SEGRO Plc

Okay, good morning everybody and great to see so many people here on a Friday in half term week. So whether you are here in the room with us or joining us online, we're absolutely delighted to have you with us as we present Seagrow's 2025 full year results. I'm joined here by a number of my executive colleagues and I'd particularly like to welcome Suzanne Schroeter, who's presenting her first set of results after joining us only in December. Before getting into the detail, what I'd like to do is share some key messages with you, set the scene as it were, and explain why we are confident about the future. And I should just mention, our presentation is going to run a little bit longer than normal today because there's a lot we want to talk about, particularly to give more colour on our data centre strategy and set out what we think is a really exceptional opportunity for this part of our business. So 2025 actually turned out to be a very strong year for Seagrow, both operationally and in financial terms as well, despite the rather challenging macro. We signed a record £99 million of new headline rent, including £33 million of development signings. Within our existing portfolio, we delivered 37 million of reversion uplifts from lease renewals and rent reviews, which itself was a key driver of our 6% growth in like-for-like net rental income. All of this translated into a 6% increase in adjusted earnings per share and a 2% growth in adjusted NAV per share, so a strong set of financial outcomes. But what pleased me most about 2025 was the improving occupier sentiment and a pickup in deal activity in the second half of the year as the structural drivers underpinning demand for our assets began to reassert themselves. That momentum has continued into 2026. Inquiry levels right now are strong. Occupiers are starting to progress their investment plans and we have an active pipeline of discussions both on existing space and for new prelips. We know that deals can take a long time to convert from active interest into actual signed deals and no one quite knows how 2026 will turn out in terms of geopolitics. but we're really pleased and very well positioned right now and it feels much more encouraging here today than it has at any time for at least the last two years. Those results added to our long-term track record of delivering compounding annual growth driven by disciplined capital allocation, operational excellence and an efficient capital structure. Since 2016, we've delivered an average 8% growth in earnings, dividends and net asset values, despite the more challenging environment of the last couple of years. And we anticipate that improving market fundamentals and the exceptional opportunities in front of us will enable us to move back towards those longer term averages. Onside our financial and operational achievements in 2025, we progressed our Responsible Seagrass Strategy. We continued to champion low carbon growth, reducing our carbon intensity significantly and have refreshed our net zero targets which have been approved by the Science Based Target Initiative. We added to our community investment plan framework. We achieved record levels of volunteering by our employees, customers and stakeholders and we delivered 54 community projects. We also continue investing in our people to further strengthen our market leading operating platform through our nurturing talent strategy. These initiatives are a really important part of how we sustain high performance across the business and ensure that we continue building for the future. So let's now get into some detail. We'll start with our strong financial performance presented by Suzanne. Then we'll talk about the strong operating performance behind these results. James Craddock and Marco Simonetti will address the UK and the continental European markets respectively, after which I'll bring it all together to give you a group overview. And then we'll finish by looking at the future opportunity for Seagrow, which I'll address in two parts. Firstly, the multiple levers we have to drive growth within our industrial and logistics business. And then secondly, the compelling opportunity that we have within our exceptional data centre pipeline. So now, I'm delighted to hand over to Suzanne.

