Segro Share Discussion Threads

[nexusltd] 19/1/2022 23:52

JPMorgan Cazenove upgraded Segro to 'overweight' from 'neutral' today and lifted the price target to 1,450.0p from 1,310.0p as it argued that recent underperformance was a buying opportunity. JPM said SGRO has borne the brunt of the shift in sentiment towards value thus far in 2022. This has driven the recent underperformance of SGRO, which was down 10% year-to-date versus the sector down 3%. "FY21 will be a record year for logistics with capital and rental growth in 2H outpacing any HY period over the last decade, and results should provide a strong catalyst to drive a re-rating through 2022," the bank said. "We believe the opportunity ahead remains attractive and upgrade our NAV forecasts and now sit 4%/6%/7% ahead of compiled company consensus for 21/22/23."

JPM also placed the shares on ‘Positive Catalyst Watch’ into the FY21 results, which are due on 18 February.

[jonwig] 23/12/2021 15:43

At first I thought they might be going back into offices, but no. And not boxes. I think they plan high-spec technology and medical research facilities Data centres are popular these days.

[nexusltd] 23/12/2021 14:44

Large £425m acquisition in Slough; currently mainly offices. Back to the future. PR speaks of short leases, and Segro's ambition to re-develop the 39 acre site with modern facilities. Any thoughts?

[jonwig] 20/10/2021 06:58

That's a good point.

[sogoesit] 20/10/2021 06:21

Over 50% of the money spent on acquisitions, £46/£84m, was spent on Land.
So future growth looks like being assured.

[jonwig] 20/10/2021 06:15

Trading update:



Everything going in the right direction. They seem to be pushing rent increases quite aggressively. I suppose that's easily done these days. So many companies need sheds, and switching from a shed you already occupy isn't exactly trouble-free.

[donald t] 21/9/2021 06:33

https://www.marketscreener.com/quote/stock/SEGRO-PLC-4007239/news/SEGRO-SmartParc-partners-with-SEGRO-to-deliver-a-1-85m-sqft-high-tech-food-manufacturing-and-distr-36472698/

[jonwig] 04/9/2021 06:16

I suppose there will be a rush to fill up space with stocks (assuming non-perishable). Biggest shed wins.

[sogoesit] 04/9/2021 04:12

Well done! I have been lucky enough over many years to have had a “Villa” stock… even or two!

Anyway, just a thought; what happens to demand for warehouse space when there is significant supply-chain disruption/adjustment? NAV guesses on a postcard….

[donald t] 20/8/2021 22:44

I can now retire thanks to Segro

[donald t] 20/8/2021 22:19

Shares talk to me. ?

[alter ego] 20/8/2021 21:44

Don’t you think the share price does enough “talking”;?

[donald t] 20/8/2021 20:41

I've made big bucks with Segro

[donald t] 20/8/2021 20:41

Can't understand why no one talks about Segro, it seems to fly under the radar.

[sogoesit] 06/8/2021 10:42

Quote from Tritax Big Box HY Results maybe explains:

"Unprecedented demand for prime logistics space supported by long-term positive structural drivers

· Highest H1 take-up on record of 21 million sq ft with a further 16 million sq ft of space currently under offer, of which 48% is for space >500k sq ft.

· Limited development response relative to demand has led to record low 2% vacancy and strong rental growth across all regions.

· Positive outlook for logistics property has resulted in higher investor allocations into the sector, driving prime yields down further."

Own versus rent is a financial decision but, if all warehouse space opportunity is taken by the specialist property companies, it will unlikely be strategically beneficial (profitable) for a non-specialist to enter this business. Entering a business sector, as an owner, implies taking timing risk.
(NAValuation is backward looking. Stock price is forward looking)

[penciles2] 05/8/2021 11:02

I have been holder from low £2.00s I struggle to see why so far over nav
Thought that keeps going through my mind is maybe Amazon is interested in
Securing warehouse space better to own than rent.

[sogoesit] 05/8/2021 07:19

Certainly has performed well since the 900/1000p consolidation range.
On a TA basis has now regained and over-extended on the long term upper trend-line channel.

All my “expensiveR21; stocks have performed well in last 6 months so owning “premium”; rated shares has paid off.

[jonwig] 29/7/2021 06:13

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 10:12

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 09:38

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 16:15

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/