Segro plc (REIT) (SGRO) AI Stock Analysis

• Market Cap: £8.46B
• Dividend Yield: 4.69%
• Average Volume (3M): 4.14M
• Price to Earnings (P/E): 14.0
• Beta (1Y): 1.18
• Revenue Growth: -9.88%
• EPS Growth: N/A
• Country: UK
• Employees: 466
• Sector: Real Estate
• Sector Strength: 70
• Industry: REIT - Industrial
• EPS (TTM): 0.44
• Shares Outstanding: 1,353,382,100
• 10 Day Avg. Volume: 5,040,657
• 30 Day Avg. Volume: 4,140,929
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 13.85
• Price to Cash Flow (P/CF): 24.70
• P/FCF Ratio: 20.40
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: 812.17p
• Price Target Upside: 28.75% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 12

Segro plc demonstrates a solid overall performance with strengths in financial stability and strategic expansion through recent acquisitions. The company's valuation metrics are appealing, offering a reasonable P/E ratio and attractive dividend yield. However, technical indicators show mixed signals, suggesting potential caution in the short term. Overall, Segro plc presents a balanced investment opportunity with growth potential in the European logistics market.

Positive Factors

Financial Performance

EPS of 34.5p is in line with consensus, driven by reversion capture and growth of 5.6%.

Market Liquidity

SEGRO is well-placed to take advantage of improving occupier and investment markets.

Revenue Growth

£58m of new headline rent signed YTD shows an increase over the prior year.

Negative Factors

Occupier Market

The occupier market has slowed with take-up back to pre-pandemic levels.

Pre-letting Rate

The rate of pre-letting has slowed to 53%, indicating fewer pre-committed rental agreements.

Stock Performance

SEGRO shares are broadly flat YTD, having participated in the sector-wide sell-off.

Segro plc (REIT) Business Overview & Revenue Model

Company Description

Segro plc is a leading Real Estate Investment Trust (REIT) specializing in the development, acquisition, and management of modern warehousing and industrial properties. The company operates primarily in the UK and continental Europe, focusing on key sectors such as logistics, urban distribution, and light industrial properties. Segro's portfolio comprises high-quality, strategically located assets that serve a diverse range of clients, including e-commerce companies, third-party logistics providers, and other industrial operators.

How the Company Makes Money

Segro plc generates revenue primarily through leasing its industrial and logistics properties to a variety of tenants. The company's business model is centered on acquiring, developing, and managing high-quality assets that are strategically located in proximity to major transportation hubs and urban centers. Key revenue streams include rental income from long-term leases, which provide a stable and predictable cash flow. Additionally, Segro engages in property development, adding value through the construction of new facilities tailored to tenant specifications, which can further enhance rental yields and attract new clients. The company's growth is supported by significant partnerships with major logistics and retail companies, as well as its ability to leverage its expertise in property management to optimize asset performance and drive tenant satisfaction.

Segro plc (REIT) Financial Statement Overview

Summary

Segro plc presents a mixed but generally stable financial position. The income statement shows strong gross margins but also volatility in profitability. The balance sheet is robust with strong equity and moderate leverage, while the cash flow statement indicates consistent cash generation. Despite some fluctuations, Segro plc maintains a solid financial footing.

Income Statement

Segro plc has experienced a mixed trajectory in recent years. The gross profit margin is strong at approximately 78.7% for 2024, indicating efficient cost management. However, there has been significant volatility in EBIT and net income, particularly in 2023, where both metrics were negative. Revenue has shown fluctuating growth patterns, with a notable decrease in 2024 compared to 2023. The company's ability to recover from previous losses in net income is promising, but the inconsistencies suggest potential risks in financial performance.

Balance Sheet

The balance sheet of Segro plc demonstrates a solid equity base, with an equity ratio of 68.6% in 2024, indicating a strong financial foundation. The debt-to-equity ratio is relatively moderate at 0.39, which shows a reasonable level of leverage. Return on Equity (ROE) improved significantly in 2024 after a negative performance in 2023, reflecting a return to profitability. While the balance sheet is robust, attention should be paid to the fluctuations in total liabilities and equity over time.

