SEGRO dividend: payment, cash cover and yield
SEGRO's latest full-year dividend is 31.10p per share. SEGRO's operating cash covered the dividend in most of the five years, but fell short by £9 million in 2022 and 2025.
How much does SEGRO pay per share?
Dividends distinguish the transaction scenarios. The base and bull cases use £0.2256 in the first period and zero thereafter, because the permitted final dividend is a ceiling and no later SEGRO distributions are forecast after completion. The bear case uses £0.3311 initially, then £0.34 and £0.35, assuming the deal fails or is delayed. The latest full-year dividend was 31.10p, and the payout policy targets 85–95% of adjusted profit after tax. Cash from operations fell £9 million below dividends in 2025, so continued payments are plausible but not risk-free.
| 6 months to Jun 2026 | 6 months to Dec 2025 | 6 months to Jun 2025 | 6 months to Dec 2024 | 6 months to Jun 2024 | 6 months to Dec 2023 | 6 months to Jun 2023 | 6 months to Dec 2022 | |
|---|---|---|---|---|---|---|---|---|
| Revenue | 370 | 375 | 351 | 348 | 327 | 407 | 342 | 339 |
| Net rental income | 351 | 347 | 328 | 322 | 306 | 301 | 286 | 267 |
| EPRA earnings per share | 19.30 | 18.40 | 18.10 | 17.50 | 16.90 | 17.90 | 15.90 | 14.00 |
| Dividend per share | 10.14 | 21.40 | 9.70 | 20.20 | 9.10 | 19.10 | 8.70 | 18.20 |
| EPRA vacancy rate | 5.5% | 5.1% | 5.7% | 6.0% | 5.4% | 5.0% | 4.5% | 4.0% |
What this means. The dividend figures are not payments for each six-month period: the December number is the final dividend for the full year, while the June number is the interim dividend.
Does SEGRO's cash cover its dividend?
Operating cash covered the dividend in most of the five years. It fell short by £9 million in 2022 and 2025. Development and capital spending exceeded £500 million in each year from 2021 through 2024, so property sales, borrowing and share issues also helped fund growth.
| 2025 | 2024 | 2023 | 2022 | 2021 | |
|---|---|---|---|---|---|
| Cash from operations | 396 | 330 | 431 | 213 | 327 |
| − Dividends paid | 405 | 277 | 185 | 222 | 180 |
| = Operating cash after dividends | 53 | 246 | 147 | ||
| = Dividends above operating cash | 9 | 9 |
What could change SEGRO's dividend?
Development completions added £12 million of potential rent in H1 2026, but only 58 per cent was leased. The development yield was 6.5 per cent. SEGRO also expects 2026 development capital expenditure of £500–550 million, so the pipeline brings future income and a present funding requirement.
Property yields and transaction status are the other decisive signals. A rise in yields or a delayed Prologis completion would increase volatility and compress value. Completion on schedule, alongside sustained rent capture, would support the base or bull interpretation. Management’s longer-term target is about 50p of adjusted EPS by 2030, but delivery against the nearer earnings path matters more.
| October 2027 | October 2028 | October 2029 | |
|---|---|---|---|
| EPRA earnings | 549 (515 / 569) | 571 (488 / 610) | 599 (474 / 651) |
| Shares (millions) | 1,361 (1,370 / 1,358) | 1,367 (1,384 / 1,361) | 1,373 (1,398 / 1,364) |
| Dividends per share | 0.23 (0.33 / 0.23) | 0.00 (0.34 / 0.00) | 0.00 (0.35 / 0.00) |
| Price to EPRA earnings | 22.00 (18.00 / 25.00) | 21.00 (16.00 / 27.00) | 20.00 (14.00 / 29.00) |
What is SEGRO's dividend yield against its share price?
Dividend yield is the annual dividend divided by the share price. It can rise because the share price falls, even when the cash dividend is unchanged. Coverage therefore matters more than yield alone.