Segro highlights untapped value as sets out earnings ambitions to 2030

Segro PLC on Wednesday outlined financial targets and a pathway to "superior value creation" for shareholders as it seeks to ward off the interest of suitor Prologis Inc.

Ahead of a presentation to investors, the London-based warehouse landlord flagged substantial embedded value in its industrial and logistics development pipeline with the potential to deliver an additional £429 million of potential future headline rent.

The FTSE 100-listing said it is also well placed to capitalise on Europe's fast-growing data centre opportunity with a pipeline of near to mid-term opportunities offering £460 million of income potential.

"Segro has the capabilities and balance sheet to unlock this compelling income and value creation opportunity," it added in a statement.

Outlining a path to adjusted earnings per share of 50 pence by 2030 from 36.6p in 2025, Segro said it has more than £1 billion of incremental rental income growth potential embedded in its existing portfolio and development pipelines.

This includes upside from its existing portfolio, potential from industrial, logistics and data centre pipelines combined, and selective redevelopments of existing assets.

The share of data centre net rental income is expected to rise from 7% now to more than 30% by 2035.

Reflecting this planned growth, Segro announced a second 50/50 joint venture with Pure Data Centres Group Ltd to develop a fully fitted data centre in Paris, targeting a pre-let with a global hyperscaler.

Segro will contribute the land and secured power to the venture, which is anticipated to deliver an attractive yield on cost, creating significant income.

Segro's estimated cash contribution is expected to be £60 million over the total construction period, with the remaining equity to be contributed by Pure DC.

Updating on trading performance in the first half of 2026, Segro said new headline rent secured rose to £53 million from £31 million the year prior, with £24 million of new pre-lets signed during the period.

The firm flagged a "record" pipeline of projects under construction or in advanced negotiations with £90 million of potential rent. As a result, it tightened capex guidance for 2026 to £500 million to £550 million, the top end of the previous range of £450 million to £550 million.

Pro forma adjusted net value per share is 905 pence, down from 925p at the end of 2025, reflecting certain differences in approach by a new UK valuer regarding yield assumptions in some of urban assets.

In addition, Segro reiterated its opposition to the bid from Prologis, calling it "opportunistic, one-sided and inadequate."

"Combining with Prologis would materially dilute Segro shareholders' exposure to its industrials, logistics and data centre development upside opportunity, exchanging full ownership of Segro's unique and irreplicable portfolio for a materially lower shareholding in a different, more US-focused portfolio," said Chief Executive David Sleath.

In June, San Francisco, California-based Prologis made an all-share proposal under which Segro shareholders would receive 0.084 new Prologis shares for each Segro share. The bid valued the UK warehouse landlord at £12.6 billion or around 925 pence per share.

Segro rejected the approach and said Prologis is trying to acquire Segro "on the cheap".

Shares in Segro fell 0.6% to 875.40p each in London on Wednesday.

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