Segro PLC — Annual Report 2025

Mar 13, 2026

Annual Report & Accounts 2025

Enabling extraordinary things

Front cover: SEGRO Park Le Blanc-Mesnil is located in the North-East of Paris, close to two major airports and with excellent connectivity to the city centre. Our customer Maison Lefebvre specialise in home furnishings and use their space as a showroom and sales office.

We are SEGRO. We own, manage and develop modern and sustainable industrial and logistics space across Europe. Our portfolio includes both urban and big box warehouses and data centres. The spaces that we create enable extraordinary things to happen – they provide critical infrastructure for urban economies, underpin modern distribution networks, empower our customers and drive prosperity in our local communities. This is purposeful growth that drives lasting impact.

Contents

Overview	Strategic Report	Governance	Financial Statements	Further Information
About SEGRO	01	Strategic Report	11	Chief Executive’s statement

The Directors present the Annual Report for the year ended 31 December 2025, which includes the Strategic Report, Governance Report and audited Financial Statements for the year.

References to ‘SEGRO’, the ‘Group’, the ‘Company’, ‘we’ or ‘our’ are to SEGRO plc and/or its subsidiaries, or any of them as the context may require. Pages 106 to 124 inclusive comprise the Directors’ Remuneration Report and pages 125 and 126 inclusive comprise the Directors’ Report. These have been drawn up and presented in accordance with English company law and the liabilities of the Directors, in connection with these sections, and shall be subject to the limitations and restrictions provided by such law.

The Annual Report contains forward-looking statements. For further information see page 193.

For our website use the QR code or visit our website at www.SEGRO.com/investors/ara25

Read more about Responsible SEGRO on page 20 to 25

About SEGRO enabling extraordinary things

A year of Every achievement this year is a testament to what happens when we put our Purpose into action – creating the space that enables extraordinary things to happen, not just for businesses but for the people and communities around us.

Driving the modernisation of the UK’s infrastructure and distribution networks

We completed a major milestone at SEGRO Logistics Park Radlett by installing a 6,000-tonne underbridge beneath the Midland Main Line – the key step that will connect the strategic rail freight interchange directly into the national rail network. Our rail-connected UK logistics parks are supporting greener, more efficient supply chains in the UK.

6k tonne underbridge

A landmark partnership to build the data centres of tomorrow

We announced the creation of a joint venture with Pure Data Centres Group to deliver our first fully fitted data centre in West London – a powerful step forward in SEGRO’s data centre strategy. The c.30,000 sq m, three-storey facility will support next-generation Cloud workloads, marking our evolution into a developer of mission-critical infrastructure. This partnership will unlock significant long-term value and strengthen our role in the digital economy.

Strengthening our presence in Europe’s most attractive logistics markets

Our SELP joint venture completed the acquisition of a six-asset, 37,000 sq m portfolio in the Netherlands and Germany for €470 million.

01 | SEGRO plc Annual Report & Accounts 202537k €470m sq m portfolio acquisition The addition of this modern big-box space in Europe’s most attractive and supply-constrained logistics hubs, drives growth and reinforces our leadership in big box logistics.” David Sleath, CEO, SEGRO

Reimagining a century-old estate for modern businesses
We continued the transformation of the Slough Trading Estate, one of the UK’s most historic industrial sites, into a modern hub for innovation, through the completion of nine new units totalling 107,000 sq ft. The warehouses have been built to a premium specification offering sustainable, flexible space suitable for a wide variety of businesses. Slough Trading Estate has spearheaded the UK’s industrial activity for over a century, constantly evolving to ensure it is providing employment and supporting the local and national economy...” Tan Dhesi, MP for Slough

02 | SEGRO plc Annual Report & Accounts 2025 Overview Strategic Report Governance Financial Statements Further Information

About SEGRO continued

Committing to a net-zero future, backed by science
Our updated near-term and net-zero emissions reduction targets were validated by the Science Based Targets initiative, confirming SEGRO’s ambitious pathway to decarbonisation. The commitment builds on years of progress and sets a clear, measurable route to net-zero by 2050, underscoring our responsibility to lead the sector in sustainable development.

Net-zero by 2050

Ensuring European cities are fit for the future
We completed the first phase of SEGRO Centre Paris Les Gobelins, transforming a former railway station into a 75,000 sq m urban logistics hub in the heart of the city, giving rapid access to end users and making low-carbon transportation a reality. One of our first customers to occupy the space will be the cargo-bike unit of DSV (formerly DB Schenker) which will be delivering parcels and pallets to customers in the city centre.

75k sq m of space transformed

Find out more
To read more about the extraordinary things happening in our properties across our portfolio, please visit www.SEGRO.com/media/news

Building the future in timber
SEGRO Logistics Centre Hamburg Neu Wulmstorf, which completed in May, is the first of its kind in northern Germany. Built with an entirely timber structure and powered by nearly 2MW of rooftop solar and all-electric systems, this scheme exemplifies how SEGRO turns brownfield sites into next-generation, low-carbon logistics hubs. We are aware of the responsibility we bear in terms of reducing greenhouse gas emissions. That is why we are focusing on sustainable solutions to drive forward the decarbonisation of supply chains – quickly and on a large scale. The SEGRO Logistics Centre Hamburg Neu Wulmstorf fulfils precisely this requirement...” Sven Schoon, Scan Global Logistics

Empowering a retail icon with a sustainable new home in Italy
We signed a pre-let to build a 81,000 sq m highly sustainable warehouse for Primark. It will be its first distribution centre in the country, supporting its expansion into one of Europe’s largest fashion retail markets.

81k sq m highly sustainable distribution centre

We are excited to further expand Primark’s presence in Italy with plans to develop our first depot here. The partnership with SEGRO represents a strategic step to support our growth ambitions and improve efficiencies in our supply chain...” Luca Ciuffreda, Primark

Investing in people, skills and communities for lasting impact
We launched a Community Investment Plan in St Albans, which means they are now in place across all of our target European markets.

15 Community Investment Plans

03 | SEGRO plc Annual Report & Accounts 2025 Overview Strategic Report Governance Financial Statements Further Information

About SEGRO continued

A modern, sustainable portfolio
SEGRO owns, manages and develops industrial and logistics space across the UK and Continental Europe. Our portfolio includes both urban and big box warehouses, as well as data centres.

Asset type by value
55% Urban warehouses	35% Big box warehouses	8% Data centres

Urban warehouses are located in, or close to, major population centres and business districts and provide flexible space for many different activities. They are used by a wide variety of businesses that need rapid access to end customers and skilled labour. They are generally situated close to main routes into the city.

Big box warehouses are typically used for storing and processing goods for regional, national and international distribution and are much larger than urban warehouses. They are often located far from the end customer but on major transport routes (mainly motorways and around ports, rail freight terminals and airports) to allow rapid transit.

Data centres house IT infrastructure for building, running and delivering applications and services, including the Cloud. They are often located close to densely populated areas and major financial centres in clusters known as Availability Zones.

SEGRO Park Köln City, Germany	SEGRO Logistics Park Oberhausen, Germany	Slough Trading Estate, UK

The remaining 2 per cent of our portfolio consists of industrial land used for non-warehouse purposes, for example car showrooms, self-storage facilities, hotels and offices.

04 | SEGRO plc Annual Report & Accounts 2025 Overview Strategic Report Governance Financial Statements Further Information

About SEGRO continued

Focused on Europe’s most attractive industrial, logistics and data centre markets
Our buildings are located in densely populated and supply-constrained cities, as well as key transportation corridors and logistics hubs across eight European countries. They are used by a diverse customer base, many of whom we work with across multiple countries and different asset types. The composition of our portfolio has been driven by a deep understanding of our customers’ needs, as well as our in-depth analysis of key regional characteristics, such as population density and infrastructure networks. Our teams on the ground in each of our key regions supplement their local knowledge and the insights we gain from our close customer relationships, with data-driven insights from our Location Assessments, which draw upon millions of data points across an ever-evolving European market.

05 | SEGRO plc Annual Report & Accounts 2025 Overview Strategic Report Governance Financial Statements Further Information

Urban warehouse	Big box warehouse	Data centre
l	l
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l	l
l	l
l
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l
l	l
l	l
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l	l
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| 1 Amazon | l | l | |
| 2 Deutsche Post DHL | l | l | |
| 3 Royal Mail Group | l | l | |
| 4 Virtus | | | l |
| 5 GXO | l | l | |
| 6 Fedex | l | l | |
| 7 Worldwide Flight Services | l | | |
| 8 Iron Mountain | | | l |
| 9 British Airways | l | | |
| 10 Yusen Logistics | l | l | |
| 11 Global Technical Realty | | | l |
| 12 Equinix | | | l |
| 13 CEVA | l | l | |
| 14 Maersk | l | l | |
| 15 La Poste (DPD) | l | l | |
| 16 Tesco Group | l | l | |
| 17 DP World | | l | |
| 18 SDA Express Courier | l | | |
| 19 Schwartz Gruppe (Lidl/Kaufland) | | l | |
| 20 Swissport | l | | |

Geographical split by value (SEGRO share)
62% UK	12% Germany	11% France	6% Italy	4% Poland	2% Netherlands	2% Spain	1% Czech Republic	7% Other

Transport and logistics	Retail (physical, online and hybrid)	Food and general manufacturing	Post and parcel delivery	Wholesale distribution	Data centre operators	Services and utilities	Technology, media and telecoms	Other
25%	18%	15%	10%	9%	7%	6%	3%	7%

A diverse customer base including 1,371 businesses from >35 different sectors

Positioned for long-term success
Our irreplicable portfolio is positioned to benefit from supply-demand dynamics that create favourable conditions for growth. Our active approach to managing this portfolio, along with our exceptional land bank and strong balance sheet, provides us with a runway to more than double our rental income and create significant value for stakeholders in the coming years.

1. Supportive structural trends
   We are focused on the industrial sector, where there are long-term structural trends driving occupier demand from a diverse range of businesses.

2. Restricted land availability limits supply response
   Weighted towards urban warehousing where there are significant barriers to entry due to competing uses of land from other asset classes and increasingly challenging planning regimes which severely restrict the development of new warehouses.

3. Market-leading pan-European operating platform
   Our teams on the ground in each market build close relationships with our customers, local communities and other business partners, helping us to drive value and create new opportunities.

4. Prime portfolio of existing assets
   One of the most modern and sustainable pan-European portfolios focused on the most attractive and supply- constrained European industrial, logistics and data centre markets.

5. Exceptional land bank for development
   Our extensive land bank is a rare and valuable asset and an important source of growth, both in terms of the physical assets that it allows us to develop and the rental income that those buildings generate.

6. Strong balance sheet
   A balance sheet with modest leverage and a diverse, long- duration debt profile that provides us with plenty of capacity for investment.

>35 different sectors supported	65% of our portfolio is in supply-constrained urban areas	19 offices in 9 countries	£22bn assets under management	£408m of potential rent from our land bank	31% loan to value ratio

06 | SEGRO plc Annual Report & Accounts 2025 Overview Strategic Report Governance Financial Statements Further Information

About SEGRO continued

Delivering sustained earnings and dividend growth through the cycle
Our clear strategy has delivered sustained and compounding earnings and dividend growth for over a decade. Our standing portfolio and development pipeline both contribute to this growth and we see significant further opportunity from delivering both powered shells and fully fitted data centres on our powered land bank.Significant further opportunity from our 2.5GW+ data centre pipeline Upside from profitable development pipeline Prime, highly reversionary portfolio supporting strong like-for-like rental growth

07 | SEGRO plc Annual Report & Accounts 2025 Overview Strategic Report Governance Financial Statements Further Information

About SEGRO continued

Earnings and NAV growth

Metric	FY25	Growth/CAGR
Adjusted earnings per share	36.6p	+6.1% (2016–2025 CAGR: 8%)
Dividend per share	31.1p	+6.1% (2016–2025 CAGR: 8%)
Adjusted NAV per share	925p	+2.0% (2016–2025 CAGR: 8%)

Enduring long-term trends that support demand and restrict supply

08 | SEGRO plc Annual Report & Accounts 2025 Overview Strategic Report Governance Financial Statements Further Information

About SEGRO continued

Digitalisation

Digitalisation continues to reshape consumer behaviour and the way people communicate and work. The rapid adoption of data-intensive technologies, including Artificial Intelligence, is accelerating the growth of e-commerce, increasing the need for highly efficient logistics space and driving demand for data centres across Europe as businesses process, store and move ever-greater volumes of data.

• 25% forecast e-commerce penetration across our markets by 2030, from 18% today ¹

Urbanisation

Growing populations require housing but also more goods and services. Industrial space is key to delivering these yet new residential schemes are often developed on industrial land and planning policies restrict the supply of new space.

• 12% expected increase in London’s population by 2045 ²

Supply chain optimisation

Efficient and reliable distribution networks and supply chains are of vital importance for successful, modern businesses.

• 47% of European occupiers expect their warehouse space requirements to increase over the next 1–3 years specifically to accommodate restructured supply chains ³

Sustainability

Just like us, our customers are looking to minimise their carbon footprints and reduce their overall occupancy costs through efficient, sustainable modern buildings.

• 65% of European companies now have validated ‘full value chain’ targets (Scope 1, 2 and 3) that include halbing carbon emissions by 2030 ⁴

Source: 1. CBRE penetration and Eurostat population data. 2. Greater London Authority, ONS. 3. Savills – European Real Estate Logistics Census 2025. 4. Accenture – Destination Net Zero 2025 report.

Urban warehouses	Big box warehouses
Enabling a diverse range of goods and services to be delivered efficiently and sustainably across growing cities	Enabling our customers to optimise and modernise their distribution networks

Düsseldorf

The challenge

Düsseldorf lies at the heart of the Rhine Ruhr region, one of the largest metropolitan areas in Europe, and is Germany’s sixth largest city. It’s vibrant bustling local economy means that a diverse range of businesses need flexible space with excellent transport links, easy access to local populations and high sustainability standards. Our customer, HAVI, is a global leader in integrated supply chain management for the food industry. They distribute frozen, chilled and dry products for a leading quick service restaurant chain and were supplying outlets in Madrid and northern Spain out of two ageing warehouse facilities, which were at capacity and involved very manual processes.

The solution

SEGRO Park Düsseldorf Flingern is our third urban development in the city and has been built on the site of an old steel manufacturing plant. The scheme will be delivered in phases, the first of which completed in early 2026, delivering units ranging from 400 to 9,500 sq m in size that are designed to be suitable for companies from a wide range of industries. The park quickly attracted five new customers, including a leading international courier to support local distribution, as well as fast-growing, app-only supermarket Picnic who provide free, sustainable home delivery via electric vehicles. Three additional businesses have secured smaller units, reflecting the park’s ability to accommodate both global operators and growing SMEs. The space was almost two-thirds leased at completion with strong interest in the remaining units.

We developed SEGRO San Fernando I for HAVI on a pre-let basis on the site of a former car park. It has great connectivity, located 15km from Madrid city centre with direct access to the A-2 and M-50 motorways. This 29,300 sq m warehouse allowed our customer to consolidate operations in a single state-of-the-art building, giving them more storage capacity and allowing them to automate and increase productivity. 1MW of solar panels will reduce their operating costs and wellbeing features such as sports facilities and rest areas will help attract and retain employees.

Metric	Value
Modern, flexible space (in Phase 1)	22,400 sq m
Hectare site	19
Loading bays and capacity for 22,300 pallets	30
Anticipated increase in productivity through automation	10%

09 | SEGRO plc Annual Report & Accounts 2025 Overview Strategic Report Governance Financial Statements Further Information

Data centres

Enabling the digital revolution and contributing to the upgrade of Europe’s digital infrastructure

At a glance

• Our first fully fitted data centre project
• 50:50 joint venture with Pure DC
• Targeting a pre-let with a major hyperscaler
• 70+ MVA power capacity (56MW IT load)
• c.£1bn potential investment (SEGRO’s expected cash equity contribution c.£150m)
• c.9% anticipated yield on cost

The challenge

As our lives and the world around us are increasingly digitalised there is a growing need for data centres close to modern cities, but a shortage of power and grid connections is constraining their development. The focus of our data centre developments in Slough over the past 20 years has been on powered shells, where we provide the real estate and power allocation and our customers fit out and operate the space themselves. We have been looking for ways to grow the data centre opportunity in our portfolio and maximise the value we can create from it.

The solution

The SEGRO Pure Premier Park Data Centre joint venture brings together a SEGRO-owned former industrial plot in West London that had insufficient power for data centre development, with 70 MVA of power sourced by Pure Data Centres Group (Pure DC), a partner with technical expertise in fitting out data centres and a strong track record of working with major hyperscalers. Together we will develop a 56MW IT load data centre in one of London’s key Availability Zones. We intend to pre-let the data centre to a major hyperscaler who will operate it themselves. Planning was submitted in late 2025, after which we will actively start marketing the site, which could be operational by 2030. This project is expected to not only create a significant amount of income and value but will also build our expertise in this fast-growing sector and ensure we maximise the value creation in our 2.5GW+ pipeline.

Scan here for our insights series with our JV partner Pure Data Centres Group
www.SEGRO.com /media/insights

10 | SEGRO plc Annual Report & Accounts 2025 Overview Strategic Report Governance Financial Statements Further Information

“A key milestone in our data centre strategy which creates optionality in our execution model and allows us to maximise the risk-adjusted returns from our data centre pipeline.”

Andrew Pilsworth, Managing Director, Data Centres and Strategic Partnerships

Strategic report

Section	Page
Chief Executive’s statement	11
Our business model and strategy	12
Responsible SEGRO	18
Key performance indicators	20
Performance review	26
Regional updates	28
Financial review	37
2025 Viability statement	39
Non-financial information and sustainability information statement	45
Streamlined energy and carbon reporting	46
Climate-related financial disclosures	47
Managing risk	48
Principal risks	56
59

11 | SEGRO plc Annual Report & Accounts 2025 Overview Strategic Report Governance Financial Statements Further Information

SEGRO Park Köln City, Germany

A record year of leasing

2025 was a successful year for SEGRO, despite the challenging geopolitical and macroeconomic environment. We contracted a record level of new rent, which has helped us to deliver growth in both earnings and dividends, whilst our broader business initiatives have created significant value for all of our stakeholders.

David Sleath, Chief Executive

“Our strong operational and financial performance, in more challenging occupier markets, is a testament to the expertise and dedication of our teams across Europe.”

Scan here to hear our CEO talk about our 2025 performance
www.SEGRO.com/ investors/ara25/ strategic-report

Our prime modern portfolio of industrial, logistics and data centre assets, is located in the most attractive and supply-constrained European markets and remained in demand from occupiers during 2025. Our teams worked hard to capture the significant mark-to-market rent opportunity (reversionary potential) in our portfolio and execute our profitable development pipeline. This activity has helped us to deliver a 6.1 per cent increase in Adjusted earnings per share and we are therefore recommending a 6.1 per cent increase in the total distribution to our shareholders to 31.1 pence for 2025 (2024: 29.3 pence) through payment of a 21.4 pence per share final dividend. As we head into 2026 we are seeing momentum build across our markets and the investments that we have made into our portfolio and platform over recent years leave us well placed to take advantage of the opportunities that we expect to arise during 2026 and beyond.

Highlights of the year included:

• £99 million of new headline rent contracted, including £37 million of reversion captured at lease events (with the UK delivering a record 46 per cent average rental uplift) and £26 million of new pre-lets signed, mostly in the second half of the year.# • High levels of customer satisfaction, retention and increased occupancy in our portfolio.

• Development completions equating to £29 million of headline rent, of which 93 per cent has been secured through leasing, delivering a development yield of 8.2 per cent once fully let.

• Proactive work to source power connections and prepare land to support future data centre development with an increase in our power bank opportunities to 2.5GW+.
• Creation of a joint venture with Pure Data Centres Group (Pure DC) to deliver our first fully fitted data centre in Park Royal, West London.
• The approval of our new science-based targets which align with the 1.5°C pathways and position our business to be net-zero by 2050.
• 1,227 volunteering days delivered from projects associated with our Community Investment Plans.
• Investment into our digital platform to deliver data-driven insights, drive efficiencies, embrace Artificial Intelligence (AI) technologies and deliver scale benefits.

12 | SEGRO plc Annual Report & Accounts 2025

Overview Strategic Report Governance Financial Statements Further Information

Chief Executive’s statement

Financial highlights

Metric	Value	Change	2024 Value
Adjusted profit before tax	£509m	+8.3%	£470m
IFRS profit before tax	£560m		£636m
Adjusted earnings per share (basic) 2	36.6p	+6.1%	34.5p
IFRS earnings per share (basic)	40.7p		44.7p
Adjusted NAV per share 2	925p	+2.0%	907p
IFRS NAV per share (diluted)	906p		889p
Portfolio value 3	£19.0bn	+1.0%	£17.8bn

1 Proportionally consolidated figures and metrics: SEGRO owns assets both wholly itself and through stakes in 50:50 joint ventures. In the Financial Statements, the profit from joint ventures is stated as a single figure in the Income Statement and the net asset value of joint ventures is stated as a single equity figure on the Balance Sheet; Note 7 to the Financial Statements provides the component parts of these figures. In operational terms, SEGRO does not distinguish between assets held in joint ventures from those assets which are wholly-owned. Therefore, unless specifically stated, in the Strategic Report, performance metrics and financial figures are stated reflecting SEGRO’s wholly-owned assets and its share of joint venture assets (known commonly as a ‘proportionally consolidated’ basis). Where the Strategic Report refers to the area of a property, it is stated at 100 per cent of the space, irrespective of whether the property is wholly-owned or held in a joint venture.

2 EPRA and adjusted metrics: The Financial Statements are prepared under IFRS. SEGRO management monitors a number of adjusted performance indicators in assessing and managing the performance of the business which they believe reflect the underlying recurring performance of the property rental business which is the Group’s core operating activity. These include those defined by EPRA as part of their mission to establish consistency of calculation across the European listed real estate sector. Pages 155 to 156 contain more information about the adjustments and the reconciliation of these to IFRS equivalents. SEGRO discloses EPRA alternative metrics on pages 181 to 187. Adjusted NAV per share is in line with EPRA NTA.

3 The percentage valuation movement during the period is based on the difference between opening and closing valuations for all properties including buildings under construction and land, adjusting for capital expenditure, acquisitions and disposals. More details are provided on page 28 and Table 3 in the Supplementary Notes.

A bird’s eye view of 2025

Structural trends reasserting themselves and helping momentum to rebuild in occupier markets

2025 was another eventful year on the geopolitical front and periods of uncertainty continued to weigh on occupier and investor sentiment, particularly during the first six months of the year when trade tariffs were in focus. Large international businesses were hesitant to commit to sizeable capital expenditure projects and decision making was delayed as occupiers waited for greater visibility. Lacklustre economic growth forecasts also had an impact and we noticed reduced appetite for expansion, which led to a slow start to the year across most of our markets both in terms of lettings and investment market activity. By the summer, however, tariff uncertainty had moderated and the long-term structural trends at play in our sector started to reassert themselves. Food and fashion retailers, as well as e-commerce players who had paused investment in their distribution network expansion post the pandemic, returned to the market to resume their growth plans and were joined by new entrants such as Asian retailers. Supply chain optimisation and resilience have continued to be a focus of our conversations with occupiers, and we sensed a desire to ‘get on with things’ with businesses accepting that a certain level of geopolitical uncertainty is the ‘new normal’ and acknowledging that they needed to progress their investment plans to achieve their future aspirations. Sustainability remained a priority, with sophisticated occupiers seeking modern, energy-efficient assets with wellbeing facilities that help them attract and retain labour. These trends led to increased enquiry levels across our portfolio and a more active second half of the year, particularly in some of our Continental European markets.

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Overview Strategic Report Governance Financial Statements Further Information

Chief Executive’s statement continued

SEGRO Park Tychy, Przejazdowa, Poland

External factors that impact our business

Our business is affected by both cyclical factors and structural trends. These impact both our occupier markets and the demand for industrial and logistics assets in investment markets. In the ‘Bird’s Eye View’ section of our CEO statement we explain what they meant for our business during 2025 and give some thoughts on how they will shape it going forward.

Cyclical factors
* Macroeconomic and geopolitical environment (including the interest rate cycle).
* Competitive supply.

Structural trends (see page 08)
* Digitalisation of our economies.
* Urbanisation.
* Supply chain optimisation.
* Sustainability.

A bird’s eye view of 2025 continued

Structural trends reasserting themselves and helping to build momentum in occupier markets continued

Two-thirds of our portfolio is located in and around Europe’s largest and most densely populated cities; this includes both our urban warehouses and data centres. Our urban portfolio attracts a highly diverse customer base which provides value-add goods and services and which needs to be within easy reach of its end customers and skilled employees. These dynamic businesses tend to have greater pricing power, and are less impacted by short-term macroeconomic factors, as they are more closely linked to the activity levels and prosperity of their nearest city rather than national GDP. This was particularly evident in our German urban markets during 2025, where we experienced active occupier markets throughout the year, particularly driven by demand from the ‘Mittelstand’, the large number of specialised SMEs that form the backbone of the German economy, despite the slump in manufacturing and exports. We also saw good demand in Warsaw, where there is a very limited amount of modern industrial space. Customers located in other urban markets, such as London and Paris, continued to be discerning around their real estate decision making. There were, however, areas of real strength, such as in our Heathrow portfolio where there is little competing supply and where occupiers are being displaced for data centre development. During 2025 we moved existing customers around our urban portfolio, supporting their changing business requirements, and also welcomed new ones, with notable activity driven by the active food and hospitality sectors in London. In other sectors we observed less appetite for expansion, with many choosing to renew leases on their existing space. Our teams worked hard, leveraging their strong customer relationships and asset management expertise, to negotiate a 36 per cent uplift on rent reviews and renewals during 2025 (46 per cent in the UK) which allowed us to capture a significant amount of the embedded reversion in our portfolio whilst retaining customers.

The supply of modern industrial space in major European cities remains limited. Land also remains in short supply, as industrial sites are repurposed for higher-value uses such as residential, and increasingly data centres, and greenfield land remains very difficult to unlock due to public policy and planning restrictions. These factors have kept the supply of new space in our chosen markets in check. The remaining one-third of our portfolio consists of big box warehouses, located in key logistics hubs and along major transportation routes, the most strategic locations for customers looking to optimise their supply chains and operate efficient distribution networks. Our big box lease lengths are typically long and we develop them on a mostly pre-let basis, which means that we have very high occupancy levels in this part of the portfolio. Growth is therefore primarily driven by demand for new build-to-suit space (pre-lets). It was this part of our portfolio that was most impacted by tariff and macroeconomic uncertainty during the first half of 2025. We saw occupiers favouring shorter leases on existing space or, where they needed to expand or move, often opting for speculatively developed space that was immediately available. As a result we had lower levels of development completions, development spend and land utilisation in our portfolio during 2025 than in recent years, although we have continued to progress our speculative urban schemes in markets such as Germany where occupier demand has been more buoyant.Improved sentiment post the summer led to a more active second half of the year and an increased number of pre-let signings, mostly within our Continental European business which contracted its strongest six-month period on record. Activity levels remained low in the UK until after the November Budget, but with that out of the way, enquiry levels picked up markedly going into year end. We have therefore entered 2026 with good momentum and have active conversations with potential occupiers in respect of existing space and for potential pre-let development projects across our key markets. The supply outlook for our big box markets also looks positive going forward. Much of the space that came to the market in 2023 and 2024 (either through new development, takebacks or sub-letting) is now being absorbed and speculative development starts have fallen dramatically. Net absorption has turned positive and vacancy rates are starting to fall across Europe, which will result in greater supply-demand tension, particularly for the most modern, well-located space, which should benefit our portfolio. We continued to see rental growth for prime industrial space during 2025, although lower activity levels for much of the year meant that it fell below our recent run rate. It was strongest in our most active urban markets where demand remained high and vacancy low (for example in our Heathrow portfolio) and we expect it to strengthen as occupier demand and activity levels accelerate across our broader portfolio. We continue to expect ERV growth of 3 to 6 per cent for our urban portfolio and 2 to 4 per cent for big box logistics in the medium-term.

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Chief Executive’s statement continued

A bird’s eye view of 2025 continued

Investment markets subdued but yields and asset values stable

Macroeconomic and geopolitical uncertainty also impacted investment market activity during 2025, with low volumes of transactions across most of our markets. The UK in particular was hampered by concerns over the impact of the economic outlook on occupiers, as well as interest rate expectations. Industrial and logistics assets remain amongst the favoured real estate sub-sectors, but continued high funding costs have meant that some investor attention has focused on higher-yielding assets with near-term reversionary opportunity. This has meant less activity in prime markets, with lot sizes remaining smaller and few large portfolios traded. Assets that traded have supported current valuations and prime yields in both the UK and most Continental European markets were broadly flat during 2025 although there was a small amount of yield compression in our Southern European markets. The outlook for yield and asset valuations is hard to forecast but markets are expecting further UK rate cuts in 2026, now that inflation has returned closer to target levels, which should be supportive of increased investment market activity, if, as expected, occupier market fundamentals continue to improve.

Growing the significant data centre opportunity in our portfolio

Data centre demand continues to grow in key European Availability Zones

The European data centre market remains in expansionary mode and is forecast to grow strongly over the coming years. This is currently being driven by the expansion of Cloud capacity, as hyperscalers invest in the infrastructure needed to process the huge amounts of data created as our lives become increasingly digitalised and as businesses move their digital infrastructure online. Hyperscalers prefer building out Cloud-related capacity close to major population and financial centres, where data can be transferred quickly (known as ‘low latency’), and ideally within clusters called Availability Zones. The Slough Trading Estate is Europe’s largest data centre cluster, part of the London Availability Zone, and we estimate it provides almost half of the UK’s data centre capacity. The greatest constraint in these markets is access to power, with long (three to five year) lead times on new grid connections in most prime European data centre markets. But land is also in short supply in these locations, so data centres are often competing with industrial, and sometimes residential uses. Finally, planning is far from straightforward due to environmental and political concerns, particularly if it requires unlocking land from green belts on the edge of cities. Sites that have power, zoned land and planning are therefore very valuable assets. These constraints mean that demand for Cloud capacity is expected to outstrip supply over the coming years, although there will likely be periods of faster expansion and others where there is less activity, as hyperscalers tend to take new capacity in large increments. These same Availability Zones are also set to benefit from demand related to AI, in particular, the rapid scaling of ‘Inference AI’, also known as the ‘user-interface’. Similar to the Cloud, many of these workloads also need to be close to end users, and for those related to business activities, resilience is particularly important. They will therefore naturally gravitate to the same established clusters as current Cloud facilities. By contrast, AI training facilities, which tend to grab much of the media headlines, are latency insensitive and are typically located in more peripheral areas where land and power are less constrained and energy is cheaper. The Inference market related to business activity is, ultimately, expected to be much larger than the AI training market. We have proactively built one of the largest banks of available power and zoned land in Europe. Our 2.5GW+ data centre pipeline is exclusively located in or close to established and emerging European Availability Zones, where demand is expected to be strong, being fuelled by Cloud adoption today and we expect it to be ‘super-charged’ by the widespread adoption of AI. The Simplified Planning Zone (SPZ) in Slough pre-approves planning for both industrial and multi-storey data centre development for the next nine years, which provides us with a significant competitive advantage in this attractive data centre market. During 2025 we strengthened our data centre platform with key senior hires. We also brought in dedicated energy expertise to help us expand our power-enabled land bank and accelerate connections.

An important milestone in our data centre strategy

We also announced an evolution in our data centre strategy with the formation of the SEGRO Premier Park DC joint venture. This is a 50:50 partnership with Pure Data Centres Group (Pure DC) to build our first fully fitted data centre in Park Royal, West London. Although we have been active in the data centre space for over 20 years, we have previously only developed ‘powered shell’ buildings so this marked a major step-up in our strategy as we look to unlock value from our data centre pipeline.

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Chief Executive’s statement continued

SEGRO Park Elancourt, France

We have a significant opportunity for income and value creation in our growing 2.5GW data centre pipeline.”

Growing the significant data centre opportunity in our portfolio continued

An important milestone in our data centre strategy continued

The joint venture brings together land owned by SEGRO (a former industrial site that had insufficient existing power for data centre use) with power secured by Pure DC. It also allows us to benefit from the technical expertise of a partner with a strong track record of working with major hyperscalers as we move into delivering fully fitted facilities. Going forward, we intend to develop both powered shells and fully fitted facilities, with the latter only through joint ventures such as our partnership with Pure DC. This will allow us to share the capital commitment and leverage our partners’ expertise in leasing to, and fitting out data centres for, hyperscalers, removing the need to build out this technical and resource-intensive capability ourselves. We can therefore execute on the significant opportunity in our data centre pipeline in a way that attracts the most demand for each site and maximises the income and value generation for SEGRO. A planning application has now been submitted for the development of the Park Royal facility and we will start working on securing a pre-let with a major hyperscaler once this is approved. Alongside this we have progressed conversations on other data centre sites and have a number of powered shell and fully fitted opportunities in various stages of discussion, some of which we hope to secure in 2026.

Driving performance through the application of our clear strategy

Clear and disciplined approach to capital allocation

Whilst we have great confidence in the long-term structural trends that underpin demand for industrial, logistics and data centre space in our chosen markets, and are encouraged by the momentum that is currently building in occupier markets, we are also focused on how we can drive performance from our portfolio through the use of levers within our own control. Disciplined capital allocation has been a key pillar of our strategy for more than 15 years and we take a rigorous approach to the deployment of capital and its funding. We continue to believe that development on the land we own or already control is the most accretive use of our capital, profitably turning our exceptional land bank into modern assets in prime locations where we can drive strong returns. Enquiry levels and active negotiations on pre-lets point to an increased number of opportunities in 2026, which would allow us to accelerate our development capital expenditure and increase the utilisation of our land bank.We remain very selective in our acquisition activity, prioritising modern assets that offer strong returns potential and complement our existing portfolio, and land that we expect to utilise in the near term. Our investment activity is always part funded by disposals. Every asset in our portfolio, including built assets and land, is regularly assessed to ensure its expected future return justifies a place in the portfolio. A higher interest rate environment naturally means that we have raised the bar not only for new investment, but also for what we retain. We therefore expect to accelerate the pace of our disposal programme in 2026 to reinvest capital in opportunities offering more attractive risk-adjusted returns.

Operational excellence delivering growth and increased efficiency

Our strong customer relationships and the expertise of our market-leading operating platform have been instrumental in our ability to capture reversion and drive growth from our portfolio even in more challenging market conditions. Over recent years we have made significant investments into this platform both through the opening of offices in additional markets and digital initiatives to provide additional insights and improve processes. These initiatives should allow us to grow our rent roll through capturing reversion, reducing vacancy and developing new space without needing to add materially to our head count or cost base.

Strong balance sheet and low average cost of debt

Our finance team has worked hard to ensure our balance sheet remains in great shape to support our future plans. Leverage is moderate and should remain so as we increasingly look to fund more of our investments through disposals and we also always consider opportunities to share capital intensity with third-party investors. Our weighted average cost of debt remains low at 2.6 per cent, helped by a diverse, long-duration debt profile and our ability to tap into both euro and sterling debt markets. We expect any further increases in finance costs as we refinance maturing facilities at current interest rates to be more than offset by the reversion that we have to capture within our portfolio, helping to limit the impact on earnings.

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Chief Executive’s statement continued

Community volunteering, Poland

Successful execution of our carbon and community initiatives

Our Responsible SEGRO ambitions are now well integrated into the way that we do business day to day, but we continue to challenge ourselves to go further and faster. They are also having tangible impacts on our business performance, helping to strengthen relationships, create new opportunities and ensure that our business is fit for the future. We remain committed to our low-carbon growth goal: reducing the carbon created by our development programme and emissions linked to the operation of our buildings through improvements in energy efficiency and increases to the solar capacity of our portfolio. During 2025 we had our near-term and net-zero carbon reduction targets approved by the Science Based Targets initiative (SBTi) and made meaningful progress towards them with reductions in both our corporate and customer and average embodied carbon intensity metrics. Our Community Investment Plans (CIPs) continue to be a huge success and we have now achieved our target of having plans in each of our major markets. We have continued to broaden our volunteering programmes, with our employees, customers, suppliers, shareholders and other stakeholders working together to deliver 1,227 volunteering days in our local communities. The impact of our CIPs on the communities near our assets is significant and they embed our buildings as local centres of economic success, helping to create employment opportunities for local people and improving the environment and local amenities for local residents. This focus on sharing the long-term benefits of our estates with our local communities positions us as a preferred partner for local authorities and is instrumental in creating future opportunities.

Our people at the heart of our success

Real estate may be considered a physical asset class but the business of acquiring, developing and managing properties requires great people. It is their knowledge, expertise and commitment that builds a market-leading operating platform and provides competitive edge. Nurturing talent therefore remains a key priority for our business. During 2025 we continued to strengthen our culture, embedding our Values-led approach to performance, development and engagement; completed strategic hires in senior roles; and made further progress towards our diversity and inclusion targets. We want to enable our people to be their best and fulfil their potential and I am particularly proud of how our teams conducted themselves during 2025. When occupier markets are less buoyant everything is harder. Negotiations are more complex, getting deals signed takes longer and relationships become even more important. It is in these markets that the strength of an operating platform really shines through and that was true at SEGRO during 2025 as we faced challenges head on, refused to give up and maximised the opportunities that presented themselves. I am delighted that their hard work, skills and creativity, and professionalism have resulted in such a strong operating and financial performance in 2025 and would like to thank everyone for their contributions. It is this dedication and focus, that will ensure we continue to deliver on our Purpose of creating the space that enables extraordinary things to happen and ensure the future success of our business.

Outlook

We have strong conviction in the structural trends driving demand for industrial, logistics and data centre space. They led to higher levels of pre-let activity in the second half of 2025 and this momentum has continued into 2026: enquiry levels have increased and we are actively negotiating a strong pipeline of lettings on both existing space and for pre-let developments, including data centres. Occupiers are prioritising prime locations and the most modern, sustainable assets to help them meet high consumer expectations and improve their operational efficiency. Our focus on Europe’s most attractive and supply-constrained markets – two-thirds in major cities and one-third in key logistics hubs – positions us well to meet their discerning requirements. Our irreplicable portfolio, exceptional land bank, and one of the largest data centre pipelines in Europe prime us for further sustainable growth ahead. We expect increased activity levels and tightening supply-demand dynamics to drive further rental growth and also have the potential to add:

• £152 million of additional rental income from our standing portfolio via rent reversion (£99 million) and leasing vacant space (£53 million).
• £355 million of new rent from delivering industrial, logistics and powered shell data centre projects on our land bank, with a profitable development yield of 7 to 8 per cent.

Developing fully fitted data centre buildings on suitable sites within our 2.5GW+ powered land bank offers significant additional income and value creation opportunity. We have the right assets, team and balance sheet, leaving us well placed to capitalise on strengthening occupier markets with multiple levers to drive performance and deliver further compounding growth in earnings and dividends.

David Sleath, Chief Executive

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Chief Executive’s statement continued

Colleagues at SEGRO Slough office, UK

Positioned for long-term success

Our business model and the consistent application of our strategy have created a portfolio of irreplicable pan-European industrial and logistics properties and data centres, as well as an exceptional land bank. It all starts with a deep understanding of our customers’ needs and the markets in which we operate. With these insights our market-leading operating platform expertly manages our assets to drive growth, unlock value and seek new opportunities. Our strategy shapes both our day-to-day decisions and our long-term ambitions, and it provides a clear direction that, together with our strong culture, empowers us to deliver on our Purpose.

Our Purpose

We create the space that enables extraordinary things to happen. We are both a creator of exceptional buildings and an enabler for our stakeholders, particularly our customers, employees and local communities, to achieve extraordinary things.

Our culture and Values

We have a special company culture that permeates throughout SEGRO based upon a care for our stakeholders and each other, and we have a mutual desire to create a successful business that we are proud of. Our Values and Purpose were created with input from the entire workforce; they have stood the test of time and underpin everything that we do.

Read more our Values on page 25
Read more about how the Board manages and monitors our Purpose and culture on page 79

Our strategy

Our clear strategy drives both our day-to-day decision making and long-term thinking. The combination of our Disciplined approach to capital allocation, commitment to Operational excellence and ensuring we have an Efficient capital and corporate structure keeps us focused on delivering sustainable long-term growth in income, asset values and returns.

Responsible SEGRO

Responsible SEGRO lies at the heart of our strategy because it is woven through everything that we do – from the day-to-day management of our portfolio and platform to our investment decisions. We have three clear priorities: Championing low-carbon growth, Investing in our local communities and Nurturing talent.

Our business model

1.Market analysis We anticipate long-term trends and listen closely to our customers’ evolving needs, ensuring we invest in the right locations.
2. Acquisitions We acquire high-quality assets and land in attractive markets, sourcing opportunities off-market where possible to strengthen our portfolio and to create future potential.
3. Development We develop modern, flexible, and sustainable buildings in key locations, engaging with local communities throughout the development process to ensure our spaces deliver shared value and make a lasting positive impact.
4. Active asset and customer management We deliver outstanding customer service and actively manage our assets, seeking to strike the right balance between occupancy and rental growth. We continuously look for opportunities to create additional value through refurbishment, redevelopment, and repositioning – including exploring alternative uses that respond to changing needs.
5. Portfolio review We undertake a detailed, annual analysis of our portfolio to maintain a clear understanding of the risk-return profile of every asset and ensure it aligns with our long-term ambitions.
6. Asset recycling We dispose of assets where returns have been optimised or where capital can be more effectively deployed elsewhere, supporting sustainable, future-focused growth.

