Segro reports first NAV increase since mid-2022

Published 31/07/2025, 08:40
Updated 31/07/2025, 11:48
© Reuters.

Investing.com -- British warehouse developer Segro (LON:SGRO) on Thursday reported an increase in its net asset value (NAV) in its first-half results.

The company’s NAV remained steady at 910p compared to 907p in December, with the portfolio revalued up 0.5% to £18.5 billion and gearing at 31%. Rental values (ERV) growth slowed to 1%, down from 1.4% in the first half of 2024.

Like-for-like net rental income growth increased to 7.8%, compared with 5.3% H1 of 2024, with UK reviews at 55% over five years and indexed European Union properties at 6%. This translated into 6.5% earnings per share growth to 18.1p and a 6.6% dividend per share increase to 9.7p.

The company signed £31 million of new headline rent during the period, a decrease from £48 million in the first half of 2024.

Big box signings were notably lower at £3 million compared to £17 million in the same period last year. Rental increases were 2-4% for big box properties and 3-6% for urban locations.

Development completions added £19 million of headline rent at a yield of 7.7%.

The company has a further £50 million of potential rent, with 49% expected to be pre-let at a 7.3% yield. Segro’s land bank offers potential for over £500 million in rent, though the company noted the leasing market has slowed.

Segro also made progress on its 2.3GW+ land-enabled power bank plans and signed a joint venture to develop its first fully fitted data center.

CEO David Sleath stated that the company has "a further £172 million of rent available through rent reviews, renewals and the lease up of vacant space, which will continue to support attractive underlying earnings growth."

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