Fraser (Chair)
Mary Barnard
Sue Clayton
Carol Fairweather
Linda Yueh
During the year, the Committee has acted in accordance
with its Terms of Reference, which were last updated in
February 2024 and can be found at www.SEGRO.com
Letter from the Chair of the
Remuneration Committee
Dear shareholder,
On behalf of the Remuneration Committee
(theCommittee), I am pleased to present our
Remuneration Report for 2025.
The role of the Committee is to determine
theremuneration policies and practices which
promote the long-term sustainable success of the
Company, which are aligned with the Company’s
Purpose and Values and its strategy.
The following pages set out how the Committee
has discharged its responsibilities, as well as
otherkey areas of focus in 2025.
Composition and Committee meetings
The Committee continues to be comprised entirely
of Independent Non-Executive Directors. There
havebeen no changes to the composition of the
Committee during the year, providing stable
oversight of the Company’s remuneration.
The Committee had three scheduled meetings
during the year and two additional meetings.
Detailsof Committee member attendance at these
meetings can be found on page 76. The Chief
Executive, Chief Financial Officer and the Group HR
Director attend Committee meetings by invitation
asrequired, except when their own remuneration
isbeing discussed. The Committee’s external
remuneration adviser also attends Committee
meetings as required. Following each Committee
meeting, I provide an update to the Board on the
Committee’s activities.
Key areas of focus in 2025
A major area of focus for the Committee in 2025
was the renewal of our Directors’ Remuneration
Policy (the Policy), which was submitted to
shareholders for approval at the 2025 Annual
General Meeting (AGM). Thenew Policy included
an increase in annual bonus opportunity and was
supported by c.97 per cent of shareholders at
theAGM.
Another area of focus was the approval of the
exitarrangements for Soumen Das, who retired as
an Executive Director and Chief Financial Officer
on 31 December 2025, and the approval of the
recruitment package for Susanne Schroeter,
whowas appointed as an Executive Director and
Chief Financial Officer on1December 2025.
During the year, the Committee also approved
Executive Directors’ variable remuneration
payments in respect of 2024, having assessed
performance against targets and confirmed that
the outcomes were a fair reflection of business
performance throughout the respective
performance periods, and annual salary increases
for the year ahead.
The Committee also approved the grant of
awardsunder the Company’s all-employee share
schemes and reviewed the wider workforce
remuneration framework to ensure this remained
aligned withthestructure of remuneration for
theExecutive Directors.
Remuneration and alignment to
Company performance
As covered elsewhere within this Annual Report,
SEGRO delivered a strong operational performance
during 2025, contracting a record level of new rent
and making positive progress against our key
operating metrics.
This was despite a broader business environment
that was once again impacted by periods of
macroeconomic and geopolitical volatility,
including the uncertainty caused by potential
tariffs, which resulted in prolonged decision
making by occupiers for much of the first half
ofthe year.
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Directors' Remuneration Report
Remuneration and alignment to
Company performance continued
SEGRO leveraged the expertise of its market-
leading operating platform, with its strong
customer relationships and extensive asset
management experience, to deliver strong
performance during this period of lower demand
for new space. Active asset management
initiatives resulted in the capture of a significant
amount of reversion, retention of customers,
increased occupancy and strong earnings growth.
As some of this uncertainty abated, momentum
started to build once again in occupier markets,
as the longer-term structural trends returned to
the fore and supported increased demand for
well-located, modern and sustainable space.
This resulted in increased enquiries across all of
our markets and translated into a strong end to
the year in terms of lease and pre-let signings.
As a result of this activity, adjusted profit before
tax (Adjusted PBT) increased by 8.3 per cent
to£509 million and adjusted earnings per share
increased by 6.1 per cent to 36.6 pence.
Adjusted NAV per share increased to 925 pence,
and the Company has maintained a strong
balance sheet with a loan to value ratio of
31percent. The Board is recommending a final
dividend of 21.4 pence per share, making the
full-year dividend 31.1 pence per share, an
increase of 6.1 per cent on the prior year.
Further information on the Company’s
performance during the year can be found in the
Chief Executive’s statement on pages 12 to 17 and
the Strategic Report on pages 11 to 68.
A summary of the Group’s key financial metrics
relating to Executive remuneration in 2025
canbe found on page 109 and information
regarding the alignment of remuneration
outcomes to our strategy and performance
canbe found on pages 110 and 111.
Remuneration in 2025
Directors’ remuneration in 2025 was paid in line
with the Company’s Policy, which was approved
by shareholders at the 2025 AGM.
The remuneration framework for both our
Executive Directors and the wider workforce
isaligned with the strategic direction and
performance of SEGRO as well as the interests
of our stakeholders, and this is set out on
pages110 and 111.
As indicated on page 118, the 2025 annual bonus
for the wider workforce is aligned to Group-wide
Adjusted PBT, rent roll growth (RRG), and
Responsible SEGRO (ESG) measures, as well as
the achievement of personal objectives. The
weighting of the personal performance measure
varies based on seniority and makes up a larger
percentage of the overall bonus for more junior
employees, allowing for sufficient opportunity to
recognise individual performance in the annual
bonus structure.
Variable remuneration
Taking into account our operational results
andour performance versus the financial
andnon-financial KPIs that were within
management’s control during a year of
continuedmacroeconomic and geopolitical
challenge, the Committee has confirmed the
following performance-related payments to
theExecutive Directors in respect of 2025:
2025 annual bonus
The annual bonus was subject to Adjusted PBT
(37.5 per cent), RRG (37.5 per cent) and ESG targets
(25 per cent). Based on performance during the
year, the 2025 annual bonus payment will be
73.8per cent of maximum (see page 114 formore
details). Since the ESG metrics were introduced
into the bonus structure in 2022, this isthe first year
that the Company has achieved a100 per cent
payout against its ESG targets.
2023 LTIP performance
The LTIP structure is designed to ensure that
senior management reward is well aligned
withshareholder returns. Vesting is calculated
by reference to three equally-weighted
performance conditions. Based on actual
totalshareholder return (TSR) over the
performance period, and on the total property
return (TPR) and total accounting return (TAR)
data currently available, it is expected that
noneof the 2023 LTIP will vest. Final vesting
under the 2023 LTIP will be determined once
theTPR and TAR information is available in
quarter two of2026. Any difference in the
vesting outcome will be disclosed in the 2026
Annual Report. Anyshares that vest as a result
ofthe 2023 LTIP awards are subject to a two-
year post-vesting holding period.
The performance period of January 2023 to
December 2025 coincided with a period of
geopolitical uncertainty and macroeconomic
volatility, with high inflation leading to high
interestrates, and a resultant impact on investment
and occupier markets. After very strong
outperformance by SEGRO up to the endof 2022,
the wider industrial and logistics property sector,
and SEGRO in particular, sawahigher correction
than other property sub-sectors and businesses
inthe following three years. Accordingly, SEGRO
underperformed on TSR and TAR relative to other
listed UK REITs. TPR has underperformed its
benchmark mainly due to SEGRO’s weighting to
prime assets, which have a lower income yield but
higher growth potential which should offer the
opportunity for better future returns.
Exercise of discretion and judgement
When approving the formulaic outcomes under the
annual bonus and LTIP, the Committee considered
whether or not they were a fair reflection of the
underlying performance of thebusiness.
The Committee was satisfied that the performance
conditions were reflective of business performance
in the respective performance periods and that no
overriding adjustment to the outcomes would have
been appropriate. Therefore, the Committee did
not exercise discretion in relation to the operation
of the Policy during the year.
The Committee is comfortable that the actions
taken on pay during the year across the
Company were appropriate and balanced the
interests of all stakeholders, and that the Policy
operated as intended.
2025 LTIP award
The Chief Executive and former Chief Financial
Officer, Soumen Das, received an LTIP award
inFebruary 2025. The LTIP award will vest
following a three-year performance period, based
on performance against three equally-weighted
performance conditions in line with the Policy.
Further details can be found on page116.
The Chief Financial Officer, Susanne Schroeter,
received an LTIP Award on 2 December 2025
with the same three equally-weighted
performance conditions.
Directorate changes
The Company announced on 30 April 2025 that
Soumen Das would be stepping down as Chief
Financial Officer and Executive Director with effect
from 31 December 2025. On 1 December 2025,
Susanne Schroeter joined the Company as Chief
Financial Officer and an Executive Director. Further
details on her terms of appointment are set out
onpage 123 of this Report but briefly comprise:
• base salary of £550,000 which, at 10 per cent
less than the former Chief Financial Officer's
salary, provides scope for salary progression
in future years under the Policy;
• equivalent pension allowance, car allowance
and taxable benefits;
• equivalent ongoing annual bonus and LTIP
opportunity (compared with that envisaged
for her predecessor). Susanne was eligible for
an annual bonus for the 2025 financial year,
pro-rated for the period of her employment,
and received an initial LTIP grant of two-thirds
of the Policy maximum of 250 per cent;
• a cash payment of £77,000 in April 2026 to
compensate Susanne for the amount forfeited
under the 2025 annual bonus plan at her
former employer;
• a recruitment LTIP award with a value of
£750,000, granted on 2 December 2025
withvesting in two tranches (50 per cent
on31March 2027 and 50 per cent on
31March2028, subject to continued
employment). Thisaward compensates
Susanne for an equivalent LTIP award forfeited
upon leaving her former employer; and
• minimum shareholding requirement
(equivalent to 250 per cent of base salary).
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Directorate changes continued
The payments for loss of office relating to
Soumen Das are also detailed on page 122 of this
Report. When approving these arrangements for
Soumen Das and Susanne Schroeter, the
Committee complied with the terms of the Policy.
Remuneration in 2026
The Committee has reviewed the Executive
Directors’ variable remuneration and annual
salary increases for 2026.
Salary reviews
The Committee reviewed the salaries of Executive
Directors taking into consideration the increases
for all other employees as part of the process. Our
salary budget across the business is 3.5 per cent
higher for 2026 than 2025, excluding the impact
of changes in employee numbers.
Reflecting their performance and that of the
business, we have approved salary increases of
3 per cent for the Executive Directors to take
effect from 1 April 2026 (see page 112).
2026 bonus measures
In accordance with the Policy, for 2026, the
Chief Executive will have a maximum annual
bonus opportunity of 200 per cent of salary and
the Chief Financial Officer will have a maximum
annual bonus opportunity of 150 per cent of
salary. Targets for the annual bonus are set by
the Committee at the beginning of the year.
The weighting of the annual bonus performance
measures are made up of 75 per cent financial
measures, comprising Adjusted PBT (37.5 per
cent) and RRG (37.5 per cent, made up of
18.75per cent standing (existing) stock and
18.75per cent development), and 25 per cent
non-financial measures linked to our Responsible
SEGRO (ESG) ambitions. Following a review of
the metrics used to calculate the bonus and
their alignment to the Company’s strategy, the
Committee concluded that no changes to the
measures were required.
2026 LTIP awards
The Committee intends to make LTIP awards in
line with the Policy levels in 2026, such that the
Chief Executive will receive a maximum LTIP
award of 300 per cent of salary and the Chief
Financial Officer will receive a maximum LTIP
award of 250 per cent of salary.
Review of LTIP performance measures
The Committee carefully considers the choice
ofperformance measures and targets each
year. A detailed review was carried out for all
incentives for 2026 to ensure alignment with
strategy and to maximise the effectiveness of
the incentives in driving shareholder value, while
operating in accordance with the Policy. One
ofthe outcomes of this review was the decision
to ensure that absolute earnings growth is
incentivised alongside the balance sheet-driven
metrics in the LTIP. Noting the considerable
overlap between the relative TAR and TSR
measures, the Committee determined that the
TAR measure should be replaced with absolute
EPRA earnings per share (EPS) growth. The
calculation of EPRA EPS will be subject to any
adjustments the Committee deems appropriate,
to ensure measurement of the underlying
performance of the business. The Committee
believes that this will incentivise management
todeliver EPS growth and, consequently, grow
the dividend in a sustained manner over the
three-year performance period of each LTIP
award. The Committee was satisfied that the
other measures, namely relative TSR and relative
TPR, remain suitable for the Company’s
long-term incentive strategy.
For the 2026 LTIP award, the Committee agreed
on a range of 3 to 8 per cent per year growth in
EPRA EPS, having considered external analysts’
forecasts, internal expectations in the context of
the current macroeconomic and interest rate
environment, and market practice within the UK
REIT market. As a REIT pays out almost all of its
net income, it does not retain profits to invest for
future growth, unlike companies in other
sectors. Consequently, theCommittee
considers this level of stretch tobe appropriate
to the Company’s situation. However, the
Committee will review the range on an annual
basis to ensure that it is reasonable against both
internal and external forecasts.
Stakeholder engagement
The changes to the LTIP performance
conditions did not require approval by
shareholders, as the changes were within the
terms of the Policy approved at the 2025 AGM.
However, the Committee engaged with 20 of
our largest investors (representing
approximately 60 per cent of the register), as
well as Institutional Shareholder Services (ISS),
the Investment Association (IA) and Glass Lewis,
to inform them of our intentions before
publishing these changes in this Report.
The Committee valued the responses received
from our investors and proxy agencies, which
raised no immediate concerns.
Workforce considerations and
engagement
As part of the Policy review conducted during
the year, the Committee considered pay
alignment across the business to ensure
everyone is rewarded fairly and that workforce
pay aligns with Executive remuneration.
During the year, the Non-Executive Directors held
a series of workforce engagement sessions with a
cross-section of employees including one which
covered the alignment of Executive remuneration
and wider workforce pay. Further details on this
engagement is set out on page 119.
Committee effectiveness
As part of the annual Board performance review,
the operation of the Committee was considered
and it was concluded that the Committee
continues to operate effectively in accordance
with its Terms of Reference, which are available
to view at www.SEGRO.com.
Looking ahead
The key areas of focus for the Committee
in2026 will be:
• ensuring that the vesting of long-term
incentives in 2026 accurately reflects the
performance of the Executive Directors
andthe experience of stakeholders;
• reviewing progress against, and the continued
appropriateness of, the performance
conditions and weightings of the annual
bonus for Executive Directors; and
• monitoring emerging trends in remuneration
and corporate governance as a whole.
Conclusion
At the 2026 AGM, the Directors’ Remuneration
Report will be submitted to shareholders for an
advisory vote. I am grateful for the engagement
and support provided by shareholders during
the year and look forward to receiving your
continued support at the AGM.
If you have any questions about remuneration
generally, or the contents of this Report, do
contact me at
companysecretariat.mailbox@SEGRO.com.
Simon Fraser
Chair of the Remuneration Committee
About this Report
In this Report, we have used colour coding to
represent the different elements of Executive
Director remuneration, and for information
relating to Non-Executive Director fees and
workforce remuneration.
Executive Directors
l
Salary
l
Taxable benefits
l
Pension benefits
l
Single year variable – Bonus, including DSBP
l
Multiple year variable – LTIP
l
Other – SIP and Sharesave
Non-Executive Directors
l
Non-Executive Directors
Workforce Remuneration
l
Workforce remuneration
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Chief Executive Workforce remuneration
£2,153k
2025 Single Figure
1,067%
of salary held in SEGRO plc shares
by Chief Executive (Policy: 400%)
3%
Salary increase received by the
Chief Executive in 2025
17:1
CEO Pay Ratio (Median Pay Ratio)
£3,600
worth of free shares received by
all eligible employees in 2025
91.6%
of employees participate in one or
more all-employee share scheme
c.3%
The average UK employee salary
increase in 2025
Group performance metrics
Adjusted profit before tax
£509m
2024: £470m
Rent roll growth
£71m
2024: £56m
Total accounting return
5.3%
2024: 3.1%
Total property return
5.7%
2024: 5.2%
Total shareholder return
7.4%
2024: (18.3)%
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What the Committee did in 2025
Throughout the year, the Committee has:
• approved the exit arrangements for Soumen Das, who retired from the
Board asan Executive Director on 31 December 2025, and approved the
recruitment package for Susanne Schroeter, who was appointed as an
Executive Director on1 December 2025;
• conducted a detailed review of the Company’s LTIP performance
measures and engaged with shareholders and key proxy agencies to
outline the Committee’s rationale for the change;
• approved the Executive Directors’ annual salary increases, the 2024
bonus payments and the outturn of the 2022 LTIP awards, as well
asthe2025 bonus and 2025 LTIP targets;
• approved the 2025 SIP, GSIP and Sharesave awards;
• reviewed and approved the Chair’s fee;
• reviewed workforce pay to ensure that it continues to to be aligned
withthe structure of the remuneration for Executive Directors;
• noted the Group-wide all-employee 2025 salary review and considered
salary increases, bonus and LTIP awards for the Leadership team; and
• received remuneration market updates from our external remuneration
adviser on emerging themes and best practice.
Remuneration
at a glance
Our ambition is ‘to be the bestproperty company’
and our remuneration structure is therefore
designed to align delivery ofannual and long-term
outperformance of the Companywith the
priorities ofourkey stakeholders.
This performance is assessed based on financial
and non-financial KPIs linked to the four pillars
ofour corporate strategy. The 2025 remuneration
structure and KPIs are listed below and more
detail including specifically how each KPI is linked
to the strategic pillars and remuneration can be
found on pages 26 and 27.
Strategy key
Responsible SEGRO
Disciplined capital allocation
Operational excellence
Efficient capital and corporate structure
Stakeholder key
Customers
Communities
Suppliers
Investors
Environment
Employees
Read more about our KPIs on pages 26 and 27
Read more about our strategy on pages 18 and 19
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Our remuneration approach in 2025
Element and purpose
Performance measure
KPIs
Fixed salary, pension and benefits
Fixed salary, pension and benefits that reflect the
Executives’ responsibilities and ensure we can attract
and retain the talent that is needed to deliver Group
performance
‘
Annual bonus including Deferred Share Bonus Plan (DSBP)
Variable
Incentives that focus Executives on achieving
stretching and rigorous annual targets that
supportstrategy, in particular in relation to income
generation, ESG ambitions and recurring profit
Adjusted PBT
37.5%
Adjusted EPS
Rent Roll Growth
37.5%
Rent Roll Growth
ESG
25.0%
Customer satisfaction
Employee engagement
Embodied carbon intensity
Visibility of customer energy use
Long Term Incentive Plan (LTIP)
Variable
Incentives that reward the execution of strategy,
creating sustainable performance over a three-year
performance period to drive long-term returns for
shareholders
Relative TSR over 3 years
33.3%
Total shareholder return
Relative TAR over 3 years
33.3%
Total accounting return
Relative TPR over 3 years
33.3%
Total property return
Share Incentive Plan (SIP)
Variable
To provide a market competitive remuneration
package and to encourage employee share
ownership across the Group
Employee, customer and
supplier volunteering
days
Volunteering days
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Our remuneration approach
2025 remuneration outcome
Total remuneration
Link to strategy
Link to stakeholders
Annual bonus outcome
Weighting
LTIP award payout
SIP award
Weighting
80.1%
0%
100.0%
100.0%
Adjusted PBT
RRG Standing Stock
RRG Development
ESG
0%
0%
0%
TSR
TAR
TPR
100%
Employee, customer and supplier
volunteering days
Chief Executive – David Sleath
£2,153k
(‘000)
l
Fixed pay £935
l
Short-term bonus £1,213
l
LTIP —
l
Other £5
Outgoing Chief Financial Officer –
Soumen Das
£1,390k
(‘000)
l
Fixed pay £704
l
Short-term bonus £677
l
LTIP —
l
Other £9
Incoming Chief Financial Officer –
Susanne Schroeter
£182k
(‘000)
l
Fixed pay £53
l
Short-term bonus £129
l
LTIP —
l
Other —
How we intend to apply the Policy in 2026
Summary of the Directors’ Remuneration Policy and how we intend to apply the Policy in 2026
The current Directors’ Remuneration Policy was approved by shareholders at the 2025 AGM. The following table presents a summary of the key elements of the Policy and how we intend to apply it in
2026. The full Policy is available in the 2024 Annual Report, and on our website at www.SEGRO.com.
Element of pay Summary of Policy How we intend to apply the Policy in 2026
Salary
Normally reviewed each year in the context of total remuneration, taking
into account the Directors’ responsibilities, experience and performance,
pay across the Group and market competitiveness.
From 1 April 2026, the Executive Directors will receive an increase in salary of approximately 3 per cent:
• David Sleath – £846,800
• Susanne Schroeter – £566,500
Benefits
Include but not limited to car allowance, life assurance, disability
insurance, private medical insurance, and health screening.
In line with Policy.
Pension
Contribution to pension arrangements or cash in lieu of pension to the
value of 12 per cent of base salary, in line with the UK workforce.
In line with Policy.
Executive Directors will receive cash in lieu of pension to the value of 12 per cent of their base salaries,
which is in line with the UK workforce.
Bonus
Maximum opportunity of 200 per cent of salary.
Awarded annually and paid for performance over the full financial year.
50 per cent of any bonus awarded is deferred into shares in the DSBP for
threeyears before vesting.
Discretion, malus, and clawback may apply.
Maximum opportunity of 200 per cent of salary for the Chief Executive and 150 per cent of salary for the
ChiefFinancialOfficer.
Subject to the following performance conditions:
• Adjusted PBT (37.5 per cent)
• Rent Roll Growth
– Standing (Existing) Stock (18.75 per cent)
– Development (18.75 per cent)
• ESG, including carbon emission reduction, customer service and employee engagement (25 per cent)
As targets are considered commercially sensitive, they are not disclosed at this time, but will be in
nextyear’s Report.
LTIP
Maximum opportunity of 300 per cent of salary.
Awards are subject to stretching performance conditions which
arenormally measured over a three-year performance period.
A two-year holding period applies to LTIP shares after vesting.
Dividends accrue on the gross number of LTIP shares which are released,
and the Committee will decide whether this payment will be made in
cashor shares.
Discretion, malus, and clawback may apply.
Maximum opportunity of 300 per cent of salary for the Chief Executive and 250 per cent of salary for the
Chief Financial Officer.
Subject to the following equally-weighted performance conditions:
Performance condition
Threshold
(20%vests)
Intervening
(80% vests) Max (100% vests)
Relative TSR vs. FTSE 350 REIT index (33.3%) Benchmark N/A Benchmark + 6% p.a.
Relative TPR vs. MSCI All Industrial Country (33.3%) Benchmark N/A Benchmark + 1.5% p.a.
Absolute EPRA EPS (33.3%) 3% growth 6% growth +8% growth
Shareholding
guidelines
Executive Directors are required to build, hold, and retain a certain level
ofshareholding (including after leaving employment).
Shareholding guideline of 400 per cent of salary for the Chief Executive and 250 per cent of salary for
the Chief Financial Officer.
NED fees
Fees are reviewed, normally annually, taking into account relevant marketdata.
Additional fees are payable to reflect the time commitments and
additional responsibilities.
Non-Executive Directors do not participate in any performance-related
remuneration and do not receive any benefits, other than reimbursement
of business-related expenses (and any tax that might be charged thereon).
From 1 January 2026, the Chair and Non-Executive Directors’ fees were increased by approximately 3per cent
and in line with the Executive Directors’ salary increase. The fees with effect from 1January2026 are therefore:
• Andy Harrison – £397,700
• Mary Barnard – £75,400
• Sue Clayton – £75,400
• Carol Fairweather – £114,200
• Simon Fraser – £96,000
• Marcus Sperber – £75,400
• Linda Yueh – £75,400
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Directors' Remuneration Report continued
How we applied the Policy in 2025
A summary of how the Directors’ Remuneration Policy was applied for the year ended 31 December 2025 is set out below.
Executive Directors’ single total figure of remuneration (Audited)
Chart 1: Executive Directors’ single total figure of remuneration for 2025 (£000)
Salary
Taxable
benefits
Pension
benefits
Total
fixed
Single year
variable –
Bonus,
including
DSBP
Multiple year
variable –
LTIP
3
Other –
SIP and
Sharesave
4
Total
variable Total
David Sleath
2025
816 21 98
935
1,213 — 5
1,218 2,153
2024
794 21 95
910
678 — 5
683 1,593
Soumen Das
1
2025
607 24 73
704
677 — 9
686 1,390
2024
591 20 71
682
504 — 5
509 1,191
Susanne Schroeter
2
2025
46 2 5
53
129 — —
129 182
1 Soumen Das ceased to be an Executive Director of the Company with effect from 31 December 2025. Further details can be found on page 122.
2 Susanne Schroeter was appointed as an Executive Director of the Company on 1 December 2025 and the figures in Chart 1 have been pro-rated accordingly. Susanne’s 2025 bonus includes a recruitment bonus of £77,000. Further details can be found on page 123.
3 For further information on the 2025 multiple year variable figure (which relates to the 2023 LTIP award), see Chart 5 on page 115.
4 The ‘Other’ figure for Soumen Das in 2025 includes a payment of £3,527 for accrued but unused annual leave entitlement as at 31 December 2025.
Salary (Audited)
From 1 April 2025, the Executive Directors received an increase in salary of approximately
3percent.
Susanne Schroeter was appointed as Chief Financial Officer and Executive Director on
1December2025 on a base salary of £550,000.
Chart 2: Salary
Base salary as at 1 April 2025
David Sleath
£822,100
Soumen Das
1
£611,300
Susanne Schroeter
£550,000
1 Soumen Das stepped down as Chief Financial Officer and Executive Director with effect from 31 December 2025.
Taxable benefits (Audited)
Taxable benefits include private medical healthcare, plus a cash allowance in lieu of a company
car. Executive Directors are also entitled to life assurance which is not a taxable benefit.
Pension benefits (Audited)
Each of the Executive Directors received cash in lieu of pension as detailed in Chart 1.
Throughout the year, each of the Executive Directors received a cash allowance of 12 per cent
ofbase salary.
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Single year variable – Bonus, including DSBP (Audited)
2025 Bonus (Audited)
The 2025 bonus comprised three components: adjusted profit before tax (Adjusted PBT) 37.5 per cent; rent roll growth (RRG) 37.5 per cent, consisting of standing (existing) stock (18.75 per cent)
anddevelopment (18.75 per cent); and ESG (25.0 per cent, comprising four equally-weighted metrics).
The performance period for Adjusted PBT, RRG and ESG starts from 1 January. The Adjusted PBT and RRG outturns were calculated using a constant exchange rate and also include adjustments for
specific items (including acquisitions and disposals made during the year) in accordance with the bonus scheme rules as approved by the Committee. The ESG element comprises four equally-weighted
Responsible SEGRO measures in accordance with the bonus scheme rules as approved by the Committee.
Bonus payments are calculated as a percentage of Executive Directors’ salaries as at 31 December of the relevant year. As explained on page 107, the Committee assessed the underlying performance
ofthe business and concluded that no discretion should be exercised in respect of the 2025 bonus.
The 2025 bonus targets and performance against them are set out below. Based on performance over the period, the payout will be 73.8 per cent per cent of the maximum, which will be paid in
April2026. As result, David Sleath will receive a payout of approximately £1.2 million, Soumen Das will receive approximately £0.7 million and Susanne Schroeter will receive approximately £0.1 million
(including a £77,000 recruitment bonus, further details can be found on page 123). The bonus is paid 50 per cent in cash with the remainder awarded as shares under the DSBP. Shares will vest in three
years subject to continued employment or good leaver status.
The 2025 DSBP will be awarded in April 2026 and will vest on the third anniversary of the award date in April 2029.
Chart 3: 2025 Bonus
Bonus element
Threshold
(25%)
Target (50%)
Stretch
Target90%
Maximum (100%) payout
Actual
Weighting
Outcome
achieved
Financial element
Adjusted PBT against target
£505.0m
£510.1m
£520.2m
£530.3m
£517.7m
1
37.5% 80.1%
Rent Roll Growth (RRG) Standing Stock
againsttarget
£24.5m
£30.6m
£33.7m
£35.2m
£41.3m
1
18.75% 100%
Rent Roll Growth (RRG) Developments
againsttarget
£29.6m
£39.5m
£49.4m
£51.4m
£28.5m
1
18.75% —%
Non-financial element
ESG
25.0% 100%
– Improving visibility of Scope 3 operating
carbon emissions in our buildings
75%
90%
91%
100%
– Reducing embodied carbon emissions
308kg
292kg
271kg
2
100%
– Providing excellent customer service
80% customer satisfaction
achieved from surveys
88% customer satisfaction achieved on
average from surveys during the year
91% satisfaction
100%
– Achieving high levels of employee
engagement and inclusion
25% payout for achieving
Employee Engagement
score of 83%
50% payout for
achieving Inclusion
and Diversity score
of 80%
100% payout for achieving Employee
Engagement score of 87%
Employee Engagement score
88%
Inclusion and Diversity score
80%
100%
Total
100% 73.8%
1 Actual Adjusted PBT of £517.7 million is calculated based on a budgeted constant exchange rate and excludes share of joint ventures tax on adjusted profit. It also includes adjustments for specific items in accordance with the bonus scheme rules as approved by the
Committee. As such, this differs from the Adjusted PBT of £509 million shown in Note 2 of the Financial Statements. Similarly, RRG is calculated based on a budgeted constant exchange rate and differs from the total RRG shown on page 26 which reflects actual
exchange rates for 2025.
2 We calculate a full set of embodied carbon emissions for reporting purposes, which are detailed on pages 22 and 55. Only part of this is used for our SBTi target, and a smaller, more comparable set is used for our SEGRO bonus target. The bonus target focuses on the
elements we can influence most, compares developments fairly, and uses a two-year rolling average to reduce volatility, helping to motivate teams and reward genuine improvements.
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Single year variable – Bonus, including DSBP (Audited)
2025 Bonus (Audited) continued
Chart 4: 2024 DSBP Award (made in 2025)
Date of grant
Number of shares over which
awards were granted
Share price on grant
(pence)
2
Face value of award made in 2025
(£) End of holding period
David Sleath
28/04/2025 49,000 691.8 338,982 28/04/2028
Soumen Das
1
28/04/2025 36,434 691.8 252,050 28/04/2028
1 Soumen Das ceased to be an Executive Director of the Company on 31 December 2025. Further details can be found on page 122.
2 The share price on grant is based on the closing mid-market quotation of a share on the business day immediately preceding the grant.
Multiple year variable – LTIP (Audited)
LTIP awards are subject to a three-year performance period and a compulsory two-year post-vesting holding period for Executive Directors.
LTIP vesting in 2026 (Audited)
The 2023 LTIP award will vest on 24 March 2026, subject to relative TSR, TPR and TAR over the three-year performance period to 31 December 2025.
Based on actual TSR performance over the performance period and the TPR and TAR data currently available, it is anticipated that the 2023 LTIP award will not pay out.
Chart 5: 2023 LTIP award
Measure
Weighting
Threshold (20% of maximum)
Stretch (100% of maximum)
Outcome (% of maximum)
TSR
1
33.3%
Benchmark
Benchmark + 6% p.a.
0 %
TPR
2
33.3%
MSCI Benchmark
MSCI Benchmark + 1.5% p.a.
0 %
TAR
3
33.3%
Benchmark
Benchmark + 2.5% p.a.
0 %
Estimated vesting (% of award)
0 %
1  The Company’s TSR over the performance period was -0.4 per cent and the benchmark TSR was 12.4 per cent. As SEGRO has not reached
thethreshold target, this element of the 2023 LTIP award will lapse.
2 The estimated TPR calculation is based on the Company’s actual annualised TPR between 2023 and 2025 of 3.9 per cent and an
estimatedMSCI benchmark over the same period of 5.2 per cent. On this basis, the Company’s three-year TPR to 31 December 2025 has
underperformed the estimated MSCI benchmark by -1.2 per cent which would lead to 0 per cent of the TPR element vesting. The final
benchmark will be available in quarter two of 2026 and based on the information available at the time of this Report, the Committee has
estimated that this element of the award will lapse. Any differences will be disclosed in next year’s Report.
3 The final benchmark will be available in quarter two of 2026. Based on the information available for two years, performance to 31 December
2024, the Company is underperforming the benchmark by 0.6% and consequently the Committee has estimated that the threshold target
isunlikely to be met and so it is anticipated that this element of the award will lapse. Any differences will be disclosed in next year’s Report.
The Committee has the discretion to adjust awards at vesting if it is not satisfied that
the outcome is a fair reflection of underlying performance, or in the event of excessive
risk taking or misstatement. As explained on page 107, the Committee assessed the
underlying performance of the business and concluded that no such discretion should
be exercised in respect of the vesting of the 2023 LTIP.
Subject to an LTIP award vesting, at the point of vesting, the underlying number of
shares under the award are subject to a further two-year post-performance holding
period. The Executive Directors will continue to hold their award over the shares,
andwill be entitled to the value of any dividend payments during the holding period;
duringthis time they will not be able to sell or transfer the shares under award.
Chart 6: 2023 LTIP award to Executive Directors
Share price on
award (pence)
Percentage of
salary awarded (%)
Number of shares
awarded
Number of shares
eligible for vesting
Estimated
percentage of
award vesting (%)
Estimated share
price on vesting
(pence)
1
Estimated value of
vesting shares (£)
Value in Chart 1
attributable to share price
appreciation (£)
Dividend
(pence per
share)
2
Total dividend on
vesting shares (£)
David Sleath
737.80 300 303,010 303,010 — 697.47 — — 88.2 —
Soumen Das
3
737.80 250 187,767 172,119 — 697.47 — — 88.2 —
1 The vesting share price has been estimated as the three-month average share price ending on 31 December 2025.
2 As the estimated 2023 LTIP outturn is 0 per cent, there is no value included in Chart 1. In the event that the actual outturn is 0 per cent following the final assessment of TAR and TPR performance, no shares will vest and no dividend equivalents will be paid.
3 Soumen Das ceased to be an Executive Director of the Company on 31 December 2025 and his 2023 LTIP award has been pro-rated in accordance with the rules of the LTIP.
4 Susanne Schroeter was appointed as an Executive Director of the Company on 1 December 2025 and was therefore not a Director when the 2023 LTIP award was granted.
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Updated LTIP vesting in 2025 (estimated in 2024 Annual Report) (Audited)
The estimated vesting for the 2022 LTIP award set out in the 2024 Directors’ Remuneration Report
was 0 per cent. The final data for the TAR and TPR elements became available in quarter two of
2025 and a final performance assessment concluded that there was no change required to the
estimates made.
Susanne Schroeter was appointed as an Executive Director on 1 December 2025 and therefore did
not participate in the 2022 LTIP.
2025 LTIP award (Audited)
The 2025 LTIP award was granted on 19 February 2025 and is subject to the following equally-
weighted performance conditions:
2025 Metrics
Weighting
Threshold
(20% of maximum)
Maximum
(100% of maximum)
Relative Total Shareholder Return vs
FTSE 350 REIT index
33.3% Benchmark Benchmark + 6% p.a.
Relative Total Property Return vs
MSCI All Industrial Country
33.3% MSCI Benchmark Benchmark + 1.5% p.a.
Relative Total Accounting Return vs
FTSE 350 REITs
33.3% Benchmark Benchmark + 2.5% p.a.
David Sleath was awarded 300 per cent of salary in respect of the 2025 LTIP and Soumen Das was
awarded 250 per cent of salary.
Susanne Schroeter was appointed as an Executive Director on 1 December 2025 and was awarded
a2025 LTIP award on 2 December 2025. Further details can be found on page 123.
Chart 7: 2025 LTIP awards to Executive Directors
Date of grant
No of shares
over which
awards were
granted
Share price
on grant
(pence)
Face value
of award
made in
2025 (£)
End of performance
period over which
conditions have
been met
End of
two-year
post-vesting
holding period
David Sleath
19/02/2025 335,378 714.0 2,394,599 31/12/2027 19/02/2030
Soumen Das
19/02/2025 207,808 714.0 1,483,749 31/12/2027 19/02/2030
Susanne Schroeter
02/12/2025 128,385 714.0 916,669 31/12/2027 19/02/2030
1 Awards are structured as conditional awards over ordinary shares.
2 The share price on grant is based on the closing mid-market quotation of a share on the business day immediately preceding
thegrant.
3 The share price used to calculate Susanne Schroeter’s award was consistent with the that used to calculate the awards for
DavidSleath and Soumen Das.
4 Awards are subject to a three-year performance period and a two-year post-vesting holding period.
5 Soumen Das ceased to be an Executive Director on 31 December 2025 and his 2025 LTIP award has been pro-rated accordingly in
accordance with the LTIP rules. Further details can be found on page 122.
6 Further details on Susanne Schroeter’s award can be found on page 123.
Other – SIP and Sharesave (Audited)
The ‘Other’ figure in Chart 1 relates to the SIP and Sharesave:
Share Incentive Plan (SIP)
During the year, SIP free share awards of £3,600 were made to eligible UK employees and
Global Share Incentive Plan (GSIP) awards of £3,600 were made to eligible employees based
outside of the UK. All eligible employees, including David Sleath and Soumen Das, received an
award of 529 shares in respect of the 2025 SIP and GSIP, as set out in the table below. Susanne
Schroeter was appointed as an Executive Director on 1 December 2025 and therefore was not
awarded a 2025 SIPaward.
Name
Number of shares granted
Grant date
Face value at grant (£)
1
David Sleath
529
09/05/2025
£3,596
Soumen Das
529
09/05/2025
£3,596
1  The number of shares awarded was calculated using a share price of 679.8 pence, based on the five-day average share price
prior to the date of award.
Sharesave
All eligible UK employees are invited to join the Sharesave annually and can save up to a
maximum of £500 per month across all open schemes. At the end of the three-year savings
period, they can purchase shares at the option price based on a 20 per cent discount to the
share price at the time of grant.
The Executive Directors did not join the 2025 Sharesave and so did not receive any grants under
the scheme during the year.
David Sleath is a participant in the 2023 Sharesave and is saving the maximum permitted
amount. The value of the 20 per cent option discount for David Sleath’s savings in the year
was£1,500.
Soumen Das also participated in the 2023 Sharesave and saved the maximum permitted
amount. On 31 December 2025, Soumen Das ceased to be an Executive Director of the
Company and in accordance with the Sharesave rules, his options lapsed and he was entitled to
the return of his accumulated savings. Further details can be found on page 122.
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Directors' Remuneration Report continued
£
(Chief Executive single figure)
(TSR)
TSR chart and Chief Executive pay
Chart 8 below shows the TSR for the Company over the last 10 financial years compared with the FTSE 350 REIT Index and the FTSE 100 Index. The Committee has determined that these indices provide
useful comparators as the Company and its peers are constituents of them.
Chart 8: Composite 10-year TSR chart and 10-year Chief Executive single total figure of remuneration
Chief Executive single total figure of remuneration (£000)
SEGRO
FTSE 100
FTSE 350 REITs
0
100
200
300
400
500
600
1,000
2,000
3,000
4,000
5,000
6,000
7,000
Chief Executive single figure of remuneration (£000)
2,788 4,125 3,947 6,611 3,752 4,650 3,915 3,021 1,593 2,153
Short-term incentive payout against maximum opportunity (%)
99.2 100 94.3 100 91.2 100 95.3 81.6 56.6 73.8
Long-term incentive payout against maximum opportunity (%)
100.0 100.0 100.0 100.0 100.0 100.0 100.0 63.3 0 0
1 David Sleath has served as Chief Executive of the Company since 28 April 2011.
CEO pay ratio
The table below shows how CEO pay compares to the pay of employees at the lower, median and
upper quartiles. The ratios have been calculated in accordance with Option A of the The Companies
(Miscellaneous Reporting) Regulations 2018. We have again opted for Option A as the preferred
method of calculation, as it is the most statistically accurate as recommended by the legislation.
