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Highlights

  • SEGRO shares rose by 0.23% on 20 February 2026,following the release of its FY25 financial results.
  • Company Record GBP 99 million of new contracted rent secured in the year ended 31 December 2025.
  • Adjusted pre-tax profit increased 8.3% year-on-year to GBP 509 million in FY2025.
  • Adjusted earnings per share rose 6.1% to GBX 36.6 in FY2025.
  • Full-year dividend lifted 6.1% to GBX 31.1 per share.

SEGRO plc (LSE:SGRO) shares jumped 0.23% to GBX 800 during the morning session on 20 February 2026, as the company released results for the year ended 31 December 2025 showing higher profits, dividend growth and record leasing activity.

While the stock remains up approximately 24.69% over the past six months and 13.03% over the past year, today’s price movement coincided with the announcement of its full-year financial performance.

Record Leasing Drives Rental and Earnings Growth

For the year ended 31 December 2025, SEGRO secured a record GBP 99 million of new headline rent, compared to GBP 91 million in 2024. This included GBP 66 million generated from leasing and capturing rent reversion within the existing portfolio, and GBP 33 million from development signings, of which GBP 26 million related to new pre-lets, largely agreed in the second half of 2025.

Like-for-like net rental income increased 6.0% in FY2025, supported by favourable asset management. In the UK, rent reviews and renewals delivered an average uplift of 46%. Estimated Rental Value (ERV) rose 3.1% in the UK during FY2025, with Park Royal and Heathrow recording 4.7% growth, while Continental Europe saw ERV growth of 1.0% over the same period.

Occupancy improved by 90 basis points to 94.9% as at 31 December 2025, compared to 94.0% at 31 December 2024, reflecting favourable customer retention of 82% in FY2025.

Profit and Dividend Increase in FY2025

Adjusted pre-tax profit rose 8.3% year-on-year to GBP 509 million in FY2025, up from GBP 470 million in FY2024. Adjusted earnings per share increased 6.1% to GBX 36.6 in FY2025, compared to GBX 34.5 in the prior year.

The 2025 full-year dividend was increased 6.1% to GBX 31.1 per share, versus GBX 29.3 in 2024. The final dividend for FY2025 rose 5.9% to GBX 21.4, up from GBX 20.2 in FY2024.

Adjusted net asset value (NAV) per share increased 2.0% to GBX 925 as at 31 December 2025, compared to GBX 907 at 31 December 2024. On a like-for-like basis, the portfolio valuation grew 1.0% during FY2025.

Development Pipeline and Embedded Growth

As at 31 December 2025, SEGRO identified GBP 152 million of embedded income growth potential within its standing portfolio, comprising GBP 99 million of rent reversion, of which GBP 33 million is available for capture in 2026, and GBP 53 million from leasing vacant space.

Projects under construction or in advanced negotiations represent GBP 62 million of potential rent, 55% of which is pre-let, offering a development yield of 7.1%.

Over the medium term, management expects ERV growth of 3% to 6% annually across its urban portfolio and 2% to 4% for big box logistics assets. The group also highlighted its 2.5GW powered land bank for data centres, including 1.1GW available for pre-let by the end of 2028, as a significant future income opportunity.

Capital Deployment and Balance Sheet Position

In FY2025, SEGRO deployed GBP 413 million into development activity, including GBP 387 million of development capex and GBP 26 million on land acquisitions with near-term development potential. In addition, GBP 232 million was invested in selective asset acquisitions.

Disposals totalled GBP 57 million in FY2025, compared to GBP 896 million in FY2024 when transaction activity was higher.

Loan-to-value stood at 31% as at 31 December 2025, up from 28% a year earlier. Net debt to EBITDA improved to 8.4 times at 31 December 2025, compared to 8.6 times at 31 December 2024. The average cost of debt was 2.6% at year end, compared to 2.5% a year earlier.

Outlook

SEGRO stated that occupier demand strengthened in the second half of 2025, particularly for pre-lets, and this momentum has continued into 2026 with increased enquiry levels and active negotiations. The company expects growth from its existing portfolio and development programme to be supported by continued rental growth, alongside opportunities from its data centre pipeline and land bank.

Investor Takeaway

 Followed by today’s movement the stock remains significantly higher over six and twelve months, reflecting prior positive momentum.

The combination of record GBP 99 million in new rent secured in FY2025, 6.0% like-for-like rental income growth, higher earnings and a 6.1% increase in the full-year dividend underscores operational momentum. With embedded rental upside, an active development pipeline and strengthening occupier demand carrying into 2026, market participants appear to be refocusing on the company’s longer-term growth trajectory.

Frequently Asked Questions (FAQs)

  1. Why did SEGRO shares fall on 20 February 2026?

SEGRO plc (LSE:SGRO) shares declined 1.38% despite the company reporting higher earnings, record leasing activity and a 6.1% increase in its full-year dividend for FY2025.

  1. How did SEGRO perform in FY2025?

For the year ended 31 December 2025, adjusted pre-tax profit rose 8.3% to GBP 509 million and adjusted earnings per share increased 6.1% to GBX 36.6. Like-for-like net rental income grew 6.0%.

  1. What dividend did SEGRO declare for FY2025?

SEGRO increased its full-year dividend by 6.1% to GBX 31.1 per share, with the final dividend rising 5.9% to GBX 21.4