Updates & Ideas

Segro - Urban warehousing owner enjoys strong pipeline of new developments

December 2024

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

Many perceive commercial real estate as the tortoise to technology’s hare but Segro, a REIT specialising in Urban Warehousing and Big Boxes, is an exception to this rule. Segro more than doubled pretax profit from £198m in 2010 to £409m in 2023 while net asset value per share soared from 376p to 891p, having peaked at 1115p in 2021. That peak came when interest rates fell to zero in the pandemic and the rising tide of yield compression pushed up all property boats. Segro’s shares mirror this, surging from 275p in 2010 to a peak of 1450p at the end of 2021. But the normalisation of interest rates has led to an enticing retracement to 785p just when inflation has receded and Goldman Sachs predicts rates will fall to 3% by November 2025. ...

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Whitbread - Premier Inn owner has strong new rooms pipeline to cash in on shrinking supply

Bloomsbury

Segro - CEO buys shares (October 2023)

Segro (June 2022)

Segro (November 2021)

Segro (April 2021)

Segro - Gain to date: 55% (November 2020)

Segro - Gain to date:â€ˆ47% (February 2020)

Segro - Urban warehousing landlord could benefit from â€œNo Dealâ€ stockpiling (September 2019)

Segro (April 2019)

Segro (December 2018)

Segro - Strong lettings growth (June 2018)

Segro - Commercial property group boasts terrific chart (May 2018)

With small companies there is an above average degree of risk compared to buying blue chips. Please be aware that we have not assessed the suitability of any of these investments for you. The newsletter simply states a personal view and diarises the editor’s investment decisions. Please speak to your stockbroker or other qualified individual to ascertain whether any of these companies mentioned would form useful additions to your own portfolios. Past performance is no indication of future success.

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