Slide 1: 2022 Full Year Results
2022 FULL YEAR RESULTS 17 FEBRUARY 2023
Slide 2: Clear & Consistent Strategy
CLEAR & CONSISTENT STRATEGY ERV growth +10.9% New rent contracted £98m Portfolio valuation -11.0% Uplift on rent reviews and +23% renewals Net investment £1.3bn Like-for-like rental growth +6.7% LTV ratio 32% Cost of Debt 2.5% Debt Maturity 8.6 years 2
Slide 3: Supply-Demand Dynamics Support Further Rental Growth
SUPPLY-DEMAND DYNAMICS SUPPORT FURTHER RENTAL GROWTH European take-up remains at historically high levels1 Low vacancy rate across all European markets2 45 Take-up 10 year average 8 40 7 UK Continental Europe 35 6 30 Take-up, million sqm 5 25 Vacancy, % 4 20 3 15 10 2 5 1 0 0 2012 2013 2014 2015 201
Slide 4: A Prime Portfolio of Assets and a Pan-European Operating Platform
A PRIME PORTFOLIO OF ASSETS AND A PAN-EUROPEAN OPERATING PLATFORM Portfolio split by geography and asset type (at 31 December 2022) Other £1.0bn Poland £1.4bn Italy London £1.7bn £6.4bn AUM France £2.8bn £20.9bn Thames Valley Germany £3.0bn £2.9bn National Logistics £1.7bn Other (2%) Urban (67%) Big
Slide 5: A Very Diversified Customer Base
A VERY DIVERSIFIED CUSTOMER BASE Customer sectors (headline rent, SEGRO share) 1,452 customers Other Services & 7% ultilities 7% Transport and logistics Top 20 customers = Technology, Media and Telecoms 22% 32% of total group 11% headline rent Wholesale and Retail Retail Distribution 19% 10% Post an
Slide 6: We Create the Space That Enables Extraordinary Things to Happen
WE CREATE THE SPACE THAT ENABLES EXTRAORDINARY THINGS TO HAPPEN Resilient Strong Meaningful Confident financial operational progress with outlook performance results Responsible SEGRO
Slide 7: We Create the Space That Enables Extraordinary Things to Happen
WE CREATE THE SPACE THAT ENABLES EXTRAORDINARY THINGS TO HAPPEN Resilient Strong Meaningful Confident financial operational progress with outlook performance results Responsible SEGRO
Slide 8: Full Year 2022 Financial Results
FULL YEAR 2022 FINANCIAL RESULTS £386m 31.0p 26.3p Adjusted profit before tax Adjusted earnings per share1 Dividend per share +8.4% +6.5% +8.2% £17.9bn 966p 32% Portfolio valuation Adjusted NAV per share3 Loan to value -11.0%2 -15.0% 1 Average number of shares was 1,206.6 million in 2022. Adjusted E
Slide 9: Consistently Delivering Strong Returns
CONSISTENTLY DELIVERING STRONG RETURNS Passing Rent Adjusted NAV1 per share 1,300 650 Adjusted NAV, pence 550 1,050 Passing rent, £m 450 800 1,137 350 587 966 518 550 814 462 700 378 556 650 250 324 350 478 288 300 150 2016 2017 2018 2019 2020 2021 2022 2016 2017 2018 2019 2020 2021 2022 Adjusted ea
Slide 10: 19% Growth in Net Rental Income
19% GROWTH IN NET RENTAL INCOME Proportionally consolidated net rental income (excluding joint venture fees) £33m £43m £522m £28m £439m £(14)m £(7)m JVs £110m Like for like NRI JVs £98m Group +6.7% UK +7.7% Reversion Proportion ally consolidate Indexation d net CE +4.9% rental income (excluding join
Slide 11: Driving 7% Increase in Earnings
DRIVING 7% INCREASE IN EARNINGS Adjusted income statement 2022 2021 Change £m £m Gross rental income 488 3981 Property operating expenses (76) (57)1 Net rental income 412 3411 +21% SELP performance fee: Joint venture fee income 30 52 – No performance fee was recognised during 2022 – See appendices s
Slide 12: Valuation Decline Due to H2 Yield Expansion
VALUATION DECLINE DUE TO H2 YIELD EXPANSION Portfolio value at 31 December 2022: £17.9 billion (at share) Portfolio UK Continental Europe -11.0% -13.1% -7.3% £1,000m Whole portfolio valuation change £500m £0m 650p (£500m) (£1,000m) (£1,500m) (£2,000m) (£2,500m) Total London Thames Valley UK Big Box
Slide 13: Yield Expansion Partially Offset by Rental Growth