Chart 9: CEO pay ratio
Year:
Method
25th percentile
pay ratio Median pay ratio
75th percentile
pay ratio
31 December 2025
A 28:1 17:1 12:1
31 December 2024
A 21:1 13:1 9:1
31 December 2023
A 37:1 23:1 16:1
31 December 2022
A 58:1 34:1 23:1
31 December 2021
A 80:1 47:1 27:1
31 December 2020
A 64:1 37:1 23:1
31 December 2019
A 111:1 70:1 40:1
31 December 2018
A 65:1 41:1 24:1
Chart 10: Total UK employee pay and benefits figures used to calculate the 2025 CEO pay ratio
25th percentile pay
(£000) Median pay (£000)
75th percentile pay
(£000)
Salary
60 83 127
Total UK employee pay and benefits
77 125 179
Supporting information for the CEO pay ratio
The Chief Executive’s single total figure of remuneration for 2025, detailed further in Chart 1,
andemployee data as at 31 December 2025, have been used for the purposes of this calculation.
The median CEO pay ratio has increased slightly when compared against last year (13:1). The main
reason for this is an increase in the bonus outcome for 2025, noting that variable remuneration
makes up a larger proportion of the Chief Executive’s total remuneration package compared to the
typical workforce package.
SEGRO’s median CEO pay ratio is 17:1 and the Remuneration Committee considers that the median
CEO pay ratio is representative of the pay, reward and progression policies for our UKworkforce.
Relative importance of spend on pay
The table below shows SEGRO’s total employee expenditure for 2025 and the total amount returned
to shareholders by way of dividend.
Chart 11: Relative importance of spend on pay
2025 (£m)
2024 (£m) Increase (%)
Total dividend
405
379 6.9
Total employee expenditure
64
63 1.6
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Directors' Remuneration Report continued
Dec
2015
Dec
2016
Dec
2017
Dec
2018
Dec
2019
Dec
2020
Dec
2021
Dec
2022
Dec
2023
Dec
2024
Dec
2025
Chart 12: Percentage change in Directors’ remuneration compared to the average employee
Average per employee
1
3.8
4.6 9.7 7.7 4.2 6.0
-6.2
11.2 1.1 2.4 12.4 2.0
22.1
-8.4 5.3 0.1 9.4 -2.0
Executive Directors
David Sleath
2.8
2.7 4.5 2.6 8.7 -2.2
-2.6
4.4 0.0 0.0 4.8 0.0
78.9
-29.2 -10.1 -1.5 11.3 -6.1
Soumen Das
4
2.8
2.7 4.5 2.6 14.1 -3.4
22.2
11.3 0.6 -11.3 -0.2 0.0
34.2
-29.2 -10.1 -1.5 16.8 -6.1
Susanne Schroeter
5
—
— — — — —
—
— — — — —
—
— — — — —
Non-Executive Directors
3
Andy Harrison
2
3.0
2.0 5.0 — — —
—
— — — — —
—
— — — — —
Mary Barnard
3.0
2.0 5.0 3.0 8.0 -0.6
—
— — — — —
—
— — — — —
Sue Clayton
3.0
2.0 5.0 3.0 8.0 -0.6
—
— — — — —
—
— — — — —
Carol Fairweather
2,6
1.9
10.6 18.6 3.0 8.0 -0.6
—
— — — — —
—
— — — — —
Simon Fraser
2
1.6
1.6 8.1 3.0 — —
—
— — — — —
—
— — — — —
Marcus Sperber
2
3.0
— — — — —
—
— — — — —
—
— — — — —
Linda Yueh
2
3.0
2.0 5.0 3.0 — —
—
— — — — —
—
— — — — —
Salary/Fees (% change) Taxable Benefits (% change) Annual Variable Pay (% change)
2025 2024 2023 2022 2021 2020 2025 2024 2023 2022 2021 2020 2025 2024 2023 2022 2021 2020
1 As there are only a very small number of employees in SEGRO plc, French branch, the 2025 average per employee figure is based on UK employees who have been continually employed for the entirety of 2024 and 2025 and are entitled to receive an annual bonus.
2 Explanations for material changes in prior years are provided in the previous Annual Reports.
3 Fees for Non-Executive Directors have been annualised unless otherwise stated. Non-Executive Directors do not receive any taxable benefits and do not participate in the bonus scheme.
4 Soumen Das ceased to be an Executive Director of the Company with effect from 31 December 2025.
5 Susanne Schroeter was appointed as an Executive Director on 1 December 2025; accordingly there is no comparator for the previous years.
6 Carol Fairweather received an additional fee for her role as Senior Independent Director and Chair of the Audit Committee. Carol was appointed as Senior Independent Director in July 2023 and as a result, she received an additional pro-rated fee for this role in 2023.
Alignment of Executive Director and workforce remuneration in 2025
All employees Element of remuneration Executive Directors
Group salary budget reviewed by the Remuneration Committee
Salary
Below overall budgeted employee increases
All employees are eligible for Bonus
Targets: Adjusted PBT, RRG, ESG, personalperformance (weightings
based on level)
Bonus
Maximum 200% for Chief Executive and 150% for Chief Financial Officer
Targets: Adjusted PBT (37.5%), RRG (37.5%), ESG (25%)
Leadership team only, 25% deferred for 3 years
Deferred Share Bonus Plan
50% deferred for 3 years
Leadership team and senior managers only
3-year performance period
No holding period
Three equally-weighted targets: TSR, TPR, TAR
Long Term Incentive Plan
Maximum 300% for Chief Executive and 250% for Chief Financial Officer
3-year performance period, 2-year holding period
Three equally-weighted targets: TSR, TPR, TAR
(UK) 12% matched contribution
Pension benefit
12% cash
Maximum £3,600, minimum 3-year hold
Share Incentive Plan
Maximum £3,600, minimum 3-year hold
(UK) £500/month with a 3-year savings period
Sharesave
£500/month 3-year savings period
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Directors' Remuneration Report continued
Employee share ownership
SEGRO is proud to operate two types of
all-employees share schemes. This encourages
employees to own shares in theCompany,
aligning their interests with ourshareholders.
• SIP/GSIP: all eligible employees can receive
an award of up to £3,600 worth of SEGRO
shares each year. These are held in Trust on
their behalf for a minimum of three years,
following which they can be released subject
to continued employment.
• Sharesave: all UK employees are invited to
join Sharesave on an annual basis, where they
can save up to £500 a month across all open
schemes. After three years, they can use their
savings to buy SEGRO shares at a 20 per cent
discount to the share price when they
startedsaving.
91.6%
of SEGRO employees participated in one
ormore all-employee share scheme,
asat31December 2025.
£3,600
In May 2025, all eligible employees received
£3,600 worth of SEGRO shares through the
SIP or GSIP.
60.9%
of UK employees participate in Sharesave,
saving on average £376 each month.
7.8m
SEGRO shares under award in employee
shareschemes as at 31 December 2025,
representing 0.6 per cent of our issued
sharecapital.
Workforce engagement on Executive Remuneration
As detailed on page 84, during the year the
Non-Executive Directors held a series of
workforce engagement sessions with a
cross-section of employees from across the
business. In September 2025, Remuneration
Committee Chair, Simon Fraser, and
Non-Executive Director, Mary Barnard, held
anin-person workforce engagement session
which covered a variety of topics and also
covered Executive Remuneration. A small
group of employees were selected from a
cross-section of employment grades,
functions and tenures to provide their
perspectives on the Group’s remuneration
framework and insights into how the current
approach to pay, bonuses and benefits is
experienced across the business.
Overall, the group demonstrated a good
understanding of the Company’s
Remuneration Policy, including the structure
and purpose of Executive Pay and the broader
reward framework for the workforce.
Participants were generally confident in their
knowledge of the Company’s bonus structure,
including the financial and Responsible SEGRO
targets, however some colleagues noted that
the bonus scheme can sometimes seem
complex, reinforcing the need for strong
communications to colleagues at all levels to
help them to understand the scheme and the
part they can play in delivering performance.
Additionally, the adoption of the ‘what and
how’ model for assessing personal
performance, was highlighted as an area
where further guidance would be beneficial
and which management have agreed
toaddress.
Across all participants, there was strong
appreciation for the wider package of
employee benefits. The Wellbeing Fund,
additional Christmas annual leave and
enhanced paternity leave were all cited as
demonstrably positive elements of the
Company’s offering.
The Directors felt that these sessions remained
helpful in understanding employees’ views
ona range of topics, including Executive
Remuneration, and appreciated the insightful,
open and honest feedback from the attendees.
The feedback has been provided to
management, and, together with the
feedback given by employees in the Your Say
survey (described on page 25) will be used to
form plans to actively address any issues
raised and improve the Company’s employee
offering. The employees also valued the
opportunity to speak directly with the
Non-Executive Directors to share their views.
Feedback from the session was relayed to the
Board and discussed at the November 2025
Board meeting and will inform plans on the
evolution of our communications to support
performance management and reward.
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Directors' Remuneration Report continued
Executive Directors’ shareholdings (Audited)
Chart 13: Executive Directors’ overall interest in shares
Beneficial
interest
(including
SIP as at
01/01/2025)
Beneficial
interest
(including
SIP as at
31/12/2025)
Subject to
deferral
under DSBP
Subject to
achievement of
performance
conditions
under LTIP
Subject to two
year holding
period
Outstanding
options under
Sharesave
Total overall
interest in
shares as at
31/12/2025
Shares which
contribute to
shareholding
guidelines as at
31/12/2025
Value of shares
which
contribute to
shareholding
guidelines as at
31/12/2025
Salary (as at
31 December
2025)
Value of
shareholding
as a % of
salary
David Sleath
917,526 1,062,591 171,497 902,389 120,894 3,099 2,260,470 1,217,557 £8,771,281 £822,100 1,067 %
Soumen Das
536,208 640,141 127,525 559,177 85,670 3,099 1,415,612 753,134 £5,425,577 £611,300 888 %
Susanne Schroeter
— — — 233,899 — — — — — £550,000 — %
1 Beneficial interests represent shares beneficially held by each Executive Director, including any shares beneficially held by connected persons as well as shares held on their behalf by the Trustees of the SIP. Between 31 December 2025 and 19 February 2026, there
wereno changes in respect of the Executive Directors’ shareholdings. The Trustees of the SIP held a non-beneficial interest in 464,528 shares as at 1 January 2025, 509,996 shares as at 31 December 2025 (2024: 432,659) and 492,449 shares as at 19 February 2026. The
Trustees of the SEGRO plc Employees’ Benefit Trust held 490,838 shares as at 1 January 2025 and 623,340 shares as at 31 December 2025 (2024: 490,838). There was no change in their holding between 31 December 2025 and 19 February 2026. As with other
employees, Executive Directors are deemed to have a potential interest in these shares, being beneficiaries under these two Trusts. The Trustees of the SEGRO plc Employees’ Benefit Trust have waived the right to receive dividends on these shares.
2 The number of shares which contribute towards the shareholding requirement comprises beneficial interests (including SIP shares), shares subject to deferral under DSBP and shares held under LTIP subject to the two-year post-vesting holding period, net of Income
Tax and National Insurance, but excludes shares subject to achievement of performance conditions under LTIP and options outstanding under Sharesave.
3 Value of shares calculated using a share price of 720.4 pence, as at 31 December 2025.
4 Soumen Das ceased to be an Executive Director of the Company on 31 December 2025 and his share interests and share values are disclosed as at 31 December 2025.
5 Susanne Schroeter was appointed as an Executive Director on 1 December 2025.
Chart 14: Policy on shareholding guidelines (Audited)
The Chief Executive is expected to build a shareholding in the Company equivalent to
400percent of the value of his base salary, and the other Executive Directors are expected
tohold shares equivalent to 250 per cent of their base salaries, which is calculated each year
byreference to the share price as at 31 December.
Shares which qualify towards the shareholding guidelines comprise: beneficial interests;
LTIPawards which have vested and are subject to a two-year post-vesting holding period,
netofIncome Tax and National Insurance; and unvested shares in the DSBP, net of Income Tax
and National Insurance.
Executive Directors are required to retain half of their DSBP shares post vesting and half of
theirLTIP shares post-holding period until the above guidelines have been met and are
thenmaintained. The shareholding guidelines include a post-cessation requirement for Executive
Directors to retain their shareholding, up to the amount required by the shareholding guidelines,
for two years after leaving the Company.
Soumen Das ceased to be an Executive Director of the Company with effect from
31December2025 and is required to maintain a shareholding of 250 per cent of base
salaryforaperiod of twoyears post-cessation, as detailed in the Policy.
Susanne Schroeter was appointed as an Executive Director on 1 December 2025 and will
bewillbe expected to build up a shareholding equivalent to 250 per cent of basic salary,
asdetailedin the Policy.
l
Policy
l
Percentage of salary held
Value of shares calculated using a share price of 720.4 pence, as at 31 December 2025.
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Directors' Remuneration Report continued
0%
250%
500%
750%
1,000%
1,250%
1,500%
David Sleath
Policy
400%
% of salary held
1,067%
Soumen Das
Policy
250%
% of salary held
888%
Susanne Schroeter
Policy
250%
% of salary held
0%
Executive Directors’ shareholdings (Audited) continued
Dilution headroom
As the LTIP, SIP and Sharesave schemes are approved by shareholders, they may be satisfied by the
issue of new shares in the Company, up to the dilution limits set out in our scheme rules. Chart 15
below shows the total number of shares under award or option for both Executive and all-employee
schemes in comparison to our dilution limits over the last 10 years.
Chart 15: Dilution headroom
Chair and Non-Executive Directors
Non-Executive Directors’ single total figure of remuneration (Audited)
In 2025, the Chair’s annual fee was £386,100 (2024: £374,900) and the Non-Executive Directors’
annual fee was £73,200 (2024: £71,100), with an additional £17,700 per annum (2024: £17,700)
fortherole of Senior Independent Director and an additional £20,000 per annum (2024: £20,000)
for chairing the Audit or Remuneration Committees.
The Chair and Non-Executive Directors do not participate in any of the Company’s share-based
incentive schemes nor do they receive any other benefits or rights under the pension scheme.
Chart 16: Non-Executive Directors’ single total figure of remuneration for 2025
Total Fees
2025
(£000)
2024
(£000)
Andy Harrison
Chair
386
375
Mary Barnard
73
71
Sue Clayton
73
71
Carol Fairweather
Chair of the Audit Committee Senior Independent Director
111
109
Simon Fraser
Chair of the Remuneration Committee
93
91
Marcus Sperber
1
73
47
Linda Yueh
73
71
1 Marcus Sperber was appointed to the Board as an independent Non-Executive Director on 1 May 2024 and his fee in 2024
reflects the time served.
Non-Executive Directors’ shareholding guidelines (Audited)
The Committee periodically considers the Non-Executive Directors’ shareholdings to ensure they
remain appropriate and aligned to the interests of shareholders. Non-Executive Directors are expected
to reach a share ownership equivalent in value to 100 per cent of their annual fees, within three years
from their date of appointment. Where a Non-Executive Director has met the 100 per cent of their
annual fees guidance previously, they would be considered to have adhered to the guidelines and are
not expected to adjust their holdings with subsequent share price movements.
Chart 17: Non-Executive Directors’ beneficial interests in shares and shareholding requirements
Beneficial interests
Shareholding
requirements
01/01/2025
Ordinary 10p
shares
31/12/2025
Ordinary 10p
shares
Shareholding
requirement met
Andy Harrison
564,755 564,755 Yes
Mary Barnard
12,507 12,507 Yes
Sue Clayton
7,000 7,000 Yes
Carol Fairweather
20,000 20,000 Yes
Simon Fraser
31,440 31,440 Yes
Marcus Sperber
1
7,240 7,240 No
Linda Yueh
4,716 4,716 Yes
1 Marcus Sperber was appointed to the Board on 1 May 2024 and is expected to build a shareholding equivalent to 100percent
of annual fees over three years from his date of appointment.
There was no change in Directors’ interests between 31 December 2025 and 19 February 2026.
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Directors' Remuneration Report continued
0%
1%
2%
3%
4% 5%
6%
7%
8% 9%
10%
Executive
schemes
0.99% 5%
10 years
All
schemes
1.11% 10%
10 years
l
Actual
l
Dilution limit
Additional information
External appointments
Executive Directors are permitted to hold one external directorship, approved by the Board.
Feespayable may be retained.
David Sleath is a Senior Independent Non-Executive Director of RS Group plc and he received a fee
of £84,464 forthis role in 2025 (2024: £82,601).
Soumen Das is a Non-Executive Director of NEXT plc and he received a fee of £76,195 for his role
in2025 (2024: £76,195).
Susanne Schroeter is a Supervisory Board Member of Zalando SE and she received a fee of
€110,000 (equivalent to £94,017) for her role in 2025 (€9,167/£7,835 for the period appointed
atSEGRO). The FX rate used was the 2025 average (£1 : €1.17).
Exit payments and arrangements (Audited)
Further to the Company’s announcement on 30 April 2025, Soumen Das, Chief Financial Officer
andExecutive Director, stepped down from the Board with effect from 31 December 2025.
Theremuneration details relating to Soumen Das required to be made available under section
430(2B) ofthe Companies Act 2006 are as follows:
• The remuneration terms for Soumen Das’s departure are in accordance with the key provisions
for contract termination as set out in SEGRO’s Remuneration Policy approved by shareholders
inApril 2025 and available to view at www.SEGRO.com.
• Soumen Das has been paid a full salary and benefits (which includes cash allowances in lieu of a
company car, company pension and private medical healthcare) to 31 December 2025. He also
received a payment of £3,527 in respect of accrued but unused annual leave entitlement as at
31December 2025.
• Soumen Das was eligible to receive a cash bonus in respect of the Company’s financial year
ending 31December 2025, payable in April 2026, to the extent that the performance targets were
met (see page 114 for further details). 50per cent of the bonus earned in 2025 will be deferred
inshares under the Company’s Deferred Share Bonus Plan (DSBP).
• Soumen Das was entitled to time pro-rated shares from the Company’s Long Term Incentive
Plan(LTIP), subject to the Company meeting the performance targets for these awards and
subject toand in accordance with the rules of the LTIP. Following vesting, his LTIP awards will
remain subject to the normal post-vesting holding periods and to the other rules of the LTIP.
Anydividendequivalents accrued in respect of LTIP awards will be pro-rated in line with the level
ofvesting of the relevant LTIP award and will be paid in cash at the end of the holding period.
Thecash payment will also include the value of any dividend equivalents accrued during the
holding period. Details of Soumen Das’s outstanding LTIP awards are set out on the right.
Award
Award date
Number awarded
Maximum
number of shares
that could vest
Vesting date
End of
holdingperiod
2021 LTIP award
1
29/03/2021
135,341
85,670
29/03/2024
29/03/2026
2022 LTIP award
2
05/05/2022
115,698
0
05/05/2025
05/05/2027
2023 LTIP award
24/03/2023
187,767
172,119
24/03/2026
24/03/2028
2024 LTIP award
22/03/2024
163,602
95,434
22/03/2027
22/03/2029
2025 LTIP award
19/02/2025
207,808
57,724
19/02/2028
19/02/2030
1 As disclosed in the 2024 Directors’ Remuneration Report, the 2021 LTIP vested at 63.3 per cent.
2 As detailed on page 116, the 2022 LTIP did not achieve the performance conditions and therefore did not vest.
• Soumen Das was entitled to receive outstanding awards under the DSBP in full on their normal
vesting dates. As set out below, the shares subject to these awards will be released on the vesting
date, together with a cash sum equivalent to the value of dividends that would have been paid on
the shares during the three years under which they were under award.
Award
Award date
Number awarded
Vesting date
2022 DSBP award
28/04/2023
48,867
28/04/2026
2023 DSBP award
26/04/2024
42,224
26/04/2027
2024 DSBP award
28/04/2025
36,434
28/04/2028
• Soumen Das’ shares awarded under the Company’s Share Incentive Plan (SIP) will be treated in
accordance with the rules of the SIP. Options held under the Company’s Savings-Related Share
Option Plan (Sharesave) will automatically lapse and Soumen Das will be entitled to the return of
his accumulated savings in accordance with the rules of the Sharesave.
• Other than the amounts disclosed above, Soumen Das will not be eligible for any remuneration
payments or payments for loss of office.
• Soumen Das is required to hold Company shares equivalent to 250 per cent of base salary as at
31December 2025 for a period of two years following termination of employment, in accordance
with the Company’s Shareholding Guidelines. Please see page 120 for further details.
Payments to Former Directors (Audited)
Andy Gulliford retired as Chief Operating Officer and Executive Director on 30 June 2023.
Fulldetails of his exit arrangements are disclosed in the 2023 Directors’ Remuneration Report. Andy
was entitled to his 2022 LTIP award on a time pro-rated basis in line with previously disclosed exit
arrangements, however as detailed on page 116, the 2022 LTIP award did not vest and as a result, he
did not receive any shares or accrued dividend equivalent payments in respect of this award. Andy
was entitled to receive his 2021 DSBP award, which vested on 28 April 2025. 34,578 shares vested
and were valued at £239,211 based on the share price on the date of vesting (691.8 pence) and an
additional £28,838 for accrued dividend payments. Andy also received the shares releasedon his
2020 LTIP, which reached the end of its two-year post-vesting holding period on26March2025.
143,788 shares vested and were valued at £1,012,076 based on the share price atvesting (703.9
pence) and an additional £186,637 in accrued dividend payments. There were noother payments to
former Directors during the year.
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Directors' Remuneration Report continued
Remuneration terms for Susanne Schroeter
Susanne Schroeter joined the Board as Chief Financial Officer and Executive Director on 1 December 2025. The following employment terms were approved by the Committee and are in line with thePolicy:
• Her gross annual salary is £550,000 which, at 10 per cent less than the former Chief Financial Officer's salary, provides scope for salary progression in future years under the Policy and will be reviewed
by the Committee on an annual basis. Her pension allowance is 12 per cent of basic salary which is in line with the wider UK workforce. Pension payments can be taken as a cash supplement or a
contribution to the Company’s occupational pension scheme. Susanne is also entitled to health care, life insurance and an annual cash car allowance.
• Susanne will be eligible to participate in SEGRO’s annual bonus scheme subject to the rules of the scheme and her maximum bonus opportunity will be 150 per cent of salary. For the financial year
ending 31 December 2025, Susanne was eligible to participate in the annual bonus scheme, pro-rated for the period of employment and payable in April 2026 (see page 114 for further details).
50percent of any bonus awarded will be deferred into shares in the DSBP to be held for three years before vesting. Susanne will also be eligible to receive an additional amount of £77,000 (less any
deductions the Company is required to make) in April 2026 to compensate for the amount forfeited under the 2025 annual bonus plan at her former employer.
• Upon joining, Susanne received an award under the LTIP of 128,385 shares, equivalent to two-thirds of 250 per cent of basic salary in respect of the financial year ending December 2025 to vest in
February 2028 in line with the Policy and subject to the achievement of performance conditions. Any shares that vest under this award will be subject to a two-year post-vesting holding period.
• A recruitment LTIP award of 105,514 shares, equivalent to £750,000, granted on 2 December 2025 with vesting in two equal tranches (50 per cent on 31 March 2027 and 50 per cent on 31 March 2028,
subject to continued employment). This award compensates Susanne for an equivalent LTIP award forfeited upon leaving her former employer and is not subject to performance conditions or a
post-vesting holding period.
• Susanne will be expected to build a shareholding equivalent to 250 per cent of basic salary and maintain it for two years post-employment.
Remuneration Committee advisers
The Committee has access to sufficient resources to discharge its duties, which includes access to independent remuneration advisers, the Company Secretary, the Group HR Director and other advisers
as required.
The Committee is responsible for appointing its external advisers and in 2018, following a competitive tender process, Korn Ferry was appointed. During 2025, Korn Ferry provided advice on the Policy,
Executive Directors’ remuneration, and market and best practice guidance, including the provisions of the Code. Its total fees for work completed in 2025 were £211,574, £164,714 of which related to
advice to the Committee (2024: £105,958), calculated on a time-cost basis.
The Committee determined that Korn Ferry provided objective and independent remuneration advice and does not have any connections with the Company or its Directors. Korn Ferry provides services
to the Company’s HR function and the Committee is satisfied that this does not impair itsindependence. Korn Ferry is a signatory to the Code of Conduct for Remuneration Consultants in the UK.
Chart 18: Shareholder voting at the 2025 AGM
Votes for
(including
discretionary) For (%) Votes against Against (%) Total votes cast Votes withheld
1
To approve the Directors’ Remuneration Report for the financial year ended 31 December 2024
1,009,059,135 90.36 107,669,209 9.64 1,116,728,344 276,862
To approve the Directors’ Remuneration Policy contained in the Directors’ Remuneration Report for thefinancial
year ended 31 December 2024
1,083,807,602 97.05 32,892,921 2.95 1,116,700,523 302,074
1 A withheld vote is not a vote in law and is not counted in the calculation of the proportion of votes cast for and against a resolution.
Malus and clawback
Malus and clawback provisions apply to the bonus and awards made under the DSBP and LTIP over
the time periods detailed below and may apply in the following circumstances:
• fraud or serious misconduct on the part of the participant;
• a serious misstatement in the Company’s financial results;
• an error in assessing performance conditions, resulting in an overpayment;
• when Company performance was achieved as a result of excessive risk taking;
• serious reputational damage; or
• corporate failure.
Malus
Clawback
Bonus
—
Up to three years from the payment date
DSBP
Until the award(s) vest
—
LTIP
Until the award(s) vest
Up to two years from the vesting date
The Committee is satisfied that any circumstances that would give rise to a potential malus/
clawback scenario would be likely to be identified during these time periods. No potential
circumstances were identified and there was no exercise of malus/clawback under the Policy
duringthe year.
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Directors' Remuneration Report continued
Policy on service contracts
Executive Directors
The Company may terminate the Executive Directors’ service contract on up to 12 months’ notice,
with no liquidating damages provisions.
Non-Executive Directors
The Chair and the Non-Executive Directors have letters of appointment which set out their duties
and anticipated time commitment to the Company. They are required to disclose to the Board any
changes to their other significant commitments. The Non-Executive Directors are appointed for
aninitial term of three years. The appointments may be extended for further three-year periods
ontherecommendation of the Nomination Committee and subject to the Board’s agreement.
TheNon-Executive Directors’ letters of appointment contain a three-month notice period and
theChair’s contains a six-month notice period. Further details are set out in Chart 19 to the right.
Chart 19: Dates of appointment and contractual notice period
Name
Date of appointment
Notice period
Andy Harrison
1
1 April 2022
6 months
David Sleath
2
1 January 2006
12 months by Company, 6 months by Director
Soumen Das
3
16 January 2017
12 months by Company, 6 months by Director
Susanne Schroeter
4
1 December 2025
12 months by Company, 6 months by Director
Mary Barnard
1 March 2019
3 months
Sue Clayton
1 June 2018
3 months
Carol Fairweather
1 January 2018
3 months
Simon Fraser
1 May 2021
3 months
Marcus Sperber
1 May 2024
3 months
Linda Yueh
1 May 2021
3 months
1 Appointed as Chair on 30 June 2022.
2 Appointed as Chief Executive on 28 April 2011.
3 Ceased to be an Executive Director of the Company with effect from 31 December 2025.
4 Appointed as Executive Director on 1 December 2025.
5 Directors’ service contracts are available for inspection at the Company’s registered office.
This report was approved by the Board on 19 February 2026 and signed on its behalf by
Simon Fraser
Chair of the Remuneration Committee
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Management Report
The Strategic Report, the Corporate Governance Report and the Directors’ Report together form
theManagement Report for the purposes of the Disclosure Guidance and Transparency Rules (DTR)
4.1.5 and 4.1.8 to 4.1.11R.
Directors’ Report disclosures
Certain Directors’ Report disclosures, which have been incorporated into the Directors’ Report by
reference, can be found on the following pages:
Disclosure
Section Reference
Culture, Purpose and Values
Strategic Report and
Governance Report
Pages 18, 25 and
79
Charitable donations
Strategic Report Page 24
Employee engagement
Strategic Report and
Governance Report Page 25
Diversity and inclusion
Strategic Report Page 25
Employment, training and advancement of disabled persons
Strategic Report Page 25
Approach to investing in and rewarding the workforce
Strategic Report Page 25
Review of the Group’s business during the year and any
future developments
Strategic Report Pages 28 to 36
Principal risks
Strategic Report Pages 59 to 68
Greenhouse gas emissions
Strategic Report Page 47
Corporate governance statement
Governance Report Page 70
Details of the Directors who served during the year
Governance Report Pages 74 to 76
Stakeholder engagement
Governance Report Pages 84 to 89
Board diversity and inclusion
Governance Report Page 96
Statement of Directors’ responsibilities
Governance Report Page 127
Financial instruments and certain financial risks
Financial Statements Pages 159 to 165
Share capital
The Company is listed on the London Stock Exchange and, as of 24 November 2020, has a
secondary listing on Euronext, Paris.
The issued share capital for the year is set out on page 165.
There is one class of share in issue and there are no restrictions on the voting rights attached
tothese shares or the transfer of securities in the Company, and all shares are fully paid.
The Company made no purchases of its own shares during the year. The Company was granted
authority to make market purchases of its own shares at the 2025 AGM. This authority will expire
atthe conclusion of the 2026 AGM where a resolution will be proposed to seek further authority.
Recent share history of the Company
For information on the recent share history of the Company, see www.SEGRO.com/investors/
shareholder-information/recent-share-history.
Dividends
Subject to approval by shareholders at the 2026 AGM, a final dividend of 21.4 pence per share will
bepaid (2024: 20.2 pence) bringing the total dividend for 2025 to 31.1 pence (2024: 29.3 pence).
Thefinal dividend will be paid as a Property Income Distribution. The Board has decided not to offer
a Scrip alternative in respect of the 2025 Final Dividend.
The ex-dividend date for the final dividend will be 26 March 2026, the record date will be 27 March 2026
and the payment date will be 8 May 2026.
Change of control
• Contracts
There are a number of contracts that could allow the counterparties to terminate or alter those
arrangements in the event of a change of control of the Company. These arrangements are
commercially confidential and their disclosure could be seriously prejudicial to the Company.
• Borrowings and other financial instruments
The Group has a number of borrowing facilities provided by various lenders. These facilities
generally include provisions that may require any outstanding borrowings to be repaid or the
amendment or termination of the facilities upon the occurrence of a change of control of
theCompany.
• Employee share plans
The Company’s share plans contain provisions as a result of which options and awards may vest
or become exercisable on change of control of the Company, in accordance with the rules of
theplans.
Modern slavery and human rights
SEGRO operates a Human Rights Policy which brings together a number of our existing policies
thatrelate to human rights such as our Modern Slavery and Labour Standards Supplier Code,
andAnti-Slavery and Human Trafficking Policy. Copies of our policies that relate to human rights
can be found on our website www.SEGRO.com.
The Company publishes an annual Modern Slavery and Human Trafficking Statement in compliance
with the UK Modern Slavery Act 2015. The Board approved the latest statement in June 2025 and it
can be found on our website at www.SEGRO.com/modern-slavery.
Modern slavery awareness posters, which contain information on key signs of modern slavery,
howand where to access help, and details of our whistleblowing reporting service are displayed on
SEGRO development sites and in all our offices. We also deliver targeted modern slavery awareness
training to certain employees and teams who should receive further training due to the nature
oftheir role. In particular, teams which deal with suppliers, visit sites and meet contractors more
regularly are best placed to more effectively uncover potential instances of modern slavery
andhuman trafficking. In addition, all employees complete mandatory online training on
modernslavery every three years. We continue to require new starters to pass this training as part
oftheir induction.
Any employee who breaches our Anti-Slavery and Human Trafficking Policy or Human Rights Policy
will face disciplinary action, which could result in dismissal for misconduct or gross misconduct.
Wereserve the right to terminate our relationship with other individuals and organisations working
on our behalf if they do not comply with our Modern Slavery and Labour Standards Supplier Code.
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Directors’ Report
Employees and Directors
There are no agreements between the Company and its Directors or employees providing for
compensation for loss of office or employment that occurs specifically because of a takeover bid,
with the exception of provisions of the Company’s share schemes as detailed above.
• Directors’ authorities in relation to shares
The Directors’ authorities in relation to issuing, allotting or buying back shares are governed by
the Company’s Articles of Association and the resolutions passed by shareholders at a general
meeting. These documents do not form part of this Report.
• Process for appointment/removal of Directors
The Company is governed by its Articles of Association, the UK Corporate Governance Code,
theCompanies Act 2006 and related legislation with regard to the appointment and removal
ofDirectors. Directors are appointed by the Board and elected by shareholders. Directors may
beremoved by the Board or shareholders as applicable.
Substantial interests in the share capital of the Company
Information provided to the Company under the Disclosure Guidance and Transparency Rules
(DTR5) is published on a Regulatory Information Service and on the Company’s website. As at
31December 2025 and 19 February 2026, the Company had been notified of the following holdings:
As at 31 December 2025 As at 19 February 2026
Shareholder
Number of
shares
Percentage of
issued share
capital (%)
Number of
shares
Percentage of
issued share
capital (%)
1
BlackRock, Inc.
2
137,220,709 10.13 139,248,542 10.28
Norges Bank
111,520,923 8.33 111,520,923 8.33
APG Asset Management N.V.
73,411,178 5.99 73,411,178 5.99
T. Rowe Price Associates, Inc.
69,444,683 5.13 69,444,683 5.13
1 Percentage based on ordinary shares in issue as at the date the notification was received by the Company.
2 On 20 January 2026, BlackRock, Inc. notified the Company of an increase in voting rights to 139,107,761 (representing 10.26 per
cent of the Company’s issued share capital). On 21 January 2026, BlackRock, Inc. notified the Company of an increase in voting
rights to 139,248,542 (representing 10.28 per cent of the Company’s issued share capital).
Articles of Association
Shareholders may amend the Company’s Articles of Association by special resolution.
Political donations
No political donations were made by the Company or its subsidiaries during the year.
Research and development activities
The Group continues to invest in new technology and systems and to develop new products and
services to improve operating efficiency and strengthen its proposition for occupiers, employees
and customers.
Directors’ indemnities and insurance
The Company maintains directors’ and officers’ liability insurance which is reviewed annually and is
permitted under the Company’s Articles of Association and the Companies Act 2006. The Company
indemnifies each Director, under a Deed of Indemnity, against any liability incurred in relation to acts
or omissions arising in the ordinary course of their duties. The indemnity applies only to the extent
permitted by law.
No Company Directors were indemnified during the year.
Overseas branches
The Company has a branch in Paris, France.
Auditor of the Company
A resolution to reappoint PricewaterhouseCoopers LLP as auditor of the Company is to be proposed
at the 2026 AGM.
Disclosure of information to the Auditor
Each of the persons who is a Director at the date of approval of this Report confirms that:
• so far as the Director is aware, there is no relevant audit information of which the Company’s
auditor is unaware; and
• each Director has taken all the steps that they ought to have taken as a Director in order to make
themself aware of any relevant audit information and to establish that the Company’s auditor is
aware of that information.
This confirmation is given and should be interpreted in accordance with the provisions of section
418 of the Companies Act 2006.
The Directors’ Report has been approved by the Board and signed on its behalf by
Stephanie Murton
Company Secretary
19 February 2026
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Directors’ Report continued
The Directors are responsible for preparing the Annual Report and Accounts in accordance with
applicable law and regulation.
Company law requires the Directors to prepare Financial Statements for each financial year.
Underthat law the Directors have prepared the Group Financial Statements in accordance with
UK-adopted international accounting standards and the Company Financial Statements in
accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom
Accounting Standards, comprising FRS 101 “Reduced Disclosure Framework”, and applicable law).
The Group has also prepared Financial Statements in accordance with international financial
reporting standards adopted pursuant to Regulation (EC) No 1606/2002 as it applies in the
European Union.
Under company law, Directors must not approve the Financial Statements unless they are satisfied
that they give a true and fair view of the state of affairs of the Group and Company and of the
profitor loss of the Group for that period. In preparing the Financial Statements the Directors are
requiredto:
• select suitable accounting policies and then apply them consistently;
• state whether applicable UK-adopted international accounting standards and international
financial reporting standards adopted pursuant to Regulation (EC) No 1606/2002 as it applies in
the European Union have been followed for the Group Financial Statements and United Kingdom
Accounting Standards, comprising FRS 101 have been followed for the Company Financial
Statements, subject to any material departures disclosed and explained in the Financial Statements;
• make judgements and accounting estimates that are reasonable and prudent; and
• prepare the Financial Statements on the going concern basis unless it is inappropriate to presume
that the Group and Company will continue in business.
The Directors are also responsible for safeguarding the assets of the Group and Company and
hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The Directors are responsible for keeping adequate accounting records that are sufficient to show
and explain the Group’s and Company’s transactions and disclose with reasonable accuracy at any
time the financial position of the Group and Company and enable them to ensure that the Financial
Statements and the Directors’ Remuneration Report comply with the Companies Act 2006.
The Directors are responsible for the maintenance and integrity of the Company’s website.
Legislation in the United Kingdom governing the preparation and dissemination of Financial
Statements may differ from legislation in other jurisdictions.
Directors’ confirmations
The Directors consider that the Annual Report and Accounts, taken as a whole, is fair, balanced and
understandable and provides the information necessary to assess the Group’s and Company’s
position and performance, business model and strategy.
Each of the Directors, whose names and functions are listed in the Governance section of the
Annual Report confirm that, to the best of their knowledge:
• the Group Financial Statements, which have been prepared in accordance with UK-adopted
international accounting standards and international financial reporting standards adopted
pursuant to Regulation (EC) No 1606/2002 as it applies in the European Union, give a true and
fairview of the assets, liabilities, financial position and profit of the Group;
• the Company Financial Statements, which have been prepared in accordance with United
Kingdom Accounting Standards, comprising FRS 101, give a true and fair view of the assets,
liabilities and financial position of the Company; and
• the Strategic Report includes a fair review of the development and performance of the business
and the position of the Group and Company, together with a description of the principal risks
anduncertainties that it faces.
By order of the Board
David Sleath Susanne Schroeter
Chief Executive Chief Financial Officer
19 February 2026 19 February 2026
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Statement of Directors’ responsibilities in respect of the Financial Statements
Financial
statements
Independent Auditors’ Report tothe
members of SEGROplc 129
Group Income Statement 136
Group Statement of Comprehensive
Income 136
Balance Sheets 137
Statements of Changes in Equity 138
Cash Flow Statement 140
Notes to the Financial Statements 141
Five-year financial results 188
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SEGRO Parc des Petit Carreaux,
France
Report on the audit of the financial statements
Opinion
In our opinion:
• SEGRO plc’s Group financial statements and Company financial statements (the “financial
statements”) give a true and fair view of the state of the Group’s and of the Company’s affairs as at
31 December 2025 and of the Group’s profit and the Group’s cash flows for the year then ended;
• the Group financial statements have been properly prepared in accordance with UK-adopted
international accounting standards as applied in accordance with the provisions of the
Companies Act 2006;
• the Company financial statements have been properly prepared in accordance with United
Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards,
including FRS 101 “Reduced Disclosure Framework”, and applicable law); and
• the financial statements have been prepared in accordance with the requirements of the
Companies Act 2006.
We have audited the financial statements, included within the Annual Report & Accounts 2025
(the“Annual Report”), which comprise:
• the Group and Company Balance Sheets as at 31 December 2025;
• the Group Income Statement and the Group Statement of Comprehensive Income for the year
then ended;
• the Group Cash Flow Statement for the year then ended;
• the Group and Company Statements of Changes in Equity for the year then ended; and
• the notes to the financial statements, comprising material accounting policy information and
other explanatory information.
Our opinion is consistent with our reporting to the Audit Committee.
Separate opinion in relation to international financial reporting standards adopted pursuant
toRegulation (EC) No 1606/2002 as it applies in the European Union
As explained in note 1 to the financial statements, the Group, in addition to applying UK-adopted
international accounting standards, has also applied international financial reporting standards
adopted pursuant to Regulation (EC) No 1606/2002 as it applies in the European Union.