18	SEGRO plc Annual Report & Accounts 2025 Overview Strategic Report Governance Financial Statements Further Information
Our business model and strategy	Our strategic pillars	Disciplined capital allocation	Operational excellence	Efficient capital and corporate structure
Using our in-depth knowledge of our customers and the trends impacting their businesses, to pick markets and assets that create the right portfolio shape, actively manage its composition and adapt our capital deployment according to our assessment of the property cycle.	Leveraging our operating platform to optimise performance through dedicated customer service, expert asset management, development and operational efficiency.	Underpinning the property level returns from our portfolio with a lean overhead structure, the best technology-enabled processes, an efficient capital structure and appropriate financial leverage.	Responsible SEGRO determines how our environmental and social contributions are embedded as priorities within our business strategy. It is fundamental to how we create space that enables extraordinary things to happen and ensures that our business is fit for the future.
2025 outcomes
• Prioritising investment into our profitable development pipeline, signing new pre-lets and starting speculative development in markets where there is strong demand and limited supply. • Selective asset acquisitions, focused on core markets and assets with strong returns potential and wider portfolio benefits. • Well-executed disposals to release capital to invest into opportunities with higher risk-adjusted returns.		• 91 per cent customer satisfaction score thanks to our proactive asset and property management teams. • Capturing the significant reversionary potential in the portfolio at lease events whilst maintaining high levels of customer retention. • Successful execution of our development programme and further reduction in our carbon emissions. • Introduction of SEGRO Asset Management Application (SAMA) to digitalise our asset management process.		• Active liquidity management to reduce the impact of refinancing and allow for reinvestment into higher-growth opportunities. • Continuation of our digital transformation programme, including the rollout of Copilot to all employees with a structured training programme; and the introduction of a new facilities management system. • ‘Best Value initiative’ continues across the business to identify cost efficiencies and ensure we are getting the best value from our suppliers, helping drive a reduction in administrative costs.
Relevant risks	Relevant risks	Relevant risks	Relevant risks	Relevant risks
Macroeconomic impact on market cycle	Portfolio strategy and execution	Major event/business disruption	Health and safety	Environmental sustainability and climate change
Financing strategy	Legal, political and regulatory	People and talent	Operational delivery

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Our business model and strategy continued
We are committed to being a force for societal and environmental good Responsible SEGRO demonstrates how our environmental and social contributions are embedded within our business. This commitment has been at the heart of how our business operates since it was founded. It has been instrumental in SEGRO’s success over the past century and will be just as important for the next. This commitment is lived by our employees every day. It is about doing the right thing and making a positive impact wherever we operate. Responsible SEGRO is a long- term priority that aims to generate value both for us and for our stakeholders. We will continue to evolve in response to our changing environment to keep delivering mutual gain.” Paul Dunne, Managing Director, Operations, Digital and Customer	Responsible SEGRO priorities (and relevant UN SDGs)	Championing low-carbon growth	Investing in our local communities and environments	Nurturing talent
We are committed to reducing both the operational and embodied carbon intensity of our properties. We want to play our part in tackling climate change and have ambitious net-zero goals. In 2025, our science-based carbon reduction targets (with a baseline of 2023) were validated by the Science Based Targets initiative, in line with latest best practice.	We have a strong track record of supporting local communities and employment (including training) is one of the areas that our Community Investment Plans (CIPs) focus on. We want to play our part in reducing inequalities and ensuring more people have the right skills to access meaningful work.	We want our people to have rewarding and fulfilling careers and are committed to fair pay throughout our operations and also our supply chain, and to ensuring that our spaces provide safe working environments and promote health and wellbeing for all.
Corporate and customer carbon intensity	20.0kgCO 2 e/sq m
Average embodied carbon intensity	280kgCO 2 e/sq m
Solar capacity	145MW
Visibility of customer energy data	91%
Number of Community Investment Plans	15
Charitable giving	£2.8m
Total volunteering days across projects in our local communities	1,227
Unemployed people trained (368 of whom are now in employment)	1,666
‘Your Say’ engagement score	88%
Training hours	8,407
Voluntary employee turnover	6%
Gender split of workforce	49% male 51% female

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Responsible SEGRO	How we deliver on our Responsible SEGRO goals
We have long-held commitments to leadership in health and safety, stakeholder engagement, corporate governance and being a good corporate citizen. Our Responsible SEGRO framework helps us to articulate our sustainability goals and address our stakeholders’ most material concerns. Within this we have focused in on three enduring strategic priorities, which were determined through engagement with our stakeholders. These priorities cover the areas where we believe we can make the greatest business, environmental and social contribution. They are: Championing low-carbon growth Investing in our local communities and environments Nurturing talent For each of these areas we have established challenging targets that are linked to four non-financial KPIs and to the annual bonus for all employees. We report a summary of our progress with these during 2025 in the following section and discuss our priorities for 2026 – more detailed information (along with full data sets) can be found in our 2025 Responsible SEGRO Report. We intend to set additional, more specific, supporting targets as necessary and expect our actions and approach to evolve over time to reflect our achievements, technological change and the priorities of our stakeholders and wider society.	ESG reporting and ratings	We recognise that transparency around our sustainability performance is essential to building trust with our stakeholders. As the wider Environmental, Social and Governance (ESG) reporting environment is evolving, we continually monitor our approach to ensure that we are aligned to, and engaged with, the most relevant frameworks in order to provide clear, reliable, and meaningful disclosures to meet the needs of our investors, customers, employees, and communities, whilst demonstrating our performance against our Responsible SEGRO framework.

Section 172 statement
Section 172 of the Companies Act 2006 requires the Directors to promote the success of the Company for the benefit of its members, whilst having regard to the interests of stakeholders in their decision making. The Board considers that it has complied with the requirements of Section 172 throughout the year. Further details on the Board’s interactions with SEGRO’s stakeholders are set out on page 84.This currently includes reporting against established frameworks including the Global Reporting Initiative (GRI) and Task Force on Climate-related Financial Disclosures project (TCFD), as well as the National Equality Standard, Parker Review and FTSE Women Leaders. In addition, we will comply with relevant and applicable sustainability reporting requirements as these become mandatory for us. We also engage with various organisations that review and assess our ESG performance and disclosures. These include agencies that monitor our disclosures, such as MSCI, who rate us ‘AAA’, as well as organisations that require active participation and additional transparency, such as CDP, who include us on their ‘A’ list. We also participate in indices such as FTSE4Good, who rate us at 3.3 (2.8 sub-sector average). The above are SEGRO’s latest ratings at the time of publication.

SEGRO Day of Giving, UK Responsible SEGRO gives the opportunity for us to be a force for social and environmental good, a key part of what makes our culture so special and underpins our employee value proposition.” Margaret Murphy, Group HR Director

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Strategic Report
Governance
Financial Statements
Further Information

Responsible SEGRO continued

Read more in our Responsible SEGRO Report: www.SEGRO.com/Responsible-SEGRO/Responsible-SEGRO-review

Championing low-carbon growth in 2025

Metric	2025 Value	2024 Value	Notes
Corporate and customer carbon intensity	20.0kgCO2e/sq m	24.0 kgCO2e/sq m	1
Average embodied carbon intensity of our developments	280kgCO2e/sq m	318 kgCO2e/sq m	2
Solar capacity	145MW	123MW
Visibility of customer energy data	91%	87%

1 Restated.
2 Excludes developments that are not representative of the carbon intensity of our typical developments.

SEGRO’s net-zero journey

As an owner, manager and developer of buildings, we have a significant part to play in tackling the challenge of climate change, in line with the guidance and commitments of the 2015 Paris Agreement and 2018 Intergovernmental Panel on Climate Change statement. We need to ensure that our buildings are fit for purpose for the future. One of the ways we do this is to build adaptable buildings, suited to more than one customer. This ensures a longer lifespan for the building as well as reducing the risk of vacancy and future refurbishment costs.

Championing low-carbon growth has been a priority for SEGRO for over a decade. We have had our carbon footprint data externally assured annually since 2014. 99 per cent of our carbon emissions in 2025 were scope 3, and, as can be seen in the chart to the left, the two largest contributors were energy use in our spaces (our ‘corporate and customer’ carbon emissions) and the energy connected to the materials that we use in our construction and refurbishment projects (our ‘embodied’ carbon emissions). Together these accounted for 90 per cent of our emissions.

We originally set carbon reduction targets in 2021, and after consistently tracking in line with or ahead of these targets we set new targets in 2024. Both sets of targets were approved under the international Science Based Targets initiative (SBTi). The SBTi methodology identifies pathways for companies to reduce the emissions within their value chains to align with 1.5°C pathways.

Our carbon reduction targets

Our targets are based on reductions in both corporate and customer carbon intensity and embodied carbon intensity. These targets are based on sector-specific SBTi ‘Buildings’ criteria and were validated by the SBTi in July 2025. Our targets have a baseline of 2023, a near-term interim goal in 2034 and a net-zero target year of 2050. The target trajectories are steeper to 2034, then shallower out to 2050. The near-term 2034 targets are an 80 per cent reduction in corporate and customer carbon intensity and a 58 per cent reduction in the embodied carbon intensity of our developments. Once our 2050 target year is reached, the SBTi target methodology allows for offsetting residual emissions with best practice carbon removals, accounting for a maximum of 10 per cent of target emissions.

Setting targets under the new criteria has allowed us to identify some methodology improvements (outlined in our Responsible SEGRO Report 2025). This means that the 2023 and 2024 figures disclosed are a restatement of our previously reported figures. We anticipate that improvements to calculations and methodology, and the associated restatements and rebaselining, will be important and ongoing features of our carbon management efforts. We are committed to making a commensurate and ambitious contribution to limiting global warming. However, not all of the actions needed to meet our targets are within our control, and carbon accounting methodologies are still evolving. Setting and publicising carbon reduction targets are crucial elements of carbon governance, and we are committed to being transparent about our journey.

Key elements of our carbon reduction strategy

Corporate and customer emissions:
* Improve the energy efficiency of our units through construction and refurbishment by targeting an Energy Performance Certificate (EPC) rating of B or better, ensuring alignment with and preparedness for potential upcoming regulatory requirements.
* Install solar panels to generate energy for our customers, optimise on-site usage through battery storage and microgrid technology, and, where grid capacity allows, export surplus electricity to the local network.
* Replace fossil fuel heating systems with efficient electrical heating.
* Purchase certified renewable electricity for SEGRO’s own use and for those customers on whose behalf we procure energy.
* Where customers do procure their own energy (the majority of cases), encourage them to procure certified renewable electricity and track uptake – using our ‘green lease’ clauses.

Embodied carbon emissions:
* Work with our partners to procure and utilise low-carbon materials such as timber and recycled electric arc furnace steel.
* Support the development of low-carbon concrete solutions and adopt them widely once proven suitable.
* Design embodied carbon out of our buildings, changing layouts and geometries.

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Strategic Report
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Responsible SEGRO continued

SEGRO’s carbon footprint

Emissions Category	Percentage of Total	Absolute Value ('000 tCO2e)
Corporate and customer emissions	52%	215
Total embodied carbon	38%	153
Other procurement related emissions	10%	39

Corporate and customer emissions intensity (kgCO2e/sq m)

• Maximise the use of zero-carbon electricity in our portfolio
• Generate and optimise zero-carbon electricity
• Efficient use of low-carbon heating
• 80% reduction by 2034
• Net Zero by 2050

Embodied carbon intensity of developments (kgCO2e/sq m)

• Build with low-carbon materials
• Design low-carbon buildings
• 58% reduction by 2034
• Net Zero by 2050

Championing low-carbon growth in 2025 continued

Our progress in 2025

We are committed to driving carbon out of our business as quickly as we can and helping our customers reduce their own carbon footprints. We focus our carbon reduction activity on the areas which are most material: emissions related to our development programme and from energy use in our spaces. To manage targets in these areas we use an emissions forecasting process, supported by a dynamic governance process for our carbon management efforts. We also continue to utilise our powerful carbon reporting platform to help us to manage the thousands of gas and electricity datapoints and deploy sophisticated estimation methods to fill gaps. We continue to rigorously review and implement best practice reporting methodologies at the same time.

Our corporate and customer carbon intensity reduced by 17 per cent from 2024 to 2025, primarily driven by lower-carbon electricity being used in our spaces, and helped by our rooftop solar panels. The average embodied carbon intensity of representative developments in our development programme reduced by 12 per cent from 2024 to 2025. Our Mandatory Sustainability Policy commits us to carry out third-party verified embodied carbon assessments for all development projects over 5,000 sq m, and we work closely with our suppliers to innovate and remove carbon wherever possible. Key steps we have taken in our 2025 developments include increasing our use of low-carbon steel, cement replacements and timber. We are therefore on track for both of our main science-based carbon reduction targets, as can be seen in the charts below. However, as our 2024 corporate and customer intensity shows, we do not expect progress towards our targets to be linear. Achievement of our targets is also highly dependent on the actions of our stakeholders and developments in the wider market, particularly the rollout of renewable energy generation capacity and low-carbon building materials.

Beyond our approach to carbon, we also think carefully about the impact of our operations on other natural resources and the local environment. Biodiversity remains an important focus, and our development projects aim to have a positive impact on our local communities and environments. We also support our customers in managing water consumption, and our construction partners in minimising waste generation and maximising reuse opportunities.

2025 highlights

• 17 per cent reduction in corporate and customer emissions intensity.
• 12 per cent reduction in the embodied carbon intensity of our developments.
• 4 per cent increase in the visibility we have of our customer energy data.
• 81 per cent of the portfolio with an EPC rating of B or better (2024: 76 per cent).
• 100 per cent of our development completions were rated BREEAM ‘Excellent’ or higher.
• 145 MW solar capacity installed at our properties, a 22 MW increase in 2025.
• On track for both of our main science-based net-zero targets.Priorities for 2026
• Drive further reductions in our corporate and customer emissions.
• Continue to increase the automation of the retrieval of our customers’ energy data.
• Continue to replace gas with efficient low-carbon heat sources.
• Work with our supply chain partners to further reduce embodied carbon.
• Progress our solar installation strategy, where economically viable.
• Prepare for the Energy Performance in Buildings Directive Recast 2024, which is due to impact our European markets in May 2026.
• Deliver SEGRO-wide biodiversity assessment.

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Strategic Report
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Responsible SEGRO continued

22.5	24.0	20.0
2023	2024	2025
331	318	280
2023	2024	2025

* Restated.

Investing in our local communities and environments in 2025

Supporting the communities that live and work around our key industrial assets is a core part of our Purpose and strategy, and something we care deeply about. We are committed to building strong, long-term relationships with local organisations so that together, we can make a positive and lasting difference in the places where we have a significant presence. We believe that working in partnership with organisations who truly understand the needs of local communities enables us to have the biggest impact. By taking this approach, we can help tackle issues such as inequality and poverty and make a meaningful difference to the lives of people living close to our sites across the UK and in Europe. We work with a wide range of trusted charity partners who bring deep local insight into the challenges communities face, alongside the expertise and resources needed to deliver programmes that are practical, outcome- focused and capable of making a lasting impact. We bring this to life through Community Investment Plans (CIPs), which provide a clear framework for investing in projects that improve the quality of life for local people – particularly those facing barriers to careers advice, employability support, and health and wellbeing services. The CIP programme enables our teams in key markets to respond effectively to local priorities through impactful community and environmental programmes.

Areas of focus
Education and employment: We partner with local education establishments to help prepare young people for the world of work through our education programme, as well as helping people from disadvantaged or marginalised backgrounds into employment or better jobs. Since its launch in 2022, the programme has engaged over 36,000 students from diverse backgrounds in the UK, Poland, Germany and France, as well as helping 1,126 unemployed people into work.
Environment: Delivers community projects that improve the biodiversity of the local area and the health and wellbeing of the local residents.

Volunteering is a vital part of the success of our CIPs

Our employees, customers, suppliers and public sector partners have proved once again the incredible impact they can have when they come together with a shared goal of improving the lives of local people. During 2025 a total of 442 employees (95 per cent of the workforce) participated, along with 354 suppliers, customers, public sector partners and financial stakeholders, delivering a total of 1,227 volunteering days. We also launched our fifteenth CIP in St Albans, Hertfordshire, which is linked to the delivery of our new scheme SEGRO Logistics Park Radlett. We now have 15 CIPs in place across the UK and Europe, initial projects included: our Spanish team launching their first sustainability education programme, and Poland celebrating their five-year anniversary of SEGRO Academy which has helped develop the skills of 5,077 students. Alongside our employees we had a tremendous response with 202 customers and suppliers, by providing volunteers to mentor and host school visits to their businesses or construction sites, as well as supporting projects that helped improve the environment for local communities. Our buildings also play an important role in supporting our local communities. Our estates provide valuable space for charity partners such as City Harvest, Slough Foodbank and The Felix Project to distribute food, that would otherwise be wasted, to vulnerable people in our local communities.

2025 highlights
* Community projects are now being delivered in 23 regions, cities and towns across our portfolio.
* A record numbers of customer, suppliers and public sector stakeholders participated in the CIP programme.
* New CIP launched in St Albans, Hertfordshire.

Priorities for 2026
* Expand participation in the CIP by increasing the number of engaged customers, public sector partners, and suppliers.
* Strengthen data collection and analytic platform to improve programme efficiency, performance management, and outcomes.
* Embed further qualitative measurement within the CIP programme to better capture lived experience, progression, and wider impact.
* Measure and communicate the social value impact of the 2025 CIP programme (UK only).

The impact of our Community Investment Plans during 2025

Metric	2025 Value	2024 Value	Since Launch of CIP Programme
Young people engaged	11,343	10,289	36,575
Environmental community projects	54	49	173
Unemployed people trained	1,666	1,197	4,946
Unemployed people into employment	368	349	1,126
Students mentored by SEGRO employees and customers	154	140	418

24 | SEGRO plc Annual Report & Accounts 2025
Overview
Strategic Report
Governance
Financial Statements
Further Information
Responsible SEGRO continued

Metric	2025 Value	2024 Value
Charitable giving in 2025	£2.8m	£2.3m
Total volunteering days	1,227	973
Number of Community Investment Plans	15	14

Nurturing talent in 2025

Our Purpose of creating the space that enables extraordinary things to happen is as relevant for the 463 people that we employ across nine countries as it is for our other stakeholders. Our People are at the heart of our success and central to who we are. We are committed to nurturing a diverse community where colleagues can thrive, grow and perform at their best. High standards of conduct are embedded in our Code of Business Conduct and Ethics, guiding how we work every day. During 2025 we embedded our Values-led approach across performance, development and engagement to help strengthen our culture. Colleague engagement remained high, supported by our ‘Say it like it is’ value, which encourages open and honest conversations and ensures colleague feedback shapes meaningful action at both local and Group-wide levels. Talent retention also remained strong with voluntary turnover at just 6 per cent, reflecting the care that underpins our employee experience. We continued to strengthen leadership and future skills, combining selective senior appointments, including our new Chief Financial Officer, with enhanced development for existing leaders. We also continued to build our Data Centre and Energy capabilities, reflecting their growing strategic importance and the long-term opportunities within these rapidly expanding sectors. This involved targeted recruitment and evolving how our existing expertise is aligned across the Group, ensuring we are well positioned to scale effectively and meet future customer demand. Our commitment to inclusion and diversity advanced in a thoughtful way. Our workforce remains broadly gender balanced, with 51 per cent women and 49 per cent men. We are proud of the meaningful progress made towards our senior leadership gender goal of 40 per cent female representation by the end of 2025: it was 39 per cent at the end of 2025, rising further to 41 per cent at 1 January 2026. Progress on ethnic minority representation in senior leadership is developing more slowly, and we remain committed to steady, sustainable improvement towards our 15 per cent target by the end of 2027\footnote{2}. We want colleagues to work in a healthy, safe and secure environment supported by comprehensive health and safety training, wellbeing initiatives and appropriate adjustments for employees who are, or become, disabled. Our Accident Incident Rate\footnote{3} in 2025 was 0.46 (2024: 0.46). To attract and retain the best talent we offer competitive compensation including variable pay, share awards and a broad range of benefits, including enhanced family-friendly policies. We also invest in training, development and secondment opportunities to help colleagues build skills and grow their careers.

\footnote{1} Achieved by 1 January 2026.
\footnote{2} Read more on Diversity, Inclusion and Equal Opportunity, including key statistics, on page 96.
\footnote{3} Employee injuries per 100,000 hours worked.

2025 highlights:
* Embedded our Values-led approach across performance, development and engagement.
* Key senior hires to strengthen our leadership capability and enhanced development for existing leaders.
* Advanced our diversity and inclusion agenda, achieving our target to have 40 per cent women in senior leadership roles shortly after year end.

Our priorities for 2026:
* Strengthen understanding of our employee proposition, giving clarity on what sets SEGRO apart and what supports high performance.
* Review our reward structures to ensure optimal alignment with our strategy, performance goals and diverse roles.
* Further develop current and future leaders to ensure SEGRO benefits from strong, forward-looking leadership.

Our Values

Say it like it is
We always give honest feedback, keep our promises and keep messaging clear and simple.

Stand side by side
We work together and put the interests of our business ahead of our own. We go out of our way to support each other and share knowledge across the business.

If the door is closed…
If one route is closed to us, we always find another way. We challenge ourselves to think differently and search for new ways to succeed.Keep one eye on the horizon We constantly look ahead to ensure we are successful in the future. We do this in part by taking an active interest in our customers and their customers. Does it make the boat go faster? We keep things simple and continue to look for improvements to how we work.

UK Gender and Ethnicity Pay and Bonus Gap

SEGRO continues to report a gender pay gap above the national average, though the gap is steadily narrowing, supported by increased female representation in senior roles. While the mean gender bonus gap rose this year due to a small number of LTIP and share-related payments, the median bonus gap continued to decline. Our ethnicity data similarly reflects the profile of our workforce. The mean ethnicity pay gap has reduced to 24.1 per cent, alongside a corresponding reduction in the ethnicity bonus gap.

Metric	Year	2025	2024
Gender pay gap (mean) ¹		32%	79%
Gender bonus gap (mean)	2025	24%	58%
	2024	39%	68%
Ethnicity pay gap (mean) ²	2025	31%	63%
	2024
Ethnicity bonus gap (mean) ³	2025
	2024

¹ 2024: This is an adjusted figure that excludes a small number of one-off payments. Including these reduces the mean gender pay gap to 30.3 per cent.
² 2024: This is an adjusted figure that excludes a small number of one-off payments. Including these increases the mean ethnicity pay gap to 37.4 per cent.
³ 2025: This is an adjusted figure that excludes a small number of one-off LTIP/Share payments. Including these further reduces the mean ethnicity bonus gap to 19 per cent in favour of ethnic minorities.

25 | SEGRO plc Annual Report & Accounts 2025 Overview Strategic Report Governance Financial Statements Further Information Responsible SEGRO continued

Metric	Value	2024 Value	Target/Note
‘Your Say’ engagement scores	88%	86%	(Participation rate: 94%)
% of women in senior leadership roles	41%	36%	2025 target of 40% ¹
% of ethnic minorities in senior leadership roles	6%	6%	2027 target of 15% ²

¹ 2024: 36%
² 2024: 6%

Measuring success

We measure our success by tracking Key Performance Indicators (KPIs) that reflect our strategic, operational and financial progress and performance. They drive the internal management of the business, and some are used to determine how management and employees are remunerated.

Financial

These indicators reflect the metrics that we are most focused on when measuring our financial success and the economic value that we are creating. They help us to make informed decisions about our strategy and identify where we should prioritise our efforts.

Non-financial

These indicators link to our Responsible SEGRO priorities and help to measure the shared value our business creates to ensure that our business is positioned for long-term success. We intend for our non-financial KPIs to evolve as we progress towards our stated ambitions.

For a description of our financial KPIs use the QR code or visit our website at www.SEGRO.com/investors/investment-case/key-performance-indicators

KPI	2025	2024	2023	Links
Total shareholder return (TSR) %	7.4%	7.4%	(18.3)%	Yes
			20.3%

Our performance
Our TSR was 7.4 per cent, compared with 11.3 per cent for the FTSE 350 Real Estate index as markets favoured higher yielding portfolios and near-term income during 2025. TSR reflects a combination of the 29.9 pence dividend (20.2 pence 2024 final dividend and 9.7 pence 2025 interim dividend) paid during the year, and an increase in the share price from 701.2 pence at 31 December 2024 to 720.4 pence at 31 December 2025.

KPI	2025	2024	2023	Links
Total property return (TPR) %	5.7%	5.7%	5.2%	Yes
			(0.5)%

Our performance
The TPR of the Group’s standing assets held throughout 2025 was 5.7 per cent (2024: 5.2 per cent). The UK portfolio generated a TPR of 5.2 per cent, behind the benchmark calculated by MSCI Real Estate UK All Industrial Quarterly of 7.2 per cent. The TPR of our Continental Europe portfolio was 5.8 per cent. Benchmark data for Continental Europe will be received later in the year.

KPI	2025	2024	2023	Links
Total accounting return (TAR) %	5.3%	5.3%	3.1%	Yes
			(3.3)%

Our performance
Our TAR was 5.3 per cent (2024: 3.1 per cent). This performance reflects a combination of the 18 pence increase in Adjusted NAV from 907 pence at 31 December 2024 to 925 pence at 31 December 2025 and the 29.9 pence dividend (20.2 pence 2024 final dividend and 9.7 pence 2025 interim dividend) paid during the year.

KPI	2025	2024	2023	Links
Adjusted earnings per share (EPS) pence	36.6p	36.6	34.5	Yes
			32.7

Our performance
Adjusted EPS increased by 6.1 per cent to 36.6 pence during the year, reflecting higher rental income from our standing assets and new income from acquisitions and developments.

KPI	2025	2024	2023	Links
Rent roll growth £m	£71m	71	56	Yes
			65

Our performance
In total, we generated £71 million of net new annualised rent during the year (2024: £56 million). The increase was driven by a record level of rent signed at reviews and renewals and a higher number of pre-lets signed (£26 million versus £20 million in 2024) as occupier sentiment improved during the second half of the year.

KPI	2025	2024	2023	Links
Loan to value (LTV) %	31%	31%	28%	No
			34%

Our performance
Our LTV ratio increased to 31 per cent during 2025. With the value of our portfolio broadly unchanged during the period, this was mostly due to our investment activity, both development capex and asset acquisitions. This is within our leverage tolerance and gives us plenty of liquidity to fund both visible investment and potential opportunities that may arise.

26 | SEGRO plc Annual Report & Accounts 2025 Overview Strategic Report Governance Financial Statements Further Information Key performance indicators: financial

KPI	2025	2024	2023	Links
Corporate and customer emissions intensity kgCO 2 e/sq m	20.0	20.0	24.0	No
			22.5

Our performance
Our corporate and customer carbon intensity decreased by 17 per cent to 20 kgCO 2 e/sq m during 2025, versus 2024 (restated). We continue to work closely with our customers, including data centre operators, supporting their progress towards their own decarbonisation commitments.

KPI	2025	2024	2023	Links
Customer satisfaction %	91%	91%	86%	Yes
			86%

Our performance
Satisfaction as an occupier of our buildings was rated as ‘good’ or ‘excellent’ by 91 per cent of the 294 customers who participated in 2025 (2024: 86 per cent). The continued high satisfaction rate reflects our focus on communication, being responsive and understanding the needs of our customers and is particularly pleasing given the cost pressures that some of them are under (including rental increases).

KPI	2025	2024	2023	Links
Embodied carbon intensity kgCO 2 e/sq m	280	280	318	Yes
			331

Our performance
The average embodied carbon intensity in our development programme was 280 kgCO 2 e/sq m reflecting a 12 per cent improvement versus 2024. We continue to reduce this through use of low-carbon or recycled materials, including concrete, steel and timber, across multiple projects.

KPI	2025	2024	2023	Links
Employee engagement %	88%	88%	86%	Yes
			89%

Our performance
Our 2025 employee engagement score was 88 per cent. 94 per cent of our people responded and 88 per cent of employees said that they are proud to work at SEGRO. 88 per cent of employees believe that all people are valued at SEGRO, regardless of gender, ethnicity, disability, sexual orientation or background.

KPI	2025	2024	2023	Links
Visibility of customer energy use %	91%	91%	87%	Yes
			81%

Our performance
Under standard market lease terms we do not have automatic visibility of customer energy usage data. We recognise the importance of having good visibility of this data so we can accurately assess our Scope 3 emissions and help our customers to reduce their own carbon footprint as well as improving their energy efficiency. The visibility of our customers’ energy use improved to 91 per cent (2024: 87 per cent) of our total property footprint by area.

KPI	2025	2024	2023	Links
Volunteering days	1,227	1,227	973	Yes
			707

Our performance
In 2025, 442 employees (95 per cent of the workforce) worked alongside 354 customers, suppliers, public sector partners and financial stakeholders to deliver a total of 1,227 volunteering days. This represented a 26 per cent increase in volunteering days from 2024 to 2025. 2023 note: employees only; other volunteering not measured.

For a description of our non-financial KPIs use the QR code or visit out website at www.SEGRO.com/responsible-SEGRO/our-strategic-priorities

See more on our strategy on page 18

We recognise that the management of risk has a role to play in the achievement of our strategy and KPIs. Risks can hinder or help us meet our desired level of performance: Read more about our risk management on page 56

Where relevant we have linked our KPIs directly to SEGRO’s incentive schemes. Find out more in Remuneration on page 106

Find out more about Responsible SEGRO on page 20

Strategy key	Risk key
Responsible SEGRO	Macroeconomic impact on market cycle
Disciplined capital allocation	Portfolio strategy and execution
Operational excellence	Major event/business disruption
Efficient capital and corporate structure	Health and safety
	Environmental sustainability and climate change
	Development and construction execution
	Financing strategy
	Legal, political and regulatory
	People and talent
	Operational delivery

27 | SEGRO plc Annual Report & Accounts 2025 Overview Strategic Report Governance Financial Statements Further Information Key performance indicators: non-financial

Portfolio update

Our portfolio delivered growth in asset values, market rents and rent roll during 2025 as both occupier and investor sentiment improved.# Strategy key

Responsible	SEGRO
Disciplined capital allocation
Operational excellence
Efficient capital and corporate structure
SEGRO Centre Dagenham, UK
SEGRO Logistics Park Cerdanyola, Spain

2025 at a glance

Assets under management	£22.0bn
	2024: £20.3bn
2025 highlights
• Asset values increased in 2025, with the UK and Continental European portfolios both delivering a positive valuation performance for the first time since 2022, driven by stable yields and further ERV growth.
• However, ERV growth differed significantly between markets. It was strongest in parts of the portfolio where there was active letting activity, for example in West London and Germany.
• Rent roll growth was strong, driven by both the existing portfolio and development pipeline, and we had less takebacks than in recent years.	Link to our strategic pillars
Portfolio valuation	£19.0bn
	2024: £17.8bn
Portfolio valuation change 1	+1.0%
	2024: +1.1%
ERV growth	+2.3%
	2024: +3.2%
Rent contracted	£99m
	2024: £91m
Pre-lets signed	£26m
	2024: £20m

Portfolio value increased to £19.0 billion, further market rental growth

Warehouse property values were stable during 2025 in an uncertain environment, with investor sentiment impacted by concerns about the trajectory of GDP growth and interest rates. Transaction volumes were muted, and although the fundamentals of industrial and logistics assets continued to appeal to investors, most activity was focused on smaller lot sizes and higher-yielding (lower-quality) assets or those with near-term reversionary opportunity. The prime assets that traded, supported current yields and in more active markets (for example Spain) there was a small amount of yield compression. Given the relatively small amount of absolute portfolio value growth, some of our country-level changes were driven by specific events or circumstances (for example acquisition costs on a transaction in our Czech portfolio and yield adjustments on a group of assets nearing lease expiry in Poland).

Estimated market rental values (ERVs) have increased across the portfolio, albeit at a lower level than recent years, with the UK outperforming Continental Europe. Rental growth has varied significantly between sub-markets, with those experiencing more leasing activity, whether rent reviews, renewals or new lettings returning the strongest performance (for example West London) whereas markets with more supply and slower take-up have returned the weakest performance (for example East London and some of our development-led big box markets such as Poland).

$^1$ Percentage valuation movement during the period based on the difference between opening and closing valuations for all properties including buildings under construction and land, adjusting for capital expenditure, acquisitions and disposals. The valuation movement cannot be directly derived from the Financial Statements and is calculated to be comparable with published MSCI Real Estate indices against which SEGRO is measured. Table 3 on page 182 provides a reconciliation to the Financial Statements.

28 | SEGRO plc Annual Report & Accounts 2025 Overview Strategic Report Governance Financial Statements Further Information

Performance review

Portfolio value increased to £19.0 billion, further market rental growth continued

The Group’s property portfolio was valued at £19.0 billion at 31 December 2025 (£22.0 billion of assets under management). This equates to a 1.0 per cent increase in the value of the portfolio (after adjusting for capital expenditure and asset recycling) with both the UK and Continental Europe portfolios showing value growth; this compares to 1.1 per cent growth in 2024. The net true equivalent yield on our portfolio at 31 December 2025 was 5.5 per cent (31 December 2024: 5.4 per cent). Assets held throughout the period increased by 1.3 per cent (2024: 0.9 per cent), supported by stable yields, 2.3 per cent growth in ERVs (2024: 3.2 per cent increase) and the benefit of our asset management initiatives.

• Assets held throughout the period in the UK increased in value by 1.6 per cent (2024: 1.8 per cent increase). The lower initial yield of our prime portfolio and larger land bank have led to underperformance versus the MSCI Real Estate All Industrial Quarterly Index (which has a higher income yield) which increased by 2.6 per cent over the same period. The net true equivalent yield applied to our UK portfolio was 5.4 per cent (31 December 2024: 5.3 per cent). Rental values improved by 3.1 per cent (2024: 3.7 per cent) driven by 4.7 per cent growth in our Heathrow and Park Royal portfolios.
• Assets held throughout the year in Continental Europe increased in value by 1.0 per cent (2024: 0.8 per cent decrease) on a constant currency basis, driven by stable yields (unchanged at 5.6 per cent) and rental value growth of 1.0 per cent (2024: 2.3 per cent).

Unrealised gains and losses on whole portfolio as at 31 December 2025 (£m)
£93m	£0m	£66m	(£9m)	£18m	£22m	£8m	(£2m)	£196m
UK	France	Germany	Poland	Italy	Spain	Netherlands	Czech Republic	Total

Annualised rent potential as at 31 December 2025 (£m)
£755m	£220m	£62m	£493m	£1,530m
Passing rent at 31 December 2025	Rent in rent free, vacancy and reversions	Current and near- term development pipeline	Future development pipeline and options	Total potential

£99 million of new headline rent signed in 2025

At 31 December 2025 our portfolio generated passing rent of £755 million, rising to £823 million once rent-free periods expire (headline rent). We signed £99 million of new headline rent commitments during the period. This equates to £71 million of rent roll growth (2024: £56 million) net of space taken back at lease expiry, including £41 million net new headline rent from existing space (see ‘Asset Management and Investment Update’ on page 30) and £30 million related to development (including pre-lets signed) (see ‘Development Update’ on page 33).

What to expect in 2026

Property yields are driven by a multitude of market, economic and financial factors, including interest rates, most of which are outside our direct control, as well as market expectations of rental growth. The fundamentals for our sector remain strong, with occupier demand supported by structural trends and limited supply, which leaves us optimistic about the prospects for further rental value growth. We continue to expect ERV growth of 3 to 6 per cent for urban and 2 to 4 per cent for big box logistics over the medium- term, although there may be times it temporarily falls below this, like we experienced in certain parts of the business in 2025. We expect rent roll to increase further through leasing vacant or recently developed space, the capture of reversion within the existing portfolio and by signing further pre-lets in response to occupier demand. We have the potential to add almost £800 million of new rent over the coming years through our active asset management of the existing portfolio and the build out of our high-quality land bank (including land options).

29 | SEGRO plc Annual Report & Accounts 2025 Overview Strategic Report Governance Financial Statements Further Information

Performance review continued

Asset management and investment update

2025 at a glance

New rent from existing portfolio	£66m
	2024: £70m
2025 highlights
• The existing portfolio was once again a large contributor to rent roll growth in 2025.
• We continue to make great progress capturing reversion and have also increased occupancy.
• We had our new SBTi targets approved and made great progress in reducing our carbon emissions.
• Our investment activity has been more muted but we added some excellent assets to the portfolio that we expect to deliver strong risk-adjusted returns.	Link to our strategic pillars
Uplift on rent reviews and renewals	36%
	2024: 34%
Customer satisfaction	91%
	2024: 86%
Corporate and customer emissions intensity	20.0kgCO$_2$e/sq m
	2024: 24.0 kgCO$_2$e/sq m
Asset acquisitions	£232m
	2024: £431m
Asset and land disposals	£57m
	2024: £896m
$^1$ Restated, see page 22.

Driving growth in the existing portfolio through active asset management

Our focus on Operational excellence is key to delivering growth through the existing portfolio, whether that means providing the best customer experience throughout the customer’s ‘journey’ with SEGRO, optimising rental income and lease terms, ensuring consistency of operating standards, or driving efficiency through continuous improvement and the digitalisation of processes. Our market-leading operating platform, with its local footprint, experienced teams and mostly internalised asset and property management structure, helps us to build strong and meaningful relationships with our customers and other business partners. These interactions, along with the data-driven insights provided by our digital platform, help us to anticipate changing requirements and manage our assets to generate long-term outperformance. As a result, our existing portfolio continues to contribute a significant amount to the growth of our rent roll as we manage our assets to capture reversion, drive rents and create additional value through refurbishment and redevelopment.

During 2025 the existing portfolio delivered £66 million of new headline rent (2024: £70 million). This comprised £29 million on new lettings (2024: £32 million) and £37 million from the capture of reversion (the difference between in-place and market rents) on rent reviews and renewals, and from inflation-related uplifts in index-linked leases (2024: £38 million). This was offset by rent lost from space taken back of £25 million (2024: £32 million).

Strong and diversified customer base

Understanding our customers and their evolving needs is crucial to the success of our business. The insights that we gain from these partnerships help us to shape our portfolio and ensure that our buildings are fit for the future and suitable for occupiers’ evolving needs.Our customer base remains well diversified, reflecting the flexibility of warehouse space and that two-thirds of our portfolio is in urban locations. Our top 20 customers account for 33 per cent of total headline rent. Amazon remains our largest customer at five per cent of our total rent roll. Customers from the retail sector were the largest takers of our space during 2025, as they returned to growth mode, closely followed by the transport and logistics sector as they take on new consumer and retail related contracts and focus on prioritising efficiency, resilience and sustainability across their operations. Our urban spaces continue to appeal to a diverse range of businesses who provide value-added goods and services to nearby growing populations. The health of our customer base remains strong: rent lost due to insolvency was £4 million (2024: £9 million), approximately 0.5 per cent of our headline rent. Our income at risk ‘watchlist’ remains small and rent collection is tracking at normal levels. 30 | SEGRO plc Annual Report & Accounts 2025 Overview Strategic Report Governance Financial Statements Further Information Performance review continued 98% of our customers would recommend SEGRO to others, which we attribute to the quality of our spaces and the service offered by our market-leading operating platform.”

Focused on delivering excellent customer service
While the quality and location of our portfolio are of primary importance to our customers, building outstanding customer relationships through consistently excellent customer service is also critical. This supports our high customer retention rates, underpins rental growth and helps create new business opportunities. We often work with our larger customers in more than one location and regularly across geographies: 26 per cent of our headline rent comes from customers with whom we have leases in more than one country. Our cross- border customer account teams help to ensure that we offer a streamlined and informed approach to these businesses. To maintain a clear understanding of our customers’ needs, we carry out a rolling survey throughout the year to identify and rectify issues promptly. In 2025, we spoke to 294 customers, and 98 per cent said that they would recommend SEGRO to others (2024: 97 per cent) while 91 per cent said they rated their experience with SEGRO as ‘Excellent’ or ‘Good’ (2024: 86 per cent). In 2025 we furthered our customer insight programme, expanding our use of senior stakeholder interviews and advancing our ‘Growth-Generation’ project to identify new opportunities to work with existing customers. We continued to bring customers together through our Futures Forums, using these engagements to explore emerging trends, share perspectives and identify opportunities for mutual growth. This insight-led approach is helping us deepen relationships and shape new propositions in both established and high-growth sectors.

Active asset management to capture reversion, drive rents and create value
The active asset management of our portfolio reflects our goal of generating outperformance through the cycle. We create plans for every single asset as part of our annual asset review process, aiming to strike a balance between maintaining current high occupancy and creating opportunities to drive future rents and create value through refurbishment, redevelopment or conversion to alternative, higher-value uses, such as data centres. We monitor a number of metrics that help us assess the performance of our existing portfolio:

• Excellent progress in capturing the embedded reversion within our portfolio. Lease reviews, renewals and regears during the period generated a record uplift of 36 per cent (2024: 34 per cent), adding £31 million of new headline rent. New rents agreed were 46 per cent higher in the UK (2024: 43 per cent) as reversion accumulated over the past five years was reflected in new rents agreed. Annual indexation uplifts in Continental Europe help us to capture reversion each year, resulting in lower uplifts at lease events of 6 per cent (2024: 7 per cent), albeit still reflecting rental growth in excess of inflation due to active asset management by our teams. As at 31 December 2025, our portfolio is 12 per cent reversionary, providing us with the opportunity to capture a further £99 million of headline rent, £33 million of which is up for rent review or renewal in 2026.
• Customer retention rate remained high at 82 per cent. Approximately £100 million of headline rent was at risk from a break or lease expiry during the period, of which we have retained 81 per cent in existing space (2024: 78 per cent), and a further 1 per cent in new premises (2024: 2 per cent).
• Occupancy has improved significantly to 94.9 per cent (2024: 94.0 per cent), reflecting positive net absorption on our existing space and a strong letting performance in our recently completed speculative projects. The occupancy rate excluding recently completed speculative developments was 95.4 per cent (2024: 95.4 per cent) and the average occupancy rate during the period was 94.1 per cent (2024: 95.7 per cent).
• Lease terms continue to offer attractive income security. The level of incentives agreed for new leases decreased to 8.0 per cent of headline rent (2024: 8.1 per cent). Incentives decreased on both the standing portfolio to 6.6 per cent (2024: 6.8 per cent) and new developments (9.9 per cent versus 10.4 per cent in 2024). We maintained the portfolio’s weighted average lease length, with 7.1 years to first break and 8.2 years to expiry (2024: 7.2 years to first break, 8.4 years to expiry). Lease terms are longer in the UK (8.7 years to break) than in Continental Europe (4.9 years to break), reflecting the market convention of shorter leases in countries such as France and Poland.

