Full Year 2025 SEGRO PLC Earnings Call Transcript
Key Points
- Segro PLC (SEGXF) achieved a record GBP99 million in new headline rent for 2025, indicating strong leasing activity.
- The company reported a 6% growth in like-for-like net rental income, driven by lease renewals and rent reviews.
- Adjusted earnings per share increased by 6.1%, reflecting higher net rental income and cost discipline.
- Segro PLC (SEGXF) maintained a strong balance sheet with a loan-to-value ratio of 31% and reduced net debt-to-EBITDA from 8.6 to 8.4x.
- The company has a robust development pipeline, with GBP53 million of potential headline rent already under construction and 47% pre-leased.
- The geopolitical uncertainty in 2026 poses potential risks to the company's growth and deal conversion timelines.
- Pre-let activity remained low in 2025, with take-up driven more by immediate needs rather than strategic planning.
- The market for speculative development starts has fallen to roughly half the long-term averages, indicating potential challenges in new project initiations.
- Some areas, particularly in East and South London, have higher vacancy rates, which could impact occupancy levels.
- The company's focus on fully fitted data centers involves higher capital expenditure and longer timelines for income recognition compared to powered shells.
Okay. Good morning, everybody. And great to see so many people here on a Friday in half term week. So whether you are here in the room with us or joining us online, we're absolutely delighted to have you with us as we present SEGRO's 2025 full year results.
I'm joined here by a number of my executive colleagues, and I'd particularly like to welcome Susanne Schroeter, who is presenting her first set of results after joining us only in December.
Before getting into the detail, what I'd like to do is share some key messages with you, set the scene as it were and explain why we are confident about the future. And I should just mention, our presentation is going to run a little bit longer than normal today because there's a lot we want to talk about, particularly to give more color on our data center strategy and set out the -- what we think is a really exceptional opportunity for this part of our business.
So 2025 actually turned out to be a very strong year for SEGRO, both operationally and in financial terms
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