In our opinion, the Group financial statements have been properly prepared in accordance with
international financial reporting standards adopted pursuant to Regulation (EC) No 1606/2002
asitapplies in the European Union.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (“ISAs (UK)”),
International Standards on Auditing issued by the International Auditing and Assurance Standards Board
(“ISAs”) and applicable law. Our responsibilities under ISAs (UK) and ISAs are further described in the
Auditors’ responsibilities for the audit of the financial statements section of our report. We believe that the
audit evidence we have obtained is sufficient and appropriate to provide a basis forour opinion.
Independence
We remained independent of the Group in accordance with the ethical requirements that are
relevant to our audit of the financial statements in the UK, which includes the FRC’s Ethical
Standard, as applicable to listed public interest entities, and the International Code of Ethics
forProfessional Accountants (including International Independence Standards) issued by the
International Ethics Standards Board for Accountants (IESBA Code), and we have fulfilled our other
ethical responsibilities in accordance with these requirements.
To the best of our knowledge and belief, we declare that non-audit services prohibited by either the
FRC’s Ethical Standard or Article 5(1) of Regulation (EU) No 537/2014 were not provided.
Other than those disclosed in Note 6 to the Financial Statements, we have provided no non-audit
services to the Company or its controlled undertakings in the period under audit.
Our audit approach
Overview
Audit scope
• We tailored the scope of our audit to ensure that we performed enough work to be able to give an
opinion on the financial statements as a whole.
• Audit procedures on Rental Income, Journal Entries, and Valuation of Investment Properties are
performed centrally by the Group audit team in the UK.
• The Group audit team in the UK conducted a full scope audit of SEGRO plc, while auditors in
France, Germany, Poland and Italy performed audit of specific balances and transactions. Overall,
this provided coverage over 95% of total assets of the Group.
• The Group’s properties are also held through joint venture entities, which are equity accounted.
The Group audit team audited specific balances and transactions related to SEGRO European
Logistics Partnership (SELP) Joint Venture.
Key audit matters
• Valuation of investment properties (Group)
• Valuation of investments in and loans to subsidiaries (Company)
Materiality
• Overall Group materiality: £181 million (2024: £175 million) based on 1% of total assets.
• Overall Company materiality: £124 million (2024: £122 million) based on 1% of total assets.
• Performance materiality: £135 million (2024: £132 million) (Group) and £93 million
(2024:£92million) (Company).
The scope of our audit
As part of designing our audit, we determined materiality and assessed the risks of material
misstatement in the financial statements.
Key audit matters
Key audit matters are those matters that, in the auditors’ professional judgement, were of most
significance in the audit of the financial statements of the current period and include the most
significant assessed risks of material misstatement (whether or not due to fraud) identified by the
auditors, including those which had the greatest effect on: the overall audit strategy; the allocation
of resources in the audit; and directing the efforts of the engagement team. These matters, and any
comments we make on the results of our procedures thereon, were addressed in the context of our
audit of the financial statements as a whole, and in forming our opinion thereon, and we do not
provide a separate opinion on these matters.
This is not a complete list of all risks identified by our audit.
The key audit matters below are consistent with last year.
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Independent auditors’ report to the members of SEGRO plc
Valuation of investment properties (Group)
Given the inherent subjectivity involved in the valuation of investment properties, the need for deep market knowledge when
determining the most appropriate assumptions, and the technicalities of the valuation methodology, we engaged our internal
valuation experts (qualified chartered surveyors) to assist us in our audit of this matter.
Assessing the Group’s external Valuers’ expertise and objectivity
We assessed the Valuers’ qualifications and expertise and read their terms of engagement with the Group to determine whether
there were any matters that might have affected their objectivity or may have imposed scope limitations upon their work. We also
considered fees and other contractual arrangements that might exist between the Group and the Valuers. We found no evidence to
suggest that the objectivity of the Valuers was compromised.
Testing the valuations assumptions and capital movement:
We obtained and read the CBRE valuation reports covering all of the Group’s investment properties. We held meetings with
management and the Valuers, at which the valuations and the key assumptions therein were discussed. We focused on outliers
(where the assumptions used and/or year on year capital value movement were out of line with our range of assumptions
developed using externally published market data for the relevant sector).
To verify that the valuation approach was suitable for use in determining the carrying value for investment properties in the Financial
Statements, we:
• Confirmed that the valuation approach was in accordance with RICS standards;
• Obtained valuation details of every property held by the Group and developed ranges for each key valuation assumption or
capital value movement, determined by reference to published benchmarks and using our experience and knowledge of the
market. Compared the investment yields used by the Valuers with the expected range of yields and the year on year capital
movement to our expected range;
• Assessed the reasonableness of other assumptions that are not readily comparable with published benchmarks;
• With the support of our internal valuation experts, we also questioned the external valuers as to the extent to which recent market
transactions and expected rental values used in deriving their valuations took into account the impact of climate change and
related ESG considerations; and
• Verified where there could be alternative use opportunities, that this had been appropriately taken into account.
In addition to the above, where assumptions were outside the expected range or otherwise appeared unusual, and/or valuations
showed unexpected movements, we undertook further investigations and, when necessary, held further discussions with the
Valuers and obtained evidence to support explanations received. The supporting evidence and valuation commentaries provided by
the Valuers, enabled us to consider the property specific factors that had or may have had an impact on value, including recent
comparable transactions where appropriate.
Information and standing data
We agreed the amounts per the valuation reports to the accounting records and from there we agreed the related balances through
to the Financial Statements. We tested the standing data which the Group provided to the Valuers for use in the performance of the
valuation. This involved testing controls on a sample basis over the input of lease data for leases and testing the accuracy of lease
and other property information. For development properties, we also confirmed that the supporting information for construction
contracts and budgets was consistent with the Group’s records, for example by inspecting construction contracts. For development
properties, capitalised expenditure was tested on a sample basis to invoices, and budgeted costs to complete were compared with
supporting evidence (for example construction contracts) to support the inputs included within their valuation at the year end.
Overall outcome
We concluded that the assumptions used in the valuations by the Valuers were supportable in light of the evidence obtained.
Refer to the Audit Committee Report and the Financial
Statements (including notes to the Financial Statements; Note 1,
Material Accounting Policy Information; Note 13, Investment
Properties; and Note 25. Property Valuation Techniques,
Sustainability and Climate Change Considerations and Related
Quantitative Information).
We focused on the valuation of investment properties because
investment properties represent the principal element of the net
asset value as disclosed in the Balance Sheet in the financial
statements and is an area of significant estimation uncertainty.
The portfolio is held by the Group, and through joint ventures
and includes warehouses and light industrial buildings, including
data centres. These are concentrated in the UK, France, Germany
and Italy. The remainder of the portfolio is located across other
European countries including Poland, Spain, the Netherlands and
the Czech Republic.
The portfolio includes completed investment properties and
development properties. The valuation of the Group’s portfolio is
inherently subjective due to, among other factors, the individual
nature of each property, its location and the expected future
rentals for that particular property. The significance of the
estimates and judgements involved, coupled with the fact that
only a small percentage difference in individual property
valuations, when aggregated, could result in a material
misstatement, warranted specific audit focus in this area. For
development sites, factors include projected costs to complete,
time until practical completion and the ability to let if no pre-let
agreement is in place.
Valuations are carried out by third party valuers CBRE (the
‘Valuers’). The Valuers were engaged by the directors, and
performed their work in accordance with the Royal Institution of
Chartered Surveyors (‘RICS’) Valuation – Global Standards 2024.
The valuations take into account the property-specific
information including the current tenancy agreements and rental
income, condition and location of the property, and future rental
prospects, as well as prevailing market yields and market
transactions.
Key audit matter How our audit addressed the key audit matter
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Valuation of investments in and loans
tosubsidiaries (Company)
We assessed the accounting policy for investments and loans to subsidiaries to ensure they were compliant with the applicable
accounting standards. We obtained the directors’ impairment assessment for the recoverability of investments in and loans to
subsidiaries as at 31 December 2025. We verified that the methodology used by the directors in arriving at the carrying value of each
subsidiary, and the expected credit loss provision for intercompany receivables, was compliant with applicable accounting
standards. We identified the key estimate within the assessment for impairment of both the investments and loans to subsidiaries to
be the underlying valuation of investment property held by the subsidiaries.
For details of our procedures over investment property valuations please refer to the Group key audit matter above. We have no
matters to report in respect of this work.
Refer to Note 7 (Investments by the Company) to the financial
statements which discloses the Company’s investments in and
loans to subsidiaries as at 31 December 2025. This is following the
recognition of a provision for impairment on investments in and
loans to subsidiaries recognised in the year. The Company’s
accounting policy for investments and loans is to hold them at
cost less any impairment. Impairment of the loans is calculated in
accordance with International Financial Reporting Standard 9
(Financial Instruments). Investments in subsidiaries are assessed
for impairment in line with International Accounting Standard 36
(Impairment of Assets). Given the inherent judgement in
assessing both the carrying value of a subsidiary Company and
the expected credit loss of intercompany loan receivables, this
was identified as a key audit matter.
Key audit matter How our audit addressed the key audit matter
How we tailored the audit scope
We tailored the scope of our audit to ensure that we performed enough work to be able to give an
opinion on the financial statements as a whole, taking into account the structure of the Group and
the Company, the accounting processes and controls, and the industry in which they operate.
The Group’s reportable segments are the two property businesses: United Kingdom (UK) and
Continental Europe (CE). In establishing the overall approach to the Group audit, we determined
thetype of work that needed to be performed at reporting components, based on regions and
countries within the UK and CE, by us, as the Group engagement team, or component auditors
operating under our instruction.
The Group operates a common IT environment, processes and controls for rental income and
payroll across its reported segments. The Group’s valuation and treasury functions are also based at
the corporate centre in the UK. The related balances were therefore largely audited by the Group
audit team in the UK, including balances held by SELP. Additionally, audits of specific balances and
specified procedures were performed by component audit teams, such that the total testing
programme provided sufficient audit evidence over all financial statement line items.
We determined the level of involvement we needed to have in the component auditor’s work to be
able to conclude whether sufficient appropriate audit evidence had been obtained as a basis for our
opinion on the Group financial statements as a whole. We issued formal, written instructions to the
component auditors setting out the work to be performed by each of them. Throughout the audit
process, the Group audit team has been in close contact with the audit teams on location in each
region to oversee the audit process. Senior team members also attended the clearance meetings
for each component. During the clearance meetings, the results of the work performed by all
component teams were discussed. The Group engagement team also evaluated the sufficiency of
the audit evidence obtained by component teams. Taking into account the components, the
centralised and other testing performed, coverage over the total assets of the Group was over 95%.
In respect of the Company financial statements, the Group audit team performed a full scope
statutory audit.
The impact of climate risk on our audit
In planning our audit, we made enquiries with management to understand the extent of the
potential impact of climate change risk on the financial statements. Our evaluation of this
conclusion included challenging key judgements and estimates in areas where we considered that
there was greatest potential for climate change impact. We particularly considered how climate
change risks would impact the assumptions made in the valuation of investment properties as
explained in our key audit matter above. We also considered the consistency of the disclosures in
relation to climate change made within the Annual Report, the financial statements and the
knowledge obtained from our audit.
Materiality
The scope of our audit was influenced by our application of materiality. We set certain quantitative
thresholds for materiality. These, together with qualitative considerations, helped us to determine
the scope of our audit and the nature, timing and extent of our audit procedures on the individual
financial statement line items and disclosures and in evaluating the effect of misstatements, both
individually and in aggregate on the financial statements as a whole.
Based on our professional judgement, we determined materiality for the financial statements as a
whole as follows:
Financial statements – Group
Financial statements – Company
Overall materiality
£181 million (2024: £175 million).
£ 124 million (2024: £122 million).
How we determined it
1% of total assets
1% of total assets
Rationale for
benchmark applied
The primary measurement attribute
ofthe Group is the carrying value of
investment properties. On this basis,
weset an overall Group materiality
levelbased on total assets.
The primary measurement attribute of
the Company is the carrying value of
investments in subsidiaries. On this
basis, we set an overall Company
materiality level based on total assets.
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For each component in the scope of our Group audit, we allocated a materiality that is less than
ouroverall Group materiality. The range of materiality allocated across components was between
£37 million and £171 million. Certain components were audited to a local statutory audit materiality
that was also less than our overall Group materiality.
We use performance materiality to reduce to an appropriately low level the probability that the
aggregate of uncorrected and undetected misstatements exceeds overall materiality. Specifically,
we use performance materiality in determining the scope of our audit and the nature and extent
ofour testing of account balances, classes of transactions and disclosures, for example in
determining sample sizes. Our performance materiality was 75% (2024: 75%) of overall materiality,
amounting to£135 million (2024: £132 million) for the Group financial statements and £93 million
(2024: £92 million) for the Company financial statements.
In determining the performance materiality, we considered a number of factors - the history of
misstatements, risk assessment and aggregation risk and the effectiveness of controls - and
concluded that an amount at the upper end of our normal range was appropriate.
We agreed with the Audit Committee that we would report to them misstatements identified
duringour audit above £9 million (Group audit) (2024: £9 million) and £6 million (Company audit)
(2024:£6 million) as well as misstatements below those amounts that, in our view, warranted
reporting for qualitative reasons.
Conclusions relating to going concern
Our evaluation of the directors’ assessment of the Group’s and the Company’s ability to continue to
adopt the going concern basis of accounting included:
• Procedures to identify events or conditions that may cast significant doubt on the ability to
continue as a going concern and whether or not a material uncertainty related to going
concernexists;
• Obtaining the directors’ assessment of going concern and assessing the impact and the basis
forthe downside stress scenarios that have been applied;
• Tested the integrity of the underlying formulas and calculations within the going concern and
cashflow models;
• Evaluation and corroboration of management’s significant assumptions used to assess going
concern. This includes upcoming debt maturities, contracted capital expenditure and operational
cash flows, and whether or not they are appropriate in the context of changes from prior periods
and align with our understanding of the entity and other relevant areas of the entity’s business
activities;
• Review of potential financial or non-financial debt covenant defaults leading to acceleration of
repayment of borrowing facilities; and
• Assessing the Group and Company’s liquidity and whether the entity has adequately disclosed all
required going concern events and conditions.
Based on the work we have performed, we have not identified any material uncertainties relating to
events or conditions that, individually or collectively, may cast significant doubt on the Group’s and
the Company’s ability to continue as a going concern for a period of at least twelve months from
when the financial statements are authorised for issue.
In auditing the financial statements, we have concluded that the directors’ use of the going concern
basis of accounting in the preparation of the financial statements is appropriate.
However, because not all future events or conditions can be predicted, this conclusion is not a
guarantee as to the Group’s and the Company’s ability to continue as a going concern.
In relation to the directors’ reporting on how they have applied the UK Corporate Governance Code,
we have nothing material to add or draw attention to in relation to the directors’ statement in the
financial statements about whether the directors considered it appropriate to adopt the going
concern basis of accounting.
Our responsibilities and the responsibilities of the directors with respect to going concern are
described in the relevant sections of this report.
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Reporting on other information
The other information comprises all of the information in the Annual Report other than the financial
statements and our auditors’ report thereon. The directors are responsible for the other information.
Our opinion on the financial statements does not cover the other information and, accordingly, we
do not express an audit opinion or, except to the extent otherwise explicitly stated in this report, any
form of assurance thereon.
In connection with our audit of the financial statements, our responsibility is to read the other
information and, in doing so, consider whether the other information is materially inconsistent
withthe financial statements or our knowledge obtained in the audit, or otherwise appears to be
materially misstated. If we identify an apparent material inconsistency or material misstatement,
weare required to perform procedures to conclude whether there is a material misstatement
ofthefinancial statements or a material misstatement of the other information. If, based on the work
we have performed, we conclude that there is a material misstatement of this other information,
weare required to report that fact. We have nothing to report based on these responsibilities.
With respect to the Strategic report and Directors’ Report, we also considered whether the
disclosures required by the UK Companies Act 2006 have been included.
Based on our work undertaken in the course of the audit, the Companies Act 2006 requires us also
to report certain opinions and matters as described below.
Strategic report and Directors’ Report
In our opinion, based on the work undertaken in the course of the audit, the information given in the
Strategic report and Directors’ Report for the year ended 31 December 2025 is consistent with the
financial statements and has been prepared in accordance with applicable legal requirements.
In light of the knowledge and understanding of the Group and Company and their environment
obtained in the course of the audit, we did not identify any material misstatements in the Strategic
report and Directors’ Report.
Directors’ Remuneration
In our opinion, the part of the Directors’ Remuneration Report to be audited has been properly
prepared in accordance with the Companies Act 2006.
Corporate governance statement
The Listing Rules require us to review the directors’ statements in relation to going concern, longer-
term viability and that part of the corporate governance statement relating to the Company’s
compliance with the provisions of the UK Corporate Governance Code specified for our review. Our
additional responsibilities with respect to the corporate governance statement as other information
are described in the Reporting on other information section of this report.
Based on the work undertaken as part of our audit, we have concluded that each of the following
elements of the corporate governance statement is materially consistent with the financial
statements and our knowledge obtained during the audit, and we have nothing material to add or
draw attention to in relation to:
• The directors’ confirmation that they have carried out a robust assessment of the emerging and
principal risks;
• The disclosures in the Annual Report that describe those principal risks, what procedures are in
place to identify emerging risks and an explanation of how these are being managed or mitigated;
• The directors’ statement in the financial statements about whether they considered it appropriate
to adopt the going concern basis of accounting in preparing them, and their identification of any
material uncertainties to the Group’s and Company’s ability to continue to do so over a period of
at least twelve months from the date of approval of the financial statements;
• The directors’ explanation as to their assessment of the Group’s and Company’s prospects, the
period this assessment covers and why the period is appropriate; and
• The directors’ statement as to whether they have a reasonable expectation that the Company will
be able to continue in operation and meet its liabilities as they fall due over the period of its
assessment, including any related disclosures drawing attention to any necessary qualifications or
assumptions.
Our review of the directors’ statement regarding the longer-term viability of the Group and
Company was substantially less in scope than an audit and only consisted of making inquiries and
considering the directors’ process supporting their statement; checking that the statement is in
alignment with the relevant provisions of the UK Corporate Governance Code; and considering
whether the statement is consistent with the financial statements and our knowledge and
understanding of the Group and Company and their environment obtained in the course of the
audit. In addition, based on the work undertaken as part of our audit, we have concluded that each
of the following elements of the corporate governance statement is materially consistent with the
financial statements and our knowledge obtained during the audit:
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In addition, based on the work undertaken as part of our audit, we have concluded that each of the
following elements of the corporate governance statement is materially consistent with the financial
statements and our knowledge obtained during the audit:
• The directors’ statement that they consider the Annual Report, taken as a whole, is fair, balanced
and understandable, and provides the information necessary for the members to assess the
Group’s and Company’s position, performance, business model and strategy;
• The section of the Annual Report that describes the review of effectiveness of risk management
and internal control systems; and
• The section of the Annual Report describing the work of the Audit Committee.
We have nothing to report in respect of our responsibility to report when the directors’ statement
relating to the Company’s compliance with the Code does not properly disclose a departure from
arelevant provision of the Code specified under the Listing Rules for review by the auditors.
Responsibilities for the financial statements and the audit
Responsibilities of the directors for the financial statements
As explained more fully in the Statement of Directors’ responsibilities in respect of the Financial
Statements, the directors are responsible for the preparation of the financial statements in
accordance with the applicable framework and for being satisfied that they give a true and fair view.
The directors are also responsible for such internal control as they determine is necessary to enable
the preparation of financial statements that are free from material misstatement, whether due to
fraud or error.
In preparing the financial statements, the directors are responsible for assessing the Group’s and
the Company’s ability to continue as a going concern, disclosing, as applicable, matters related to
going concern and using the going concern basis of accounting unless the directors either intend
to liquidate the Group or the Company or to cease operations, or have no realistic alternative but to
do so.
Auditors’ responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a
whole are free from material misstatement, whether due to fraud or error, and to issue an auditors’
report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a
guarantee that an audit conducted in accordance with ISAs (UK) and ISAs will always detect a
material misstatement when it exists. Misstatements can arise from fraud or error and are
considered material if, individually or in the aggregate, they could reasonably be expected to
influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design
procedures in line with our responsibilities, outlined above, to detect material misstatements in
respect of irregularities, including fraud. The extent to which our procedures are capable of
detecting irregularities, including fraud, is detailed below.
Based on our understanding of the Group and industry, we identified that the principal risks of non-
compliance with laws and regulations related to compliance with the Real Estate Investment Trust
(REIT) status and SIIC regime and the UK regulatory principles, such as those governed by the
Financial Conduct Authority, and we considered the extent to which non-compliance might have a
material effect on the financial statements. We also considered those laws and regulations that have
a direct impact on the financial statements such as the Companies Act 2006. We evaluated
management’s incentives and opportunities for fraudulent manipulation of the financial statements
(including the risk of override of controls), and determined that the principal risks were related to
posting inappropriate journal entries to increase revenue, and management bias in accounting
estimates and judgemental areas of the Financial Statements such as valuation of investment
properties. The Group engagement team shared this risk assessment with the component auditors
so that they could include appropriate audit procedures in response to such risks in their work. Audit
procedures performed by the Group engagement team and/or component auditors included:
• Discussions with management and internal audit, including consideration of known or suspected
instances of non-compliance with laws and regulations and fraud, and review of the reports made
by internal audit;
• Understanding management’s internal controls designed to prevent and detect irregularities;
• Assessment of matters, if any, reported on the Group’s whistleblowing helpline and the results of
management’s investigation of such matters;
• Reviewing the Group’s litigation register in so far as it related to non-compliance with laws and
regulations and fraud;
• Reviewing relevant meeting minutes, including those of the Board of Directors and the Audit
Committee;
• Designing audit procedures to incorporate unpredictability around the nature, timing and extent
of our testing;
• Review of tax compliance with the involvement of our tax specialists in the audit;
• Procedures relating to the valuation of investment properties described in the related key audit
matter above; and
• Identifying and testing journal entries, in particular any journal entries posted with unusual
account combinations.
There are inherent limitations in the audit procedures described above. We are less likely to become
aware of instances of non-compliance with laws and regulations that are not closely related to
events and transactions reflected in the financial statements. Also, the risk of not detecting a
material misstatement due to fraud is higher than the risk of not detecting one resulting from error,
as fraud may involve deliberate concealment by, for example, forgery or intentional
misrepresentations, or through collusion.
Our audit testing might include testing complete populations of certain transactions and balances,
possibly using data auditing techniques. However, it typically involves selecting a limited number of
items for testing, rather than testing complete populations. We will often seek to target particular
items for testing based on their size or risk characteristics. In other cases, we will use audit sampling
to enable us to draw a conclusion about the population from which the sample is selected.
A further description of our responsibilities for the audit of the financial statements in accordance
with ISAs (UK) is located on the FRC’s website at: www.frc.org.uk/auditorsresponsibilities. This
description forms part of our auditors’ report.
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As part of an audit in accordance with ISAs, we exercise professional judgement and maintain
professional scepticism throughout the audit. We also:
• Identify and assess the risks of material misstatement of the consolidated financial statements,
whether due to fraud or error, design and perform audit procedures responsive to those risks, and
obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk
of not detecting a material misstatement resulting from fraud is higher than for one resulting from
error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the
override of internal control.
• Obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of the Group’s and Company’s internal control.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by management.
• Conclude on the appropriateness of management’s use of the going concern basis of accounting
and, based on the audit evidence obtained, whether a material uncertainty exists related to
events or conditions that may cast significant doubt on the Group’s and Company’s ability to
continue as a going concern. If we conclude that a material uncertainty exists, we are required to
draw attention in our auditor’s report to the related disclosures in the consolidated financial
statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are
based on the audit evidence obtained up to the date of our auditor’s report. However, future
events or conditions may cause the Group to cease to continue as a going concern.
• Evaluate the overall presentation, structure and content of the consolidated financial statements,
including the disclosures, and whether the consolidated financial statements represent the
underlying transactions and events in a manner that achieves fair presentation.
• Obtain sufficient appropriate audit evidence regarding the financial information of the entities or
business activities within the Group and Company to express an opinion on the consolidated
financial statements. We are responsible for the direction, supervision and performance of the
Group and Company audit. We remain solely responsible for our audit opinion.
We communicate with those charged with governance regarding, among other matters, the
planned scope and timing of the audit and significant audit findings, including any significant
deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with
relevant ethical requirements regarding independence, and to communicate with them all
relationships and other matters that may reasonably be thought to bear on our independence, and
where applicable, actions taken to eliminate threats or safeguards applied.
From the matters communicated with those charged with governance, we determine those matters
that were of most significance in the audit of the consolidated financial statements of the current
period and are therefore the key audit matters. We describe these matters in our auditor’s report
unless law or regulation precludes public disclosure about the matter or when, in extremely rare
circumstances, we determine that a matter should not be communicated in our report because the
adverse consequences of doing so would reasonably be expected to outweigh the public interest
benefits of such communication.
Use of this report
This report, including the opinions, has been prepared for and only for the Company’s members as a
body in accordance with Chapter 3 of Part 16 of the Companies Act 2006 and for no other purpose.
We do not, in giving these opinions, accept or assume responsibility for any other purpose or to any
other person to whom this report is shown or into whose hands it may come save where expressly
agreed by our prior consent in writing.
Other required reporting
Companies Act 2006 exception reporting
Under the Companies Act 2006 we are required to report to you if, in our opinion:
• we have not obtained all the information and explanations we require for our audit; or
• adequate accounting records have not been kept by the Company, or returns adequate for our
audit have not been received from branches not visited by us; or
• certain disclosures of directors’ remuneration specified by law are not made; or
• the Company financial statements and the part of the Directors’ Remuneration Report to be
audited are not in agreement with the accounting records and returns.
We have no exceptions to report arising from this responsibility.
Appointment
We were first appointed by the Company for the financial year ended 31 December 2016. Our
uninterrupted engagement covers ten financial years.
Other matter
The Company is required by the Financial Conduct Authority Disclosure Guidance and
Transparency Rules to include these financial statements in an annual financial report prepared
under the structured digital format required by DTR 4.1.15R – 4.1.18R and filed on the National
Storage Mechanism of the Financial Conduct Authority. This auditors’ report provides no assurance
over whether the structured digital format annual financial report has been prepared in accordance
with those requirements.
Richard Porter (Senior Statutory Auditor)
for and on behalf of PricewaterhouseCoopers LLP
Chartered Accountants and Statutory Auditors
London
19 February 2026
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20252024
Notes £m£m
Revenue
4 726 675
Costs
5 (154) (144)
572 531
Administrative expenses
6 (73) (76)
Share of profit from joint ventures after tax
7 109 53
Realised and unrealised property gains
8 55 195
Operating profit
 663 703
Finance income
9 26 92
Finance costs
9 (129) (159)
Profit before tax
 560 636
Tax
10 (9) (42)
Profit after tax
 551 594
Earnings per share (pence)
Basic
12 40.7 44.7
Diluted
12 40.7 44.6
Group Statement of Comprehensive Income
For the year ended 31 December 2025
20252024
£m£m
Profit for the year
 551 594
Items that may be reclassified subsequently to profit or loss
Foreign exchange movement arising on translation of international operations
 173 (172)
Fair value movements on derivatives and borrowings in effective hedge relationships
 (96) 95
77 (77)
Tax on components of other comprehensive income/(expense)
 — —
Other comprehensive income/(expense)
 77 (77)
Total comprehensive income for the year
 628 517
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Group Income Statement
For the year ended 31 December 2025
Group
Company
20252024 20252024
Notes £m£m £m£m
Assets
Non-current assets
Intangible assets
 44 37 — —
Investment properties
13 15,998 15,303 — —
Other interests in property
 21 17 — —
Property, plant and equipment
 40 34 — 1
Investments in subsidiaries
7 — — 12,403 11,896
Investments in joint ventures
7 1,715 1,552 — —
Other investments
 16 12 — —
Other receivables
14 3 2 — —
Derivative financial instruments
17 25 48 25 48
17,862 17,005 12,428 11,945
Current assets
Trading properties
 1 6 — —
Trade and other receivables
14 185 178 20 34
Tax asset
 20 19 — —
Derivative financial instruments
17 2 3 2 3
Cash and cash equivalents
16 111 363 10 266
319 569 32 303
Total assets
 18,181 17,574 12,460 12,248
Liabilities
Non-current liabilities
Borrowings
16 4,386 4,607 3,523 3,253
Deferred tax liabilities
10 210 192 — —
Trade and other payables
15 82 70 2,159 2,124
Derivative financial instruments
17 82 75 82 75
4,760 4,944 5,764 5,452
Current liabilities
Trade and other payables
15 512 502 52 56
Borrowings
16 565 — — —
Derivative financial instruments
17 60 44 60 44
Tax liabilities
 11 35 1 1
1,148 581 113 101
Total liabilities
 5,908 5,525 5,877 5,553
Net assets
 12,273 12,049 6,583 6,695
Group
Company
20252024 20252024
Notes £m£m £m£m
Equity
Share capital
18 135 135 135 135
Share premium
19 4,569 4,569 4,569 4,569
Capital redemption reserve
19 114 114 114 114
Own shares held
19 (5) (4) (5) (4)
Other reserves
19 196 124 217 220
Retained earnings
1
 7,264 7,111 1,553 1,661
Total equity
 12,273 12,049 6,583 6,695
Net assets per ordinary share (pence)
Basic
12 907 891
Diluted
12 906 889
1 The profit of SEGRO plc (Company) in 2025 was £294 million (2024: £499 million).
The Financial Statements of SEGRO plc (registered number 167591) on pages 136 to 180 were
approved by the Board of Directors and authorised for issue on 19 February 2026 and signed
on its behalf by:
David Sleath Susanne Schroeter
Chief Executive Chief Financial Officer
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Balance Sheets
As at 31 December 2025
Other reserves
Translation,
Ordinary Capital Share-based hedging
share Share redemptionOwn shares payments and other Merger Retained
capital premium
reserve
1
held
1
reserves
1
reserves
1
reserve
1
earnings Total equity
Group
£m£m£m£m£m£m£m£m£m
Balance at 1 January 2025
135
4,569
114
(4)
25
(70)
169
7,111
12,049
Profit for the year
—
—
—
—
—
—
—
551
551
Other comprehensive income
—
—
—
—
—
77
—
—
77
Total comprehensive income for the year
—
—
—
—
—
77
—
551
628
Transactions with owners of the Company
Own shares acquired
—
—
—
(4)
—
—
—
—
(4)
Equity-settled share-based transactions
—
—
—
3
(5)
—
—
7
5
Dividends
—
—
—
—
—
—
—
(405)
(405)
Total transaction with owners of the Company
—
—
—
(1)
(5)
—
—
(398)
(404)
Balance at 31 December 2025
135
4,569
114
(5)
20
7
169
7,264
12,273
1 See Note 19.
For the year ended 31 December 2024
Other reserves
Translation,
Ordinary Capital Share-based hedging
share Share redemptionOwn shares payments and other Merger Retained
capital premium
reserve
1
held
1
reserves
1
reserves
1
reserve
1
earnings Total equity
Group
£m£m£m£m£m£m£m£m£m
Balance at 1 January 2024
123
3,577
114
(2)
28
7
169
6,888
10,904
Profit for the year
—
—
—
—
—
—
—
594
594
Other comprehensive expense
—
—
—
—
—
(77)
—
—
(77)
Total comprehensive income/(expense) for the year
—
—
—
—
—
(77)
—
594
517
Transactions with owners of the Company
Issue of shares
11
878
—
—
—
—
—
—
889
Own shares acquired
—
—
—
(5)
—
—
—
—
(5)
Equity-settled share-based transactions
—
—
—
3
(3)
—
—
8
8
Dividends
1
114
—
—
—
—
—
(379)
(264)
Total transaction with owners of the Company
12
992
—
(2)
(3)
—
—
(371)
628
Balance at 31 December 2024
135
4,569
114
(4)
25
(70)
169
7,111
12,049
1 See Note 19.
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Overview Strategic Report Governance Financial Statements Further Information
Statements of Changes in Equity
For the year ended 31 December 2025
Other reserves
Company
Ordinary
share
capital
£m
Share
premium
£m
Capital
redemption
reserve
1
£m
Own shares
held
1
£m
Share-based
payments
reserves
1
£m
Translation,
hedging
and other
reserves
1
£m
Merger
reserve
1
£m
Retained
earnings
£m
Total equity
£m
Balance at 1 January 2025
135 4,569 114 (4) 4 47 169 1,661 6,695
Profit for the year
— — — — — — — 294 294
Other comprehensive expense
— — — — — — — — —
Total comprehensive income for the year
— — — — — — — 294 294
Transactions with owners of the Company
Issue of shares
— — — — — — — — —
Own shares acquired
— — — (4) — — — — (4)
Equity-settled share-based transactions
— — — 3 (3) — — 3 3
Dividends
— — — — — — — (405) (405)
Total transaction with owners of the Company
— — — (1) (3) — — (402) (406)
Balance at 31 December 2025
135 4,569 114 (5) 1 47 169 1,553 6,583
1 See Note 19.
For the year ended 31 December 2024
Other reserves
Company
Ordinary
share
capital
£m
Share
premium
£m
Capital
redemption
reserve
1
£m
Own shares
held
1
£m
Share-based
payments
reserves
1
£m
Translation,
hedging
and other
reserves
1
£m
Merger
reserve
1
£m
Retained
earnings
£m
Total equity
£m
Balance at 1 January 2024
123 3,577 114 (2) 8 47 169 1,542 5,578
Profit for the year
— — — — — — — 499 499
Other comprehensive expense
— — — — — — — — —
Total comprehensive income for the year
— — — — — — — 499 499
Transactions with owners of the Company
Issue of shares
11 878 — — — — — — 889
Own shares acquired
— — — (5) — — — — (5)
Equity-settled share-based transactions
— — — 3 (4) — — (1) (2)
Dividends
1 114 — — — — — (379) (264)
Total transaction with owners of the Company
12 992 — (2) (4) — — (380) 618
Balance at 31 December 2024
135 4,569 114 (4) 4 47 169 1,661 6,695
1 See Note 19.
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Overview Strategic Report Governance Financial Statements Further Information
Statements of Changes in Equity continued
For the year ended 31 December 2025
Group
20252024
Notes £m£m
Cash flows from operating activities
Cash generated from operations
24(i) 492 459
Interest received
42 75
Dividends received
 63 29
Interest paid
(172) (209)
Cost of new interest rate derivatives transacted
 (4) (7)
Tax paid
 (25) (17)
Net cash received from operating activities
 396 330
Cash flows from investing activities
Purchase and development of investment properties
1
 (444) (1,000)
Sale of investment properties
 45 623
Acquisition of other interests in property
 (5) (4)
Refunds from other interests in property
 — 11
Purchase of plant and equipment and intangibles
 (29) (24)
Acquisition of other investments
 (3) (2)
Investment and loans to joint ventures
 (5) (3)
Divestment from and repayment of loans by joint ventures
 39 30
Net cash used in investing activities
 (402) (369)
Cash flows from financing activities
Dividends paid
11 (405) (277)
Proceeds from borrowings
24(iii) 268 419
Repayment of borrowings
24(iii) (88) (999)
Principal element of lease payments
24(iv) (2) (2)
Settlement of foreign exchange derivatives
 (15) 1
Proceeds from issue of ordinary shares
 — 889
Purchase of ordinary shares
 (4) (5)
Net cash (used in)/generated from financing activities
 (246) 26
Net decrease in cash and cash equivalents
 (252) (13)
Cash and cash equivalents at the beginning of the year
 363 376
Effect of foreign exchange rate changes
 — —
Cash and cash equivalents at the end of the year
16 111 363
1 Cash payment for the purchase and development of investment properties of £444 million (2024: £1,000 million) represents total costs for property acquisitions and additions to existing investment properties per Note 13 of £500 million (2024: £99 3 million) adjusted
for the following cash and non-cash movements: deducts interest capitalised of £63 million (2024: £67 million) and includes net movement in capital related accruals, prepayments and VAT of £7 million (2024: £74 million).
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Overview Strategic Report Governance Financial Statements Further Information
Cash Flow Statement
For the year ended 31 December 2025
1. Material Accounting Policy Information
General information
SEGRO plc (the Company) is a public limited company, limited by shares, incorporated, domiciled
and registered in England in the United Kingdom under the Companies Act. The address of the
registered office is given on the inside back cover.
The principal activities of the Company and its subsidiaries (the Group) and the nature of the
Group’s operations are set out in the Strategic Report on pages 18 to 19.
These Financial Statements are presented in pounds sterling to the nearest million because that
is the currency of the primary economic environment in which the Group operates and is the
functional currency of the Company.
Basis of preparation
The Group Financial Statements have been prepared in accordance with UK-adopted
International Accounting Standards (IAS) and International Financial Reporting Standards (IFRS)
adopted pursuant to Regulation (EC) No 1606/2002 as it applies in the European Union. UK adopted
International Accounting Standards differ in certain respects from International Financial Reporting
Standards as adopted by the EU. The differences have no material impact on the Financial
Statements for the periods presented, which therefore also comply with International Reporting
Standards as adopted by the EU. In addition, the Group has also disclosed additional measures
relating to the Best Practice Recommendations Guidelines issued by the European Public Real
Estate Association (EPRA) as appropriate, as discussed further in Note 2 and Note 12.
The Company’s Financial Statements have been prepared in accordance with Financial Reporting
Standard 101 Reduced Disclosure Framework (FRS 101) and the requirements of the Companies
Act 2006 as applicable to companies reporting under those standards. The Directors have taken
advantage of the exemption offered by section 408 of the Companies Act 2006 not to present
a separate income statement and statement of comprehensive income for the Company.
In these Financial Statements, the Company has applied the exemptions under FRS 101 in respect
of the following disclosures:
• IAS 7 ‘Statement of Cash Flows’ and related notes
• Disclosure in respect of transactions with wholly-owned subsidiaries
• The effects of new but not yet effective IFRSs
• Paragraph 17 of IAS 24 ‘Related Party Disclosures’
As the Group Financial Statements include the equivalent disclosures, the Company has also taken
the exemptions under FRS 101 available in respect of the following disclosures:
• The requirements of paragraphs 91–99 of IFRS 13 ‘Fair Value Measurement’ to disclose
information of fair value valuation techniques and inputs
• Disclosures required by IFRS 7 ‘Financial Instruments: Disclosures’
The Financial Statements have been prepared on a going concern basis. As discussed in the
Financial review on pages 41 and 42, the Directors have a reasonable expectation that the Company
and Group have adequate resources to continue in operational existence for a period of at least
12 months from the date of approval of the Financial Statements. The Group and Company Balance
Sheets show a net current liability position as at 31 December 2025, the Group position
predominantly due to current borrowings of £565 million. At 31 December 2025 the Group held
cash and available committed facilities of £1.6 billion (Company: £1.6 billion) with a long-dated debt
maturity profile. This provides significant liquidity for the Group and Company to meet current
liabilities as they fall due including the refinancing requirements of maturing debt, operational
requirements and capital commitments for the foreseeable future. The financial covenants have
been stress tested and substantial headroom exists against the gearing and interest cover
covenants at 31 December 2025 and the covenants are not expected to be breached for a period
of at least 12 months from the date of approval of the Financial Statements.
The Financial Statements have been prepared under the historical cost convention as modified
by the revaluation of properties and certain financial assets and liabilities including derivatives.
The accounting policies set out below have, unless otherwise stated, been applied consistently
to all periods presented in these Group and Company Financial Statements.
New and amended standards adopted
The Group and Company has applied the following amendments for the first time for their annual
reporting period commencing 1 January 2025:
• Amendments to IAS 21 – Lack of Exchangeability
The amendments did not have a material impact on the amounts recognised in the prior or current
period and are not expected to significantly affect future periods.
