Segro Share Discussion Threads

[jonwig] 29/7/2021 07:13

H1 results:



Seems to be an even more confident outlook than in Feb. NAV of 909p (up from 809p in past year), means a heady 30+% premium. Probably well worth it.

[donaferentes] 19/2/2021 12:10

Been in here since 2012/13 at 235p. Nearly 20% compound growth over the last 8 years, plus a respectable 2%+ dividend. Can't see it stopping just yet. It's not really a property company, even though that underlies its asset value. Covid's hefty nudge towards online shopping and its requisite warehousing will take this higher yet IMHO.

[ygor705] 19/2/2021 11:42

A very good set of numbers in what has been a very poor year for many other property companies. Big increase in the dividend as well. Onwards and steadily upwards as the pandemic eases I think.

[jonwig] 19/2/2021 07:16

FY results, not to be sniffed at:

[jonwig] 18/1/2021 07:38

Booming demand for big boxes:

[jonwig] 09/10/2020 11:12

It's growing with online sales. The UK market might be getting a bit full, but the EU seems to be behind. SGRO is exposed to both.

As said in #545, the premium is a bit steep! EBOX might be worth looking at.

[energeticbacker] 09/10/2020 10:38

What are the growth opportunities for warehouse and logistics companies? Investor’s Champion has taken a look at a number of companies including Segro. #CLG #LMP #BBOX #WHR

[williamcooper104] 08/10/2020 17:15

Segro just paid 2.69 NIY for a Canning Town urban logistics asset This was 30 percent above asking price and will have valuation at least some read across on Segros whole portfolio https://reactnews.com/article/sector-giant-prevails-for-ultra-prime-130m-urban-logistics-scheme/

[jonwig] 05/8/2020 07:15

H1 results, not to be sniffed at:

[jonwig] 09/7/2020 14:56

The main bit:



Well positioned to serve rising e-commerce giants such as Amazon rather than to be in their way, Segro went from strength to strength. Its empire stretches from the Midlands to Barcelona and Warsaw, with 1,190 tenants ranging from Amazon and Deutsche Post to Brompton bikes and immunotherapy researchers.

“We were aware of the internet, we were aware of e-commerce, but I don’t think any of us really foresaw that it was going to grow as rapidly as it has, particularly with what we have seen in the last few weeks,” he says. “But it’s not just about e commerce.”

Demand for warehouse space is only set to grow following the pandemic, which has pushed millions more towards online shopping and forced supermarkets to refocus on logistics.

As thousands of businesses flounder in the wake of coronavirus Segro, which started life in 1920 on what was a repurposed military vehicle depot in Slough, has just raised £680m on the stock market to fund expansion. Days earlier it splashed out £202.5m on Perivale Park, a 34-acre urban warehouse estate in Perivale, west London.

“It’s one of those rare crown jewels,” says Sleath. “Our willingness to invest during the pandemic, when perhaps other investors were more cautious, gave us a competitive edge.”

Success has not come without bitterness from opponents. High-street retailers struggling to compete with online retailers argue it’s an unfair match because business rates are so much more expensive for high street properties than for out-of-town warehouses like Segro’s.

“The rates system is woefully out of date and valuations keep getting pushed back,” agrees Sleath - but says all sides need to be taken into account.

“It is time to review the rates system so we have a fair and equitable system - but rates are about collecting revenue to support the provision of local services.

“And of course at the moment the people using those local services are the high-street brands and physical retailers.”
Taxing questions

Coronavirus has posed other questions of fairness in business. There are suggestions that companies that have done well during the pandemic should help more towards the recovery, possibly through a windfall tax.

“I think we already have a complex enough tax system,” says Sleath, stressing that Segro is not a windfall beneficiary but has been working extremely hard throughout. “I probably wouldn’t want to go into that topic,” he retreats. “It’s a complex area.”

To mark its centenary, Segro is spending £10m over the next decade on projects to support local communities in the UK and Europe, particularly as they try and recover from the pandemic.

Board members have also waived 25pc of their fees and salaries for three months, which will support the fund.

As he looks out over the next decade, Sleath is not planning growth beyond Europe, despite the huge markets overseas. “Property is a local business. I’m not sure going to Asia, interesting though it would be, is a great way of creating shareholder value.

[montyhedge] 09/7/2020 14:04

Shame we can't read it.

[jonwig] 07/7/2020 08:19

Interview with David Sleath:

[toffeeman] 10/6/2020 14:14

Yep - in my portfolio

[longshanks] 10/6/2020 13:55

You here too Tigger?

[toffeeman] 10/6/2020 13:48

You sure do LS - !!!!

[longshanks] 10/6/2020 13:39

I took part in the PB offer, and have done on a couple of others recently.I don't think one needs to be an existing holder to be able to make a quick assessment on whether to buy in.As with all things it is just a matter of spreading your risk appropriately. I also like to invest in companies that have nice quiet bulletin boards.

[sogoesit] 10/6/2020 11:21

Thanks for comment and info. on Primary Bid, leading.
There have been quite a few placings recently and not all of them on PB. Some I would have subscribed to as a legacy holder.

However, the most important issue for me is the issue price. At an equity placing, unlike a rights issue, this is dependent on the bookbuild and, as a PI, I have no information of the likely take-up so am, worryingly, in the dark (albeit the news was leaky pre-close on the 9th).

Like IPO's, I therefore leave well alone until I can see some price transparency.

(I hold SGRO but declined the PB opportunity)

[leading] 10/6/2020 09:18

Yes, agreed. I was already a holder in Segro.

I understand from a friend in one of the major investment banks that the bank in question are pushing for all placings to include a Primary Bid listing as its good PR, and why not?

[jonwig] 10/6/2020 08:55

Thanks for your comments. I think I'd usually want to participate only if I was a holder already, or knew enough about the company. Until recently most of the PB fundraisings were companies I wouldn't want to touch so I never really gave much thought. We're now getting some decent offerings, and companies are getting pressure to include PIs.

[leading] 10/6/2020 08:42

I put in for these via Primary Bid. The process was straightforward, you need your NINO and account number with your broker.

My subscription was fully allocated, so now I just have to see if the shares make it through to my broker, they they allocate it to the right account and my part share refund of £5 comes back from Primary Bid. So far,so good.

As jonwig says, you have to pay by debit card so funds need to be readily available. You also need to make your mind up PDQ. I think there is a risk of getting swept up in the momentum of the application process, without thinking through whether you actually want the shares in the first place. That was my mental note to myself for future reference anyway.

[jonwig] 10/6/2020 07:58

I'm quite annoyed with myself in missing out of the 820p placing. I hadn't the cash in my current account and it would have taken two days to fix that. I'll need to rethink where I stash cash!

[jonwig] 18/2/2020 07:45

IC is sticking with its BUY recommendation:

Segro still retains its fundamental attractive points: continued like-for-like rental growth, scale and exposure to strategic regions on the continent. The warehouse sector is maturing, but we still think the growth potential justifies the premium to forecast NAV. Buy.

Last IC View: Buy, 773p, 24 July 2019

[dplewis1] 15/2/2020 21:06

Be warned - entropick is a spam account do not click the link.

[entropick] 15/2/2020 21:06

Segro (SGRO), the real estate investment trust, bumped up its full-year dividend by 10.1 per cent at 20.7p, after it reported earnings in line with market expectations. BUY