Thank you, David, and good morning also from my side. I had a fantastic start to Seagrow so far. The team has been extremely welcoming and supportive, and I've also already had the chance to visit a number of the offices and assets across London, Midlands, Germany, Netherlands, and France. And I must say what I've seen so far has really impressed me, both in terms of the quality of the assets and the strength of the team. So I'm very excited about the opportunities ahead and as I continue to get to know the business better. About 2025. While I can't take credit for the excellent performance the team has delivered in 2025, I'm very happy to talk you through the key numbers. 2025 was defined by strong operational execution across the portfolio. We also continued with our balance sheet discipline, and we saw improving momentum in our key markets. This was reflected in the key financial metrics. Adjusted earnings per share increased by 6.1%, and this was driven by higher net rental income and continued cost discipline. We have chosen to pay a full year dividend of 31.1 pence, which also represents a 6.1% increase year on year. Portfolio valuation grew by 1% on a like-for-like basis, and this was the first year that both the UK and continental Europe have been positive since the start of 2022. Adjusted NAV per share increased by 2%, and that reflects the like-for-like valuation uplift and additions we made to the portfolio throughout the year. Our balance sheet remained strong. Loan-to-value ended the year at 31%, and net debt to EBITDA reduced from 8.6 to 8.4 times over the course of the year. Let us now turn to the income statement. Net rental income grew by 8.6%. I will tell you more about this on the next slide. Net interest costs were stable year on year. Lower gross interest was offset by lower capitalized interest. And the reduction in gross interest came from lower interest rates, particularly URIBOR, which offset the higher net debt figure. Our APRA cost ratio improved slightly in 2025, and this was also helped by a 3 million reduction in administrative expenses. Operational efficiency will remain a focus going forward. Adjusted profit before tax increased by 8.3%, and to summarize, this performance demonstrates the resilience of our operating model and the quality of our portfolio. Let's now look at net rental income in more detail. We delivered 47 million of net rental income growth, and that was driven by four factors. Number one, the 6% like for like rental growth, which was strong both in the UK and continental Europe. The UK performance was driven by capture of reversion at the five yearly rent reviews, and continental Europe benefited from increased occupancy and asset management initiatives. Number two, development completions. These contributed 31 million last year. Number three, acquisitions and disposals. The impact of those two was neutral due to the sales we did in 2025 and the full year effect of the 2024 disposals. Number four, the other items. These include mainly take backs for redevelopment, surrender premiums and also some FX impact. We expect like for like rental growth to remain strong as we continue to capture reversion to lease vacant space and that we continue our active asset management. As I said before, 2025 was the first year since the pandemic where both the UK and continental Europe saw positive valuation movements and the total portfolio value increased by 1% on a like-for-like basis. EAs were broadly stable during that period. ERV growth for the group was 2.3%. It was stronger in the UK at 3.1%, driven by a standout performance from our West London portfolio, which delivered 4.7% growth. In continental Europe, it was 1% overall. Spain and Germany outperformed and delivered the strongest growth at 3.2% and 2.4% respectively. The portfolio now stands at 19 billion at share, including our development assets and land holdings. The equivalent yield is 5.5%. Our balance sheet remains strong. The LTV is at 31%, which is a level that we are currently comfortable with. Net debt to EBITDA stands at 8.4 times, down from 8.6 times last year, and that reflects higher EBITDA and disciplined capital management. We continue to benefit from a diverse and long-term debt structure. Our average maturity is six years. We have undrawn RCFs and term loans of circa 1.9 billion and ongoing access to attractive financing through the euro and sterling bond markets, also the private placement and bank markets. Our 650 million bond maturity in March will be refinanced through an undrawn term loan that we have signed in the second half of 2025, and the residual amount will be drawn from our RCF. This robust financing position gives us the flexibility to invest through the cycle and capture future opportunities. Now let us talk about capital allocation. Our capital allocation framework remains clear, disciplined and aligned to long-term shareholder value. Development on existing land remains our most accretive use of capital. It yields 7-8% on total costs and 10% or more based on additional capital required. We expect 2026 development CAPEX to be in the 450 to 550 million range. The final number will depend on the level of new projects we start in the next few months. Our CAPEX guidance includes about 150 million of infrastructure investment to support the long-term growth from our logistics parks in the UK and for power upgrades for our data center pipeline. We will remain very selective on acquisitions. We focus only on the most compelling opportunities in core markets that provide wider portfolio benefits and attractive returns. We do consider additional distributions to shareholders such as share buybacks, but only when we believe that we have material surplus capital and the lack of compelling development and acquisition opportunities. This is currently not the case, especially given the momentum building in our development pipeline. We continue to take an active approach to capital recycling, and we have an annual planning process to identify assets where we have optimized returns. With the current cost of capital, we continue to be very disciplined when it comes to capital deployment for new investments, but also for the assets that we retain. We therefore expect disposers this year to be at or above the upper end of our longer-term run rate of 1% to 2% of our portfolio. These disposals will generate proceeds that we can invest into opportunities with higher risk-adjusted returns. In addition to disposals, we are regularly considering options to fund our growth pipeline. We also have a successful track record of working with partners to share capital intensity, for example, with our self-joined venture and now also with Pure on our first fully-fitted data center joint venture. This capital allocation framework continues to support both the near-term delivery and our long-term returns. To summarize the section, in 2025, we delivered a strong 6% like-for-like rental growth, contributing to 6% earnings and dividend growth. We have a strong balance sheet and a clear, disciplined capital allocation strategy aligned to long-term shareholder value creation. Let's now turn to the operational performance of the business, and I'm delighted to hand it over to James, who will start with the UK.