New standards and amendments not yet adopted
Certain new accounting standards and amendments are effective for annual periods beginning
after 1 January 2025, and have not been applied in preparing these Financial Statements:
• Amendments to IFRS 9 and IFRS 7, Classification and Measurement of Financial Instruments
• Annual Improvements to IFRS Accounting Standards – Volume 11
• IFRS 19, ‘Subsidiaries without Public Accountability: Disclosures’
• IFRS 18, ‘Presentation and Disclosure in Financial Statements’
IFRS 18 will replace IAS 1 ‘Presentation of Financial Statements’ and is effective for annual periods
beginning on or after 1 January 2027. IFRS 18 will not impact the recognition or measurement of
items in the Financial Statements, but its impacts on presentation and disclosure is expected to be
material. Management is currently assessing the detailed implications of applying the new standard
on the Group’s consolidated Financial Statements.
The other standards and amendments that are not yet effective are not expected to have a
material impact on the Group in the current or future reporting periods and on the foreseeable
future transactions.
Basis of consolidation
The consolidated Financial Statements comprise the Financial Statements of the Company and the
Subsidiaries (the Group), plus the Group’s share of the results and net assets of its joint ventures.
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Overview Strategic Report Governance Financial Statements Further Information
Notes to the Financial Statements
For the year ended 31 December 2025
1. Material Accounting Policy Information continued
Subsidiaries
Subsidiaries are entities controlled by the Group. The Group controls an entity when it is exposed
to, or has rights to, variable returns from its involvement with the entity and has the ability to
affect those returns through its power over the entity. In assessing control, the Group takes into
consideration potential voting rights. The acquisition date is the date on which control is transferred
to the acquirer. The Financial Statements of subsidiaries are included in the consolidated Financial
Statements from the date that control commences until the date that control ceases. Losses
applicable to the non-controlling interests in a subsidiary are allocated to the non-controlling
interests even if doing so causes the non-controlling interests to have a deficit balance.
Investments and loans in subsidiaries held by the Company
Investments and loans in subsidiaries held by the Company are stated at cost less any impairment.
Impairment of loans is calculated in accordance with IFRS 9 and impairment of investments
is calculated in accordance with IAS 36 with further details provided in Note 7(iv).
Joint ventures
A joint venture is a contract under which the Group and other parties undertake an activity or
invest in an entity, under joint control. The Group uses equity accounting for such entities, carrying
its investment at cost plus the movement in the Group’s share of net assets after acquisition,
less impairment.
Associates
Associates are all entities over which the Group has significant influence but not control or joint
control. This is generally the case where the Group holds between 20 per cent and 50 per cent
of the voting rights. The Group uses equity accounting for such entities, carrying its investment
at cost plus the movement in the Group’s share of net assets after acquisition, less impairment.
Where the Group’s share of losses in an equity accounted investment equals or exceeds its interest
in the entity, the Group does not recognise further losses unless it has incurred obligations or
made payments on behalf of the other entity.
Transactions eliminated on consolidation
Intra-Group balances and transactions, and any unrealised income and expenses arising
from intra-Group transactions, are eliminated. Unrealised gains arising from transactions with equity
accounted investees are eliminated against the investment to the extent of the Group’s interest in
the investee. Unrealised losses are eliminated in the same way as unrealised gains, but only to the
extent that there is no evidence of impairment on the asset transferred.
Business combinations
The acquisition of subsidiaries is accounted for using the acquisition method. The cost of the
acquisition is measured at the aggregate of the fair values of assets given, liabilities incurred or
assumed, and equity instruments issued by the Group in exchange for control of the acquiree.
Acquisition related costs are recognised in the Income Statement as incurred. The acquiree’s
identifiable assets, liabilities and contingent liabilities that meet the conditions for recognition
under IFRS 3 are recognised at their fair value at the acquisition date, except for non-current
assets (or disposal groups) that are classified as held for sale in accordance with IFRS 5
‘Non-current Assets Held for Sale and Discontinued Operations’, which are recognised
and measured at fair value less costs to sell.
Goodwill arising on acquisition is recognised as an asset measured at cost, being the excess of the
cost of the business combination over the Group’s interest in the net fair value of the identifiable
assets, liabilities and contingent liabilities recognised. If, after reassessment, the Group’s interest in
the net fair value of the acquiree’s identifiable assets, liabilities and contingent liabilities exceeds the
cost of the business combination, the excess is recognised immediately in the Income Statement.
The interest of non-controlling interest shareholders in the acquiree is initially measured at their
proportion of the net fair value of the assets, liabilities and contingent liabilities recognised.
When the consideration transferred by the Group in a business combination includes a contingent
consideration arrangement, the contingent consideration is measured at its acquisition-date fair
value. Changes in fair value of the contingent consideration that qualify as measurement period
adjustments are adjusted retrospectively, with corresponding adjustments against goodwill.
Measurement period adjustments are adjustments that arise from additional information obtained
during the ‘measurement period’ (which cannot exceed one year from the acquisition date) about
facts and circumstances that existed at the acquisition date.
Contingent consideration that is classified as an asset or a liability is remeasured at subsequent
reporting dates in accordance with IFRS 9, as appropriate, with the corresponding gain or loss
being recognised in the Income Statement.
If the business combination is achieved in stages, the acquisition date carrying value of the
acquirer’s previously held equity interest in the acquiree is remeasured to fair value at the
acquisition date. Any gains or losses arising from such remeasurement are recognised in the
Income Statement within realised and unrealised property gains and losses. The same treatment
is applied for acquisitions of a subsidiary achieved in stages that meet the IFRS 3 concentration
test to be treated as an asset acquisition.
For acquisitions of a subsidiary that meet the IFRS 3 concentration test to be treated as an asset
acquisition, the Group allocates the cost between the individual identifiable assets and liabilities
in the Group based on their relative fair values at the date of acquisition. Such transactions do
not give rise to goodwill, generally no deferred tax is recognised on initial temporary differences
and transaction costs are capitalised. The Group has elected to initially measure the interest of
non-controlling interest shareholders in the acquiree at their proportion of the acquisition date
net fair value of the assets, liabilities and contingent liabilities recognised.
Foreign currency transactions
Foreign currency transactions are translated to the respective functional currency of Group entities
at the foreign exchange rate ruling on the transaction date. Foreign exchange gains and losses
resulting from settling these, or from retranslating monetary assets and liabilities held in foreign
currencies, are booked in the Income Statement. The exception is for foreign currency loans and
derivatives that hedge investments in foreign subsidiaries, where exchange differences are booked
in equity until the investment is realised.
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Overview Strategic Report Governance Financial Statements Further Information
Notes to the Financial Statements continued
For the year ended 31 December 2025
1. Material Accounting Policy Information continued
Consolidation of foreign entities
Assets and liabilities of foreign entities are translated into sterling at exchange rates ruling at the
Balance Sheet date. Their income, expenses and cash flows are translated at the average rate for
the period or at a spot rate for significant items. Resultant exchange differences are booked in Other
Comprehensive Income and recognised in the Group Income Statement when the operation is sold.
The principal exchange rates used to translate foreign currency denominated amounts in 2025 are:
Balance Sheet: £1 = €1.15 (2024: £1 = €1.21). Income Statement: £1 = €1.17 (2024: £1 = €1.18).
Investment properties
These properties include completed properties that are generating rent or are available for
rent, and development properties that are under development, available for development or
income-producing properties acquired with the explicit intention to take back for redevelopment
(covered land). Investment properties comprise freehold and leasehold properties and are first
measured at cost (including transaction costs), then revalued to market value at each reporting
date by professional valuers. Lease liabilities associated with leasehold properties are accounted
for under IFRS 16, see the Leases accounting policy. If a valuation obtained for a property held under
a lease is net of all payments expected to be made, any related lease liability recognised separately
in the Balance Sheet is added back to arrive at the carrying value of the investment property for
accounting purposes. Valuation gains and losses in a period are taken to the Income Statement.
As the Group uses the fair value model, as per IAS 40 ‘Investment Property’, no depreciation is
provided. An asset will be classified as held for sale within investment properties, in line with IFRS 5
‘Non-current Assets Held for Sale and Discontinued Operations’, where the asset is available for
immediate sale in its present condition and the sale is highly probable.
Investment properties are transferred to trading properties when there is a change in use and
the property ceases to meet the definition of investment property.
Other interests in property
Other interests in property include the cost and related fees in respect of land options, which
are initially capitalised and regularly tested for impairment. The impairment review includes
consideration of the resale value of the option and likelihood of achieving planning consent.
Property acquisitions and disposals
Properties are treated as acquired at the point when the Group assumes the control of ownership
and as disposed when transferred to the buyer. Generally, this would occur on completion of the
contract. Any gain or loss arising on derecognition of the property, which is calculated as the
difference between the net disposal proceeds and the carrying amount of the asset at the
commencement of the accounting period plus capital expenditure in the period, is included in
profit or loss in the period in which the property is derecognised. Gains or losses on disposal of
investment properties are shown in the Income Statement within realised and unrealised property
gains and losses.
Leases
At inception, the Group assesses whether a contract is or contains a lease. This assessment involves
the exercise of judgement about whether the Group obtains substantially all the economic benefits
from the use of that asset, and whether the Group has the right to direct the use of the asset.
The Group recognises a right-of-use (ROU) asset and the lease liability at the commencement date
of the lease.
Lease liabilities include the present value of payments which, generally include fixed payments and
variable payments that depend on an index (such as an inflation index). When the lease contains an
extension or purchase option that the Group considers reasonably certain to be exercised, the cost
of the option is included in the lease payments.
Each lease payment is allocated between the liability and finance cost. The lease payments are
discounted using the interest rate implicit in the lease if that rate can be readily determined, or if not,
the incremental borrowing rate is used. The finance cost is charged to profit or loss over the lease
period so as to produce a constant rate of interest on the remaining balance of the liability for
each period.
Cash payments relating to the principal portion of the lease liabilities are presented as cash flows
from financing activities and cash payments for the interest portion are presented as cash flows
from operating activities.
The ROU asset is measured at a cost based on the amount of the initial measurement of the lease
liability, plus initial direct costs and the cost of obligations to refurbish the asset, less any
incentives received.
The ROU asset (other than the ROU assets that relate to land or property that meets the definition of
investment property under IAS 40) is depreciated over the shorter of the lease term or the useful life
of the underlying asset. The ROU asset is subject to testing for impairment if there is an indicator of
impairment. ROU assets are included in the heading property, plant and equipment, and the lease
liability included in the headings current and non-current trade and other payables on the
Balance Sheet.
Where the ROU asset relates to land or property that meets the definition of investment property
under IAS 40, after initial recognition the ROU asset is subsequently accounted for as investment
property and carried at fair value (see Investment properties accounting policy). Valuation gains and
losses in a period are taken to the Income Statement. The ROU assets are included in the heading
investment properties, and the lease liability in the headings current and non-current trade and
other payables on the Balance Sheet.
The Group has elected not to recognise ROU assets and liabilities for leases where the total lease
term is less than or equal to 12 months, or for low value leases. The payments for such leases are
recognised in the Income Statement on a straight-line basis over the lease term.
Revenue
Revenue includes gross rental income, joint venture management and performance fee income,
income from service charges and other recoveries from tenants and proceeds from the sale of
trading properties.
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Overview Strategic Report Governance Financial Statements Further Information
Notes to the Financial Statements continued
For the year ended 31 December 2025
1. Material Accounting Policy Information continued
Rental income
Rental income from properties let as operating leases is recognised on a straight-line basis over the
lease term. Lease incentives and initial costs to arrange leases are capitalised, then amortised on a
straight-line basis over the lease term (rent averaging). Surrender premiums received in the period
are included in rental income.
Changes in the scope or the consideration for a lease that was not part of the original terms
and conditions, which might arise as a result of lease concessions, are accounted as a lease
modification. Lease modifications are accounted for as a new lease from the effective date of
the modification, considering any prepaid or accrued lease payments relating to the original
lease as part of the lease payments for the new lease. Concessions granted to tenants after the
date the conceded rent falls due are accounted for as an expected credit loss and not as a lease
modification on the basis there is no change to the consideration or scope of the lease.
Service charges and other recoveries from tenants
These include income in relation to service charges, directly recoverable expenditure and
management fees. Revenue from providing services is recognised in the accounting period in
which the services are rendered. Revenue from services is recognised based on the actual service
provided to the end of the reporting period as a proportion of the total services to be provided and
recognised over time. The Group generally acts as the principal in service charge transactions as it
directly controls the delivery of the services at the point they are provided to the tenant. Where the
Group acts as a principal, service charge income is presented gross within revenue and service
charge expense presented gross within costs.
Joint venture management and performance fees
Joint venture management and performance fees are recognised as income in the period to which
they relate. Management fees are recognised in the accounting period in which the services are
rendered. Revenue from services is recognised based on the actual service provided to the end of
the reporting period as a proportion of the total services to be provided and recognised over time.
Performance fees are based on the joint venture’s performance over the performance period and
payable subject to meeting certain criteria and hurdle rates at the end of the period (further details
are given in Note 7). Performance fees are recognised during and at the end of the performance
period to the extent that it is highly probable there will not be a significant future reversal and the
fee can be reliably estimated.
Sale of trading properties
Proceeds from the sale of trading properties are recognised at the point in time at which control
of the property has been transferred to the purchaser. Therefore, revenue is recognised at a point
in time and generally occurs on completion of the contract.
Property, plant and equipment
Plant and equipment are stated at historic cost less accumulated depreciation. Cost includes
purchase price and any directly attributable costs.
Depreciation is recognised so as to write off the cost or valuation of assets (other than investment
properties) less their residual values, using the straight-line method, on the following bases:
Plant and equipment
20% per annum
Solar panels
5% per annum
The estimated useful lives, residual values and depreciation method are reviewed at the end of each
reporting period, with the effect of any changes in estimate accounted for on a prospective basis.
Property relates to the ROU asset recognised for office leases entered into by the Group. The ROU
asset is initially measured based on the present value of lease payments, plus initial direct costs and
the cost of obligations to refurbish the asset, less any incentives received. The ROU asset is
depreciated over the shorter of the lease term or the useful life of the underlying asset.
Financial instruments
Borrowings
Borrowings are recognised initially at fair value less attributable transaction costs. Subsequent to
initial recognition, borrowings are stated at amortised cost with any difference between the amount
initially recognised and the redemption value being recognised in the Income Statement over the
period of the borrowings, using the effective interest rate method.
General and specific borrowing costs that are directly attributable to expenditure on properties
under development are capitalised. Expenditure includes the purchase cost of a site if it has been
purchased with the specific intention to redevelop. Interest is capitalised from the commencement
of the development activity until the date of practical completion. The capitalisation of borrowing
costs is suspended if there are prolonged periods when development activity is interrupted. The
interest capitalised is calculated using the Group’s weighted average cost of borrowing for the
relevant currency, or, if appropriate, the rate on specific associated borrowings.
Derivative financial instruments and hedging activities
The Group uses derivatives (principally interest rate swaps, currency swaps, forward foreign
exchange contracts, interest floors and interest caps) in managing interest rate risk and foreign
currency risk, and does not use them for trading. They are recorded, and subsequently revalued,
at fair value, with revaluation gains or losses being immediately taken to the Income Statement (fair
value through profit or loss ‘FVPL’). The exception is for derivatives qualifying as hedges, when the
treatment of the gain/loss depends upon the item being hedged, and may go to other comprehensive
income within the Statement of Comprehensive Income (fair value through other comprehensive
income ‘FVOCI’).
Derivatives with a maturity of less than 12 months or that expect to be settled within 12 months of
the Balance Sheet date are presented as current assets or liabilities. Other derivatives are presented
as non-current assets or liabilities.
Hedge accounting is applied to net investments in foreign operations in non-functional currencies
using forward foreign exchange derivatives and foreign currency denominated debt. Changes in
the fair value on remeasurement of derivatives and exchange differences on foreign currency
denominated debt are recorded in other comprehensive income and accumulated in the translation
reserve within equity to the extent that the hedges are effective. Any ineffectiveness is recognised
in the Income Statement within net finance costs. The cumulative gains and losses remain in equity
until the associated hedged item is disposed of, at which point they are reclassified to the
Income Statement.
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Notes to the Financial Statements continued
For the year ended 31 December 2025
1. Material Accounting Policy Information continued
Financial instruments continued
Trade and other receivables and payables
Trade and other receivables are booked at fair value and subsequently measured at amortised cost
using the effective interest method. Trade and other payables are initially measured at fair value, net of
transaction costs and subsequently measured at amortised costs using the effective interest method.
The Group applies the IFRS 9 simplified approach to measuring expected credit losses (ECLs),
which uses a lifetime expected loss allowance for all trade receivables. Note 17(vi) details the
Group’s calculation for measuring ECLs.
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and call deposits and other short-term highly
liquid investments with original maturities of three months or less that are readily convertible
to a known amount of cash, and are subject to an insignificant risk of changes in value.
Share-based payments
The cost of granting share options and other share-based remuneration is measured at their fair
value at the grant date. The costs are expensed straight-line over the vesting period in the Income
Statement, based on estimates of the shares or options that will eventually vest. Charges are
reversed if it appears that non-market-based performance conditions will not be met.
The fair value excludes the effect of non-market-based vesting conditions.
At each Balance Sheet date, the Group revises its estimate of the number of equity instruments
expected to vest as a result of the effect of non-market-based vesting conditions. The impact of
the revision of the original estimates, if any, is recognised in the Income Statement such that the
cumulative expense reflects the revised estimate, with a corresponding adjustment to equity within
the share-based payment reserve.
Share capital
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new
shares or options are shown in equity as a deduction, net of tax, from the proceeds.
When shares recognised as equity are repurchased, the amount of the consideration paid, which
includes directly attributable costs, is recognised as a deduction from equity. Repurchased shares
are classified as treasury shares and are presented in the treasury share reserve. When treasury
shares are sold or reissued subsequently, the amount received is recognised as an increase in
equity and the resulting surplus or deficit on the transaction is presented within share premium.
Shares held by Ocorian Limited and Equiniti Limited to satisfy various Group share schemes are
disclosed as own shares held and deducted from contributed equity.
Income tax
Income tax on the profit or loss for the year comprises current and deferred tax. Current tax is the
tax payable on the taxable income for the year and any adjustment in respect of previous years.
Current tax is calculated on the basis of the tax laws enacted or substantively enacted at the end
of the reporting period in the countries where the Company’s subsidiaries operate and generate
taxable income.
Deferred tax is provided in full using the Balance Sheet liability method on temporary differences
between the carrying amounts of assets and liabilities for financial reporting purposes and the
amounts used for taxation purposes. Deferred tax is determined using tax rates that have been
enacted or substantively enacted by the reporting date and are expected to apply when the asset
is realised or the liability is settled.
No provision is made for temporary differences (i) arising on the initial recognition of assets or
liabilities, other than a business combination and leases that affect neither accounting nor taxable
profit; and (ii) relating to investments in subsidiaries to the extent that they will not reverse in the
foreseeable future.
Deferred tax assets are recognised to the extent that it is probable that suitable taxable profits will
be available against which deductible temporary differences can be utilised.
The Group applies the exception to recognising and disclosing information about deferred tax
assets and liabilities related to Pillar Two income taxes, as provided in the amendments to IAS 12
issued in May 2023.
Critical accounting judgements and key sources of estimation uncertainty
In the application of the Group’s accounting policies, the Directors are required to make
judgements, estimates and assumptions about the carrying amount of assets and liabilities that are
not readily apparent from other sources. The estimates and associated assumptions are based on
historical experience and other factors that are considered to be relevant. Actual results may differ
from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis.
Revisions to accounting estimates are recognised in the period in which the estimate is revised if the
revision affects only that period, or in the period of the revisions and future periods if the revision
affects both current and future periods.
Significant areas of estimation uncertainty
Property valuations
Valuation of property is a central component of the business. In estimating the fair value, the Group
engages third-party qualified valuers to perform the valuation. Information about the valuation
techniques and inputs used in determining the fair value of the property portfolio is disclosed in
Note 25 Property valuation techniques and related quantitative information.
Significant areas of judgements in applying the Group’s accounting policies
Accounting for significant property transactions
Property transactions are complex in nature. Management considers each material transaction
separately, with an assessment carried out to determine the most appropriate accounting treatment
and judgements applied. The judgements include whether the transaction represents an asset
acquisition or business combination and the cut-off for property transactions on recognition of
property assets and revenue recognition. In making its judgement over the cut-off for property
transactions, management considers whether the control of ownership of the assets acquired
or disposed of has transferred to or from the Group (this consideration includes the revenue
recognition criteria set out in IFRS 15 for the sale of trading properties).
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Notes to the Financial Statements continued
For the year ended 31 December 2025
1. Material Accounting Policy Information continued
Significant areas of judgements in applying the Group’s accounting policies continued
Accounting for significant property transactions continued
In making its judgement on whether the acquisition of property through the purchase of a corporate
vehicle represents an asset acquisition or business combination, management considers whether
the integrated set of assets and activities acquired contain both inputs and processes along with the
ability to create outputs. Management also applies the optional ‘concentration test’ allowed under
IFRS 3. When applying the optional test, management considers if substantially all of the fair value
of gross assets acquired is concentrated in a single asset (or a group of similar assets). Where
management judges that substantially all of the fair value of the gross assets acquired are concentrated
in a single asset (or a group of similar assets) and the ‘concentration test’ is met, the assets acquired
would not represent a business and the purchase would be treated as an asset acquisition.
There were no property transactions during the current or prior year requiring significant judgement.
REIT status
The Company has elected for UK REIT and French SIIC status. To continue to benefit from these
tax regimes, the Group is required to comply with certain conditions as outlined in Note 10.
Management intends that the Group should continue as a UK REIT and a French SIIC for the
foreseeable future.
Uncertain tax positions
The Group is subject to periodic challenges by local tax authorities on a range of tax matters during
the normal course of business. The tax impact can be uncertain until a conclusion is reached with
the relevant tax authority or through a legal process. Management’s judgement is required in
assessing the likelihood of whether a liability, including any associated penalties, will arise and the
significant assessment relating to the recognition of withholding tax in France and is discussed
further in Note 10.
2. Adjusted Profit
Adjusted profit is a non-GAAP measure and is the Group’s measure of underlying profit, which is used
by the Board and senior management to measure and monitor the Group’s income performance.
It is based on the Best Practices Recommendations Guidelines of European Public Real Estate
Association (EPRA), which calculate profit excluding investment and development property revaluations
and gains or losses on disposals. Changes in the fair value of financial instruments and associated
close-out costs and their related taxation, as well as other permitted one-off items, are also
excluded. Refer to the Supplementary Notes for all EPRA adjustments.
The Directors may also exclude from the EPRA earnings measure additional items (gains and losses),
which are considered by them to be non-recurring, unusual or significant by virtue of size and nature.
In excluding such items going forward, management believe this gives a better measure of the
underlying performance of the business. No non-EPRA adjustments to underlying profit were made
in the current and prior year.
2025 2024
Notes £m £m
Gross rental income
4 637 592
Property operating expenses
5 (94) (92)
Net rental income
 543 500
Joint venture management fee income
4 25 26
Management and development fee income
4 3 6
Net service charge and other income
2
 1 (1)
Administrative expenses
6 (73) (76)
Share of joint ventures' Adjusted profit after tax
1
7 78 83
Adjusted operating profit before interest and tax
 577 538
Net finance costs
9 (68) (68)
Adjusted profit before tax
509 470
Adjustments to reconcile to IFRS:
Adjustments to the share of profit from joint ventures
after tax
1
7 31 (30)
Realised and unrealised property gains
8 55 195
Profit on sale of trading properties
8 2 —
Cost of early close-out of debt
9 — (2)
Net fair value (loss)/gain on interest rate swaps and other
derivatives
9 (35) 3
Solar panel depreciation
2
 (2) —
Total adjustments
 51 166
Profit before tax
 560 636
Tax
On Adjusted profit
10 (14) (12)
In respect of adjustments
10 5 (30)
Total tax adjustments
 (9) (42)
Profit after tax
 551 594
Of which:
Adjusted profit after tax
 495 458
Total adjustments after tax
56 136
1 A detailed breakdown of the adjustments to the share of profit from joint ventures is included in Note 7.
2 Net service charge and other income of £1 million (2024: £1 million expense) is calculated as Service charge and other income
of £51 million (2024: £51 million) shown in Note 4, less Service charge and other expenses of £52 million (2024: £52 million) shown
in Note 5 and adds back solar panel depreciation of £2 million (2024: £nil). Solar depreciation is shown outside of Adjusted profit
in line with the updated EPRA guidelines for reporting periods after 1 October 2024.
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Notes to the Financial Statements continued
For the year ended 31 December 2025
3. Segmental Analysis
The Group’s reportable segments are the two property businesses, United Kingdom (UK) and Continental Europe (CE). These two property businesses are managed and their operating results reported
to the Executive Directors (‘chief operating decision maker’, ‘CODM’) as separate and distinct businesses.
Gross Net Share of joint Valuation surplus Total directly Investments
rental rental ventures' Adjusted Adjusted on investment owned property in joint Capital
income income profit/(loss)
PBIT
2
properties assets ventures
expenditure
3
31 December 2025
 £m £m £m £m £m £m £m £m
UK
460
420
(1)
417
23
11,685
98
269
CE
176
135
110
261
31
4,314
2,744
234
Other
1
1
(12)
(31)
(101)
—
—
(1,127)
4
 29
Total
637
543
78
577
54
15,999
1,715
532
Valuation surplus/
Gross Net Share of joint (deficit) on Total directly owned Investments
rental rental ventures' Adjusted Adjusted investment property in joint
income income profit/(loss)
PBIT
2
properties assets ventures
Capital expenditure
3
31 December 2024
 £m £m £m £m £m £m £m £m
UK
437
399
—
395
170
11,463
28
562
CE
155
113
111
244
(50)
3,846
2,428
434
Other
1
—
(12)
(28)
(101)
—
—
(904)
4
 24
Total
592
500
83
538
120
15,309
1,552
1,020
1 ‘Other’ category includes the corporate centre, SELP holding companies and costs relating to the operational business that are not specifically allocated to the two property businesses.
2 A reconciliation of total Adjusted PBIT to the IFRS profit before tax is provided in Note 2. Total revenues from external customers included within Adjusted PBIT: UK £475 million (2024: £448 million), CE £241 million (2024: £227 million).
3 Capital expenditure includes additions and acquisitions of investment and trading properties but does not include tenant incentives and letting fees. The ‘Other’ category includes non-property related spend, primarily IT.
4 Includes the bonds held by SELP Finance S.à.r.l, a Luxembourg entity.
Revenues from the most significant countries within the Group were: UK £480 million (2024: £448 million), France £88 million (2024: £86 million), Italy £45 million (2024: £46 million), Germany £60 million
(2024: £57 million), Poland £20 million (2024: £19 million) and the Netherlands £22 million (2024: £8 million).
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Notes to the Financial Statements continued
For the year ended 31 December 2025
4. Revenue
2025 2024
£m £m
Rental income from investment and trading properties
 604 574
Rent averaging
 31 14
Surrender premiums
 2 4
Gross rental income
1
 637 592
Joint venture fee income – management fees*
 25 26
Joint venture fee income
 25 26
Management and development fee income*
 3 6
Service charge and other income*
2
 51 51
Proceeds from sale of trading properties*
 10 —
Total revenue
726 675
* The above income streams reflect revenue recognition under IFRS 15 ‘Revenue from Contracts with Customers’ and total
£89 million (2024: £83 million).
1 Net rental income of £543 million (2024: £500 million) is calculated as gross rental income of £637 million (2024: £592 million)
less total property operating expenses of £94 million (2024: £92 million) shown in Note 5.
2 Other income includes income from solar energy sold to national grids or direct to occupiers.
5. Costs
2025 2024
£m £m
Vacant property costs
 20 18
Letting, marketing, legal and professional fees
 15 16
Loss allowance and impairment of receivables
1
 2 1
Other expenses
 11 11
Property management expenses
 48 46
Property administrative expenses
2
 57 56
Costs capitalised
3
 (11) (10)
Total property operating expenses
 94 92
Service charge and other expense
4
 52 52
Trading properties cost of sales
 8 —
Total costs
 154 144
1 See Note 17(vi) Credit risk management for further details on loss allowance and impairment of receivables.
2 Property administrative expenses predominantly relate to the employee staff costs of personnel directly involved in operating
the property portfolio.
3 Costs capitalised primarily relate to internal employee staff costs directly involved in developing the property portfolio.
4 Other expenses includes expenses relating to the provision of solar energy.
6. Administrative Expenses
6(i) – Total administrative expenses
2025 2024
£m £m
Directors’ remuneration
 5 6
Depreciation and amortisation
 15 10
Other administrative expenses
 53 60
Total administrative expenses
 73 76
Other administrative expenses include the cost of services of the Group’s auditors, as
described below.
6(ii) – Fees in relation to services provided by the Group’s auditors
2025 2024
£m £m
Audit services:
Parent company
 1.1 1.2
Subsidiary undertakings
 0.4 0.4
Total audit fees
 1.5 1.6
Audit related assurance services
 0.1 0.1
Audit and audit related assurance services
1.6 1.7
Other fees:
Other
 0.1 0.2
Total other fees
 0.1 0.2
Total fees in relation to audit and other services
 1.7 1.9
As detailed further in the Audit Committee Report on page 103, PwC are the auditors of the SEGRO
European Logistics Partnership S.à r.l. (SELP), which is a non-controlled joint venture of the Group, and
were paid audit fees of £1.0 million in respect of the year ended 31 December 2025 (2024: £1.0 million).
There were £0.1 million of non-audit fees paid in respect of SELP (2024: £0.1 million). The appointment
of the SELP auditors and agreement of their fees is a matter for the SELP Board acting independently
from SEGRO. Accordingly, the fees do not form part of the SEGRO Group audit fees detailed in
the table above, nor are they included in the ratio of audit to non-audit fees detailed on page 103
of the Audit Committee Report.
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Overview Strategic Report Governance Financial Statements Further Information
Notes to the Financial Statements continued
For the year ended 31 December 2025
6. Administrative Expenses continued
6(iii) – Staff costs
The table below presents staff costs of the Group (including Directors) which are recognised
in both property operating expenses and administrative expenses in the Income Statement.
2025 2024
£m £m
Wages and salaries
 56 55
Social security costs
 8 8
Pension costs
 4 3
Share scheme costs
 5 7
Total
 73 73
Average number of Group employees
 454 461
– Direct property
 286 294
– Indirect property and administration
 168 167
Disclosures required by the Companies Act 2006 on Directors’ remuneration, including salaries,
share options, pension contributions and pension entitlement and those specified by the UK Listing
Rules of the Financial Conduct Authority, are included on pages 106 to 124 in the Remuneration
Report and form part of these Financial Statements.
The Group also has a number of defined contribution pension schemes for which £4 million has
been recognised as an expense in the Group Income Statement (2024: £3 million).
7. Investments in Joint Ventures and Subsidiaries
7(i) – Profit from joint ventures after tax
The table below presents a summary Income Statement of the Group’s largest joint ventures, all of
which are accounted for using the equity method as set out in Note 1. SEGRO European Logistics
Partnership (SELP) is incorporated in Luxembourg and owns logistics property assets in Continental
Europe. The Group holds 50 per cent of the share capital and voting rights in the material joint ventures.
During 2025, SEGRO formed SEGRO Pure Premier Park Data Centre Limited, a 50:50 joint venture
with Pure Data Centres Group (Pure DC). The joint venture has been created with the intent to
develop and deliver a fully fitted data centre in Park Royal, West London. As part of the transaction,
SEGRO has contributed land into the joint venture at market value. The joint venture is presented
in the ‘Other’ column in the tables 7(i) and 7(ii).
At 100% At 100% At share At share
SELP Other 2025 2024 2025 2024
£m £m £m £m £m £m
Revenue
1
375
—
375
 370 187 185
Gross rental income
283
—
283
 274 142 137
Property operating expenses:
– underlying property
operating expenses
(14)
(2)
(16)
 (15) (8) (8)
– vacant property costs
(4)
—
(4)
 (3) (2) (1)
– property management fees
2
(24)
—
(24)
 (23) (12) (12)
Net rental income
241
(2)
239
 233 120 116
Management fee income
4
—
4
 4 2 2
Net service charge and other
income
1
—
1
 — — —
Administrative expenses
(5)
—
(5)
 (5) (3) (2)
Finance costs (including
adjustments)
(52)
—
(52)
 (44) (26) (22)
Adjusted profit/(loss) before
tax
189
(2)
187
 188 93 94
Tax
(30)
—
(30)
 (22) (15) (11)
Adjusted profit/(loss) after tax
159
(2)
157
 166 78 83
Adjustments:
(Loss)/profit on sale of
investment properties
(1)
—
(1)
 5 (1) 2
Valuation surplus/(deficit) on
investment properties
81
(7)
74
 (60) 37 (30)
Solar panel depreciation
(1)
—
(1)
 — — —
Tax in respect of adjustments
(10)
—
(10)
 (5) (5) (2)
Total adjustments
69
(7)
62
 (60) 31 (30)
Profit/(loss) after tax
228
(9)
219
 106 109 53
Other comprehensive income
—
—
—
 — — —
Total comprehensive income/
(expense) for the year
228
(9)
219
 106 109 53
1 Total revenue at 100 per cent of £375 million (2024: £370 million) includes: Gross rental income of £283 million (2024: £274 million);
service charge and other income of £88 million (2024: £92 million); and management fee income of £4 million (2024: £4 million).
Service charge income of £87 million (2024: £92 million) is netted against the equal and opposite service charge expense in
calculating Adjusted profit before tax.
2 Property management fees paid to SEGRO.
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Notes to the Financial Statements continued
For the year ended 31 December 2025
7. Investments in Joint Ventures and Subsidiaries continued
7(i) – Profit from joint ventures after tax continued
SELP is a SPPICAV in France, and does not pay tax on its French property income or gains on
property sales, provided that at least 85 per cent of the French subsidiaries’ property income
and 50 per cent of the French subsidiaries’ gains are distributed to their immediate shareholder
(at which point they will be subject to tax). In addition, SELP has to meet certain conditions such as
ensuring the property rental business of each French subsidiary represents more than 60 per cent
of its assets. Any potential or proposed changes to the SPPICAV legislation are monitored.
7(ii) – Summarised Balance Sheet information in respect of the Group’s joint ventures
At 100% At 100% At share At share
SELP Other 2025 2024 2025 2024
£m £m £m £m £m £m
Investment properties
5,888
196
6,084
 5,052 3,042 2,526
Other interests in property
1
—
1
 — 1 —
Property, plant and equipment
25
—
25
 19 13 10
Other receivables
4
—
4
 3 2 1
Total non-current assets
5,918
196
6,114
 5,074 3,058 2,537
Trade and other receivables
65
2
67
 52 34 26
Cash and cash equivalents
61
2
63
 346 32 173
Total current assets
126
4
130
 398 66 199
Total assets
6,044
200
6,244
 5,472 3,124 2,736
Borrowings
1
(1,787)
—
(1,787)
 (1,444) (894) (722)
Deferred tax
(375)
—
(375)
 (359) (188) (179)
Other liabilities
(10)
—
(10)
 — (5) —
Total non-current liabilities
(2,172)
—
(2,172)
 (1,803) (1,087) (901)
Borrowings
1
(434)
—
(434)
 (413) (217) (207)
Other liabilities
(206)
(3)
(209)
 (152) (105) (76)
Total current liabilities
(640)
(3)
(643)
 (565) (322) (283)
Total liabilities
(2,812)
(3)
(2,815)
 (2,368) (1,409) (1,184)
Net assets
3,232
197
3,429
 3,104 1,715 1,552
1 The external borrowings of the joint ventures are non-recourse to the Group. At 31 December 2025, the fair value of £2,221 million
(2024: £1,857 million) of borrowings was £2,205 million (2024: £1,818 million). This results in a fair value adjustment increase in
EPRA NDV of £16 million (2024: £39 million), at share £8 million (2024: £20 million), see Table 5 of the Supplementary Notes.
Fees
SEGRO provides certain services, including venture advisory, development management and asset
management, to the SELP joint venture and receives fees for doing so.
Performance fees may also be payable from SELP to SEGRO based on its IRR subject to certain
hurdle rates over the performance period. The current performance period commenced in
October 2023 and is over a circa three-year and circa six-year period. The first performance
period and potential payment due ends in June 2026, but 50 per cent of any payment is subject
to clawback based on performance over the six-year period to June 2029. If the IRR increases
by June 2029 relative to June 2026, additional fees might be triggered.
Based on the current estimates of the IRR calculation from October 2023 to 31 December 2025,
no performance fee is due to SEGRO in June 2026. Therefore no fee has been recognised in the
year as the recognition criteria under IFRS 15 has not been met. The performance fee is not
considered to be a significant area of estimation uncertainty at this point.
7(iii) – Investments by the Group
2025 2024
£m £m
Cost or valuation at 1 January
 1,552 1,636
Exchange movement
 80 (81)
Net investments
1
 37 (27)
Dividends received
2
 (63) (29)
Share of profit after tax
 109 53
Cost or valuation at 31 December
 1,715 1,552
1 Net investments represent the net movement of capital injections, loans and divestments with joint ventures during the year.
2 Dividends received from SELP.
7(iv) – Investments by the Company
2025 2024
£m £m
Cost or valuation of subsidiaries at 1 January
 11,896 11,413
Exchange movement
 29 (15)
Additions
1
 61 —
Loan movement
1
 412 578
Decrease/(increase) in provision for investments in and loans to subsidiaries
2
 5 (80)
Cost or valuation at 31 December
 12,403 11,896
1 During 2025, £61 million (2024: £nil) of non-current loans were recapitalised and converted into equity. This is reflected within
additions and a reduction in loan movement in the table above.
2 Total decrease in provision for impairment of £5 million (2024: £80 million increase) consists of £nil (2024: £nil) for investments
and £5 million (2024: £80 million increase) for loans to subsidiaries.
Included in cost or valuation of subsidiaries at 31 December 2025 are investments of £6,462 million
(2024: £6,401 million) and non-current loans of £5,941 million (2024: £5,495 million). Loans held with
subsidiaries are classified as non-current as there is no intention from the Company to require the
loan to be repaid, in whole or in part, within 12 months.
Subsidiary entities are detailed in Note 26.
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Notes to the Financial Statements continued
For the year ended 31 December 2025
7. Investments in Joint Ventures and Subsidiaries continued
7(iv) – Investments by the Company continued
In measuring expected credit losses (ECLs) of the intercompany loans under IFRS 9 the ability of
each subsidiary to repay the loan at the reporting date if demanded by the Company is assessed.
For the purpose of the impairment review the manner for recovering the loan is assumed to be
through the sale of the investment properties held by the subsidiary. Investment properties are held
at fair value at each reporting date and the assumptions and inputs used in determining their fair
value are shown in Note 25. Therefore, the net asset value of the subsidiary is considered to be a
reasonable approximation of the available assets that could be realised to recover the loan balance
and the requirement to recognise expected credit losses. The requirement for impairment of
investments under IAS 36 follows the same assessment and the net asset value of the subsidiary
is considered to be a reasonable approximation of the recoverable amount. The movement in the
provision for investments and loans held with subsidiaries during the current and prior period is
predominantly due to the movement in the fair value of specific properties held by the subsidiaries.
The loss allowances for loans held with subsidiaries as at 31 December reconcile to the opening loss
allowances as follows:
2025 2024
£m £m
Opening loss allowance at 1 January
 310 230
Increase in loan loss allowance recognised in profit or loss during the year
 69 105
Unused amount reversed in profit or loss during the year
(74) (25)
Closing loss allowance at 31 December
 305 310
8. Property Gains and Losses
8(i) – Realised and Unrealised Property Gains
2025 2024
£m £m
Profit on sale of investment properties
 1 75
Valuation surplus on investment properties
1
 54 120
Total realised and unrealised property gain
 55 195
1 Includes £55 million valuation surplus on investment properties (2024: £121 million) and £1 million valuation loss on head lease ROU
asset (2024: £1 million).