YIELD EXPANSION PARTIALLY OFFSET BY RENTAL GROWTH Property yield1: 4.8% ERV growth2: +10.9% (+100bps) London 4.6% +110bps +10.3% Thames UK: 5.3% +120bps +13.2% Valley +11.5% National +14.1% 5.3% +150bps Logistics Germany 4.3% +70bps +9.5% France 4.8% +70bps Cont. +9.5% Eur: Italy 4.8% +100bps +6.5%
Slide 14: 2022 Financing Activity
2022 FINANCING ACTIVITY Diversified sources of finance Improved funding capacity • Proven access to funds from euro and sterling bond, US private placement and banking markets 4.0 £0.7bn £(1.3)bn 3.5 Accessed public markets swiftly and nimbly £1.9bn £(0.2)bn 3.0 • SEGRO and SELP established European
Slide 15: No Near Term Refinancing Requirements
NO NEAR TERM REFINANCING REQUIREMENTS Debt maturity by type and year Debt maturity 8.6 years (as at 31 December 2022) (FY21: 8.6 years) 2,000 1,800 Interest rate exposure 1,600 83% fixed, 95% fixed or capped 1,400 1,200 £ million 1,000 800 600 400 200 0 2023 2024 2025 2026 2027 2028 2029 2030 2031 2
Slide 16: Low Average Cost of Debt and High Liquidity
LOW AVERAGE COST OF DEBT AND HIGH LIQUIDITY LTV ratio and average cost of debt Credit rating (incl share of joint ventures), 2014-22 A (Fitch senior unsecured) 60% 5.0% £2.2bn committed liquidity 4.2% cash and available bank facilities 3.5% 4.0% 3.4% 4.5x interest cover Average cost of debt 40% 2.5%
Slide 17: 2022 Financial Summary
2022 FINANCIAL SUMMARY 7% like-for-like rental growth and adjusted earnings growth 2022 full year dividend increased by 8% 11% decrease in the value of the portfolio, due to yield expansion Strong balance sheet to support future growth 17 Slough Trading Estate
Slide 18: We Create the Space That Enables Extraordinary Things to Happen
WE CREATE THE SPACE THAT ENABLES EXTRAORDINARY THINGS TO HAPPEN Resilient Strong Meaningful Confident financial operational progress with outlook performance results Responsible SEGRO
Slide 19: Record Level of New Headline Rent Signed
RECORD LEVEL OF NEW HEADLINE RENT SIGNED Contracted rent1 Net new rent on existing space New rent contracted 100 90 80 Annualised rental income, £m 70 60 50 40 30 20 10 0 2015 2016 2017 2018 2019 2020 2021 2022 1 Net new rent on existing space reflects headline rent agreed on new leases less passing
Slide 20: Platform Delivering Strong Operating Metrics
PLATFORM DELIVERING STRONG OPERATING METRICS Significant capture of reversion leading to record level High levels of customer retention and occupancy2 of uplift from renewals and reviews1 Occupancy 96% 25 100 Customer retention rate and occupancy rate, % +23% 90 Rent change on review and renewal, %
Slide 21: Highly Profitable and Sustainable Development
HIGHLY PROFITABLE AND SUSTAINABLE DEVELOPMENT 60 £46m potential headline rent (80% leased) 50 639,200 sqm Potential new headline rent, £m of new space completed (34 projects) 40 30 7.4% yield on cost 20 47% profit on cost 10 100%1 0 rated BREEAM ‘Very Good’ or better (at least 68% 2015 2016 2017 201
Slide 22: Development Completions During 2022
DEVELOPMENT COMPLETIONS DURING 2022 Stanley Black & Decker, Poland SEGRO Park Tottenham, London SEGRO Park Collégien, Paris Iron Mountain, Slough Trading Estate 22
Slide 23: Continuing to Be Disciplined in Our Approach to Capital Allocation
CONTINUING TO BE DISCIPLINED IN OUR APPROACH TO CAPITAL ALLOCATION DEVELOPMENT ACQUISITIONS DISPOSALS • £638m development capex • £451m land • Standalone warehouses in non-core Southern European locations • £149m infrastructure spend • £261m income producing land • SEGRO sales to SELP • £155m invest
Slide 24: We Create the Space That Enables Extraordinary Things to Happen
WE CREATE THE SPACE THAT ENABLES EXTRAORDINARY THINGS TO HAPPEN Resilient Strong Meaningful Confident financial operational progress with outlook performance results Responsible SEGRO
Slide 25: Meaningful Progress with Responsible SEGRO
