LONDON: SEGRO plc reported robust earnings and dividend growth for the six months ended June 30, 2025, driven by embedded rent reversion, growing development activity, and strategic expansion into data center infrastructure.
The real estate investment trust posted a 7.8% year-on-year increase in like-for-like net rental income, bolstered by UK rent reviews and renewals. Adjusted pre-tax profit rose 11% to £252 million, with earnings per share climbing 6.5% to 18.1 pence. The interim dividend was up 6.6% to 9.7 pence.
SEGRO also advanced its data center strategy, forming a 50:50 joint venture with Pure DC to develop its first fully fitted site and progressing plans for a 2.3GW+ land-enabled power bank across key European Availability Zones.
“We’re seeing meaningful momentum across leasing, asset management, and development,” said Chief Executive David Sleath. “The embedded reversion and our extensive land bank support compounding growth in both earnings and dividends.”
During the period, SEGRO signed £31 million in new headline rent, completed developments adding £19 million in potential rent, and invested a net £388 million — including acquisitions and development capex. Nearly all developments met or exceeded BREEAM ‘Excellent’ certification.
Looking ahead, the group expects continued growth as it unlocks £116 million in reversion, £56 million from reducing vacancies, and an additional £406 million in new potential rent from its land bank. Rental growth is forecasted at 2-4% for logistics parks and 3-6% for urban assets.
With a strong balance sheet, £1.9 billion in liquidity, and continued demand across its urban and logistics-focused portfolio, SEGRO aims to further scale its income potential — particularly through fully fitted data center offerings.