31 | SEGRO plc Annual Report & Accounts 2025 Overview Strategic Report Governance Financial Statements Further Information Performance review continued

MPM Flooring, Slough Trading Estate, UK

Championing low-carbon and supporting our customers with their own ambitions
Ensuring that our portfolio meets the highest sustainability standards is key to us achieving our Championing low-carbon growth targets, and also helps us to attract and retain customers. Many businesses now have their own carbon reduction targets and the most sophisticated occupiers want to locate their operations in modern, energy-efficient spaces that offer wellbeing features and provide a healthy, safe and pleasant working environment for their employees. To reduce carbon emissions from our existing portfolio we focus on two operational carbon reduction targets: a near-term target to reduce the intensity of our corporate and customer emissions by 80 per cent by 2034, and a net-zero target by 2050. These targets have a baseline of 2023 and are regularly reviewed to ensure alignment with best practice methodologies and update estimations. During 2025 these targets were approved by the Science Based Target initiative (SBTi). During 2025, we achieved a 17 per cent reduction in our corporate customer emission intensity largely due to increasing the use of renewable and low-carbon energy across our portfolio, supported by our continuing installation of rooftop solar panels. We continue to work closely with our customers who are on their own net-zero journeys, for example our data centre customers who have made commitments to use only renewable energy by 2030, to help them achieve their goals. Our green leases improve visibility of our customers’ carbon emissions. They allow us to report more accurate data and to identify opportunities to help them operate their buildings more efficiently, reducing their carbon footprint and operating costs. These clauses, alongside an increase in the number of automatic meter feeds that we receive, have helped increase the visibility of our portfolio energy use to 91 per cent (2024: 87 per cent). At the end of 2025, 81 per cent of the portfolio had an EPC rating of B or better (2024: 76 per cent). Whilst the majority of our portfolio is modern and already meets the highest sustainability standards, we do have some older assets in London, which we are holding pending refurbishment or redevelopment. These assets are mostly in prime, West London locations where land and buildings are in short supply and rents continue to grow. This provides us with the opportunity to add significant value, whilst also improving their environmental performance over time. A key part of our asset planning process is therefore determining the phasing of these projects and managing the space to ensure we have vacant possession to suit our future plans. This can lead to periods where the headline vacancy in these sub-markets is elevated, as has been the case in our London portfolio over the last three years. Our asset management teams are also working hard to expand the solar capacity of our portfolio through retrofitting onto existing assets (we install photovoltaic arrays on almost all new developments) where feasible. During 2025 we added 22MW to our installed solar capacity, taking the total to 145MW, 18MW of which was through retrofits onto existing buildings. We closely monitor the returns of our sustainability investments to ensure that they support the longer-term financial performance of our portfolio. Although it is still hard to prove sustainability investments enhance returns, we have found our most modern space attracts higher-quality customers, leases faster and helps us set new rental levels on our estates.

Disciplined approach to capital allocation focused on driving portfolio performance
As well as supporting our asset managers in driving performance and rental growth, our annual asset review process helps to ensure that our capital is invested in the opportunities that offer the most attractive risk-adjusted returns.This is fundamental to our Disciplined approach to capital allocation aimed at generating long-term outperformance from our portfolio. Our asset plans (including an analysis of future rental growth and development capex expenditure requirements) allow us to identify those assets where we have benefited from the majority of the expected outperformance or where the risk profile may have changed. This analysis, alongside our in-depth knowledge of our markets and our customer base, shapes our future disposal list. We typically aim to dispose of 1-2 per cent of the portfolio per annum but we vary this according to the market backdrop, always seeking to match our planned disposals with motivated or special purchasers. After a very active 2024 in terms of disposals (£896 million of assets and land), we had a lower level of disposals in 2025. During the year we disposed of £31 million of built assets, representing £1 million of annualised rental income, for prices above book value. These disposals included an older estate in North London and a standalone asset in Germany, as well as a hotel developed as part of the East Plus portfolio in London. We also disposed of £26 million of land, mostly smaller residual plots, where we felt the development ‘journey’ was not justified by likely future returns. During 2025 we acquired £232 million of assets (at share), all within our SELP joint venture. The first was an excellent portfolio of six assets in Germany and the Netherlands (formerly owned by Tritax EuroBox plc) and the second was a logistics park in Prague. The annualised rental income of these assets is £11 million. These assets offered portfolio benefits, providing additional scale in markets over which we have strong conviction, and which offer attractive future returns.

What to expect in 2026

We have a unique portfolio, focused on Europe’s strongest industrial and logistics markets. We will continue to actively manage our assets to capture reversion, reduce vacancy (particularly in our London portfolio) and, when the returns make sense, improve the sustainability credentials of older assets. This activity, together with our focus on providing excellent customer service, will help us to retain customers and drive further rental growth. We will continue to be very selective when it comes to asset acquisitions, only considering opportunities in core markets that exceed our cost of capital and bring wider portfolio benefits. A higher interest rate environment naturally means that we have raised the bar not only for new investment, but also for what we retain. We therefore plan for 2026 disposals to be at or above the upper end of our medium to long- term run rate of 1 to 2 per cent of the portfolio.

32 | SEGRO plc Annual Report & Accounts 2025
Overview
Strategic Report
Governance
Financial Statements
Further Information

Performance review continued
Development update

2025 at a glance

Metric	Value	2024 Value
Potential rent from development completions	£29m	£37m
Development yield (completions)	8.2%	6.9%
Development capital expenditure	£387m
Potential rent from current pipeline	£53m	£46m
Potential rent from future pipeline	£355m	£376m
Embodied carbon intensity	280kgCO2e/sq m	318kgCO2e/sq m

2025 highlights
* Completed our first warehouse at SEGRO Logistics Park Northampton, a 100,000 sq m warehouse for Yusen Logistics and a further data centre on the Slough Trading Estate.
* 12 per cent reduction in the embodied carbon intensity of our development pipeline.
* £26 million of new pre-lets signed, our strongest year since 2022.
* Good progress letting our speculatively developed urban warehouse schemes for example in Germany, Spain and Poland.

Link to our strategic pillars

Health and safety is central to all of our business activities and particularly important in our development activity. For more information on our approach see page 62

Our development pipeline grew during 2025, following a strong H2 of pre-let signings.”

Development pipeline delivering new space in markets with strong returns

Our Disciplined approach to capital allocation means that development continues to be the focus of our capital deployment as we look to turn land held on our balance sheet into income-producing assets which offer strong future returns. Our focus on Operational excellence ensures that we execute on our pipeline efficiently and safely and build to the highest construction and sustainability standards. During 2025 we invested £413 million into our development pipeline (2024: £494 million) through £387 million of development capital expenditure (including £149 million on infrastructure to facilitate future UK big box logistics parks and power upgrades in Slough) and £26 million of land acquisitions. Development capital expenditure was lower than the c.£500 million expected at the start of the year, due to slower occupier decision making which resulted in us pushing back the start date of some anticipated projects. However, the strong level of pre-let signings in the second half of 2025 will support higher levels of investment into development in 2026.

Development completions delivered £29 million of potential headline rent

Development completions during 2025 added 249,200 sq m of new space to the portfolio, generating £27 million of headline rent, with a further £2 million to come when the remainder of the space is let. The development yield (including land, construction and finance costs) is expected to be 8.2 per cent when fully occupied, above our normal 7 to 8 per cent range as it included a data centre which tend to deliver higher development yields. We completed 178,900 sq m of big box warehouses during the period, including our first pre-let at SEGRO Park Northampton and warehouses for a third-party logistics operator in Madrid, a post and parcel company in Italy and a freight-forwarder in Hamburg. We delivered 53,100 sq m of urban warehouses, including a speculatively built scheme on the Slough Trading Estate, which is generating strong interest from occupiers, pre-lets in Düsseldorf and Marseille and a further phase of our successful scheme in Cologne. Finally, we developed a further multi-storey data centre in Slough equivalent to 17,200 sq m of floor space.

Reducing embodied carbon in our development programme is critical to helping us improve our carbon footprint. During 2025, the SBTi approved our updated targets, aligned with their new ‘Buildings Framework’. Our embodied carbon pathway has both a near-term target to reduce embodied carbon by 58 per cent by 2034 versus the 2023 baseline, and a target to be net-zero by 2050. We reduced the embodied carbon intensity of our developments by 12 per cent to 280 kgCO2e/sq m during the year (2024: 318 kgCO2e/sq m). All of our eligible development completions during 2025 have been, or are expected to be, accredited BREEAM ‘Excellent’ or ‘Outstanding’ (or local equivalent).

33 | SEGRO plc Annual Report & Accounts 2025
Overview
Strategic Report
Governance
Financial Statements
Further Information

Performance review continued

£62 million of potential headline rent currently under development or in advanced negotiations

At 31 December 2025, we had development projects approved, contracted or under construction totalling 649,200 sq m, representing £279 million of future capital expenditure to complete and £53 million of annualised gross rental income when fully let. The development yield on these projects, when fully occupied, is anticipated to be 7.0 per cent. 47 per cent of this rent has already been secured, lower than our normal 60 to 70 per cent run rate. This is due to a reduced number of pre-lets in the development pipeline, rather than an increase in speculative development volumes which are running at normal levels on an absolute basis. We continue to focus our speculative projects on markets where supply-demand dynamics are tightest, and mostly on urban warehouse schemes which we derisk through phased development. We signed £26 million of headline rent from pre-let agreements and lettings of speculative developments prior to completion (2024: £20 million). The largest was to a global online retailer in Germany and we also signed pre-lets for other big box warehouses in Italy and France, as well as a new unit on our food campus, SmartParc SEGRO Derby. In the UK, we have 20,600 sq m of space approved or under construction, which includes the above mentioned big box scheme and two small speculative developments in West London. In Continental Europe, we have 628,600 sq m of space approved or under construction. This includes the above pre-let schemes for retailers and third-party transport and logistics operators as well as phases of our successful urban warehouse parks in Germany, including in Berlin, Cologne and Düsseldorf, as well as in Madrid and Paris. We have factored construction and financing costs at current rates into the development returns for our future development projects. Build costs are currently stable across our markets. Our development yields are typically 150 to 200 basis points higher than yields on equivalent income-producing assets, meaning that there is a sizeable valuation uplift when projects complete and are fully-let. Development therefore remains a profitable way of deploying capital. Within the future development pipeline we often have a small number of pre-let projects close to being approved, awaiting either final conditions to be met or planning approval to be granted before commencing construction, typically within the next 6 to 12 months. As at 31 December 2025, our near-term pipeline totals 67,900 sq m of space, equating to approximately £66 million of future capital expenditure and £9 million of potential annual rent.# £502 million of future potential rent from land bank and options

Our land bank identified for future development (including the near-term projects detailed above) totalled 577 hectares as at 31 December 2025, valued at £1.6 billion, roughly 8 per cent of our total portfolio value. We estimate this land bank can support 2.6 million sq m of development over the next five to seven years. The estimated capital expenditure associated with the future pipeline is approximately £2.9 billion. It could generate £355 million of gross rental income, representing a development yield (including land and notional finance costs) of between 7 and 8 per cent and a yield on new capital invested of over 10 per cent. This estimate includes a number of the powered shell data centre opportunities within our pipeline but does not yet include any additional potential rental income or capital expenditure associated with developing fully fitted data centres, which is likely to be the case for selective sites. The development programme only includes sites currently held as land; there is further opportunity from the redevelopment of existing assets which are not included in these development pipeline numbers. Land acquisitions that are contracted (but subject to further conditions) and land held under option agreements are also not included in the figures above but represent significant further development opportunities. These include sites for big box warehouses in the UK Midlands as well as in Italy and Poland. They also include urban warehouse sites in London’s prime Western and Eastern corridors. Those options we expect to exercise over the next two to three years are for land capable of supporting over 1.3 million sq m of space and generating approximately £147 million of headline rent, for a blended development yield of between 7 and 8 per cent. The options are held on the balance sheet at a value of £22 million (including joint ventures at share). All of the figures relating to our land bank and options, other than the current value, are indicative, based on our current expectations, and are dependent on our ability to secure lease or pre-let agreements, planning permissions, construction contracts and on our outlook for occupier conditions in local markets. Further details of our completed projects and development pipeline are available in the FY 2025 Property Analysis Report, at www.SEGRO.com/investors.

What to expect in 2026

Development capital expenditure in 2026 is expected to be £450 to £550 million, depending on the level of new projects started in the coming months. Within this is c.£150 million of infrastructure investment related to our big box logistics parks and power upgrades on the Slough Trading Estate. We expect the development yield to remain at 7 to 8 per cent.

34 | SEGRO plc Annual Report & Accounts 2025 Overview Strategic Report Governance Financial Statements Further Information Performance review continued

SEGRO Logistics Park Northampton, UK

Data centre update 2025 at a glance

	2025	2024
Data centres headline rent	£58m	£55m

2025 highlights

• Completed a data centre for Iron Mountain on the Slough Trading Estate.
• Secured additional 0.2GW of power for our data centre pipeline and progressed further applications.
• Formed a joint venture to develop our first fully fitted data centre in Park Royal West London.
• Added to our data centre capabilities with senior experienced hires.

Link to our strategic pillars

Data centres as % of portfolio, by value	8%	2024: 8%
Current capacity	0.5GW	2024: 0.5GW
Total power bank	2.5GW+	2024: 2.3GW

Growing the data centre opportunity in our portfolio and developing our platform

We have been active in the data centre market for over 20 years, and our existing data centre portfolio currently delivers 0.5GW of operational capacity, representing approximately £58 million of headline rent at 31 December 2025 (7 per cent of our rent roll). The vast majority of this installed capacity is on SEGRO’s Slough Trading Estate which is the largest hub of data centres in Europe. Our existing data centres have been built as powered shells, where we provide the real estate and a power capacity allocation (as agreed with our energy partners) and our customers fit out and operate or sub-lease the space themselves. Our track record and capabilities in this space, including sector knowledge, technical expertise and customer relationships, have enabled us to identify similar opportunities across our portfolio where we have secured, or believe we can secure, planning and power to create considerable further data centre capacity. As a result we have created a data centre pipeline that provides a significant income and value creation opportunity in this fast-growing sector. We have a total opportunity set on sites we own where we have, or we believe we can secure power equating to over 2.5GW+ of potential capacity, including the 0.5GW of operational capacity mentioned above. We have progressed further opportunities during 2025 and expect to add to this as our teams work hard to secure the necessary grid connections and investigate innovative ways to bring forward additional power. Our data centre development sites are close to major European cities and aligned with our existing urban footprint. This means we are well positioned to benefit from Cloud-driven demand, the primary driver of data centre growth in Europe today, as the digitalisation of our economies and day-to-day lives require increasingly vast amounts of data. Cloud facilities need close proximity to end users to provide ‘latency’ (speed of data transfer), which means they locate themselves in and around major cities and tend to create clusters known as ‘Availability Zones’, with the largest European ones located in the prime ‘FLAP-D’ markets. All of our future capacity is in, or close to, established (FLAP-D markets) or emerging Availability Zones such as Marseille and Warsaw. These same locations will also benefit from ‘inference’ related Artificial Intelligence (AI) demand, i.e. the user interface, as much of that also needs to be close to end users and prioritises resilience for business workloads, just like Cloud users.

35 | SEGRO plc Annual Report & Accounts 2025 Overview Strategic Report Governance Financial Statements Further Information Performance review continued

SEGRO’s 2.5GW+ powered land bank in key European Availability Zones
1.1GW available to pre-let by end of 2028.
2.5GW of power capacity = 2,500k MVA.

For more information on the data centre market opportunity see our CEO statement on page 12

Andrew Pilsworth, Managing Director, Data Centres and Strategic Partnerships

Recent data centre development on Slough Trading Estate, UK

Growing the data centre opportunity in our portfolio and developing our platform continued

The European data centre market is expected to grow significantly across both established and emerging Availability Zones over the coming years but supply is constrained by long (three to five year) lead times on grid connections, limited land availability and restrictive planning/ permitting regimes. We believe we have one of the largest permitted land and power positions in key Availability Zones across Europe, with most of our land already zoned for industrial and data centre use. We are therefore extremely well positioned to take advantage of the growth opportunity that the data centre market offers. A large number of our UK sites are in Slough, where the Simplified Planning Zone status provides a significant competitive advantage as planning is pre- approved for both industrial and data centre development for the next nine years. To help us maximise and capitalise on this opportunity we strengthened our data centre platform with key senior hires during 2025, including the addition of data centre development and leasing expertise, as well as dedicated energy expertise to help us expand our power bank and accelerate grid connections.

SEGRO Premier Park DC JV at a glance

56MW IT load fully fitted data centre
c.£1bn potential total JV investment
c.9% yield on cost
c.£150m SEGRO’s expected cash equity contribution

A significant income and value generation opportunity from fully fitted data centres

We have been carefully considering the best strategy for executing on the exceptional land and power positions that we control, one that will allow us to maximise the income and value creation opportunity. Whilst powered shells continue to offer strong returns, and remain an attractive execution option, we believe that developing fully fitted data centres on the most scarce and sought- after sites will significantly enhance the income and value that we can generate from our powered land bank. Developing a fully fitted data centre increases the scope to include the mechanical and engineering (M&E) fit out such as backup generators and cooling systems. This equipment has a long lifespan and less risk of obsolescence than the IT infrastructure (for example processors or ‘chips’, racking and servers), which the end customer provides. It is still more technically complex than delivering a powered shell, and requires more capital investment, but that means it also significantly increases the returns potential from a single site. To help manage the higher complexity and increased personnel requirements of developing fully fitted data centres, we will only build them in joint venture structures with experienced partners, allowing us to leverage their established development platforms. Our focus is on providing the real estate solutions for data centres. We intend to protect SEGRO from any operational risk by either securing a net lease, which means that the customer will operate and maintain the facility themselves, or the services would be contracted to a third party.We announced the first of these in March, a 50:50 joint venture with Pure Data Centres Group (Pure DC), who has over a decade of experience in the design, build and operation of world-class data centres for the most sophisticated hyperscale users. This joint venture has been established to develop and deliver a 56MW IT load fully fitted data centre in Park Royal, West London, a key London Availability Zone. The gross investment for this project is anticipated to be approximately £1 billion (including the land and power), of which SEGRO’s future cash equity contribution is expected to be less than £150 million. It is projected to deliver a net yield on cost (based on future rents and costs) of c.9 per cent. We expect the project to generate very attractive returns on our capital invested and deliver a significant amount of value over the development time horizon. A planning application for the scheme was submitted in late 2025 and once secured we will be actively marketing the pre-let with hyperscalers and expect strong demand given the severe land and power constraints in the West London data centre market. By developing fully fitted data centres in joint ventures and sharing the capital commitment, we are also financially derisking the development of these capital intensive assets. The use of project finance within each joint venture means SEGRO’s cash equity commitment will be modest. We intend to carefully sequence the execution of our data centre pipeline, recycling capital from stabilised operational assets through refinancing of project debt and exploring multiple exit strategies to release funds for future opportunities. We believe the evolution of our strategy to include fully fitted data centres significantly increases the potential income and value creation opportunity within our 2.5GW+ data centre pipeline. For each site, we will pursue the model which offers the most attractive risk-adjusted returns, having regard to factors such as the site characteristics, specific market supply-demand dynamics, risk and return expectations and the balance of our total pipeline and funding requirements.

What to expect in 2026

We will continue to progress our data centre pipeline during 2026 – preparing sites for development and adding to it through securing additional power capacity. We will be actively marketing the pre-let opportunities in the 1.1GW of power that we have available to lease by the end of 2028 and aim to sign 1 to 2 new data centre leases per year going forwards.

“SEGRO Premier Park, Park Royal is one of London’s most sought-after data centre locations and will help support the UK’s ambitions for digitalisation.” Dame Dawn Childs, CEO of Pure DC

36 | SEGRO plc Annual Report & Accounts 2025 Overview Strategic Report Governance Financial Statements Further Information

Performance review continued

Active asset management delivering growth

UK

“Our asset management teams delivered an exceptional performance from our existing portfolio in 2025.” James Craddock, Managing Director, UK

Well-located and specified space continued to attract demand and set new rental levels, despite there being less expansionary activity as a result of budget and economic uncertainty. According to data by Savills, net absorption turned positive for the first time in a few years, as take-up was driven by leasing of existing and speculatively developed space. This, combined with low levels of space currently under construction, should see market vacancy rates improving over the coming 12 to 24 months. We saw a pick up in enquiry levels and viewings into the final months of the year. Rental growth continued, albeit was market specific, with West London showing real strength and resilience driven by the diverse pool of customer demand. We continued to see exceptional success from our teams in capturing large reversionary uplifts through rent reviews and renewals.

2025 key highlights

• Strength of the Park Royal and Heathrow market, which represents 40 per cent of our UK portfolio and delivered 4.7 per cent ERV growth.
• Significant progress capturing reversion, delivering a record 46 per cent uplift on rent reviews and renewals.
• Great headway in making our market-leading big box logistics sites ‘construction-ready’.
• Enhanced our capabilities with the creation of a new energy team, and added 190MVA to our UK data centre pipeline.

e SEGRO Park Greenford

Risks and opportunities

• Strong pick up in enquiry levels for both existing space and pre-lets in the final months of 2025 and momentum has continued into this year.
• Confidence in our ability to increase our urban occupancy levels given these active conversations and some early lettings in 2026.
• Significant pre-let opportunity as occupier markets become more active with three prime big box schemes ready to go.
• Expect to be able to add SEGRO Park Radlett to this offering by the end of 2026 which is a unique proposition offering large-scale logistics just outside the M25.

SEGRO Logistics Park Radlett (CGI)

Portfolio value	£11.8bn	ERV Growth	+3.1%
Headline rent (at share)	£476m	Occupancy	93%
	+0.8%

37 | SEGRO plc Annual Report & Accounts 2025 Overview Strategic Report Governance Financial Statements Further Information

Regional updates

Development-led growth driven by structural trends

Continental Europe

“We had our strongest six months on record for pre-lets in H2 as e-commerce and retailers returned to expansion mode.” Marco Simonetti Managing Director, Continental Europe

Pre-let markets made a remarkable recovery after an uncertain start to the year, with demand driven by supply chain reorganisation and some expansionary activity. Our best performing markets during 2025 were Germany and Italy, where we saw strong demand for both pre-let and speculatively developed space. There was also a lot of activity in Poland and Spain. The political situation in France led to slightly lower take-up in our urban markets. Rental growth was more subdued but vacancy rates appear to have peaked which should support stronger growth in the future as more broad-based demand returns.

2025 key highlights

• Significant pick up in pre-let activity leading to £24 million of pre-lets signed in the second half of 2025 alone.
• Strong lettings performance on our speculative development programme, particularly in Germany, Spain and Poland.
• Finished the year with very strong, 98 per cent, occupancy (including some markets at 100 per cent).
• Secured the building permit for our first data centre in Continental Europe.

Risks and opportunities

• Completion of further phases of our speculative programme in major European cities, including SEGRO Park Les Gobelins which is a unique scheme in an exceptional central-Paris location.
• Progressing our data centre pipeline in Continental Europe and looking to sign our first pre-let.
• Index-linked uplifts in 2026 are likely to be lower due to falling inflation, particularly in France.

DPD, SEGRO Logistics Park Stryków, Poland

Portfolio value	£7.2bn	ERV growth	+1.0%
Headline rent (at share)	£347m	Occupancy	98%
	+1.5%

SEGRO European Logistics Partnership (SELP)

SEGRO European Logistics Partnership (SELP) is our Continental European big box joint venture with PSP Investments. SELP’s assets are managed by SEGRO alongside its own portfolio and in return SELP pays SEGRO annual fees for asset management, development, advisory and administrative services. At 31 December 2025 SELP’s AUM was €7 billion. For more information on the joint venture please visit: www.selp.lu

38 | SEGRO plc Annual Report & Accounts 2025 Overview Strategic Report Governance Financial Statements Further Information

Regional updates continued

Delivering financial strength

“During 2025 we delivered growth in earnings, dividends and asset values and the balance sheet is strong going into 2026.” Susanne Schroeter, Chief Financial Officer

Financial position and funding

Metric	31 December 2025	31 December 2024	31 December 2025	31 December 2024
Net borrowings (£m)	4,840	5,919	4,244	5,000
Available cash and undrawn committed facilities (£m)	1,647	1,894	1,705	2,125
Gearing (%)	39	N/A	35	N/A
Loan to value ratio (%)	31	31	28	28
Net debt : EBITDA ratio (times) 2	8.4	N/A	8.6	N/A
Weighted average cost of debt (%) 3	2.5	2.6	2.5	2.5
Interest cover (times) 4	4.2	4.2	3.7	3.9
Average duration of debt (years)	6.7	6.0	7.8	6.9

Notes:
1 Excludes tenant deposits held within cash and cash equivalents.
2 Calculation detailed in Table 2 in the Supplementary Notes.
3 Based on gross debt, excluding commitment fees and non-cash interest.
4 Net rental income/Adjusted net finance costs (before capitalisation).

Financial highlights
Adjusted profit before tax	£509m	2024: £470m
IFRS profit before tax	£560m	2024: £636m
Available cash and undrawn committed facilities	£1.9bn	2024: £2.1bn
Loan to value ratio	31%	2024: 28%

39 | SEGRO plc Annual Report & Accounts 2025 Overview Strategic Report Governance Financial Statements Further Information

Financial review

Progress against our strategy

What we said we would do	What we achieved in 2025	What to expect in 2026
We intend to keep our LTV at around 30 per cent.	The impact of increased borrowings due to development spend offset by higher asset values has meant that LTV has increased from 28 per cent to 31 per cent at 31 December 2025 while net debt : EBITDA ratio decreased from 8.6 times to 8.4 times.	We aim to maintain our mid-cycle LTV at around 30 per cent, although the evolution of the property cycle will inevitably mean that there are periods of time when our LTV is higher or lower than this. We believe this approach ensures significant headroom compared against our tightest gearing covenants should property values decline further, as well as providing the flexibility to take advantage of investment opportunities which may arise.

Financial position at 31 December 2025

At 31 December 2025, the gross borrowings of SEGRO Group and its share of gross borrowings in joint ventures totalled £6,062 million (31 December 2024: £5,536 million), of which £3 million (31 December 2024: £3 million) are secured by way of legal charges over specific assets. The remainder of gross borrowings are unsecured. Cash and cash equivalent balances were £143 million (31 December 2024: £536 million). Net borrowings were therefore £5,919 million (31 December 2024: £5,000 million). The average debt maturity was 6.0 years (31 December 2024: 6.9 years) and the average cost of debt as at 31 December 2025 (excluding non-cash interest and commitment fees) was 2.6 per cent (31 December 2024: 2.5 per cent).

Funds available to the SEGRO Group (including its share of joint ventures) at 31 December 2025 totalled £1,894 million (31 December 2024: £2,125 million), comprising £68 million in cash and short-term investments and £1,826 million of undrawn credit facilities. Funds available increases to £1,978 million (31 December 2024: £2,337 million) including tenant deposits and uncommitted credit facilities, which total £84 million.

Cash and cash equivalent balances, together with the Group’s interest rate and foreign exchange derivatives portfolio, are spread amongst a strong group of banks, all of which have a credit rating of ‘A-’ or better.

Financing

During 2025, SEGRO completed the following financing transactions.

• Short-term debt: SEGRO signed a new €1.6 billion revolving credit facility with its syndicate of eight relationship banks. The senior unsecured facility has an initial five-year term and may be further extended to a maximum of seven years, subject to lender approval. The new facility replaced the previous €1.0 billion and €0.6 billion syndicated revolving credit facilities which were due to mature in 2027. SELP signed a new €0.6 billion revolving credit facility with its syndicate of four relationship banks. The facility has a three-year term with the option to extend by a further two years, subject to lender approval. The new facility replaced the previous €0.5 billion and €0.1 billion syndicated revolving credit facilities which were due to mature in 2027.
• Medium-term debt: SEGRO signed a new five-year €360 million term loan facility with a group of banks. The facility is undrawn at year end and has an availability period for drawing to March 2026 when it will be drawn to partly refinance the upcoming €650 million bond maturity. SELP signed a new three-year €210 million term loan facility with relationship banks. The facility is undrawn at year end and has an availability period for drawing to June 2026.
• Long-term debt: SELP issued a €500 million 3.75 per cent bond due in 2032 which has refinanced the SELP €500 million 1.50 per cent bond which was repaid in November 2025.

Monitoring and mitigating financial risk

As explained in the risk section of this Annual Report, the Group monitors a number of financial metrics to assess the level of financial risk being taken and to mitigate that risk.

Treasury policies and governance

The Group Treasury function operates within a formal policy covering all aspects of treasury activity, including funding, counterparty exposure and management of interest rate, currency and liquidity risks. The Group Treasury reports on compliance with these policies on a quarterly basis and policies are reviewed regularly by the Board.

Gearing and financial covenants

We consider the key leverage metric for SEGRO to be a proportionally consolidated (look-through) loan to value ratio (LTV) which incorporates assets and net debt on SEGRO’s balance sheet and SEGRO’s share of assets and net debt on the balance sheets of its joint ventures. The LTV at 31 December 2025 on this basis was 31 per cent (31 December 2024: 28 per cent), the increase primarily driven by a higher debt, offset by higher asset values.

SEGRO’s borrowings contain gearing covenants based on Group net debt and net asset value, excluding debt in joint ventures. The gearing ratio of the Group at 31 December 2025, as defined within the principal debt funding arrangements of the Group, was 39 per cent (31 December 2024: 35 per cent). This is significantly lower than the Group’s tightest financial gearing covenant within these debt facilities of 160 per cent. Property valuations would need to fall by around 50 per cent from their 31 December 2025 values to reach the gearing covenant threshold of 160 per cent. A 50 per cent fall in property values would equate to an LTV ratio of approximately 62 per cent.

The Group’s other key financial covenant within its principal debt funding arrangements is interest cover, requiring that net interest before capitalisation be covered at least 1.25 times by net property rental income. The ratio for 2025 was 4.2 times, comfortably ahead of the covenant minimum. Net property rental income would need to fall by around 70 per cent from 2025 levels, or the average interest rate would need to rise to 9.5 per cent from the full-year average interest rate of 2.8 per cent to breach the interest cover covenant threshold. On a proportionally consolidated basis, including joint ventures, the interest cover ratio was 4.2 times.

SEGRO also monitors its leverage on a net debt : EBITDA basis which is an important metric for rating agencies and our investors. SEGRO’s net debt : EBITDA ratio at the end of 2025 was 8.4 times (2024: 8.6 times), reflecting the net impact of an £83 million increase in EBITDA and a £596 million increase in net debt.

SEGRO has a long-term issuer default rating of ‘BBB+’ and a senior unsecured rating of ‘A-’ from Fitch Ratings as at 31 December 2025. We mitigate the risk of over-gearing the Company and breaching debt covenants by carefully monitoring the impact of investment decisions on our LTV and by stress testing our balance sheet to potential changes in property values.

40 | SEGRO plc Annual Report & Accounts 2025 Overview Strategic Report Governance Financial Statements Further Information Financial review continued

Gearing and financial covenants continued

Our intention for the foreseeable future is to maintain our LTV at around 30 per cent, although the evolution of the property cycle will inevitably mean that there are periods of time when our LTV is higher or lower than this. However, this level of LTV through the cycle provides the flexibility to take advantage of investment opportunities arising and ensures significant headroom compared against our tightest gearing covenants should property values decline.

The weighted average maturity of the gross borrowings of the Group (including joint ventures at share) was 6.0 years, with the closest maturity being SEGRO’s €650 million euro bond in March 2026, followed by SELP’s €500 million euro bond in December 2026. These upcoming debt maturities have been partially refinanced by the €360 million term loan facility and €210 million term loan facility for SEGRO and SELP, respectively, with the remainder being financed by undrawn revolving credit facilities. This long average debt maturity comprises a well spread debt funding maturity profile which reduces future refinancing risk.

Interest rate risk

The Group’s interest rate risk policy is designed to ensure that we limit our exposure to volatility in interest rates. The policy states that between 50 and 100 per cent of net borrowings (including the Group’s share of borrowings in joint ventures) should be at fixed or capped rates, including the impact of derivative financial instruments.

At 31 December 2025, including the impact of derivative instruments, 97 per cent (2024: 116 per cent) of the net borrowings of the Group (including the Group’s share of borrowings within joint ventures) were either at fixed rates or are protected from rising interest rates with an active interest rate cap. The interest rate cap portfolio has a spread of expiry dates over the next 6 years to 2031 and an average expiry of 3.4 years.

As a result of the fixed rate cover in place, if short-term interest rates had been 100 basis points higher throughout the year to 31 December 2025, the Adjusted net finance cost of the Group would have been approximately £1 million lower (31 December 2024: £5 million lower) representing under 1 per cent (31 December 2024: 1 per cent) of Adjusted profit after tax. The sensitivity is inverted due to both interest rate cap hedging floating rate debt interest costs, and interest rate floors hedging floating rate cash interest income during the year to 31 December 2025. The interest rate floor contracts expired in December 2025. The Group elects not to hedge account its interest rate derivatives portfolio. Therefore, movements in its fair value are taken to the income statement but, in accordance with EPRA Best Practices Recommendations Guidelines, these gains and losses are eliminated from Adjusted profit after tax.

Foreign currency translation risk

The Group has minimal transactional foreign currency exposure but does have a potentially significant currency translation exposure arising on the conversion of its foreign currency denominated assets (mainly euro) and euro denominated earnings into sterling in the Group consolidated accounts. The Group seeks to limit its exposure to volatility in foreign exchange rates by hedging its foreign currency gross assets using either borrowings or derivative instruments. The Group targets a hedging range of between the last reported LTV ratio (31 per cent at 31 December 2025) and 100 per cent. At 31 December 2025, the Group was 71 per cent hedged by gross foreign currency denominated liabilities (31 December 2024: 75 per cent).Including the impact of forward foreign exchange and currency swap contracts used to hedge foreign currency denominated net assets, if the value of the other currencies in which the Group operates at 31 December 2025 weakened by 10 per cent against sterling (to €1.27, in the case of euros), net assets would have decreased by approximately £160 million and there would have been a reduction in gearing of approximately 2.4 per cent and in the LTV of 1.4 per cent. The average exchange rate used to translate euro denominated earnings generated during 2025 into sterling within the Consolidated Income Statement of the Group was €1.17:£1. Based on the hedging position at 31 December 2025, and assuming that this position had applied throughout 2025, if the euro had been 10 per cent weaker than the average exchange rate (€1.29:£1), Adjusted profit after tax for the year would have been approximately £11 million (2.2 per cent) lower than reported. If it had been 10 per cent stronger, Adjusted profit after tax for the year would have been approximately £14 million (2.8 per cent) higher than reported.

Going concern

As noted in the Financial position and funding section above, the Group has significant available liquidity to meet its current liabilities as they fall due including the upcoming €650 million bond maturity, operational requirements and capital commitments. The Group also has a long-dated debt maturity profile and substantial headroom against financial covenants.
* In April 2025 SEGRO signed a new €1.6 billion revolving credit facility with its syndicate of eight relationship banks. The senior unsecured facility has an initial five-year term and may be further extended to a maximum of seven years, subject to lender approval.
* In September 2025, SEGRO signed a new €360 million term loan facility with relationship and non-relationship banks. The facility is undrawn at year end and has an availability for drawing until March 2026, and a final maturity date in September 2030.
* Cash and available committed facilities, excluding tenant deposits, at 31 December 2025 were £1.6 billion.

41 | SEGRO plc Annual Report & Accounts 2025 Overview Strategic Report Governance Financial Statements Further Information Financial review continued

Hedging position (% of net borrowings)

	31 December 2025	31 December 2024
SEGRO Group
Fixed rate borrowings	83	92
Floating rate borrowings subject to an active cap	16	23
Floating rate borrowings subject to an inactive cap	4	3
Floating rate borrowings not hedged $^{(1)}$	(1)	(9)
Total gross debt	102	109
Cash and cash equivalents $^{(2)}$	(9)	(11)
Total	100	100
SEGRO Group and JVs at share
Fixed rate borrowings	84	97
Floating rate borrowings subject to an active cap	13	19
Floating rate borrowings subject to an inactive cap	4	3
Floating rate borrowings not hedged	1	(8)
Total gross debt	102	111
Cash and cash equivalents $^{(2)}$	(11)	(11)
Total	100	100

Going concern continued
* The Group continuously monitors its liquidity position compared to committed and expected capital and operating expenses on a rolling forward 18-month basis. The quantum of committed capital expenditure at any point in time is typically low due to the short timeframe to construct warehouse buildings.
* The Group also regularly stress tests its financial covenants. As noted above, at 31 December 2025, property values would need to fall by around 50 per cent before breaching the gearing covenant. In terms of interest cover, net rental income would need to fall by 70 per cent or the average interest rate would need to reach in excess of 9 per cent before breaching the interest cover covenant. All would be significantly in excess of the Group’s experience during the financial crisis of 2008. Having considered the principal risks facing the Group, including liquidity and solvency risks, stress testing, scenario analysis and material uncertainties, the Directors have a reasonable expectation that the Company and the Group have adequate resources to continue in operational existence for the foreseeable future (a period of at least 12 months from the date of approval of the Financial Statements). Accordingly, they continue to adopt the going concern basis in preparing these Financial Statements.

Income Statement review

Presentation of financial information

The Group Financial Statements are prepared under IFRS where the Group’s interests in joint ventures are shown as a single line item on the income statement and balance sheet and subsidiaries are consolidated at 100 per cent. The Adjusted profit measure reflects the underlying financial performance of the Group’s property rental business, which is our core operating activity. It is based on EPRA earnings as set out in the Best Practices Recommendations Guidelines of the European Public Real Estate Association (EPRA) which are widely used alternate metrics to their IFRS equivalents within the European real estate sector (further details can be found at www.epra.com). In calculating Adjusted profit, the Directors may also exclude additional items considered to be non-recurring, unusual, or significant by virtue of size and nature. See Note 2 for more detail.

Adjusted profit (Note 2)

	2025 £m	2024 £m
Gross rental income	637	592
Property operating expenses	(94)	(92)
Net rental income	543	500
Joint venture management fee income	25	26
Management and development fee income	3	6
Net service charge and other income	1	(1)
Administrative expenses	(73)	(76)
Share of joint ventures' Adjusted profit	78	83
Adjusted operating profit before interest and tax	577	538
Net finance costs	(68)	(68)
Adjusted profit before tax	509	470
Tax on Adjusted profit	(14)	(12)
Adjusted profit after tax	495	458

$^1$ Comprises net property rental income less administrative expenses, net finance costs and taxation.

Net rental income £43m higher

Net rental income increased by £43 million to £543 million (or by £47 million to £675 million including joint ventures at share before joint venture fees), reflecting the positive net impact of like-for-like rental growth, development completions and investment activity during the year, offset by the impact of disposals. On a like-for-like basis $^2$, before other items (primarily corporate centre and other costs not specifically allocated to the two property businesses), net rental income increased by £33 million, or 6.0 per cent, compared to 2024. This is due to strong rental performance across our portfolio. In the UK, there was a 6.2 per cent increase, primarily through capturing the reversionary potential in the portfolio through lease reviews and renewals. In Continental Europe there was a similar increase (5.8 per cent), primarily through indexation and higher average occupancy.

$^2$ The like-for-like net rental growth metric is based on properties held throughout both 2025 and 2024 on a proportionally consolidated basis. This provides details of underlying net rental income growth excluding the distortive impact of acquisitions, disposals and development completions.

Administration expenses £3m lower

Administrative expenses have decreased by £3 million to £73 million in the current year. This primarily related to careful cost control and stable indirect property and administration headcount (168 compared to 167 in 2024), offset by an increase in depreciation of £5 million reflecting investment in technology through IT costs and depreciation from project spend in previous years. This is a contributory factor for the total cost ratio (after share-based payments), which includes property operating expenses which decreased from 20.7 per cent to 19.8 per cent in the current year. Excluding the impact of vacant costs, the total cost ratio has decreased from 19.1 per cent to 17.5 per cent. Further detail is given in Table 9 in the notes to the Financial Statements.

Income from joint ventures £6m lower

Income from joint ventures fell by £6 million in total compared to the prior year, being a decrease in SEGRO’s share of joint ventures’ Adjusted profit after tax by £5 million and a decrease in joint venture management fee income by £1 million. The Adjusted profit fell from £83 million in 2024 to £78 million in 2025. Whilst net rental income has increased by £4 million, this has been offset by increases in net finance costs (£4 million) from higher net borrowings and increases in tax (£4 million) as profits were more weighted to higher taxation jurisdictions. Joint venture management fee income decreased by £1 million to £25 million in 2025 due to a slight reduction in development activity.

Net finance costs £0m flat

Net finance costs were flat compared to 2024 at £68 million. The gross interest costs in the year (£131 million) are £4 million lower than the prior year which is completely offset by the £4 million reduction in interest capitalised on development properties in 2025 (£63 million). Gross interest costs reduced as a result of lower interest rates, particularly EURIBOR, compared to the prior year.

42 | SEGRO plc Annual Report & Accounts 2025 Overview Strategic Report Governance Financial Statements Further Information Financial review continued

Income Statement review continued

Taxation 2.8% (effective rate)

The tax charge on Adjusted profit of £14 million (2024: £12 million) reflects an effective tax rate of 2.8 per cent (2024: 2.6 per cent). The Group’s effective tax rate reflects the fact that around three-quarters of its wholly-owned assets are located in the UK and qualify for REIT status. This status means that income from rental profits and gains on disposals of assets in the UK are exempt from corporation tax, provided SEGRO meets a number of conditions including, but not limited to, distributing 90 per cent of UK taxable profits.

Adjusted profit (EPS) £37m higher (36.6p)

Adjusted profit after tax increased by £37 million to £495 million (2024: £458 million) as a result of the above movements, primarily growth in rental income.Adjusted profit is detailed further in Note 2 to the Financial Statements. Adjusted earnings per share are 36.6 pence compared to 34.5 pence in 2024 due to the increase in Adjusted profit offset by the 23.8 million increase in the average number of shares in issue compared to the prior year.

IFRS profit

IFRS profit before tax in 2025 was £560 million (2024: £636 million), equating to basic post-tax IFRS profit per share of 40.7 pence compared with 44.7 pence per share for 2024. A reconciliation between Adjusted profit before tax and IFRS profit before tax is provided in Note 2 to the Financial Statements. The principal driver of the reduction in IFRS profit is realised and unrealised property gains which is the main reason for the decrease in profit per share in 2025 compared to 2024. Total gain on properties is £93 million (2024: £167 million), the reduction from 2024 is due to lower profit on sale of investment properties as detailed further in Note 8. The largest component is valuation gains on investment properties of £91 million including joint ventures at share (2024: £90 million), which is driven by a 2.3 per cent increase in ERV and gains from development completions. These are discussed in more detail in the Performance review on page 28. In addition, there has been a fair value loss on derivatives of £35 million (2024: £3 million gain) primarily from euro denominated interest rate swaps.

Balance sheet

At 31 December 2025, IFRS net assets were £12,273 million (31 December 2024: £12,049 million), reflecting 906 pence per share (31 December 2024: 889 pence) on a diluted basis. Adjusted NAV per share at 31 December 2025 was 925 pence, an increase of 18 pence compared to the prior year (31 December 2024: 907 pence). This movement primarily reflects profits and property gains, offset by dividends, and exchange rate movements. The chart highlights the main factors behind the movement in Adjusted NAV. A reconciliation between IFRS and Adjusted NAV is available in Note 12 to the Financial Statements.