The above table does not include realised gains on sale of trading properties of £2 million
(2024: £nil) as detailed further in Note 2.
8(ii) – Total Property Gains (including joint ventures at share)
2025 2024
Joint Joint
Group ventures Total Group ventures Total
£m £m £m £m £m £m
Valuation surplus/(deficit) on
investment properties
54
37
91
120
(30)
90
Total valuation surplus/(deficit) on
investment and trading properties
54
37
91
120
(30)
90
Profit/(loss) on sale
of investment properties
1
(1)
—
75
2
77
Profit on sale of trading properties
2
—
2
—
—
—
Total properties gain/(loss) on
investment and trading properties
57
36
93
195
(28)
167
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Notes to the Financial Statements continued
For the year ended 31 December 2025
9. Net Finance Costs
2025 2024
Finance income
 £m £m
Interest received on bank deposits and related derivatives
 25 56
Fair value gain on interest rate swaps and other derivatives
 1 35
Exchange differences
 — 1
Total finance income
 26 92
2025 2024
Finance costs
 £m £m
Interest on overdrafts, loans and related derivatives
 (144) (179)
Cost of early close-out of debt
 — (2)
Amortisation of issue costs
 (7) (10)
Interest on lease liabilities
(3) (3)
Total borrowing costs
 (154) (194)
Less amounts capitalised on the development of properties
 63 67
Net borrowing costs
 (91) (127)
Fair value loss on interest rate swaps and other derivatives
 (36) (32)
Exchange differences
 (2) —
Total finance costs
 (129) (159)
Net finance costs
 (103) (67)
Net finance costs (including adjustments) in Adjusted profit (Note 2) are £68 million (2024: £68 million).
This excludes net fair value gains and losses on interest rate swaps and other derivatives of £35 million
loss (2024: £3 million gain) and the cost of early close-out of debt of £nil (2024: £2 million).
The interest capitalisation rates for 2025 ranged from 2.4 per cent to 6.2 per cent (2024: 2.6 per cent
to 6.7 per cent). Interest is capitalised gross of tax relief. Further analysis of exchange differences is
given in Note 17 within the forward foreign exchange and currency swap contracts section.
10. Tax
10(i) – Tax on profit
2025 2024
£m £m
Tax:
On Adjusted profit
 (14) (12)
In respect of adjustments
 5 (30)
Total tax charge
 (9) (42)
Current tax
United Kingdom
Current tax credit
 7 1
Total UK current tax credit
 7 1
Overseas
Current tax charge
 (6) (33)
Total overseas current tax charge
 (6) (33)
Total current tax credit/(charge)
 1 (32)
Deferred tax
Origination and reversal of temporary differences
 (5) (14)
Released in respect of property disposals in the year
 (2) 14
On valuation movements
 2 (9)
Total deferred tax in respect of investment properties
 (5) (9)
Other deferred tax
 (5) (1)
Total deferred tax charge
 (10) (10)
Total tax charge on profit on ordinary activities
 (9) (42)
UK legislation implementing the OECD Pillar Two global minimum tax rules has been enacted.
The Group operates as a qualifying UK REIT and is treated as an Excluded Entity under these rules.
Accordingly, the Group does not expect the Pillar Two rules to have a material impact on its
Financial Statements.
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Notes to the Financial Statements continued
For the year ended 31 December 2025
10. Tax continued
10(ii) – Factors affecting tax charge for the year
The tax charge is lower than (2024: tax charge is lower than) the standard rate of UK corporation tax.
The differences are:
2025 2024
£m £m
Profit on ordinary activities before tax
 560 636
Exclude valuation surplus in respect of UK properties not deductible
 (23) (170)
537 466
Multiplied by standard rate of UK corporation tax of 25 per cent
(2024: 25 per cent)
 (134) (117)
Effects of:
REIT and SIIC exemption on income and gains
 68 90
Non deductible items
 (1) (5)
Joint venture tax adjustment
1
 28 12
Tax rate differences on international earnings
 6 (1)
Adjustment in respect of prior years
 2 —
Adjustment in respect of assets not recognised
 2 (21)
Deferred tax arising from German rate changes
 12 —
Other
 8 —
Total tax charge on profit on ordinary activities
 (9) (42)
1 The joint venture tax adjustment is required because the profit on ordinary activities before tax includes share of profit from joint
ventures after tax, whereas the total tax balance excludes joint ventures.
10(iii) – REIT and SIIC regimes and other tax judgements
SEGRO is a Real Estate Investment Trust (REIT) and does not pay tax on its UK property income or
gains on property sales, provided that at least 90 per cent of the Group’s UK property income is
distributed as a dividend to shareholders, which becomes taxable in their hands. In addition, the
Group has to meet certain conditions such as ensuring its worldwide property rental business
represents more than 75 per cent of total profits and assets. Any potential or proposed changes
to the REIT legislation are monitored and discussed with HMRC. It is management’s intention that
the Group will continue as a REIT for the foreseeable future.
SEGRO is also a SIIC in France and does not pay corporation tax on its French property income
or gains on property sales within the SIIC, provided that at least 95 per cent of the relevant Group
French subsidiaries’ property income is distributed to their immediate shareholder. In addition,
the Group has to meet certain conditions such as ensuring the property rental business of each
French subsidiary represents more than 80 per cent of its assets. Any potential or proposed changes
to the SIIC legislation are monitored. Whilst not all French property is within the SIIC regime, it is
management’s intention that the Group will continue as a SIIC for the foreseeable future.
In 2021 a formal tax assessment in relation to the applicability of a 25 per cent withholding tax
on distributions from the SIIC was received from the French tax authorities and a tax charge was
recognised. A legal conclusion has not been reached and communication with the French tax
authorities remains ongoing. As a result, a tax charge for the 25 per cent withholding tax on results
generated from the French business has been recognised, this includes withholding tax on unremitted
earnings. As noted below, until a legal conclusion has been reached, it is possible further tax
charges may arise in relation to this matter.
The Group operates in a number of jurisdictions and is subject to periodic challenges by local tax
authorities on a range of tax matters during the normal course of business. The tax impact can be
uncertain until a conclusion is reached with the relevant tax authority or through a legal process.
The Group uses in-house expertise when assessing uncertain tax positions and seeks the advice
of external professional advisers where appropriate. The Group believes that its provisions for tax
liabilities and associated penalties are adequate for all open tax years based on its assessment of
many factors, including tax laws and prior experience. The significant assessment relating to the
recognition of withholding tax in France is discussed above.
10(iv) – Deferred tax liabilities
Movement in deferred tax was as follows:
Balance
Exchange Recognised
Balance
1 January
movement in income
31 December
Group — 2025
£m
 £m £m
£m
Valuation surpluses and deficits on properties/
accelerated tax allowances
178
9
5
192
Others
14
(1)
5
18
Total deferred tax liabilities
192
8
10
210
Balance
Exchange Recognised in
Balance
1 January
movement income
31 December
Group — 2024
£m
 £m £m
£m
Valuation surpluses and deficits on properties/
accelerated tax allowances
178
(9)
9
178
Others
14
(1)
1
14
Total deferred tax liabilities
192
(10)
10
192
The Group has recognised revenue tax losses of £69 million (2024: £71 million) available for offset
against future profits (reflected in ‘Valuation surpluses and deficits on properties/accelerated
tax allowances' in the table above). Further unrecognised tax losses of £863 million also exist at
31 December 2025 (2024: £755 million) of which £1 million (2024: £1 million) expires within nine
years. The majority of the unrecognised tax loss balance relates to historic capital losses that arose
on property disposals and on losses generated from debt close-out costs. The Directors do not
consider it probable that there will be sufficient future taxable profit for the relevant losses to be
utilised and so no deferred tax asset has been recognised for unused tax losses.
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Notes to the Financial Statements continued
For the year ended 31 December 2025
10. Tax continued
10(iv) – Deferred tax liabilities continued
For the purposes of measuring deferred tax liabilities or deferred tax assets arising from investment
properties that are measured using the fair value model, the Directors have reviewed the Group's
investment property portfolios and concluded that the Group's investment properties are not held
under a business model whose objective is to consume substantially all of the economic benefits
embodied in the investment properties over time, rather than through sale. Therefore, in determining
the Group's deferred taxation on investment properties, the Directors have determined that the
presumption that the carrying amounts of investment properties measured using the fair value
model are recovered entirely through sale is not rebutted. As a result, the Group has recognised
deferred taxes on changes in fair value of investment properties for all jurisdictions, with the exception
of the UK, where the Group is not subject to any corporate income taxes on the fair value changes
of the investment properties on disposal due to its REIT status.
10(v) – Factors that may affect future tax charges
Other than France no deferred tax is recognised on the unremitted earnings of international
subsidiaries and joint ventures. In the event of their remittance to the UK, no net UK tax is expected
to be payable. As detailed in Note 10(iii) a tax charge for probable withholding tax due on results
generated from the French business has been recognised, this includes withholding tax on
unremitted earnings.
11. Dividends
2025 2024
£m £m
Ordinary dividends paid
Interim dividend for 2025 @ 9.7 pence per share
 131 —
Final dividend for 2024 @ 20.2 pence per share
 274 —
Interim dividend for 2024 @ 9.1 pence per share
 — 123
Final dividend for 2023 @ 19.1 pence per share
 — 256
Total dividends
 405 379
Dividends in the Statement of Changes in Equity
 405 379
Dividends settled as shares
 — (115)
Timing difference relating to payment on withholding tax
 — 13
Dividends disclosed in Cash Flow Statement
 405 277
The Board recommends a final dividend for 2025 of 21.4 pence, which is estimated to result in a
distribution of up to £290 million. The total dividend paid and proposed per share in respect of the
year ended 31 December 2025 is 31.1 pence (2024: 29.3 pence).
12. Earnings and Net Assets Per Share
The earnings per share calculations use the weighted average number of shares in issue during
the year and the net assets per share calculations use the number of shares in issue at year end.
Earnings per share calculations exclude 0.8 million shares (2024: 0.5 million) being the average
number of shares held on trust for employee share schemes and net assets per share calculations
exclude 0.9 million shares (2024: 0.7 million) being the actual number of shares held on trust for
employee share schemes at year end.
12(i) – Earnings per ordinary share (EPS)
2025 2024
Earnings Shares Pence per Earnings Shares Pence per
£m million share £m million share
Basic EPS
551
1,352.5
40.7
594
1,328.7
44.7
Dilution
adjustments:
Share schemes
—
2.8
—
—
3.3
(0.1)
Diluted EPS
551
1,355.3
40.7
594
1,332.0
44.6
Basic EPS
551
1,352.5
40.7
594
1,328.7
44.7
Adjustments to
profit before tax
1
(51)
(3.7)
(166)
(12.5)
Tax in respect of
Adjustments
(5)
(0.4)
30
2.3
Adjusted Basic EPS
495
1,352.5
36.6
458
1,328.7
34.5
Adjusted Diluted
EPS
495
1,355.3
36.5
458
1,332.0
34.4
1 Details of adjustments are included in Note 2.
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Notes to the Financial Statements continued
For the year ended 31 December 2025
12. Earnings and Net Assets Per Share continued
12(ii) – Net assets per share (NAV)
The EPRA Net Tangible Assets (NTA) metric is considered to be most consistent with the nature of
SEGRO’s business as a UK REIT providing long-term progressive and sustainable returns. EPRA NTA
acts as the primary measure of net asset value and is also referred to as Adjusted Net Asset Value
(or Adjusted NAV).
A reconciliation from IFRS NAV to Adjusted NAV is set out in the table below along with the net asset
per share metrics.
Table 5 of the Supplementary Notes provides a reconciliation from IFRS NAV for each of the three
EPRA net asset value metrics.
2025 2024
Equity Equity
attributable attributable to
to ordinary ordinary
shareholders Shares Pence per shareholders Shares Pence per
£m million share £m million share
Basic NAV
12,273
1,352.6
907
12,049
1,352.2
891
Dilution
adjustments:
Share schemes
—
2.4
(1)
—
3.1
(2)
Diluted NAV
12,273
1,355.0
906
12,049
1,355.3
889
Fair value
adjustment in
respect of interest
rate derivatives –
Group
123
9
95
7
Fair value
adjustment in
respect of trading
properties – Group
1
—
2
—
Deferred tax in
respect of
depreciation and
valuation surpluses –
Group
1
96
7
90
7
Deferred tax in
respect of
depreciation and
valuation surpluses –
Joint ventures
1
88
6
88
7
Intangible assets
(44)
(3)
(37)
(3)
Adjusted NAV
12,537
1,355.0
925
12,287
1,355.3
907
1 50 per cent of deferred tax in respect of depreciation and valuation surpluses has been excluded in calculating Adjusted NAV in
line with option 3 of EPRA Best Practices Recommendations Guidelines.
13. Investment properties
Completed Development Total
£m £m £m
At 1 January 2025
12,827
2,224
15,051
Exchange movement
159
42
201
Property acquisitions
—
24
24
Additions to existing investment properties
2
47
429
476
Disposals
(91)
(19)
(110)
Transfers on completion of development and completed
properties taken back for redevelopment
437
(437)
—
Revaluation surplus/(deficit) during the year
180
(125)
55
At 31 December 2025
13,559
2,138
15,697
Add tenant lease incentives and letting fees
221
—
221
Investment properties excluding head lease ROU assets
at 31 December 2025
13,780
2,138
15,918
Add head lease liabilities (ROU assets)
1
80
—
80
Total investment properties at 31 December 2025
13,860
2,138
15,998
Completed Development Total
£m £m £m
At 1 January 2024
12,285
2,383
14,668
Exchange movement
(148)
(41)
(189)
Property acquisitions
431
21
452
Additions to existing investment properties
2
45
496
541
Disposals
(474)
(68)
(542)
Transfers on completion of development and completed
properties taken back for redevelopment
497
(497)
—
Revaluation surplus/(deficit) during the year
191
(70)
121
At 31 December 2024
12,827
2,224
15,051
Add tenant lease incentives and letting fees
185
—
185
Investment properties excluding head lease ROU assets
at 31 December 2024
13,012
2,224
15,236
Add head lease liabilities (ROU assets)
1
67
—
67
Total investment properties at 31 December 2024
13,079
2,224
15,303
1 At 31 December 2025 investment properties included £80 million (2024: £67 million) for the head lease liabilities recognised
under IFRS 16.
2 Part of the capital expenditure incurred is in response to climate change including the reduction of the carbon footprint of the
Group’s existing investment properties and developments. The reduction of the carbon footprint within the Group’s property
portfolio is discussed in more detail on pages 32 and 33.
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Notes to the Financial Statements continued
For the year ended 31 December 2025
13. Investment properties continued
Investment properties are stated at fair value as at 31 December 2025 based on external valuations
performed by professionally qualified, independent valuers. The Group’s wholly-owned and joint
venture property portfolio is valued on a half-yearly basis, which was carried out by CBRE Ltd in
2025. The valuations conform to International Valuation Standards and were arrived at by reference
to market evidence of the transaction prices paid for similar properties. In estimating the fair value
of the properties, the valuers consider the highest and best use of the properties. There has been
no change to the valuation technique during the year.
CBRE Ltd also undertakes some professional and agency work on behalf of the Group. This is
carried out by departments separate from the Valuation team in CBRE and overall the total fees
earned from the Group are below 5 per cent of CBRE’s total income. This work does not therefore
lead to a conflict of interest for the properties being valued by CBRE at the period end.
Completed properties include buildings that are occupied or are available for occupation. Development
properties include land available for development (land bank), land under development, construction
in progress and covered land. The carrying value of covered land held within development properties
as at 31 December 2025 is £572 million (2024: £619 million).
At 31 December 2025 investment properties included £221 million tenant lease incentives, letting
fees and rent guarantees (2024: £185 million).
The carrying value of investment properties situated on land held under leaseholds is £171 million
(excluding head lease ROU assets) (2024: £170 million).
Further details on property valuation techniques, sustainability and climate change considerations
and related quantitative information are set out in Note 25.
14. Trade and Other Receivables
Group
Company
2025 2024 2025 2024
£m £m £m £m
Current
Trade receivables
1
 70 65 — —
Other receivables
2
 97 88 20 34
Prepayments
 11 19 — —
Amounts due from related parties
 7 6 — —
Total current trade and other receivables
 185 178 20 34
Non-current
Other receivables
 3 2 — —
Total non-current other receivables
 3 2 — —
1 Note 17(vi) details the Group’s credit risk management and loss allowances held for trade receivables.
2 Group other current receivables includes VAT recoverable and capital receivables.
15. Trade and Other Payables
Group
Company
2025 2024 2025 2024
£m £m £m £m
Due within one year
Trade payables
 5 7 — —
Other payables
1
 128 130 2 1
Non-capital accruals
2
 112 113 50 55
Capital creditors and capital accruals
 135 136 — —
Rent in advance
 131 115 — —
Lease liabilities
 1 1 — —
Total trade and other payables due within one
year
 512 502 52 56
Due after one year
Other payables
 — 1 — —
Lease liabilities
 82 69 — —
Loans due to subsidiaries
 — — 2,159 2,124
Total other payables due after one year
 82 70 2,159 2,124
1 Group other current payables includes VAT payable and tenant deposits.
2 Includes accrued interest on external borrowings for the Group of £38 million (2024: £36 million).
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Notes to the Financial Statements continued
For the year ended 31 December 2025
16. Net Borrowings
16(i) – Net borrowings by type
Group
Company
2025 2024 2025 2024
£m £m £m £m
Unsecured borrowings:
Bonds
1.250% bonds 2026 €650m
 565 535 — —
2.375% bonds 2029 £350m
 349 349 349 349
1.875% bonds 2030 €500m
 431 410 — —
0.50% bonds 2031 €500m
 432 409 — —
3.50% bonds 2032 €500m
1
 431 408 431 408
5.75% bonds 2035 £200m
 199 199 199 199
2.875% bonds 2037 £400m
 397 397 397 397
5.125% bonds 2041 £350m
 344 344 344 344
3,148 3,051 1,720 1,697
Private placement notes
1
1.77% notes 2027 €400m
 348 330 348 330
1.82% notes 2028 €100m
 87 83 87 83
2.00% notes 2029 €150m
 130 124 130 124
2.27% notes 2032 €100m
 87 82 87 82
1.35% notes 2032 €150m
 130 124 130 124
2.37% notes 2033 €200m
 174 165 174 165
1.45% notes 2035 €50m
 43 41 43 41
3.87% notes 2037 €50m
 43 40 43 40
1.83% notes 2040 €190m (Series C)
164 156 164 156
1.83% notes 2040 €60m (Series D)
 52 49 52 49
4.14% notes 2042 €175m
 151 145 151 145
1,409 1,339 1,409 1,339
Bank loans
Revolving credit facilities
 260 72 260 72
Term loans
 134 145 134 145
394 217 394 217
Total borrowings
2
 4,951 4,607 3,523 3,253
Cash and cash equivalents
 (111) (363) (10) (266)
Net borrowings
 4,840 4,244 3,513 2,987
1 These euro denominated bonds and private placement notes are designated in net investment hedge relationships with euro
denominated investments in subsidiaries. Total carrying value before capitalised finance costs £1,848 million (2024: £1,747 million).
See Note 17(iv) for further details.
2 All borrowings are unsecured.
The maturity profile of borrowings is as follows:
Group
Company
2025 2024 2025 2024
Maturity profile of borrowings
 £m £m £m £m
In one year or less
 565 — — —
In more than one year but less than two 482 535 482 —
In more than two years but less than five 1,257 1,103 826 1,103
In more than five years but less than ten 1,496 1,598 1,064 779
In more than ten years 1,151 1,371 1,151 1,371
In more than one year
 4,386 4,607 3,523 3,253
Total borrowings
 4,951 4,607 3,523 3,253
Cash and cash equivalents
1
 (111) (363) (10) (266)
Net borrowings
 4,840 4,244 3,513 2,987
1 Group cash and cash equivalents also include tenant deposits held in separate designated bank accounts of £74 million
(2024: £71 million), the use of the deposits is subject to restrictions as set out in the tenant lease agreement and therefore not
available for general use by the Group.
There are no early settlement or call options (greater than three months prior to maturity) on any of
the borrowings. Financial covenants relating to £4,951 million of borrowings as at 31 December 2025
include maximum limits to the Group’s gearing ratio, minimum limits to permitted interest cover,
minimum limits to the Group’s unencumbered asset ratio and maximum limits to subsidiary or
secured borrowings. Depending on the instrument, financial covenants are tested for compliance
either annually or semi-annually. The gearing ratio of the Group as at 31 December 2025 as defined
within the principal debt funding arrangements was 39 per cent and significantly lower than the
Group's tightest financial gearing covenant within these debt facilities of 160 per cent. The interest
cover covenant requires net interest before capitalisation be covered at least 1.25 times by net
property rental income and the ratio for 2025 was 4.2 times. Financial covenants are discussed in
more detail in the ‘Gearing and financial covenants' section in the Financial review on page 40 and
there are no indications that the Group would have difficulty complying with the covenants.
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Notes to the Financial Statements continued
For the year ended 31 December 2025
16. Net Borrowings continued
16(i) – Net borrowings by type continued
Bank loans and overdrafts include capitalised finance costs on committed facilities.
In April 2025, SEGRO signed a new €1.6 billion revolving credit facility with its syndicate of eight
relationship banks. The senior unsecured facility has an initial five-year term and may be further
extended to a maximum of seven years, subject to lender approval. The new facility replaced the
previous €1.0 billion and €0.6 billion syndicated revolving credit facilities, which were due to mature
in 2027.
In September 2025, SEGRO signed a new €360 million term loan facility with relationship and
non-relationship banks. The facility is undrawn at year end, has an availability for drawing until
March 2026, and a final maturity date in September 2030.
The debt refinancing is discussed in more detail in the Financial review on page 40.
Group
2025 2024
Maturity profile of undrawn borrowing facilities
 £m £m
In one year or less
 9 140
In more than two years but less than five
 1,610 1,413
Total available undrawn borrowing facilities
 1,619 1,553
16(ii) – Net borrowings by interest rates
The weighted average interest rate profile of Group net borrowings after derivative instruments is
as follows:
2025
Variable
Fixed Fixed Fixed Capped Capped Floored Floored debt/
Interest
rate period debt strike debt strike cash cash Total
rate profile – Group
% years £m % £m % £m £m £m
Borrowings
Weighted average after derivative instruments
Sterling
3.83
9.9
1,390
—
—
—
—
(429)
961
Euros
1.96
4.6
2,615
1.91
982
—
—
393
3,990
Total borrowings
2.61
6.4
4,005
1.91
982
—
—
(36)
4,951
Cash and cash
equivalents
Sterling
—
—
(95)
(95)
Euros
—
—
(16)
(16)
Total cash and cash
equivalents
—
(111)
(111)
Net borrowings
4,005
982
—
(147)
4,840
2024
Variable
Fixed Fixed Fixed Capped Capped Floored Floored debt/
Interest
rate period debt strike debt strike cash cash Total
rate profile – Group
% years £m % £m % £m £m £m
Borrowings
Weighted average after derivative instruments
Sterling
3.83
10.9
1,388
—
—
—
—
(470)
918
Euros
1.98
5.5
2,523
2.20
1,095
—
—
71
3,689
Total borrowings
2.64
7.4
3,911
2.20
1,095
—
—
(399)
4,607
Cash and cash
equivalents
Sterling
4.69
(348)
—
(348)
Euros
—
—
(15)
(15)
Total cash and cash
equivalents
(348)
(15)
(363)
Net borrowings
3,911
1,095
(348)
(414)
4,244
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Notes to the Financial Statements continued
For the year ended 31 December 2025
17. Financial Instruments and Fair Values
17(i) – Derivative instruments
The Group and Company hold the following derivative instruments at fair value:
Derivative assets
Group
Company
2025 2024 2025 2024
£m £m £m £m
Current
Forward foreign exchange and currency swap
contracts – non-hedge
 2 — 2 —
Interest rate cap contracts – non-hedge
 — 1 — 1
Interest rate floor contracts – non-hedge
 — 2 — 2
Total current derivative assets
 2 3 2 3
Non-current
Forward foreign exchange and currency swap
contracts – non-hedge
 6 27 6 27
Interest rate cap contracts – non-hedge
 19 21 19 21
Total non-current derivative assets
 25 48 25 48
Derivative liabilities
Group
Company
2025 2024 2025 2024
£m £m £m £m
Current
Interest rate swap contracts – non-hedge
 60 44 60 44
Total current derivative liabilities
 60 44 60 44
Non-current
Interest rates swap contracts – non-hedge
 82 75 82 75
Total non-current derivative liabilities
 82 75 82 75
17(ii) – Carrying amount and fair values of financial assets and liabilities
The Group holds the following financial instruments:
Group
2025 2024
Notes £m £m
Financial assets
Financial assets at amortised cost
Lease incentives
1
13 192 158
Trade receivables
14 70 65
Other current receivables
2
14 30 36
Non-current receivables
14 3 2
Cash and cash equivalents
16 111 363
Financial assets at fair value through profit or loss (FVPL)
Other investments
 16 12
Derivative financial instruments
Non-hedge at FVPL
17 27 51
449 687
Financial liabilities
Liabilities at amortised cost
Trade and other payables
2
15 463 456
Borrowings
16 4,951 4,607
Derivative financial instruments
Non-hedge at FVPL
17 142 119
5,556 5,182
1 Represents the carrying value of tenant lease incentives held in Investment properties at the year end. This amount is included
within the ‘tenant lease incentives and letting fees’ balance in Note 13.
2 Excludes non-financial assets of £85 million (2024: £77 million) included within total Group other receivables per Note 14 and
non-financial liabilities of £131 million (2024: £116 million) included within total trade and other payables per Note 15.
The carrying values of these financial assets and liabilities approximate their fair value, with the
exception of unsecured bonds and unsecured US private placement notes classified as borrowings.
At 31 December 2025, the fair value of £3,148 million of unsecured bonds issued was £2,957 million
(2024: £3,051 million compared with £2,822 million fair value). At 31 December 2025, the fair value of
£1,409 million of unsecured US private placement notes was £1,292 million (2024: £1,339 million
compared with £1,285 million fair value). This results in a fair value adjustment increase in EPRA NDV
of £308 million (2024: £283 million), see Table 5 of the Supplementary Notes. The fair value of
unsecured bonds is estimated using quoted prices (level 1) and the fair value of US private
placement notes is estimated by discounting contractual future cash flows (level 2).
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Notes to the Financial Statements continued
For the year ended 31 December 2025
17. Financial Instruments and Fair Values continued
17(ii) – Carrying amount and fair values of financial assets and liabilities continued
The fair values of financial assets and financial liabilities are determined as follows:
• Forward foreign exchange contracts are measured using quoted exchange rates and yield curves
derived from quoted interest rates with maturities matching the contracts (level 2).
• Interest rate swaps, currency swap contracts and interest rate options are measured at the present
value of future cash flows estimated and discounted based on the applicable yield curves derived
from quoted interest rates and the appropriate exchange rate at the Balance Sheet date (level 2).
• The fair value of other investments classified as fair value through profit or loss that is not traded
on active liquid markets is determined by management (level 3).
Fair value measurements recognised in the Balance Sheet
The Group’s financial instruments that are measured subsequent to initial recognition at fair value
are unlisted investments, forward exchange and currency swap contracts, interest rate swaps and
interest rate options as detailed above. As defined by IFRS 13, unlisted investments are classified as
level 3 fair value measurements, where inputs are not based on observable market data. All other
financial instruments are classified as level 2 fair value measurements, being those derived from
inputs other than quoted prices (included within level 1) that are observable for the asset or liability,
either directly (i.e. as prices) or indirectly (i.e. derived from prices). There were no transfers between
categories in the current or prior year.
17(iii) – Capital risk management
The Group manages its capital to ensure that entities in the Group will be able to continue as a
going concern and as such it aims to maintain a prudent mix between debt and equity financing.
Our intention for the foreseeable future is to maintain our mid-cycle LTV (including joint ventures at
share) at around 30 per cent. This provides the flexibility to take advantage of investment opportunities
arising and ensures significant headroom compared to our tightest gearing covenants should property
values decline. The current capital structure of the Group consists of a mix of equity and debt. Equity
comprises issued capital, reserves and retained earnings as disclosed in the Statement of Changes
in Equity and Notes 18 to 19. Debt primarily comprises long-term debt issues, term loans and
drawings against short-term committed revolving credit facilities from banks as disclosed in Note 16.
The Group is not subject to externally imposed capital requirements.
17(iv) – Foreign currency risk management
The Group’s transactional foreign exchange exposures mainly arise as a result of treasury financing
and hedging activities. These hedging activities are carried out in SEGRO plc on behalf of the Group
and the resulting transactional exposures to euro are not routinely hedged. The Group does not
have any significant transactional foreign currency exposures resulting from cross-border flows
in the operating business. The Group does however have operations in Continental Europe, which
transact business denominated mostly in euros, hence there is currency exposure caused by
translating the local trading performance and local net assets into sterling for each financial period
and at each Balance Sheet date.
The Group’s approach to managing Balance Sheet translation exposure is described in the Foreign
Currency Translation Risk section in the Financial review on page 41.
The Group’s Balance Sheet translation exposure to euros (including the impact of derivative
financial instruments) is summarised below:
2025 2024
Total Total
£m £m
Group
Gross currency assets
 6,114 5,535
Gross currency liabilities
 (4,358) (4,170)
Net exposure
 1,756 1,365
2025 Group gross currency liabilities include €2,226 million (£1,936 million) designated as net
investment hedges (2024: €2,226 million (£1,831 million)).
The remaining gross currency liabilities of the Group shown in the table above that are not
designated as net investment hedges are either held directly in a euro functional currency entity or
passed down to such an entity from a sterling functional currency company through intercompany
funding arrangements.
Foreign currency sensitivity analysis
The Group’s main currency exposure is the euro. The sensitivity of the net assets of the Group to
a 10 per cent appreciation in the value of sterling against the euro would decrease net assets by
£160 million (2024: £124 million). The sensitivity of the Group to a 10 per cent depreciation in the
value of sterling against the euro would increase net assets by £195 million (2024: £152 million).
The 10 per cent sensitivity rate is used when reporting foreign currency risk internally to
management and represents management’s assessment of the reasonably possible change in
foreign exchange rates. The sensitivity analysis adjusts the translation of net assets (after taking
account of external loans, currency swap contracts and forward foreign exchange contracts) at the
period end for a 10 per cent change in the value of sterling against the euro. A 10 per cent appreciation
in the value of sterling against the euro would decrease the Group’s profit for the year ended
31 December 2025 by £22 million (2024: decrease of £9 million). A 10 per cent depreciation in the
value of sterling against the euro would increase the Group’s profit for the year ended 31 December
2025 by £26 million (2024: increase of £10 million).
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Overview Strategic Report Governance Financial Statements Further Information
Notes to the Financial Statements continued
For the year ended 31 December 2025
17. Financial Instruments and Fair Values continued
17(iv) – Foreign currency risk management continued
Forward foreign exchange and currency swap contracts
Some of the forward foreign exchange and currency swap contracts held by the Group are
designated as net investment hedges of euro denominated subsidiaries, where exchange differences
are booked in reserves and recognised in the Income Statement when the operation is sold.
The remaining foreign exchange and currency swap contracts are effectively economic cash flow
hedges, for example using surplus cash in one currency to provide (typically through intercompany
debt funding arrangements with overseas subsidiaries) funds to repay debt, or to fund development
expenditure or acquisitions in another currency. These instruments have not been designated
as hedges. As a consequence, exchange movements in respect of these instruments are taken
through the Income Statement. Offsetting these movements are net exchange gains of £27 million
(2024: £14 million loss) arising on intercompany debt funding arrangements (discussed above) and
exchange movements arising from external borrowings not designated as hedges. This has resulted
in exchange differences of £2 million loss (2024: £1 million gain) within net finance costs in Note 9.
The Group seeks to limit its exposure to volatility in foreign exchange rates by hedging its foreign
gross assets using either borrowings or derivative instruments. The Group targets a hedging
range of between the last reported LTV ratio (31 per cent at 31 December 2025) and 100 per cent.
At 31 December 2025, the Group had gross foreign currency assets, which were 71 per cent
hedged by gross foreign currency denominated liabilities (2024: 75 per cent).
Further details are provided within the Foreign Currency Translation Risk section of the Financial
review on page 41.
The following table details the forward foreign exchange and currency swap contracts outstanding
as at the year end:
Average Currency contract
exchange rates
(local currency)
Contract value
Fair value
2025 2024 2025 2024 2025 2024
2025 2024 m m £m £m £m £m
Group
Economic cash
flow hedges
Sell euros
(buysterling)
 1.13 1.15 588 545 519 474 8 27
Buy euros
(sellsterling)
 1.14 1.20 17 3 15 3 — —
Net investment
hedges
Sell euros
(buysterling)
 1.14 1.21 101 101 88 84 — —
Total
 8 27
Effects of net investment hedge accounting on financial position and performance
The effects of the foreign currency related hedging instruments on the Group’s financial position
and performance are detailed below.
Forward foreign exchange contracts
The Group designated euro denominated forward foreign exchange contracts as net investment
hedges during 2025 and 2024.
There was no ineffectiveness to be recorded from net investments in foreign entity hedges in 2025
and 2024 where the hedging instrument was forward foreign exchange contracts. This is because
the critical terms of both the net investment in foreign entity and the hedging instrument match,
and at each Balance Sheet date both are revalued to the closing spot rate. Any forward points in the
foreign exchange contract are taken to the Income Statement.
Group
2025 2024
Euro forward foreign exchange
 £m £m
Carrying amount (current liabilities, Note 17(i))
 — —
Notional amount
 88 84
Maturity date
Jan 2026 Jan 2025
Hedge ratio
1:1 1:1
Change in discounted spot value of hedging instruments since
1 January – (loss)/gain
 (4) 20
Change in value of hedged item used to determine hedge
effectiveness – gain/(loss)
 4 (20)
Weighted average hedged rate for the year (including forward points)
 1.17 1.17
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SEGRO plc Annual Report & Accounts 2025
Overview Strategic Report Governance Financial Statements Further Information
Notes to the Financial Statements continued
For the year ended 31 December 2025
17. Financial Instruments and Fair Values continued
17(iv) – Foreign currency risk management continued
US private placement notes and bonds
There was no ineffectiveness to be recorded from net investments in foreign entity hedges in 2025
and 2024 where the hedging instrument was US private placement notes or bonds. This is because
the critical terms of both the net investment in foreign entity and the hedging instrument match,
and at each Balance Sheet date both are revalued to the closing spot rate.
Group
2025 2024
Private placement notes and bonds
 £m £m
Carrying amount of private placement notes or bonds (non-current
borrowings, Note 16)
 1,848 1,747
Carrying amount of private placement notes or bonds designated as net
investment hedging instruments
 1,848 1,747
Hedge ratio
1:1 1:1
Change in carrying amount of USPP notes and bonds as a result of foreign
currency movement since 1 January, recognised in OCI – (loss)/gain
 (92) 75
Change in value of hedged item used to determine hedge
effectiveness – gain/(loss)
 92 (75)
Weighted average hedged rate for the year (including forward points)
 1.15 1.21
The total fair value movements on derivatives and borrowings in effective hedge relationships
shown in Other Comprehensive Income for the year ended 31 December 2025 is a loss of
£96 million (2024: £95 million gain) and consists of the loss on euro forward foreign exchange
of £4 million (2024: £20 million gain) and loss on US private placement notes and bonds
of £92 million (2024: £75 million gain) shown in the tables above.
17(v) – Interest rate risk management
The Group is exposed to interest rate risk as entities in the Group borrow funds at both fixed and
floating interest rates and invests cash at floating interest rates. The risk is managed by maintaining
an appropriate mix between fixed and floating rates. The current Group policy states that 50 to
100 per cent of net borrowings should be at fixed rate provided by long-term debt issues attracting
a fixed coupon or from floating rate bank borrowings converted into fixed rate or hedged via interest
rate swaps, forwards, caps, collars or floors or options on these products. Hedging activities require
approval and are evaluated and reported on regularly to ensure that the policy is being adhered to.
The Board reviews the policy on interest rate exposure annually with a view to establishing that it is
still relevant in the prevailing and forecast economic environment.
Interest rate sensitivity analysis
The sensitivity analysis below has been determined based on the exposure to interest rates for both
derivative and non-derivative instruments at the Balance Sheet date. For floating rate liabilities, the
analysis is prepared assuming that the amount of liability outstanding at the Balance Sheet date was
outstanding for the whole year. A 1 per cent increase or decrease is used when reporting interest
rate risk internally to key management personnel and represents management’s assessment of the
reasonable possible change in interest rates.
If interest rates had been 1 per cent higher and all other variables were held constant, the Group’s
profit for the year ended 31 December 2025 would increase by £nil (2024: £5 million increase in
profit for the year). If interest rates had been 1 per cent lower and all other variables were held
constant, the Group’s profit for the year ended 31 December 2025 would increase by £10 million
(2024: £1 million increase in profit for the year). The interest rate sensitivity described results in a
higher profit in 2025 and 2024 for both an interest rate rise and an interest rate fall. This is because
during 2025 and 2024 the Group had both interest rate caps hedging floating rate debt interest
costs, and interest rate floors hedging floating rate cash interest income. Fixed rate debt issues are
held at amortised cost and are not revalued in the Balance Sheet to reflect interest rate movements.
Interest rate swap contracts
Under interest rate swap contracts, the Group agrees to exchange the difference between fixed
and floating rate interest amounts calculated on agreed notional principal amounts. Such contracts
enable the Group to manage the interest rate risk of the Group’s borrowings. The fair value of
interest rate swaps at the reporting date is determined by discounting the future cash flows using
the yield curves at the reporting date and the credit risk inherent in the contract, and is disclosed
below. The average interest rate is based on the outstanding balances at the end of the
financial year.
The following tables detail the notional principal amounts and remaining terms of interest rate swap
contracts, based on their contractual maturities (excluding mandatory break clauses), outstanding
as at the reporting date:
Average contract– Notional principal
fixed interest rate
amount
Fair value
2025 2024 2025 2024 2025 2024
% % £m £m £m £m
Pay fixed, receive floating contracts:
Group
In one year or less
 — 2.80 — 41 — —
In more than one year but less than two
 3.92 — 100 — (1) —
In more than two years but less than five
 — 3.92 — 100 — —
In more than five years
 — — — — — —
Total
 100 141 (1) —
Receive fixed, pay floating contracts:
Group
In one year or less
 — — — — — —
In more than one year but less than two
 — — — — — —
In more than two years but less than five
 1.82 1.82 87 83 (3) (4)
In more than five years
 1.86 1.86 565 537 (138) (115)
Total
 652 620 (141) (119)
The above are effective economic hedges although the Group has not elected to adopt hedge
accounting for them, hence their change in fair value is taken direct to the Income Statement.
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SEGRO plc Annual Report & Accounts 2025
Overview Strategic Report Governance Financial Statements Further Information
Notes to the Financial Statements continued
For the year ended 31 December 2025
17. Financial Instruments and Fair Values continued
17(v) – Interest rate risk management continued
Interest rate swap contracts continued
The interest rate swaps settle on either a three-month or six-month basis with the floating rate side
based on the EURIBOR or sterling SONIA rate for the relevant period. The Group will settle or receive
the difference between the fixed and floating interest rate on a net basis.
Interest rate cap contracts
The Group agrees to receive floating rate interest amounts calculated on agreed notional principal
amounts, should prevailing market rates rise above a specified strike rate using interest rate caps.
Such contracts enable the Group to manage the interest rate risk of the Group’s floating rate
borrowings. The fair value of interest rate caps at the reporting date is determined by discounting
the future cash flows using the yield curves at the reporting date and the credit risk inherent in the
contract and is disclosed below. The average interest rate is based on the outstanding balances at
the end of the financial year.