MEANINGFUL PROGRESS WITH RESPONSIBLE SEGRO CHAMPIONING LOW-CARBON GROWTH INVESTING IN OUR LOCAL NURTURING COMMUNITIES TALENT AND ENVIRONMENTS 25 SEGRO Park Tottenham, London
Slide 26: Championing Low-Carbon Growth
CHAMPIONING LOW-CARBON GROWTH >68% visibility of customer energy use 44MW Green lease clauses to help us Mandatory Sustainability Policy for all achieve our net zero-carbon goals development projects solar capacity -10% average embodied carbon intensity Increasing our solar capacity by retrofitting
Slide 27: Investing in Our Communities and Local Environments
INVESTING IN OUR COMMUNITIES AND LOCAL ENVIRONMENTS 10 26 62 Community community projects unemployed people Investment Plans delivered into employment 35 387 7,000 students mentored young people employee by SEGRO inspired about the volunteering days employees world of work 780 UK Living people suppo
Slide 28: Nurturing Talent
NURTURING TALENT Early NES careers Management accreditation Academy recruitment Diversity #10,000 black 91% and employee inclusivity interns programme engagement training Cost of Wellbeing living fund payment 28
Slide 29: We Create the Space That Enables Extraordinary Things to Happen
WE CREATE THE SPACE THAT ENABLES EXTRAORDINARY THINGS TO HAPPEN Resilient Strong Meaningful Confident financial operational progress with outlook performance results Responsible SEGRO
Slide 30: Long-Term Structural Drivers Supporting Diverse Occupier Demand
LONG-TERM STRUCTURAL DRIVERS SUPPORTING DIVERSE OCCUPIER DEMAND DATA & URBANISATION DIGITALISATION SUPPLY CHAIN EFFICIENCY & SUSTAINABILITY RESILIENCE 30
Slide 31: Significant Reversionary Potential to Be Captured
SIGNIFICANT REVERSIONARY POTENTIAL TO BE CAPTURED Accumulated reversion to ERV in the portfolio 1 Lease event uplift opportunity1,2 140 CE UK 140 15 120 9 120 17 100 Rental uplift potential, £m 100 Reversion to ERV, £m 19 80 130 80 26 60 60 44 40 89 40 20 20 0 0 2023 2024 2025 2026 2027 >2028 Curren
Slide 32: Demand-Supply Conditions Supportive of Further Rental Growth
DEMAND-SUPPLY CONDITIONS SUPPORTIVE OF FURTHER RENTAL GROWTH SEGRO SEGRO Demand Supply Property Type Region % of portfolio1 3 year average ERV growth conditions conditions ERV growth expectations UK 53% STRONG LIMITED 11.7% Urban 3-6% pa warehouses Continental 14% STRONG LIMITED 5.2% Europe UK 8% ST
Slide 33: >£530 Million of Potential Rental Income from Future Development
>£530 MILLION OF POTENTIAL RENTAL INCOME FROM FUTURE DEVELOPMENT SEGRO land bank (31 December 2022) gross rent (£m) Estimated cost Development Development to complete Proportion Expected Potential delivery pipeline pre-let (sq m) yield3 (£m) Area 1-12 Current 749,000 3282 67 6.5% 73% months Near-ter
Slide 34: Potential >£1.3 Billion Rental Income
POTENTIAL >£1.3 BILLION RENTAL INCOME Annualised gross cash passing rent1, £ million (as at 31 December 2022) £297m potential from current activity £446m from land bank and land options 160 4 +127% 286 4 +51% 67 19 164 47 130 1,330 Plus: further growth potential from Plus: further growth potential f
Slide 35: Confident Outlook
CONFIDENT OUTLOOK Supportive structural trends Restricted Strong land balance availability sheet limits supply response Market leading pan-European Prime operating portfolio platform of existing assets Exceptional landbank for development 35 SEGRO Park Cologne City, Germany
Slide 36: We Create the Space That Enables Extraordinary Things to Happen
WE CREATE THE SPACE THAT ENABLES EXTRAORDINARY THINGS TO HAPPEN Resilient Strong Meaningful Confident financial operational progress with outlook performance results Responsible SEGRO
Slide 37: Q&A 2022 Full Year Results
Q&A 2022 Full Year Results SEGR°
Slide 38: Appendix: Portfolio and Financial Data
APPENDIX 1 Portfolio and Financial Data
Slide 39: Adjusted Income Statement (JVs Proportionally Consolidated)
