Segro raises dividend as adjusted profit, new headline rent increase

Segro PLC on Thursday reported "a strong set of results" for the first half, including an increased dividend, and expects "ongoing growth" in the years to come.

The London-based warehouse property investor, whose board on July 22 backed a "best and final" £14.0 billion takeover bid from US rival Prologis Inc, reported pretax profit of £9 million for the first half of 2026, down from £264 million the previous year.

But adjusted pretax profit, which does not include recognition of the portfolio's realised and unrealised property loss, increased 6.3% to £268 million from £252 million.

Segro also reported a loss per share of 0.4 pence, against EPS of 18.3p, while adjusted EPS increased 6.6% to 19.3p from 18.1p.

Net rental income increased 5.3% on a like-for-like basis for the half-year, slowing from 7.8% the year before. The company also secured £53 million in new headline rent, up from £31 million the previous year.

Segro declared a 10.14p per share interim dividend, up 4.5% from 9.7p the year before.

Assets under management decreased to £21.74 billion as of June 30 from £22.00 billion six months prior, while Segro's portfolio valuation decreased 1.2% to £18.70 billion from £18.96 billion.

Its net asset value per share was 883p, down from 906p at December 31, while the adjusted NAV per share decreased to 902p from 925p.

"Segro has delivered a strong set of results in the first half of 2026," Chief Executive Officer David Sleath commented. "We secured £53 million of new headline rent and have a record pipeline of development projects under construction or in advanced negotiations, underpinned by improving occupier demand for high-quality, well-located industrial, logistics and data centre space.

"We remain focused on disciplined capital allocation, recycling assets above book value and investing in higher-return opportunities. This, along with continued cost discipline and our focus on ensuring we have a capital-efficient corporate structure, is expected to support ongoing growth in earnings and dividends in the years ahead."

The acquisition proposal from Prologis values Segro at 1,031.70 pence per share, or around £14.0 billion, based on the latter's closing stock price on July 21. It comprises 0.0920 new Prologis shares for each Segro share, alongside a partial cash alternative of up to £3.5 billion, representing 25% of the total consideration.

Including Segro's expected 2026 final dividend of up to 22.56p per share, shareholders would receive up to 1,054.3p per share. They would also retain the 2026 interim dividend of up to 10.14p per share.

Prologis also agreed to commit to establishing a secondary listing of its shares on the London Stock Exchange before completion, should it make a firm offer.

Segro shares were down 0.2% at 967.80p each on Thursday morning in London, giving it a market capitalisation of around £13.10 billion.

Copyright 2026 Alliance News Ltd. All Rights Reserved.