Cash flow and net debt reconciliation

Cash flows from operating activities of £492 million are £33 million higher than the prior year primarily from increased rental activity. Finance cost outflows of £134 million in servicing the debt facilities, represent a small reduction on the prior year (£141 million) broadly reflective of the lower gross interest charge (before capitalised interest) in the period. Interest rate risk management is detailed further in the Financial review on page 41. In addition there were tax payments of £25 million, primarily in Italy. The Group made net investments of £399 million in investment and development properties during the year on a wholly-owned cash flow basis (2024: £377 million). This is principally driven by expenditure of £444 million (2024: £1,000 million) to purchase and develop investment properties to deliver further growth in line with our strategy. This was offset by disposals of investment properties of £45 million (2024: £623 million) as the business continued to recycle assets when the opportunity arose. During the year £405 million (2024: £277 million) in dividends were paid as the prior year dividends included a scrip dividend uptake discussed further in Note 11. The net debt movement also includes a £166 million increase in respect of the retranslation of the euro denominated debt as the euro has weakened over the course of the year from €1.21:£1 to €1.15:£1. Overall, net debt has increased in the year by £596 million to £4,840 million.

43 | SEGRO plc Annual Report & Accounts 2025 Overview Strategic Report Governance Financial Statements Further Information Financial review continued

Adjusted net asset value (pence per share)

Description	Value
EPRA NTA attributable to ordinary shareholders at 31 December 2024	907p
Adjusted profit after tax	37p
Realised and unrealised property gain	7p
Dividend (2024 final and 2025 interim)	(30)p
Exchange rate movement (net of hedging)	5p
Other	(1)p
EPRA NTA attributable to ordinary shareholders at 31 December 2025	925p

Cash flow bridge (£m)

Item	Amount
Opening net debt	(4,244)
Cash flow from operating activities	492
Finance costs (net)	(134)
Dividends received (net)	63
Tax paid	(25)
Dividends paid	(405)
Purchase and development of investment properties	(444)
Sale of investment properties	45
Acquisitions of interest in property and other investments	(8)
Net divestment in joint ventures	34
Net settlement of foreign exchange derivatives	(15)
Purchase of plant and equipment and intangibles	(29)
Other cash movements	3
Non cash movements	(7)
Exchange rate movements	(166)
Closing net debt	(4,840)

Capital expenditure

Table 10 in the Supplementary Notes sets out analysis of the capital expenditure during the year. This includes acquisition and development spend, on an accruals basis, in respect of the Group’s wholly-owned investment and trading property portfolios, as well as the equivalent amounts for joint ventures at share. Total spend for the year was £835 million, a reduction compared to the prior year (2024: £1,104 million), with reduced spend on acquisitions which were primarily undertaken by the SELP joint venture in the current year. The development spend of £387 million (2024: £471 million) was split equally between the UK (predominantly in the National Markets region) and CE (predominantly in Germany). More detail on this spend can be found in the Development and Investment Updates on pages 30 to 34. Development capital expenditure also includes infrastructure spend of £149 million (2024: £138 million). Interest of £64 million (2024: £69 million) has been capitalised in the year. Spend on existing completed properties totalled £61 million (2024: £54 million). The balance mainly comprises refurbishment and fit-out costs, which equates to less than 8 per cent of total spend.

Dividend increase reflects the strong operational results and confidence for the future

Under the UK REIT rules, we are required to pay out 90 per cent of UK-sourced, tax-exempt rental profits as a ‘Property Income Distribution’ (PID). Since we also receive income from our properties in Continental Europe, our total dividend should normally exceed this minimum level and we target a payout ratio of 85 to 95 per cent of Adjusted profit after tax. We aim to deliver a progressive and sustainable dividend which grows broadly in line with our Adjusted earnings per share. The Board has concluded that it is appropriate to recommend an increase in the 2025 final dividend per share by 1.2 pence to 21.4 pence (2024: 20.2 pence). We will pay the 2025 final dividend as a PID and expect to pay the 2026 interim dividend as an ordinary dividend. The Board’s recommendation is subject to approval by shareholders at the 2026 Annual General Meeting to be held on 23 April 2026, in which event the 2025 final dividend will be paid on 8 May 2026 to shareholders on the register at the close of business on 27 March 2026. In considering the final dividend, the Board took into account:
* the policy of targeting a payout ratio of between 85 and 95 per cent of Adjusted profit after tax;
* the desire to ensure that the dividend is sustainable and progressive throughout the cycle; and
* the results for 2025 and the outlook for earnings.

The total dividend for the year will therefore be 31.1 pence, a rise of 6.1 per cent versus 2024 (29.3 pence) and represents a distribution of 85 per cent of Adjusted profit after tax. The Board has decided not to offer a scrip dividend option for the 2025 final dividend.

44 | SEGRO plc Annual Report & Accounts 2025 Overview Strategic Report Governance Financial Statements Further Information Financial review continued

Confirmation of viability

The Directors have considered the Group’s prospects, including reference to the Group’s principal risks, to form the basis of our assessment of short-term and longer-term viability. The process for conducting this assessment is summarised in the Audit Committee’s Report on page 98. The Directors confirm that they have a reasonable expectation that the Group will be able to continue in operation and has adequate resources to meet its liabilities as they fall due over the next five years. The assessment of viability is split into short-term and longer-term time horizons.

Short-term assessment

The short-term assessment included consideration of our going concern assessment and a review of key controls around liquidity management. Management regularly reviews the Group’s liquidity position and operating results. In addition, key treasury metrics including financial covenants are reviewed by the Executive Committee on a quarterly basis.

Longer-term assessment

The period assessed for the longer term is the same five-year time horizon as covered by the Group’s annual rolling five-year strategic financial plan. This is considered to be the optimum balance between our need to plan for the long term, and the progressively unreliable nature of forecasting in later years, particularly given the historically cyclical nature of the property industry. The strategic financial plan comprises a five-year Medium-Term Plan (MTP) and an Asset Plan, within the context of macroeconomic and property market outlooks provided by external advisers and SEGRO expertise. The central corporate team and each country or regional property team provide a forecast for revenue and costs for the business for the MTP and for total returns from each asset for the Asset Plan. They also provide forecasts on potential development activity from the existing land bank, refurbishment of existing assets (including with regard to current and expected environmental legislation — see pages 48 to 55 for more detail on climate-related financial disclosures) and their expectations of acquisitions and disposals. This process generates a five-year forecast for capital expenditure and associated funding requirements, net income, net asset values and cash flows.The Directors confirm that they have no reason to expect a step-change in the Group’s viability immediately following the five-year period assessed. In addition to the robust ongoing assessment and management of the risks facing the Group, as already set out in this section, the Group has stress tested the MTP. The stress tests consider the risks that could either individually, or in aggregate, threaten the viability of the Group, represented by the breach of key financial ratios and covenants. The risks are based on an individual event or combination of events occurring, using historic data (for example the acute property valuation decline in 2007–2009) and forward-looking probability analysis where available. The process for conducting the Group’s assessment is the responsibility of the Chief Financial Officer and is overseen by the Audit Committee. The main stress tests carried out in 2025, along with their potential impacts, were:
* A scenario consisting of:
* zero market rental (ERV) growth throughout the period;
* a significant reduction in development levels;
* re-letting of units following lease expiry taking an extra three months; and
* fewer asset disposals than in the base plan.
The main impacts are lower asset values, and Adjusted NAV throughout the period, with reduced earnings growth, and high leverage.
* A no disposals scenario: NAV and earnings would improve and leverage metrics would deteriorate; however, they would remain well within covenant thresholds.
* Impact of rising interest rates, manifested in a reverse stress test to assess what level of interest rates would cause a covenant breach: a rise of at least eight percentage points in the Group’s average interest rate across the period, assuming current levels of fixed rate interest and protection from our interest rate caps.

Reverse stress testing was also undertaken over the period under review. None of the financial covenants were breached during the five-year period, with gearing remaining comfortably below 160 per cent and interest cover well above 1.25 times. Property valuations would need to fall by around 50 per cent from their 31 December 2025 values to reach the gearing covenant threshold of 160 per cent. A 50 per cent fall in property values would equate to an LTV ratio of approximately 62 per cent. Net property rental income would need to fall by around 70 per cent from 2025 levels to reach the interest cover covenant threshold of 1.25 times.

Outside the MTP, the following viability risks were also considered:
* A 10 per cent movement in foreign exchange rates: due to long-term hedging arrangements in place, foreign exchange movements are not considered a material risk to the Group’s viability.
* An inability to refinance maturing debt: the nearest material refinancing requirement is in 2026 for the €650 million bond maturity which has been partially refinanced by the new €360 million term loan facility, with the residual financed through the revolving credit facility which was £1.3 billion undrawn at 31 December 2025. This means the risk to the Group’s viability is towards the start of the period. We typically consider refinancing options for long-term debt around 12 months ahead of maturity, and where not, we carefully consider the liquidity implications. In the event that relationship bank lending, equity and bond markets are unavailable, options to raise liquidity include reductions in capital expenditure and increased asset disposals.
* A sustained interruption to the Group’s business continuity: a qualitative assessment of SEGRO’s ability to operate with compromised workspace and IT structure is carried out each year, with regular live scenario tests undertaken by key members of staff with the help of external advisers to ensure responses are rehearsed and mitigations are in place. No material threat to SEGRO’s viability was identified.
* Climate-related threats to the portfolio: working with Savills Earth, we conducted a climate risk exposure study to assess the acute and chronic physical risks to our portfolio spanning a period from the current day to 2100. Drought stress presents as the most significant emerging chronic hazard but with limited impact on our assets. Heat stress and river flood are other areas where there is an increase in risk exposure compared to the baseline, but assets exposed to these hazards represent only 5 to 6 per cent of rental value. Therefore, we do not consider such risks to be a threat to the viability of the Group. Further information can be found on pages 49 and 50.

The scenarios set out are hypothetical and severe for the purpose of creating outcomes which have the ability to threaten the viability of the Group. We also note that, in the event of a severe threat to liquidity, various options are available to the Group to maintain viability. These options include reduction of any non-committed capital expenditure and acquisitions, selling assets, or reducing cash dividends (including the use of scrip dividends). We are optimistic about the longer-term prospects of our business based on our prime, sustainable portfolio and high levels of occupancy let to a diverse range of customers on long average lease lengths, backed by a strong balance sheet with long debt maturity and with well spread diversified refinancing requirements. These are supported by the long-term trends in the warehouse and industrial real estate sector of greater e-commerce penetration of retail sales, supply chain reconfiguration and increasing urbanisation across Europe.

45 | SEGRO plc Annual Report & Accounts 2025 Overview Strategic Report Governance Financial Statements Further Information

2025 Viability statement

This table signposts related non-financial and sustainability information in this report and further reading on our website.

Reporting requirement	Policies	Website (WWW.SEGRO.com)	Reference in 2025 Annual Report
1. Environmental matters	Mandatory Sustainability Policy	About – Policies	Responsible SEGRO Championing low-carbon growth 22-23
2. Climate-related financial disclosure requirements	Responsible SEGRO	Climate-related financial disclosures	48-55
3. Employees	Code of Business Conduct and Ethics	About – Policies	Governance 80 87
	Human Rights Policy	About – Policies	Governance 125
	Our Purpose and Values	Our Purpose – Our Values	Our business model and strategy 18-19
	Nurturing talent		25
	Governance
	Diversity and Inclusion Policy	About – Policies	Nurturing talent 25
	Group Health and Safety Policy	About – Policies	Nurturing talent, principal risks and Governance 25, 62, 79
4. Human rights	Human Rights Policy	About – Policies	Directors’ Report 125
	Modern Slavery and Human Trafficking Statement	About – Slavery and Human Trafficking	Anti-Slavery and Human Trafficking Directors’ Report 125
	Modern Slavery and Labour Standards Supplier Code	About – Slavery and Human Trafficking	Governance Directors’ Report 87 125
5. Social	Modern Slavery and Labour Standards Supplier Code	About – Slavery and Human Trafficking Suppliers	Directors’ Report 87 125
	Modern Slavery Statement	About – Slavery and Human Trafficking	Directors’ Report 125
	Human Rights Policy	About – Policies	Directors’ Report 125
	Group Health and Safety Policy	About – Policies	Nurturing talent, principal risks and Board leadership and Company purpose 25, 62, 79
	Supplier Code of Conduct	About – Policies	Governance 87
6. Anti-corruption and anti-bribery	Code of Business Conduct and Ethics	About – Policies	Nurturing talent 25 Governance 80
7. Business model		About – Our Business	Our business model and strategy 18-19
8. Principal risks and uncertainties			Effective risk management 56-58
9. Non-financial Key Performance Indicators		Investors – Investment Case – Non- financial Key Performance Indicators	Key performance indicators 27

46 | SEGRO plc Annual Report & Accounts 2025 Overview Strategic Report Governance Financial Statements Further Information

Non-financial information and sustainability information statement

These figures have been prepared in accordance with the GHG Protocol to fulfil our regulatory obligation to report greenhouse gas emissions pursuant to section 7 of the Companies Act 2006 (Strategic Report and Directors’ Report) Regulations 2013 and the Companies (Directors’ Report), and Limited Liability Partnerships (Energy and Carbon Report) Regulations 2018; the latter commonly referred to as Streamlined Energy and Carbon Reporting (SECR). We report our data using an operational control approach to define our organisational boundary and have reported emissions following both the location-based and market-based approach, using the IEA residual emission factors for any energy tariffs that are not low-carbon. We have chosen ‘annualised responsible floor area sq m’ as our intensity metric, which is all floor area with Scope 1 and 2 emissions in the reporting year, apportioned to the length of time the space was vacant. ‘Total energy use’ covers electricity, fuels (including transport fuels) and district heating converted to kWh units. 2025 greenhouse gas emissions and energy use data are for the period 1 January to 31 December 2025 (2024: 1 January to 31 December 2024). Scopes 1 and 2 emissions, reported under SECR, account for less than 1 per cent of SEGRO’s total emissions. For our full Scopes 1 to 3 carbon footprint, and all of the metrics we are tracking on our path to net-zero carbon, please see our Responsible SEGRO Report 2025. Our Responsible SEGRO Report, and a detailed description of our methodology, can be found at SEGRO.com/Responsible-SEGRO/reports-downloads.

Streamlined energy and carbon reporting (SECR)

In line with best practice, under SECR we report both a ‘market-based’ and ‘location-based’ figure for emissions from electricity consumption.The market-based approach incorporates SEGRO’s move towards low-carbon energy tariffs on its controlled space (largely its SEGRO-occupied offices, SEGRO-managed common parts and vacant space), whereas the ‘location-based’ approach uses national grid averages (see the notes to the table below for more on location/market). SLR Consulting provide limited independent assurance to ASAE3000.

Global SECR-relevant GHG emissions in metric tonnes $\text{CO}_2\text{e}$

Emissions from:	2025	2025 – UK	2025 – EU	2024*	2024 – UK	2024 – EU
Scope 1 emissions – combustion of fuels and refrigerant use	2,306	829	1,477	2,292	1,127	1,165
Scope 2 emissions – purchased energy (location-based)**	3,637	1,228	2,409	3,375	1,357	2,018
Scope 2 emissions – purchased energy (market-based)***	1,801	1,041	760	1,296	638	658
Scope 3 – business travel	64	34	30	108	58	50
Total SECR carbon emissions (location- based) $\text{tCO}_2\text{e}$	6,007	2,091	3,916	5,774	2,542	3,232
Responsible floor area $\text{sq m}$****	595,920	286,983	308,937	468,452	258,316	210,136
Carbon intensity ($\text{kgCO}_2\text{e}/\text{sq m}$) – location-based	10.1	7.3	12.7	12.3	9.8	15.4
Carbon intensity ($\text{kgCO}_2\text{e}/\text{sq m}$) – market-based	7.0	6.6	7.3	7.9	7.1	8.9
Total energy use ($\text{kWh}$)	27,961,249	12,634,283	15,326,966	23,835,174	12,783,041	11,052,133

* All 2024 data above has been restated to update Q4 2024 energy consumption estimates to actuals.
** The location-based approach to calculating Scope 2 emissions (emissions from electricity consumption) uses national grid average emissions factors which reflect the make-up of a country’s electricity supply between fossil fuels and renewables. SECR legislation requires that a location-based figure be reported.
*** The market-based approach to calculating Scope 2 emissions reflects the carbon intensity of the electricity tariffs procured by SEGRO, using the IEA residual emission factors for any energy tariffs that are not low-carbon.
**** Responsible floor area includes common areas and space classified as vacant during the year, apportioned to the length of time the space was vacant. For more details on the independent assurance of our GHG data see: www.SEGRO.com/Responsible-SEGRO/reports-downloads

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Streamlined energy and carbon reporting

For our Responsible SEGRO Report use the QR code or visit our website at https://www.SEGRO.com/Responsible-SEGRO/Responsible-SEGRO-review

As a leading owner, manager and developer of industrial assets in Europe, our sustainability and financial strength is reliant upon an effective and rigorous risk management framework. Our properties span the UK and Continental Europe and are therefore exposed to a variety of effects from a changing climate. We believe that these climate-related risks, if unmitigated, present a threat to society as well as to our business operations and financial strength over the coming decades.

A core element of our strategy to reduce the carbon intensity of our business is our science-based greenhouse gas (GHG) emissions reduction targets, set in 2024 and re-baselined in 2025. We aim to reduce the embodied carbon intensity of our new buildings by 58 per cent, and our corporate and customer emissions intensity by 80 per cent, both by 2034 against a 2023 base line. We also have 2050 net-zero targets in these two categories, which make up the material portion of our Scope 1, 2 and 3 GHG emissions. These targets were approved by the Science Based Targets initiative (SBTi) during 2025.

The achievement of our targets in both categories is highly dependent upon factors outside of our control. Reduction of embodied carbon in our developments can be influenced via engagement with our suppliers but is dependent on the availability of low-carbon materials. We have limited control over emissions from customer activity in our assets but we seek to influence customer emissions through increasing our visibility of customer energy use, the adoption of ‘green’ lease clauses in new lettings, as well as the installation of on-site solar energy generation capacity.

There have been no material changes to the nature of the business over the past 12 months, but a revision to the calculation methodology required by the SBTi has resulted in changes to our 2023 baseline and 2024 comparative emissions intensities. Further information on this is included in the 2025 Responsible SEGRO Report.

We believe this disclosure is consistent with the recommendations and recommended disclosures of the Task Force on Climate-related Financial Disclosures (TCFD), including the ‘Guidance for All Sectors’ and the specific guidance applicable to the ‘Materials and Buildings’ industry to the extent to which it is applicable to SEGRO’s operations. It sets out how SEGRO incorporates climate-related risks and opportunities into governance, strategy, risk management, metrics and targets, and how we are responding to stakeholder expectations, national regulations and sector-wide best practice. This is an area of constant evolution and we intend to continue improving the disclosure of our activity and performance. The material information and disclosure on climate impact is provided in this Annual Report but additional complementary information can be found in the 2025 Responsible SEGRO Report.

Governance

Governance plays a key contributing role to the effective delivery of strategy and SEGRO has a clear governance structure with a single Board comprising an independent Chair, six independent Non-Executive Directors and two Executive Directors.

Board and management oversight of climate-related risks and opportunities

The Board is responsible for setting the strategic direction of the Company to ensure its long-term success which includes the delivery and integration of its strategic priorities, including Responsible SEGRO, and their associated targets. Specifically, the Board has oversight of climate-related performance, risks and opportunities and takes into consideration all elements of Responsible SEGRO, including climate-related risks and opportunities, when reviewing and guiding on annual budget and long-term planning matters as well as major strategic and investment decisions.

Governance of climate-related risks and opportunities

Board Oversight of climate-related strategy and performance
Executive Committee	Ä			Ä	Ä
Setting climate change-related strategy and targets		Ä	Ä	Ä	Ä
Technical Implementation Group
Focus on development policy and improvement
Investment Committee	Ä
Ensuring capital allocation decisions are consistent with climate-related targets
Group Risk Committee
Monitoring climate change-related risks and emerging risks
ESG Governance Committee
Monitoring SEGRO’s climate targets and external ESG disclosures
Operational Implementation Group
Focus on policy and improvement of existing assets

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Climate-related financial disclosures

Audit Committee
Oversight of climate-related disclosure within the Annual Report
Nomination Committee
Considers sustainability and climate change-related experience of new and existing Board members
Remuneration Committee
Sets, monitors and approves compensation and targets related to sustainability performance, including reducing Group carbon emissions

Board and management oversight of climate-related risks and opportunities continued

The Board has access to advice relating to climate-related risks and opportunities from internal and external bodies including the in-house sustainability team, our portfolio valuers, Schneider Electric as our environmental consultants and SLR Consulting as a provider of partial assurance of Group environmental data, among others. The Chief Executive has overall responsibility for the Responsible SEGRO priorities. The Managing Director, Operations, Digital and Customer is responsible for climate-related risks and opportunities that relate to the portfolio. The table on page 48 outlines the ways in which Board Committees provide oversight for SEGRO’s climate change-related strategy and targets.

Governance: action during 2025

• The Executive Committee has approved our updated GHG reduction targets, which were validated by SBTi also in 2025.
• The Board received updates on progress against our Responsible SEGRO commitments, including reducing carbon emissions.
• The Audit Committee received updates from the Head of Sustainable Finance on evolving sustainability reporting requirements in the UK and European Union and the progress SEGRO is making to respond to these.
• The Remuneration Committee approved the targets relating to the Responsible SEGRO annual bonus metrics for Executive Directors, which are mirrored for all employees, including ones incentivising actions to reduce embodied carbon in developments and increase energy data visibility.
• The ESG Governance Committee has been set up to advise and support the Executive Committee in respect of climate targets and external ESG disclosures.

Strategy

As a long-term property owner, we need to ensure that our buildings are fit for purpose for the future. One of the ways we do this is to build adaptable buildings, suited to more than one customer. This ensures a longer life span for the building as well as reducing the risk of vacancy and future refurbishment costs. The Responsible SEGRO framework sets out how we integrate environmental and social considerations into our corporate strategy, including ‘Championing low-carbon growth’ which sets out our approach to reducing carbon emissions from our business activities. This commitment includes Scope 1 and 2 emissions and the material Scope 3 emissions which are Capital Goods (embodied carbon from completed developments) and Downstream Leased Assets (largely corporate emissions and those from customers occupying our buildings).See the Responsible SEGRO Report at www.SEGRO.com for a full breakdown of our Scope 1, 2 and 3 emissions.

Strategy: action during 2025

SEGRO completed a number of projects to mitigate climate-related transition risks:
* We continued to work with external consultants to update and refine our Net-Zero Transition Plan, taking improved emission forecasting capabilities to inform a more accurate strategy and timeline for achieving net-zero.
* We continued to invest in our existing portfolio, refurbishing older assets to improve their energy efficiency and carbon footprint and retrofitting solar PV arrays to standing assets to increase our on-site clean energy generating capacity.
* We also continue to work with external consultants to ensure that we are positioned to comply with the prevailing regulatory ESG reporting requirements comfortably before we become required to report on them.

Identification of climate-related risks and opportunities over the short, medium and long term and their impact on SEGRO’s business, strategy and financial planning

Materiality analysis of physical risk

In 2024, working with Savills Sustainability in conjunction with Munich Re, JBA and open-source data providers, SEGRO undertook a physical climate risk portfolio screening to assess the acute and chronic physical risks to our portfolio. This detailed assessment is performed every two years and takes into consideration the latest climate data and analytical approaches. The analysis identified where there were significant exposures to physical climate risks at country, portfolio and estate level across a range of climate scenarios, both Representative Concentration Pathways (RCPs) and Shared Socioeconomic Pathways (SSPs), and over four time horizons out to 2100.

In 2025 SEGRO updated this analysis to account for changes in the portfolio. The full report from Savills is available at www.SEGRO.com/Responsible-SEGRO/reports-downloads. For this study, the physical risk from hazards under RCP 4.5/SSP 2-4.5 (3ºC warming by 2100, the intermediate scenario) and RCP 8.5/SSP 5-8.5 (4–5ºC warming by 2100, the high emission scenario) were modelled on 196 estates, covering over 98 per cent of our owned or managed floor area (at 100 per cent) and estimated rental value (ERV, based on SEGRO wholly owned properties and its share of properties in joint ventures and associates). The outcome of this analysis for the 2050 time horizon is presented in the table on page 50.

In summary, primarily considering the intermediate scenario (RCP 4.5/SSP2-4.5) the risks to the business from exposure to climate change-related hazards are not considered to have materially changed. Drought Stress, involving an extended period of water deficit, presents as the most significant emerging chronic climate-related hazard across both RCP/SSP scenarios, with assets exposed to this hazard in the intermediate scenario representing 13 per cent of rental value (26 per cent in the high emissions scenario), focused on our portfolio in Southern Europe, specifically in Italy, Spain and southern France. The main risks to buildings associated with lack of water are also associated with fire weather and heat stress, where high temperatures are experienced for an extended period. The portfolio’s exposure to these hazards is relatively lower at 1 per cent and 5 per cent respectively. Beyond these risks our portfolio has relatively limited vulnerability to drought stress, as our buildings are not inherently significant users of water with systemic water use restricted to plumbing and fire protection systems, maintained in line with local regulations. River flood is the other area of potential vulnerability where there is an increase in risk exposure compared to baseline, but assets exposed to this hazard represent only 4-5 per cent of rental value in the intermediate scenario. 7 per cent of the portfolio, by rental value, is exposed to cold stress in the intermediate scenario, but this is lower than the current exposure meaning that the level of risk is expected to diminish over time.

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Climate-related financial disclosures continued

Identification of climate-related risks and opportunities over the short, medium and long term and their impact on SEGRO’s business, strategy and financial planning continued

Climate change physical exposure risk at asset level based on RCP 4.5/SSP 2-4.5 and RCP 8.5/SSP 5-8.5

Hazard	Metric	Scenario (RCP, Year)	Floorspace (at 100%)	ERV (at share)	Markets most affected
River Flood	1 in 100-year return period	RCP4.5, 2050 (Undefended)	5%	5%	France, Poland, Germany, UK, Italy, the Netherlands
		RCP8.5, 2050 (Undefended)	6%	6%	France, Poland, Germany, UK, Italy, the Netherlands
		RCP4.5, 2050 (Defended)	4%	4%	France, Poland, Germany, UK, Italy
		RCP8.5, 2050 (Defended)	4%	4%	France, Poland, Germany, UK, Italy
Storm surge	‘Very High’ Risk	SSP2-4.5, 2050 (Undefended)	3%	4%	Coastal regions in UK, Germany, the Netherlands
		SSP5-8.5, 2050 (Undefended)	3%	4%	Coastal regions in UK, Germany, the Netherlands
		SSP2-4.5, 2050 (Defended)	1%	2%	Coastal regions in UK
		SSP5-8.5, 2050 (Defended)	1%	2%	Coastal regions in UK
Precipitation Stress	‘High’ and ‘Very High’ Risk	SSP2-4.5, 2050	6%	3%	Italy
		SSP5-8.5, 2050	6%	3%	Italy
Drought Stress	‘High’ and ‘Very High’ Risk	SSP2-4.5, 2050	18%	13%	Southern France, Italy, Spain
		SSP5-8.5, 2050	49%	26%	Germany, Czech Republic, Poland, France, Italy, Spain
Heat Stress	‘High’ and ‘Very High’ Risk	SSP2-4.5, 2050	11%	5%	Southern France, Central Spain, Italy
		SSP5-8.5, 2050	13%	6%	Southern France, Central Spain, Italy
Cold Stress	‘High’ and ‘Very High’ Risk	SSP2-4.5, 2050	19%	7%	Germany, Poland, Czech Republic
		SSP5-8.5, 2050	15%	5%	Germany, Poland, Czech Republic
Fire Weather Stress	‘High’ and ‘Very High’ Risk	SSP2-4.5, 2050	3%	2%	Southern France, Central Spain
		SSP5-8.5, 2050	3%	2%	Southern France, Central Spain

The assessment report and data above do not consider any asset specific development or refurbishment mitigation cycles. As part of our sustainable development objectives, assessments are carried out prior to development and adaptation measures, including but not limited to those listed to the right carried out accordingly.

Risk	Adaptation techniques
Drought Stress and Heat Stress (see R1 below)	• Rainwater harvesting systems for internal building use and landscaping
	• Thermal modelling undertaken and orientation/window positioning of the building reviewed, including external planting to provide shade, brise soleil, louvres, window tinting
	• On-site renewable energy generation installed to manage additional cooling requirements
River Flood and Precipitation Stress (see R2 below)	• Flood risk assessment to be carried out on development or retrospectively
	• Sustainable urban drainage systems
	• Retention schemes – ponds/basins

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Climate-related financial disclosures continued

Materiality analysis of transition risk

We work with our stakeholders (primarily our customers, suppliers and investors) and advisers (primarily our valuers and environmental consultants) to monitor, assess and prioritise emerging climate change transition risks. We judge materiality with reference to two main factors: the environmental and reputational risks of failing to meet our carbon emission reduction targets and the financial risk of building redundancy or being unable legally to lease our buildings. We consider these risks in the context of a qualitative scenario where legislation, regulation and behaviours drive progress towards sub-2 ºC warming by 2100. We believe that in this scenario there are three main climate change transition factors with the potential to impact the Group financially:

• Environmental legislation: legislation surrounding the sustainability performance of commercial and non-commercial real estate is likely to tighten in future as governments pursue their commitments under the Paris Agreement. We expect this to take the form of regulations but also increasingly some form of carbon tax (including Carbon Border Adjustment Mechanisms introduced by the EU and proposed by the UK) to encourage the use of lower-carbon materials and processes. The primary financial risk relates to our ability to rent out our buildings if they fall below emerging environmental legislation. This drives our determination to improve the energy performance of our portfolio both in new development and through refurbishment, measured primarily by increasing the floorspace rated B or better by Energy Performance Certificates and reducing the energy and CO2 intensity of our buildings.
• Customer behaviours and preferences: our customers, particularly our largest, international customers, increasingly expect their premises to display high levels of energy efficiency. Energy efficiency not only reduces the operating costs of the building but also helps them achieve their own environmental and carbon reduction targets. The primary financial risk relates to the appeal of our buildings to customers if they are below acceptable levels of energy efficiency and wider environmental sustainability, or do not offer expected facilities such as EV charging. We are addressing this risk through further improving the EPC ratings of our portfolio, increasing the amount of on-site renewable energy generation, and improving the sustainability credentials of our developments.
• Access to capital: investors are increasingly discriminating between investment opportunities based on sustainability credentials. The primary financial risk relates to reduced availability and higher cost of capital for companies which do not show strong performance and/or progress in this area.Applying the analysis to strategic planning

In terms of decision making, we consider climate-related issues within the following time horizons:
* Short-term: up to 12 months, in line with the budget setting carried out annually
* Medium-term: up to 5 years, in line with the Medium-Term Planning carried out annually
* Long-term: up to 10 years, in line with capital investment appraisal cash flows.

We assume a 60-year life span for our newly-developed properties. Given the relatively small element of the portfolio exposed to the physical risks, and the fact that our estates in Southern European contain some of our newest buildings, we believe the overall financial risk to be immaterial and longer term. However, as part of our active asset management and based on our analysis of the physical risks arising from climate change scenarios, we continue to monitor and analyse the asset-level risks and opportunities and their associated financial implications. Our exposure to transition risks is addressed by our response to energy efficiency regulations across our markets, as well our GHG emission reduction targets, both of which are embedded in our strategy.

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Climate-related financial disclosures continued

SEGRO Park Frechen, Germany

Climate-related risks

Risk	Risk horizon	Corporate strategy	Financial planning
R1 Chronic physical risk Rising temperatures (including extreme heat events)	Medium-term risks: • Greater investment in cooling measures inside and outside buildings • Higher operating costs for customers and SEGRO from increased cooling demand • Reduced wellbeing and productivity of workforce	Mitigations integrated into developments and refurbishments in properties in high-risk geographies, including water conservation through recycling of rain water and measures to reflect heat and improve shading externally.	Measures incorporated into financial appraisals of developments and refurbishments.
R2 Acute physical risk Flood and precipitation	Short-term risks: • Increased investment in drainage solutions and flood defences • Increased insurance, maintenance and repair costs from growing flood risk • Negative impact on asset valuations	All new investments (both acquisitions and developments) incorporate flood risk assessments. Measures taken to mitigate flood risk include rainwater recycling and landscaping to minimise run-off, and balancing pools to cater for run-off from hard-standing areas.	Measures incorporated into financial appraisals of acquisitions, refurbishments and developments. Valuers review assets for short-term physical risks as part of twice-yearly appraisals.
R3 Policy and legal transition risk Environmental legislation	Medium-term risks: In the UK, the Minimum Energy Efficiency Standard (MEES) regulations require buildings to achieve a certain standard of energy performance for them to be leased. At a high level, by 2030, properties will need to achieve a minimum Energy Performance Certificate rating of ‘B’ before they can be leased. Similar legislation is being put in place across our other markets. The aim of our corporate strategy is to be compliant with such legislation well in advance of the deadlines. Properties which are unrated or have an EPC below B are expected to be upgraded when they become vacant (approximately 43 per cent of such buildings in the UK are expected to be vacated by 2030).	Capex associated with refurbishment, including improving energy efficiency, is factored into short-term budgets and the five-year Medium-Term Plan. The estimated cost to upgrade the UK estate to EPC rating ‘B’ or better is approximately £40 million by 2030, much of which will be absorbed within normal course of refurbishment capex. The figure has decreased primarily due to work carried out to date to improve low-grade EPC premises to at least B-grade.
R4 Market transition risk Customer behaviours	Short- and medium-term risks: Customers expect to operate their properties efficiently. There is growing evidence of rental discount associated with buildings which display poor sustainability credentials.	New developments and refurbishments incorporate sustainability technologies suited to their use and location, including (but not limited to) solar panels (for customer use), electric vehicle charging facilities, low-carbon heating and initiatives to promote local biodiversity and worker wellbeing.	Capex associated with refurbishment, including improving energy efficiency, is factored into short-term budgets and the five-year Medium-Term Plan.
R5 Reputation transition risk Access to capital	Short- and medium-term risks: The Sustainable Finance Disclosure Regulation (SFDR) imposes mandatory ESG disclosure obligations for asset managers and other financial markets participants. The SFDR is accompanied by other emerging UK and EU sustainability reporting requirements which may impact non-financial companies.	We have an established Green Finance Framework which complies with International Capital Market Association and the Loan Market Association principles. The Framework sets out the investment criteria for deploying and allocating the proceeds of green finance instruments, including in energy-efficient and low-carbon buildings.	SEGRO will continue to monitor emerging UK and EU non-financial reporting regulations as required. When a decision is made to raise capital, consideration is given to whether the issue should fall under the Green Finance Framework (e.g. a Green Bond).

Climate-related opportunities

Opportunity	Risk horizon	Corporate strategy	Financial planning
O1 Energy and fuel On-site renewable energy generation	Short- and medium-term opportunity: Revenue and zero-emission energy potential from installing PV panels on building roofs.	PV panels are installed on roofs where feasible and all new developments are constructed with roofs to support PV panels if a full array is not installed during construction. Energy saving from solar PV is an important element in creating net-zero carbon buildings on a full life basis.	The costs of solar panels are incorporated in new development and refurbishment capex. Revenues and cost savings, which are currently a small proportion of overall revenues, are split between being incorporated into rents and separately identified.

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Climate-related financial disclosures continued

Risk management

Climate-related risks are identified and assessed using our risk management framework set out on page 58. Principal risks are defined as those which could intolerably exceed our risk appetite, considering both inherent and residual impact, and cause material harm to the Group.

Engagement with stakeholders

We engage with our stakeholders throughout the year on many different topics, although the subjects of climate change and the need to reduce corporate and customer GHG emissions have featured more prominently over the past year. More detail on our stakeholder engagement, including on climate-related matters, can be found on pages 84 to 89.

Identifying and assessing climate-related risks

Although climate change presents opportunities as well as risks for SEGRO, climate change is identified as a principal risk within environmental sustainability and climate change on the Risk Register. Climate-related risks are also considered within other principal risks including political and regulatory, development plan execution and major event/business disruption.

For each risk, our Risk Register tracks:
* description of the risk and the potential effects
* the Executive Director with overall ownership and the Risk Manager responsible for monitoring and managing the risk
* an annual probability and potential impact, to enable prioritisation
* mitigations in place as well as the owner of each mitigating action

At the current time and based on asset-level scenario analysis, no material capital expenditure has been identified beyond normal course development and refurbishment costs associated with mitigating assets in high-risk locations against climate change-related risks. Such risks, and related capital expenditure, are considered as part of the annual asset planning process associated with the five-year Medium-Term Plan.

Managing and mitigating climate-related risks

Our process for recognising, monitoring and mitigating principal risks, including climate-related risks, is set out on page 58 of the Annual Report. The Board has overall responsibility for ensuring that risk is effectively and consistently managed across the Group. The Audit Committee monitors the effectiveness of the Group’s risk management process on behalf of the Board. In every year, the Audit Committee twice reviews the process of how the Group Risk Register has been compiled and the Board twice reviews the principal and emerging risks. The Board also reviews and approves the Group’s risk appetite at least once every year.

In its Responsible SEGRO framework, SEGRO has committed itself to achieving science-based targets for reducing Scope 1, 2 and 3 emissions (including corporate and customer emissions) to ensure compliance with a less than 1.5ºC increase in global temperatures. A key risk surrounding these targets is that we cannot be certain to achieve them given limited ability to control or influence customers’ energy use in our buildings and uncertainty over the availability of low-carbon building materials to reduce the embodied carbon emissions in developments. The metrics and targets section below provides details on how we monitor these risks and our progress over the past year.# Risk management: action during 2025

We have an established Mandatory Sustainability Policy and internal targets associated with not only reducing embodied carbon emissions but also working with our customers and supply chain to achieve greater visibility of those emissions. These targets are integrated within a Responsible SEGRO element of the bonus metrics throughout the organisation.

• Sustainability Policy: We review our Mandatory Sustainability Policy annually and continue to update it to reflect the latest level of ambition and minimum expectations. We will continue to keep the policy under review and adjust and tighten it in response to emerging regulation and market norms to ensure that it is always in line with best-in-class practice.
• We initiated a project to analyse in greater detail the vulnerability of our portfolio where modelled, unmitigated physical climate change hazards are at the more severe end. We used the hazards highlighted by our portfolio level analysis performed in 2024 for selected sites; and have conducted one on-site visit in 2025, with a second one scheduled for 2026 to conduct more detailed examinations of vulnerability.

Metrics and targets

To enable our stakeholders to consider and compare our reporting, we contribute to a number of externally recognised benchmarks and disclose metrics in line with externally recognised frameworks including Sustainability Accounting Standards Board (SASB), Global Reporting Initiative (GRI) and the EPRA Best Practices Recommendations on Sustainability Reporting. We will also report in line with new and evolving UK and European Sustainability Reporting requirements, where required and relevant to us, which encompass disclosures from a number of these external frameworks. In order to ensure that we also report on those issues that we can have a direct impact upon, we refer to our double materiality assessment (see Responsible SEGRO Report), and identify the key associated metrics that are material to the business.

Below are the climate-related metrics and targets which we monitor. Those in bold are incorporated into the Responsible SEGRO elements of the annual bonus of all employees. There are no metrics specifically mapped to risk 2 (flood), although risks 1 and 2 are addressed in the scenario analysis on page 50. We are monitoring and addressing the asset-level risks and opportunities but there is not yet a meaningful, measurable metric for these areas.