ADJUSTED INCOME STATEMENT (JVS PROPORTIONALLY CONSOLIDATED) 2022 2021 Group JVs Total Group JVs Total £m £m £m £m £m £m Gross rental income 488 119 607 398 105 503 Property operating expenses (76) (9) (85) (57) (7) (64) Net rental income 412 110 522 341 98 439 JV management fee income1 30 (13) 17 52
Slide 40: SELP Performance Fee
SELP PERFORMANCE FEE Performance fee calculated based on the IRR since inception in October 2013 compared to a hurdle rate. The final calculation will take place based on the joint venture position in October 2023. A performance fee of €29m (€15m at share) was recognised by SEGRO in 2021. No further
Slide 41: Pro Forma 2022 Accounting Net Rental Income
PRO FORMA 2022 ACCOUNTING NET RENTAL INCOME Group JVs Total - Pro forma 2022 net rental income assuming £m £m £m disposals, acquisitions and let developments completed as at 1 January 2022 2022 net rental income 412 110 522 - One-off items (e.g. rates refunds) removed Full year impact of: Disposals
Slide 42: Total Cost Ratio
TOTAL COST RATIO Total cost ratio, 2021-22 (proportionally consolidated) 2022 2021 Incl. joint ventures at share £m £m Gross rental income (less reimbursed costs) 604 500 Property operating expenses 76 57 Administration expenses 59 59 JV operating expenses 25 20 JV management fees2 (37) (34) Total c
Slide 43: Balance Sheet
BALANCE SHEET (JVS PROPORTIONALLY CONSOLIDATED) 31 December 2022 31 December 2021 Group JVs Total Group JVs Total £m £m £m £m £m £m Investment properties 14,939 3,022 17,961 15,492 2,909 18,401 Trading properties 35 - 35 45 - 45 Total properties 14,974 3,022 17,996 15,537 2,909 18,446 Investment in
Slide 44: 15% Decrease in Adjusted NAV
15% DECREASE IN ADJUSTED NAV1 Components of Adjusted NAV change, 31 December 2021 to 31 December 2022 31p (25)p (179)p 1,137p 7p (5)p 1,137 966 31 December 2021 2022 Adjusted EPS Dividends Realised and unrealised Exchange rate Other (incl tax) 31 December 2022 losses 1 Adjusted NAV is in line with E
Slide 45: Portfolio Performance Breakdown
PORTFOLIO PERFORMANCE BREAKDOWN Whole Portfolio Valuation Change ERV Growth Group UK CE Group UK CE 8.2% 7.2% 5.2% 11.5% 10.9% 9.9% 7.3% 5.9% 6.0% -7.3% 4.7% -11.0% -11.3% 3.9% 3.6% -13.1% -16.6% -19.6% 1H22 2H22 FY22 1H22 2H22 FY22 45
Slide 46: Components of Valuation Change
COMPONENTS OF VALUATION CHANGE Portfolio -11.0% £500m £0m (£500m) Valuation change, £m 650p (£1,000m) (£1,500m) (£2,000m) (£2,500m) Total Held throughout Acquisitions Completed in the period BUC Land FY22 change: -13% -22% +7% +17% -12% 46
Slide 47: EPRA Performance Measures
EPRA PERFORMANCE MEASURES 31 December 2022 31 December 2021 £m £p per share £m £p per share EPRA Earnings 374 31.0 348 29.1 EPRA NTA 11,717 966 13,704 1,137 EPRA NRV 12,879 1,062 14,986 1,243 EPRA NDV 12,170 1,004 13,155 1,091 EPRA LTV 34.2% 24.6% EPRA net initial yield 3.7% 3.0% EPRA topped-up net
Slide 48: EPRA Capital Expenditure Analysis
EPRA CAPITAL EXPENDITURE ANALYSIS 2022 2021 - More than 72% of Completed properties capex was for major Group JVs Total Group JVs Total refurbishment, infrastructure and fit- £m £m £m £m £m £m out costs prior to re-letting which is expected to be value-enhancing Acquisitions 800 176 976 1,280 159 1,
Slide 49: Euro Currency Exposure and Hedging
EURO CURRENCY EXPOSURE AND HEDGING Balance sheet, £m - €1.13:£1 as at 31 December 2022 (31 December 2022) - € assets 76% hedged by € liabilities 7,000 6,000 - €1.7bn (£1.5bn) of residual exposure – 13% of Group NAV Assets 76% - Illustrative NAV sensitivity vs €1.13: 5,000 hedged 4,000 - +5% (€1.19)
Slide 50: Look-Through Loan-to-Value Ratio and Cost of Debt
LOOK-THROUGH LOAN-TO-VALUE RATIO AND COST OF DEBT 31 December 2022 Weighted average cost of debt, % Fixed Interest Cover % £m Gross debt, Net debt, including excluding Fixed and Capped cover of commitment fees and non- Fixed Cover of Net debt commitment fees net debt cash interest and non-cash inter
