Slide 1: £573m Rights Issue: Acquisition of Aviva's 50% Interest in APP
SEGRO £573m RIGHTS ISSUE ACQUISITION OF AVIVAS 50% INTEREST IN AIRPORT PROPERTY PARTNERSHIP (APP) PURSUE ADDITIONAL DEVELOPMENT OPPORTUNITIES
Slide 2: Disclaimer
Disclaimer SEGRO The securities referred to in this presentation and which are to be offered in the rights issue also referred to herein (the “Rights Issue’) will not be registered under the U.S. Securities Act of 1933, as amended (the "Securities Act) or under the securities laws of any state or ot
Slide 3: Transaction overview
Transaction overview SEGR' Building scale in an attractive core market Taking advantage of strong occupier demand * Gaining full ownership and control of unique * Opportunity for value and earnings accretion portfolio in an attractive, supply-constrained * Strong momentum in current and near-term ma
Slide 4: Rationale for acquisition and investment in new opportunities
Rationale for acquisition and investment in new opportunities SEGRO Positive market * Strong occupier demand for prime big box and urban warehouse assets in UK and ous Continental Europe conditions _ ; ; 7 ; * Structural tailwinds from rise of e-commerce and convenience retailing and on-going urbani
Slide 5: APP Acquisition
SEGRO APP ACQUISITION
Slide 6: Gaining full control of attractive portfolio focused on Heathrow
Gaining full control of attractive portfolio focused on Heathrow SEGRO APP portfolio statistics (31 December 2016) Gross Asset Value £1,097m - Standing assets £1, £9m - Land £20M Annualised rent - Passing £42m - ERV £67m Size 350,000 sqm Yield profile - Net initial 3.6% - ToppedupNIY 4.2% - Equivale
Slide 7: Greater operational flexibility; opportunities to add value
Greater operational flexibility; opportunities to add value SEGR' Near-term cash generation from rent-free expiry and void reduction Medium-term opportunity from capturing reversionary rents, particularly £11m from expiring leases on peppercorn rents in 2019 APP annualised rent at 31 Dec 2016 80 14
Slide 8: Profile of disposal assets — efficient capital recycling
Profile of disposal assets — efficient capital recycling SEGRO Disposal portfolio statistics (31 December 2016) Gross Asset Value £149.9m HM) | Passing rent £6m Size 70,000 sq m Yield profile - Net initial 3.7% - Topped-up NIY 4.8% Vacancy (by ERV) 2.5% WAULT - To break 7.8 years - To expiry 8.7 yea
Slide 9: Development Pipeline
SEGRO DEVELOPMENT PIPELINE
Slide 10: Development momentum into 2017 and beyond...
Development momentum into 2017 and beyond... SEGRO Significant yield premium from developments Majority pre-et with limited speculative risk (Development capex and yields, 2014-1 7e) (Letting status of development completions in 2012-16, %) 350 10% 100% ° Wom F 300 9.1% . S 8.7% 8.2% \ aa 8% & 80% E
Slide 11: Current development pipeline
@ Current development pipeline * 540,480 sq m of space under construction . * Current book value £162m; £171m cost ° to complete €« . * £27m potential gross rent; £16m (61%) secured through pre-lets * Projected 7.7% yield on total cost 0) Near-term development projects ® Future development pipeline!
Slide 12: Substantial opportunity to grow rental income
Substantial opportunity to grow rental income SEGRO Annualised gross cash rent', £ millions £174m from land bank and land options (as at 31 December 2016) 1 f 1 sss £93m potential from current activity Passing rent at = Rent in Reversion to Vacant space ERV Current Near-term Future Land held Total 3
Slide 13: Transaction Summary
SEGRO S TRANSACTION SUMMARY
Slide 14: Summary rights issue and transaction information
Summary rights issue and transaction information SEGRO Rights issue terms! Transaction structure Proposed gross proceeds £573m Net proceeds £556m Rights issue terms 1 for 5 Acquisition of APP £365m2 Closing price at 9 March 2016 (cum div) 496.6p Funded by Issue price (ex div) 345p i Theoretical ex-r
Slide 15: Summary pro forma balance sheet
Summary pro forma balance sheet! SEGRO All figures in £m 31 Dec 2016 Acquisition Consideration? 31 Dec 2016 Net proceeds Pro forma for pro forma of Rights Issue? ~— Acquisition and (Acquisition) Rights Issue Investment properties 4,714.4 1,096.8 (149.9) 5,661.3 5,661.3 Investment in joint ventures 1
Slide 16: Rationale for acquisition and investment in new opportunities
Rationale for acquisition and investment in new opportunities SEGRO Supportive market * Strong occupier demand for prime big box and urban warehouse assets in UK and ous Continental Europe conditions _ ; ; 7 ; * Structural tailwinds from rise of e-commerce and convenience retailing and on-going urba
Slide 17: Appendix
SEGRO APPENDIX
Slide 18: SEGRO portfolio at December 2016
SEGRO portfolio at 31 December 2016 SEGRO Portfolio by type and location (valuation, SEGRO share) Customer sectors (headline rent, SEGRO share) Higher value use, 6% Other 7 Services & Utilities 8% Food and general manufacturing 20% Big box warehouses 40% Wholesale & Retail Distribution 9% Parcel del
Slide 19: 2016 Full Year Results Summary
2016 Full Year Results Summary SEGRO +7.1% +4.0% +5.1% +8.0% 33% Adj EPS Ifl net rental DPS EPRA NAV LTV ratio (19.7p) income (16.4p) (500p) * Strong results and financial position = — Reflecting — _ Disciplined capital allocation and operational excellence - Favourable demand/supply fundamentals =
Slide 20: 2016 performance driven by disciplined capital allocation & operational excellence
2016 performance driven by disciplined capital allocation & operational excellence SEGRO Developed and let * Low vacancy rate of 5.7% £302m of development capex in . . 2016 * 4.0% like for like rental growth * 421,600 sq m new space * £45m contracted headline rent, completed — aad including £23m of
Slide 21: Disciplined capital allocation central to SEGRO strategy
Disciplined capital allocation central to SEGRO strategy SEGRO Key elements of SEGRO strategy To be the pre-eminent owner-manager and developer of industrial and warehouse properties in Europe anda leading income-focused REIT Disciplined Capital ff Operational Allocation Excellence Efficient capital
Slide 22: Development potential from land bank
Development potential from land bank SEGRO Geographic split of land bank, by potential ERV! Development land bank (31 December 2016) (31 December 2016) Denmark Russia * Gdarisk Hamburg Warsaw « Pozna * Midlands Amsterdam Bets . boda Londons . Leipzig . Diisseldorf : - Brussels ® «Cologne elas Frankf
Slide 23: Prime logistics yields vs bond yields
Prime logistics yields vs 10 year bond yields SEGRO 12.0 10.0 8.0 6.0 Warsaw: 6.0% Paris: 5. 5% Dusseldorf: 4.9% 4.0 London: 4.5% 2.0 UK 10yr bond: 1.2% 0.0 Germany 1Oyr bond: 0.2% 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Source: CBRE, Bloomberg (data correct at 31 December 2
Slide 24: Illustrative rights issue effects
Illustrative rights issue effects SEGRO Pre Issue 1 for 5 rights issue ; Post issue Number of shares 830.2m H 166.0m ' 996.2m Share price (ex-div, 9 March 2017)! (A) 485.4p ' ; Issue price (B) ' 345p Theoretical ex-rights price (TERP) (C) 1 I 462.0p Equity value £4,030m 1 £573m ; £4,603m Theoretical