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Climate-related financial disclosures continued

Metrics and targets continued

Assets Policy and Legal	Corporate and customer carbon intensity of the portfolio (based on the $\text{CO}_2\text{e}$ emissions of the portfolio for which we have visibility of the data), in $\text{kg}\text{CO}_2\text{e}/\text{sq}\text{ m}$ of AUM (science-based target, market basis)	2023 baseline (rebased): $22.5\text{kg}\text{CO}_2\text{e}/\text{sq}\text{ m}$	2034 interim target (rebased): $4.5\text{kg}\text{CO}_2\text{e}/\text{sq}\text{ m}$ (-80% vs baseline)	2050 target: net-zero	$20.0$	$24.0$	Decrease reflects continuing shift to renewable energy use in our portfolio, supported by rooftop solar installed on many of our buildings. 2024 restated to align with updates to our methodology and estimations related to Scope 3 emissions.	R3, R4, O1
EPCs rated B or better (based on floorspace AUM)	$81\%$	$76\%$	Increase due to completions of energy-efficient developments and refurbishments.	R3, R4
EPCs rated below E (based on floorspace AUM)	$1\%$	$1\%$	Slight decrease reflecting disposals and developments.	R3
Portfolio with high environmental certification (BREEAM Very Good or better (or equivalent)) based on floorspace AUM	$56\%$	$51\%$	Completions of developments offset by disposals.	R4, R5, O1
Assets Risk Adaptation and Mitigation	Portfolio with high environmental certification (BREEAM Very Good or better (or equivalent) and/or EPC certificate of B or better (percentage of value at share) (‘Green portfolio’)	$£11.5 \text{ billion } (70\%)$	$£10.0 \text{ billion } (65\%)$	Comprising wholly owned assets of $£9.0 \text{ billion } (2024: £7.9 \text{ billion})$ and assets held in joint ventures of $£2.5 \text{ billion}$ at share $(2024: £2.1 \text{ billion})$.	R5
Expenditures GHG Emissions	Visibility of customer emissions	Percentage of portfolio space $(\text{sq}\text{ m}$ of AUM) for which we have energy data	$91\%$	$87\%$	Many customers are not obliged to disclose energy use data to us. Without it, however, we cannot accurately measure our corporate and customer emissions (approximately half of our total Scope 1–3 emissions).	R1, R3, R4
Corporate and customer emissions (Scope 1, 2 and 3 – Downstream Leased Assets)	Tonnes $\text{CO}_2\text{-equivalent}$ emissions (science-based target)	The SBTi launched a new ‘Buildings’ framework in 2024; as our existing targets were due for renewal, we have used this framework to set new net-zero targets in Corporate and Customer Carbon emissions intensity and Embodied Carbon emissions intensity, replacing our previous targets in absolute emissions.	$214,615$	$239,779$	Incorporates Scope 1, 2 (market-based) and 3 (Downstream Leased Assets) emissions from the portfolio. The decrease reflects continuing shift to renewal energy use in our portfolio, supported by rooftop solar installed on many of our buildings. 2024 restated to align with updates to our methodology and estimations related to Scope 3 emissions.	R3, R4, R5, O1, O3
Financial Climate-related Metric	2025	2024	Narrative	Associated risk or opportunity
Embodied carbon intensity (based on Scope 3 Capital Goods)	$\text{kg}\text{CO}_2\text{e}/\text{sq}\text{ m}$ of completed space (science-based target)	2023 baseline: $331 \text{ kg}\text{CO}_2\text{e}/\text{sq}\text{ m}$	2034 target: $139 \text{ kg}\text{CO}_2\text{e}/\text{sq}\text{ m}$ (-58% vs baseline)	2050 target: net-zero	$280$	$318$	This figure incorporates the results from $238,474 \text{ sq}\text{ m}$ of space completed in 2025.	R3, R4
Internal carbon price (£ per tonne)	$£100$	$£100$	A carbon price is applied to capex relating to environmental improvements, particularly when considering the returns from retrofitting solar PV to existing assets.	R3, R4, O1
Revenues Energy/Fuel	On-site solar power capacity (MW)	$145.1$	$123.1$	$22 \text{ MW}$ capacity added during the calendar year $(2024: 64 \text{ MW})$ as part of new development completions, retrofitting PV panels to existing buildings and acquisitions of buildings with PV.	R3, R4, O1
Percentage of visible corporate and customer electricity use from certified renewable sources	$82\%$	$76\%$	Based on the portfolio for which we have visibility, and using estimates and assumptions on the residual element. This figure may change as we increase the visibility of our customers’ energy use. We are working with our customers to improve this metric through increased use of certified renewable energy tariffs and renewable energy generated on-site. $(2024$ restated for updated assumptions on data centre energy use.)	R3, O1

Financial Climate-related Metric	2025	2024	Narrative	Associated risk or opportunity

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Climate-related financial disclosures continued

Embodied carbon intensity (based on Scope 3 Capital Goods)

$\text{kg}\text{CO}_2\text{e}/\text{sq}\text{ m}$ of completed space (science-based target)

2023 baseline: $331 \text{ kg}\text{CO}_2\text{e}/\text{sq}\text{ m}$
2034 target: $139 \text{ kg}\text{CO}_2\text{e}/\text{sq}\text{ m}$ (-58% vs baseline)
2050 target: net-zero

$280$
$318$

This figure incorporates the results from $238,474 \text{ sq}\text{ m}$ of space completed in 2025. R3, R4

Internal carbon price (£ per tonne)

$£100$
$£100$

A carbon price is applied to capex relating to environmental improvements, particularly when considering the returns from retrofitting solar PV to existing assets. R3, R4, O1

Revenues Energy/Fuel

On-site solar power capacity (MW)

$145.1$
$123.1$

$22 \text{ MW}$ capacity added during the calendar year $(2024: 64 \text{ MW})$ as part of new development completions, retrofitting PV panels to existing buildings and acquisitions of buildings with PV. R3, R4, O1

Percentage of visible corporate and customer electricity use from certified renewable sources

$82\%$
$76\%$

Based on the portfolio for which we have visibility, and using estimates and assumptions on the residual element. This figure may change as we increase the visibility of our customers’ energy use. We are working with our customers to improve this metric through increased use of certified renewable energy tariffs and renewable energy generated on-site. $(2024$ restated for updated assumptions on data centre energy use.) R3, O1

Financial Climate-related Metric	2025	2024	Narrative	Associated risk or opportunity

55 | SEGRO plc Annual Report & Accounts 2025 Overview Strategic Report Governance Financial Statements Further Information

Effective risk management

Risk management ensures a structured approach to decision making, reducing the uncertainty surrounding expected outcomes. This is balanced against the objective of creating and protecting value for our stakeholders. SEGRO recognises that an effective, proportionate, dependable, and integrated risk management process is essential for a successful strategy, decision making, and business model. The framework ensures that SEGRO can maintain resilience amidst ongoing macroeconomic uncertainty, as well as ensuring that we are best positioned to benefit from future market improvement.

Annual risk management update

Throughout the year, SEGRO’s Board and relevant Committees have continued to oversee our response to external and internal risks. The Group Risk Committee convened three times during 2025 to supervise the risk management function on behalf of the Executive Committee. Following Soumen Das’s departure from SEGRO as Chief Financial Officer, I have taken his position on the Group Risk Committee as Chair. I have joined the existing team of knowledgeable and experienced senior management who are well established on the Committee.

SEGRO’s principal risks have remained relatively consistent. We regularly review our investment strategy and carefully manage our balance sheet to protect SEGRO from ongoing economic uncertainty. This year we have considered potential new risks arising out of SEGRO’s joint venture with Pure Data Centres Group (Pure DC) and the development of a fully fitted data centre. Various elements of this risk overlap with risks we already consider, for example, construction execution, power and the wider portfolio strategy. SEGRO has also been monitoring the rapidly developing cyber security environment and increasingly sophisticated, high-profile attacks. In light of these developments, we have reviewed our assessment of supplier exposure, the efficacy of our controls and the appropriateness of our response plans including strengthening contracted cyber specialist resources. We have also started using Artificial Intelligence (AI) as part of our wider defence toolset to help defend against attacks by cyber criminals who themselves may be making use of it.

Emerging risks

In addition to monitoring our principal risks, we actively identify, monitor and formally review emerging risks. These risks include a variety of potential longer-term developments relating to such areas as customer trends, planning policy, technology developments, energy and power, climate change-related extreme weather events and corporate growth. Two examples of what we consider are: Technology and AI as a disruptor and opportunity. The full impact of AI and its application to most businesses is impossible to fully assess whilst it currently evolves at such pace.We believe that peers could gain a competitive advantage through earlier or better use of AI on their platform. The continued adoption of AI by our customers may affect customer demand for our assets. It also creates a significant opportunity for our data centre strategy. Increased geopolitical instability. The volatile geopolitical landscape may cause significant disruption following rising protectionism, heightened political tensions leading to conflict and/or strategic competition between major powers. This might create long-term uncertainty and affect global trade, energy security, supply chains and regulatory landscapes. Overall, despite these concerns SEGRO remains agile and alert in seeking to mitigate the impacts of such risks on the business. Susanne Schroeter, Chief Financial Officer 56 | SEGRO plc Annual Report & Accounts 2025 Overview Strategic Report Governance Financial Statements Further Information Managing risk DPD, SEGRO Park Stryków, Poland Our risk appetite Risk appetite is integrated within SEGRO’s risk management process; we aim to keep controllable risks within our appetite. Our risk appetite drives business decisions and strategic planning across all parts of the organisation. The appetite is reviewed and approved by the Board annually and it defines tolerances and targets for key metrics, as well as consisting of qualitative descriptions. Risk appetites vary by risk type and adapt over time but, overall, the Group maintains a low-risk appetite to support long-term value. We ensure that we proactively and continuously monitor risk to enable us to respond to changes in the risk environment and promptly make appropriate adjustments.”

Property risk SEGRO seeks outperformance from its portfolio and therefore recognises that it must accept a balanced level of property risk. The portfolio targets stable, low-risk income and resilience during downturns, supported by appropriate land holdings and a diverse occupier base across different sectors, with strong covenants. We generally avoid over-exposure to specialised properties in our industrial and logistics portfolio and encourage customers to support SEGRO in operating in a low carbon way.

Financial risk The Group adopts a conservative approach to financial risk, particularly regarding solvency and gearing covenant breaches. As a REIT, we focus on ensuring stable progression of earnings and dividends in the long term, as well as growth in net asset value. We recognise that an appetite for low leverage can help to mitigate exposure to market-driven fluctuations in asset valuation and consequential impact on net asset value.

Corporate risk The Group has a very low appetite for risks that could damage its strong reputation with its stakeholders, including customers, shareholders, regulators, its people, business partners, suppliers, lenders, and the communities where it operates. We therefore prioritise legal compliance with relevant laws, accurate and timely reporting, the health and safety of all stakeholders, environmental responsibility, ethical conduct, business continuity, and contributing positively to our local communities. 57 | SEGRO plc Annual Report & Accounts 2025 Overview Strategic Report Governance Financial Statements Further Information Managing risk continued

We recognise that for a risk management process to be a success it needs to be embedded in the business and well understood by everyone involved in the process.”

Our integrated and robust approach to risk management

The Board undertakes a comprehensive evaluation of the Group’s principal risks, with formal reviews conducted at least twice a year. Furthermore, the Board completes an annual review and approval of the Group’s risk appetite and risk management policy. The Audit Committee evaluates the effectiveness of the Group’s risk process. The risk management process identifies, evaluates, responds to, and records key risks to the Group’s strategy and objectives. Internal risks are closely monitored to ensure that effective controls are in place and functioning as intended. The Board recognises its limited control over external risks like global events, macroeconomic trends, and regulations, but continues to assess their impact on the business. The risk process supports appropriate mitigation measures, but acknowledges absolute effectiveness is often unlikely to be feasible. Continuous oversight ensures SEGRO monitors and adapts to changing risks, whether that arises from development of an existing principal risk or a new emerging risk.

The most significant risks are detailed in the Group Risk Register and for each risk, there are controls to help manage them effectively, as well as an assessment of the inherent (before controls) and residual (after controls) states. Risk impact is measured against our risk appetite, classifying each principal risk as below appetite, within appetite, tolerable, or intolerable. We also include a risk velocity for the most significant risks (i.e. how long it might take for an unmitigated risk to reach an intolerable impact). A Key Risk Indicator (KRI) dashboard is regularly compiled and monitored to track actual and forecast performance against our risk appetite metrics. The KRIs are essential to the Group’s strategy, making sure we stay on track with our objectives. This transparent overview of risk status is reviewed by relevant monitoring Committees and helps SEGRO to make informed decisions. The Group Risk Register serves as a key input to determine priorities within the Group’s internal audit assurance programme. Furthermore, management’s annual self-assessment of internal control effectiveness is aligned to the risks documented in the register.

Risk governance

The first line of defence is provided by the part of the business that has primary responsibility to own and manage the risk. They should be close to and understand the risk thoroughly. It consists of Executive Risk Owners who are all members of the Executive Committee and oversee their risks while assigning accountability to the Risk Managers. The Risk Managers are therefore responsible for the assessment of the risk as well as the design, implementation and operation of controls, related to the applicable risk appetite. Both the Risk Manager and Executive Risk Owner for each risk review, identify and assess the existing and emerging risks, together with the Risk Management Function, at least twice a year.

The second line of defence is provided by the Committee that monitors the risk. Also at this level is the Executive Committee which oversees execution of risk management across the Group and delegates responsibility to the Group Risk Committee. The Risk Management Function is overseen by the Group Risk Committee and this function maintains the Group Risk Register, manages risk documents, supports the first line of defence and provides quality assurance.

The third line of defence is provided by internal audit which oversees the effectiveness of these processes on behalf of the Board. The Audit Committee gives objective and independent assurance on whether the first and second lines of defence are operating effectively, and oversees the internal audit programme with consideration of the Group Risk Register. Additional details regarding adherence to the risk management provisions of the UK Corporate Governance Code are available in the internal controls and risk management section of the Audit Committee Report on page 105. 58 | SEGRO plc Annual Report & Accounts 2025 Overview Strategic Report Governance Financial Statements Further Information Managing risk continued

Risk management process

Risk management process
Board	The Board has overall responsibility for ensuring that risk is effectively managed across the Group
Ä Audit Committee	Monitors effectiveness of the risk management process
Ä The first line of defence	Executive Risk Owners, Risk Managers
Ä The second line of defence	Monitoring Committees, Executive Committee, Group Risk Committee (including Risk Management Function)
Ä The third line of defence	Internal Audit

Principal risks and uncertainties

Principal risks have the potential to materially impact SEGRO’s business. These risks are classified as ‘principal’ based on their potential to intolerably exceed the Group's risk appetite (considering both inherent and residual states) and to have a material impact. Principal risks are regularly reviewed and updated to reflect changing knowledge, understanding, and risk assessment. Risks that may be unknown at present, or that are currently considered immaterial and therefore not detailed here, may become material in the future. SEGRO documents emerging risks which have not yet fully developed, acknowledging that the impact, likelihood, and timing of these risks is difficult to quantify. SEGRO continuously monitors emerging risks and evaluates whether an emerging risk should be reclassified as a principal risk. The principal risks currently identified by the Group are detailed on the following pages. Each risk description highlights potential areas of impact on the Group and an assessment of the residual risk. It also specifies the relevant time horizon and probability of the risk, the key mitigation and management activities, the oversight Committees which act as second lines of defence, any changes in risk levels during the year, and links to additional information within this Annual Report. A summary of the Group’s principal risks is provided below. Each risk includes commentary on current year activity. Whilst each risk has been reviewed on multiple occasions throughout the year there have been no significant changes to the definition or assessment of the risks, compared to those outlined in the 2024 Annual Report.

1.# Macroeconomic impact on market cycle
Change in 2025: No change
Probability: Low High
Impact: Low High

The property market is cyclical in nature and, therefore, there is a risk that the Group may misinterpret or fail to react appropriately to changes in the property market, cost of finance or broader macroeconomic and geopolitical conditions. This misjudgement could lead to the adoption of an inappropriate strategy or hinder the execution of an existing strategy, ultimately affecting property performance and shareholder value.

Mitigations
The Investment Committee, Executive Committee, and ultimately the Board continue to monitor the property market cycle and wider macroeconomic environment. Multiple, diverse investment and occupier market intelligence is regularly reviewed and considered, both from internal ‘on-the-ground’ sources and independent external sources. The Group’s investment and divestment stance is adjusted in response to both current and anticipated market conditions. The Investment Committee assesses both upside and downside scenarios to evaluate the impact of varying market conditions and to inform our portfolio strategy (see separate principal risk).

Current year activity
The continued uncertain economic backdrop and elevated geopolitical risk were reflected in parallelled uncertainty in the occupational and investment market in 2025. In light of these conditions, we have continued to perform thorough economic outlook assessments. We have mitigated our corporate risk through an appropriate financing strategy (see other principal risk) and ensured that the consequences for our portfolio strategy are appropriately aligned (see separate principal risk). The aim of these actions is to enable us to withstand economic shocks and take advantage of market opportunities.

Link to strategy: Disciplined capital allocation, Efficient capital and corporate structure
Overseen by: Executive Committee, Investment Committee
The market outlook is detailed in the Chief Executive’s statement: page 12

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Principal risks Strategy key Responsible SEGRO

2. Portfolio strategy and execution

Change in 2025: No change
Probability: Low High
Impact: Low High

SEGRO could have an inappropriate portfolio strategy or fail to adequately execute its strategy, meaning the Group’s total property and/or shareholder returns could underperform in absolute or relative terms. This could be caused by:
* incorrect or ineffective capital allocation decisions;
* poor or incorrect market or asset level assumptions (see separate principal risk);
* inaccurate modelling or forecasting;
* lack of appropriate procedures and inadequate due diligence resulting in lengthy, onerous or costly transactions; and/or
* failure of due diligence.

Mitigations
The Board regularly reviews the Group’s portfolio strategy to consider the desired shape of the portfolio. The portfolio strategy should align with the Group’s overall strategy and adapt to market conditions. Major capital investment and disposal decisions require Board approval. Policies are in place to govern investment activity. The Group’s approach to capital allocation is informed by independent external assessments of market conditions and forecasts. Locally based property, investment and operational teams (overseen by the Managing Directors and ultimately the Chief Executive Officer) provide market intelligence and utilise their networks to assess risks. SEGRO aims to optimally position its portfolio in terms of location and asset type. The annual asset planning and budgeting process provides a bottom-up assessment of the performance and potential for all existing assets, helping to determine where to invest capital and to identify assets for disposal. Investment hurdle rates are regularly reappraised in light of estimates of our weighted average cost of capital and assessment of market risks.

Current year activity
The Group has maintained a disciplined and responsive approach to portfolio management, as outlined in the Performance review section on page 28. We have continued to review our portfolio strategy, including data centre exposure, and ensured we have an appropriate investment stance and hurdle rates to deliver resilience against macroeconomic uncertainty. We have a large data centre land and power banks. We have considered how to ensure that our strategy for these opportunities suitable manages the associated risks associated, whilst remaining consistent with the Group’s Investment stance.

Link to strategy: Disciplined capital allocation, Operational excellence
Overseen by: Executive Committee, Investment Committee
Performance review: page 28

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Principal risks continued Strategy key Responsible SEGRO

3. Major event/business disruption

Change in 2025: No change
Probability: Low High
Impact: Low High

There may be unexpected global, national or regional events which may include, but are not limited to: a global financial crisis, pandemic or other healthcare failure, power and/or water shortages, weather-related event, armed conflict or civil unrest, acts of terrorism and/or cyber breach (either malicious or accidental) or other IT disruption. Events may be singular or cumulative, and lead to business disruption or impairment of the operating environment. This could result in sustained asset value or revenue damage, solvency or covenant stress, liquidity or business continuity challenges.

Mitigations
The Group ensures its resilience against a global event and business disruption through its financing strategy (see separate principal risk), diverse portfolio strategy (see separate principal risk) and organisational resilience of the workforce. Where appropriate, relevant insurance is procured and horizon scans help identify potential upcoming risk areas. The assessment of going concern and viability is conducted through a detailed, bottom-up, Medium-Term planning process including a business stress test and downside scenarios. Specialist and accredited employees, ensure the resilience and security of our technology through controls, training, testing, and audits. These activities are overseen by our Digital Board which is the committee responsible for managing technology-related risks. We maintain robust processes and controls for business continuity and IT disaster recovery. Additionally, we use third-party experts who supplement our internal expertise when testing our resilience to cyber attacks and are ready to support us, as required, during the management of a crisis.

Current year activity
In 2025, geopolitical instability continued, and therefore the Group’s operations and stakeholders are still experiencing uncertainty. The Group maintained its robust financing and portfolio strategy, ensuring flexibility and preparedness for major events and business disruptions. The Board and other Committees remained vigilant and actively managed risk responses as situations evolved. The business continuity plan continued to operate successfully with a major incident management plan feeding into individual local and incident-specific management plans. The annual asset planning process reviewed any areas of weakness in the portfolio and had associated plans to rectify them. Our cyber breach response plan was reviewed and enhanced during 2025. We continue regular training for, and testing of, employees including phishing tests and education on AI chatbots.

Link to strategy: Operational excellence, Efficient capital and corporate structure
Overseen by: Executive Committee, Digital Board
The market outlook is detailed in the Chief Executive’s statement: page 12

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Principal risks continued Strategy key Responsible SEGRO

4. Health and safety

Change in 2025: No change
Probability: Low High
Impact: Low High

A health and safety incident may occur which involves harm to individuals or loss of life. This may be associated with the failure of Health and Safety Management Systems, failure of a building or other physical asset, or negligence of a third party. Furthermore, the Group may breach relevant legislation or fail to provide suitable employee support. The consequences may be a negative impact on employees and/or other stakeholders, litigation, fines, and serious reputational damage.

Mitigations
A Health and Safety Policy and Management System are in place, and best practice is reviewed with the Health and Safety Working Group. The Health and Safety Management System includes specific mandatory procedures covering operational and work activities. The working group continuously monitors health and safety practices, including incidents, inspections, and training across the business. Legal guidance and additional support are provided by local health and safety consultants and lawyers, who offer regulatory assurance alongside our internal expertise. We facilitate the sharing of best practice across the industry though our forums with contractors. Construction monitoring activities continue with our contracted external consultants in each country through in-person development inspections, and SEGRO support, including contributions to training where requested. Incidents and inspections are tracked across the Group on the Health and Safety Management System. SEGRO maintains a zero-tolerance approach to poor health and safety practices and collaborates with health and safety consultants to enhance understanding and implementation of SEGRO’s requirements. We require all our suppliers to confirm that they meet our Health and Safety Standards.The Health and Safety Management System is supported by site inspections of existing and potential new assets, as part of proactive management, and development project inspections in line with SEGRO’s Health and Safety Construction Standards. In relation to our estates, many of which are accessed by both our customers and the public, we carefully consider the design, take action to mitigate risks and provide training to raise awareness.

Current year activity

We further developed our employee training programme, virtually and in person, with our training partners as well as issuing specific communications in relation to incidents or learnings. The health and safety team ensured that employees throughout the Group remained knowledgeable on current and future health and safety legislative changes. Routine monthly health and safety reporting to internal operational, technical and leadership teams, allows them, with the health and safety team, to respond to feedback and experiences, for example working at height activities, as well as reviewing specific practices and controls where required.

Link to strategy: Overseen by: Executive Committee, Joint Operating Group

62 | SEGRO plc Annual Report & Accounts 2025 Overview Strategic Report Governance Financial Statements Further Information

Principal risks continued

Strategy key	Responsible SEGRO	Disciplined capital allocation	Operational excellence	Efficient capital and corporate structure

5. Environmental sustainability and climate change

Change in 2025: No change
Probability: Low High
Impact: Low High

Failure to adequately anticipate and/or respond to the impact of climate change or lack of preparation for environmental risks and regulation. This could relate to:
* increased severity and unpredictability of weather-related events leading to more frequent damage to our buildings;
* changes in laws, regulations, policies, taxation, and reporting requirements; and/or
* changes in social attitudes and customer requirements whereby SEGRO is required to alter the design and build of properties and/or energy provision to buildings and/or commitments to climate change mitigation initiatives.

These risks may result in increased and/or unplanned financial costs to SEGRO, disruption to our customers, legal and/or regulatory non-compliance and negative reputational effects reduced demand for our properties and reduced competitiveness. Climate-related risks, their time horizon and their management and mitigation are detailed further on pages 52 and 53.

Mitigations

The Responsible SEGRO framework guides our efforts to reduce corporate, customer, and embodied carbon emissions. The sustainability team updates the Executive Committee most months and the Board annually. SEGRO’s Mandatory Sustainability Policy is one of the methods used to support continuous improvement of its environmental performance. It includes amongst other requirements, capturing energy consumption data, implementing building information modelling and conducting life cycle assessment for larger developments, adhering to minimum EPC standards for major refurbishments, and supporting the delivery of renewable energy. Our sustainability team supports the Group and local teams with data gathering and understanding legal and regulatory requirements, as well as sharing best practice and guidance from external advisers overseeing compliance with the Mandatory Sustainability Policy.

Current year activity

We have worked with a third-party to further develop our Net-Zero Transition Plan. The Executive Committee has approved a new set of GHG reduction targets which were validated by the SBTi July 2025. We are monitoring the development of the Energy Performance in Buildings Directive Recast 2024 which sets mandatory standards to improve energy efficiency in EU buildings and is currently applicable in our European markets. In 2025 our physical climate risk report was published and models the effects of the physical risks to our portfolio. During the year, we have established an ESG Governance Committee. The Committee formally meets at least four times a year to govern the Company’s ESG disclosure and reporting, and determine the process for setting ESG targets. Environmental considerations continued to be a key factor in asset acquisition and disposal decision making, developments and refurbishment decisions. See page 53 for details of further actions during 2025.

Link to strategy: Overseen by: Executive Committee, Joint Operating Group

Carbon climate related disclosures: page 48

63 | SEGRO plc Annual Report & Accounts 2025 Overview Strategic Report Governance Financial Statements Further Information

Principal risks continued

Strategy key	Responsible SEGRO	Disciplined capital allocation	Operational excellence	Efficient capital and corporate structure

6. Development and construction execution

Change in 2025: No change
Probability: Low High
Impact: Low High

SEGRO has an extensive current programme and future pipeline of developments. The strategy and execution of this brings the following risks:
* above-appetite exposure to non-income producing assets;
* below-appetite land holdings or development activity;
* inaccurate appraisal assumptions or poor acquisition due diligence;
* contractor default or poor performance;
* exposure to direct or indirect supply chain issues; and/or
* defective or deleterious materials in buildings.

This could result in increased costs and delays, reduced property returns, loss or limitations of building use, legal and/or regulatory non-compliance, reputational damage, fines and loss of shareholder confidence.

Mitigations

We closely monitor our exposure to non-income producing assets (including land, infrastructure, and speculative developments), especially when acquisition decisions are being made by the Investment Committee. The key stages of transactions require appropriate approvals as set out in our relevant policies.. Our development programme prioritises pre-let opportunities, particularly for our big box projects. We retain a high level of optionality in our future development programme, including land acquisition, and commitment to infrastructure and buildings. The risk of cost overruns or supply chain issues is, at least in part, mitigated by using our experienced development teams and a panel of trusted advisers and contractors, and typically using fixed price contracts where commercially appropriate to do so. Collaboration with contractors and ongoing communication helps to identify potential issues and possible solutions ahead of time. The risk of contractor default is reduced (but not entirely mitigated) by using a diverse group of companies, which we often have a long-standing relationship with, and which have been through a rigorous onboarding process including continuous close monitoring of their financial strength. Development and construction oversight is overseen internally by the Construction Steering Committee which includes senior managers responsible for the associated risks. The Construction Steering Committee coordinates with the health and safety team to manage challenges such as defective or deleterious materials in buildings. Internal forums with representatives from local technical development teams meet regularly to discuss best practice, and other relevant updates, reporting in to the Construction Steering Committee. Additionally, the partnership development team engages with stakeholders as part of SEGRO’s social responsibilities and supports planning processes. We have specialist internal expertise related to the commercial, technical and regulatory aspects of power to ensure we can secure the right power, in the right place, at the right time to meet our customers’ demands.

Current year activity

In light of the ongoing variability in market conditions, we have continued to monitor the value of land holdings, looking for optionality where possible. We have worked closely and in partnership with our contractors and are still making use of lump sum contracts while we closely monitor market intelligence. We have continued to investigate ways to drive best value from costs with input from our technical teams in the UK and Continental Europe, to ensure SEGRO remains competitive.

Link to strategy: Overseen by: Executive Committee, Investment Committee, Joint Operating Group

Development update: pages 33 and 34

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Principal risks continued

Strategy key	Responsible SEGRO	Disciplined capital allocation	Operational excellence	Efficient capital and corporate structure

7. Financing strategy

Change in 2025: No change
Probability: Low High
Impact: Low High

The Group could suffer an acute liquidity or solvency crisis caused by a failure in design or execution of its financing strategy. Such an event may be caused by a number of factors including:
* a failure to obtain debt or equity funding (for example, due to market disruption or rating downgrade);
* having an inappropriate debt structure (including leverage level, debt maturity, interest rate or currency exposure);
* poor forecasting;
* defaulting on loan agreements as a result of a breach of financial or other covenants; and/or
* counterparty default.

This could result in an inability for SEGRO to finance its strategy, and financial loss or financial distress.

Mitigations

The Treasury strategy is reviewed annually by the Board and the quarterly report is reviewed by the Executive Committee to ensure our key risk metrics are reviewed regularly. The Group’s financing strategy is consistent with the Group’s risk appetite, and overarching strategy. Our Group Treasury policy outlines key parameters and comprehensive controls to ensure effective execution of this strategy.The Group periodically assesses its financing needs based on opportunities and market conditions and maintains long-term relationships with various finance providers.

Current year activity
The Group holds a significant presence across various capital markets including euro bond, sterling bond and US private placements. SELP also holds a significant presence in the euro bond market. We continue to be advised by our lending banks and corporate brokers that we can currently access all debt markets. Liquidity remains strong due to the facilities put in place and there is substantial headroom against all our financial covenants. This positions us well financially in order to support activities aligned with our strategy. Furthermore, the Group continues to utilise fixed rate debt and pertinent derivatives to mitigate the risk of rising interest rates both currently and in the future.

Link to strategy: Disciplined capital allocation
Overseen by: Executive Committee
Financial review: page 39
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Overview Strategic Report Governance Financial Statements Further Information
Principal risks continued

Strategy key	Responsible SEGRO
Disciplined capital allocation	Operational excellence
Efficient capital and corporate structure

8. Legal, political and regulatory
Change in 2025: No change
Probability: Low High
Impact: Low High

The Group could fail to comply with laws, regulations, governance obligations or contractual obligations (including in respect of joint ventures), which are applicable now, or may become applicable in the future. Such failures could lead to material litigation, censure, penalties and fines, reputational damage, damage to relationships with stakeholders (including joint venture partners), and loss of stakeholder confidence. It could also impact the Company’s REIT and SIIC status and damage relationships with tax authorities. Compliance with future new laws and/or regulations introduced by governments in the countries in which the Company operates could potentially impact the business and its ability to achieve its strategic objectives. A lack of employee awareness of the obligations which apply to the Company, as well as its culture may lead to an increased risk of unethical, fraudulent and/or unacceptable behaviour including breaches of the Code of Business Conduct and Ethics and other key policies.

Mitigations
Internal legal and company secretariat experts continue to monitor developments in the legal, governance and regulatory environment, together with their colleagues in other specialist internal teams. The Company appoints well-reputed and high-quality external advisers to help it manage and monitor this further, with heads of functions regularly consulting with external advisers, attending relevant briefings, and participating as members of key industry bodies. Compliance with key contracts, including joint venture agreements, is handled by SEGRO’s legal team with support from specialist colleagues. Comprehensive governance and compliance structures, and other management manuals, are in place as required. The Company also closely monitors taxation regulations with advisers to promptly address any changes affecting the Group or its stakeholders. SEGRO’s experienced internal tax team manages the Group’s tax compliance, and REIT and SIIC compliance is reviewed bi-annually. All relevant employees are required to confirm compliance with the Code of Business Conduct and Ethics each year which includes a confirmation that they are not aware of any breaches or inappropriate behaviour having taken place. All new employees are required to carry out mandatory training on various aspects of the Code of Business Conduct and Ethics and targeted training is also delivered where appropriate. Our Supplier Code of Conduct also reinforces the high ethical behaviour we expect from suppliers and those working with us. The Executive Committee regularly considers legal and regulatory risks and significant legal and regulatory updates or changes are communicated to the Board and its Committees (as relevant), where they are further considered, as soon as is appropriate.

Current year activity
The legal and regulatory environment continues to be dynamic with increasing laws and regulations, together with an ongoing strong stance taken on enforcement by governments and regulators. Tax risk also remains high due to changes in governmental policy. SEGRO continues to complete actual and forecast compliance tests for REIT and SIIC compliance. A tougher economic environment increases the risk of unethical behaviour. We have robust processes and procedures in place to mitigate against this. We continue to raise awareness of the obligations of employees set out in the Code of Business Conduct and Ethics, as well as our suppliers through our supplier screening programme, supplier interviews and the Supplier Code of Conduct which further reinforces the behaviour expected from suppliers and those working for the Company. Further detail on the Code of Business Conduct and Ethics, which was updated during the year, is on page 80 of the Governance Report.

Link to strategy: Efficient capital and corporate structure
Overseen by: Executive Committee
Our governance framework: page 81
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Overview Strategic Report Governance Financial Statements Further Information
Principal risks continued

Strategy key	Responsible SEGRO
Disciplined capital allocation	Operational excellence
Efficient capital and corporate structure

9. People and talent
Change in 2025: No change
Probability: Low High
Impact: Low High

SEGRO could fail to deliver its strategy because of:
* a failure to attract, retain, or develop the diverse talent needed;
* insufficient leadership strength or succession depth for critical roles;
* declines in engagement or cultural alignment that could impact performance; and/or
* organisational structures or skills that do not evolve quickly enough to support strategic priorities.

This could be associated with inappropriate or ineffective people policies and processes and could lead to a less productive workforce, lower performance, higher employee turnover, weak culture, inefficient cost base or unclear structure, responsibilities and roles.

Mitigations
SEGRO has a strong people and culture framework designed to build capacity, support engagement and maintain organisational agility. Our forward-looking organisational design and capability reviews ensure teams are appropriately structured and skilled. Regular reviews by the Executive Committee and the Board creates strong pipelines for critical roles and effectively manages key person risk. Continuous development, succession and retention planning, is supported by active performance management and engagement insights. Competitive, market-tested reward structures and flexible incentive tools help attract and retain high-quality talent, including annual benchmarking of compensation with independent third-party advisers, overseen by the Remuneration Committee. Ongoing programmes strengthen our inclusive, Values-led culture and support high levels of employee engagement.

Current year activity
During 2025, we maintained organisational stability, including leadership transitions such as the appointment of a new CFO, with voluntary attrition remaining low. We continued to invest in critical capabilities, adding additional strength in data centres, energy and digital, ensuring we are well positioned to deliver our strategy. Dynamic and ongoing reviews of our organisational design and people capabilities ensure resources align with business needs and cost efficiency. We completed performance, development, succession and retention planning, supported by employee engagement surveys to monitor sentiment and inform action, ensuring that we are nurturing our internal talent and continuing to strengthen our culture and organisational effectiveness.

Link to strategy: Nurturing talent section
Overseen by: Executive Committee
page 25
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Overview Strategic Report Governance Financial Statements Further Information
Principal risks continued

Strategy key	Responsible SEGRO
Disciplined capital allocation	Operational excellence
Efficient capital and corporate structure

10. Operational delivery
Change in 2025: No change
Probability: Low High
Impact: Low High

The Group may experience operational failures such as:
* poor customer insight and retention or increased level of customer defaults;
* fraud, error or disruption of treasury operations;
* inaccurate, misleading or delayed valuation or tax reporting;
* inaccurate, unavailable or incomplete data including lease data and/or;
* errors in lease terms or execution.

These issues could lead to various adverse effects, including weaker customer demand and relationships, reputational damage, regulatory censure or fines, additional and unplanned costs, reduced income and property valuation, illiquidity, misinformed strategic decisions and missed opportunities. Overall, this could increase SEGRO’s costs, reduce competitiveness and damage its reputation.

Mitigations
The Group is dedicated to maintaining a high standard of Operational excellence. The Executive Committee and Joint Operating Group consistently monitor various risks associated with property management, organisational effectiveness, and customer relations. Each operational area is supervised by a skilled central team and often also by regional team members. We use reputable external experts to advise us and receive market insights. We maintain close relationships with our customers to understand their needs and their risks including relating to covenant reviews. Our internal teams are also supported by bespoke technology tools, which are usually internal to govern the process associated with operational delivery.We ensure that our customer base is diverse and wherever possible, possesses financial stability, which we monitor closely along with customer concentration metrics. We undertake an annual customer satisfaction survey and conduct interviews with senior customer stakeholders to facilitate the identification of key customer requirements.

Current year activity
We continue to prioritise close engagement with our customers and especially focus on customer activities, as well as continually assessing the risks associated with customer concentration and monitoring with the use of updated reporting which is accessible Group-wide. The approval for leases, as required in the leasing policy, is now integrated into SEGRO’s automated letting recommendation tool. The SEGRO Asset Management Application, is a workflow tool to enhance oversight and monitoring of leases. It is now in place in all regions and helps teams to review and manage lease events. These tools increase efficiency, consistency and control. The Group valuation is currently undertaken bi-annually by CBRE, which is considered reputable and independent. Following the RICS changes to mandatory rotation rules in the UK, we retendered the UK valuation during the year, and approved the appointment of Cushman & Wakefield as SEGRO’s UK valuers with effect from the June 2026 half-year valuation. CBRE remains the valuer of the Continental European portfolio.

Link to strategy: Overseen by: Executive Committee, Joint Operating Group
Performance review: page 28

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Principal risks continued Strategy key Responsible SEGRO Disciplined capital allocation Operational excellence Efficient capital and corporate structure Governance

Governance
Governance Report 69
Chair’s introduction to governance 70
Governance at a glance 72
Board leadership and Company purpose 74
Division of responsibilities 81
Section 172(1) statement 82
Our stakeholders 84
Board performance review 90
Nomination Committee Report 92
Audit Committee Report 98
Directors’ Remuneration Report 106
Directors’ Report 125
Statement of Directors’ responsibilities in respect of Financial Statements 127

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SEGRO Logistics Park Northampton, Management Suite, UK

Delivering our strategy
As Chair of SEGRO, I am pleased to introduce our Board’s Governance Report for 2025. Our well-established governance framework remains robust and continues to underpin the Board’s decisions that drive the Company’s long-term sustainable success.

Andy Harrison, Chair

Governance and our strategy
2025 saw the Company operating in a complex and evolving external environment, shaped by macro and geopolitical uncertainty. These conditions informed many of the Board’s discussions during the year, with careful consideration given to their implications for the business, our stakeholders and the Company’s long-term positioning. Against this complicated backdrop, the Company has delivered a year of successful operational and financial performance. This outcome is a testament to the strength and resilience of our portfolio, the clarity of our strategic direction and the dedication of our talented people. Our robust governance framework supported the Board’s oversight throughout the year, ensuring informed decisions were made with a view to driving the long-term sustainable success of the Company. As well as the ongoing advice the Board provided on the Company’s strategy, and its governance oversight, you can read about some of the key decisions made in 2025 on page 77.

Board skills
During the period, and following feedback given during the 2024 external Board performance review, we approved an updated Board skills matrix to ensure the Board has an appropriate balance of skills to operate effectively now and in the future. You can read about the updated Board skills matrix on page 94.

Internal Board performance review
The internal Board performance review carried out in 2025 confirmed that the Board and its Committees continued to operate effectively. You can find further detail on the review on pages 90 and 91.

Nurturing talent
Succession planning and talent development for the Board and senior management, to ensure that there remains a strong leadership pipeline, continue to be key areas of focus for the Board. During the year, the Board spent time reviewing the people strategy for retaining, developing and attracting the best talent across the organisation and driving diversity, inclusion and equal opportunity within the business. Further information on succession planning can be found in the Nomination Committee Report on pages 92, 93 and 95.

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Chair’s introduction to governance

Nurturing talent continued
As part of our wider stakeholder engagement programme, the Non-Executive Directors once again held a number of sessions with a cross- section of employees from across the business to gain a first-hand insight into the issues that matter most to our people.

Board changes
Susanne Schroeter joined the Company as an Executive Director and Chief Financial Officer on 1 December 2025. She brings with her a wealth of financial and pan-European business expertise, adding further perspective to Board discussions. Please join me in giving her a warm welcome. You can read more about the process to appoint Susanne on page 97. Susanne succeeds Soumen Das, who stepped down from his role as an Executive Director and Chief Financial Officer on 31 December 2025. On behalf of the Board, I would like to thank Soumen for his commitment and valuable contribution to both the Company and the Board throughout his time at SEGRO. As announced on 9 February 2026, I am also pleased to welcome Louisa Burdett as a Non-Executive Director from 1 May 2026. Louisa has worked in a number of senior financial roles throughout her career. Her extensive financial and risk management experience will be of benefit to the Company and I, and my Board colleagues, are looking forward to working with her.

Other stakeholder engagement
The Board remains committed to balancing the interests of all SEGRO stakeholders in its decision making and acknowledges its responsibilities to the wider community. You can find our Section 172 statement, along with details on how the Board interacts with each of our six stakeholder groups, on pages 82 to 89. Each year we invite our larger shareholders to meet with myself, the Senior Independent Director, and/or the Committee Chairs. In 2025, I welcomed the opportunity to engage in productive discussions with some of these shareholders, gaining valuable insight into the matters most important to them and their perspectives on SEGRO. As you can read further about in the Directors’ Remuneration Report on page 106 to 124, Simon Fraser, our Remuneration Committee Chair, wrote to our larger shareholders towards the end of 2025 to explain certain changes made to our Long Term Incentive Plan (LTIP) for 2026. He welcomed the opportunity to engage with shareholders on this topic. As always, we will continue to foster open and constructive dialogue with our shareholders throughout 2026, ensuring that any feedback is shared with the Board as a whole and considered in decision making.

Annual General Meeting (AGM)
On behalf of the Board, I would like to extend my thanks to those shareholders who attended the AGM in April 2025, where our Chief Executive delivered a presentation on SEGRO’s performance in 2024 and the early part of 2025. All shareholders received communications for the AGM at least 20 working days in advance of the meeting and were invited to ask questions, either in the room or by email ahead of the meeting. The other Directors and I were also available to meet with attendees informally, both before and after the meeting, and we look forward to doing so again at this year’s AGM which will take place on 23 April 2026 at RSA House, where all Directors will stand for election or re-election. The Company proposes separate resolutions on each substantially separate issue, with voting conducted by a poll. At the 2025 AGM, 82 per cent of the issued share capital voted (2024: 80 per cent) and all the proposed resolutions were passed. Following the meeting, the results of votes lodged for and against each resolution were announced to the London Stock Exchange and published on our website.

Thank you
Finally, I would like to express my thanks to all our employees for their dedication and efforts over the past year. I am equally thankful to my fellow Board members for their insight, stewardship, and ongoing support of SEGRO.

Andy Harrison
Chair

Statement of compliance
The UK Corporate Governance Code 2024 (the Code) is the key governance guidance to which we referred during the financial year to 31 December 2025. It can be found in full on the Financial Reporting Council’s (FRC) website at www.frc.org.uk. The Board considers that, throughout the year, it has complied with the Provisions of the Code in all respects. Details on how we have complied with the Provisions and applied the Principles as set out in the Code are outlined in this Annual Report.

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Chair’s introduction to governance continued

SEGRO Annual General Meeting, 2025, UK

At a glance
The Board’s composition supports effective leadership and independent oversight, with a strong gender balance, mix of backgrounds and a balanced range of tenures; combining continuity with fresh perspective to support robust challenge, informed decision making and long-term sustainable success.# Board composition

• The Directors collectively have a complementary mix of skills, experience and sector knowledge to support the Company’s long-term strategy.
• The Board’s composition reflects an appropriate balance between continuity and refreshment, with a range of tenures that support both institutional knowledge and independent challenge. Director tenure is kept under regular review as part of the Board’s succession planning and annual Board performance review.
• The Board benefits from a strong level of gender balance, supporting a diversity of perspectives and inclusive decision making. The Company remains committed to maintaining appropriate balance over time through its approach to succession planning and Board refreshment.

Strategy key	Responsible SEGRO
Disciplined capital allocation
Operational excellence
Efficient capital and corporate structure

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Governance at a glance

	l	Male	4
Gender		l	Female
Independence (excluding the Chair)	l	Executive Directors	2
	l	Independent Non-Executive Directors	6
Nationality	l	British	8
	l	Non-British	1
Ethnicity	l	White	8
	l	Asian/AsianBritish	1
Non-Executive Directors’ tenure	l	1st term (0–3 years)	1
	l	2nd term (3–6 years)	3
	l	3rd term (6–9 years)	3

Our Board composition 1

All Directors appear in more than one category, and were marked on a grading scale from zero to three for each category. The maximum score for each category is 27.

Skills that enablelastingimpact	Link to strategy
FTSE Listed Experience	23
Customer (eg. commercial experience from another industry)	15
Commercial Real Estate Investment or Management	14
International Business/Markets	22
Finance/Accounting/Audit	19
Corporate Finance/M&A/Investment Banking	17
Investment/Capital Allocation	20
Remuneration	19
Digital/Data/Cyber Security	11
Chairing/Committee Chair	22

*1 Figures do not include Soumen Das, who retired from the Board on 31 December 2025. Susanne Schroeter, who was appointed to the Board on 1 December 2025, is included.

