2024 Full Year Results

Growth in rents, earnings and dividends, well-positioned for future development-led and data centre growth.

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• Strong leasing and asset management activity, including record levels of rental uplifts, driving 5.5 per cent earnings growth.
• Positive portfolio revaluation due to proactive asset management and improving investment market conditions.
• Confidence in delivery of further development led-growth and significant additional value creation opportunity through data centre pipeline. 

Commenting on the results David Sleath, Chief Executive of SEGRO, said:

“SEGRO delivered over 5 per cent growth in earnings and dividends per share in 2024. We generated £91 million of new headline rent, our third best year on record, including a 43 per cent uplift from UK rent reviews and renewals. 

“We have created the largest data centre hub in Europe and are increasingly excited about the exceptional value creation opportunity from our pipeline of 2.3GW European data centre sites in core Availability Zones. We plan to pursue the most attractive risk-adjusted returns on each opportunity, including initially working with partners to develop fully-fitted data centres. 

“We have strong conviction in the enduring structural trends that are driving occupier demand for our space. Our business, with its high-quality, well-located, urban-weighted portfolio, exceptional land bank and strong balance sheet is primed for further growth. Having seen conversations with occupiers pick up pace in recent weeks, we expect leasing and pre-letting activity to increase. This would support attractive, compounding earnings and dividend growth in the medium-term, with significant additional value upside from our data centre pipeline.”

HIGHLIGHTS¹:

• Proactive and customer-focused management of the portfolio generated new headline rent commitments of £91 million during the period (2023: £88 million). £26 million of this was driven by the capture of reversion in the UK portfolio at rent reviews and renewals, reflecting a record 43 per cent average uplift.
• 7.0 per cent increase in net rental income to £628 million (2023: £587 million), driven by strong like-for-like rental growth of 5.8 per cent and development completions.
• Adjusted pre-tax profit increased by 14.9 per cent to £470 million (2023: £409 million), resulting from increased net rental income and lower interest costs. Adjusted EPS increased by 5.5 per cent to 34.5 pence (2023: 32.7 pence), the impact of the equity placing being broadly neutral as lower interest costs were offset by the higher share count. 
• Adjusted NAV per share of 907 pence (31 December 2023: 907 pence). Over the full year the portfolio value increased 1.1 per cent (2023: 4.0 per cent decline) and rental value (ERV) grew by 3.2 per cent. 
• Development completions added £37 million of potential new headline rent, delivered at a  yield on cost of 6.9 per cent. 84 per cent of this has been leased and 97 per cent was, or is expected to be, certified BREEAM ‘Excellent’ (or local equivalent) or higher. 
• A further £51 million of potential rent from development projects under construction or in advanced negotiations, 53 per cent relate to pre-lets. Expected yield on cost for these projects is 7.9 per cent. 
• Active portfolio recycling to drive portfolio performance: £431 million acquisitions of prime assets in core markets with strong growth potential, £896 million of disposals of assets which we expected to deliver less attractive risk-adjusted returns.  
• Since the period end, our joint venture SEGRO European Logistics Partnership (“SELP”) exchanged contracts on the acquisition of a further €470 million of high-quality assets in Germany and The Netherlands. The transaction is expected to complete in the first quarter. 
• Over £1.5 billion of new equity and debt financing providing the firepower for further growth. LTV of 28 per cent at 31 December 2024 (31 December 2023: 34 per cent) and net debt:EBITDA 8.6 times (31 December 2023: 10.4 times). 
• Attractive cost of debt due to our diverse, long-term debt structure. Average cost of debt has reduced to 2.5 per cent (31 December 2023: 3.1 per cent).
• 2024 full year dividend increased 5.4 per cent to 29.3 pence (2023: 27.8 pence). Final dividend increased by 5.8 per cent to 20.2 pence (2023: 19.1 pence).

¹ Figures quoted refer to SEGRO and SEGRO’s share of joint ventures and associates, except for land (hectares) and space (square metres) which are quoted at 100 per cent, unless otherwise stated. Please refer to the Presentation of Financial Information statement in the Financial Review for further details.