Thank you, Suzanne, and good morning, everyone. So let me start by talking about the broader UK market. So 2025 was the strongest year for logistics take-up since the pandemic. There was about 33 million square feet of logistics occupational activity. Pre-lat activity did remain low, however, and take-up was driven more by immediate needs of customers rather than the more strategically planned decision-making. On the supply side, we've seen things stabilise, and there are encouraging signs of positive net absorption in some markets, which is resulting in vacancy nudging down. And we've seen this in our own portfolio, both in the urban and in the big box markets. In terms of overall logistics supply in the UK, it's important to note that about two-thirds of the supply is of second-hand or poorer quality stock. So this continues to favour owners of prime, modern, well-located portfolios like our own. New speculative development starts have fallen materially. They're running at roughly half the long-term averages overall. and 3PLs are reporting low levels of grey space within their portfolio, both of which are supportive factors as we look ahead. That said, the market is far from uniform. There were areas of real strength and other areas that remained weaker in 2025. If we turn now to our own portfolio, pre-let levels were low, but we were able to sign a fantastic deal for development on our food campus at Seagrow Smart Park in Derby. We also leased one of our two speculatively developed sheds at Seagrow Park Coventry, which helped to improve our UK occupancy by 50 basis points to 93.1%. We've also been doing some selective speculative development, which included a redevelopment on the Slough Trading Estate, which has been leasing well. For me, however, the highlight of the year was the standout asset management performance and standing stock leasings, with the teams completing on over 250 individual transactions across leasing, rent reviews and lease renewals. Our key urban markets, especially the highly established Heathrow and Park Royal, which together make up 40% of our UK portfolio, continue to perform well. This is driven by good demand and the depth of our customer relationships. Transactions have included setting new headline rents to customer segments, including food and beverage, 3PL and pharmaceuticals in these sub-markets. This activity demonstrates the continued attraction of prime urban markets for occupiers who are providing value-add goods and services who need to remain located within prime M25 locations to service their end customers and to attract labour. A major focus for us in 2025 was also preparing our very special UK logistics sites for future development, which included hitting key milestones with the groundworks and the strategic rail freight interchange development at Seagrow Park Radlet. We therefore now have three sites in construction ready status and the first plots at Radlet will also be ready in the early part of next year. Between them, these can deliver over 9 million square feet of the very best modern logistics space in the UK, ensuring that we can respond quickly as occupier demand continues to build. On that topic, over the past two to three months, inquiry levels have improved materially across both logistics and urban, and we are seeing more activity across a broader mix of occupiers. This is largely being driven by the structural drivers which support our business. Retailers, food, e-commerce and general distribution are particularly active, seeking efficiencies through supply chain optimization, which is driving decision making. Taken together, these trends give us confidence in the outlook for the UK business, and the pick-up in inquiry levels and leasing activity since the budget, both on standing stock and for pre-let opportunities, provides a solid foundation for 2026. I'll now hand over to Marco, who will talk you through the performance in continental Europe.