Strategic Delivery, Extraordinary Outcomes

The Board Committees support our governance framework by providing focused oversight and independent challenge. Byapplying specialist expertise and rigorous scrutiny to key areas of thebusiness, they enhance theBoard’s decision making, strategic focus, and overalleffectiveness.

Nomination Committee

Our Nomination Committee ensures that we have a strong Board with a good balance of appropriate skills, experience and knowledge, delivering strong governance and effective succession planning. Read more in the Nomination Committee Report from page 92

Audit Committee

Our Audit Committee monitors the integrity of theFinancial Statements, reviews internal controls andrisk management systems, and oversees theinternal and external audit processes. Read more in the Audit Committee Report from page 98

Remuneration Committee

Our Remuneration Committee determines theRemuneration Policy which aims to incentivise strong performance whilstavoiding excessive risk taking. Read more in the Directors’ Remuneration Reportfrom page 106

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Governance at a glance continued

Board of Directors

Our Board is made up oftalented individuals, witha depth of commercial experience from a range ofindustries. This diversity ofthought helps create an effective and entrepreneurial Board as each member has a fresh perspective to bring to discussions, supporting our ambition ‘to be thebest property company’. Our Independent Non-Executive Directors bringindependent judgement and scrutiny tothe decisions taken by the Board. Theymonitor the success of management indelivering the agreed strategy within theriskappetite and control framework set bythe Board and hold the Executive Directors toaccount against these objectives.

Committee key
$\blacksquare$	Audit Committee member
$\blacksquare$	Nomination Committee member
$\blacksquare$	Remuneration Committee member
$\blacksquare$	Chair of Committee

See the Governance Framework on page 81 for the roles and responsibilities of the Chair, Chief Executive and Senior Independent Director.
* Denotes a publicly listed appointment.

Andy Harrison

Chair
Appointed: 1 April 2022 (Chair from 30June2022)

Skills and experience
Andy is an experienced Chair having held the positionat Dunelm Group plc for over seven years. Heis the former CEO of threelarge consumer-facing organisations, Whitbread, easyJet and RAC, which all have strong service offerings. His leadership, business understanding and insights have proven to be valuable additions to theboardroom.

Contribution to SEGRO’s long-term success
With over 35 years’ experience serving on the boards oflisted companies, during varying economic conditions, Andy is well qualified to lead SEGRO’s Board to deliver our ambitious plans for profitable growth. His Board colleagues consider him to be an effective Chair, with his thoughtful leadership style facilitating an open and collaborative environment amongst the Directors which, in turn, encourages constructive challenge anddebate.

David Sleath OBE

Chief Executive
Appointed: 1 January 2006 (Chief Executive from28April 2011; Group Finance Director from1January 2006 to28 April 2011)

Skills and experience
David has considerable board-level experience of listedcompanies and has extensive knowledge of the real estate, manufacturing anddistribution sectors and the Company. His financial and general management experience has helped lead the successful design andimplementation of the Company’s strategy duringhis tenure as Chief Executive. David is a Fellow of the Institute of Chartered Accountants in England and Wales.

Contribution to SEGRO’s long-term success
As Finance Director, David was a key member of the management team which navigated SEGRO through the global financial crisis, swiftly followed by the acquisition of Brixtonwhose London-centric portfolio complemented and enhanced SEGRO’s own. As Chief Executive, he initiated a wide-ranging strategic review in 2011 involving reshaping both the portfolio and the business to create a platform for long-term success, with a particular focus on performance, culture, and sustainability. This review laid the foundation for SEGRO to become the largestUK REIT by market capitalisation and a long standing constituent ofthe FTSE 100 index. Outside SEGRO, his role as a Non-Executive Director at RS Group plc provides valuable insight into the opportunities and challenges within a global, digitally-focused, distribution business, while his involvement with theEPRA Board and as a member of the BPF Policy Steering Group provides insights into, and the ability to influence, two important tradeassociations.

External appointments
* Senior Independent Non-Executive Director, RS Group plc*
* Board member, European Public Real EstateAssociation

Susanne Schroeter

Chief Financial Officer
Appointed: 1 December 2025

Skills and experience
Susanne has extensive finance experience and strongpan-European business expertise, with deep knowledge of financial markets, real estate, logistics, online retail, and digital transformation. She has held senior leadership roles across the UK, Germany, and Hong Kong, including Chief Financial Officer roles at sennder Technologies GmbH and LEG Immobilien. Shehas also held senior capital markets roles at Deutsche Bank, Morgan Stanley, and Standard Chartered, providing her with a deep understanding offinancing markets.

Contribution to SEGRO’s long-term success
Susanne brings a broad mix of financial, banking and capital markets expertise, combined with first hand experience in the real estate, logistics and online retailing sectors. Her insights gained from working withdata-driven companies within sectors that benefitfrom long-term structural trends supports the Company’s commitment to delivering sustainable, value-driven growth. This breadth of knowledge andexperience, together with her international perspective gained from senior roles in Europe andAsia, brings invaluable insight to Board discussionsand strategic decisions.

External appointments
* Non-Executive Director, Supervisory Board Member, Zalando SE*

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Board leadership and Company purpose

Mary Barnard

Independent Non-Executive Director
Appointed: 1 March 2019

Skills and experience
Mary has extensive commercial and general management experience and a deep understanding ofcustomer needs and trends through her various international roles in sales and marketing. She has a strong knowledge of the operation of the retail market and supply chain. In addition, she is currently leading amajor global digital transformation, including implementing new digital technologies, data strategy and AI capabilities, with insights which are of benefit to SEGRO.

Contribution to SEGRO’s long-term success
Mary has first-hand experience of international retail markets and customer trends, as well as rapidly evolving digital and data trends, and often shares her observations at Board meetings which helps to set the scene on global market sentiment. This provides useful insight into some of the key drivers which may impact our customers, allowing the Board to be mindful ofthem in its decision making.

External appointments
* Executive Vice President, Business Transformation, Mondelez International Inc*

Sue Clayton

Independent Non-Executive Director
Appointed: 1 June 2018

Skills and experience
Sue brings a wealth of property market knowledge tothe Board, with over 30 years of experience in property investment markets, having worked in the UKcommercial property market for her whole career.She is active in promoting diversity in the Real Estate industry including through her former role as the Chair of Women’s Network at CBRE and as co-founder of Real Estate Balance. Sue is a Fellow of the Royal Institute of Chartered Surveyors (FRICS).

Contribution to SEGRO’s long-term success

Sue’s real estate expertise brings an additional viewpoint to discussions on the industry, complementing the experience of the Executive Directors, and she also provides constructive challenge on the valuation of the property portfolio. Her passion for promoting diversity in the Real Estate industry echos the ambitions of the Company’s Nurturing talent framework and both the Board and the Nomination Committee benefit from her insights on this important topic.

External appointments

• Consultant, Blue Coast Capital

Carol Fairweather
Senior Independent Non-Executive Director
Appointed: 1 January 2018 (Senior Independent Non-Executive Director from 1 July 2023)

Skills and experience

Carol has recent and relevant finance experience and brings commercial knowledge to the Board. Her prior experience as Chief Financial Officer of the retailer Burberry Group is valuable to the Company in her understanding of retail and digital commerce trends. Carol is a Fellow of the Institute of Chartered Accountants in England and Wales.

Contribution to SEGRO’s long-term success

Carol’s financial expertise and understanding of the importance of good governance are integral to her role as Chair of the Audit Committee. Under her leadership, the Audit Committee provides comfort for our shareholders and other stakeholders by ensuring that there is robust oversight of the internal control framework and effective processes and controls in place to safeguard the integrity of the Financial Statements.

External appointments

• Non-Executive Director, Smurfit Westrock plc*

Simon Fraser
Independent Non-Executive Director
Appointed: 1 May 2021

Skills and experience

Simon has extensive knowledge of working on remuneration committees, having previously chaired the remuneration committees at Derwent London and Lancashire Holdings. He is a former investment banker with a wealth of financial experience, having spent the majority of his career with Bank of America Merrill Lynch where he was appointed Managing Director and Co-Head of the Corporate Broking division in 2004.

Contribution to SEGRO’s long-term success

Board discussions benefit from Simon’s extensive knowledge of financial markets and his perspective has been particularly useful during this period of macroeconomic challenge. He has led the Remuneration Committee in delivering an appropriate remuneration framework for Executive Directors and the wider workforce, which is designed with the views of our key stakeholders in mind, whilst also aligning with our Purpose and Values and aiming to promote the long-term sustainable success of the Company.

External appointments

• Senior Independent Non-Executive Director, St James’s Place plc*
• Chair, Grainger plc*

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Board leadership and Company purpose continued

Marcus Sperber
Independent Non-Executive Director
Appointed: 1 May 2024

Skills and experience

Having worked in the sector for over 30 years, Marcus brings with him vast experience of the real estate industry in both the UK and Continental Europe. He has held a number of senior executive roles throughout his career, including, most latterly, Managing Director and Head of Global Real Estate at BlackRock, and has served on a number of industry committees. He is the Founder of NorthCroft Capital, a real estate investment and advisory business, where he provides strategic business advice to institutional capital and real estate businesses. Marcus is a Fellow of the Royal Institution of Chartered Surveyors (FRICS).

Contribution to SEGRO’s long-term success

Throughout his career, Marcus has experienced first-hand the varying economic cycles of the property sector, and this, combined with his extensive real estate and investment knowledge more generally brings invaluable insight to Board discussions.

External appointments

• Founder, NorthCroft Capital
• Non-Executive Director, Cadillac Fairview Property Trust (the Canadian pension plan OTPP’s real estate arm)
• Non-Executive Director, Savills plc*
• Chair, Jewish Care (Registered Charity)

Linda Yueh CBE
Independent Non-Executive Director
Appointed: 1 May 2021

Skills and experience

Linda brings a broad range of skills to the Board, including robust commercial experience and a strong background in economics, as a Fellow in Economics at St Edmund Hall, Oxford University and Adjunct Professor of Economics at London Business School.

Contribution to SEGRO’s long-term success

Linda regularly draws on her wealth of knowledge of international markets, the macroeconomic context, and global, economic trends, both past and present, to shape Board discussions. Her perspective helps the Board to keep one eye on the horizon by applying learnings from past trends to the current environment. Through her role chairing a sustainability committee, she brings another perspective to the ESG considerations which are embedded in the Board’s decision making and help guide our Responsible SEGRO strategy.

External appointments

• Non-Executive Director, Standard Chartered PLC*
• Non-Executive Director, Rentokil Initial plc*
• Chair, Baillie Gifford’s The Schiehallion Fund Ltd*
• Advisory Board Member, Greene King Limited

Role of the Board

The Board’s primary responsibility is to provide overall leadership of the Company and to promote its long-term sustainable success, generating value for shareholders and contributing to wider society. It sets the Company’s strategic aims and ensures that it operates within a framework of prudent and effective controls which enable risks to be assessed and managed. It makes certain that the necessary financial and human resources are in place for the Company to meet its objectives. Further, the Board ensures that there is effective engagement with shareholders and other key stakeholders in order for the Directors to satisfy their obligations under section 172(1) of the Companies Act 2006, as detailed on page 82. The work of the Board complements, enhances and supports the work of the Executive Committee, in particular in respect of the Company’s culture, and its Purpose and Values.

Effective and efficient functioning of the Board

During 2025, there were seven scheduled Board meetings. Each Director has committed to attend all scheduled Board and Committee meetings, and would not do so only in exceptional circumstances. This is kept under review to ensure that Directors are fulfilling their commitments to the Company. Similarly, every effort is made by Directors to attend any ad hoc meetings or working sessions. On the rare occasion that a Director cannot attend a meeting they are still provided with the papers in advance of the meeting and are given an opportunity to discuss them with the Chair or Chief Executive. The Board has the flexibility to meet in person or virtually as the need arises, including on an ad hoc basis.

Attendance at scheduled Board and Committee meetings

Director	Board	Audit Committee	Nomination Committee	Remuneration Committee	AGM
Mary Barnard	7/7	4/4	3/3	1/1
Sue Clayton	7/7	3/3	4/4	3/3	1/1
Soumen Das 1	7/7				1/1
Carol Fairweather	7/7	3/3	4/4	3/3	1/1
Simon Fraser	7/7	3/3	4/4	3/3	1/1
Andy Harrison	7/7	4/4			1/1
Susanne Schroeter 2	1/1
David Sleath	7/7				1/1
Marcus Sperber	7/7				1/1
Linda Yueh	7/7	3/3	4/4	3/3	1/1
Total number of scheduled meetings in 2025	7	3	4	3	1

1 Soumen Das retired from the Board on 31 December 2025.
2 Susanne Schroeter was appointed to the Board on 1 December 2025 and has attended all relevant meetings since her appointment.

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Board leadership and Company purpose continued

Board site visit, Axis Park, UK

Board activities and decisions in 2025

As well as the more general strategic advice and governance oversight provided by the Board during 2025, and described throughout this Governance Report, some other areas of focus during the year included:

Strategy
* considering the Company’s strategy and agreeing it remained appropriate;
* considering the evolution of the Company’s data centre strategy including the availability of power;
* reviewing the Group’s digital strategy, to ensure that it remains closely aligned with the needs of the business and supports in the delivery of our priorities;
* reviewing the Company’s investment stance, and adapting the focus as necessary in response to the changes in the property cycle and wider investment market;
* challenging whether the Company’s approach to share buybacks remained appropriate;
* reviewing and approving the principal risks and risk appetite of the Company; and
* considering presentations by the Company’s corporate brokers, Morgan Stanley and UBS, on shareholder trends.Financial • approving the Half-and-Full-Year Financial Statements, the 2024 Annual Report and Accounts and the 2025 interim and final dividends in line with the dividend policy; • monitoring liquidity through regular reviews of the cash flow position, committed capex and the development pipeline; • approving a new €1.6 billion revolving credit facility, as detailed further on page 40; • receiving presentations from the Company’s independent valuers, CBRE, on our portfolio performance and providing constructive challenge around the valuation process to gain comfort that it remained robust and appropriate; • approving the appointment of Cushman & Wakefield as the Company’s UK valuers with effect from the Company’s June 2026 Half-Year valuation; and • on the recommendation of the Audit Committee following a competitive tender process, approving the reappointment of PricewaterhouseCoopers LLP as external auditor, subject to shareholder approval at the 2026 AGM.

Operational
• reviewing health and safety across the Group, including monitoring performance against the Company’s zero-tolerance approach to health and safety breaches, and reviewing key findings and learnings from any incidents;
• considering ways to deepen customer insights to further enhance relationships with customers and better understand their businesses and needs; and
• hearing how our Community Investment Plans have delivered positive impacts on employment, the local economy and the environment in the communities in which we operate.

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Board leadership and Company purpose continued

Board in action

The Board hosts an annual Strategy Event to reflect on the business’ key strategic themes and long-term focus. In doing so, the Board recognises the value of focusing on the broader strategic context to ensure the business remains on course to fulfil its long-term strategic objectives. Together with the Executive Committee and Company Secretary, the Board was joined by internal experts and external advisers who shared valuable insights into relevant strategic topics, including Morgan Stanley’s perspective on the global macroeconomic outlook and Savills’ view on the global industrial and logistics property market. Internal speakers included:
• the Head of Strategic Planning and the Associate Director of Strategic Insights, who shared a review of structural drivers in the market;
• the Managing Director Continental Europe; Head of Investment Continental Europe; and Head of Finance Continental Europe, who provided updates on the Continental Europe business plan, whilst the Managing Director UK; Head of Investment UK; and Head of Finance UK focused on the annual portfolio review and outputs from the medium-term asset and financial planning process;
• the Managing Director, Data Centres and Strategic Partnerships; Director of Western Corridor; and Finance Director, Operational Analysis who provided updates on the Company’s data centre strategy and business plan, including the availability of power; and
• the Head of Corporate Finance who, alongside the Chief Financial Officer, presented the Group’s medium-term plan.

Other members of the Executive Committee gave presentations on their key business priorities, including talent management. Free form discussions and reflections took place following the conclusion of the presentations.

As well as hearing from colleagues and advisers during the Board Strategy Event, the Directors value meeting and hearing from different people who are close to the Company’s markets and who can tell the Board what they are seeing and hearing on the ground – either during Board meetings, on-site tours, or in the offices when the Board visits. During 2025, the Board heard from a range of internal experts including:
• members of the Executive Committee on their individual areas of responsibility and how they have each delivered against the Group’s strategy;
• the Group HR Director on talent management and diversity, inclusion and equal opportunity initiatives;
• the Managing Director of Group Investment on the annual review of acquisitions and developments and the market outlook;
• the Head of Legal and Company Secretary on legal and governance matters impacting the Group;
• the Director of Customer Marketing and Development on fostering customer insights and strengthening relationships;
• the Chief Information Officer on the Company’s Digital Plan;
• the Head of Business Intelligence and Advanced Analytics on the use of technology to support decision making;
• the Head of Investor Relations on share price performance and investor and analyst feedback;
• the Director of Sustainability on sustainability matters of relevance to the Group;
• the Managing Director, Germany and Netherlands; and the Head of Netherlands, who provided an update on the Dutch market and the Company’s activities there during a Board visit to Amsterdam; and
• the Head of Western Corridor; and Directors of Western Corridor, who briefed the Board on their portfolio during a Board tour of Slough and Heathrow.

These sessions help to provide context for the Board to make strategic decisions, including in respect of acquisitions, disposals and the development pipeline.

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Board leadership and Company purpose continued

Purpose, Values and culture

How the Board lives our Purpose and Values

We are proud of our Purpose – to create the space that enables extraordinary things to happen – and our five Values which support our culture and align with our strategy. They are well embedded in the business and form the basis of our workforce policies. They help to unify employees and describe the core beliefs about how SEGRO does business, acting as a universal language across our business and the countries in which we operate. It is essential that the Directors lead by example and embody the Values. Executive Directors, being more visible leaders around the business, help to set the tone. Consistent feedback from the recent Board performance reviews demonstrate that all Directors feel they can contribute, speak freely and are not constrained in the boardroom. The Chair encourages open debate and no one individual dominates the discussion. The relationships between the Board members mean that they are comfortable to say it like it is, whilst their diverse backgrounds and well-balanced experience bring varying perspectives to Board discussions, and the regular refreshing of appointments ensures fresh perspective and challenge. Together, this fosters a supportive environment which promotes true diversity of thought and constructive challenge.

How the Board manages, monitors and embeds our culture

The Board believes that our culture can be defined by:
• a strong desire to create a successful business we can be proud of;
• trust and strong professional integrity – we deliver on promises;
• pragmatism – a ‘sleeves up’ approach regardless of status;
• thoughtful, detailed and measured decision making;
• respect and transparency; and
• caring about people and taking an interest in their wellbeing.

The Board continues to monitor the culture of the Company through indicators which serve as a temperature check. They consider:
• the results of the employee engagement pulse survey ‘Your Say’;
• feedback from the workforce engagement sessions led by the Non-Executive Directors;
• internal audit reports;
• data on employee turnover;
• feedback from office and site visits by Executive Directors and the Board as a whole;
• any whistleblowing incidents;
• any health and safety incidents;
• any breaches of the Code of Business Conduct and Ethics;
• the results of the annual customer satisfaction survey;
• progress against diversity and inclusion targets;
• feedback from the Group HR Director, who addressed cultural priorities across the workforce at the 2025 Strategy Event; and
• risk discussions and strategic planning which consider culture.

These activities enable the Board to gain regular and meaningful insight into how the Company’s Values are being lived across the organisation. The Board frequently assess whether the desired culture is embedded, identifies areas for improvement, and takes action where necessary to support a positive, inclusive and high-performing culture throughout the Group.

Outcome

The Board considers that, on the whole, there is a strong culture at SEGRO of which our employees are proud. During the most recent Your Say survey, 90 per cent of employees said that they understood SEGRO’s strategy and business priorities and 88 per cent said they felt proud to work at SEGRO. We have a unifying set of Values that drive our culture. When the Directors are together, they live the Values as follows:

Say it like it is
The Directors are honest and transparent in dealings with each other and those who interact with them both inside and outside of the boardroom. The Chair encourages constructive debate and challenge during meetings.

Stand side by side
The Non-Executive Directors bring to the Board their wide-ranging and extensive knowledge and experience from other businesses. The Directors are supportive and take collective responsibility for decisions.

Keep one eye on the horizon
The Directors look to the long term in their decision making. They want to understand future trends and how the Company can use them for the benefit of all of our stakeholders in the short, medium and longer term.

If the door is closed…
The Non-Executive Directors support the Executive Directors to find solutions to more complex issues and provide assistance where difficult judgement calls and decisions need to be made.Does it make the boat go faster? The Directors look at different ways of working to create effective relationships and discuss regularly where they can best add value.

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Board leadership and Company purpose continued

Corporate governance disclosures

Promoting long-term sustainable success

SEGRO’s principal duty is to deliver long-term, lasting and sustainable success, and to generate value for shareholders and other investors, whilst being mindful of its impact on stakeholders and wider society. Real estate is inherently a long-term industry and the Board therefore takes this into consideration in all its decision making. As you will have already read, the Board facilitates decision making through robust governance processes (including through the Schedule of Matters Reserved for Decision by the Board, which forms the framework for the Board’s decisions and is available to view at www.SEGRO.com) and by ensuring that effective risk management is in place, including reviewing the measures used to mitigate the near-and longer-term risks (including emerging risks) to the business. The Board is ever mindful of the need to balance the pursuit of opportunities without taking unacceptable or excessive risk, and ensures that the Company has the appropriate resources, in terms of time, people and funding, to do so. You can read more about the Company’s approach to risk and risk management on pages 56 to 58 whilst page 105 contains further details about the Audit Committee’s role in ensuring that robust processes have been put in place to be sure that risks are identified, evaluated and managed. The Board regularly discusses the Company’s principal risks, along with new and emerging risks, and considers how they may impact on our long-term goals.

Identifying and managing conflicts of interest

The Board operates a policy to identify and, when appropriate, manage actual or potential conflicts of interest affecting Directors. Prior to taking on any additional external commitments, Directors are required to submit any actual or potential conflicts of interest they may have with the Company to the Chair or Senior Independent Director for approval. Any conflicts of interest are recorded and approved by the Board at each meeting. Directors have a duty to keep the Board updated about any changes to these conflicts.

Code of Business Conduct and Ethics

The Board takes an active interest in ensuring that appropriate policies and practices are in place, consistent with the Company’s Purpose and Values. One such policy is our Code of Business Conduct and Ethics (Code of Ethics) which was updated during the year, and which is core to the way in which our business is run, the work we do and our reputation. The Code of Ethics sets out the high ethical standards expected of all our people in their daily work to enable us to act with honesty and integrity. The Code of Ethics covers various policies on a wide range of activities and any breaches are thoroughly investigated with appropriate action taken. The Board receives regular reports on compliance with the Code of Ethics and the Company’s policy on whistleblowing, which sets out the procedure by which employees and any third parties can use a confidential external service, Safecall, to raise concerns. There were no whistleblowing reports, either to Safecall, or through internal channels, during 2025. The Code of Ethics also sets out our approach to the human rights of all our stakeholders. Our due diligence to combat slavery and human trafficking is set out in our Modern Slavery Statement which is approved by the Board each year and is on our website at www.SEGRO.com. See page 125. Our Supplier Code of Conduct (also updated during the year) ensures that all suppliers adhere to high ethical standards and reinforces SEGRO’s commitment to operating our business in an ethical and honest way. The Audit Committee is responsible for ensuring that appropriate safeguards are in place for the detection of fraud and prevention of bribery, including overseeing and monitoring the Group’s anti-bribery and corruption policies and procedures. See page 105.

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Board leadership and Company purpose continued

Division of responsibilities

The division of responsibilities of the Chair, Chief Executive and Senior Independent Director are clearly established in writing and approved by the Board.

Chair

The Chair is responsible for the leadership of the Board and its overall effectiveness in directing the Company and promoting an open environment for challenge and debate. He encourages participation by all the Directors, facilitates constructive relations and creates the right atmosphere to promote a culture of open discussion and effective decision making. Along with the other Non-Executive Directors, he is responsible for holding the Executives to account against agreed objectives.

Chief Executive

The Chief Executive recommends the Group’s strategy to the Board and is responsible for its implementation and for the Group’s overall performance. He ensures that the interests of the Group’s stakeholders are taken into account with regards to the long-term impact of the Board’s decisions.

Senior Independent Director

The Senior Independent Director acts as a sounding board for the Chair and serves as an intermediary for Directors and shareholders should communication through the normal channels fail. She leads the appraisal of the Chair’s performance each year and would, as required, chair the Nomination Committee when it considers his succession.

Availability of the Chair, Chief Executive and the Company Secretary

The Chair, the Chief Executive and the Company Secretary are always available for the Directors to discuss any issues concerning Board meetings or other matters. All Directors have access to the advice and services of the Company Secretary, who is responsible for ensuring compliance with Board procedures. Directors also have the right to seek independent professional advice at the Company’s reasonable expense should they so wish.

Our Governance Framework

The Board is responsible for creating and delivering shareholder value by setting the strategic direction of the Group. The Board delegates a number of its responsibilities to its three sub-Committees. The Committee Chairs provide regular updates on the activities of each Committee at Board meetings.

The Executive Committee supports the Chief Executive with the development and implementation of Group strategy, the management of the business and the discharge of responsibilities delegated by the Board. It typically meets formally each month and informally most weeks, and during the year there are dedicated sessions to discuss strategic priorities as well as ad hoc sessions to keep up to date with more day-to-day operational issues. The Executive Committee delegates some of its responsibilities to a number of management committees, membership of each includes at least one member of the Executive Committee.

Committee	Responsibilities
Health and Safety	Develops and manages the implementation of health and safety policies, reviews the outcomes of the Health and Safety Working Group as well as any other health and safety matters.
Joint Operating Group	Assists the Managing Director of Operations, Digital and Customers to manage the operations of the Group and to discharge the responsibilities delegated to him by the Chief Executive.
Group Risk Committee	Establishes, monitors and reports to the Executive Committee and ultimately the Board and Audit Committee on the Group’s approach to risk management.
Investment Committee	Recommends the investment strategy for the Group, manages the allocation of capital and oversees all major investment and divestment decisions on behalf of the Executive Committee.
The Digital Board	Drives delivery and value for all aspects where digital is an enabler or catalyst for change. It approves the roadmap for the Digital Programme and discharges its responsibilities delegated by the Executive Committee. Read more on pages 56 to 68

The Leadership team comprises the members of the Executive Committee and their senior direct reports, each of whom has responsibility for the Group’s operations in a particular geography or for one or more of the Group’s main functional areas. It serves as a discussion forum and sounding board with which the Executive Directors can share knowledge and ideas, gain a better understanding of the local market outlook and share cross-functional and cross-border information.

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Division of responsibilities

Committee	Responsibilities	Further Reading
Nomination Committee	Ensures that the Board and its Committees have the appropriate skills, knowledge, diversity and experience to operate effectively and to oversee the delivery of the strategy.	Read more on pages 92 to 97
Audit Committee	Monitors the integrity of the Group’s Financial Statements, reviews the relationship with the external auditor and the role and effectiveness of the internal audit function. Oversees the risk management process and internal control environment.	Read more on pages 98 to 105
Remuneration Committee	Determines the reward strategy for the Executive Directors to align their interests with those of shareholders and employees.	Read more on pages 106 to 124

Stakeholder engagement

Section 172(1) statement

The Board confirms that during the year ended 31 December 2025 it has acted in the way it considers, in good faith, would be most likely to promote the long-term success of the Company for the benefit of its members as a whole whilst having due regard to the matters set out in section 172(1) (a) to (f) of the Companies Act 2006 (s172).Each of the Directors are mindful of their duties under s172 to run the Company for the benefit of its shareholders and, in doing so, to take into account the long-term impact of any decisions on stakeholder relationships and the impact of the Company’s activities on the environment, whilst maintaining its reputation for high standards of business conduct at all times. The Company cannot operate in a vacuum. We can only succeed if we conduct ourselves in a responsible manner and have positive relationships with all of our stakeholders.

Factor	Link to strategy	Link to stakeholders	s172 factor
a	Long-term consequences	Responsible SEGRO	a
b	Interests of the Company’s employees	Customers	b
c	Fostering relationships with suppliers	Investors	c
d	Impact of the Company’s operations on the community and the environment	Communities	d
e	Desirability of the Company maintaining a reputation of high standards of business conduct	Environment	e
f	Need to act fairly as between members of the Company	Suppliers	f

Strategy key	Stakeholder key	s172 factor key
Disciplined capital allocation	Customers	Long-term consequences
Operational excellence	Investors	Impact of operations
Efficient capital and corporate structure	Communities	Interests of employees
	Environment	Fostering relationships
	Suppliers	Maintaining reputation
	Employees	Need to act fairly

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Section 172(1) statement

How the Board considers s172 matters

The Directors engage directly with as many stakeholders as they can but given the number spread across multiple geographies, stakeholder engagement often takes place at the operational level. In this next section, we explain how the Board, and the Company, has engaged with our stakeholders and how that engagement has influenced its decision making.

When making decisions which impact our key stakeholders the Board considers the factors set out in s172. Some examples of this in 2025 include:

Joint venture with Pure Data Centres Group

a c e

The Board approved the Company entering into a joint venture with Pure Data Centres Group (Pure DC) to pre-lease and develop a fully fitted data centre at Premier Park, Park Royal. As part of the transaction, SEGRO contributed a 10 acre site at Premier Park, with Pure DC contributing the site’s power via a 70 MVA connection. The contributions allow for the development of a 56 MW IT capacity data centre which is expected to be pre-let to a hyperscaler.

Prior to approving the joint venture, the Board spent time considering its effect on a number of the Company’s key stakeholders, including:

• the anticipated market and investment reaction to the transaction and the impact on the Company’s shareholders (including the future likely liquidity of the asset);
• the repurposing of the site from a generic warehouse, previously let to MatchesFashion, to a highly bespoke data centre – with further thought given to the impact on suppliers (both construction and power), the local community, and the environment (both the impact of the power and water usage of the data centre, and the reuse of the land, some of which was previously contaminated);
• the customer demand for the product; and
• employee resourcing requirements of both the transaction team and the team which will be responsible for delivering the project.

Taking account of the above considerations, the Board believes that the joint venture and future development of a fully fitted data centre are in the best interests of its stakeholders.

Approval of infrastructure works at Radlett

a c d e f

The Board approved the purchase of a 1,000 acre landholding in 2023 at Radlett. In early 2024, the Board approved the capex required to begin the infrastructure works, some of which were time sensitive (including the rail connection), and in 2025 the Board approved the final infrastructure works for the site. Due to the significance of the project, the Board received several project updates throughout the year, including hearing about:

• the enhanced project governance which had been put in place to monitor risk, protecting shareholder value;
• the anticipated financial returns from the project which should enhance the Company’s value for the benefit of its investors;
• the procurement process which was followed to appoint the General Contractor to carry out the second part of the infrastructure works;
• the conditions imposed in respect of the planning, including the development of a country park, for the benefit of the surrounding environment and communities; and
• potential customer demand for the site, including consideration of the type of customers who may be interested in taking space and why.

Throughout the process, the Board has acted in what it considers to be the best interests of SEGRO’s stakeholders.

Appointment of Susanne Schroeter as an Executive Director and Chief Financial Officer

a b e

The Board approved the appointment of Susanne Schroeter as an Executive Director and Chief Financial Officer with effect from 1 December 2025. Susanne has replaced Soumen Das, who retired from the Board and Company on 31 December 2025. When considering Susanne’s appointment, thought was given to her extensive finance experience and strong pan-European business expertise, together with her deep knowledge of financial markets, real estate, logistics, online retail, and digital transformation, which the Board considered would be of real benefit to a number of the Company’s stakeholders, including investors, customers, suppliers and employees. Susanne’s breadth of knowledge and experience, together with her international perspective gained from senior roles in Europe and Asia, will bring invaluable insight to Board discussions and strategic decisions too.

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Section 172(1) statement continued

Employees

Why they are important to us

Our people deliver our strategy and bring our Purpose, Values and behaviours to life. The strength of our platform – and our business performance – relies on their capability, engagement and motivation.

What matters to them

• An inclusive, supportive environment where everyone feels respected, valued and free from bias.
• Working for an organisation whose Values align with their own and are lived consistently every day.
• Meaningful and rewarding careers that provide opportunities to grow, thrive and fulfil their potential.
• Competitive, fair and transparent compensation and benefits that reinforce their contribution and value.

How the Company engages with them

• A refreshed intranet (The Box) for a better, more intuitive experience.
• Monthly Leadership Briefings shared openly on The Box.
• Quarterly business briefings for all colleagues.
• The Your Say survey, the most recent of which received an 88 per cent engagement score, and participation rate of 94 per cent.
• Wellbeing and Inclusion events and drop-ins for two-way dialogue.
• Annual performance and development reviews.
• Training, development programmes and coaching opportunities.

SEGRO offices Düsseldorf, Germany

How the Board engages with them

As the Group has a non-unionised business with a headcount of 463 employees based in multiple countries, an alternative arrangement (as permitted by Provision 5 of the Code) remains the most appropriate option. This involves a three-stage approach which, whilst now well-embedded, remains under review to ensure it continues to be effective and encompasses the spirit of enabling the voice of the employee to be heard in the boardroom:

• An annual programme of workforce engagement with Non-Executive Directors hosting scheduled sessions with a cross-section of employees from across the Group. In 2025 three sessions were held on topics such as Executive Remuneration, and diversity, inclusion and equal opportunity. Non-attributable feedback from each session was relayed at the following Board meeting for discussion.
• Meetings with regional and local leadership teams, asset tours, and informal engagement with colleagues through office lunches, afternoon teas and dinners whilst visiting sites.
• Board, Strategy and Committee meetings throughout the year, where a wide range of employees attended to present on their areas of expertise.

Impact/outcome of engagement

• Meaningful action is taken to address the areas of importance raised by employees during the workforce engagement sessions.
• Employee feedback is a key consideration in people strategy and planning.
• Site visits provide valuable insight into local operations, culture and strategic priorities across the business.
• Board discussions benefit from the wealth of specialist knowledge on employees’ areas of focus, support the Boards’ understanding of the business ensuring informed decision making.
• Meeting with a diverse group of employees at all levels enables the Board to experience the SEGRO culture first-hand and see how our employees uphold the Purpose and Values.

Priorities for 2026

• Deepen colleagues’ understanding of our employee proposition, ensuring everyone feels connected to what makes SEGRO unique and understands how our environment enables high performance.
• Evolve our reward approach to optimise alignment with our strategy, performance goals and the diverse roles across SEGRO, reinforcing a strong sense of value and recognition.
• Strengthen leadership capability at all levels so current and future leaders foster an engaging, inclusive culture and provide the forward-looking direction needed for colleagues to thrive.

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Our stakeholders

Customers

Why they are important to us

A deep understanding of our customers’ needs lies at the heart of how we do business.The spaces we create enable our customers to deliver an extraordinary range of goods and services, and are crucial to their own success.

What matters to them
* High-quality, sustainable and well-located space that enables them to serve their own customers and provides a safe working environment.
* Excellent customer service and a consistently high-quality experience across our portfolio.
* Support in achieving their business goals and responding to operational challenges.
* Opportunities to connect with our businesses, alongside insights into peers and wider market trends.
* An integrated cross-border relationship with SEGRO's teams, helping customers with their industrial and logistics space requirements across our portfolio through a single, coordinated approach.

How the Company engages with them
* Regular contact with our property and asset management teams, supported by structured insight gathering and collaboration.
* Annual customer satisfaction survey, which received 294 responses in 2025 and reported a high level of satisfaction (91 per cent), provides a key measure of performance and tells us about customers’ emerging priorities.
* Regular customer forums enable open discussion on market trends and shared challenges.
* Partnering with customers on our community projects.
* Investment in customer journey priority projects and a customer intelligence platform, improving collaboration, responsiveness and consistency of information shared across the business.

How the Board engages with them
* Visits to assets occupied by customers such as DHL, Kite Pharma, Swissport, Royal Mail and Iron Mountain during 2025 provided first-hand insight into how customers use their space, what they value most, and how our assets support their operations.
* A Board dinner with customer executives from CEVA Logistics provided valuable insight into their business model, future trends and expectations of SEGRO as a long-term partner.
* The Board regularly reviews the results of the annual customer satisfaction survey and broader customer insights to maintain oversight of customer sentiment and evolving needs.

Penguin Random House, SEGRO Logistics Park Cerdanyola, Spain

Impact/outcome of engagement
* Understanding what customers value in high-quality, fit-for-purpose space and service.
* Customer insights provide important context for strategic decisions, helping the Board to identify opportunities, manage risks and respond to emerging challenges.
* Ongoing monitoring of customer satisfaction and trends supports informed leadership and continuous improvement.

Priorities for 2026
* Deepen relationships and shape the SEGRO proposition in established high-growth sectors.
* Enhance customer reporting, action tracking and information delivery through AI-powered tools.
* Support customers in transitioning to lower-carbon energy, underpinned by our solar installation strategy.
* Continue to replace gas with efficient, low-carbon heat sources across the portfolio.
* Deliver a SEGRO-wide biodiversity assessment to inform future action.

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Our stakeholders continued

Communities

Why they are important to us

We aim to deliver long-term economic and social benefits in the communities in which we operate. Our relationship with them means that we are good neighbours and support each other; this helps ensure the success of our estates.

What matters to them

• Local environment and quality of life.
• Sustainable designs that mitigate noise and traffic congestion.
• Training and employment opportunities.
• Investment into the local economy.
• Enhancement of their local environment.

How the Company engages with them

• Early consultation on new developments.
• Partnerships with local authorities, charities and education providers to deliver our Community Investment Plans (CIPs). In 2025 we launched a fifteenth CIP in St Albans, Hertfordshire, which means we now have one in each of our major markets.
• 1,227 volunteering days were delivered in our local communities by our employees and representatives from our customers, suppliers and other stakeholders during 2025.
• Long-term participation in community groups and local advisory boards.

SEGRO day of giving, Germany

How the Board engages with them

• Monitors progress on CIPs, and hears how they deliver positive impacts on employment, the local economy and the environment in the communities in which we operate.
• Approved ESG targets as part of employees’ remuneration package, to include a target number of volunteering days to be completed by employees, customers and suppliers.
• Participation in the SEGRO Day of Giving; volunteering on projects that benefit our local communities. In 2025, our Executive Directors, David Sleath and Soumen Das, took part in projects in the UK.
• Career employability workshops for young people, helping to improve access to the workforce. Our Chair, Andy Harrison, took part in two workshops in Enfield during 2025.

Impact/outcome of engagement

• Considers community impact in investment decisions, ensuring capital allocation supports local benefits.
• Volunteering initiatives address local needs and delivers meaningful, lasting community impact. They further enable employees to build stronger stakeholder relationships and valuable insights.

Priorities for 2026

• Expand participation in the CIP by increasing the number of engaged customers, public sector partners, and suppliers.
• Strengthen data collection and our analytic platform to improve programme efficiency, performance management, and outcomes.
• Embed further qualitative measurement within the CIP to better capture lived experience, progression, and the wider impact.
• Measure and communicate the ‘Social Value’ impact of the 2025 CIP (in the UK only).

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Our stakeholders continued

Suppliers

Why they are important to us

We have over 3,000 suppliers across the Group and spent c.£723 million with them in 2025. We look to work with suppliers whose aims complement our own. Close collaboration with them is key to us delivering on our goals, including the reduction of our carbon emissions. They include our construction partners, professional advisers and everyone involved in SEGRO’s supply chain.

What matters to them

• Clearly defined expectations and standards (including high ethical standards).
• Positive collaboration with aligned values and objectives.
• Advice on best practices and training support where necessary.
• Prompt and efficient payment of invoices.

How the Company engages with them

• Our Supplier Code of Conduct and Modern Slavery and Labour Standards Supplier Code consolidate and set out in full the principles and standards that we expect from suppliers and outline how we can work side-by-side to create real change.
• A comprehensive supplier assurance process to ensure our supply chain is maintained to a high standard with regular service review sessions.
• Support with health and safety training and initiatives, where appropriate.
• Collaboration on our Responsible SEGRO ambitions and CIP projects. 108 suppliers participated in our volunteering programme in 2025.
• Contractor Forums in the UK for our supply chain partners, to engage on a wide range of topics such as sustainability, health and safety and best practice.
• Use of a framework with key supply chain partners to drive future areas of collaboration.
• We are an accredited UK Living Wage employer, and are working with our suppliers to help ensure everyone working in our supply chain to support us is paid a real Living Wage.

How the Board engages with them

• Meets with suppliers whilst on site tours, such as Wates Construction in 2025.
• Regular discussion and consideration of suppliers throughout the year, including in respect of the Radlett infrastructure works.
• Invites suppliers to join Board meetings and the annual Strategy Event to provide updates on their areas of expertise.
• Receives training, from key suppliers, to ensure that the Board remains well informed on their responsibilities.

Winvic, SEGRO Logistics Park Northampton, UK

Impact/outcome of engagement

• Enhances the Board’s understanding of our markets, as well as the opportunities and challenges some are facing, and the potential impact on our business.
• Considers the highest ethical standards as integral to SEGRO’s business.
• Approves the Modern Slavery Statement and maintains oversight of the Modern Slavery and Labour Standards Code and the Code of Business Conduct and Ethics to ensure that these standards are maintained by our suppliers as appropriate.

Priorities for 2026

• Build on previous record high levels of engagement and participation from our supplier partners in our CIP, with a wide range of different ways that they are able to continue to be involved.
• Work in close collaboration with our key supply chain partners on our Best Value initiative to understand how we can do things better, taking a multi-year approach to driving new value and performance.
• Work with supply chain partners to further reduce embodied carbon in development and refurbishment.

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Our stakeholders continued

Investors

Why they are important to us

Shareholders, both institutional and retail, are the owners of our business. They also include the financial institutions who provide debt and capital to us and our joint ventures.

What matters to them

• Clearly articulated long-term strategy.
• Financial performance, returns and dividend growth.
• Strong balance sheet.
• Risk management and efficient use of capital.
• Leading ESG performance.
• Effective and robust governance.How the Company engages with them
• Our extensive Investor Relations programme ensures we reflect our investors’ views in our decision making. This includes: meetings; roadshows; conferences and asset tours; regulatory reporting; and our Annual General Meeting.
• In 2025, we engaged with investors across 300 meetings, including all of our active largest 20 shareholders. We hosted asset tours giving over 150 institutional investors and analysts the opportunity to see our assets and learn more about the portfolio.
• Areas of focus included supply-demand dynamics and rental growth outlook in our occupational markets, the pace of our development pipeline, capital reallocation strategy, and the data centre opportunity within our portfolio.