The following table details the notional principal amounts and remaining terms of interest rate cap
contracts, based on their contractual maturities, outstanding as at the reporting date:
Average strike price
Notional amount
Fair value
2025 2024 2025 2024 2025 2024
% % £m £m £m £m
Group
In one year or less
 2.32 2.64 261 477 — 1
In more than one year but less than two
 2.17 2.32 287 248 1 1
In more than two years but less than five
1
 1.94 1.77 783 686 15 20
In more than five years
2
 3.11 — 348 — 3 —
Total
 1,679 1,411 19 22
1 2025 includes forward starting interest rate caps, with a notional amount totalling €400 million, 2.5 per cent average strike, and €1
million fair value.
2 2025 includes forward starting interest rate caps, with a notional amount totalling €400 million, 3.1 per cent average strike, and €3
million fair value.
The above are effective economic hedges although the Group has not elected to adopt hedge
accounting for them, hence their change in fair value is taken direct to the Income Statement.
The interest rate caps settle on a three-month basis based on the EURIBOR rate for the relevant
period. The Group will receive the difference between the floating rate and the specified strike rate.
Interest rate floor contracts
The Group agrees to receive floating rate interest amounts calculated on agreed notional principal
amounts should prevailing market rates fall below a specified strike rate using interest rate
floor contracts.
Such contracts enable the Group to manage the interest rate risk of the Group’s cash balances,
which are invested in funds generating a floating rate of interest. The fair value of interest rate floors
at the reporting date is determined by discounting the future cash flows using the yield curves at
the reporting date and the credit risk inherent in the contract and is disclosed below. The average
interest rate is based on the outstanding balances at the end of the financial year.
The following table details the notional principal amounts and remaining terms of interest rate floor
contracts, based on their contractual maturities, outstanding as at the reporting date:
Notional principal
Average strike price
amount
Fair value
2025 2024 2025 2024 2025 2024
% % £m £m £m £m
Group
In one year or less
 — 4.69 — 900 — 2
In more than one year but less than two
 — — — — — —
In more than two years but less than five
 — — — — — —
In more than five years
 — — — — — —
Total
 — 900 — 2
The above are effective economic hedges although the Group has not elected to adopt hedge
accounting for them, hence their change in fair value is taken direct to the Income Statement.
The interest rate floors settle on a three-month basis based on the compounded SONIA rate for the
relevant period. The Group will receive the difference between the floating rate and the specified
strike rate.
17(vi) – Credit risk management
Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in
financial loss to the Group. Potential customers are evaluated for creditworthiness and where necessary
collateral is secured. There is no concentration of credit risk within the lease portfolio to either business
sector or individual company as the Group has a diverse customer base with no one customer
accounting for more than 6 per cent of rental income. Trade receivables were less than 1 per cent of
total assets at 31 December 2025 and at 31 December 2024.
The ageing of the Group’s trade receivables and the carrying amount net of loss allowances is set
out below.
2025 2024
Gross Loss Net carrying Loss Net carrying
amount allowance amount Gross amount allowance amount
£m £m £m £m £m £m
Group
0–30 days
6
(2)
4
6
(2)
4
30–60 days
1
(1)
—
3
(1)
2
60–90 days
3
(1)
2
—
—
—
90–180 days
3
(1)
2
2
(1)
1
>180 days
6
(5)
1
5
(4)
1
Past due
19
(10)
9
16
(8)
8
Not due
61
—
61
58
(1)
57
Total trade
receivables
80
(10)
70
74
(9)
65
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SEGRO plc Annual Report & Accounts 2025
Overview Strategic Report Governance Financial Statements Further Information
Notes to the Financial Statements continued
For the year ended 31 December 2025
17. Financial Instruments and Fair Values continued
17(vi) – Credit risk management continued
Gross trade receivables mainly consists of amounts invoiced for rent, service charge and
management fees, which form part of revenue (see Note 4) and are inclusive of VAT. Trade
receivables at 31 December 2025 includes amounts due for 2025 rent and amounts billed in
advance for 2026 rent. Both amounts have been considered in measuring expected credit losses
(ECLs) detailed further below. The amounts billed in advance for 2026 rent are included within the
‘Not due’ category in the table above.
Total gross trade receivables ‘past due’ at 31 December 2025 were £19 million (2024: £16 million),
3 per cent of total gross rental income for the year (2024: 3 per cent).
Trade receivables are presented in the Balance Sheet net of loss allowances. The Group applies
the IFRS 9 simplified approach to measuring expected credit losses (ECLs), which uses a lifetime
expected loss allowance for all trade receivables. Expected loss rates are based on the historic
credit loss experienced and adjusted for current and forward information affecting the ability
of the individual customers to settle receivables. Trade receivables are written off when there
is no reasonable expectation of recovery.
In determining the ECLs an analysis of various factors has been performed on a customer by
customer basis and considers the impact of economic conditions. These factors include an
assessment of the customer’s default risk based on: industry and geographic location; and
payment record, which includes how many days past due the receivable is, payment plans
granted and credit rating. ECLs are recognised net of securities held for the customer.
As at 31 December 2025, the Group held a loss allowance provision for trade receivables
of £10 million (2024: £9 million) and the impairment risk remains low with the loss allowance
of £10 million representing 2 per cent of total gross rental income for the year (2024: 2 per cent).
Total impairment losses on trade receivables of £2 million were recognised in the Income Statement
for the year ended 31 December 2025 (2024: £1 million). The impairment losses on trade receivables
include the net impact from loss allowances, receivables written off and recoveries of receivables
previously written off and are presented within operating profit (see Note 5).
The other financial assets and lease incentive balances held by the Group have been considered
for impairment based on historical default rates over the expected life and are adjusted for
forward-looking information. Based on that analysis, no material loss allowances are held against
these assets in the current and prior period.
Investment in financial instruments is restricted to banks and short-term liquidity funds with a
good credit rating. Derivative financial instruments are transacted via International Swaps and
Derivatives Association (ISDA) agreements with counterparties with an A- (or equivalent) credit
rating. Cash and cash equivalents were placed with financial institutions with a minimum credit
rating of A- (or equivalent). The Group’s exposure and the credit ratings of its counterparties are
continuously monitored and the aggregate value of transactions concluded is spread among
approved counterparties.
17(vii) – Liquidity risk management
Ultimate responsibility for liquidity risk management rests with the Board, which has built an
appropriate liquidity risk management framework for the management of the Group’s short,
medium and long-term funding and liquidity management requirements. The Group manages
liquidity risk by requiring that adequate cash and committed bank facilities are available to cover
and match all debt maturities, development spend, trade related and corporate cash flows over a
rolling 18-month period. This is achieved by continuously monitoring forecast and actual cash flows
and matching the maturity profiles of financial assets and liabilities. Liquidity risk management is
discussed in more detail in the Financial review on page 41.
Liquidity and interest risk tables
The following tables detail the Group’s remaining contractual maturity profile for its financial
instruments. The tables have been drawn up based on the undiscounted cash flows of financial
liabilities based on the earliest date on which the Group can be required to pay. The tables include
both interest and principal cash flows.
2025
Weighted
average
interest Under 1-2 2-5 Over
rate 1 year years years 5 years Total
% £m £m £m £m £m
Non-derivative financial
liabilities:
342
—
—
—
342
3.90
5
5
14
133
157
4.73
16
152
295
—
463
2.46
672
451
1,277
2,466
4,866
Derivative financial
instruments:
1.47
71
81
3
3
158
– Forward and currency
swap contracts
– Inflowing
(15)
—
—
—
(15)
– Outflowing
15
—
—
—
15
1,106
689
1,589
2,602
5,986
164
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SEGRO plc Annual Report & Accounts 2025
Overview Strategic Report Governance Financial Statements Further Information
Notes to the Financial Statements continued
For the year ended 31 December 2025
17. Financial Instruments and Fair Values continued
17(vii) – Liquidity risk management continued
Liquidity and interest risk tables continued
2024
Weighted
average
interest Under 1-2 2-5 Over
rate 1 year years years 5 years Total
% £m £m £m £m £m
Non-derivative
financial liabilities:
350
—
—
—
350
3.90
4
4
12
109
129
5.22
10
10
241
—
261
2.48
110
641
1,177
2,864
4,792
Derivative financial
instruments:
2.60
53
56
26
—
135
– Forward and currency
swap contracts
– Inflowing
(2)
—
—
—
(2)
– Outflowing
2
—
—
—
2
527
711
1,456
2,973
5,667
1 Group trade and other payables disclosed as financial liabilities in Note 17(ii) of £463 million (2024: £456 million) includes accrued
interest of £38 million (2024: £36 million) and lease liabilities of £83 million (2024: £70 million). Accrued interest is shown in debt
instruments in the table above.
18. Share Capital and Share-based Payments
Share capital
Group and Company
Number Per value
of shares of shares
Issued and fully paid
million £m
Ordinary shares of 10p each at 1 January 2025
1,353
135
Issue of shares – placing
—
—
Issue of shares – scrip dividends
—
—
Issue of shares – other
—
—
Ordinary shares of 10p each at 31 December 2025
1,353
135
Number Per value
of shares of shares
Issued and fully paid
million £m
Ordinary shares of 10p each at 1 January 2024
1,228
123
Issue of shares – placing
111
11
Issue of shares – scrip dividends
13
1
Issue of shares – other
1
—
Ordinary shares of 10p each at 31 December 2024
1,353
135
Share-based payments
The Group operates the share-based payments schemes set out below.
18(i) – Deferred Share Bonus Plan (DSBP)
The DSBP is for Executive Directors and senior managers. A percentage of any payment made
under the Bonus Scheme is awarded in shares and deferred in trust for three years. The percentage
subject to deferral for Executive Directors is 50 per cent of the bonus payment. This scheme is
detailed in the Remuneration Report on page 114. If a participant ceases to be employed by the
Group, the award will lapse unless the participant is deemed to be a ‘good leaver’, in which case
the award will be released on the vesting date.
2025 2024
number number
At 1 January
 1,239,354 1,187,381
Shares granted DSBP
 592,301 332,487
Shares vested
 (440,603) (187,792)
Shares expired/lapsed
 (9,000) (92,722)
At 31 December
 1,382,052 1,239,354
The 2024 DSBP grant was made on 28 April 2025, based on a 25 April 2025 closing mid-market
share price of 691.8 pence.
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Overview Strategic Report Governance Financial Statements Further Information
Notes to the Financial Statements continued
For the year ended 31 December 2025
18. Share Capital and Share-based Payments continued
18(ii) – Long Term Incentive Plan (LTIP)
The LTIP is a discretionary employee share scheme for Executive Directors and senior managers.
Vesting of awards is subject to three-year performance conditions and is at the discretion of the
Remuneration Committee. The performance conditions of the LTIP are detailed in the Remuneration
Report on page 112 and 115.
If a participant ceases to be employed by the Group, the award will lapse, unless the participant
is deemed to be a ‘good leaver’, in which case the award will be reduced pro-rata on length of
employment in relation to the award date. For Executive Directors a compulsory two-year
post-vesting holding period follows the three-year performance period.
2025 2024
number number
At 1 January
 4,647,326 4,668,321
Shares granted LTIP
 2,178,187 1,476,521
Shares vested
 (519,480) (1,019,115)
Shares expired/lapsed
 (954,015) (478,401)
At 31 December
 5,352,018 4,647,326
The 2025 LTIP award was made on 19 February 2025. The calculation of the award was based on a
share price of 714.0 pence, the closing mid-market share price on 18 February 2025.
Additionally, an LTIP award was made on 2 December 2025 using the same share price as the award
made on 19 February 2025. An additional recruitment LTIP award was made on 2 December 2025.
The calculation of the recruitment LTIP award was based on a share price of 710.8 pence, the
closing mid-market share price on 1 December 2025. Further details can be found in the
Remuneration Report on page 123.
No consideration was paid for the grant of any award.
The Black-Scholes model has been used to fair value the shares granted currently under award
apart from the TSR elements of the award, which uses the Monte Carlo model. The assumptions
used are as follows:
29 March 5 May 24 March 22 March 19 February
Date of grant
2021 2022 2023 2024 2025
Market price used for award
933.0p
1,162.5p
737.8p
889.2p
714.0p
Risk-free interest rate
0.13%
1.68%
3.33%
4.18%
 4.09%
Dividend yield
2.4%
1.9%
3.1%
3.3%
 3.3%
Volatility
22.3%
24.7%
28.3%
29.4%
 28.2%
Term
3 years
3 years
3 years
3 years
3 years
Fair value per share
375.3p
493.1p
338.9p
520.1p
267.6p
18(iii) – Other share schemes
The Group also operates the following all-employee share schemes.
• Share Incentive Plan (SIP) - for UK based employees
• Global Share Incentive Plan (GSIP) - for Continental European based employees
• Sharesave
Further details of these schemes are set out in the Remuneration Report on page 116. The total
share--based payment charge for the other share schemes recognised in the 2025 Income Statement
was £1 million (2024: £1 million). The total number of outstanding shares and options for these
schemes as at 31 December 2025 was 1,089,005 (2024: 963,176).
19. Share Premium and Other Reserves
Share premium
2025 2024
Group and Company
 £m £m
Balance at 1 January
 4,569 3,577
Premium arising on the issue of shares – placing
 — 878
Premium arising on the issue of shares – scrip dividend
 — 114
Balance at 31 December
 4,569 4,569
Capital redemption reserve
The capital redemption reserve of £114 million arose in 2009 where shares were reclassified,
cancelled and consolidated in connection with a rights issue.
Own shares held reserve
The own shares held reserve represents the cost of shares in SEGRO plc bought in the open market
and held by Ocorian Limited and Equiniti Limited, to satisfy various Group share schemes.
Other reserves
Other reserves shown on the Group Balance Sheet of £196 million (2024: £124 million) are made up
of the following reserves:
The merger reserve of £169 million (2024: £169 million) arose in 2009 in connection with the
acquisition of Brixton plc, where the Group acquired 100 per cent of the voting equity of Brixton plc
in a share for share exchange.
The Group translation, hedging and other reserves of £7 million surplus (2024: £70 million deficit)
comprises all foreign exchange differences arising from the translation of the Financial Statements
of foreign operations, as well as from the translation of liabilities that hedge the Group’s net
investment in foreign denominated subsidiaries.
The Group share-based payment reserve of £20 million (2024: £25 million) reflects the increase in
equity in connection with share-based payment transactions accounted for under IFRS 2.
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Overview Strategic Report Governance Financial Statements Further Information
Notes to the Financial Statements continued
For the year ended 31 December 2025
20. Commitments
Contractual obligations to purchase, construct, develop, repair, maintain or enhance assets are as
follows:
2025 2024
Group
 £m £m
Properties
1
 581 210
1 As detailed on page 34 of the Strategic Report, the Group (including joint ventures at share) is expected to invest approximately
£450-£550 million in development capex during 2026. This amount includes committed and uncommitted capex.
In addition, commitments in the Group’s joint ventures at 31 December 2025 (at share) amounted
to £44 million (2024: £2 million). The Group also has a £5 million commitment to property related
investment funds at 31 December 2025 (2024: £4 million).
21. Contingent Liabilities
The Group has given performance guarantees to third parties amounting to £48 million
(2024: £46 million) in respect of development contracts of subsidiary undertakings. It is
unlikely that these contingencies will crystallise.
The Company has guaranteed loans, bank overdrafts and euro bonds of subsidiary undertakings
and has indicated its intention to provide the necessary support required by its subsidiaries.
The Group and joint ventures are subject to claims and litigation generally and provide guarantees,
indemnities, representations and warranties arising in the ordinary course of its business. Provision
is made when liabilities are considered likely to arise and the expected quantum of the exposure
is able to be estimated. The risk in relation to such items is monitored on an ongoing basis
and provisions amended accordingly. It is not expected that contingent liabilities existing at
31 December 2025 will have a material adverse effect on the Group’s financial position.
22. Leases
The Group as a lessor
The investment properties are leased to tenants under operating leases with rentals payable on a
monthly or quarterly basis. Lease payments for some contracts include inflationary index increases,
but there are no significant levels of variable lease payments that do not depend on an index or a
rate. Where considered necessary to reduce credit risk, the Group may obtain bank guarantees or
tenant deposits for the term of the lease. The Group is exposed to changes in the residual value of
properties at the end of current lease agreements. The residual value risk borne by the Group is
mitigated by active management of its property portfolio and is discussed further in the Asset
Management update on pages 30 to 32. The Group does not hold significant finance leases as
a lessor.
Future aggregate minimum rentals receivable under non-cancellable operating leases are:
Joint
ventures
Group at share 2025 2024
£m £m £m £m
Not later than one year
566
141
707
 613
Later than one year, not later than two years
509
128
637
 550
Later than two years, not later than three years
443
105
548
 488
Later than three years, not later than four years
384
84
468
 420
Later than four years, not later than five years
318
70
388
 355
Later than five years
2,165
215
2,380
 2,090
Balance at 31 December
4,385
743
5,128
 4,516
There are no significant levels of contingent rent in the current or prior year.
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Overview Strategic Report Governance Financial Statements Further Information
Notes to the Financial Statements continued
For the year ended 31 December 2025
23. Related Party Transactions
Group
Transactions during the year between the Group and its joint ventures are disclosed below:
2025 2024
£m £m
Dividends received
 63 29
Proceeds from assets sold to joint ventures
1
 73 —
Management fee income
 25 26
1 During 2025, proceeds from assets sold joint ventures includes land contributed into the SEGRO Pure Premier Park Data Centre
joint venture and assets sold to the SELP joint venture. No assets were sold to joint ventures during 2024.
Amounts due from joint ventures are disclosed in Note 14. Investments in joint ventures at
31 December 2025 of £1,715 million disclosed in Note 7 (2024: £1,552 million) include shareholder
loans of £89 million (2024: £84 million). Outstanding loans and amounts due are generally charged
interest at market rates and are unsecured. Loans held with joint ventures are either cash settled
or converted into share capital.
Transactions between the Company and its subsidiaries eliminate on consolidation and are not
disclosed in this note.
Company
Amounts due from subsidiaries are disclosed in Note 7 and amounts due to subsidiaries are
disclosed in Note 15.
None of the above Group or Company balances are secured.
Remuneration of key management personnel
Key management personnel for the Group and Company comprise Executive and Non-Executive
Directors, as outlined in the Governance Report on pages 74 to 76. Key management personnel
compensation is shown in the table below:
2025 2024
£m £m
Salaries and short-term benefits
 5 4
Share-based payments
 — 2
Total remuneration
 5 6
More detailed information concerning Directors’ remuneration, shareholdings, pension entitlements,
share options and other long-term incentive plans, as required by the Companies Act 2006, is
shown in the Remuneration Report on pages 106 to 124.
24. Notes to the Cash Flow Statements
24(i) – Reconciliation of cash generated from operations
Group
2025 2024
£m £m
Operating profit
 663 703
Adjustments for:
Depreciation of property, plant and equipment and amortisation of
intangibles
 17 12
Share of profit from joint ventures after tax
 (109) (53)
Profit on sale of properties
 (1) (75)
Revaluation surplus on investment properties
 (54) (120)
Other provisions
 4 5
520 472
Changes in working capital:
Decrease/(increase) in trading properties
 5 (3)
Increase in debtors and tenant incentives
 (47) (18)
Increase in creditors
 14 8
Net cash inflow generated from operations
 492 459
24(ii) – Deposits
Term deposits for a period of three months or less are included within cash and cash equivalents.
24(iii) – Analysis of net debt
Management defines net debt as total borrowing less cash and cash equivalents.
Cash movements
Non-cash movements
At
Cost of Other At
1 January
Cash Cash Exchange early close non-cash 31 December
2025
inflow
1
outflow
2
movement out of debt
adjustments
3
2025
£m
 £m £m £m £m £m £m
Group
Bank loans and loan
capital
4,641
268
(88)
166
—
—
 4,987
Capitalised finance
costs
(34)
—
(9)
—
—
7
 (36)
Total borrowings
4,607
268
(97)
166
—
7
 4,951
Cash and cash
equivalents
(363)
—
252
—
—
—
 (111)
Net debt
4,244
268
155
166
—
7
 4,840
1 Proceeds from borrowings of £268 million.
2 Cash outflow of £97 million, comprises repayment of borrowings of £88 million and capitalised finance costs of £9 million.
3 Total other non-cash adjustment of £7 million relates to the amortisation of issue costs offset against borrowings.
168
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Overview Strategic Report Governance Financial Statements Further Information
Notes to the Financial Statements continued
For the year ended 31 December 2025
24. Notes to the Cash Flow Statements continued
24(iv) – Analysis of financial liabilities and assets arising from financing activities
For the year ended 31 December 2025
Cash movements
Non-cash movements
Cost of
At
Net early Other At
1 January
Cash Cash Exchange fair value close of non-cash 31 December
2025
inflow outflow
movement
1
changes
2
debt adjustments 2025
£m
 £m £m £m £m £m £m £m
Group
Total
borrowings
(Note 16)
4,607
268
(97)
166
—
—
7
4,951
Derivatives:
(Net) Fair value
of forward
foreign
exchange and
currency swap
contracts
(Note17)
(27)
—
(15)
—
30
4
—
—
(8)
Lease liabilities
(Note 15)
3
70
—
(5)
—
4
—
—
14
83
Total net
financial
liabilities
arising from
financing
activities
4,650
268
(117)
—
200
4
—
21
5,026
1 Exchange movement of £196 million from borrowings and forward foreign exchange and currency swap contracts consists of:
foreign exchange loss on effective hedge relationships recognised in OCI of £96 million, foreign exchange loss arising on
translation of borrowings held in international operations recognised in OCI of £71 million, and foreign exchange loss recognised
within the Income Statement of £29 million. See Note 17(iv).
2 Total net fair value loss of £35 million arising from derivatives per Note 9 also includes fair value loss from interest rate derivatives
of £31 million.
3 Lease liabilities cash outflows of £5 million consists of: £3 million interest payment and £2 million principal elements payment.
For the year ended 31 December 2024
Cash movements
Non-cash movements
Cost of
At Net early Other At
1 January Cash Cash Exchange fair value close of non-cash 31 December
2024 inflow outflow
movement
1
changes
2
debt adjustments 2024
£m £m £m £m £m £m £m £m
Group
Total
borrowings
(Note 16)
5,348
419
(1,006)
(166)
—
2
10
4,607
Derivatives:
(Net) Fair value
of forward
foreign
exchange and
currency swap
contracts
(Note17)
(12)
1
—
(16)
—
—
—
(27)
Lease liabilities
(Note 15)
3
74
—
(5)
(3)
—
—
4
70
Total net
financial
liabilities
arising from
financing
activities
5,410
420
(1,011)
(185)
—
2
14
4,650
1 Exchange movement of £182 million from borrowings and forward foreign exchange and currency swap contracts consists of:
foreign exchange gain on effective hedge relationships recognised in OCI of £95 million, foreign exchange gain arising on
translation of borrowings held in international operations recognised in OCI of £72 million, and foreign exchange gain recognised
within the Income Statement of £15 million. See Note 17(iv).
2 Total net fair value gain of £3 million arising from derivatives per Note 9 also includes fair value gain from interest rate derivatives
of £3 million.
3 Lease liabilities cash outflows of £5 million consists of: £3 million interest payment and £2 million principal elements payment.
169
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SEGRO plc Annual Report & Accounts 2025
Overview Strategic Report Governance Financial Statements Further Information
Notes to the Financial Statements continued
For the year ended 31 December 2025
25. Property Valuation Techniques, Sustainability and Climate Change
Considerations and Related Quantitative Information
All of the Group’s properties are level 3, as defined by IFRS 13, in the fair value hierarchy as at
31 December 2025 and there were no transfers between levels during the year. Level 3 inputs used
in valuing the properties are those which are unobservable, as opposed to level 1 (inputs from
quoted prices) and level 2 (observable inputs either directly, i.e. as prices, or indirectly, i.e. derived
from prices).
Valuation techniques
Based on different approaches for different properties, the following valuation techniques can be
used for the same class of assets:
The yield methodology valuation technique is used when valuing the Group’s assets, which uses
market rental values capitalised with a market capitalisation rate. The resulting valuations are
cross-checked against the initial yields and the fair market values per square metre derived from
actual market transactions for similar assets.
For properties under construction and the majority of land held for development, properties
are valued using a residual method valuation. Under this methodology, the valuer assesses the
investment value (using the above mentioned methodology for completed buildings). Deductions
are then made for the total estimated costs to complete, including notional finance costs and
developer’s profit, to take into account the hypothetical purchaser’s management of the remaining
development process and their perception of risk with regard to construction and the property
market (e.g. as regards potential cost overruns and letting risk). Land values are cross-checked
against the rate per hectare derived from actual market transactions. Other land is also valued on this
comparative basis. Land values per hectare range from £0.1 million – £41.5 million (2024: £0.1 million
– £41.5 million) for the UK and £0.1 million – £10.8 million (2024: £0.1 million – £11.4 million) for
Continental Europe.
Sustainability valuation considerations
The Group’s valuers, CBRE, note in their valuation report that the impact of sustainability factors on
valuations have been considered. In a valuation context, ‘sustainability’ encompasses a wide range
of physical, social, environmental and economic factors that can affect value of an asset, even if not
explicitly recognised. The valuers consider the following areas to have the most potential to impact
on the value of an asset: Energy Performance; Green Certification; Sources of Fuel and Renewable
Energy Sources and Physical Risk/Climate Risk. The valuers have considered in particular the EPC
ratings and the appropriate capital expenditure that will be required to obtain the necessary
EPC rating to attract and maintain the tenants required in the future. The valuers are also aware
of the impact of flood risk and have noted the impact this has had on potential purchasers.
Climate risk legislation
The UK Government and the EU is currently producing legislation on the transition to net-zero. The
UK Government is currently producing legislation that enforces the transition to net-zero by 2050,
and the stated 78 per cent reduction of greenhouse gases by 2035. This is understood to include an
update to the Minimum Energy Efficiency Standards, stated to increase the minimum requirements
for non-domestic properties from an E to a B in 2030. The UK Government also intends to introduce
an operational rating. It is not yet clear how this will be legislated, but fossil fuels used in buildings,
such as natural gas for heating, are incompatible with the UK’s commitment to be net-zero carbon
by 2050. This upcoming legislation could have a potential impact to future asset value.
The introduction of mandatory climate-related disclosures in the UK and EU (including Task Force
on Climate-related Financial Disclosures (TCFD) in the UK and Sustainable Finance Disclosure
Regulations (SFDR) and Corporate Sustainability Reporting Directive (CSRD) in the EU), including the
assessment of physical and transition climate risks, may potentially have an impact on how the
market views such risks and incorporates them into the sale and letting of assets.
Sustainability and climate risk legislation has an impact on the value of an asset, even if not explicitly
recognised. Where the valuers recognise the value impacts of sustainability and legislation, they are
reflecting their understanding of how market participants include sustainability and legislation
requirements in their bids and the impact on market valuations.
Sensitivity analysis
An increase/decrease to estimated rental value (ERV) will increase/decrease valuations, while an
increase/decrease to yield will decrease/increase valuations. Sensitivity analysis showing the impact
on valuations of changes in yields and ERV on the property portfolio (including joint ventures at
share) and the impact on valuations of changes in development costs on the development property
and land portfolio (including joint ventures at share) is shown below.
Management still considers a +/- 25bp change in yield, a +/- 5 per cent change in ERV and a +/- 10
per cent change in development costs to be reasonably possible changes to the assumptions.
Impact on valuation Impact on valuation of Impact on valuation of
of 25bp change in 5% change in estimated 10% change in estimated
equivalent yield rental value (ERV) development costs
Group Increase Decrease Increase Decrease Increase Decrease
£m £m £m £m £m £m £m
2025
Completed
property
16,664
(782)
849
607
(597)
—
—
Development
property and land
2,298
(168)
179
265
(265)
(318)
318
Group total
property
portfolio
18,962
(950)
1,028
872
(862)
(318)
318
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SEGRO plc Annual Report & Accounts 2025
Overview Strategic Report Governance Financial Statements Further Information
Notes to the Financial Statements continued
For the year ended 31 December 2025
25. Property Valuation Techniques, Sustainability and Climate Change
Considerations and Related Quantitative Information continued
Sensitivity analysis continued
Impact on valuation Impact on valuation of Impact on valuation of
of 25bp change in 5% change in estimated 10% change in estimated
equivalent yield rental value (ERV) development costs
Group Increase Decrease Increase Decrease Increase Decrease
£m £m £m £m £m £m £m
2024
Completed property
15,453
(734)
807
576
(571)
—
—
Development property
and land
2,317
(190)
203
287
(287)
(351)
351
Group total property
portfolio
17,770
(924)
1,010
863
(858)
(351)
351
There are inter-relationships between all these inputs as they are determined by market conditions.
The existence of an increase in more than one input would be to magnify the impact on the valuation.
The impact on the valuation will be mitigated by the inter-relationship of two inputs in opposite
directions, for example, an increase in rent may be offset by an increase in yield. The yield sensitivity
is based on the equivalent yield that closely aligns with the net true equivalent yield inputs shown in
the tables below. The tables below includes the Group’s wholly-owned and joint venture assets at
share in order to include the entire portfolio. The equivalent analysis for the range of inputs on a
wholly-owned basis would not be significantly different.
Valuation
Inputs
Net true
Combined Net true equivalent
Land &
property equivalent yield
2025
Completed
development
1
portfolio
ERV
2
ERV range
2
yield
3
range
3
By asset type
 £m
£m
 £m £ per sq m £ per sq m % %
Big box
warehouses
5,790
—
5,790
69.4
34.4-231.4
5.6
4.5-7.4
Urban
warehouses
9,215
—
9,215
173.9
31.3-403.6
5.3
4.5-9.7
Data centres
1,294
—
1,294
322.8
146.4-398.1
5.5
5.1-5.7
Other uses of
industrial land
4
365
—
365
216.7
52.2-699.7
7.4
4.6-10.3
16,664
2,298
18,962
103.6
31.3-699.7
5.5
4.5-10.3
By ownership
Wholly-owned
5
13,782
2,138
15,920
148.1
31.3-699.7
5.4
4.5-10.3
Joint ventures
2,882
160
3,042
63.2
37.6-263.7
5.7
4.5-7.3
Group total
16,664
2,298
18,962
103.6
31.3-699.7
5.5
4.5-10.3
1 Land and development valuations by asset type are not available as land sites are not categorised by asset type. Combined
property portfolio column will not cast down but row does cast across.
2 On a fully occupied basis.
3 In relation to the completed properties only.
4 Other uses of industrial land includes offices and retail uses, such as trade counters, car showrooms and self-storage facilities.
5 Included in the completed portfolio, the wholly-owned assets are: big box £2,995 million; urban warehouses £9,130 million; data
centres £1,294 million; and other uses of industrial land £363 million.
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Overview Strategic Report Governance Financial Statements Further Information
Notes to the Financial Statements continued
For the year ended 31 December 2025
25. Property Valuation Techniques, Sustainability and Climate Change
Considerations and Related Quantitative Information continued
Sensitivity analysis continued
Valuation
Inputs
Net true
Combined Net true equivalent
Land &
property
ERV
1
equivalent yield
2025
Completed
development
portfolio £ per sq
ERV range
1
yield
2
range
2
By geography
 £m
£m
 £m m £ per sq m % %
UK
10,463
1,321
11,784
199.0
45.0-699.7
5.4
4.5-10.3
CE
6,201
977
7,178
69.5
31.3-261.0
5.6
4.5-9.7
Group total
16,664
2,298
18,962
103.6
31.3-699.7
5.5
4.5-10.3
Investment
properties – Group
(Note 13)
3
 15,918
Investment
properties – Joint
ventures (Note 7(ii))
 3,042
Trading properties –
Group
4
 2
Group total
 18,962
1 On a fully occupied basis.
2 In relation to the completed properties only.
3 Excludes head lease ROU assets of £80 million.
4 Includes valuation surplus not recognised on trading properties of £1 million.
Valuation
Inputs
Combined Net true Net true
Land &
property equivalent equivalent
2024
Completed
development
1
portfolio
ERV
2
ERV range
2
yield
3
yield range
3
By asset type
 £m
£m
 £m £ per sq m £ per sq m % %
Big box warehouses
5,050
—
5,050
64.8
33.1–204.5
5.6
4.6–7.2
Urban warehouses
8,759
—
8,759
166.0
25.0–395.6
5.2
4.4–9.7
Data centres
1,284
—
1,284
306.5
146.4–387.4
5.4
4.6–5.6
Other uses of
industrial land
4
360
—
360
215.3
49.6–645.8
7.4
4.5–11.8
15,453
2,317
17,770
99.9
25.0–645.8
5.4
4.4–11.8
By ownership
Wholly-owned
5
13,015
2,229
15,244
143.1
25.0–645.8
5.3
4.4–11.8
Joint ventures
2,438
88
2,526
58.4
35.7–314.8
5.6
4.6–7.2
Group total
15,453
2,317
17,770
99.9
25.0–645.8
5.4
4.4–11.8
1 Land and development valuations by asset type are not available as land sites are not categorised by asset type. Combined
property portfolio column will not cast down but row does cast across.
2 On a fully occupied basis.
3 In relation to the completed properties only.
4 Other uses of industrial land includes offices and retail uses, such as trade counters, car showrooms and self-storage facilities.
5 Included in the completed portfolio, the wholly-owned assets are: big box £2,702 million; urban warehouses £8,672 million; data
centres £1,284 million; and other uses of industrial land £357 million.
Valuation
Inputs
Combined Net true Net true
Land &
property equivalent equivalent
2024
Completed
development
portfolio
ERV
1
ERV range
1
yield
2
yield range
2
By geography
 £m
£m
 £m £ per sq m £ per sq m % %
UK
10,039
1,452
11,491
195.8
45.0–645.8
5.3
4.5–11.8
CE
5,414
865
6,279
64.5
25.0–248.1
5.6
4.4–9.7
Group total
15,453
2,317
17,770
99.9
25.0–645.8
5.4
4.4–11.8
Investment
properties –
Group (Note 13)
3
 15,236
Investment
properties –
Joint ventures
(Note 7(ii))
 2,526
Trading
properties –
Group
4
 8
Group total
 17,770
1 On a fully occupied basis.
2 In relation to the completed properties only.
3 Excludes head lease ROU assets of £67 million.
4 Includes valuation surplus not recognised on trading properties of £2 million.
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SEGRO plc Annual Report & Accounts 2025
Overview Strategic Report Governance Financial Statements Further Information
Notes to the Financial Statements continued
For the year ended 31 December 2025
26. Related Undertakings
A list of the Group’s related undertakings as at 31 December 2025 is detailed below. Except where
the Group’s percentage holdings is disclosed below, the entire share capital of the subsidiary
undertaking is held by the Group. Unless otherwise stated, the Group’s holding in the subsidiary
undertaking comprise ordinary shares. Where subsidiaries have different classes of shares, the
percentage effective holding shown represents both the Group’s voting rights and equity holding.
All subsidiaries are consolidated in the Group’s Financial Statements. The Group’s related
undertakings also includes its joint ventures, which is primarily SELP.
Audit exemption taken for subsidiaries
Certain UK subsidiaries are exempt from the requirement of the Companies Act 2006 (the Act)
relating to the audit of individual accounts by virtue of Section 479A of the Act. These subsidiaries
are identified with two asterisks (**) on the table below.
Certain UK partnerships are exempt from the requirement to prepare, publish and have audited
individual accounts by virtue of regulation 7 of The Partnership (Accountants) Regulations 2008.
The results of these partnerships are consolidated within the Group accounts and are identified
with three asterisks (***) on the table below.
% effective
holding if
Direct/
Company Name
Jurisdiction
not 100%
Indirect
Registered Office
Airport Property GP (No. 2)
England and
Indirect
1 New Burlington Place, London,
Limited**
Wales
W1S 2HR, United Kingdom
Airport Property H1 Limited**
England and
Indirect
1 New Burlington Place, London,
Wales
W1S 2HR, United Kingdom
Airport Property Partnership***
,3
England and
Indirect
1 New Burlington Place, London,
Wales
W1S 2HR, United Kingdom
Allnatt London Properties Limited**
England and
Direct
1 New Burlington Place, London,
Wales
W1S 2HR, United Kingdom
Amdale Holdings Limited NV
Belgium
Indirect
Boulevard Louis Schmidt 87,
1040
Etterbeek, Belgium
Beira Investments Sp z.o.o.
Poland
Indirect
Pl. Andersa 3, 61-894 Poznań,
Poland
Bilton Homes Limited
2
England and
Indirect
1 New Burlington Place, London,
Wales
W1S 2HR, United Kingdom
Bilton Limited**
England and
Direct
1 New Burlington Place, London,
Wales
W1S 2HR, United Kingdom
Bonsol S.R.L.
Italy
Indirect
Strada 3 Palazzo B3, 20057
Assago Milanofiori, Milan, Italy
Brixton (Axis Park) Limited**
England and
Indirect
1 New Burlington Place, London,
Wales
W1S 2HR, United Kingdom
Brixton (Great Western, Southall)
England and
Indirect
1 New Burlington Place, London,
Limited**
Wales
W1S 2HR, United Kingdom
Brixton (Hatton Cross) 1 Limited**
England and
Indirect
1 New Burlington Place, London,
Wales
W1S 2HR, United Kingdom
% effective
holding if
Direct/
Company Name
Jurisdiction
not 100%
Indirect
Registered Office
Brixton (Metropolitan Park) 1
England and
Indirect
1 New Burlington Place, London,
Limited**
Wales
W1S 2HR, United Kingdom
Brixton (Origin) Limited**
England and
Indirect
1 New Burlington Place, London,
Wales
W1S 2HR, United Kingdom
Brixton Asset Management UK
England and
Indirect
1 New Burlington Place, London,
Limited**
Wales
W1S 2HR, United Kingdom
Brixton Greenford Park Limited**
England and
Indirect
1 New Burlington Place, London,
Wales
W1S 2HR, United Kingdom
Brixton Limited**
England and
Direct
1 New Burlington Place, London,
Wales
W1S 2HR, United Kingdom
Brixton Nominee 8 (Jersey) Limited
Jersey
Indirect
3rd Floor, One The Esplanade,
St Helier, JE2 3QA, Jersey
Brixton Nominee 9 (Jersey) Limited
Jersey
Indirect
3rd Floor, One The Esplanade,
St Helier, JE2 3QA, Jersey
Brixton Nominee 26 (Jersey)
Jersey
Indirect
3rd Floor, One The Esplanade,
Limited
St Helier, JE2 3QA, Jersey
Brixton Nominee 27 (Jersey)
Jersey
Indirect
3rd Floor, One The Esplanade,
Limited
St Helier, JE2 3QA, Jersey
Brixton Nominee 38 (Jersey)
Jersey
Indirect
3rd Floor, One The Esplanade,
Limited
St Helier, JE2 3QA, Jersey
Brixton Nominee 39 (Jersey)
Jersey
Indirect
3rd Floor, One The Esplanade,
Limited
St Helier, JE2 3QA, Jersey
Brixton Nominee 40 (Jersey)
Jersey
Indirect
3rd Floor, One The Esplanade,
Limited
St Helier, JE2 3QA, Jersey
Brixton Nominee 41 (Jersey) Limited
Jersey
Indirect
3rd Floor, One The Esplanade,
St Helier, JE2 3QA, Jersey
Brixton Nominee Axis Park 1 Limited
Jersey
Indirect
3rd Floor, One The Esplanade,
St Helier, JE2 3QA, Jersey
Brixton Nominee Axis Park 2
Jersey
Indirect
3rd Floor, One The Esplanade,
Limited
St Helier, JE2 3QA, Jersey
Brixton Nominee Polar Park 1
Jersey
Indirect
3rd Floor, One The Esplanade,
Limited
St Helier, JE2 3QA, Jersey
Brixton Nominee Polar Park 2
Jersey
Indirect
3rd Floor, One The Esplanade,
Limited
St Helier, JE2 3QA, Jersey
Brixton Nominee Premier Park 1
Jersey
Indirect
3rd Floor, One The Esplanade,
Limited
St Helier, JE2 3QA, Jersey
Brixton Nominee Premier Park 2
Jersey
Indirect
3rd Floor, One The Esplanade,
Limited
St Helier, JE2 3QA, Jersey
Brixton Premier Park Limited**
England and
Indirect
1 New Burlington Place, London,
Wales
W1S 2HR, United Kingdom
173
|
SEGRO plc Annual Report & Accounts 2025
Overview Strategic Report Governance Financial Statements Further Information
Notes to the Financial Statements continued
For the year ended 31 December 2025
% effective
holding if
Direct/
Company Name
Jurisdiction
not 100%
Indirect
Registered Office
Brixton Properties Limited**
England and
Indirect
1 New Burlington Place, London ,
Wales
W1S 2HR, United Kingdom
Brixton Sub-Holdings Limited**
England and
Indirect
1 New Burlington Place, London ,
Wales
W1S 2HR, United Kingdom
Coventry & Warwickshire
England and
Indirect
Two Friargate, Station Square,
Development Partnership LLP
3
Wales
Coventry, England, CV1 2GN
CWDP Investment Limited**
England and
Indirect
Two Friargate, Station Square,
Wales
Coventry, England, CV1 2GN
Dagenham Park Management
England and
Indirect
1 New Burlington Place, London ,
Company Limited**
,4,8
Wales
W1S 2HR, United Kingdom
De Hoek-Noord S-Park B.V.
