Half Year 2026 SEGRO PLC Earnings Call Transcript
Key Points
- Strong financial performance with a 5.3% increase in like-for-like net rental income and a 6.6% rise in adjusted earnings per share.
- Significant progress in data center strategy, including a 3 GVA power bank and a pre-let at Slough with VIRTUS.
- Record development pipeline of GBP90 million in new rent for industrial and logistics, with 75% pre-let and an average yield of 7.4%.
- Successful asset recycling with GBP308 million in disposals completed or exchanged, crystallizing gains over book value.
- Improving occupier market sentiment, evidenced by GBP53 million in new headline rent contracted and a step-up in pre-lets to GBP24 million.
- EPRA NTA per share declined 2.5% to 902p, driven by a small valuation decline in the UK portfolio.
- Occupancy decreased slightly, with UK vacancy elevated in some London submarkets, though under offer or in advanced negotiations.
- Customer retention rate fell to 77%, impacted by takebacks in Continental Europe, particularly Poland and the Netherlands.
- Higher finance costs of GBP11 million due to refinancing activities, partially offsetting earnings growth.
- Planning challenges for data center development at Le Bourget, France, where a building permit was withdrawn by the new mayor, potentially delaying the project.
Thank you, Lucy. Good morning, everybody, and thank you for joining us for today's presentation of our half year results. I'm, of course, joined by Susanne Schroeter, our Chief Financial Officer.
Now we spoke extensively over the last few weeks about the significant growth and value creation opportunities that we have within our business. And so in the context of the offer period we're now in and in light of the recent announcements, we'll be giving a shorter update today, focusing mainly on our business performance in 2026.
We will also only be answering questions on these results today rather than anything to do with the potential offer from Prologis. So let's get into the presentation. We've had a strong first half. The improving occupier market sentiment that we referred to in February and again in April has continued to build. That's fed some good leasing performance and a step-up in development activity.
We've made important progress on our data center strategy, adding to our power bank, advancing planning and power
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