Segro
Website:
Segro
Index:
FTSE 100
EPIC: SGRO
Supersector:
Real Estate
Sector:
Real Estate Investment Trusts
Subsector:
Industrial and Office REITs
Market Cap:
£9.64B
Payout Frequency: Semi-Annual
Segro Dividend Analysis and Summary
Key Dividend Information
- Final dividend: 21.4 pence per share (up 5.9% YoY; prior year: 20.2p)
- Full-year dividend (FY2025): 31.1 pence per share (up 6.1% YoY; prior year: 29.3p)
- Ex-dividend date: 26/03/2026
- Record date: 27/03/2026
- Payment date: 08/05/2026
Coverage and Policy Signals
- Adjusted EPS (2025): 36.6p (up 6.1% YoY) vs dividend 31.1p ? payout c.85% (coverage ~1.18x), consistent with UK REIT norms.
- Management reiterates aim to deliver “further compounding growth in earnings and dividends.”
Short Analysis: Sustainability and Growth
- Earnings support: Like-for-like net rental income up 6.0%; occupancy 94.9%; ERV growth 2.3%. Record £99m new rent secured provides forward earnings visibility.
- Embedded growth: Identified £152m of income upside (reversion and leasing vacancy) plus development pipeline at an attractive 7.1% yield and high pre-let content (55%).
- Balance sheet: LTV 31%, net debt/EBITDA 8.4x, average cost of debt 2.6%. Leverage moderate for the sector; low funding cost continues to underpin cash distributions.
- Capital allocation: 2026 development capex guided at £450–550m (incl. ~£150m infrastructure), to be supported by planned disposals at or above the upper end of 1–2% of portfolio. This rotation should fund growth while preserving dividend capacity.
- Trajectory: FY dividend growth of 6.1% matched to adjusted EPS growth suggests a disciplined, sustainable progression rather than overextension.
Structural Changes and Policy Commentary
- No structural changes (demergers, M&A, share consolidation) disclosed.
- Strategic emphasis on industrial/logistics and a sizeable data centre opportunity (2.5GW powered land, 1.1GW pre-lettable by end-2028) could enhance medium-term cash flows and support dividend growth, subject to execution.
Risks and Flags to Dividend Stability
- Execution risk on the development and data centre pipelines; timing of pre-lets and completions may create earnings lumpiness.
- Disposal dependence: 2026 plan assumes elevated disposals to fund capex; weaker investment markets could slow asset sales or compress proceeds.
- Payout headroom: c.85% payout leaves less buffer if adjusted earnings soften.
- Financing environment: Average debt cost edged up to 2.6%; further increases or refinancing at higher rates would pressure interest cover and dividend headroom.
- Valuation sensitivity: Modest portfolio valuation gains (+1.0%) highlight exposure to yield shifts; adverse moves could constrain balance sheet flexibility.