Netherlands
Indirect
Gustav Mahlerplein 62,
ITO-toren, 8th Floor, 1082MA
Amsterdam, Netherlands
Devon Nominees (No. 1) Limited
2
England and
Indirect
1 New Burlington Place, London ,
Wales
W1S 2HR, United Kingdom
Devon Nominees (No. 2) Limited
2
England and
Indirect
1 New Burlington Place, London ,
Wales
W1S 2HR, United Kingdom
Devon Nominees (No. 3) Limited
2
England and
Indirect
1 New Burlington Place, London ,
Wales
W1S 2HR, United Kingdom
ER 3 S.R.L.
Italy
Indirect
Strada 3 Palazzo B3, 20057
Assago Milanofiori, Milan, Italy
Gateway Rugby Management
England and
Indirect
1 New Burlington Place, London ,
Company Limited**
,4
Wales
W1S 2HR, United Kingdom
Granby Investment Sp. z.o.o.
Poland
Indirect
ul. Marszałkowska 126/134,
00-008 Warszawa
Gront Four s.r.o.
Czech
Indirect
Praha 1, Na příkopě 393/11,
Republic
Staré Město, PSČ 110 00,
Czech Republic
Hatton Farm Estates Limited**
England and
Indirect
1 New Burlington Place, London ,
Wales
W1S 2HR, United Kingdom
Helios Northern Limited**
England and
Indirect
1 New Burlington Place, London ,
Wales
W1S 2HR, United Kingdom
HelioSlough Limited**
England and
Indirect
1 New Burlington Place, London ,
Wales
W1S 2HR, United Kingdom
Holbury Investments Sp. z.o.o.
Poland
Indirect
Pl. Andersa 3, 61-894 Poznań,
Poland
IFP S.R.L.
Italy
Indirect
Strada 3 Palazzo B3, 20057
Assago Milanofiori, Milan, Italy
IMPIANTI FTV S.R.L.
Italy
Indirect
Strada 3 Palazzo B3, 20057
Assago Milanofiori, Milan, Italy
% effective
holding if
Direct/
Company Name
Jurisdiction
not 100%
Indirect
Registered Office
Karnal Investment Sp z.o.o.
Poland
Indirect
ul. Marszałkowska 126/134,
00-008 Warszawa
London Distribution Park No.2 LLP
3
England and
50%
Indirect
1 New Burlington Place, London,
Wales
W1S 2HR, United Kingdom
Lynford Investments Sp z.o.o.
Poland
Indirect
ul. Marszałkowska 126/134,
00-008 Warszawa
Nichelino DC S.R.L.
Italy
Indirect
Strada 3 Palazza, B3 20057,
Assago Milanofiori, Milan, Italy
Ożarów Biznes Park Sp.z.o.o
Poland
Indirect
Pl. Andersa 3, 61-894 Poznań,
Poland
Pilsen One s.r.o
Czech
Indirect
Praha 1, Na příkopě 393/11,
Republic
Staré Město, PSČ 110 00, Czech
Republic
Premier Greenford GP Limited
2,5
England and
Indirect
1 New Burlington Place, London,
Wales
W1S 2HR, United Kingdom
Property Management Company
England and
72%
Indirect
1 New Burlington Place, London,
(Croydon) Limited
Wales
W1S 2HR, United Kingdom
Reprendre Racines SAS
France
Indirect
20 rue Brunel, 75017 Paris,
France
Roxhill Management Rugby
England and
Indirect
1 New Burlington Place, London,
Limited**
Wales
W1S 2HR, United Kingdom
San Colombano DC S.R.L.
Italy
Indirect
Strada 3 Palazza, B3 20057,
Assago Milanofiori, Milan, Italy
SEGRO (225 Bath Road) Limited**
England and
Indirect
1 New Burlington Place, London,
Wales
W1S 2HR, United Kingdom
SEGRO (Acton Park Estate)
England and
Indirect
1 New Burlington Place, London,
Limited**
Wales
W1S 2HR, United Kingdom
SEGRO (BA World Cargo) Limited**
England and
Indirect
1 New Burlington Place, London,
Wales
W1S 2HR, United Kingdom
SEGRO (Barking 1) Limited**
England and
Indirect
1 New Burlington Place, London,
Wales
W1S 2HR, United Kingdom
SEGRO (Barking 2) Limited**
England and
Indirect
1 New Burlington Place, London,
Wales
W1S 2HR, United Kingdom
SEGRO (Barking 3) Limited**
England and
Indirect
1 New Burlington Place, London,
Wales
W1S 2HR, United Kingdom
SEGRO (Barking) Limited**
England and
Indirect
1 New Burlington Place, London,
Wales
W1S 2HR, United Kingdom
SEGRO (Beddington Lane)
England and
Indirect
1 New Burlington Place, London,
Limited**
Wales
W1S 2HR, United Kingdom
SEGRO (Belvedere Estate)
England and
Indirect
1 New Burlington Place, London,
Limited**
Wales
W1S 2HR, United Kingdom
174
|
SEGRO plc Annual Report & Accounts 2025
Overview Strategic Report Governance Financial Statements Further Information
Notes to the Financial Statements continued
For the year ended 31 December 2025
% effective
holding if
Direct/
Company Name
Jurisdiction
not 100%
Indirect
Registered Office
SEGRO (Birmingham) Limited**
England and
Indirect
1 New Burlington Place, London,
Wales
W1S 2HR, United Kingdom
SEGRO (Blanc Mesnil) SARL
France
Indirect
20 Rue Brunel, 75017, Paris,
France
SEGRO (Bonded Stores) Limited**
England and
Indirect
1 New Burlington Place, London,
Wales
W1S 2HR, United Kingdom
SEGRO (Brackmills) Limited**
England and
Indirect
1 New Burlington Place, London,
Wales
W1S 2HR, United Kingdom
SEGRO (Bracknell) Limited**
England and
Indirect
1 New Burlington Place, London,
Wales
W1S 2HR, United Kingdom
SEGRO (Clapham North) Limited**
England and
Indirect
1 New Burlington Place, London,
Wales
W1S 2HR, United Kingdom
SEGRO (Colnbrook) Limited**
England and
Indirect
1 New Burlington Place, London,
Wales
W1S 2HR, United Kingdom
SEGRO (Coronation Road)
England and
Indirect
1 New Burlington Place, London,
Limited**
Wales
W1S 2HR, United Kingdom
SEGRO (Coventry Gateway
England and
Indirect
1 New Burlington Place, London,
Management Company) Limited**
Wales
W1S 2HR, United Kingdom
SEGRO (Coventry M6 J2) Limited
England and
Indirect
Two Friargate, Station Square,
Wales
Coventry, England, CV1 2GN
SEGRO (Coventry) Limited**
England and
Indirect
Two Friargate, Station Square,
Wales
Coventry, England, CV1 2GN
SEGRO (Dagenham) Limited**
England and
Indirect
1 New Burlington Place, London,
Wales
W1S 2HR, United Kingdom
SEGRO (Deptford Trading Estate)
England and
Indirect
1 New Burlington Place, London,
Limited**
Wales
W1S 2HR, United Kingdom
SEGRO (D-Link House) Limited**
England and
Indirect
1 New Burlington Place, London,
Wales
W1S 2HR, United Kingdom
SEGRO (East Plus) Limited**
England and
Indirect
1 New Burlington Place, London,
Wales
W1S 2HR, United Kingdom
SEGRO (East Plus) Trading
England and
Indirect
1 New Burlington Place, London,
Limited**
Wales
W1S 2HR, United Kingdom
SEGRO (Electra Park) Limited**
England and
Indirect
1 New Burlington Place, London,
Wales
W1S 2HR, United Kingdom
SEGRO (EMG) Limited
England and
Indirect
1 New Burlington Place, London,
Wales
W1S 2HR, United Kingdom
SEGRO (EMG Management
England and
82%
Indirect
1 New Burlington Place, London,
Company) Limited**,
5
Wales
W1S 2HR, United Kingdom
SEGRO (EMG Plot 5) Limited**
England and
Indirect
1 New Burlington Place, London,
Wales
W1S 2HR, United Kingdom
% effective
holding if
Direct/
Company Name
Jurisdiction
not 100%
Indirect
Registered Office
SEGRO (EMG Rail Freight Terminal)
England and
Indirect
1 New Burlington Place, London,
Limited**
Wales
W1S 2HR, United Kingdom
SEGRO (EMG Unit 1) Limited**
England and
Indirect
1 New Burlington Place, London,
Wales
W1S 2HR, United Kingdom
SEGRO (EMG Unit 2) Limited**
England and
Indirect
1 New Burlington Place, London,
Wales
W1S 2HR, United Kingdom
SEGRO (EMG Unit 4) Limited**
England and
Indirect
1 New Burlington Place, London,
Wales
W1S 2HR, United Kingdom
SEGRO (EMG Unit 8) Limited**
England and
Indirect
1 New Burlington Place, London,
Wales
W1S 2HR, United Kingdom
SEGRO (EMG Unit 11) Limited**
England and
Indirect
1 New Burlington Place, London,
Wales
W1S 2HR, United Kingdom
SEGRO (EMG Unit 12) Limited**
England and
Indirect
1 New Burlington Place, London,
Wales
W1S 2HR, United Kingdom
SEGRO (Faggs Road) Limited**
England and
Indirect
1 New Burlington Place, London,
Wales
W1S 2HR, United Kingdom
SEGRO (Fairways Industrial Estate)
England and
Indirect
1 New Burlington Place, London,
Limited**
Wales
W1S 2HR, United Kingdom
SEGRO (Gatwick) Limited**
England and
Indirect
1 New Burlington Place, London,
Wales
W1S 2HR, United Kingdom
SEGRO (GL) Limited**
England and
Indirect
1 New Burlington Place, London,
Wales
W1S 2HR, United Kingdom
SEGRO (Grange Park) Limited**
England and
Indirect
1 New Burlington Place, London,
Wales
W1S 2HR, United Kingdom
SEGRO (Great Cambridge
England and
Indirect
1 New Burlington Place, London,
Industrial Estate) Limited**
Wales
W1S 2HR, United Kingdom
SEGRO (Grendon) 1 Limited**
England and
Indirect
1 New Burlington Place, London,
Wales
W1S 2HR, United Kingdom
SEGRO (Hatton Farm Site A)
England and
Indirect
1 New Burlington Place, London,
Limited**
Wales
W1S 2HR, United Kingdom
SEGRO (Hatton Farm Site B)
England and
Indirect
1 New Burlington Place, London,
Limited**
Wales
W1S 2HR, United Kingdom
SEGRO (Hatton Farm Site C)
England and
Indirect
1 New Burlington Place, London,
Limited**
Wales
W1S 2HR, United Kingdom
SEGRO (Hayes) Limited**
England and
Indirect
1 New Burlington Place, London,
Wales
W1S 2HR, United Kingdom
SEGRO (Heathrow Cargo Area)
England and
Indirect
1 New Burlington Place, London,
Limited**
Wales
W1S 2HR, United Kingdom
SEGRO (Heathrow International)
England and
Indirect
1 New Burlington Place, London,
Limited**
Wales
W1S 2HR, United Kingdom
175
|
SEGRO plc Annual Report & Accounts 2025
Overview Strategic Report Governance Financial Statements Further Information
Notes to the Financial Statements continued
For the year ended 31 December 2025
% effective
holding if
Direct/
Company Name
Jurisdiction
not 100%
Indirect
Registered Office
SEGRO (Iver 1) Limited**
England and
Indirect
1 New Burlington Place, London,
Wales
W1S 2HR, United Kingdom
SEGRO (Junction 15) Limited
England and
Indirect
Two Friargate, Station Square,
Wales
Coventry, England, CV1 2GN
SEGRO (Kettering) Limited**
England and
Indirect
1 New Burlington Place, London,
Wales
W1S 2HR, United Kingdom
SEGRO (Lee Park Distribution)
England and
Indirect
1 New Burlington Place, London,
Limited**
Wales
W1S 2HR, United Kingdom
SEGRO (New Cross Business
England and
Indirect
1 New Burlington Place, London,
Centre) Limited**
Wales
W1S 2HR, United Kingdom
SEGRO (Newport Pagnell) Limited**
England and
Indirect
1 New Burlington Place, London,
Wales
W1S 2HR, United Kingdom
SEGRO (NFTE & Mercury) Limited**
England and
Indirect
1 New Burlington Place, London,
Wales
W1S 2HR, United Kingdom
SEGRO (Northampton Gateway
England and
Indirect
1 New Burlington Place, London,
Management Company) Limited
2
Wales
W1S 2HR, United Kingdom
SEGRO (Parc des Damiers) SAS
France
Indirect
20 Rue Brunel, 75017, Paris,
France
SEGRO (Perivale Park) Limited**
England and
Indirect
1 New Burlington Place, London,
Wales
W1S 2HR, United Kingdom
SEGRO (Plot 4 Northampton)
England and
Indirect
1 New Burlington Place, London,
Limited
Wales
W1S 2HR, United Kingdom
SEGRO (Plot 7 Northampton)
England and
Indirect
1 New Burlington Place, London,
Limited**
Wales
W1S 2HR, United Kingdom
SEGRO (Plot 9 SmartParc) Limited
2
England and
Indirect
1 New Burlington Place, London,
Wales
W1S 2HR, United Kingdom
SEGRO (Poyle 14) Limited**
England and
Indirect
1 New Burlington Place, London,
Wales
W1S 2HR, United Kingdom
SEGRO (Purfleet) Limited**
England and
Indirect
1 New Burlington Place, London,
Wales
W1S 2HR, United Kingdom
SEGRO (Radlett) Limited
England and
Indirect
1 New Burlington Place, London,
Wales
W1S 2HR, United Kingdom
SEGRO (Rainham 1) Limited**
England and
Indirect
1 New Burlington Place, London,
Wales
W1S 2HR, United Kingdom
SEGRO (Rainham 2) Limited**
England and
Indirect
1 New Burlington Place, London,
Wales
W1S 2HR, United Kingdom
SEGRO (Rainham, Enterprise 1)
England and
Indirect
1 New Burlington Place, London,
Limited**
Wales
W1S 2HR, United Kingdom
SEGRO (Rainham, Enterprise 2)
England and
Indirect
1 New Burlington Place, London,
Limited**
Wales
W1S 2HR, United Kingdom
% effective
holding if
Direct/
Company Name
Jurisdiction
not 100%
Indirect
Registered Office
SEGRO (Reading) Limited
5
,
6
England and
Indirect
1 New Burlington Place, London,
Wales
W1S 2HR, United Kingdom
SEGRO (Rockware Avenue)
England and
Indirect
1 New Burlington Place, London,
Limited**
Wales
W1S 2HR, United Kingdom
SEGRO (Rugby Gateway 1)
England and
Indirect
1 New Burlington Place, London,
Limited**
Wales
W1S 2HR, United Kingdom
SEGRO (Rugby Gateway 2)
England and
Indirect
1 New Burlington Place, London,
Limited**
Wales
W1S 2HR, United Kingdom
SEGRO (Rugby Gateway 3)
England and
Indirect
1 New Burlington Place, London,
Limited**
Wales
W1S 2HR, United Kingdom
SEGRO (Rugby Gateway 4)
England and
Indirect
1 New Burlington Place, London,
Limited**
Wales
W1S 2HR, United Kingdom
SEGRO (Rugby Gateway 5)
England and
Indirect
1 New Burlington Place, London,
Limited**
Wales
W1S 2HR, United Kingdom
SEGRO (Skyline) Limited**
England and
Indirect
1 New Burlington Place, London,
Wales
W1S 2HR, United Kingdom
SEGRO (Spacewaye Park) Limited**
England and
Indirect
1 New Burlington Place, London,
Wales
W1S 2HR, United Kingdom
SEGRO (Spain Energy) S.L.
Spain
Indirect
Avenida Diagonal, 467 – 08036,
Barcelona, Spain
SEGRO (Stansted Cargo) Limited**
England and
Indirect
1 New Burlington Place, London,
Wales
W1S 2HR, United Kingdom
SEGRO (Stansted Fedex) Limited**
England and
Indirect
1 New Burlington Place, London,
Wales
W1S 2HR, United Kingdom
SEGRO (The Portal) Limited**
England and
Indirect
1 New Burlington Place, London,
Wales
W1S 2HR, United Kingdom
SEGRO (Tilbury 2) Limited**
England and
Indirect
1 New Burlington Place, London,
Wales
W1S 2HR, United Kingdom
SEGRO (Tottenham) Limited**
England and
Indirect
1 New Burlington Place, London,
Wales
W1S 2HR, United Kingdom
SEGRO (Tudor) Limited**
England and
Indirect
1 New Burlington Place, London,
Wales
W1S 2HR, United Kingdom
SEGRO (UK Energy) Limited**
England and
Indirect
1 New Burlington Place, London,
Wales
W1S 2HR, United Kingdom
SEGRO (Victoria Industrial Estate)
England and
Indirect
1 New Burlington Place, London,
Limited**
Wales
W1S 2HR, United Kingdom
SEGRO (Waltham Assets) Limited**
England and
Indirect
1 New Burlington Place, London,
Wales
W1S 2HR, United Kingdom
SEGRO (Wapping) Limited**
England and
Indirect
1 New Burlington Place, London,
Wales
W1S2HR, United Kingdom
176
|
SEGRO plc Annual Report & Accounts 2025
Overview Strategic Report Governance Financial Statements Further Information
Notes to the Financial Statements continued
For the year ended 31 December 2025
% effective
holding if
Direct/
Company Name
Jurisdiction
not 100%
Indirect
Registered Office
SEGRO (Watchmoor) Limited**
England and
Indirect
1 New Burlington Place, London ,
Wales
W1S 2HR, United Kingdom
SEGRO (Welham Green) Limited**
England and
Indirect
1 New Burlington Place, London ,
Wales
W1S 2HR, United Kingdom
SEGRO (Westway Estate) Limited**
England and
Indirect
1 New Burlington Place, London ,
Wales
W1S 2HR, United Kingdom
SEGRO Achtzehnte Grundbesitz
Germany
Indirect
Fichtenstrasse 33, 40233,
GmbH
Düsseldorf, Germany
SEGRO Administration Limited
England and
Direct
1 New Burlington Place, London ,
Wales
W1S 2HR, United Kingdom
SEGRO Advisory Services S.R.L.
Italy
Indirect
Strada 3 Palazzo B3, 20057
Assago Milanofiori, Milan, Italy
SEGRO APP 1 Limited**
England and
Indirect
1 New Burlington Place, London ,
Wales
W1S 2HR, United Kingdom
SEGRO APP 2 Limited**
England and
Indirect
1 New Burlington Place, London ,
Wales
W1S 2HR, United Kingdom
SEGRO APP 3 Limited**
England and
Indirect
1 New Burlington Place, London ,
Wales
W1S 2HR, United Kingdom
SEGRO APP 4 Limited**
England and
Indirect
1 New Burlington Place, London ,
Wales
W1S 2HR, United Kingdom
SEGRO APP Management Limited**
England and
Indirect
1 New Burlington Place, London ,
Wales
W1S 2HR, United Kingdom
SEGRO Asset Management
England and
Indirect
1 New Burlington Place, London ,
Limited**
Wales
W1S 2HR, United Kingdom
SEGRO B.V.
Netherlands
Indirect
Gustav Mahlerplein 62, ITO-
toren, 8th Floor, 1082MA
SEGRO Belgium NV
Belgium
Indirect
Boulevard Louis Schmidt 87,
1040
Etterbeek, Belgium
SEGRO Benelux 2 B.V.
Netherlands
Indirect
Gustav Mahlerplein 62, ITO-
toren, 8th Floor, 1082MA
SEGRO Benelux B.V.
7
Netherlands
Indirect
Gustav Mahlerplein 62, ITO-
toren, 8th Floor, 1082MA
SEGRO Bobigny SCI
France
Indirect
20 Rue Brunel, 75017, Paris,
France
SEGRO Bourget
France
Indirect
20 Rue Brunel, 75017, Paris,
France
SEGRO Capital S.á r.l.
Luxembourg
Indirect
35-37 Avenue de la Liberté,
L-1931,
Luxembourg
SEGRO CHUSA Limited**
England and
Indirect
1 New Burlington Place, London ,
Wales
W1S 2HR, United Kingdom
% effective
holding if
Direct/
Company Name
Jurisdiction
not 100%
Indirect
Registered Office
SEGRO CL1 SCI
France
Indirect
20 Rue Brunel, 75017, Paris,
France
SEGRO Croydon (Mitcham)
England and
Indirect
1 New Burlington Place, London,
Limited**
Wales
W1S 2HR, United Kingdom
SEGRO Czech Republic s.r.o.
Czech
Indirect
Praha 1, Na příkopě 393/11,
Republic
Staré Město, PSČ 110 00, Czech
Republic
SEGRO Dortmund GmbH
Germany
Indirect
Fichtenstrasse 33, 40233,
Düsseldorf, Germany
SEGRO Dreiundzwanzigste
Germany
Indirect
Fichtenstrasse 33, 40233,
Grundbesitz GmbH
Düsseldorf, Germany
SEGRO Dritte Grundbesitz GmbH
Germany
Indirect
Fichtenstrasse 33, 40233,
Düsseldorf, Germany
SEGRO Eindhoven I B.V.
Netherlands
Indirect
2 Rue des Gaulois L-1618
Luxembourg
SEGRO Einundzwanzigste
Germany
Indirect
Fichtenstrasse 33, 40233,
Grundbesitz GmbH
Düsseldorf, Germany
SEGRO Elfte Grundbesitz GmbH
Germany
Indirect
Fichtenstrasse 33, 40233,
Düsseldorf, Germany
SEGRO Erste Grundbesitz GmbH
Germany
Indirect
Fichtenstrasse 33, 40233,
Düsseldorf, Germany
SEGRO European Logistics
Luxembourg
50%
Indirect
35-37 Avenue de la Liberté,
Partnership S.á r.l.
L-1931,
Luxembourg
SEGRO Finance Limited
England and
Direct
1 New Burlington Place, London,
Wales
W1S 2HR, United Kingdom
SEGRO Fixtures GmbH
Germany
Indirect
Fichtenstrasse 33, 40233,
Düsseldorf, Germany
SEGRO France Energy SAS
France
Indirect
20 Rue Brunel, 75017, Paris,
France
SEGRO France SA
France
Indirect
20 Rue Brunel, 75017, Paris,
France
SEGRO Fünfte Grundbesitz GmbH
Germany
Indirect
Fichtenstrasse 33, 40233,
Düsseldorf, Germany
SEGRO Fünfzehnte Grundbesitz
Germany
Indirect
Fichtenstrasse 33, 40233,
GmbH
Düsseldorf, Germany
SEGRO Gennevilliers SCI
France
Indirect
20 Rue Brunel, 75017, Paris,
France
SEGRO Germany GmbH
Germany
Indirect
Fichtenstrasse 33, 40233,
Düsseldorf, Germany
SEGRO Gobelins SCI
France
Indirect
20 Rue Brunel, 75017, Paris,
France
177
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Overview Strategic Report Governance Financial Statements Further Information
Notes to the Financial Statements continued
For the year ended 31 December 2025
% effective
holding if
Direct/
Company Name
Jurisdiction
not 100%
Indirect
Registered Office
SEGRO Heerlen I B.V.
Netherlands
Indirect
Gustav Mahlerplein 62, 1082MA,
Amsterdam, Netherlands
SEGRO Holdings France SAS
France
Indirect
20 Rue Brunel, 75017, Paris,
France
SEGRO Industrial Estates Limited**
England and
Indirect
1 New Burlington Place, London,
Wales
W1S 2HR, United Kingdom
SEGRO Insurance Limited
Isle of Man
Direct
Third Floor, St George’s Court,
Upper Church Street, Douglas,
SEGRO Investments Limited**
England and
Indirect
1 New Burlington Place, London,
Wales
W1S 2HR, United Kingdom
SEGRO Investments Spain S.L.
Spain
Direct
Avenida Diagonal, 467 – 08036,
Barcelona, Spain
SEGRO Italy S.R.L
Italy
Indirect
Strada 3 Palazzo B3, 20057
Assago Milanofiori, Milan, Italy
SEGRO Italy ER 1 S.R.L.
Italy
Indirect
Strada 3 Palazzo B3, 20057
Assago Milanofiori, Milan, Italy
SEGRO Italy ER 2 S.R.L.
Italy
Indirect
Strada 3 Palazzo B3, 20057
Assago Milanofiori, Milan, Italy
SEGRO Italy ER 4 S.R.L.
Italy
Indirect
Strada 3 Palazzo B3, 20057
Assago Milanofiori, Milan, Italy
SEGRO Italy ER 5 S.R.L.
Italy
Indirect
Strada 3 Palazzo B3, 20057
Assago Milanofiori, Milan, Italy
SEGRO Logistics Nord SCI
France
Indirect
20 Rue Brunel, 75017, Paris,
France
SEGRO Logistics Park Aulnay SCI
France
Indirect
20 Rue Brunel, 75017, Paris,
France
SEGRO Logistics Sud SCI
France
Indirect
20 Rue Brunel, 75017, Paris,
France
SEGRO Luge S.à r.l.
Luxembourg
Indirect
35 Avenue de la Liberté, L-1931,
Luxembourg
SEGRO Luxembourg S.à r.l.
Luxembourg
Indirect
35-37 Avenue de la Liberté,
L-1931,
Luxembourg
SEGRO Management NV
Belgium
Indirect
Boulevard Louis Schmidt 87,
1040
Etterbeek, Belgium
SEGRO Netherlands B.V.
Netherlands
Indirect
Gustav Mahlerplein 62, ITO-
toren, 8th Floor, 1082MA
SEGRO Netherlands Holding B.V.
Netherlands
Indirect
Gustav Mahlerplein 62, ITO-
toren, 8th Floor, 1082MS
SEGRO Netherlands Holding B.V.
England and
Indirect
1 New Burlington Place, London,
(UK branch)
Wales
W1S 2HR, United Kingdom
% effective
holding if
Direct/
Company Name
Jurisdiction
not 100%
Indirect
Registered Office
SEGRO Neunzehnte Grundbesitz
Germany
Indirect
Fichtenstrasse 33, 40233,
GmbH
Düsseldorf, Germany
SEGRO Oosterhout I B.V.
Netherlands
Indirect
Gustav Mahlerplein 62, 1082MA,
Amsterdam, Netherlands
SEGRO Overseas Holdings Limited
England and
Direct
1 New Burlington Place, London,
Wales
W1S 2HR, United Kingdom
SEGRO Parc des Petits Carreaux
France
Indirect
20 Rue Brunel, 75017, Paris,
France
SEGRO plc French Branch
France
Direct
20 Rue Brunel, 75017, Paris,
France
SEGRO Plessis SCI
France
Indirect
20 Rue Brunel, 75017, Paris,
France
SEGRO Poland Sp z.o.o.
Poland
Indirect
Pl. Andersa 3, 61-894 Poznań,
Poland
SEGRO Properties Limited
England and
Direct
1 New Burlington Place, London,
Wales
W1S 2HR, United Kingdom
SEGRO Properties Spain S.L.
Spain
Direct
Avenida Diagonal, 467 – 08036,
Barcelona, Spain
SEGRO Pure Premier Park Data
England and
50%
Indirect
5 Fleet Place, London, EC4M
Centre Limited
Wales
7RD
SEGRO Pure Premier Park Data
England and
50%
Indirect
5 Fleet Place, London, EC4M
Centre Holdings Limited
Wales
7RD
SEGRO Reisholz GmbH
Germany
Indirect
Fichtenstrasse 33, 40233,
Düsseldorf, Germany
SEGRO Rugby LLP***
,3
England and
Indirect
1 New Burlington Place, London,
Wales
W1S 2HR, United Kingdom
SEGRO Sechste Grundbesitz
Germany
Indirect
Fichtenstrasse 33, 40233,
GmbH
Düsseldorf, Germany
SEGRO Sechsundzwanzigste
Germany
Indirect
Fichtenstrasse 33, 40233,
Grundbesitz GmbH
Düsseldorf, Germany
SEGRO Sechzehnte Grundbesitz
Germany
Indirect
Fichtenstrasse 33, 40233,
GmbH
Düsseldorf, Germany
SEGRO Siebte Grundbesitz GmbH
Germany
Indirect
Fichtenstrasse 33, 40233,
Düsseldorf, Germany
SEGRO Siebzehnte Grundbesitz
Germany
Indirect
Fichtenstrasse 33, 40233,
GmbH
Düsseldorf, Germany
SEGRO Shelf I B.V.
Netherlands
Indirect
Gustav Mahlerplein 62, ITO-
toren, 8th Floor, 1082MS
SEGRO Slough Spare Limited**
England and
Indirect
1 New Burlington Place, London,
Wales
W1S 2HR, United Kingdom
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Notes to the Financial Statements continued
For the year ended 31 December 2025
% effective
holding if
Direct/
Company Name
Jurisdiction
not 100%
Indirect
Registered Office
SEGRO Spain Management S.L.
Spain
Indirect
Avenida Diagonal, 467 – 08036,
Barcelona, Spain
SEGRO Spain Spare 1 S.L.
Spain
Direct
Avenida Diagonal, 467 – 08036,
Barcelona, Spain
SEGRO Spain Spare 2 S.L.U
Spain
Direct
Avenida Diagonal, 467 – 08036,
Barcelona, Spain
SEGRO Spain Spare 3 S.L.
Spain
Direct
Avenida Diagonal, 467 – 08036,
Barcelona, Spain
SEGRO Spare 1 Limited**
England and
Indirect
1 New Burlington Place, London,
Wales
W1S 2HR, United Kingdom
SEGRO STE Limited
England and
Indirect
1 New Burlington Place, London,
Wales
W1S 2HR, United Kingdom
SEGRO Tilliers SCI
France
Indirect
20 Rue Brunel, 75017, Paris,
France
SEGRO Trading (France) SNC
France
Indirect
20 Rue Brunel, 75017, Paris,
France
SEGRO Urban Logistics LR1 SCI
France
Indirect
20 Rue Brunel, 75017, Paris,
France
SEGRO Urban Logistics MR1 SCI
France
Indirect
20 Rue Brunel, 75017, Paris,
France
SEGRO Urban Logistics PR1 SCI
France
Indirect
20 Rue Brunel, 75017, Paris,
France
SEGRO Urban Logistics PR2 SCI
France
Indirect
20 Rue Brunel, 75017, Paris,
France
SEGRO Urban Logistics PR3 SCI
France
Indirect
20 Rue Brunel, 75017, Paris,
France
SEGRO Vierte Grundbesitz GmbH
Germany
Indirect
Fichtenstrasse 33, 40233,
Düsseldorf, Germany
SEGRO Vierundzwanzigste
Germany
Indirect
Fichtenstrasse 33, 40233,
Grundbesitz GmbH
Düsseldorf, Germany
SEGRO V-Park Grand Union LLP
3
England and
50%
Indirect
1 New Burlington Place, London,
Wales
W1S 2HR, United Kingdom
SEGRO Wissous SCI
France
Indirect
20 Rue Brunel, 75017, Paris,
France
SEGRO Zwanzigste Grundbesitz
Germany
Indirect
Fichtenstrasse 33, 40233,
GmbH
Düsseldorf, Germany
SEGRO Zweite Grundbesitz GmbH
Germany
Indirect
Fichtenstrasse 33, 40233,
Düsseldorf, Germany
SEGRO Zweiundzwanzigste
Germany
Indirect
Fichtenstrasse 33, 40233,
Grundbesitz GmbH
Düsseldorf, Germany
% effective
holding if
Direct/
Company Name
Jurisdiction
not 100%
Indirect
Registered Office
SELP (Alpha Holdings) S.á r.l.
Luxembourg
50%
Indirect
2 Rue des Gaulois L-1618
Luxembourg
SELP (Alpha JV) S.á r.l.
Luxembourg
50%
Indirect
2 Rue des Gaulois L-1618
Luxembourg
SELP Finance S.á r.l.
Luxembourg
50%
Indirect
35-37 Avenue de la Liberté,
L-1931,
Luxembourg
SELP Investments S.á r.l.
Luxembourg
50%
Indirect
35-37 Avenue de la Liberté,
L-1931,
Luxembourg
SELP Management Limited
9
England and
Indirect
1 New Burlington Place, London,
Wales
W1S 2HR, United Kingdom
Slough Trading Estate Limited
England and
Direct
1 New Burlington Place, London,
Wales
W1S 2HR, United Kingdom
Smartparc SEGRO Spondon
England and
Indirect
1 New Burlington Place, London,
Limited
Wales
W1S 2HR, United Kingdom
Steamhouse Group Limited**
England and
Indirect
1 New Burlington Place, London,
Wales
W1S 2HR, United Kingdom
Tenedor S.R.L.
Italy
Indirect
Strada 3 Palazzo B3, 20057
Assago Milanofiori, Milan, Italy
The UK Logistics (Nominee 1)
England and
Indirect
1 New Burlington Place, London,
Limited
2
Wales
W1S 2HR, United Kingdom
The UK Logistics (Nominee 2)
England and
Indirect
1 New Burlington Place, London,
Limited
2
Wales
W1S 2HR, United Kingdom
The UK Logistics General Partner
England and
Indirect
1 New Burlington Place, London,
Limited**
Wales
W1S 2HR, United Kingdom
The UK Logistics Limited
England and
Indirect
1 New Burlington Place, London,
Partnership
3
Wales
W1S 2HR, United Kingdom
Trafford Park 1 Limited
Guernsey
Indirect
Ground Floor,Plaza House ,
Admiral Park , St Peter Port ,
UK Logistics Fund Unit Trust
Jersey
Indirect
44 Esplanade, St. Helier, JE4
9WG, Jersey
UK Logistics Properties No 1 Unit
Jersey
Indirect
44 Esplanade, St. Helier, JE4
Trust
9WG, Jersey
UK Logistics Properties No 2 Unit
Jersey
Indirect
44 Esplanade, St. Helier, JE4
Trust
9WG, Jersey
UK Logistics Trustees Limited
Jersey
Indirect
Ogier House, The Esplanade, St
Helier, JE4 9WG, Jersey
UK Property Unit Trust No. 41
Jersey
Indirect
47 Esplanade, St Helier, JE1
0BD, Jersey
UK Property Unit Trust No. 42
Jersey
Indirect
47 Esplanade, St Helier, JE1
0BD, Jersey
179
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Overview Strategic Report Governance Financial Statements Further Information
Notes to the Financial Statements continued
For the year ended 31 December 2025
% effective
holding if
Direct/
Company Name
Jurisdiction
not 100%
Indirect
Registered Office
UK Property Unit Trust No. 43
Jersey
Indirect
47 Esplanade, St Helier, JE1
0BD, Jersey
UK Property Unit Trust No. 44
Jersey
Indirect
47 Esplanade, St Helier, JE1
0BD, Jersey
UK Property Unit Trust No. 45
Jersey
Indirect
47 Esplanade, St Helier, JE1
0BD, Jersey
Unitair General Partner Limited**
England and
Indirect
1 New Burlington Place, London,
Wales
W1S 2HR, United Kingdom
Unitair Limited Partnership***
,3
England and
Indirect
1 New Burlington Place, London,
Wales
W1S 2HR, United Kingdom
Vailog France SCI
France
Indirect
20 Rue Brunel, 75017, Paris,
France
Vimercate DC S.R.L.
Italy
Indirect
Strada 3 Palazzo B3, 20057
Assago Milanofiori, Milan, Italy
Woodside GP Limited
2
England and
33.33%
Indirect
1 New Burlington Place, London,
Wales
W1S 2HR, United Kingdom
Zinc One S.R.L.
Italy
Indirect
Strada 3 Palazzo B3, 20057
Assago Milanofiori, Milan, Italy
Zinc Seven S.R.L
Italy
Indirect
Strada 3 Palazzo B3, 20057
Assago Milanofiori, Milan, Italy
Zinc Six S.R.L.
Italy
Indirect
Strada 3 Palazzo B3, 20057
Assago Milanofiori, Milan, Italy
1 Company is in liquidation as at 31 December 2025.
2 Company is entitled to exemption from audit under section 480 of the Companies Act 2006 relating to dormant companies.
3 Partnerships and Limited Liability Partnerships (LLPs) do not have a share capital and unless otherwise stated, the Group holds
100 per cent interest in these entities.
4 Companies limited by guarantee do not have a share capital and unless otherwise stated the Group holds 100 per cent interest
in these entities.
5 Ownership held in class A and B shares.
6 Ownership held in Ordinary and Deferred shares.
7 Ownership held in class G shares, K shares, S shares and Preference shares.
8 There are five external members of Dagenham Park Management Company Limited. All members are liable up to the value
of £1.00.
9 SELP Management Limited is an appointed representative of Langham Hall Fund Management LLP, which is authorised and
regulated by the Financial Conduct Authority.
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Overview Strategic Report Governance Financial Statements Further Information
Notes to the Financial Statements continued
For the year ended 31 December 2025
Supplementary Notes Not Part of Audited Financial Statements
Table 1: EPRA performance measures summary
2025
2024
Notes
£m Pence per share
£m Pence per share
EPRA earnings
Table 4
495 36.6
458 34.5
EPRA NTA
Table 5
12,537 925
12,287 907
EPRA NRV
Table 5
13,827 1,020
13,477 994
EPRA NDV
Table 5
12,590 929
12,354 912
EPRA LTV
Table 6
33.6%
30.6%
EPRA net initial yield
Table 7
4.2%
4.1%
EPRA topped-up net
initial yield
Table 7
4.6%
4.4%
EPRA vacancy rate
Table 8
5.1%
6.0%
EPRA cost ratio
(including vacant
property costs)
Table 9
20.4%
21.7%
EPRA cost ratio
(excluding vacant
property costs)
Table 9
17.5%
19.1%
(Adjustments set out in the EPRA BPR Guidelines that are not applicable and have a zero value are
not disclosed in the EPRA tables.)