Cash Flow

Segro plc's cash flow statement shows positive trends, with a strong free cash flow generation in 2024 and a solid operating cash flow to net income ratio. The company has maintained a positive free cash flow, indicating its ability to generate cash after capital expenditures. Although there was a decline in free cash flow in 2024 compared to the previous year, the company has shown resilience in maintaining sufficient cash generation capabilities.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
734.00M	675.00M	749.00M	669.00M	546.00M	431.70M
	Gross Profit
600.00M	531.00M	588.00M	451.00M	401.00M	323.80M
	EBIT
591.00M	703.00M	-180.00M	197.00M	265.00M	303.20M
	EBITDA
545.00M	763.00M	-134.00M	-1.88B	270.00M	280.00M
	Net Income Common Stockholders
-10.00M	594.00M	-253.00M	-1.93B	4.06B	1.43B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
75.80M	292.00M	376.00M	162.00M	45.00M	89.00M
	Total Assets
9.17B	17.57B	17.31B	17.35B	17.78B	12.67B
	Total Debt
2.24B	4.68B	5.42B	4.96B	3.48B	2.50B
	Net Debt
2.18B	4.38B	5.11B	4.80B	3.44B	2.41B
	Total Liabilities
2.60B	5.53B	6.40B	5.97B	4.35B	3.00B
	Stockholders Equity
6.56B	12.05B	10.90B	11.37B	13.44B	9.66B
Cash Flow		Free Cash Flow
354.00M	306.00M	402.00M	204.00M	304.00M	194.40M
	Operating Cash Flow
384.00M	330.00M	431.00M	213.00M	311.00M	199.30M
	Investing Cash Flow
-196.00M	-369.00M	-526.00M	-1.25B	-1.28B	-1.11B
	Financing Cash Flow
255.00M	26.00M	309.00M	1.12B	930.00M	862.50M

Segro plc (REIT) Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 630.80
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:SGRO, the sentiment is Negative. The current price of 630.8 is below the 20-day moving average (MA) of 667.08, below the 50-day MA of 677.18, and below the 200-day MA of 763.04, indicating a bearish trend. The MACD of 2.22 indicates Negative momentum. The RSI at 58.39 is Neutral, neither overbought nor oversold. The STOCH value of 42.47 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:SGRO.

Segro plc (REIT) Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
UTG	78 Outperform	£4.02B	8.55	9.95%	4.37%	7.75%	276.67%
SGRO	71 Outperform	£8.46B	13.99	5.18%	4.69%	-9.88%	―
DLN	69 Neutral	£1.98B	17.07	3.29%	4.54%	3.73%	―
BLND	65 Neutral	£3.31B	18.18	3.17%	6.60%	-30.83%	―
Sector *	61 Neutral	$4.21B	15.62	-3.65%	12.27%	6.29%	-21.37%
LAND	52 Neutral	£3.90B	36.99	1.61%	7.60%	-1.73%	―
HMSO	51 Neutral	£1.12B	―	-2.09%	6.64%	6.08%	―

Segro plc (REIT) Corporate Events

Segro plc Announces Change in Major Holdings by BlackRock

Segro plc, a UK-based Real Estate Investment Trust (REIT), has announced a change in major holdings, with BlackRock, Inc. adjusting its voting rights in the company. The notification indicates that BlackRock’s total voting rights in Segro have decreased slightly from 10.53% to 10.27%, reflecting a minor adjustment in their financial instruments and direct voting rights.

Spark’s Take on GB:SGRO Stock

According to Spark, TipRanks’ AI Analyst, GB:SGRO is a Outperform.

Segro plc demonstrates a solid overall performance with strengths in financial stability and strategic expansion through recent acquisitions. The company’s valuation metrics are appealing, offering a reasonable P/E ratio and attractive dividend yield. However, technical indicators show mixed signals, suggesting potential caution in the short term. Overall, Segro plc presents a balanced investment opportunity with growth potential in the European logistics market.