SEGRO Annual General Meeting, 2025, UK

How the Board engages with them
* Attendance at the annual Financial Results presentation to engage with investors and analysts. In 2025, our Chair, Andy Harrison, and Executive Directors, David Sleath and Soumen Das, attended the 2024 Financial Results presentation.
* Attendance by the whole Board at the 2025 Annual General Meeting to meet with, and answer questions from, shareholders both formally, during the meeting, and informally, over refreshments.
* The Chair extends an invitation annually to our ten largest shareholders to meet with him, the Senior Independent Director and/or the Committee Chairs. In 2025, the Chair consequently met with several investors.
* In 2025, Simon Fraser, Chair of the Remuneration Committee, met with investors to discuss changes to the Remuneration Policy and the 2026 LTIP performance metrics, following him writing to the Company’s 20 largest shareholder and proxy voting agencies, inviting engagement.

Impact/outcome of engagement
* Regular engagement with our investors helps the Board understand what is important to them and informs its decision making.
* In developing the 2026 LTIP performance metrics, investor perspectives were considered and valued.

Priorities for 2026
* Continue to take an open and transparent approach to financial communication.
* Engage proactively with our largest shareholders and potential new investors.
* Ensure that investors understand our data centre strategy and the income and value creation opportunity that it offers.

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Our stakeholders continued

Environment

Why it is important to us
We recognise that the interactions of our business with the environment, through the materials and resources we use in development, the activity of our customers in our buildings, and the exposure of our portfolio to emerging climate risks, are critical to SEGRO’s long-term resilience and success.

What matters to it
* Reduction of the carbon emissions generated by our operations and through our development programme.
* Maximising the efficiency and minimising the resource usage of our assets.
* Understanding and ensuring the resilience of our portfolio to climate change risks.
* Protection and enhancement of biodiversity in our local areas.

How the Company considers the environment
* Ambitious science-based carbon reduction targets, including net-zero targets in our primary categories of emissions, including:
* Decreasing our corporate and customer carbon emissions intensity by 17 per cent, and our average embodied carbon intensity in our developments by 12 per cent, in 2025.
* Working with customers on their carbon reduction journeys, including through installation of solar panels at our properties, where economically feasible.
* Increasing visibility of our customer energy usage (now at 91 per cent).
* Adding 22 MW to installed solar capacity at our properties in 2025.
* Scenario analysis to understand the potential impact of climate change and mitigating risks.
* Consideration of the carbon and biodiversity impacts of our development projects.

How the Board considers the environment
* All requests for capital approval must contain information on the environmental implications and mitigations as required by the Company’s Mandatory Sustainability Policy.
* Oversees the alignment between developments and our Responsible SEGRO targets, ensuring wherever possible our buildings benefit from sustainable enhancements.
* Receives regular updates on progress against our Responsible SEGRO targets and sustainability, including hearing from the Director of Sustainability on progress made on Championing low-carbon growth in 2025.
* Regular updates from internal and external experts on current and forthcoming environmental legislation.

CEVA Logistics collaborating on community investment, Poland

Impact/outcome of engagement
* Monitoring progress against our Responsible SEGRO targets ensures that they remain appropriate, stretching and in the best interests of all of our stakeholders.
* Environmental impact of our developments and net-zero ambitions are considered for capital allocation requests.
* Reports on sustainability and updates on compliance with the Mandatory Sustainability Policy enable the Board to lead the business in a way which it believes is most likely to promote its long-term sustainable success.
* The Board stays well informed and the Company continues to comply with requirements with regards to ESG, due to regular updates and engagement on this topic.

Priorities for 2026
* Support our customers in moving to lower carbon energy, helped by our solar installation strategy.
* Continue to replace gas with efficient low-carbon heat sources.
* Work with our supply chain partners to further reduce embodied carbon.
* Deliver on a SEGRO-wide biodiversity assessment.
* Conduct at least one climate vulnerability on-site visit in 2026.

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Our stakeholders continued

Internal Board performance review

Frequency and evaluation type	Year 1: External	Year 2: Internal	Year 3: Internal

In line with the requirements of the Code, the Board undertakes an externally facilitated performance review every three years. In the intervening two years, internal reviews of the Board, its Committees and the performance of individual Directors are carried out. The last external Board performance review took place in 2024 and our intention is to repeat this exercise in 2027. This year's internal review was led by the Senior Independent Director, Carol Fairweather, and overseen by the Chair, with support throughout the process from the Company Secretary. The Senior Independent Director and Company Secretary agreed the areas of focus for the review with the Chair, and held 1:1 interviews with individual Board members and the HR Director, structured around these themes, with the opportunity for participants to express their views on any other matters of importance to them. A draft report summarising the key themes from the review, was discussed with the Chair and Chief Executive ahead of the December 2025 Board meeting, following which it was presented to the Board, who agreed the actions for the upcoming year.

Agreed areas of focus
The review focused on a wide selection of themes, and the combination of topics allowed us to seek views on both strategic and business-as-usual items. Key areas of focus included:
* the size and composition of the Board and its Committees and the balance of the skills, experience, independence and diversity brought by each of the Directors;
* Board succession planning, along with the people strategy for the wider business;
* the Board’s input to the development of strategy and the effectiveness of strategy sessions at Board meetings;
* Board dynamics and the relationships between the Directors, and between the Board and the Executive Committee, as well as the contributions of individual Directors, including the Chair; and
* stakeholder engagement and the consideration of stakeholder interests as part of Board discussion and decision making.

Conclusions
Overall, the feedback from the review remained positive and concluded that the Board and its Committees continue to perform to a high standard and cover all of their statutory duties. The key findings of the review are summarised below:
* the size, balance of experience and skills, and diversity of the Board was considered to be appropriate. This would be kept under review during the coming year with two Non-Executive Directors due to reach the end of their nine-year tenures in 2027;
* Board meetings were effectively run by the Chair with Board dynamics remaining strong and the Board was considered to be collaborative with appropriate levels of challenge;
* the Board appreciated the increased time that had been spent on strategic updates, including insights on longer-term strategic drivers, and wanted this to remain a key focus;
* the Board was comfortable that Executive and Non-Executive succession planning was being appropriately considered. Increased visibility of senior management succession planning was well received;
* all three Board Committees were thought to be well chaired and effective in discharging their respective duties with the combination of skills and experience brought by the Committee members deemed appropriate;
* the quality of papers continued to improve to support effective discussion and decision making; and
* Board members commented positively on the employee engagement sessions and visits to local SEGRO teams. Customer interactions had also been very well received and there was a desire for these to continue.Actions Following the review, the Board appreciated the opportunity to reflect on its performance and highlighted areas for continued focus in 2026, some of which included:
* to continue to receive regular updates on strategic items and in-depth reviews of the structural drivers of the business, and to ensure adequate time is given to them at Board meetings and the annual Strategy Event;
* to continue with regular updates to the Nomination Committee on Board and Executive Committee succession planning, including updates on wider talent management and a review of future capability requirements, as well as the required skill sets and experience for replacement Non-Executive Directors;
* to maintain the programme of regular stakeholder engagement; and
* to maintain the discipline around succinct executive summaries in Board papers and presentations to allow sufficient time for discussion and questions from Board members.

Actions against these priorities will be considered by the Board during the course of 2026 and reported against in next year’s Annual Report.

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Board performance review

Review of the actions from the 2024 review

In July and December 2025, the Board revisited the conclusions of the 2024 external Board performance review to ensure that progress was being made on the key actions identified:

What we said we would do	What we did	Further information
Strategy Maintain the regular updates at Board meetings on strategy and the key strategic priorities, ensuring sufficient time for debate, including updates on the longer-term trends that could impact the key structural drivers of the business.	In addition to the dedicated Strategy Event in November 2025, the Board received regular updates at Board meetings on strategic topics and the key strategic drivers for the business, and additional time was allocated on the Board agenda for discussion and debate. This will continue to be a key area of focus throughout 2026.	Board in action – page 78 Board activities and decisions in 2025 – page 77
Stakeholder engagement Maintain the cadence of breakfasts and dinners with external speakers, including customers and suppliers, and allocating time on Board agendas to discuss any outputs from these interactions.	The stakeholder engagement programme allowed the Board to meet with key stakeholders including employees, customers and suppliers throughout the course of the year. Sufficient time was allocated on Board agendas to discuss the outputs from these meetings. This will continue to be an area of focus throughout 2026.	Our stakeholders – pages 84 to 89 Board in action – page 78
Succession planning and talent management Dedicating sufficient time at Nomination Committee meetings to discuss and consider Board, Executive and senior management succession planning, talent management and future capability requirements.	Additional Nomination Committee meetings were held in 2025 to consider Executive Director, Non-Executive Director, and senior management succession planning, as well as talent management and future capability requirements for management. Succession planning will remain a key area of focus in 2026.	Senior management succession planning and talent management – page 93 Succession planning – page 95
Board papers and agendas Continue to improve discipline around succinct executive summaries in Board papers and presentations to allow sufficient time for discussion and questions from Board members.	This was addressed in 2025 and the Board valued the improvement to the length and summarisation of Board papers which allowed more effective discussion at Board meetings. This will remain an area of focus throughout 2026.	Board activities and decisions in 2025 – page 77

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Board performance review continued

Composition, succession and evaluation

Committee membership

Andy Harrison (Chair)	Mary Barnard	Sue Clayton
Carol Fairweather	Simon Fraser	Linda Yueh

During the year, the Committee has acted in accordance with its Terms of Reference, which were last updated in February 2024 and can be found at www.SEGRO.com

Letter from the Chair of the Nomination Committee

Dear shareholder,

I am pleased to present the Nomination Committee (the Committee) Report for 2025, in which we set out how the Committee has discharged its responsibilities during the year. The Committee comprises five of the Independent Non-Executive Directors and is chaired by myself as the Chair of the Board. In this Report we will demonstrate how the Committee has fulfilled its role of overseeing the composition of the Board and its Committees, and monitoring the balance of skills, experience, independence and knowledge as well as the diversity of its members in its broadest sense. In 2025, the Committee met four times, detailed on page 76, to consider the items set out below.

Board changes

Appointments

In anticipation of Soumen Das’ planned retirement in December 2025, the Committee worked closely with the Chief Executive and Group HR Director to undertake a thorough search for his successor with the assistance of Russell Reynolds. After a robust search process, which is detailed further on page 97, the Committee recommended to the Board the appointment of Susanne Schroeter. Susanne was appointed as an Executive Director and Chief Financial Officer on 1 December 2025 and will be subject to election by shareholders at the upcoming Annual General Meeting (AGM). Susanne brings a wealth of financial and pan-European business expertise which complements the existing skill set of the Board and will offer new insights to Board discussions. Susanne is currently undergoing a comprehensive induction programme, which will be reported in further detail in the 2026 Annual Report. On behalf of the Committee, I would like to welcome Susanne to the Board.

We recently announced the appointment of Louisa Burdett as an Independent Non-Executive Director with effect from 1 May 2026. Louisa has extensive financial and risk management experience, further complementing the Board’s existing skills. Louisa will stand for election by shareholders at the 2027 AGM. Further details on her appointment and induction will be included in next year’s Report.

Retirements

Soumen Das retired as an Executive Director and Chief Financial Officer with effect from 31 December 2025, allowing for an orderly handover of responsibilities to Susanne. On behalf of the Committee, I would like to thank Soumen for his contribution to the Company and wish him the very best for the future.

Committee membership

The Committee considered the appointments of Independent Non-Executive Directors to each of the three Board Committees and concluded that they remain appropriate and effective although, as ever, this will be kept under review.

Board succession planning

Succession planning remained a priority for the Committee throughout the year and you can read more about our approach on page 95. Mindful of the tenure of some of our Non-Executive Directors, namely Sue Clayton and Carol Fairweather, who are now each serving their final three-year term (Carol will have served on the Board for nine years on 1 January 2027, and Sue will have served for nine years on 1 June 2027), the Committee has been considering succession planning for their roles.

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Nomination Committee Report

Board succession planning continued

Careful attention has been given to maintaining an appropriate mix of skills, experience, independence and diversity, as well as the overall balance of the Board. In addition to her role as an Independent Non-Executive Director, Carol also serves as Chair of the Audit Committee and Senior Independent Director, and succession planning has therefore focused particularly on ensuring a smooth and orderly transition of these responsibilities. Board succession planning will, as ever, remain a focus for the Committee during 2026.

Senior management succession planning and talent management

In 2025, the Committee, as usual, spent time reviewing succession planning and talent management for senior management roles, including the Executive Committee members and Leadership team roles, as well as talent more generally throughout the business. The Committee sees this as a key priority to ensure we have the right leadership and people in place to deliver our strategic objectives and support long-term growth. The Committee considers succession planning below Board level essential for maintaining an effective leadership pipeline, promoting diversity, inclusion and equal opportunity, and enabling an orderly transition of responsibilities over time.

Board Diversity, Inclusion and Equal Opportunity Policy

The Board Diversity and Inclusion Policy was updated in December 2025 and is now titled the Board Diversity, Inclusion and Equal Opportunity Policy (the Policy). The Policy was reviewed and updated to ensure that it includes equal opportunity considerations and to ensure it remains appropriate, effective and in line with best practice. You can read more about the updates made to the Policy, as well as how the objectives set out in the Policy have been achieved during the year, on page 96. The Policy is also available to view on the Company’s website at www.SEGRO.com.

Committee effectiveness

As part of the internal Board performance review undertaken during the year, detailed on pages 90 and 91, the operation of each of the Board Committees was considered, and it was concluded that they continue to operate effectively and were well led by their respective Chairs.An update on the activities of the Committee was provided to the Board at each subsequent Board meeting following a Committee meeting. Looking ahead In 2026, the Committee will continue to focus on succession planning, both generally and with regard to specific key roles for both the Board and in respect of key talent throughout the organisation, to ensure that we remain well positioned for the future. Diversity, inclusion and equal opportunity for the Board and senior management roles also remains a key item for discussion on the agenda and we will continue to monitor progress against achievements of the agreed Board and senior management diversity targets. If you have any questions on the Nomination Committee or the contents of this Report, do contact me at companysecretariat.mailbox@SEGRO.com.

Andy Harrison
Chair of the Nomination Committee

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Nomination Committee Report continued

What the Committee did in 2025

In addition to its key responsibilities, in 2025 the Committee:
* considered succession planning for Soumen Das, the Company’s former Chief Financial Officer and Executive Director;
* worked closely with the Chief Executive on the recruitment of the new Chief Financial Officer, and recommended the appointment of Susanne Schroeter to the Board;
* considered succession plans for Carol Fairweather and Sue Clayton, two Non-Executive Directors, in anticipation of their nine-year terms completing in 2027;
* reviewed succession planning and talent management for the Board, senior management and key roles throughout the organisation more generally; and
* considered and approved the updated Board Diversity, Inclusion and Equal Opportunity Policy.

Composition, skills and experience

The Board is currently made up of a Non-Executive Chair, six Independent Non-Executive Directors and two Executive Directors, all of whom are equally responsible for the effective stewardship and leadership of SEGRO. During the period, the Committee reviewed and updated the Board skills matrix to assess Board effectiveness and identify areas where additional expertise would strengthen its capabilities. The updated matrix provides a structured assessment of the skills required for a collectively effective Board, enabling evaluation of both current capabilities and future needs. This approach ensures the matrix remains fit for purpose in supporting Board training, succession planning, and the delivery of the Company’s strategic priorities. In developing the matrix, the Committee noted the importance of skills in digital, data and cyber security, as well as Board and Committee chairing experience. You can review the updated matrix on page 72. Using the updated matrix, the Committee reviewed the skills and experience of the Board members, as well as the size of the Board as a whole, and concluded that it was appropriate in size with the right balance of skills and experience to fulfil its duties. This will continue to be kept under review on an annual basis.

Board appointments

The Committee leads the process for the identification, evaluation and recommendation of candidates for Board appointments, ensuring an appropriate balance of skills, experience, independence and diversity, as well as a diverse pipeline. The process of Board appointments includes preparing role specifications, using external search advisers where appropriate, assessing candidates on merit against objective criteria, and ensuring that appointees have sufficient time to fulfil their roles, with clear expectations set out at appointment and ongoing disclosure of commitments. In 2025, the Committee worked closely with the Chief Executive and Group HR Director to recommend Susanne Schroeter’s appointment to the Board, which you can read more about on page 97.

Conflicts of interests

The Committee oversees the ongoing review and management of the Directors’ conflicts of interest to ensure that any actual or potential conflicts of interest relating to Directors are identified, disclosed and authorised prior to appointment. This supports high standards of corporate governance by promoting transparency, independence of judgement and the integrity of Board decision making.

Induction

On joining the Board, new Directors participate in a comprehensive induction programme designed to familiarise them with the Company, its assets, policies and procedures, and to introduce them to employees and key advisers, in order to assist them in becoming effective in their role as quickly as possible. As part of the induction process, they are provided with information on the Group, its policies and its governance structure by the Company Secretary. They will also meet with the Executive Directors, the other members of the Executive Committee, the Heads of Functions covering various aspects of the business, and the Company’s external advisers which include the valuers, brokers, and internal and external auditors, during the course of Board activities.

Training

To ensure the Board continually updates and refreshes its skills and knowledge, ongoing training and development support is provided. The Directors are regularly briefed on: business-related matters; governance updates; investor expectations; and legal and regulatory changes which impact the Company. During the year, both the Audit and Remuneration Committees received updates or briefings on relevant accounting, remuneration and regulatory developments, evolving market trends and changing disclosure requirements from external advisers and internal management. Directors may also request training on specific issues with some attending external courses (often provided by our professional advisers). From time to time, meetings with specialists in the business are arranged for Directors who may wish to gain a deeper insight into a particular topic. The Directors may raise any training needs with the Chair which helps to ensure that the training programme meets the needs of the Board, individual Directors and the business. The Directors have access to the advice of the Company Secretary and independent professional advice is available at the Company’s expense, if necessary, to enable Directors in fulfilling their duties and responsibilities. During the year, all Board members received the annual refresher training on the UK Market Abuse Regulation from the Company Secretary and were reminded of their ongoing duties and responsibilities as Directors by our corporate lawyers, Slaughter and May.

SEGRO Park Gliwice, Einsteina, Poland

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Nomination Committee Report continued

Non-Executive Directors
l First term
l Second term
l Third term
Carol Fairweather	8 years, 0 months
Sue Clayton	7 years, 6 months
Mary Barnard	6 years, 10 months
Linda Yueh	4 years, 8 months
Simon Fraser	4 years, 8 months
Andy Harrison	3 years, 9 months
Marcus Sperber	1 year, 7 months
	2018	2019	2020	2021	2022	2023	2024	2025	2026	2027	2028	2029	2030	2031	2032	2033
Tenure

Executive Directors
1 January 2006	16 January 2017	1 December 2025
David Sleath	20 years, 0 months
Soumen Das $^1$	8 years, 11 months
Susanne Schroeter $^2$	0 years, 1 month
	2006	2007	2008	2009	2010	2011	2012	2013	2014	2015	2016	2017	2018	2019	2020	2021	2022	2023

$^1$ Soumen Das retired from the Board on 31 December 2025.
$^2$ Susanne Schroeter was appointed to the Board on 1 December 2025.

Succession planning

The Committee is responsible for the effective and orderly succession planning of Directors, both Non-Executive and Executive, the Group HR Director and the Company Secretary. It monitors the tenure of Directors to ensure that it plans sufficiently in advance of retirements from the Board to ensure orderly succession of Non-Executive Directors. In accordance with the Code, all Directors stand for election or re-election at each AGM. Along with considering Board succession, the Committee oversees the development of a strong pipeline of diverse and talented individuals below Board level. It reviews regularly the quality of the Leadership team and senior managers as it recognises the importance of creating and developing a suitably talented, diverse pipeline ready to serve as the next generation of leaders. The Chief Executive, supported by the Group HR Director, presents to the Committee on Leadership team succession planning and the talent development programme for the wider workforce. For the Executive Committee and for roles in the Leadership team, plans are in place for both sudden, unforeseen absences, and for longer-term succession. These form the basis of development plans for our most talented people and will ensure that, looking forward, we have the right people to deliver our strategy.

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Board diversity, inclusion and equal opportunity

The Board recognises the benefit and value of diversity in its broadest sense and believes that, throughout SEGRO, diversity of perspective and experience enables more effective discussion and better decision making. SEGRO is a pan-European business committed to the creation of an inclusive culture, where each individual is given the opportunity to contribute and use their talents and abilities to their maximum potential. We believe a diverse Board, with a broad range of skills, backgrounds, knowledge and experience, is a key driver of an effective Board as it promotes constructive debate and effective decision making. The composition of the Board exceeds the criteria of both the FTSE Women Leaders Review on gender diversity and the Parker Review on ethnic diversity.As at 31 December 2025, 20 per cent were from an ethnic minority background (including Soumen Das who retired from the Board on 31 December 2025), 50 per cent of the Board were female (including Susanne Schroeter following her appointment to the Board on 1 December 2025) and two senior Board positions are now held by women, strengthening the gender diversity of the Board.

Board Diversity, Inclusion and Equal Opportunity Policy

The Committee is responsible for monitoring the effectiveness of the Policy. The Policy sets out the Company’s approach to diversity, inclusion and equal opportunity and considers how this contributes to SEGRO’s Group-wide diversity, inclusion and equal opportunity ambitions. In December 2025, the Policy was updated to explicitly incorporate equal opportunity, reinforcing our commitment to merit-based appointments to the Board, Board Committees and senior management which are assessed against clearly defined and objective criteria. The Policy incorporates a broad range of diversity factors as set out in the Disclosure Guidance and Transparency Rules, specifies diversity targets with which the Board aims to comply, and considers how the Policy is applied to the Audit, Nomination and Remuneration Committees as well as the Board and senior management. The Committee considers that the Board and its Committees were in compliance with the Policy, which remained appropriate and aligned with best practice, and will keep both the Policy itself and compliance with it under periodic review.

Diversity, inclusion and equal opportunity in Directors’ recruitment

When searching for a Director, the Committee is mindful of the advantages a diverse Board brings and ensures that in selecting and briefing executive search firms, the importance of diversity, inclusion and equal opportunity is highlighted at the outset. The Committee particularly considers how it describes the skills and experience needed for the roles as this helps attract as wide a pool of candidates as possible. Only executive search firms that have signed up to the Voluntary Code of Conduct for Executive Search Firms will be used in the recruitment of Directors. In the final selection decision, all Board appointments are made on merit and relevant experience, against the criteria identified by the Committee with regard to the benefits of diversity in the widest sense.

Reporting table on sex/gender representation

	Number of Board Members	% of Board	Number of senior positions on the Board ³	Number in executive management ⁴	% of executive management
Men	5	50	3	6	67
Women	5	50	2	3	33
Not specified/prefer not to say	—	—	—	—	—

Reporting table on ethnicity representation

Ethnicity	Number of Board Members	% of Board	Number of senior positions on the Board ³	Number in executive management ⁴	% of executive management
White British or other White (including minority-white groups)	8	80	4	8	89
Mixed/Multiple Ethnic Groups	—	—	—	—	—
Asian/Asian British	2	20	1	1	11
Black/African/Caribbean/Black/ British	—	—	—	—	—
Other ethnic group	—	—	—	—	—
Not specified/prefer not to say	—	—	—	—	—

1 The senior management’s direct reports (which include members of the Leadership team) are the next layer of management below senior management as defined by the Code. This figure differs from the percentage of women in senior leadership roles disclosed on page 25 which is inclusive of executive/senior management, and not just their direct reports.
2 These tables set out the numerical data required to be disclosed in accordance with UKLR 6.6.6(9) as at 31 December 2025. The data collected from Directors and executive management for the purposes of making this disclosure is provided on a voluntary basis. The figures include Soumen Das, who retired from the Board on 31 December 2025, and Susanne Schroeter who was appointed to the Board on 1 December 2025.
3 Senior positions on the Board include the Chair, Chief Executive, Chief Financial Officer and Senior Independent Director.
4 Executive/senior management comprises the Executive Committee, being the most senior managerial body below the Board, and the Company Secretary as defined by the UK Listing Rules and the Code.

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Gender balance of executive/senior management’s direct reports ¹

• Male (19) 59%
• Female (13) 41%

Gender balance of total workforce

• Male (225) 49%
• Female (238) 51%

Time commitment

As part of the recruitment process, the significant time commitments of potential Board members should be disclosed to the Committee. On appointment, the Chair and Non-Executive Directors receive a formal letter of appointment clearly setting out their expected time commitment to the Company and any additional future commitments should not be undertaken without prior notification to the Board. Executive Directors are permitted to hold one external directorship as approved by the Board. David Sleath holds one external directorship, at RS Group plc, and Susanne Schroeter holds one external directorship, at Zalando SE. The Committee has considered the additional commitments of all Directors and has concluded that each of them has sufficient time to commit to the Company and are not overboarded. Their individual contributions are, and continue to be, important to the Company’s long-term sustainable success. For transparency, we disclose all significant external appointments held by our Directors in their biographies on pages 74 to 76; however, it is recognised that many of these appointments do not require the same time commitment as appointments to publicly listed companies.

Directors’ independence

The Board is made up of a majority of Independent Non-Executive Directors, which promotes the good governance of the Company by ensuring that the Executives are held to account and are not able to dominate Board decision making. The Committee considers each of the Non-Executive Directors to be independent in character and judgement in accordance with the criteria set out in the Code. The Chair was considered independent on appointment and the Committee still considers him to be so. Prior to their appointment, the Directors must disclose any actual or potential conflicts of interests and any future business interests that could result in a conflict must not be undertaken without the prior notification to, and authorisation of, the Board. The Board considers and approves the conflicts of interest as declared by any Director at each Board meeting.

1 The figures include Soumen Das, who retired from the Board on 31 December 2025, and Susanne Schroeter, who was appointed to the Board on 1 December 2025.

Directors’ effectiveness

The performance and individual contribution of each of the Directors is reviewed annually as part of the Board performance review process, which this year was an internal review led by the Senior Independent Director and overseen by the Chair. Further details can be found on pages 90 and 91. The review concluded that the Chair continued to demonstrate strong and effective leadership, conducted Board meetings in a well-structured and inclusive manner, and remained effective in fulfilling the responsibilities of his role. The Non-Executive Directors agreed that the Chief Executive continued to demonstrate energy and commitment in his role and provides strong leadership to an effective Executive team. The performance of the other Non-Executive Directors is appraised by the Chair and Senior Independent Director, whilst the Chief Executive provides feedback on the Chief Financial Officer.

Director election/re-election at the AGM

Having considered the skills and performance of each Director, and whether they continue to be effective and demonstrate commitment to their roles, the Committee makes a formal recommendation to the Board that they be elected/re-elected as appropriate. The Committee has concluded that all Directors continue to be effective in their roles and accordingly will submit themselves for election/ re-election as appropriate by shareholders at the 2026 AGM. For information on how each of the Directors contributes to the long-term success of the Company, see their biographies on pages 74 to 76.

Susanne’s appointment

In 2025, the appointment of a successor Chief Financial Officer was a key focus of the Committee. As this is an Executive role, the Committee worked closely with the Chief Executive and Group HR Director to agree a detailed specification, taking into consideration the experience, technical knowledge, and leadership characteristics required for the position. Russell Reynolds, an independent external search firm with no connections to the Board or its individual Directors, were appointed to support in the recruitment process. They are a signatory to the voluntary Code of Conduct for Executive Search Firms, as required by the Board Diversity, Inclusion and Equal Opportunity Policy, and the Committee was cognisant of the Policy requirements throughout the recruitment process. Russell Reynolds commenced the search for a diverse long list of potential candidates, which was reviewed by the Chief Executive, Group HR Director, and the Committee, following which the Committee Chair met with the Chief Executive and Group HR Director to receive and discuss feedback. A shortlist was agreed, and, following interviews and assessment of the candidates’ credentials, Susanne Schroeter was identified as the preferred candidate. The Committee recommended to the Board that she be appointed as an Executive Director and Chief Financial Officer, subject to approval by shareholders at the 2026 Annual General Meeting. The Board subsequently approved the recommendation, and Susanne joined us as Chief Financial Officer with effect from 1 December 2025.# 97 | SEGRO plc Annual Report & Accounts 2025 Overview Strategic Report Governance Financial Statements Further Information

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• Independent Chair (1) 10%
• Independent Non-Executive Directors (6) 60%
• Executive Directors (3) 1 30%

Audit, risk and internal control Committee membership

Carol Fairweather (Chair)	Sue Clayton
Simon Fraser	Linda Yueh

During the year, the Committee has acted in accordance with its Terms of Reference, which were last updated in February 2026 and can be found at www.SEGRO.com

Letter from the Chair of the Audit Committee

Dear shareholder,

As Chair of the Audit Committee (the Committee), I am pleased to present the Committee’s report for 2025. Over the following pages you will see how the Committee has discharged its responsibilities, as well as other areas which it has focused on.

Composition

The Committee continues to be made up entirely of Independent Non-Executive Directors, each of whom has considerable commercial knowledge and broad industry expertise. I satisfy the requirement of the UK Corporate Governance Code 2024 (the Code) to bring recent and relevant financial experience to the Committee, and the Committee also benefits from the additional financial expertise and experience provided by both Simon Fraser and Linda Yueh as well as the wealth of property experience brought by Sue Clayton. There were no changes to the composition of the Committee during the year, and the Board remains satisfied that the Committee as a whole has the relevant competence and appropriate balance of skills and experience to properly discharge its duties.

Meetings

The Committee met formally three times during the year (although Committee members met less formally a number of times throughout the year to consider the external auditor tender) and provided updates to the Board on its activities at each subsequent meeting. We believe this is the appropriate amount of scheduled meetings, however if the need arises, additional formal meetings are convened.

In addition to the regularly scheduled meetings, the Committee members also attended a workshop hosted by the external auditor, PricewaterhouseCoopers LLP (PwC), on Technology in Audit in order to stay abreast of developments in this evolving area. As usual, our external and internal auditors joined the meetings throughout the year, together with a number of employees from across the business. We continue to find this incredibly valuable as it allows us to see the pool of talent within the Company and facilitates a greater depth of discussion and debate on some specialist topics.

In 2025, we were joined by:

• the Head of Finance for the Group and Group Financial Controller to consider the accounting judgements and treatments that have been adopted for particular transactions;
• the Head of Legal and Company Secretary, who provided updates on relevant legal and regulatory matters as well as the work of the Group Legal function;
• the Head of Corporate Finance and Director of Group Tax, who provided an update on developments in the current tax landscape, the Group’s tax strategy and an overview of significant tax issues or changes that could potentially impact the Group’s tax charge;

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Audit Committee Report continued

Meetings continued

• the Director of Technology & Architecture, who delivered his annual update on developments in cyber security threats (including from AI) and the continued investments by the Company in response, and the current status of cyber security defences; and
• the Head of Insurance and Risk, who updated the Committee on the risk management process as well as the work undertaken to prepare for compliance with the new Provision 29 of the Code.

Regular updates were also provided to the Committee on internal controls and anti-bribery and corruption safeguards. In addition to scheduled meetings, I speak regularly with the Chief Financial Officer, Head of Finance for the Group, Group Financial Controller and Head of Legal and Company Secretary to discuss any topical issues that should be brought to the attention of the Committee.

Areas of focus in 2025

A comprehensive list of the Committee’s activities can be found on page 100. A major area of focus for the Committee during the year was the tender of the external auditor which is detailed further on page 104. Following a competitive tender process in line with the recommendations of the FRC’s Audit Committee and the External Audit: Minimum Standard, the Committee has recommended the reappointment of PwC as external auditor. As well as the external auditor tender, some specific highlights this year included detailed updates on:

• the Company’s risk management and internal controls framework in preparation for the introduction of Provision 29 of the Code, which comes into effect for the 2026 financial year;
• the work undertaken to ensure compliance with the Economic Crime and Corporate Transparency Act 2023, including the failure to prevent fraud offence; and
• the evolving requirements for the Group in relation to the emerging EU and UK sustainability reporting requirements.

Committee effectiveness

As part of the internal Board performance review, the operation of the Committee was considered (see pages 90 and 91) and was deemed to be operating effectively.

Discharge of responsibilities

The quality of debate and challenge amongst the Committee, management and the internal and external audit teams, together with the comprehensive information provided to the Committee, has assisted us in appropriately discharging our responsibility. I would like to thank all those who have contributed to the Committee this year for their efforts.

Looking ahead

In 2026, in addition to our usual work, the Committee will focus on:

• continuing to monitor the approach and progress made to ensure the Company’s compliance with Provision 29 which came into effect on 1 January 2026;
• monitoring the transition of Cushman & Wakefield as the Company’s UK valuers;
• keeping under review evolving sustainability reporting requirements in both the EU and UK; and
• monitoring the progress of preparation for, and the implications of, applying the new accounting standard IFRS 18 Presentation and Disclosure in Financial Statements, which will come into effect on 1 January 2027.

If you have any questions on the Audit Committee or the contents of this Report, do contact me at companysecretariat.mailbox@SEGRO.com.

Carol Fairweather
Chair of the Audit Committee

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What the Committee did in 2025

Throughout the year, the Committee has:

• reviewed and monitored the integrity of the Financial Statements including reviewing significant financial reporting judgements and estimates made by management, to ensure that the quality of the Company’s financial reporting is maintained, in the Company’s Half- and Full-Year Financial Statements;
• assessed the objectivity, independence and competence of the external valuer of the Group’s property portfolio and gained assurance around the valuation process;
• ensured compliance with applicable accounting standards, monitoring developments in accounting regulations as they affect the Group and reviewed the appropriateness of accounting policies and practices in place;
• ensured the processes followed to support the making of the going concern and viability statements remained robust and were correctly followed;
• advised the Board on whether the process supporting the preparation of the Annual Report taken as a whole, is appropriate to allow the Board to conclude that the Annual Report is fair, balanced and understandable and provides the information necessary to shareholders to assess the Group’s position, performance, business model and strategy;
• monitored matters relating to tax, including REIT status and other significant open matters;
• monitored the effectiveness of the Group’s risk management systems and considered the adequacy of the process being undertaken to identify risks and mitigate the exposure of the Group to them;
• reviewed the governance process and controls in place for large and complex projects;
• considered the approach taken to prepare for compliance with the new Provision 29 of the Code;
• reviewed cyber security processes and the continued investment in this area to respond to increasing trends in cyber threats, including those from AI;
• ensured appropriate safeguards were in place for the detection of fraud and prevention of bribery. This extends to responsibility for overseeing and monitoring the Group’s Anti-Bribery and Corruption policies and procedures contained in the Company’s Code of Business Conduct and Ethics;
• reviewed the Company’s key legal matters to ensure risk is being appropriately managed and mitigated;
• reviewed the adequacy of internal financial controls and broader internal control systems;
• analysed and challenged the results of internal audit reviews and management’s plans to resolve any actions arising from them, and further scrutinised the outcomes of certain of those actions, including receiving detailed updates from the Procurement and HR functions;
• led the external auditor tender and recommended to the Board the reappointment of PwC as external auditor;
• examined the performance of the external and internal auditors, their objectivity, effectiveness and independence, as well as the terms of their engagement and scope of the external and internal audit plans;
• reviewed and re-approved the Policy for Approval of Non-Audit Fees; and
• monitored the ratio and level of audit tonon-audit fees paid to the external auditor and agreed their remuneration for the year.

Financial reporting process

A key area of responsibility for the Committee is the monitoring of the integrity of the Company’s Financial Statements and any formal announcements relating to the Company’s financial performance, as well as reviewing any significant financial reporting issues and judgements contained therein. The Group has long-established internal controls and risk management systems in relation to the process for preparing the Financial Statements. Various checks on internal financial controls take place throughout the year, including internal audits which are detailed further on page 104. Developments in accounting regulations and best practice in financial reporting are monitored by the Company and, where appropriate, reflected in the Financial Statements. Training is also provided to the finance teams and the Committee is kept appropriately informed.

The financial reporting from each business (UK and Continental Europe) is reviewed by the Head of Finance for the business, following submission by the regional finance teams. The results of each business are subject to further review by the Group Finance function, including senior members of the Group Finance team, before being consolidated. The draft consolidated statements are reviewed by various individuals including those independent of the preparer. The review includes checking consistency internally, with other statements and with internal accounting records. The Committee receives reports from management and the external auditor on significant judgements, changes in accounting policies, and other relevant matters relating to the consolidated Financial Statements. The Committee and the Board review the draft consolidated Financial Statements.

Viability statement and going concern

The Committee is responsible for ensuring that the process put in place to allow the Board to make the viability statement on page 45 remains robust, in line with market practice and is correctly and properly followed. The Committee reviewed the process which included extended scenario analysis and is comfortable with the process followed to make the viability statement and has confirmed this to the Board. The Committee reviewed the recommendation setting out the support for adopting the going concern basis in preparing the Financial Statements. The Committee confirmed to the Board that the recommendation was appropriate. The Board’s statement is set out on page 42.

Fair, balanced and understandable

The Code requires the Board to confirm that it considers that the Annual Report, taken as a whole, is fair, balanced and understandable and provides the information necessary for shareholders to assess the Company’s position, performance, business model and strategy. In order to enable the Board to make this confirmation, the Audit Committee has oversight of the process which has been followed, whereby the section owners and an independent reviewer confirm that in their opinion and against an agreed list of criteria the Annual Report is fair, balanced and understandable. These criteria include:
* is the whole story presented, with key messages appropriately reflected?;
* does the Report properly provide the necessary information, with a good level of consistency, for stakeholders to assess SEGRO as a business?; and
* is the Report presented in straightforward language, easy to understand and within a clear framework?

The Committee reviewed the process that management had undertaken to make the statement, which included regular meetings of the Annual Report and Accounts Working Group during the drafting process to ensure a consistent approach, and confirmed to the Board that the processes and controls around the preparation of the Annual Report are appropriate, robust and consistent. The fair, balanced and understandable statement is made on page 127.

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Significant judgements made by the Committee in 2025

Significant matter	The action taken
Valuation of the property portfolio	Valuation is central to the business’ performance and is a significant estimate for the Committee as it is inherently subjective, because the valuer must make assumptions and judgements in reaching its conclusions. This is a recurring risk for the Group as it is key to its IFRS profitability, balance sheet portfolio value, net asset value, total property return, and employee incentives. It also affects investment decisions and the implementation of the Company’s Disciplined Capital Allocation Policy. It is included on the Risk Register as a potential key business risk.
	The Committee ensured that there was a robust process in place to satisfy itself that the valuation of the property portfolio by CBRE, a leading firm in the UK and Continental European property markets, was carried out appropriately and independently. The Chair of the Audit Committee met separately with CBRE in advance of the Committee meetings to review the valuation process in detail and ensure the valuer remained independent, objective and effective. Given the significance of this judgement, as in previous years, the full Board also met twice with CBRE to review, challenge, debate and consider the valuation process; understand any particular issues encountered in the valuation; understand the impact of climate change and sustainability requirements on valuations; and discuss the processes and methodologies used. The auditors also meet with the valuers, and they use the services of their own in-house property valuation expert to test the assumptions made by CBRE. They report to the Audit Committee on their findings. The Committee confirmed that it was satisfied that the valuation was not subject to undue influence and had been carried out fairly and appropriately, and in accordance with the industry valuation standards, and therefore suitable for inclusion in the Financial Statements. For details of the Group’s properties and related accounting policies see Note 1 and Note 13 of the Financial Statements. For details of the results of the valuation see Note 8 of the Financial Statements. For further information see page 130

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External auditor

PricewaterhouseCoopers LLP (PwC) has been the Company’s external auditor since the 2016 audit, and the Committee continues to enjoy a constructive working relationship with them. During the year, the Committee led the re-tender of the external auditor as stipulated by current regulation that requires a tender every 10 years, following which it recommended that PwC be reappointed for a further term. The tender process is detailed in full overleaf. Richard Porter has been the external audit partner since 2023. The Committee Chair has regular discussions with Richard and his PwC colleagues to consider matters as they arise throughout the year and the Committee regularly meets privately with Richard to discuss PwC’s work and observations on the Company. No areas of concern were raised during the year.

Oversight

PwC presented their audit plan for the year which the Committee considered and approved. The key areas of risk, which were primarily identified as areas of judgement and complexity, were highlighted by PwC and were consistent with those areas identified by the Committee. The level of audit materiality was also discussed and agreed. PwC presented a detailed report of their audit findings at the year end, which was reviewed and discussed. A review of the external auditor’s report was also undertaken by the Committee at the half year. As part of the reviews the Committee probed and challenged the work undertaken and the findings and the key assumptions made, with particular attention to the areas of audit risk identified.

Independence

The Company complies with the Competition and Markets Authority Order 2014 relating to audit tendering and the provision of non-audit services. There are no contractual obligations which restrict the Committee’s choice of external auditor or which put in place a minimum period for their tenure. Prior to the re-tender in 2025, the external audit was last tendered in 2015 following which the auditor changed in 2016 from Deloitte LLP to PwC.

Remuneration

The Committee considers the remuneration of the external auditor at least on a semi-annual basis and approves its remuneration. It also keeps under close review the ratio of audit to non-audit fees to ensure that the independence and objectivity of the external auditor are safeguarded. In 2025, fees for audit services amounted to £1.53 million and the non-audit fees amounted to £0.08 million. The reduction in non-audit fees from the prior year reflects a change in scope under the Corporate Sustainability Reporting Directive, which meant that work previously carried out by PwC in relation to this reporting was no longer required in 2025. The non-audit fee for 2025 equates to 5 per cent of the average audit fees of the last three years. The chart below sets out the ratio of audit to non-audit fees for each of the past three years:

	2025	2024	2023
Audit fees (£m)	1.53	1.58	1.39
Non-audit fees (£m)	0.08	0.20	0.19
Ratio of non-audit fees to audit fees (%)	5	13	14

The Committee has concluded that PwC remains independent and objective, and that the level of non-audit to audit fees is acceptable for 2025. PwC has provided written confirmation of its independence to the Committee. We have voluntarily provided details on the fees relating to the audit of the Group’s SELP joint venture with PSP Investments, for which PwC is the auditor, in Note 6(ii) to the Financial Statements.The Committee has no oversight or control over these fees as the SELP joint venture operates totally independently and is not controlled by the SEGRO Group or the Committee. The fees are provided solely for information purposes and do not form part of the audit fees, nor are they included in the calculation to determine the ratio of audit to non-audit fees on an annual or three-year basis for the SEGRO Group.

