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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.
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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
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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
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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
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SEGRO plc Annual Report & Accounts 2025
Overview Strategic Report Governance Financial Statements Further Information
Performance review continued