Table 2: Income Statement, proportionally consolidated
Notes
2025
2024
Group
£m
Joint
ventures
£m
Total
£m
Group
£m
Joint
ventures
£m
Total
£m
Gross rental income
2,7
637 142 779
592 137 729
Property operating expenses
2,7
(94) (10) (104)
(92) (9) (101)
Net rental income
543 132 675
500 128 628
Joint venture management fee
income
1
2,7
25 (12) 13
26 (12) 14
Management and development fee
income
2,7
3 2 5
6 2 8
Net service charge and other
income
2,7
1 — 1
(1) — (1)
Administrative expenses
2,7
(73) (3) (76)
(76) (2) (78)
Adjusted operating profit before
interest and tax
499 119 618
455 116 571
Net finance costs (including
adjustments)
2,7
(68) (26) (94)
(68) (22) (90)
Adjusted profit before tax
431 93 524
387 94 481
Tax on Adjusted profit
2,7
(14) (15) (29)
(12) (11) (23)
Adjusted/EPRA earnings after tax
417 78 495
375 83 458
Number of shares, million
12
1,352.5
1,328.7
Adjusted/EPRA EPS, pence per
share
36.6
34.5
Number of shares, million
12
1,355.3
1,332.0
Adjusted/EPRA EPS, pence per
share – diluted
36.5
34.4
1 Joint venture management fee income includes the cost of such fees borne by the joint ventures, which is shown in Note 7(i)
within net rental income.
2 Group net debt : EBITDA ratio as defined in the glossary was 8.4 times at 31 December 2025 (2024: 8.6 times). Group net debt
being£4,840 million (2024: £4,244 million), per Note 16. Group EBITDA being £579 million (2024: £496 million), which takes
Adjusted operating profit before interest and tax, less share of joint ventures’ Adjusted profit, of £499 million (2024: £455 million)
shown in the table above, adding back depreciation and amortisation charges of £17 million (2024: £12 million) and includes
dividends received from joint ventures of £63 million (2024: £29 million).
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Overview Strategic Report Governance Financial Statements Further Information
Notes to the Financial Statements continued
For the year ended 31 December 2025
Supplementary Notes Not Part of Audited Financial Statements continued
Table 3: Balance Sheet, proportionally consolidated
Notes
2025
2024
Group
£m
Joint
ventures
£m
Total
£m
Group
£m
Joint
ventures
£m
Total
£m
Investment properties
13,7
15,998 3,042 19,040
15,303 2,526 17,829
Trading properties
1 — 1
6 — 6
Total properties
15,999 3,042 19,041
15,309 2,526 17,835
Investment in joint
ventures
7
1,715 (1,715) —
1,552 (1,552) —
Other net liabilities
(601) (248) (849)
(568) (218) (786)
Net borrowings
16,7
(4,840) (1,079) (5,919)
(4,244) (756) (5,000)
Total equity
12,273 — 12,273
12,049 — 12,049
EPRA adjustments
12
264
238
Adjusted NAV
12
12,537
12,287
Number of shares,
million
12
1,355.0
1,355.3
Adjusted NAV, pence
per share
12
925
907
The portfolio valuation surplus of 1.0 per cent shown on page 29 of the Strategic Report cannot be
directly derived from the Financial Statements and is calculated to be comparable with published
MSCI Real Estate indices against which SEGRO is measured. Based on the Financial Statements
there is a valuation surplus of £91 million (see Note 8(ii)) and property value of £18,962 million
(seeNote25) giving a valuation surplus of 0.5 per cent. The primary differences are that the
portfoliovaluation surplus shown on page 29 of £196 million excludes the impact of rent free
incentives (£41 million, 0.2per cent) and capitalised interest (£64 million, 0.3 per cent).
Total assets under management of £22,004 million (2024: £20,296 million) includes Group total
properties of £15,920 million (2024: £15,244 million) (see Note 25) and 100 per cent of total
properties owned by joint ventures of £6,084 million (2024: £5,052) (see Note 7(ii)).
Table 4: EPRA Earnings
Notes
2025
Group
£m
2024
Group
£m
Earnings per IFRS income statement
551
594
Adjustments to calculate EPRA earnings, exclude:
Valuation surplus on investment properties
8(i)
(54)
(120)
Profit on sale of investment properties
8(i)
(1)
(75)
Profit on sale of trading properties
8(i)
(2)
—
Tax on profits on disposals
1
—
21
Cost of early close out debt
9
—
2
Net fair value loss/(gain) on interest rate swaps and other derivatives
9
35
(3)
Deferred and current tax in respect of EPRA adjustments
1
(5)
9
Adjustments to the share of profit from joint ventures after tax
7
(31)
30
Solar panel depreciation
2
2
—
EPRA earnings
495
458
Basic number of shares, million
12
1,352.5
1,328.7
EPRA earnings per share (EPS) (pence)
36.6
34.5
Company specific adjustments:
Non-EPRA adjustments
2
—
—
Adjusted earnings
495
458
Adjusted EPS (pence)
12
36.6
34.5
1 Total tax credit in respect of adjustments per Note 2 of £5 million (2024: £30 million charge) comprises tax on profits on disposals
of £nil (2024: £21 million charge) and a deferred and current tax credit of £5 million (2024: £9 million charge).
2 The updated EPRA BPR Guidelines on EPRA earnings are applicable for reporting periods starting after 1 October 2024 and have
been applied in calculating EPRA earnings for the year ended 31 December 2025. Solar depreciation is shown outside of Adjusted
profit in line with the updated Guidelines, there is no impact on the prior year comparative.
182
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Overview Strategic Report Governance Financial Statements Further Information
Notes to the Financial Statements continued
For the year ended 31 December 2025
Supplementary Notes Not Part of Audited Financial Statements continued
Table 5: EPRA Net asset measures
The European Public Real Estate Association (EPRA) best practice recommendations (BPR) for
financial disclosures by public real estate companies sets out three net asset value measures: EPRA
net tangible assets (NTA), EPRA net reinstatement value (NRV), and EPRA net disposal value (NDV).
The EPRA net tangible assets (NTA) metric is considered to be most consistent with the nature of
SEGRO’s business as a UK REIT providing long-term progressive and sustainable returns. EPRA NTA
acts as the primary measure of net asset value and is also referred to as Adjusted Net Asset Value
(orAdjusted NAV).
A reconciliation of the three EPRA NAV metrics from IFRS NAV is shown in the table below.
As at 31 December 2025
EPRA measures
EPRA NTA
£m
EPRA NRV
£m
EPRA NDV
£m
Equity attributable to ordinary shareholders
12,273 12,273 12,273
Fair value adjustment in respect of interest rate derivatives –
Group
123 123 —
Fair value adjustment in respect of trading properties – Group
1 1 1
Deferred tax in respect of depreciation and valuation surpluses
– Group
1
96 192 —
Deferred tax in respect of depreciation and valuation surpluses
– Joint ventures
1
88 176 —
Intangible assets
(44) — —
Fair value adjustment in respect of debt – Group
— — 308
Fair value adjustment in respect of debt – Joint ventures
— — 8
Real estate transfer tax
2
— 1,062 —
Net assets
12,537 13,827 12,590
Diluted shares (million)
1,355.0 1,355.0 1,355.0
Diluted net assets per share
925 1,020 929
1 50 per cent of deferred tax in respect of depreciation and valuation surpluses has been excluded in calculating EPRA NTA in line
with option 3 of EPRA BPR Guidelines.
2 EPRA NTA and EPRA NDV reflect IFRS values, which are net of purchasers’ costs. Purchasers’ costs are added back when
calculating EPRA NRV.
As at 31 December 2024
EPRA measures
EPRA NTA
£m
EPRA NRV
£m
EPRA NDV
£m
Equity attributable to ordinary shareholders
12,049 12,049 12,049
Fair value adjustment in respect of interest rate derivatives
– Group
95 95 —
Fair value adjustment in respect of trading properties – Group
2 2 2
Deferred tax in respect of depreciation and valuation surpluses
– Group
1
90 179 —
Deferred tax in respect of depreciation and valuation surpluses
– Joint ventures
1
88 176 —
Intangible assets
(37) — —
Fair value adjustment in respect of debt – Group
— — 283
Fair value adjustment in respect of debt – Joint ventures
— — 20
Real estate transfer tax
2
— 976 —
Net assets
12,287 13,477 12,354
Diluted shares (million)
1,355.3 1,355.3 1,355.3
Diluted net assets per share
907 994 912
1 50 per cent of deferred tax in respect of depreciation and valuation surpluses has been excluded in calculating EPRA NTA in line
with option 3 of EPRA BPR Guidelines.
2 EPRA NTA and EPRA NDV reflect IFRS values, which are net of purchasers’ costs. Purchasers’ costs are added back when
calculating EPRA NRV.
183
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SEGRO plc Annual Report & Accounts 2025
Overview Strategic Report Governance Financial Statements Further Information
Notes to the Financial Statements continued
For the year ended 31 December 2025
Supplementary Notes Not Part of Audited Financial Statements continued
Table 6: EPRA LTV, proportional consolidation
2025
2024
Notes
Group
£m
Joint
ventures
£m
Total
£m
Group
£m
Joint
ventures
£m
Total
£m
Borrowings
1,2
1,817 139 1,956
1,564 3 1,567
Bonds
1,2
3,170 978 4,148
3,077 930 4,007
Exclude:
Cash and cash
equivalents
16
(111) (32) (143)
(363) (173) (536)
Net debt (before
capitalised finance
costs) (a)
4,876 1,085 5,961
4,278 760 5,038
Foreign currency
derivatives
17
(8) — (8)
(27) — (27)
Net payables
3
397 74 471
408 49 457
Adjusted net debt (b)
5,265 1,159 6,424
4,659 809 5,468
Investment properties
at fair value (excluding
head lease ROU asset)
13
15,918 3,042 18,960
15,236 2,526 17,762
Trading properties
1 — 1
6 — 6
Total property value (c)
15,919 3,042 18,961
15,242 2,526 17,768
Head lease ROU asset
13
80 — 80
67 — 67
Unrecognised valuation
surplus on trading
properties
1 — 1
2 — 2
Other interest in
property
21 1 22
17 — 17
Intangibles
44 — 44
37 — 37
Adjusted total
property value (d)
16,065 3,043 19,108
15,365 2,526 17,891
LTV (a/c)
30.6% 31.4%
28.1% 28.4%
EPRA LTV (b/d)
32.8% 33.6%
30.3% 30.6%
1 Total borrowings as at 31 December 2025 per Note 16 of £4,951 million (2024: £4,607 million) consists of: nominal value of borrowings
from financial institutions of £1,817 million (2024: £1,564 million) less unamortised finance costs of £14 million (2024:£8 million) and
nominal value of bond loans of £3,170 million (2024: £3,077 million) less unamortised finance costs of £22 million (2024: £26 million).
2 Joint venture borrowings as at 31 December 2025 per Note 7 of £1,111 million at share (2024: £929 million) consists of: nominal
value of borrowings from financial institutions of £139 million (2024: £3 million) less unamortised finance costs of £2 million (2024:
£nil) and nominal value of bond loans of £978 million (2024: £930 million) less unamortised finance costs of £4 million (2024: £4
million).
3 Net payables is calculated as the net position of the following line items shown on the Balance Sheet: non-current other
receivables, current trade and other receivables, tax asset, non-current trade and other payables, non-current tax liabilities
andcurrent trade and other payables.
Table 7: EPRA net initial yield and topped-up net initial yield
Combined property portfolio including joint ventures
at share – 2025
Notes
UK
£m
Continental
Europe
£m
Total
£m
Total properties per financial statements
Table 3
11,783 7,258 19,041
Add valuation surplus not recognised on trading
properties
1
1 — 1
Less head lease ROU assets
13
— (80) (80)
Combined property portfolio per external
valuers’ reports
11,784 7,178 18,962
Less land and development properties
(investment, trading, joint ventures)
(1,321) (977) (2,298)
Net valuation of completed properties
10,463 6,201 16,664
Add notional purchasers’ costs
710 352 1,062
Gross valuation of completed properties
including notional purchasers’ costs
A
11,173 6,553 17,726
Income
Gross passing rent
2
445 323 768
Less irrecoverable property costs
(8) (13) (21)
Net passing rent
B
437 310 747
Adjustment for notional rent in respect of rent
free periods
42 26 68
Topped up net rent
C
479 336 815
Including fixed/minimum uplifts
4
10 — 10
Total topped up net rent
489 336 825
Yields – 2025
Notes
UK
%
Continental
Europe
%
Total
%
EPRA net initial yield
3
B/A
3.9 4.7 4.2
EPRA topped-up net initial yield
3
C/A
4.3 5.1 4.6
Net true equivalent yield
5.4 5.6 5.5
1 Trading properties are recorded in the Financial Statements at the lower of cost and net realisable value, therefore valuations
above cost have not been recognised.
2 Gross passing rent excludes short-term lettings and licences.
3 In accordance with the Best Practices Recommendations of EPRA.
4 Certain leases contain clauses that guarantee future rental increases, whereas most leases contain five-yearly, upwards only rent
review clauses (UK) or indexation clauses (Continental Europe).
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Notes to the Financial Statements continued
For the year ended 31 December 2025
Supplementary Notes Not Part of Audited Financial Statements continued
Table 8: EPRA vacancy rate
2025
£m
2024
£m
Annualised estimated rental value of vacant premises
50
54
Annualised estimated rental value for the completed property portfolio
975
900
EPRA vacancy rate
1,2
5.1%
6.0%
1 Vacancy rate percentages have been calculated using the figures presented in the table above in millions accurate to one
decimalplace.
2 There are no significant or distorting factors influencing the EPRA vacancy rate.
Table 9: Total cost ratio/EPRA cost ratio
Total cost ratio
Notes
2025
£m
2024
£m
Costs
Property operating expenses
1
5
94
92
Administrative expenses
6
73
76
Share of joint venture property operating and administrative expenses
7
25
23
Less:
Joint venture management fees income, management fees and other
costs recovered through rents but not separately invoiced
2
(33)
(34)
Total costs (A)
159
157
Gross rental income
Gross rental income
4
637
592
Share of joint venture gross rental income
7
142
137
Less:
Other costs recovered through rents but not separately invoiced
2
(3)
(4)
Total gross rental income (B)
776
725
Total cost ratio (A)/(B)
3
20.4%
21.7%
Total costs (A)
159
157
Share-based payments
6
(5)
(7)
Total costs after share-based payments (C)
154
150
Total cost ratio after share-based payments (C)/(B)
3
19.8%
20.7%
EPRA cost ratio
Total costs (A)
159
157
Non-EPRA adjustments
2
—
—
EPRA total costs including vacant property costs (D)
159
157
Group vacant property costs
5
(20)
(18)
Share of joint venture vacant property costs
7
(2)
(1)
EPRA total costs excluding vacant property costs (E)
137
138
Total gross rental income (B)
776
725
Total EPRA cost ratio (including vacant property costs) (D)/(B)
3
20.4%
21.7%
Total EPRA cost ratio (excluding vacant property costs) (E)/(B)
3
17.5%
19.1%
1 Property operating expenses are net of costs capitalised in accordance with IFRS of £11 million (2024: £10 million) (see Note 5 for
further detail on the nature of costs capitalised).
2 Total deduction of £33 million (2024: £34 million) from costs includes: joint venture management fees income of £25 million
(2024:£26 million), management fees and other costs recovered through rents but not separately invoiced, including joint
ventures, of £8 million (2024: £8 million). These items have been represented as an offset against costs rather than a component
of income in accordance with EPRA BPR Guidelines as they are reimbursing the Group for costs incurred. Gross rental income of
£637 million (2024: £592 million) does not include joint venture management fee income and management fee income and these
fees are not required to be included in the total deduction to income.
3 Cost ratio percentages have been calculated using the figures presented in the table above in millions accurate to one
decimalplace.
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Notes to the Financial Statements continued
For the year ended 31 December 2025
Supplementary Notes Not Part of Audited Financial Statements continued
Table 10: EPRA capital expenditure analysis
2025
2024
Wholly
owned
£m
Joint
ventures
£m
Total
£m
Wholly
owned
£m
Joint
ventures
£m
Total
£m
Acquisitions
24
1
234 258
5
454
1
— 454
Development
369
2
18 387
430
2
41 471
Capitalised interest
4
63 1 64
67 2 69
Investment
properties:
Incremental
lettable space
— — —
1 — 1
No incremental
lettable space
47 14 61
44 9 53
Tenant incentives
3
65 — 65
40 16 56
Total
568 267 835
1,036 68 1,104
1 Being £24 million investment property and £nil trading property (2024: £452 million and £2 million respectively) seeNote13.
2 Being £366 million investment property and £3 million trading property (2024: £429 million and £1 million respectively)
seeNote13.
3 Includes tenant incentives and letting fees.
4 Capitalised interest on development expenditure.
5 Excludes acquisitions of property sold from the Group’s wholly-owned portfolio to joint ventures. Total acquisitions completed in
2025 shown on page 30 of the Strategic Report, being land acquisitions of £26 million and asset acquisitions of £232 million.
Total disposals of £57 million shown on page 30 of the Strategic Report reflects disposals that
completed in 2025 and includes: carrying value of investment properties disposed by SEGRO Group
of £110 million (see Note 13) and profit generated on disposal of £1 million (see Note 8); proceeds
from sale of trading properties £10 million (see Note 4); share of joint venture disposal proceeds
of£2 million; and excludes net proceeds recognised in 2025 for disposals that completed in prior
periods and assets sold by SEGRO to joint ventures of £66 million.
Table 11: Like-for-like net rental income
(including JVs at share)
2025
£m
2024
£m
Change
%
2
UK
361
340 6.2
Continental Europe
222
210 5.8
Like-for-like net rental income before other items
583
550 6.0
Other
1
(4)
(5)
Like-for-like net rental income (after other items)
579
545 6.2
Development lettings
50
19
Properties taken back for development
6
17
Like-for-like net rental income plus developments
635
581
Properties acquired
28
6
Properties sold
—
22
Net rental income before surrenders, dilapidations and
exchange
663
609
Lease surrender premiums and dilapidation income
2
7
Other items and rent lost from lease surrenders
10
14
Impact of exchange rate difference between periods
—
(2)
Net rental income (including joint ventures at share)
675
628
SEGRO share of joint venture management fees
(12)
(12)
Net rental income after SEGRO share of joint venture fees
663
616
1 Other includes the corporate centre and other costs relating to the operational business that are not specifically allocated to the
two businesses UK and Continental Europe.
2 Percentage change has been calculated using numbers accurate to one decimal place.
3 The like-for-like net rental growth metric is based on properties held throughout both 2025 and 2024 on a proportionally
consolidated basis. The value of these properties as at 31 December 2025 on a proportional basis was £14,766 million
(2024:£14,526 million). This provides details of net rental income growth excluding the distortive impact of acquisitions, disposals
and development completions. Where an asset has been sold into a joint venture (sales to SELP, for example) the 50 per cent
share owned throughout the period is included in like-for-like calculation, with the balance shown as disposals.
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Notes to the Financial Statements continued
For the year ended 31 December 2025
Supplementary Notes Not Part of Audited Financial Statements continued
Table 12: Top 10 estates as at 31 December 2025 (by value, including joint ventures at share)
Ownership
% Location
Lettable area (100%)
sq m Asset type
Slough Trading Estate
100 Slough 629,001 Multi-let urban warehouse estate, including data centres
SEGRO Logistics Park East Midlands Gateway
100 Midlands 456,684 Big box warehouse park
SEGRO Park Premier Road
50/100 Park Royal 62,832 Multi-let urban warehouse estate
SEGRO Park Greenford Ockham Drive and Auriol Drive
100 Park Royal 79,606 Multi-let urban warehouse estate
SEGRO Park Heathrow, Shoreham Road
100 Heathrow 93,704 Multi-let cargo facility
SEGRO Airport Park Berlin
50/100 Germany 154,545 Multi-let urban warehouse estate and Big box estate
SEGRO Logistics Park Northampton
100 Midlands 110,346 Big box warehouse park
SEGRO Park Coventry
100 Midlands 117,418 Big box warehouse park
SEGRO Parc des Petits Carreaux
100 France 130,394 Multi-let urban warehouse estate
SEGRO Park Hurricane Way
100 Heathrow 56,906 Multi-let urban warehouse and Big box estate
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Notes to the Financial Statements continued
For the year ended 31 December 2025
Group Income Statement
Net rental income
2
543
500 462 412 341
Joint venture management
fee income
25
26 29 30 26
Management and development fee
income
2
3
6 4 5 5
Net service charge and
other income
1,2
1
(1) 1 1 1
Administrative expenses
(73)
(76) (63) (59) (59)
Share of joint ventures Adjusted
profit after tax
78
83 82 71 69
Net finance costs
(including adjustments)
(68)
(68) (106) (74) (40)
Adjusted profit before tax
509
470 409 386 343
Adjustments to the share of profit/
(loss) from joint ventures after tax
3
31
(30) (158) (215) 392
Profit on sale of investment
properties
1
75 39 9 53
Valuation surplus/(deficit) on
investment properties
54
120 (647) (1,970) 3,617
Profit on sale of trading properties
2
— 3 7 7
Decrease/(increase) in provision for
impairment of trading properties
and other interests in property
—
— — 15 (1)
Other investment income
—
— 7 — —
Net fair value gain/(loss) on interest
rate swaps and other derivatives
(35)
3 24 (199) (82)
Cost of early close out of debt
—
(2) (1) — —
Joint venture performance fee
3
—
— 89 — 26
Impairment loss on loan due from
associate
—
— (28) — —
Solar panel depreciation
(2)
— — — —
Profit/(loss) before tax
560
636 (263) (1,967) 4,355
2025
£m
2024
£m
2023
£m
2022
£m
2021
£m
Group Balance Sheet
Investment properties
15,998
15,303 14,914 14,939 15,492
Trading properties
1
6 3 35 45
Total directly owned properties
15,999
15,309 14,917 14,974 15,537
Property, plant and equipment
40
34 28 23 22
Investments in joint ventures
1,715
1,552 1,636 1,768 1,795
Other assets
316
316 349 421 344
Cash and cash equivalents
111
363 376 162 85
Total assets
18,181
17,574 17,306 17,348 17,783
Borrowings
(4,951)
(4,607) (5,348) (4,884) (3,406)
Deferred tax liabilities
(210)
(192) (192) (226) (274)
Other liabilities and
non-controlling interests
(747)
(726) (862) (865) (667)
Total equity attributable to
owners of the parent
12,273
12,049 10,904 11,373 13,436
Total movement in equity
attributable to owners of
the parent
Profit/(loss) attributable to
equity shareholders
551
594 (253) (1,927) 4,060
Other equity movements
(327)
551 (216) (136) (283)
Data per ordinary share (pence)
Earnings per share
Basic earnings per share
40.7
44.7 (20.7) (159.7) 339.0
Adjusted earnings per share –
basic
36.6
34.5 32.7 31.0 28.0
Net assets per share basic
Basic net assets per share
907
891 889 941 1,118
Adjusted NAV per share – diluted
925
907 907 966 1,137
Dividend per share
31.1
29.3 27.8 26.3 24.3
2025
£m
2024
£m
2023
£m
2022
£m
2021
£m
1 Net service charge and other income is calculated as Service charge and other income shown in Note 4, less Service charge and
other expenses of shown in Note 5.
2 The composition of gross and net rental income changed in 2022 to provide a better measure of the underlying rental income
from the property portfolio. Management and development fee income and service charge and other income are presented
outside of gross and net rental income. There was no impact on Adjusted operating profit before interest and tax from this change
and the prior year comparatives in the table above have been represented to reflect this change.
3 From 2023, SELP performance fees are recognised outside of Adjusted profit, the 2021 comparative was represented to reflect
thischange.
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Five-year financial results
Financial calendar and shareholder information
February 2026
Announcement of Full-Year Results:
20 February 2026
March 2026
Ex-dividend date for final dividend:
Property Income Distribution 26 March 2026
Record date:
Property Income Distribution 27 March 2026
April 2026
Annual General Meeting:
23 April 2026
May 2026
Payment:
Property Income Distribution 8 May 2026
July 2026
Announcement of Half-Year Results:
Provisional 30 July 2026
September 2026
Payment:
Property Income Distribution and/or Dividend September 2026
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Further information
Shareholder enquiries
Our Registrar, Equiniti Limited (Equiniti), provides a range of services to our shareholders. If you have
any questions about your shareholding or if you require further guidance (e.g. to notify a change of
address) please contact our Registrar on the details below or register for a free Shareview portfolio
at www.shareview.co.uk or by scanning the QR code provided.
Equiniti Limited, Aspect House, Spencer Road, Lancing, West Sussex, BN99 6DA.
Telephone: +44 (0) 371 3842 186
Electronic communications
Shareholders have the opportunity to elect to receive shareholder communications electronically,
e.g. Annual Reports, Notice of the Annual General Meeting and Proxy Forms. You can elect to receive
email notifications of shareholder communications by registering for a Shareview portfolio as
detailed above, where you can also submit proxy votes for shareholder meetings and update your
bank details for dividend payments. Receiving the Company’s communications electronically allows
the Company to communicate with its shareholders in a more environmentally friendly, cost
effective and timely manner.
AGM
The 2026 AGM will be held at 11.00 a.m. on 23 April 2026 at RSA House, 8 John Adam Street,
LondonWC2N 6EZ.
Please check our 2026 Notice of Meeting for the most up to date information. Shareholders are also
advised to review our website at www.SEGRO.com, which will be updated if there are any changes
to the arrangements.
ShareGift
ShareGift is a charity (registered under the name The Orr Mackintosh Foundation, registered charity
number 1052686) which specialises in accepting donations of small numbers of shares which are
uneconomic to sell on their own. Shares which have been donated to ShareGift are aggregated and
sold when practicable, with the proceeds passed on to a wide range of UK charities. ShareGift can
also help with larger donations of shares. Further details about ShareGift can be obtained from
itswebsite at www.sharegift.org or by writing to ShareGift at ShareGift, PO Box 72253, London,
SW1P 9LQ, email: help@sharegift.org, telephone: +44 (0)207 930 3737.
Dividends
A requirement of the REIT regime is that a REIT must distribute to shareholders by way of dividend
atleast 90 per cent of its profits from its tax-exempt UK property rental business (calculated under
UK tax principles after the deduction of interest and capital allowances and excluding chargeable
gains). Such distributions are referred to as Property Income Distributions, or PIDs. Any further
distributions may be paid as ordinary dividends, which are derived from profits earned by its UK,
non-REIT taxable business, as well as its overseas operations (including the SIIC in France and
SOCIMI in Spain).
Withholding tax – PIDs
SEGRO is required to withhold tax at source from its PIDs at the basic tax rate (20 per cent).
UKshareholders need take no immediate action (unless they qualify for exemption as described
below) and will receive with each dividend payment a tax deduction certificate stating the amount
of taxdeducted.
UK shareholders who fall into one of the classes of shareholder able to claim an exemption from
withholding tax may be able to receive a gross PID payment if they have submitted a valid relevant
Exemption Declaration form, either as a beneficial owner of the shares, or as an intermediary if
theshares are not registered in the name of the beneficial owner, to Equiniti. Both Exemption
Declaration forms are available at www.SEGRO.com/shareholder-information/reit-real-estate-
investment-trust. A valid declaration form, once submitted, will continue to apply to future
payments of PIDs until rescinded, and so it is a shareholder’s responsibility to notify SEGRO if their
circumstances change and they are no longer able to claim an exemption from withholding tax.
Shareholders resident outside the UK may be able to claim a full or partial refund of withholding
tax(either as an individual or as a company) from HMRC, subject to the terms of a double tax treaty,
if any, between the UK and the country in which the shareholder is resident.
Ordinary dividends
Ordinary, non-PID dividends will be treated in exactly the same way by shareholders as ordinary
dividends paid before the Company became a REIT. From 6 April 2016 the notional 10 per cent tax
credit has been abolished and replaced with a tax-free dividend allowance, which will apply to the
ordinary, non-PID dividends received by UK resident shareholders who are subject to UK income tax.
This allowance does not apply to the PID element of dividends. Further information is available from
HMRC at https://www.gov.uk/tax-on-dividends.
Chequeless dividends
Since January 2021, SEGRO has withdrawn the option for shareholders to receive payments by
cheque. For more information on how to receive dividends directly into your bank or building
society account, please visit www.SEGRO.com/investors/shareholder-information/shareholder-faq.
Scrip Dividend
Shareholders renewed the Directors’ authority to offer a scrip dividend option (Scrip) in respect of
cash dividends (including those treated as PIDs) at the 2024 AGM. This authority runs for three years
ending on the earlier of 17 April 2027 and the 2027 AGM.
Subject to the Board deciding to offer a Scrip, it allows shareholders who elect to receive it, to take
their final and interim dividends in shares rather than cash.
The Board has decided not to offer a Scrip alternative in respect of the 2025 Final Dividend.
Details of the Scrip, together with information on how shareholders can elect to receive it are available on the
Company’s website www.SEGRO.com.
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Overview Strategic Report Governance Financial Statements Further Information
Shareholder information
Associates: An entity in which the Group has significant influence but not control or joint control.
This is generally the case where the Group holds between 20 per cent and 50 per cent of the
votingrights.
Availability Zone: Separated groups of data centres within a geographic area. Each availability zone
has independent power and networking infrastructure so that if one zone experiences an outage,
then regional services and capacity are supported by the remaining zones.
BREEAM: BREEAM provides sustainability assessment and certification for real estate assets.
Completed portfolio: The completed investment properties and the Group’s share of joint ventures
and associates’ completed investment properties. Includes properties held throughout the period,
completed developments and properties acquired during the period.
Covered land: Income-producing assets acquired with the explicit intention to redevelop them in
the short to medium term.
Development pipeline: The Group’s current programme of developments authorised or in the
course of construction at the Balance Sheet date (Current Pipeline), together with projects that are
conditional (for example, on achieving planning permission or final signing of the contract) but in a
sufficiently advanced stage that we expect to commence development within the next 12 months
(Near-term Pipeline) and potential schemes not yet commenced on land owned or controlled by
theGroup (Future Pipeline).
Development Yield: The expected gross yield based on the estimated current market rental value
(ERV) ofthe developments when fully let, divided by the book value of the developments at the
earlier ofcommencement of the development or the Balance Sheet date plus future development
costs and estimated finance costs to completion.
Earnings before interest, tax, depreciation and amortisation (EBITDA): Adjusted operating profit
before interest and tax, adding back depreciation and amortisation charges, less share of joint
ventures’ and associates’ adjusted profit and including dividends received.
Earnings per share (EPS): Equity shareholders’ earnings divided by the number of ordinary shares
inissue at the balance sheet date. Variations of this metric are disclosed further in the relevant note
to the accounts.
EPRA: The European Public Real Estate Association, a real estate industry body, which has issued
Best Practices Recommendations in order to provide consistency and transparency in real estate
reporting across Europe.
Equivalent yield: The internal rate of return from an investment property, based on the value of
theproperty assuming the current passing rent reverts to ERV and assuming the property becomes
fully occupied over time. It assumes that rent is received annually in arrears.
ESG: Environmental, Social and Governance issues.
Estimated cost to completion: Costs still to be expended on a development or redevelopment
topractical completion, including attributable interest.
Estimated rental value (ERV): The estimated annual market rental value of lettable space as
determined biannually by the Group’s valuers. This will normally be different from the rent
beingpaid.
FLAP-D: acronym that refers to Europe’s largest data centre markets of Frankfurt, London,
Amsterdam, Paris and Dublin.
Gearing: Net borrowings divided by total shareholders’ equity excluding intangible assets
anddeferred tax provisions.
Green lease clause: A clause added to our leases that require our customers to provide us with
their energy usage data and, where possible, source their energy via a renewable tariff.
Gross rental income: Contracted rental income recognised in the period in the Income Statement,
including surrender premiums. Lease incentives, initial costs and any contracted future rental
increases are amortised on a straight-line basis over the lease term.
Headline rent: The annual rental income currently receivable on a property as at the Balance Sheet
date (which may be more or less than the ERV) ignoring any rent-free period.
Hectares (Ha): The area of land measurement used in this analysis. The conversion factor used,
where appropriate, is 1 hectare = 2.471 acres.
IAS: International Accounting Standards, the standards under which the SEGRO Group reports its
financialstatements.
IFRS: International Financial Reporting Standards, the standards under which the SEGRO Group
reports its financial statements
Investment property: Completed land and buildings held for rental income return and/or capital
appreciation.
Joint venture: An entity in which the Group holds an interest and which is jointly controlled by the
Group and one or more partners under a contractual arrangement whereby decisions on financial
and operating policies essential to the operation, performance and financial position of the venture
require each partner’s consent.
Life cycle assessments: Life cycle assessment (LCA) is a methodology for assessing the
environmental impacts associated with all the stages of the life cycle of a building.
Loan to value (LTV): Net borrowings excluding capitalised transaction costs divided by the carrying
value of total property assets (investment, owner occupied, trading properties and, if appropriate,
assets held for sale on the Balance Sheet) and excludes head lease ROU asset. This is reported on
a‘look-through’ basis (including joint ventures and associates at share).
MSCI: MSCI Real Estate calculates indices of real estate performance around the world.
Net assets per share or net asset value (NAV) per share: Equity shareholders’ funds divided by the
number of ordinary shares in issue at the balance sheet date. Variations of this metric are disclosed
further in the relevant note to the accounts.
Net debt:EBITDA ratio: Net debt divided by EBITDA.
Net initial yield: Passing rent less non-recoverable property expenses such as empty rates, divided
by the property valuation plus notional purchasers’ costs. This is in accordance with EPRA’s Best
Practices Recommendations.
Net rental income: Gross rental income less ground rents paid, net service charge expenses and
property operating expenses.
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Glossary of terms
Net true equivalent yield: The internal rate of return from an investment property, based on the
value of the property assuming the current passing rent reverts to ERV and assuming the property
becomes fully occupied over time. It assumes that rent is received quarterly in advance.
Passing rent: The annual rental income currently receivable on a property as at the Balance Sheet
date (which may be more or less than the ERV). Excludes rental income where a rent-free period is
inoperation. Excludes service charge income (which is netted off against service charge expenses).
Pre-let: A lease signed with an occupier prior to commencing construction of a building.
REIT: A qualifying entity which has elected to be treated as a Real Estate Investment Trust for tax
purposes. In the UK, such entities must be listed on a recognised stock exchange, must be
predominantly engaged in property investment activities and must meet certain ongoing
qualifications. SEGRO plc and its UK subsidiaries achieved REIT status with effect from
1January2007.
Rent-free period: An incentive provided usually at commencement of a lease during which
acustomer pays no rent. The amount of rent free is the difference between passing rent
andheadlinerent.
Rent roll: See Passing rent.
Reversion: The difference between in place contracted rents and estimated market rental
value(ERV).
Science Based Targets initiative (‘SBTi’): A global organization that provides methodologies for
and independently validates corporate climate targets to ensure they are consistent with the level of
decarbonization required to limit global warming to well below 2°C, and pursue efforts toward 1.5°C.
SELP: SEGRO European Logistics Partnership S.à r.l., a 50-50 joint venture between SEGRO and the
Public Sector Pension Investment Board (PSP Investments) established in 2013 to own big box
warehouses in Continental Europe.
SIIC: Sociétés d’Investissements Immobiliers Cotées are the French equivalent of UK Real Estate
Investment Trusts (see REIT).
SOCIMI: Sociedades Anónimas Cotizadas de Inversión Inmobiliaria are the Spanish equivalent of a
Real Estate Investment Trust ( see REIT).
Speculative development: Where a development has commenced prior to a lease agreement
being signed in relation to that development.
SPPICAV: Société de Placement à Prépondérance Immobilière à Capital Variable is a French
equivalent of UK Real Estate Investment Trusts (see REIT).
Square metres (sq m): The area of buildings measurements used in this analysis. The conversion
factor used, where appropriate, is one square metre = 10.7639 square feet.
Takeback: Rental income lost due to lease expiry, exercise of break option, surrender or insolvency.
Topped up net initial yield: Net initial yield adjusted to include notional rent in respect of let
properties which are subject to a rent-free period at the valuation date. This is in accordance with
EPRA’s Best Practices Recommendations.
Total accounting return (TAR): A measure of the Group’s return, calculated as the change in
adjusted NAV per share during the period adding back dividends paid during the period expressed
as a percentage of adjusted NAV per share at the beginning of the period.
Total property return (TPR): A measure of the ungeared return for the portfolio and is calculated as
the change in capital value, less any capital expenditure incurred, plus net income, expressed as a
percentage of capital employed over the period concerned, as calculated by MSCI Real Estate and
excluding land.
Total shareholder return (TSR): A measure of return based upon share price movement over the
period and assuming reinvestment of dividends.
Trading property: Property being developed for sale or one which is being held for sale after
development is complete.
Yield on new money: The yield on cost excluding the book value of land if the land is owned by the
Group in the reporting period prior to commencement of the development.
192
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SEGRO plc Annual Report & Accounts 2025
Overview Strategic Report Governance Financial Statements Further Information
Glossary of terms continued
The Annual Report contains certain forward-looking statements with respect to SEGRO’s expectations and plans, strategy, management objectives, future developments and performances, costs,
revenues and other trend information. All statements other than historical fact are, or may be deemed to be, forward-looking statements. Forward-looking statements are statements of future
expectations and these are subject to assumptions, risks and uncertainties. Many of these assumptions, risks and uncertainties relate to factors that are beyond SEGRO’s ability to control or estimate
precisely and which could cause actual results or developments to differ materially from those expressed or implied by these forward-looking statements. Certain statements have been made with
reference to forecast process changes, economic conditions and the current regulatory environment. Any forward-looking statements made by or on behalf of SEGRO are based upon the knowledge
andinformation available to Directors on the date of this Annual Report. Accordingly, no assurance can be given that any particular expectation will be met and SEGRO’s shareholders are cautioned
nottoplace undue reliance on the forward-looking statements. Additionally, forward-looking statements regarding past trends or activities should not be taken as a representation that such trends
oractivities will continue in the future. The information contained in this Annual Report is provided as at the date of this Annual Report and is subject to change without notice. Other than in accordance
with its legal or regulatory obligations (including under the UK Listing Rules and the Disclosure Guidance and Transparency Rules of the Financial Conduct Authority), SEGRO does not undertake to update
forward-looking statements including to reflect any new information or changes in events, conditions or circumstances on which any such statement is based. Past share performance cannot be relied
onas a guide to future performance. Nothing in this Annual Report should be construed as a profit estimate or forecast.
The information in this Annual Report does not constitute an offer to sell or an invitation to buy securities in SEGRO plc or an invitation or inducement to engage in or enter into any contract
orcommitment of other investment activities.
Find out more
To keep up to date with SEGRO, you can source facts and figures about the Group through the various sections on our website at www.SEGRO.com and sign up for email alerts for fast communication
ofbreaking news.
Financial reports, shareholder information and property analysis are frequently updated and our current share price is always displayed on the Home Page.
As well as featuring detailed information about available property throughout the portfolio, www.SEGRO.com now also includes a dedicated property search function making it easy for potential
customers, or their agents, to find business space that fits their requirement exactly. SEGRO’s performance in areas such as sustainability and customer care are also featured on ourwebsite.
We would encourage shareholders to consider electing to receive shareholder communications, including the Annual Report and Accounts, electronically as set out on page 190. As part of our
commitment to become net-zero, we want to reduce the amount of paper we use.
Other Publications
Additional disclosures on our property portfolio can be found in the 2025 Property Analysis Report at www.SEGRO.com/investors/reports-presentations
Our ESG policies, reporting guidelines, assurance statements and further case studies can be found at www.SEGRO.com.
Registered Office
SEGRO plc
1 New Burlington Place
London
W1S 2HR
Registered in England and Wales
Registered number 167591
193
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SEGRO plc Annual Report & Accounts 2025
Overview Strategic Report Governance Financial Statements Further Information
Forward-looking statements
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SEGRO plc
1 New Burlington Place
London
W1S 2HR
T +44(0)20 7451 9100
www.SEGRO.com/investors