Slide 51: Positioning SEGRO to Deliver on Its Purpose
POSITIONING SEGRO TO DELIVER ON ITS PURPOSE Investing in our local Championing Low-carbon growth Nurturing talent communities and environments Segro recognises that the world faces a climate SEGRO is an integral part of the communities in SEGRO’s people are vital to and inseparable from emergency an
Slide 52: Urban and Big Box Warehouses – Complementary Asset Types
URBAN AND BIG BOX WAREHOUSES – COMPLEMENTARY ASSET TYPES Urban warehouses (67%) Big boxes (31%) Portfolio by type: - Smaller units, generally <10,000 sq m - Larger units, generally over 10,000 sq m (valuation, SEGRO share) Data as at 31 December 2022 - Diverse range of uses (including ‘last mile’ -
Slide 53: Enhanced, De-Risked Development Programme
ENHANCED, DE-RISKED DEVELOPMENT PROGRAMME Development-led growth1 The majority of which is pre-let 900 100% 800 80% 700 Development capex, £m 600 60% 500 400 40% 300 200 20% 100 0 0% 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Pre-let Spec
Slide 54: Land Bank Provides Optionality and Opportunity for Growth
LAND BANK PROVIDES OPTIONALITY AND OPPORTUNITY FOR GROWTH 2,000 12.0% Net land utilisation, 2015-2022 1,800 (Based on opening book value or acquisition value) 10.0% 1,600 800 433 1,400 600 8.0% Land bank value, £m Land value, £m 1,200 400 135 86 (40) 68 1,000 6.0% 200 (84) (118) (28) 0 800 4.0% -200
Slide 55: SEGRO European Logistics Partnership (SELP) Headline Figures
SEGRO EUROPEAN LOGISTICS PARTNERSHIP (SELP) HEADLINE FIGURES Assets under Management Land and assets Equivalent yield (as at 31 December 2022) €6.8bn 4.8% €1,921m 1.8 Capital value change ERV growth €1,562m -7.3% 11.7% Assets under management, €m 1.6 1.4 €1,250m €1,204m 1.2 Headline rent ERV 1.0 €31
Slide 56: Appendix II: Market Data
APPENDIX II Market Data SEGRO
Slide 57: European Industrial Investment Volumes
EUROPEAN INDUSTRIAL INVESTMENT VOLUMES European industrial investment volumes European industrial investment volumes By geography, €bn By quarter, €bn 70 70 60 60 50 50 40 40 30 30 20 20 10 10 0 0 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2006 2007 2008 200
Slide 58: Prime Logistics Yields
PRIME LOGISTICS YIELDS 12.0 10.0 8.0 Warsaw: 5.3% London: 5.3% Yield, % Dusseldorf: 3.8% 6.0 Paris: 4.3% 4.0 2.0 0.0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Source: CBRE. 58
Slide 59: UK Logistics Market Supply-Demand Dynamics
UK LOGISTICS MARKET SUPPLY-DEMAND DYNAMICS Supply of warehouse space1 Take-up of warehouse space1 (million sq m) (million sq m) 10.0 25% 10.0 9.0 New / Early Marketed 9.0 Vacancy rate 8.0 20% 8.0 7.0 7.0 6.0 15% 6.0 5.0 5.0 4.0 10% 4.0 3.0 3.0 2.0 5% 2.0 1.0 1.0 0.0 0% 0.0 2009 2010 2011 2012 2013 2
Slide 60: French Logistics Market Supply-Demand Dynamics
FRENCH LOGISTICS MARKET SUPPLY-DEMAND DYNAMICS Supply of warehouse space1 Take-up of warehouse space2 (million sq m) (million sq m) 5.0 5.0 4.0 4.0 3.0 3.0 2.0 2.0 1.0 1.0 0.0 0.0 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 1 Source:
Slide 61: Other Continental European Take-Up
OTHER CONTINENTAL EUROPEAN TAKE-UP Take-up of warehouse space – Poland1 Take-up of warehouse space – Germany1 (million sq m) (million sq m) 8.0 8.0 7.0 7.0 6.0 6.0 5.0 5.0 4.0 4.0 3.0 3.0 2.0 2.0 1.0 1.0 0.0 0.0 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2012 2013 2014 2015 2016 2017 201
Slide 62: Forward-Looking Statements and Disclaimer
FORWARD-LOOKING STATEMENTS AND DISCLAIMER This document has been prepared by SEGRO plc (SEGRO) solely for use at the presentation of SEGRO’s results announcement in respect of the year ended 31 December 2022 (the Results Announcement). For the purposes of this disclaimer, ‘Presentation’ shall mean t