To see Spark’s full report on GB:SGRO stock, click here.

SEGRO plc Announces Total Voting Rights for March 2025

SEGRO plc has announced its total issued ordinary share capital as of 31 March 2025, which consists of 1,353,382,087 ordinary shares with one voting right per share. This figure is crucial for shareholders to determine their notification obligations under the Financial Conduct Authority’s Disclosure Guidance and Transparency Rules, impacting how they manage their interests in the company.

SEGRO plc Concludes LTIP Share Release for Executive Directors

SEGRO plc announced the release of shares to its Executive Directors under the Long Term Incentive Plan (LTIP) from 2020, marking the end of a two-year holding period. The shares were initially granted in 2020 and vested fully after meeting performance conditions by 2023, with the final release occurring on March 26, 2025. This release involved the acquisition and subsequent sale of shares to meet tax obligations, with transactions conducted on the London Stock Exchange. This move reflects SEGRO’s ongoing commitment to aligning executive compensation with company performance, potentially impacting shareholder value and executive motivation.

SEGRO’s SELP Completes €470 Million Acquisition of Logistics Assets

SEGRO, acting as a venture adviser to the SEGRO European Logistics Partnership (SELP), has completed the acquisition of six logistics assets from Titanium Ruth Holdco Limited, valued at €470 million. These assets, located in key logistics hubs in the Netherlands and Germany, cover 370,000 sq m of fully-leased space, generating €24 million in rent with a net initial yield of 5.0%. This acquisition strengthens SELP’s position in the European logistics market, enhancing its portfolio and revenue potential.

SEGRO plc Grants LTIP Share Awards to Key Executives

SEGRO plc announced the granting of conditional awards over shares under its 2018 Long Term Incentive Plan (LTIP) to key directors and persons discharging managerial responsibilities. This move is part of their strategy to incentivize leadership, with significant share awards given to both the CEO and CFO, potentially impacting their operational focus and aligning management interests with long-term shareholder value.

SEGRO Reports Robust Growth in 2024, Eyes Future Expansion

SEGRO plc reported a 5.5% growth in earnings and dividends per share for 2024, driven by strong leasing activity and asset management, including a record 43% rental uplift from UK rent reviews. The company achieved a £91 million new headline rent and increased its net rental income by 7%, with a focus on data centre development, securing a significant pipeline in European core Availability Zones. SEGRO also improved its financial position with reduced debt costs, enhancing its capacity for future growth.

BlackRock Adjusts Holdings in SEGRO plc

BlackRock, Inc., a major shareholder in SEGRO plc, has recently adjusted its holdings, crossing the threshold of 10.5% of voting rights in the company. This change in ownership percentage reflects a slight reduction in BlackRock’s position, potentially impacting investor perceptions and stakeholder dynamics within SEGRO.

BlackRock Adjusts Holdings in SEGRO plc

SEGRO plc, a UK-based real estate investment trust, announced changes in major holdings due to BlackRock Inc.’s acquisition or disposal of voting rights. BlackRock’s voting rights in SEGRO have decreased from 10.92% to 10.57%, reflecting a slight reduction in their holdings. This adjustment may influence SEGRO’s shareholder dynamics and suggest possible recalibrations in BlackRock’s investment strategy.

SEGRO Expands European Logistics Portfolio with €470 Million Acquisition

SEGRO, acting as venture adviser to the SEGRO European Logistics Partnership (SELP) joint venture, announced the purchase of six logistics assets from Titanium Ruth Holdco Limited, valued at €470 million. These assets, located in key logistics hubs in the Netherlands and Germany, offer significant rental growth potential and align with SELP’s existing portfolio, enhancing returns through increased scale. The completion of this transaction, subject to EU anti-trust clearance, bolsters SEGRO’s position in the European logistics market.