Slide 1: 2024 Half year results
Enabling extraordinary things 2024 Half year results 26 July 2024
Slide 2: Continuing to apply a clear and consistent strategy
Continuing to apply a clear and consistent strategy Driving our rents £48m New rent contracted +5.3% Like-for-like rental growth £27m Rent from new development Investing for growth £211m Development capex £190m Acquisitions £251m Disposals Strong balance sheet 30% LTV ratio 8.5x Net debt:EBITDA 2.7%
Slide 3: We create the space that enables extraordinary things to happen
We create the space that enables extraordinary things to happen Attractive Growing Driving rents Primed market earnings through asset for further dynamics & dividend management growth & development 3
Slide 4: We create the space that enables extraordinary things to happen
We create the space that enables extraordinary things to happen Attractive Growing Driving rents Primed market earnings through asset for further dynamics & dividend management growth & development 4
Slide 5: Long-term structural drivers remain intact
Long-term structural drivers remain intact Data & Urbanisation digitalisation Growth of e-commerce Growing urban populations Explosion of digital data Diverse and dynamic occupier base Adoption of AI Shrinking land supply Supply chain Sustainability optimisation Customer service Regulation Cost effi
Slide 6: Supply-demand balance is supportive of rental growth and profitable development
Supply-demand balance is supportive of rental growth and profitable development UK big box take-up1 UK big box speculative space under construction and vacancy2 70 30 10 9 60 25 Spec space under construction, million sq ft 8 50 7 20 Take-up, million sq ft 6 Vacancy rate, % 40 15 5 30 4 10 20 3 2 5 1
Slide 7: Data centre market experiencing exponential growth
Data centre market experiencing exponential growth European market supply and utilisation1 FLAP-D market has doubled in size 4 since 2018 (to 3.3 GW)1, with demand mostly focused on key Availability Zones 3 Artificial Intelligence is super- charging demand for data: Supply (GW) - Inference AI (user-
Slide 8: Investment markets showing signs of recovery
Investment markets showing signs of recovery European industrial investment volumes1 H1 investment volumes in line 60 with pre-pandemic averages 50 Improved investor appetite for real estate assets in line with increased 40 confidence for interest rate cuts By quarter, €bn 30 Attractive fundamentals
Slide 9: We create the space that enables extraordinary things to happen
We create the space that enables extraordinary things to happen Attractive Growing Driving rents Primed for market earnings through asset further dynamics & dividend management growth & development 9
Slide 10: Growing earnings and dividend
Growing earnings and dividend £ 227m 17.0p 9.1p Adjusted profit before tax Adjusted earnings per share1 Dividend per share +14.6% +6.9% +4.6% £ 17.8bn Portfolio valuation 891p Adjusted NAV per share3 30% Loan to value +0.0%2 -1.8% -4ppts 1. Average number of shares was 1,305 million on 30 June 2024.
Slide 11: 7% growth in net rental income
7% growth in net rental income Proportionally consolidated H1 net rental income (excluding joint venture fees)1 Like for like NRI Group +5.3% £2m -£6m Reversion UK +4.0% £15m Indexation -£5m CE +7.4% +£20m £14m £306m JVs - £66m Group - £240m £286m JVs - £62m Group - £224m 1H23 net rental income Like
Slide 12: Driving 7% increase in earnings
Driving 7% increase in earnings H1 2024 H1 2023 Equity placing: Adjusted income statement £m £m Change - Broadly neutral for EPS as Gross rental income 283 266 impact of new shares offset by lower net interest costs Property operating expenses (43) (42) Net rental income 240 224 +7.1% Net finance co
Slide 13: Valuation flat: UK at inflection point, Continental Europe bottoming out
Valuation flat: UK at inflection point, Continental Europe bottoming out Portfolio value1 at 30 June 2024: £17.8 billion (at share) Group UK Continental Europe 1H24 1H24 +0.0% +0.9% £0m Whole portfolio valuation change, £m 1H24 -£500m FY23 FY23 -1.4% -3.4% FY22 -5.1% -£1,000m FY23 -7.3% -4.0% -£1,50