Read more
Segro Annual Dividend Yield - 4.05%
Dividends Used in Calculation:
| Ex-Dividend Date |
Payment Date |
Type |
Amount |
Currency |
| 27/03/2025 |
14/05/2025 |
Final |
20.20p |
GBX |
| 07/08/2025 |
19/09/2025 |
Interim |
9.70p |
GBX |
Total (Annual Dividends Per Share):
29.90p
Dividend Yield =
Annual Dividends Per Share (29.90p)
÷ Share Price (737.6p)
= 4.05%
Segro Dividend History
| Ex Dividend Date |
Payment Date |
Type |
Amount |
Currency |
| 26/03/2026 |
08/05/2026 |
Final |
21.4000p |
GBX |
| 07/08/2025 |
19/09/2025 |
Interim |
9.70p |
GBX |
| 27/03/2025 |
14/05/2025 |
Final |
20.20p |
GBX |
| 08/08/2024 |
20/09/2024 |
Interim |
9.10p |
GBX |
| 14/03/2024 |
03/05/2024 |
Final |
19.10p |
GBX |
| 10/08/2023 |
22/09/2023 |
Interim |
8.70p |
GBX |
| 16/03/2023 |
04/05/2023 |
Final |
18.20p |
GBX |
| 11/08/2022 |
23/09/2022 |
Interim |
8.10p |
GBX |
| 17/03/2022 |
04/05/2022 |
Final |
16.90p |
GBX |
| 12/08/2021 |
24/09/2021 |
Interim |
7.40p |
GBX |
| 18/03/2021 |
04/05/2021 |
Final |
15.20p |
GBX |
| 13/08/2020 |
24/09/2020 |
Interim |
6.90p |
GBX |
| 19/03/2020 |
01/05/2020 |
Final |
14.40p |
GBX |
| 15/08/2019 |
23/09/2019 |
Interim |
6.30p |
GBX |
| 21/03/2019 |
02/05/2019 |
Final |
13.25p |
GBX |
| 16/08/2018 |
28/09/2018 |
Interim |
5.55p |
GBX |
| 22/03/2018 |
03/05/2018 |
Final |
11.35p |
GBX |
| 17/08/2017 |
29/09/2017 |
Interim |
5.25p |
GBX |
| 23/03/2017 |
04/05/2017 |
Final |
11.20p |
GBX |
| 18/08/2016 |
30/09/2016 |
Interim |
5.20p |
GBX |
| 24/03/2016 |
05/05/2016 |
Final |
10.60p |
GBX |
| 20/08/2015 |
02/10/2015 |
Interim |
5.00p |
GBX |
| 26/03/2015 |
08/05/2015 |
Final |
10.20p |
GBX |
| 27/08/2014 |
03/10/2014 |
Interim |
4.90p |
GBX |
| 26/03/2014 |
09/05/2014 |
Final |
9.90p |
GBX |
| 04/09/2013 |
04/10/2013 |
Interim |
4.90p |
GBX |
| Year |
Interim |
Final |
Currency |
Total |
Change |
| 2024 |
9.100 |
20.200 |
GBX |
29.300 |
5.390 |
| 2023 |
8.700 |
19.100 |
GBX |
27.800 |
5.700 |
| 2022 |
8.100 |
18.200 |
GBX |
26.300 |
8.230 |
| 2021 |
7.400 |
16.900 |
GBX |
24.300 |
9.950 |
| 2020 |
6.900 |
15.200 |
GBX |
22.100 |
6.760 |
| 2019 |
6.300 |
14.400 |
GBX |
20.700 |
10.100 |
| 2018 |
5.550 |
13.250 |
GBX |
18.800 |
13.250 |
| 2017 |
5.250 |
11.350 |
GBX |
16.600 |
1.210 |
| 2016 |
5.200 |
11.200 |
GBX |
16.400 |
5.120 |
| 2015 |
5.000 |
10.600 |
GBX |
15.600 |
3.310 |
| 2014 |
4.900 |
10.200 |
GBX |
15.100 |
2.020 |
| 2013 |
4.900 |
9.900 |
GBX |
14.800 |
|
Segro Dividend Calculator
Segro Dividend Growth
| Dividend Growth (1Y) |
6.14%
|
| Dividend CAGR (5Y) |
7.07%
|
| Years of Growth |
11
|
| Payout Ratio |
73.5%
|
| Buyback Yield |
-1.75%
|
| Shareholder Yield |
2.72%
|
| P/E Ratio (TTM) | 17.09 |
|---|
| Forward P/E | 18.04 |
|---|
| P/FCF | 25.63 |
|---|
| Earnings Yield | 5.86% |
|---|
| FCF Yield | 3.9% |
|---|
| ROE | 4.53% |
|---|
| ROCE | 2.93% |
|---|
| Profit Margin | 75.9% |
|---|
| Operating Margin | 68.73% |
|---|
| Gross Margin | 78.79% |
|---|