Finance
Warehousing group Segro upbeat on occupier demand after profit jump
Published by Global Banking and Finance Review
Posted on February 14, 2025
2 min readLast updated: January 26, 2026
Global Banking and Finance Review
Company
Published by Global Banking and Finance Review
Posted on February 14, 2025
2 min readLast updated: January 26, 2026
Segro reports a 15% profit increase for 2024, driven by strong occupier demand and rental income growth, indicating a recovery for REITs.
(Reuters) -The pan-European warehousing group Segro said on Friday that the increased demand it had seen from tenants in late 2024 has continued into the early weeks of this year, after reporting a 15% jump in 2024 profit, slightly below the market view.
Shares in the FTSE 100 firm, which have gained more than 21% in 2024, rose as much as 2.4% to 739 pence in early trade.
Strong rental income growth and improved property valuations suggest a recovery for real estate investment trusts (REITs) such as Segro as central banks extend their monetary easing cycle.
Segro CEO David Sleath said conversations with occupiers have gained momentum in recent weeks, raising expectations of a rise in leasing and pre-letting activity.
Segro's annual results signalled a turnaround for the industrial property market in the second half of 2024, particularly given the challenges facing the UK real estate sector in an elevated interest rate environment, Oli Creasey, head of property research at Quilter Cheviot, said in a note.
Segro, listed in both London and Paris, raised its full-year dividend pay by 5.4% to 29.3 pence per share.
The London-based company, which has warehouses in Britain and seven other European countries, reported adjusted pre-tax profit of 470 million pounds ($590 million) for 2024, compared with LSEG analysts' consensus expectations of 473.1 million pounds. Net rental income rose 7% to 628 million pounds.
The group, which manages big box and urban warehouses among other assets, said its adjusted net asset value - a key metric that gauges the value of its properties - was flat at 907 pence per share in 2024.
($1 = 0.7960 pounds)
(Reporting by Aby Jose Koilparambil in Bengaluru; Editing by Subhranshu Sahu and Kevin Liffey)
The article discusses Segro's profit increase and strong occupier demand in the warehousing sector.
Segro's shares rose by 2.4% following the profit announcement.
Net rental income rose by 7% to 628 million pounds.
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