Slide 14: Portfolio yield stable, ERV growth of 1.4%
Portfolio yield stable, ERV growth of 1.4% Property yield1 6-month 6-month yield change ERV growth2 31-Dec-23 30-Jun-24 Group 5.3% +10bps +1.4% UK 5.2% ─ +1.5% Germany 5.1% +20bps +1.1% France 5.5% ─ +1.3% +20bps +0.4% CE: Italy 5.7% +1.3% Poland 6.8% +30bps +3.3% 3 Other 5.4% ─ +1.1% 1. Net true eq
Slide 15: Balance sheet remains strong
Balance sheet remains strong LTV ratio and average cost of debt (incl share of joint ventures), 2014-1H24 £2.1bn committed liquidity1 60% 5.0% Available cash and undrawn committed facilities 4.2% 4.0% A- credit rating 3.5% SEGRO Fitch senior unsecured 3.4% 40% 3.1% 3.0% 8.5x 2.7% 2.5% net debt:EBITD
Slide 16: Growing earnings and dividend
Growing earnings and dividend 6.9% adjusted earnings growth 2024 half year dividend increased by 4.6% Valuation flat - UK at inflection point, Continental Europe bottoming out Strong balance sheet to support future growth SEGRO Park Coventry 16
Slide 17: We create the space that enables extraordinary things to happen
We create the space that enables extraordinary things to happen Attractive Growing Driving rents Primed for market earnings through asset further dynamics & dividend management growth & development 17
Slide 18: £48m of new rent secured from leasing and asset management activity
£48m of new rent secured from leasing and asset management activity Contracted rent1 70 60 Annualised rental income, £m 50 40 30 20 10 0 1H16 1H17 1H18 1H19 2H20 2H21 2H22 2H23 2H16 2H17 2H18 2H19 1H20 1H21 1H22 1H23 1H24 Existing space Developments 1. New rent contracted is total headline rent secu
Slide 19: £15m of reversion captured, retention remains high
£15m of reversion captured, retention remains high Capturing high levels of reversion…1 …retaining customers and maintaining UK +36% healthy levels of occupancy2 CE +7% 35 100 90 30 +31% Customer retention rate and occupancy rate, % 80 +28% Rent change on review and renewal, % 25 70 +23% 60 20 Occup
Slide 20: £133m embedded reversionary potential
£133m embedded reversionary potential 20% Reversionary potential1 (UK 28%, CE 9%) 140 140 120 120 £76m uplift opportunity 57 100 100 by Dec-26 80 80 Reversion to ERV, £m Rental uplift potential, £m 21 133 60 60 40 24 40 20 20 31 0 0 -20 -20 2016 2017 2018 2019 2020 2021 2022 2023 1H24 2024 2025 2026
Slide 21: £27m of potential new rent from development completions
£27m of potential new rent from development completions Development completions £27m 70 potential headline rent (78% leased) 60 269,100 sqm 50 of new space completed (13 projects) Potential new headline rent, £m 40 7.0% yield on cost 30 20 96%1 rated BREEAM ‘Excellent’ or better (100% ‘Very Good’ or
Slide 22: Delivering high-quality, sustainable space in Europe's largest cities
Delivering high-quality, sustainable space in Europe’s largest cities V-Park Grand Union Slough Trading Estate SEGRO Logistics Park Cerdanyola SEGRO Park Warsaw Żerań 22
Slide 23: Profitable development outlook
Profitable development outlook Positive occupier Speculative Rental growth Construction costs sentiment starts reduced continuing flat Current and near-term Land bank £49m £402m potential rent potential rent £247m £3.6bn capex capex Attractive 7-8% yield on cost See slide 47 for current, near-term a
Slide 24: Data centres: c.£200m of additional rent opportunity
Data centres: c.£200m of additional rent opportunity Focus on our existing markets which are located in key Availability Zones Targeting demand driven by Cloud and Inference AI Execution strategy: Slough Trading Estate - Preferred model is dark/ powered shells1 - Sale of powered land where long-term
Slide 25: Investing for growth through disciplined capital allocation
Investing for growth through disciplined capital allocation Rho Pero Development Acquisitions Agile capital recycling Including £52m for infrastructure Building scale in the Netherlands with three fully- Selective disposals of assets and land Developing on land we already own leased, highly-reversio
Slide 26: We create the space that enables extraordinary things to happen
