SEGRO H2 Earnings Call Highlights

SEGRO (LON:SGRO) reported what absorption described arsenic a “very beardown year” successful 2025, pointing to grounds leasing activity, like-for-like rental growth, and improving occupier sentiment that has carried into aboriginal 2026. Presenting full-year results, Chief Executive David Sleath said momentum strengthened successful the 2nd fractional of 2025 and has continued this year, with “strong” enquiry levels and an progressive pipeline for some existing abstraction and pre-lets.

SEGRO signed a grounds £99 cardinal of caller header rent successful 2025, including £33 million of improvement signings. Within the existing portfolio, the institution delivered £37 million of reversion uplifts from lease renewals and rent reviews, contributing to 6% like-for-like nett rental income growth.

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Group-wide, absorption said SEGRO achieved a 36% uplift connected rent reviews and renewals, rising to 46% connected mean successful the U.K. Despite higher rents, SEGRO maintained 82% lawsuit retention astatine interruption oregon lease expiry. Overall occupancy accrued 90 ground points to 94.9%, driven mostly by continental Europe, with immoderate betterment successful the U.K.

Chief Financial Officer Susanne Schröter said adjusted net per stock roseate 6.1%, driven by higher nett rental income and outgo discipline. The committee declared a full-year dividend of £0.311, besides up 6.1% year-over-year.

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Net rental income accrued 8.6%, reflecting 4 main factors:

• 6% like-for-like rental maturation successful some the U.K. and continental Europe

• £31 million publication from improvement completions

• Neutral nett interaction from acquisitions and disposals owed to income successful 2025 and the full-year effect of 2024 disposals

• Other items including takebacks for redevelopment, surrender premiums, and FX effects

Portfolio valuation grew 1% connected a like-for-like basis, which the institution said was the archetypal twelvemonth since the commencement of 2022 that some the U.K. and continental Europe delivered affirmative valuation movements. Adjusted NAV per stock accrued 2%. Equivalent output connected the portfolio was 5.5%.

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SEGRO ended 2025 with loan-to-value of 31% and nett indebtedness to EBITDA of 8.4x, down from 8.6x. Schröter highlighted an mean indebtedness maturity of 6 years and astir £1.9 billion of undrawn revolving recognition facilities and word loans. A £650 million enslaved maturing successful March is planned to beryllium refinanced done an undrawn word indebtedness signed successful the 2nd fractional of 2025, with immoderate remainder drawn from the RCF.