Remember Where You Were: Segro Has Become The U.K.’s Largest Listed Property Company

At around 1pm on 26 July something fundamental shifted in the world of U.K. property: Segro took over from Landsec as the largest listed property company.

It may not be permanent. It may even have changed by the time you are reading this. But at that point Segro’s market capitalisation rose to £6.78B while Landsec’s slipped to £6.77B.

Landsec had been the largest U.K. listed property company by market capitalisation for more than two decades. It has a much bigger portfolio, at £14.1B compared to Segro’s £8.8B. And it owns famous assets like the Piccadilly Lights and Bluewater shopping centre.

But the stock market currently puts a much higher value on the assets of Segro, which is a specialist in the white-hot industrial and logistics sector, as opposed to the out-of-favour worlds of London offices and large shopping malls.

Certainly in the near term the expectation is that Segro’s rents and values will show better growth than those of Landsec. Segro’s shares trade at a 10% premium to its net asset value, whereas Landsec’s shares trade at a discount of a third.

In the past year Segro’s share price has risen 28% to 666p and Landsec’s has fallen by 14% to 919p.

Segro said in half-year results on the morning of 26 July that the value of its assets had risen by 6% during the six months to 30 June, and that like-for-like net rental income had grown by 2.3%.

Continue reading this story with a free account

Log in or register
Sign up for more articles like this
Subscribe to Bisnow's London Newsletters
Related Stories

Avison Young Had Assets Frozen By Bank Over Unpaid Taxes

Philly's Big-Box Warehouse Owners Subdivide Spaces After Developing 'The Wrong-Size Buildings'

Blackstone Sells $1B Industrial Portfolio To Atlanta-Based Investor

Equinix Bets Big On Slough Data Centres: The London Deal Sheet

Redevco Buys 560K SF Jaguar Land Rover Logistics Hub In UK IOS Push

Fined For Rotting Food At Burned LA Cold Storage Warehouse, Lineage Plans To Rebuild

Unite Looks To Reshape Student Portfolio After £417M First-Half Loss

Americold Abandons Automated Warehouse Partnership

Rexford Planning Up To $2B In Dispositions This Year

Industrial Consolidation Continues With European Giants Agreeing To $15B Merger

Blackstone's Industrial Arm Sells Revere Warehouse For $45M

Arada Pushes Forward £2.5B Docklands Scheme: The London Deal Sheet