We create the space that enables extraordinary things to happen Attractive Growing Driving rents Primed for market earnings through asset further dynamics & dividend management growth & development 26
Slide 27: A prime portfolio of assets and a market-leading operating platform
A prime portfolio of assets and a market-leading operating platform Portfolio split by geography and asset type (at 30 June 2024) Other £1.3bn UK Poland £1.3bn Hamburg Midlands Amsterdam Warsaw Berlin Poznań £1.6bn London & Tilburg Düsseldorf Łódź Thames Valley Italy Wroclaw AUM Lille Frankfurt Colo
Slide 28: High quality, diverse and growing customer base
High quality, diverse and growing customer base Customer sectors Services Transport and logistics Customers (headline rent, SEGRO share) & utilities 1,400 Other Wholesale and retail distribution Top 20 customers Post and parcel 7% 6% 24% 33% 8% of total group delivery headline rent 9% Retail Largest
Slide 29: A pathway to more than double our rent roll
A pathway to more than double our rent roll Annualised gross cash passing rent1, £ million (as at 30 June 2024) Plus: further growth potential from rising ERVs and indexation £522m 95 +120% 402 49 133 50 66 1,457 Plus: further growth potential from redevelopment opportunities within the portfolio 66
Slide 30: SEGRO primed for further profitable growth
SEGRO primed for further profitable growth Strong Supportive balance structural sheet trends Market leading Restricted land pan-European availability operating limits supply platform response Exceptional Prime portfolio landbank for of existing development assets 30
Slide 31: Q&A
Q&A 2024 Half year results ai]
Slide 32: Appendix: Portfolio and Financial Data
Appendix 1 Portfolio and Financial Data 32
Slide 33: Adjusted income statement (JVs proportionally consolidated)
Adjusted income statement (JVs proportionally consolidated) H1 2024 H1 2023 Group JVs Total Group JVs Total £m £m £m £m £m £m Gross rental income 283 70 353 266 66 332 Property operating expenses (43) (4) (47) (42) (4) (46) Net rental income 240 66 306 224 62 286 JV management fee income1 14 (6) 8 1
Slide 34: Pro forma H1 2024 accounting net rental income
Pro forma H1 2024 accounting net rental income Group JVs Total £m £m £m Pro forma H1 2024 net rental income assuming disposals, H1 2024 net rental income 240 66 306 acquisitions and let developments Half year impact of: completed as at 1 January 2024 Disposals since 1 January 2024 (2) - (2) Share of
Slide 35: Total cost ratio (proportionally consolidated)
Total cost ratio (proportionally consolidated) Half year to 30 June 2024 Half year to 30 June 2023 Incl. joint ventures at share £m £m Gross rental income (less reimbursed costs) 351 331 Property operating expenses 43 42 Administration expenses 35 33 JV operating and administrative expenses 11 11 JV
Slide 36: Balance sheet (JVs proportionally consolidated)
Balance sheet (JVs proportionally consolidated) 30 June 2024 31 December 2023 Group JVs Total Group JVs Total £m £m £m £m £m £m Investment properties 15,055 2,827 17,882 14,914 2,915 17,829 Trading properties 3 – 3 3 – 3 Total properties 15,058 2,827 17,885 14,917 2,915 17,832 Investment in joint ve
Slide 37: 1.8% decrease in Adjusted NAV
1.8% decrease in Adjusted NAV1 Components of Adjusted NAV change, 31 December 2023 to 30 June 2024 17p -19p -9p -3p -2p 907 891 31 December 2023 H1 2024 Adjusted EPS Dividends Equity share placing Exchange rate Other (incl tax) 30 June 2024 1. Adjusted NAV is in line with EPRA NTA. 37
Slide 38: EPRA performance measures
EPRA performance measures Half year to 30 June 2024 Half year to 30 June 2023 £m £p per share £m £p per share EPRA Earnings 221 16.9 193 15.9 EPRA NTA 12,069 891 11,500 937 EPRA NRV 13,248 978 12,669 1,032 EPRA NDV 12,293 908 11,983 976 EPRA LTV 32.0% 36.1% EPRA net initial yield 4.1% 3.8% EPRA topp
Slide 39: EPRA capital expenditure analysis
EPRA capital expenditure analysis Six months to 30 June 2024 Six months to 30 June 2023 >75% of Completed properties Group JVs Total Group JVs Total capex was £m £m £m £m £m £m for major refurbishment, Acquisitions 190 - 190 323 3 326 infrastructure and fit-out costs prior to re-letting Development
