Segro PLC

London, GREAT
Invested through
  • Triodos Sterling Bond Impact Fund
Asset ClassesCorporate bonds
Impact strategyImpact Equities and Bonds
Bloomberg tickerSGRO LN
ISIN codeXS1692835249
Industry groupReal Estate
Aligned with SDGs

Segro PLC is a European real estate investment trust involved in the ownership, management and development of warehouse properties. The company's real estate portfolio is split between smaller warehouses (< 10,000 m2), which primarily serve as urban distribution centers, and larger big box logistic warehouses (> 10,000 m2). Most of Segro's properties are located in the Greater London area, Thames Valley and the Midlands. The company derives the vast majority of its income in the form of rental income from its tenants operating out of its warehouses. Food and general manufacturing, transport and logistics, and retail companies comprise most of Segro's customers. The company's other major markets include Western, Central and Southern Europe. In the UK Segro has REIT status and in France it has SIIC status. In other countries, the company pays normal corporate taxes.

Investment rationale

SEGRO has two main aims:
- To reduce the energy demands of its buildings in operations, making it cheaper and more sustainable for its customers to conduct business
- To utilise renewable and low carbon technologies wherever possible in its new build portfolio and to produce, low cost, low carbon energy for its customers

The company is a signature to RE100, a commitment to procuring renewable energy, and its aims to purchase zero carbon energy wherever it makes business sense to do so.
Segro has a strong focus on sustainability performance.
- Out of 5.7 mln m2 lettable floor space 1.8 mln m2 is certified by BREAAM, DGNB, HQE or similar certifications.
- Installation of solar panels where feasible. The current installed capacity is 2.7 GWh, equivalent to the annual electricity use of 2,500 households.
Its sustainability targets for 2025 are:
- 40% reduction in carbon footprint in line with the Paris Agreement on Climate Change
- Delivering low impact buildings based on 20% reduction in embodied carbon
- Zero waste to landfill for all new developments