Half Year 2025 SEGRO PLC Earnings Call Transcript
Key Points
- Segro PLC (SEGXF) reported a 7.8% growth in like-for-like net rental income, driving a 6.5% uplift in earnings per share.
- The company has seen the first NAV uptick since mid-2022, indicating stabilization in capital values.
- Segro PLC (SEGXF) is progressing with the build-out of its data center platform, including a joint venture to develop its first fully fitted data center.
- The balance sheet remains strong with a loan-to-value ratio of 31%, providing capacity for growth.
- The company has a robust development pipeline with GBP50 million of rent in current and near-term projects, expected to deliver a 7.3% development yield.
- European pre-let markets have been significantly slower due to macro and geopolitical uncertainties, impacting occupier decision-making.
- Investment activity resulted in a net loss of GBP3 million of income due to higher-than-normal disposals in 2024.
- Development pre-lets have been lower than expected, leading to a reduction in CapEx guidance for FY25.
- The company faces potential headwinds from refinancing, with an expected GBP25 million impact.
- There is uncertainty in the macro environment, which could affect future development and occupier markets.
Ladies and gentlemen, thank you for attending today's SEGRO Half Year 2025 Results Call. My name is Aida and I will be your operator today. (Operator Instructions) I would now like to pass the conference over to our host, David Sleath, CEO of SEGRO. David, please go ahead.
Thank you Aida. Good morning, everybody. Welcome to our half year '25 results presentation. Thanks for taking the time to join what is clearly a very busy morning for you all. We're going to take a slightly different approach today with audio-only webcast, but we're live here in new burn to place, and we'll be taking your questions at the end, even if you can't see us.
So let me start by highlighting three key points that we'd like you to take away from today's announcement. The first is that our existing portfolio is performing well. We've seen the first NAV uptick since mid-2022, consistent with the view that we shared earlier this year that capital values have stabilized. And the active asset management by our
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