Slide 40: Low refinancing risk
Low refinancing risk Diverse, long duration debt profile Average debt maturity (as at 30 June 2024) 2,000 6.8 years 1,800 1,600 Interest rate exposure of gross debt 1,400 94% fixed rate or 1,200 subject to an active cap £ million 1,000 800 600 400 200 0 2030 2031 2032 2033 2034 2035 2036 2037 2038 2
Slide 41: Euro currency exposure and hedging
Euro currency exposure and hedging Balance sheet, £m (30 June 2024) - €1.18:£1 as at 30 June 2024 7,000 - € assets 78% hedged by € liabilities 6,000 - €1.6bn (£1.4bn) of residual exposure – 12% of Group NAV Assets 78% 5,000 hedged - Illustrative NAV sensitivity vs €1.18: 4,000 - +5% (€1.24) = -£65m
Slide 42: Look-through loan-to-value ratio and cost of debt
Look-through loan-to-value ratio and cost of debt 30 June 2024 Weighted average Hedging £m interest rate, % cover, % excluding including commitment fees Fixed Cover including commitment fees and non-cash interest active caps and non-cash interest Group gross borrowings1 4,794 2.8 3.1 95% Group cash
Slide 43: Net debt: EBITDA (SEGRO Group)
Net debt: EBITDA (SEGRO Group) 12 months ending 12 months ending 12 months ending 30 June 2024 30 June 2023 31 December 2023 £m £m £m Gross rental income 564 515 547 Property operating expenses (86) (82) (85) Administration expenses (65) (61) (63) Other fee income 7 6 5 JV management fee income 27 3
Slide 44: Positioning SEGRO to deliver on its purpose
Positioning SEGRO to deliver on its purpose Championing Investing in our local Nurturing Low-carbon growth communities and talent environments SEGRO recognises that the world faces a climate SEGRO is an integral part of the communities SEGRO’s people are vital to and inseparable Context emergency an
Slide 45: Urban and big box warehouses – complementary asset types
Urban and big box warehouses – complementary asset types Portfolio by type: (valuation, SEGRO share) Data as at 30 June 2024 Other1 Urban warehouses 9% Big boxes (65%) 2% (33%) Data centres 10% - Smaller units, generally <10,000 sq m - Larger units, generally over 10,000 sq m - Diverse range of uses
Slide 46: Data centre real estate models
Data centre real estate models CAPITAL REQUIREMENT, OPERATIONAL COMPLEXITY AND RISK Powered Dark/powered Fully Colocation Characteristics: land shell fitted Core real estate activity Source land, power and planning Build shell Complete fit-out Operate and maintain Leasing risk None Pre-let Speculati
Slide 47: Development pipeline and land bank
>£450 million of potential rental income from development gross rent (£m) SEGRO land bank (30 June 2024) Estimated cost Development Development to complete Proportion Expected Potential pipeline delivery Midlands Amsterdam Warsaw pre-let (sq m) yield3 Berlin Poznań Łódź Area (£m) London & Venlo Düss
Slide 48: Sizeable, derisked development programme
Sizeable, derisked development programme Development-led growth1 The majority of which is pre-let 900 100% 800 80% 700 600 Development capex, £m 60% 500 400 40% 300 200 20% 100 0 0% 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 1H24 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 1H2
Slide 49: Land bank provides optionality and opportunity for growth
Land bank provides optionality and opportunity for growth Net land utilisation, 2016-H1 2024 (Based on opening book value or acquisition value) 2,000 12.0% 800 433 1,800 600 10.0% 1,600 151 1,400 400 (40) 8.0% 86 1,200 Land bank value, £m 200 68 (118) (28) (84) 1,000 6.0% (207) Land value, £m 0 800
Slide 50: SEGRO European Logistics Partnership (SELP) headline figures
SEGRO European Logistics Partnership (SELP) headline figures €6.6bn 5.6% Assets under Management (as at 30 June 2024) €1,770m Land and assets Net true equivalent yield 1.8 1.6 €1,524m 1.4 -1.6% 1.9% Assets under management, €m €1,218m €1,126m 1.2 Capital value change ERV growth 1.0 €356m €401m 0.8 0
Slide 51: 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 period ended 30 June 2024 (the Results Announcement). For the purposes of this disclaimer, ‘Presentation’ shall mean thi