Highlights:

  • Berenberg issues a ‘Buy’ rating on SEGRO with a target price of GBP 1,056.
  • Panmure Liberum assigns a ‘Buy’ rating with a target price of GBP 830.
  • SEGRO reports GBP 22 million of new rent signed in Q3 2025, driven by improving occupier sentiment.

SEGRO plc (LSE:SGRO) has received positive analyst coverage following its latest trading update for the nine months ended 30 September 2025. Two leading brokerage firms — Berenberg and Panmure Liberum.

Berenberg has set a target price of GBP 1,056 per share, while Panmure Liberum has placed its target at GBP 830.

Trading Update Overview

SEGRO’s latest trading update highlighted improving occupier sentiment, with the company securing GBP 22 million of new rent during the third quarter of 2025. This represents an increase from GBP 15 million in the same quarter last year.

So far in 2025, SEGRO has signed a total of GBP 53 million in new headline rent compared to GBP 64 million at the same point in 2024. The company’s prime, modern logistics and industrial portfolio continues to perform well, driven by demand and customer retention levels.

Operational Highlights

Occupancy remains high at 94.3%, with customer retention of 86%. SEGRO completed 34,800 sq m of new development during the quarter, adding GBP 8 million in headline rent. Year-to-date, development completions total 231,600 sq m, equivalent to GBP 27 million of expected rent, 89% of which has already been secured.

The company continues to adopt a disciplined approach to capital allocation, having invested GBP 286 million into its development pipeline so far in 2025, including GBP 25 million in land purchases. SEGRO expects total development capital expenditure for 2025 to be around GBP 400 million.

Expanding Data Centre Pipeline and Balance Sheet Position

SEGRO has reported significant progress in its data centre development pipeline, including both powered shell and fully fitted facilities across the UK and Continental Europe. The company added 190MVA of additional power capacity in a key London availability zone, providing flexibility for future expansion in the high-demand data centre market.

Financially, SEGRO reports a Loan-to-Value (LTV) ratio of 32% and access to GBP 1.7 billion in cash and undrawn committed facilities. Recent financing activities included a new €360 million five-year term loan facility and a €600 million revolving credit facility for SELP, both designed to extend debt maturities and maintain liquidity.

About SEGRO

SEGRO is a leading UK-based real estate investment trust (REIT) that owns, manages, and develops modern warehouses and industrial properties in prime urban and logistics locations across the UK and Continental Europe. The company’s assets support a wide range of customers, including e-commerce, manufacturing, and data centre operators.