Europe’s logistics REIT leader is compounding rents and building an AI-era data-center platform—while trading at a deep discount to its own stabilized asset value.
Overview
SEGRO is presented as Europe’s leading industrial/logistics REIT with a century-long operating history and a portfolio concentrated in high-demand, supply-constrained hubs across the UK and Continental Europe. At FY2025 year-end, it managed ~£22.0bn of AUM with its own portfolio valued at ~£19.0bn. The business is anchored in recurring rental income (gross rental income £637m in 2025, +7.6% YoY), supplemented by JV management fees and ancillary income. Operational performance was strong: record £99m of new headline rent in 2025, 6.0% like-for-like net rental income growth, and substantial rent review/renewal uplifts (particularly in the UK), supported by 94.9% occupancy and high customer satisfaction. Financially, SEGRO grew adjusted EPS to £0.366 (+6.1%) and dividends to £0.311 (+6.1%), maintaining a conservative balance sheet (31% LTV) and low cost of debt (~2.6%) with long maturities. A major emerging growth vector is the data center platform, leveraging a differentiated ~2.5GW power bank to serve accelerating AI/cloud compute demand while continuing to execute on a large development pipeline.