AUS
NZ
UK
CA
USA
IND
Highlights
- Robust Rental Growth: Net rental income increased by 7.0% to £628 million, supported by strong like-for-like rental growth and development completions.
- Profit and Value Growth: Adjusted pre-tax profit rose by 14.9% to £470 million, while the portfolio value increased by 1.1%, reversing the decline seen in 2023.
- Development Expansion: SEGRO secured £37 million in new headline rent from completed projects, with a strong pipeline of future developments.
SEGRO PLC (LSE:SGRO) has announced its full-year results for 2024, showcasing strong rental growth, increased profitability, and a resilient portfolio strategy. The company reported a 7.0% rise in net rental income to £628 million, driven by strong demand, rental growth, and the completion of new developments.
A key highlight of the year was SEGRO's success in capitalising on rental reversion, particularly in the UK, where rent reviews and renewals resulted in a record 43% average uplift. Overall, new headline rent commitments totaled £91 million, surpassing the previous year’s £88 million.
Improved Profitability and Portfolio Strength
The company’s adjusted pre-tax profit increased by 14.9% to £470 million, benefiting from higher rental income and reduced interest costs. Adjusted earnings per share (EPS) also saw a 5.5% rise to 34.5 pence. Meanwhile, SEGRO’s adjusted net asset value (NAV) per share remained stable at 907 pence, reflecting an improved property valuation environment.
Portfolio value saw a 1.1% growth, reversing a 4.0% decline in 2023, while rental value (ERV) grew by 3.2%. SEGRO’s development completions contributed £37 million of new rent, with 84% of the completed projects already leased. The company continues to focus on sustainability, with nearly all completed developments certified as BREEAM ‘Excellent’ or equivalent.
Strong Outlook for 2025 and Beyond
Looking ahead, SEGRO remains confident about its growth potential, citing strong structural trends such as digitalisation, urbanisation, and supply chain optimisation as key drivers of demand for its properties. The company has identified opportunities to capture £173 million in additional rent from its existing portfolio and unlock £422 million of new rent through future developments.
SEGRO also continues to expand its role in the data centre sector, particularly in Slough, where it has developed Europe’s largest data hub. The company has secured a landbank with access to 2.3GW of power across key European markets, positioning itself as a leader in this high-growth industry.
