Segro Share Discussion Threads

[williamcooper104] 21/11/2024 07:08

600bps for an equity risk premium is fat - long term average is 350-500bps - so that's getting on for distressed They then price REIT equity (based on CAPM - so adding a premium for a higher beta - which nobody other than equity analysts actually puts much store in) at a 730bps premium Another way of looking at it is that they've looked at current reit share prices and largely backfired the theory to get to their cost of equity

[philanderer] 21/11/2024 00:29

On Wednesday, Jefferies resumed coverage of Segro PLC (LON:SGRO:LN) (OTC: SEGXF) stock, a real estate investment trust, issuing a Hold rating with a new price target of GBP8.04. The firm's analysts have adjusted their discounted cash flow (DCF) derived price targets across the sector, noting a general decrease of approximately 7%.

This revision reflects the increased cost of capital for real estate investment trusts (REITs), which has risen year-to-date from 8.1% to 10% and the equity cost of capital (ke) from 9.3% to 11.9%, largely due to a higher risk-free rate.

Jefferies has incorporated Segro into its coverage, establishing a price target based on the updated DCF calculations. Previously, the company had not assigned a specific price target to Segro (noted as NA), and the coverage status was listed as Restricted.

The updated valuation methodology utilizes a sector-weighted average cost of capital (WACC) derived from Refinitiv data, reflecting changes in the market risk premium and beta values specific to the REIT sector.

The UK equity market risk premium (EMRP) has been adjusted to 6%, up from 4.6%, and a REIT sector beta of 1.24 is being used. The UK 10-year gilt is applied as the risk-free rate at 4.5%. Jefferies' previous price targets were based on stock-specific betas, with Segro's beta being close to the sector average of 1.2.

The Hold rating suggests that Jefferies views the stock as fairly valued at the current levels, taking into account the changes in the financial landscape that affect the cost of capital and risk assessments for REITs. The new price target of GBP8.04 is derived from the firm's sector analysis and reflects the updated economic factors influencing valuation.


investing.com

[essentialinvestor] 20/11/2024 12:36

Market indicating the yield is too low (for the Segro equity 'risk) given recent gilt yield movements.

[philanderer] 20/11/2024 10:18

Jefferies reinitiates Segro with 'hold' - price target 804 pence

[philanderer] 20/11/2024 00:27

PARIS, 19-Nov-2024 — /EuropaWire/

— SEGRO, a prominent property investment company, has partnered with Bouygues Bâtiment Industrie, a subsidiary of Bouygues Bâtiment France, to undertake the redevelopment of the historic Les Gobelins railway station near Paris.

Set to be completed by 2025, the ambitious project will create the SEGRO Paris Les Gobelins Centre, an innovative urban logistics hub designed to integrate seamlessly into the city’s fabric while addressing modern logistical challenges.

The 75,000 m² site will feature approximately 20 modular units, ranging from 1,000 m² to 10,000 m², offering flexible and sustainable logistics solutions for businesses.

Designed by Ateliers 4+, the project emphasizes environmental sustainability and innovation, aligning with Paris’s commitment to decarbonizing last-mile delivery and reducing the impact of logistics on urban life.

[philanderer] 18/11/2024 15:45

Segro confirms takeover offer for Tritax EuroBox has lapsed

[philanderer] 14/11/2024 19:19

SEGRO sells Park Royal asset for £115 million


November 14, 2024
By Transport Intelligence

The 10-acre urban warehouse estate has been owned by SEGRO since the acquisition of Brixton plc in 2009. SEGRO has actively managed the estate and grown rents significantly since it took ownership, but the age and layout of the estate has meant that the recent strategy has been to secure vacant possession to facilitate redevelopment. Consequently, the estate is 64 per cent occupied and generates rental income of £3.2 million.


ti-insight.com

[dov] 13/11/2024 15:07

No bottom currently in place low for the year

[philanderer] 13/11/2024 15:05

Yes, agree. Next interest rate cut in UK will now possibly be May 2025

[jbarcroftr] 12/11/2024 12:01

I hold both Shed and Bbox as well as Segro
All quality companies in my view
I don’t expect any real capital gains until base is at 3% or clearly heading that way
In the meantime I am happy to keep on collecting the dividends

[rimau1] 12/11/2024 10:26

I've taken a starter long term position here. Segro is the quality REIT play which is why i suppose the discount to NAV is so small, the deal to pull out of Ebox and then do a side deal with Brookfield shows the quality of management IMO. One to tuck away for me. Shed and Bbox also on my watchlist as i have funds to recycle into the sector when API sale completes at the end of the month. Views welcome...

[philanderer] 12/11/2024 10:08

From the RNS.....

SEGRO intends to acquire, by itself or through one of its strategic partnerships, a portfolio of six Tritax EuroBox assets from Brookfield following completion of the Brookfield Offer

[essentialinvestor] 06/11/2024 17:44

What's happening on bond markets is not UK specific. Yields are rising elsewhete.

Unfortunately the UK cost of borrowing significantly exceeds many of our nearest neighbours, including Ireland, France, Spain, Germany..

[philanderer] 06/11/2024 16:57

Yep, it's another one that's boll*xed for now.

[eigthwonder] 06/11/2024 16:07

Kills the sector

[dov] 06/11/2024 13:41

That kills this one stone dead then

[philanderer] 06/11/2024 13:25

Interest rates to stay higher for longer.

[dov] 31/10/2024 16:39

Well done Rachel your budget certainly went down well with the bond markets not!!

[philanderer] 31/10/2024 16:30

Yep, interest rate outlook not looking good at all.

[essentialinvestor] 31/10/2024 12:48

9% discount to NAV atm, will the market want more than this.. possibly.

The share price heavily tied to movement in UK gilts, as per yesterday afternoon.

[dov] 30/10/2024 15:29

This share is so frustrating cannot hold on to its gains anymore

[essentialinvestor] 30/10/2024 13:26

Added for a trade.

[essentialinvestor] 18/10/2024 13:57

Tempted to add here however just musing if potential adverse changes are in the offing cone budget day..?.

[philanderer] 17/10/2024 19:02

Stibbe has advised SEGRO on an off-market deal to purchase 75,000sqm of sustainable logistics space in Oosterhout, Noord-Brabant from Weerts Group.

This acquisition follows the June 2024 purchase of a 98,000 sqm modern logistics estate in Eindhoven, a 37,800 sqm newly built logistics warehouse in Heerlen and a 36,500 sqm logistics warehouse in Tilburg, all of which are in line with SEGRO’s investment criteria in terms of returns, location and quality