Market's view on Segro
Published on April 2024
- Segro is in a strong position to acquire a Tesla warehouse in the Netherlands for €48 million.
- Observations note inconsistencies in forecasts regarding interest rate cuts, impacting market sentiments.
- Segro has successfully extended a lease for a 6,000 sqm property in Prague.
- The company reports robust growth in rent roll for Q1 2024, driven by positive market dynamics, with £159 million in property disposals above book value from December 2023, indicating stabilising industrial and logistics asset values.
- Segro has potential for profitable developments with an average yield on cost between 7-8%, supported by recent equity raise proceeds.
- UBS and Jefferies have raised Segro’s price target, indicating a positive outlook from financial institutions.
- A new regional head has been appointed to lead Segro’s Thames Valley and Heathrow teams.
- Wanb Express UK Ltd has occupied the last available unit at Heathrow International Trading Estate, marking the estate as fully let.
- Segro has signed food firms to occupy 68,000 square feet of space in London, showing strong sector demand for modern units.
- Barclays and HSBC have upgraded their ratings for Segro, with increased price targets.
- Goldman Sachs upgraded Segro to ‘neutral’ and raised its price target.
- Segro secured a significant leasing agreement for a 1.2 million-square-foot unit at Northampton Park, which could become the biggest in the Midlands pending planning approval.