Policy for approval of non-audit fees

The Committee considers the Policy for Approval of Non-Audit Fees (the Policy) on an annual basis to ensure that it remains fit for purpose. The Policy, which is available on our website at www.SEGRO.com, was updated in December 2025. The Committee is satisfied that the Policy is appropriate and in line with industry best practice. The Policy sets out the very limited circumstances where PwC may be appointed to carry out non-audit services but only with the prior consent of the Committee or the Committee Chair, through delegation of authority from the Committee. There must be an obvious and compelling reason why PwC should be appointed and there should be no threat to the independence of PwC. The impact on non-audit to audit fees must also be considered, and fees incurred for non-audit work must not exceed 70 per cent of the average of the audit fees paid for the last three consecutive years. All non-audit fees are reported to the Committee.

Effectiveness

The Committee assesses the effectiveness of the external audit process on an annual basis, by taking into account the views of management involved in the audit and by reviewing a number of factors including:
* performance in discharging the audit and half-year review;
* independence and objectivity;
* robustness of the audit process, including how the auditor demonstrated professional scepticism and challenged management’s assumptions particularly in relation to the valuation of the Group’s portfolio;
* the quality of service and delivery, including appropriate resources and skills for the complexity of SEGRO’s audit; and
* remuneration.

The Committee also noted the results of the PwC Audit Quality Review inspection results 2024/25. Having considered the above, the Committee believes the audit to be effective with an appropriate level of challenge.

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External auditor continued

External auditor tender

During the year, the Committee completed a competitive tender process in accordance with the FRC’s Audit Committees and the External Audit: Minimum Standard. A subcommittee comprising members of the Committee and led by the Committee Chair was established in 2024 to oversee the tender process and make a recommendation to the Committee. During 2024, following review and consideration of a number of prospective audit firms (including challenger firms), the Committee invited a selection of firms to participate in a formal audit tender. Two firms elected to participate, with other firms declining due to independence or capacity challenges. The two firms were invited to submit a proposal in 2025 and both were provided with appropriate and equal access to information and key stakeholders, and were assessed against transparent, non-discriminatory criteria with a clear focus on audit quality. A tender panel comprising members of the sub-committee and senior members of the finance team reviewed the tender documentation and evaluated the firms’ written proposals and formal presentations. The evaluation considered
* overall audit quality;
* the level of independent challenge expected and demonstrated;
* knowledge and experience of the real estate sector;
* understanding of SEGRO’s business and associated risks;
* capability and competence of the proposed lead partner and audit team, including specialist resources;
* pan-European capability;
* the proposed audit approach, including reliance on controls and the use of technology (including AI) and data analytics;
* the approach to resolving judgemental issues and the quality and availability of technical accounting resources;
* proactivity and innovation, including how the audit could evolve over time;
* communication and reporting;
* value-added insights; and
* the commitment and motivation demonstrated throughout the tender process.

At the conclusion of the process, the Committee, based on the recommendation of the sub-committee, determined that PwC was best placed to deliver a high-quality, independent audit. Accordingly, the Committee recommended to the Board that PwC be reappointed as external auditor for the 2026 financial year. This recommendation was considered and then accepted by the Board, and will be put to shareholders at the forthcoming AGM.

Internal auditor

The Committee believes that given the Company’s size and structure, using a third party to perform the internal audit function continues to be the most appropriate model. This provides independent challenge of management and gives access to a wide range of expertise. KPMG has performed the role since its appointment in 2007 and reappointments in 2014 and 2022 following a tender. During their tenure, there have been a number of rotations of lead partners and audit managers to ensure that a fresh perspective is given, and their independence and scrutiny are maintained. Topics included in the internal audit plan for 2025 were selected based on a review of the Group’s principal risks, the timing of the previous audit and advice on market insights from KPMG. Significant areas of risk are subject to internal audit on a cyclical basis. The proposed internal audit plan for 2025 was considered and approved by the Committee in December 2024, and was kept under review during the course of the year. Internal audits during 2025 included the following:
* data management and governance;
* REIT and SIIC compliance;
* business continuity planning and disaster recovery;
* acquisitions and disposals of investment properties;
* Human Resources;
* Payroll;
* Procurement; and
* IT Vendor management.

Each internal audit during 2025 confirmed that no significant control issues were identified. However, a number of process and minor control improvement points were identified with follow up actions and timelines which were regularly monitored by management and the Committee. Feedback on the performance of KPMG for each internal audit is given by the Company and was largely positive and no areas of particular concern have been brought to the Committee’s attention. The lead KPMG partner attends Committee meetings to present KPMG’s report and the Committee also meets privately with him during the year. No matters of concern were raised in the private meetings.

Effectiveness

The Committee believes that both the process for determining the internal audit programme, and the programme itself, are appropriate and effective, and as in previous years the programme will be amended during the year if required to react to any new events or information. The Committee is satisfied that the internal audit function continues to perform effectively.

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Valuers

The single most important judgement that the Committee and the Board has to make is the value of the Group’s portfolio. The Committee is assisted in reaching this judgement by its external valuer, CBRE, who have held this position since 2012. CBRE was reappointed in 2021 for a further four-year term, and the Committee believes that it continues to be effective in its role. The effectiveness of the Group’s valuers is assessed through regular meetings during the year with the Chair of the Audit Committee and supplemented by additional sessions with management, which focused on the following:
* independence and objectivity;
* experience and qualification of the valuation team;
* consistency of approach across each of the countries in which the Group operates; and
* quality of data and materials, including the two presentations to the Board.

As a result, the Committee concluded that the external valuers performed to a high standard, were independent, and that the well-run process delivered a robust set of valuations. The new RICS requirement for the mandatory periodic rotation of UK valuers, will come into effect for the Group’s UK-based assets for the June 2026 valuation. In December 2024, the Board considered and agreed the proposed approach and timeline for the tender process for new valuers for the UK portfolio. An extensive and competitive tender process was undertaken by management during 2025. Five firms were invited to submit written proposals following which a shortlist of candidates progressed to panel interview with members of senior management from across the business in order to provide differing perspectives. A recommendation was subsequently made to appoint Cushman & Wakefield as the valuers of the UK portfolio from the June 2026 valuation, which was approved by the Board. The Board further agreed to retain CBRE as the valuer for the Continental European portfolio, as permitted by the RICS requirement. On-boarding of Cushman & Wakefield began in 2025 in order to prepare for the change and the Committee will monitor the transition to the new UK valuers during 2026.

Internal controls and risk management

Risk

The Board recognises that effective risk management is key to the long-term sustainable success and future growth of the business and the achievement of the Group’s strategic objectives (see pages 56 to 68). It is ever aware of the need to ensure that new and emerging risks, as well as the more established principal risks, are adequately managed and mitigated.Risk management is therefore embedded in the Company’s decision making and culture, and robust systems have been put in place to ensure this remains the case. There is an ongoing process for identifying, evaluating and managing the principal risks faced by the Group, which has been in place during the year, together with the means for identifying those emerging risks which may impact the Group in the future. These emerging risks are discussed throughout the business by the appropriate working groups, conducting both horizon scanning and discussions at a more granular level. The Group Risk Committee monitors and reports on the Company’s approach to risk management as detailed further on pages 56 to 58. The Board assumes responsibility for the effective management of risk across the Group, determined by its risk appetite, as well as ensuring that each business area implements appropriate internal controls. The Committee reviews regularly the effectiveness of the risk management process on behalf of the Board and is satisfied that it remains robust for the financial year in question and up to the date of this Annual Report.

Internal controls

The Committee is responsible for reviewing the adequacy and effectiveness of internal control systems (covering all material controls including financial, operational and compliance controls and risk management systems) on behalf of the Board. At each meeting, the Committee receives an update on internal controls and regularly reviews the adequacy and effectiveness of the Group’s internal control systems through various activities including:

• reviewing the effectiveness of the risk management process;
• reviewing and challenging management’s self-assessment of the internal controls framework; and
• reviewing the work undertaken by the internal and external auditor, in relation to internal controls.

The Committee also receives at each meeting an anti-bribery and corruption report to enable it to satisfy its responsibility for ensuring that adequate safeguards for the prevention of bribery and corruption and detection of fraud are in place. Details of how matters of concern can be reported and will be investigated are on page 80. No matters of concern were reported during the year, either through the Company’s independent whistleblowing reporting service, Safecall, or through internal channels. The Group’s internal auditor, KPMG, also facilitated a Fraud Vulnerability workshop with a number of stakeholders from across the business, to discuss the key fraud risks that could potentially impact SEGRO and the mitigating controls in place. An update was provided to the Committee at the December 2025 meeting.

Outcome

The framework for monitoring and maintaining internal controls is considered appropriate for a Group of SEGRO’s size and complexity and is designed to provide reasonable assurance against material misstatement or loss. On the basis of the Committee’s work, it confirms that it has not been advised of, or identified, any failings or weaknesses which it regards to be significant in relation to the Group’s internal control systems during the year. It also confirms that the Group’s internal control systems have been in place for the year under review and up to the date of approval of this Annual Report and are in accordance with the Guidance on Risk Management, Internal Control and Related Financial and Business Reporting issued by the Financial Reporting Council.

Provision 29

The requirement of Provision 29 of the Code will come into effect in the 2026 financial year. The Group Risk function, with support from the internal auditor, has led the work to ensure the Board will be in a position to comply with this provision and has provided updates to the Committee during the year.

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Ensuring fair and responsible pay

Committee membership
| | |
| :--- | :--- |
| Simon Fraser (Chair) | Mary Barnard |
| Sue Clayton | Carol Fairweather |
| Linda Yueh | |

During the year, the Committee has acted in accordance with its Terms of Reference, which were last updated in February 2024 and can be found at www.SEGRO.com

Letter from the Chair of the Remuneration Committee

Dear shareholder,

On behalf of the Remuneration Committee (the Committee), I am pleased to present our Remuneration Report for 2025. The role of the Committee is to determine the remuneration policies and practices which promote the long-term sustainable success of the Company, which are aligned with the Company’s Purpose and Values and its strategy. The following pages set out how the Committee has discharged its responsibilities, as well as other key areas of focus in 2025.

Composition and Committee meetings

The Committee continues to be comprised entirely of Independent Non-Executive Directors. There have been no changes to the composition of the Committee during the year, providing stable oversight of the Company’s remuneration. The Committee had three scheduled meetings during the year and two additional meetings. Details of Committee member attendance at these meetings can be found on page 76. The Chief Executive, Chief Financial Officer and the Group HR Director attend Committee meetings by invitation as required, except when their own remuneration is being discussed. The Committee’s external remuneration adviser also attends Committee meetings as required. Following each Committee meeting, I provide an update to the Board on the Committee’s activities.

Key areas of focus in 2025

A major area of focus for the Committee in 2025 was the renewal of our Directors’ Remuneration Policy (the Policy), which was submitted to shareholders for approval at the 2025 Annual General Meeting (AGM). The new Policy included an increase in annual bonus opportunity and was supported by c.97 per cent of shareholders at the AGM. Another area of focus was the approval of the exit arrangements for Soumen Das, who retired as an Executive Director and Chief Financial Officer on 31 December 2025, and the approval of the recruitment package for Susanne Schroeter, who was appointed as an Executive Director and Chief Financial Officer on 1 December 2025. During the year, the Committee also approved Executive Directors’ variable remuneration payments in respect of 2024, having assessed performance against targets and confirmed that the outcomes were a fair reflection of business performance throughout the respective performance periods, and annual salary increases for the year ahead. The Committee also approved the grant of awards under the Company’s all-employee share schemes and reviewed the wider workforce remuneration framework to ensure this remained aligned with the structure of remuneration for the Executive Directors.

Remuneration and alignment to Company performance

As covered elsewhere within this Annual Report, SEGRO delivered a strong operational performance during 2025, contracting a record level of new rent and making positive progress against our key operating metrics. This was despite a broader business environment that was once again impacted by periods of macroeconomic and geopolitical volatility, including the uncertainty caused by potential tariffs, which resulted in prolonged decision making by occupiers for much of the first half of the year.

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Directors' Remuneration Report

Remuneration and alignment to Company performance continued

SEGRO leveraged the expertise of its market-leading operating platform, with its strong customer relationships and extensive asset management experience, to deliver strong performance during this period of lower demand for new space. Active asset management initiatives resulted in the capture of a significant amount of reversion, retention of customers, increased occupancy and strong earnings growth. As some of this uncertainty abated, momentum started to build once again in occupier markets, as the longer-term structural trends returned to the fore and supported increased demand for well-located, modern and sustainable space. This resulted in increased enquiries across all of our markets and translated into a strong end to the year in terms of lease and pre-let signings. As a result of this activity, adjusted profit before tax (Adjusted PBT) increased by 8.3 per cent to £509 million and adjusted earnings per share increased by 6.1 per cent to 36.6 pence. Adjusted NAV per share increased to 925 pence, and the Company has maintained a strong balance sheet with a loan to value ratio of 31 per cent. The Board is recommending a final dividend of 21.4 pence per share, making the full-year dividend 31.1 pence per share, an increase of 6.1 per cent on the prior year. Further information on the Company’s performance during the year can be found in the Chief Executive’s statement on pages 12 to 17 and the Strategic Report on pages 11 to 68. A summary of the Group’s key financial metrics relating to Executive remuneration in 2025 can be found on page 109 and information regarding the alignment of remuneration outcomes to our strategy and performance can be found on pages 110 and 111.

Remuneration in 2025

Directors’ remuneration in 2025 was paid in line with the Company’s Policy, which was approved by shareholders at the 2025 AGM. The remuneration framework for both our Executive Directors and the wider workforce is aligned with the strategic direction and performance of SEGRO as well as the interests of our stakeholders, and this is set out on pages 110 and 111. As indicated on page 118, the 2025 annual bonus for the wider workforce is aligned to Group-wide Adjusted PBT, rent roll growth (RRG), and Responsible SEGRO (ESG) measures, as well as the achievement of personal objectives.The weighting of the personal performance measure varies based on seniority and makes up a larger percentage of the overall bonus for more junior employees, allowing for sufficient opportunity to recognise individual performance in the annual bonus structure.

Variable remuneration

Taking into account our operational results and our performance versus the financial and non-financial KPIs that were within management’s control during a year of continued macroeconomic and geopolitical challenge, the Committee has confirmed the following performance-related payments to the Executive Directors in respect of 2025:

2025 annual bonus

The annual bonus was subject to Adjusted PBT (37.5 per cent), RRG (37.5 per cent) and ESG targets (25 per cent). Based on performance during the year, the 2025 annual bonus payment will be 73.8 per cent of maximum (see page 114 for more details). Since the ESG metrics were introduced into the bonus structure in 2022, this is the first year that the Company has achieved a 100 per cent payout against its ESG targets.

2023 LTIP performance

The LTIP structure is designed to ensure that senior management reward is well aligned with shareholder returns. Vesting is calculated by reference to three equally-weighted performance conditions. Based on actual total shareholder return (TSR) over the performance period, and on the total property return (TPR) and total accounting return (TAR) data currently available, it is expected that none of the 2023 LTIP will vest. Final vesting under the 2023 LTIP will be determined once the TPR and TAR information is available in quarter two of 2026. Any difference in the vesting outcome will be disclosed in the 2026 Annual Report. Any shares that vest as a result of the 2023 LTIP awards are subject to a two-year post-vesting holding period.

The performance period of January 2023 to December 2025 coincided with a period of geopolitical uncertainty and macroeconomic volatility, with high inflation leading to high interest rates, and a resultant impact on investment and occupier markets. After very strong outperformance by SEGRO up to the end of 2022, the wider industrial and logistics property sector, and SEGRO in particular, saw a higher correction than other property sub-sectors and businesses in the following three years. Accordingly, SEGRO underperformed on TSR and TAR relative to other listed UK REITs. TPR has underperformed its benchmark mainly due to SEGRO’s weighting to prime assets, which have a lower income yield but higher growth potential which should offer the opportunity for better future returns.

Exercise of discretion and judgement

When approving the formulaic outcomes under the annual bonus and LTIP, the Committee considered whether or not they were a fair reflection of the underlying performance of the business. The Committee was satisfied that the performance conditions were reflective of business performance in the respective performance periods and that no overriding adjustment to the outcomes would have been appropriate. Therefore, the Committee did not exercise discretion in relation to the operation of the Policy during the year. The Committee is comfortable that the actions taken on pay during the year across the Company were appropriate and balanced the interests of all stakeholders, and that the Policy operated as intended.

2025 LTIP award

The Chief Executive and former Chief Financial Officer, Soumen Das, received an LTIP award in February 2025. The LTIP award will vest following a three-year performance period, based on performance against three equally-weighted performance conditions in line with the Policy. Further details can be found on page 116. The Chief Financial Officer, Susanne Schroeter, received an LTIP Award on 2 December 2025 with the same three equally-weighted performance conditions.

Directorate changes

The Company announced on 30 April 2025 that Soumen Das would be stepping down as Chief Financial Officer and Executive Director with effect from 31 December 2025. On 1 December 2025, Susanne Schroeter joined the Company as Chief Financial Officer and an Executive Director. Further details on her terms of appointment are set out on page 123 of this Report but briefly comprise:
* base salary of £550,000 which, at 10 per cent less than the former Chief Financial Officer's salary, provides scope for salary progression in future years under the Policy;
* equivalent pension allowance, car allowance and taxable benefits;
* equivalent ongoing annual bonus and LTIP opportunity (compared with that envisaged for her predecessor). Susanne was eligible for an annual bonus for the 2025 financial year, pro-rated for the period of her employment, and received an initial LTIP grant of two-thirds of the Policy maximum of 250 per cent;
* a cash payment of £77,000 in April 2026 to compensate Susanne for the amount forfeited under the 2025 annual bonus plan at her former employer;
* a recruitment LTIP award with a value of £750,000, granted on 2 December 2025 with vesting in two tranches (50 per cent on 31 March 2027 and 50 per cent on 31 March 2028, subject to continued employment). This award compensates Susanne for an equivalent LTIP award forfeited upon leaving her former employer; and
* minimum shareholding requirement (equivalent to 250 per cent of base salary).

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Directorate changes continued

The payments for loss of office relating to Soumen Das are also detailed on page 122 of this Report. When approving these arrangements for Soumen Das and Susanne Schroeter, the Committee complied with the terms of the Policy.

Remuneration in 2026

The Committee has reviewed the Executive Directors’ variable remuneration and annual salary increases for 2026.

Salary reviews

The Committee reviewed the salaries of Executive Directors taking into consideration the increases for all other employees as part of the process. Our salary budget across the business is 3.5 per cent higher for 2026 than 2025, excluding the impact of changes in employee numbers. Reflecting their performance and that of the business, we have approved salary increases of 3 per cent for the Executive Directors to take effect from 1 April 2026 (see page 112).

2026 bonus measures

In accordance with the Policy, for 2026, the Chief Executive will have a maximum annual bonus opportunity of 200 per cent of salary and the Chief Financial Officer will have a maximum annual bonus opportunity of 150 per cent of salary. Targets for the annual bonus are set by the Committee at the beginning of the year. The weighting of the annual bonus performance measures are made up of 75 per cent financial measures, comprising Adjusted PBT (37.5 per cent) and RRG (37.5 per cent, made up of 18.75 per cent standing (existing) stock and 18.75 per cent development), and 25 per cent non-financial measures linked to our Responsible SEGRO (ESG) ambitions. Following a review of the metrics used to calculate the bonus and their alignment to the Company’s strategy, the Committee concluded that no changes to the measures were required.

2026 LTIP awards

The Committee intends to make LTIP awards in line with the Policy levels in 2026, such that the Chief Executive will receive a maximum LTIP award of 300 per cent of salary and the Chief Financial Officer will receive a maximum LTIP award of 250 per cent of salary.

Review of LTIP performance measures

The Committee carefully considers the choice of performance measures and targets each year. A detailed review was carried out for all incentives for 2026 to ensure alignment with strategy and to maximise the effectiveness of the incentives in driving shareholder value, while operating in accordance with the Policy. One of the outcomes of this review was the decision to ensure that absolute earnings growth is incentivised alongside the balance sheet-driven metrics in the LTIP. Noting the considerable overlap between the relative TAR and TSR measures, the Committee determined that the TAR measure should be replaced with absolute EPRA earnings per share (EPS) growth. The calculation of EPRA EPS will be subject to any adjustments the Committee deems appropriate, to ensure measurement of the underlying performance of the business. The Committee believes that this will incentivise management to deliver EPS growth and, consequently, grow the dividend in a sustained manner over the three-year performance period of each LTIP award. The Committee was satisfied that the other measures, namely relative TSR and relative TPR, remain suitable for the Company’s long-term incentive strategy.

For the 2026 LTIP award, the Committee agreed on a range of 3 to 8 per cent per year growth in EPRA EPS, having considered external analysts’ forecasts, internal expectations in the context of the current macroeconomic and interest rate environment, and market practice within the UK REIT market. As a REIT pays out almost all of its net income, it does not retain profits to invest for future growth, unlike companies in other sectors. Consequently, the Committee considers this level of stretch to be appropriate to the Company’s situation. However, the Committee will review the range on an annual basis to ensure that it is reasonable against both internal and external forecasts.

Stakeholder engagement

The changes to the LTIP performance conditions did not require approval by shareholders, as the changes were within the terms of the Policy approved at the 2025 AGM. However, the Committee engaged with 20 of our largest investors (representing approximately 60 per cent of the register), as well as Institutional Shareholder Services (ISS), the Investment Association (IA) and Glass Lewis, to inform them of our intentions before publishing these changes in this Report.The Committee valued the responses received from our investors and proxy agencies, which raised no immediate concerns.

Workforce considerations and engagement

As part of the Policy review conducted during the year, the Committee considered pay alignment across the business to ensure everyone is rewarded fairly and that workforce pay aligns with Executive remuneration. During the year, the Non-Executive Directors held a series of workforce engagement sessions with a cross-section of employees including one which covered the alignment of Executive remuneration and wider workforce pay. Further details on this engagement is set out on page 119.

Committee effectiveness

As part of the annual Board performance review, the operation of the Committee was considered and it was concluded that the Committee continues to operate effectively in accordance with its Terms of Reference, which are available to view at www.SEGRO.com.

Looking ahead

The key areas of focus for the Committee in 2026 will be:
* ensuring that the vesting of long-term incentives in 2026 accurately reflects the performance of the Executive Directors and the experience of stakeholders;
* reviewing progress against, and the continued appropriateness of, the performance conditions and weightings of the annual bonus for Executive Directors; and
* monitoring emerging trends in remuneration and corporate governance as a whole.

Conclusion

At the 2026 AGM, the Directors’ Remuneration Report will be submitted to shareholders for an advisory vote. I am grateful for the engagement and support provided by shareholders during the year and look forward to receiving your continued support at the AGM. If you have any questions about remuneration generally, or the contents of this Report, do contact me at companysecretariat.mailbox@SEGRO.com.

Simon Fraser
Chair of the Remuneration Committee

About this Report

In this Report, we have used colour coding to represent the different elements of Executive Director remuneration, and for information relating to Non-Executive Director fees and workforce remuneration.

Executive Directors
* Salary
* Taxable benefits
* Pension benefits
* Single year variable – Bonus, including DSBP
* Multiple year variable – LTIP
* Other – SIP and Sharesave

Non-Executive Directors
* Non-Executive Directors

Workforce Remuneration
* Workforce remuneration

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Directors' Remuneration Report continued

Chief Executive

Workforce remuneration	£2,153k
2025 Single Figure
1,067% of salary held in SEGRO plc shares by Chief Executive (Policy: 400%)
3% Salary increase received by the Chief Executive in 2025
17:1 CEO Pay Ratio (Median Pay Ratio)
£3,600 worth of free shares received by all eligible employees in 2025
91.6% of employees participate in one or more all-employee share scheme
c.3% The average UK employee salary increase in 2025

Group performance metrics

Metric	2025	2024
Adjusted profit before tax	£509m	£470m
Rent roll growth	£71m	£56m
Total accounting return	5.3%	3.1%
Total property return	5.7%	5.2%
Total shareholder return	7.4%	(18.3)%

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Directors' Remuneration Report continued

What the Committee did in 2025

Throughout the year, the Committee has:
* approved the exit arrangements for Soumen Das, who retired from the Board as an Executive Director on 31 December 2025, and approved the recruitment package for Susanne Schroeter, who was appointed as an Executive Director on 1 December 2025;
* conducted a detailed review of the Company’s LTIP performance measures and engaged with shareholders and key proxy agencies to outline the Committee’s rationale for the change;
* approved the Executive Directors’ annual salary increases, the 2024 bonus payments and the outturn of the 2022 LTIP awards, as well as the 2025 bonus and 2025 LTIP targets;
* approved the 2025 SIP, GSIP and Sharesave awards;
* reviewed and approved the Chair’s fee;
* reviewed workforce pay to ensure that it continues to to be aligned with the structure of the remuneration for Executive Directors;
* noted the Group-wide all-employee 2025 salary review and considered salary increases, bonus and LTIP awards for the Leadership team; and
* received remuneration market updates from our external remuneration adviser on emerging themes and best practice.

Remuneration at a glance

Our ambition is ‘to be the best property company’ and our remuneration structure is therefore designed to align delivery of annual and long-term outperformance of the Company with the priorities of our key stakeholders. This performance is assessed based on financial and non-financial KPIs linked to the four pillars of our corporate strategy. The 2025 remuneration structure and KPIs are listed below and more detail including specifically how each KPI is linked to the strategic pillars and remuneration can be found on pages 26 and 27.

Strategy key	Responsible SEGRO	Disciplined capital allocation	Operational excellence	Efficient capital and corporate structure
Stakeholder key	Customers	Communities	Suppliers	Investors
Read more about our KPIs on pages 26 and 27	Read more about our strategy on pages 18 and 19

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Our remuneration approach in 2025	Element and purpose	Performance measure KPIs
Fixed salary, pension and benefits	Fixed salary, pension and benefits that reflect the Executives’ responsibilities and ensure we can attract and retain the talent that is needed to deliver Group performance	‘
Annual bonus including Deferred Share Bonus Plan (DSBP)	Variable Incentives that focus Executives on achieving stretching and rigorous annual targets that support strategy, in particular in relation to income generation, ESG ambitions and recurring profit	Adjusted PBT (37.5%)
		Rent Roll Growth (37.5%)
		ESG (25.0%)
Long Term Incentive Plan (LTIP)	Variable Incentives that reward the execution of strategy, creating sustainable performance over a three-year performance period to drive long-term returns for shareholders	Relative TSR over 3 years (33.3%) Total shareholder return
		Relative TAR over 3 years (33.3%) Total accounting return
		Relative TPR over 3 years (33.3%) Total property return
Share Incentive Plan (SIP)	Variable To provide a market competitive remuneration package and to encourage employee share ownership across the Group	Employee, customer and supplier volunteering days (Volunteering days)

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Our remuneration approach 2025 remuneration outcome
Total remuneration	Link to strategy	Link to stakeholders	Annual bonus outcome	Weighting
			LTIP award payout	SIP award
			80.1%	0%
			100.0%
	Adjusted PBT
	RRG Standing Stock	0%
	RRG Development	0%
	ESG	0%
	TSR
	TAR
	TPR
	Employee, customer and supplier volunteering days	100%
Chief Executive – David Sleath	£2,153k (‘000)	l Fixed pay £935	l Short-term bonus £1,213	l LTIP —
Outgoing Chief Financial Officer – Soumen Das	£1,390k (‘000)	l Fixed pay £704	l Short-term bonus £677	l LTIP —
Incoming Chief Financial Officer – Susanne Schroeter	£182k (‘000)	l Fixed pay £53	l Short-term bonus £129	l LTIP —

How we intend to apply the Policy in 2026

Summary of the Directors’ Remuneration Policy and how we intend to apply the Policy in 2026

The current Directors’ Remuneration Policy was approved by shareholders at the 2025 AGM. The following table presents a summary of the key elements of the Policy and how we intend to apply it in 2026. The full Policy is available in the 2024 Annual Report, and on our website at www.SEGRO.com.

Element of pay	Summary of Policy	How we intend to apply the Policy in 2026
Salary	Normally reviewed each year in the context of total remuneration, taking into account the Directors’ responsibilities, experience and performance, pay across the Group and market competitiveness.	From 1 April 2026, the Executive Directors will receive an increase in salary of approximately 3 per cent: • David Sleath – £846,800 • Susanne Schroeter – £566,500
Benefits	Include but not limited to car allowance, life assurance, disability insurance, private medical insurance, and health screening.	In line with Policy.
Pension	Contribution to pension arrangements or cash in lieu of pension to the value of 12 per cent of base salary, in line with the UK workforce.	In line with Policy. Executive Directors will receive cash in lieu of pension to the value of 12 per cent of their base salaries, which is in line with the UK workforce.
Bonus	Maximum opportunity of 200 per cent of salary. Awarded annually and paid for performance over the full financial year. 50 per cent of any bonus awarded is deferred into shares in the DSBP for three years before vesting. Discretion, malus, and clawback may apply.	Maximum opportunity of 200 per cent of salary for the Chief Executive and 150 per cent of salary for the Chief Financial Officer. Subject to the following performance conditions: • Adjusted PBT (37.5 per cent) • Rent Roll Growth – Standing (Existing) Stock (18.75 per cent) – Development (18.75 per cent) • ESG, including carbon emission reduction, customer service and employee engagement (25 per cent) As targets are considered commercially sensitive, they are not disclosed at this time, but will be in next year’s Report.
LTIP	Maximum opportunity of 300 per cent of salary.

Performance condition	Threshold (20% vests)	Intervening (80% vests)	Max (100% vests)
Relative TSR vs. FTSE 350 REIT index (33.3%)	Benchmark	N/A	Benchmark + 6% p.a.
Relative TPR vs. MSCI All Industrial Country (33.3%)	Benchmark	N/A	Benchmark + 1.5% p.a.
Absolute EPRA EPS (33.3%)	3% growth	6% growth	+8% growth

Shareholding guidelines

Executive Directors are required to build, hold, and retain a certain level of shareholding (including after leaving employment). Shareholding guideline of 400 per cent of salary for the Chief Executive and 250 per cent of salary for the Chief Financial Officer.

NED fees

Fees are reviewed, normally annually, taking into account relevant market data. Additional fees are payable to reflect the time commitments and additional responsibilities. Non-Executive Directors do not participate in any performance-related remuneration and do not receive any benefits, other than reimbursement of business-related expenses (and any tax that might be charged thereon). From 1 January 2026, the Chair and Non-Executive Directors’ fees were increased by approximately 3 per cent and in line with the Executive Directors’ salary increase. The fees with effect from 1 January 2026 are therefore:
* Andy Harrison – £397,700
* Mary Barnard – £75,400
* Sue Clayton – £75,400
* Carol Fairweather – £114,200
* Simon Fraser – £96,000
* Marcus Sperber – £75,400
* Linda Yueh – £75,400

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How we applied the Policy in 2025

A summary of how the Directors’ Remuneration Policy was applied for the year ended 31 December 2025 is set out below.

Executive Directors’ single total figure of remuneration (Audited)

Chart 1: Executive Directors’ single total figure of remuneration for 2025 (£000)

	Salary	Taxable benefits	Pension benefits	Total fixed	Single year variable – Bonus, including DSBP	Multiple year variable – LTIP	Other – SIP and Sharesave	Total variable	Total
David Sleath
2025	816	21	98	935	1,213	—	5	1,218	2,153
2024	794	21	95	910	678	—	5	683	1,593
Soumen Das$^1$
2025	607	24	73	704	677	—	9	686	1,390
2024	591	20	71	682	504	—	5	509	1,191
Susanne Schroeter$^2$
2025	46	2	5	53	129	—	—	129	182

$^1$ Soumen Das ceased to be an Executive Director of the Company with effect from 31 December 2025. Further details can be found on page 122.
$^2$ Susanne Schroeter was appointed as an Executive Director of the Company on 1 December 2025 and the figures in Chart 1 have been pro-rated accordingly. Susanne’s 2025 bonus includes a recruitment bonus of £77,000. Further details can be found on page 123.
$^3$ For further information on the 2025 multiple year variable figure (which relates to the 2023 LTIP award), see Chart 5 on page 115.
$^4$ The ‘Other’ figure for Soumen Das in 2025 includes a payment of £3,527 for accrued but unused annual leave entitlement as at 31 December 2025.

Salary (Audited)

From 1 April 2025, the Executive Directors received an increase in salary of approximately 3 per cent. Susanne Schroeter was appointed as Chief Financial Officer and Executive Director on 1 December 2025 on a base salary of £550,000.

Chart 2: Salary

Base salary as at 1 April 2025
David Sleath	£822,100
Soumen Das $^1$	£611,300
Susanne Schroeter	£550,000

$^1$ Soumen Das stepped down as Chief Financial Officer and Executive Director with effect from 31 December 2025.

Taxable benefits (Audited)

Taxable benefits include private medical healthcare, plus a cash allowance in lieu of a company car. Executive Directors are also entitled to life assurance which is not a taxable benefit.

Pension benefits (Audited)

Each of the Executive Directors received cash in lieu of pension as detailed in Chart 1. Throughout the year, each of the Executive Directors received a cash allowance of 12 per cent of base salary.

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Single year variable – Bonus, including DSBP (Audited)

2025 Bonus (Audited)

The 2025 bonus comprised three components: adjusted profit before tax (Adjusted PBT) 37.5 per cent; rent roll growth (RRG) 37.5 per cent, consisting of standing (existing) stock (18.75 per cent) and development (18.75 per cent); and ESG (25.0 per cent, comprising four equally-weighted metrics). The performance period for Adjusted PBT, RRG and ESG starts from 1 January. The Adjusted PBT and RRG outturns were calculated using a constant exchange rate and also include adjustments for specific items (including acquisitions and disposals made during the year) in accordance with the bonus scheme rules as approved by the Committee. The ESG element comprises four equally-weighted Responsible SEGRO measures in accordance with the bonus scheme rules as approved by the Committee.

Bonus payments are calculated as a percentage of Executive Directors’ salaries as at 31 December of the relevant year. As explained on page 107, the Committee assessed the underlying performance of the business and concluded that no discretion should be exercised in respect of the 2025 bonus. The 2025 bonus targets and performance against them are set out below. Based on performance over the period, the payout will be 73.8 per cent per cent of the maximum, which will be paid in April 2026. As result, David Sleath will receive a payout of approximately £1.2 million, Soumen Das will receive approximately £0.7 million and Susanne Schroeter will receive approximately £0.1 million (including a £77,000 recruitment bonus, further details can be found on page 123). The bonus is paid 50 per cent in cash with the remainder awarded as shares under the DSBP. Shares will vest in three years subject to continued employment or good leaver status. The 2025 DSBP will be awarded in April 2026 and will vest on the third anniversary of the award date in April 2029.

Chart 3: 2025 Bonus

Bonus element	Threshold (25%)	Target (50%)	Stretch Target 90%	Maximum (100%) payout	Actual	Weighting	Outcome achieved
Financial element
Adjusted PBT against target	£505.0m	£510.1m	£520.2m	£530.3m	£517.7m	37.5%	80.1%
Rent Roll Growth (RRG)
Standing Stock against target	£24.5m	£30.6m	£33.7m	£35.2m	£41.3m	18.75%	100%
Rent Roll Growth (RRG) Developments against target	£29.6m	£39.5m	£49.4m	£51.4m	£28.5m	18.75%	—%
Non-financial element
ESG						25.0%	100%
– Improving visibility of Scope 3 operating carbon emissions in our buildings	75%	90%	91%	100%
– Reducing embodied carbon emissions	308kg	292kg	271kg	2
– Providing excellent customer service	80% customer satisfaction achieved from surveys	88% customer satisfaction achieved on average from surveys during the year	91% satisfaction	100%
– Achieving high levels of employee engagement and inclusion	25% payout for achieving Employee Engagement score of 83%	50% payout for achieving Inclusion and Diversity score of 80%	100% payout for achieving Employee Engagement score of 87%
Employee Engagement score					88%
Inclusion and Diversity score					80%
Total						100%	73.8%

$^1$ Actual Adjusted PBT of £517.7 million is calculated based on a budgeted constant exchange rate and excludes share of joint ventures tax on adjusted profit. It also includes adjustments for specific items in accordance with the bonus scheme rules as approved by the Committee. As such, this differs from the Adjusted PBT of £509 million shown in Note 2 of the Financial Statements. Similarly, RRG is calculated based on a budgeted constant exchange rate and differs from the total RRG shown on page 26 which reflects actual exchange rates for 2025.
$^2$ We calculate a full set of embodied carbon emissions for reporting purposes, which are detailed on pages 22 and 55. Only part of this is used for our SBTi target, and a smaller, more comparable set is used for our SEGRO bonus target. The bonus target focuses on the elements we can influence most, compares developments fairly, and uses a two-year rolling average to reduce volatility, helping to motivate teams and reward genuine improvements.

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Single year variable – Bonus, including DSBP (Audited)

2025 Bonus (Audited) continued

Chart 4: 2024 DSBP Award (made in 2025)

	Date of grant	Number of shares over which awards were granted	Share price on grant (pence) $^2$	Face value of award made in 2025 (£)	End of holding period
David Sleath	28/04/2025	49,000	691.8	338,982	28/04/2028
Soumen Das $^1$	28/04/2025	36,434	691.8	252,050	28/04/2028

$^1$ Soumen Das ceased to be an Executive Director of the Company on 31 December 2025. Further details can be found on page 122.
$^2$ The share price on grant is based on the closing mid-market quotation of a share on the business day immediately preceding the grant.

Multiple year variable – LTIP (Audited)

LTIP awards are subject to a three-year performance period and a compulsory two-year post-vesting holding period for Executive Directors.

LTIP vesting in 2026 (Audited)

The 2023 LTIP award will vest on 24 March 2026, subject to relative TSR, TPR and TAR over the three-year performance period to 31 December 2025.Based on actual TSR performance over the performance period and the TPR and TAR data currently available, it is anticipated that the 2023 LTIP award will not pay out.

Chart 5: 2023 LTIP award

Measure	Weighting	Threshold (20% of maximum)	Stretch (100% of maximum)	Outcome (% of maximum)
TSR	1	33.3%	Benchmark	Benchmark + 6% p.a.
TPR	2	33.3%	MSCI Benchmark	MSCI Benchmark + 1.5% p.a.
TAR	3	33.3%	Benchmark	Benchmark + 2.5% p.a.
Estimated vesting (% of award)				0 %

1 The Company’s TSR over the performance period was -0.4 per cent and the benchmark TSR was 12.4 per cent. As SEGRO has not reached the threshold target, this element of the 2023 LTIP award will lapse.
2 The estimated TPR calculation is based on the Company’s actual annualised TPR between 2023 and 2025 of 3.9 per cent and an estimated MSCI benchmark over the same period of 5.2 per cent. On this basis, the Company’s three-year TPR to 31 December 2025 has underperformed the estimated MSCI benchmark by -1.2 per cent which would lead to 0 per cent of the TPR element vesting. The final benchmark will be available in quarter two of 2026 and based on the information available at the time of this Report, the Committee has estimated that this element of the award will lapse. Any differences will be disclosed in next year’s Report.
3 The final benchmark will be available in quarter two of 2026. Based on the information available for two years, performance to 31 December 2024, the Company is underperforming the benchmark by 0.6% and consequently the Committee has estimated that the threshold target is unlikely to be met and so it is anticipated that this element of the award will lapse. Any differences will be disclosed in next year’s Report.

The Committee has the discretion to adjust awards at vesting if it is not satisfied that the outcome is a fair reflection of underlying performance, or in the event of excessive risk taking or misstatement. As explained on page 107, the Committee assessed the underlying performance of the business and concluded that no such discretion should be exercised in respect of the vesting of the 2023 LTIP. Subject to an LTIP award vesting, at the point of vesting, the underlying number of shares under the award are subject to a further two-year post-performance holding period. The Executive Directors will continue to hold their award over the shares, and will be entitled to the value of any dividend payments during the holding period; during this time they will not be able to sell or transfer the shares under award.

Chart 6: 2023 LTIP award to Executive Directors

	Share price on award (pence)	Percentage of salary awarded (%)	Number of shares awarded	Number of shares eligible for vesting	Estimated percentage of award vesting (%)	Estimated share price on vesting (pence) 1	Estimated value of vesting shares (£)	Value in Chart 1 attributable to share price appreciation (£)	Dividend (pence per share) 2	Total dividend on vesting shares (£)
David Sleath	737.80	300	303,010	303,010	—	697.47	—	—	88.2	—
Soumen Das 3	737.80	250	187,767	172,119	—	697.47	—	—	88.2	—

1 The vesting share price has been estimated as the three-month average share price ending on 31 December 2025.
2 As the estimated 2023 LTIP outturn is 0 per cent, there is no value included in Chart 1. In the event that the actual outturn is 0 per cent following the final assessment of TAR and TPR performance, no shares will vest and no dividend equivalents will be paid.
3 Soumen Das ceased to be an Executive Director of the Company on 31 December 2025 and his 2023 LTIP award has been pro-rated in accordance with the rules of the LTIP.
4 Susanne Schroeter was appointed as an Executive Director of the Company on 1 December 2025 and was therefore not a Director when the 2023 LTIP award was granted.

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Updated LTIP vesting in 2025 (estimated in 2024 Annual Report) (Audited)

The estimated vesting for the 2022 LTIP award set out in the 2024 Directors’ Remuneration Report was 0 per cent. The final data for the TAR and TPR elements became available in quarter two of 2025 and a final performance assessment concluded that there was no change required to the estimates made. Susanne Schroeter was appointed as an Executive Director on 1 December 2025 and therefore did not participate in the 2022 LTIP.

2025 LTIP award (Audited)

The 2025 LTIP award was granted on 19 February 2025 and is subject to the following equally- weighted performance conditions:

2025 Metrics	Weighting	Threshold (20% of maximum)	Maximum (100% of maximum)
Relative Total Shareholder Return vs FTSE 350 REIT index	33.3%	Benchmark	Benchmark + 6% p.a.
Relative Total Property Return vs MSCI All Industrial Country	33.3%	MSCI Benchmark	Benchmark + 1.5% p.a.
Relative Total Accounting Return vs FTSE 350 REITs	33.3%	Benchmark	Benchmark + 2.5% p.a.

David Sleath was awarded 300 per cent of salary in respect of the 2025 LTIP and Soumen Das was awarded 250 per cent of salary. Susanne Schroeter was appointed as an Executive Director on 1 December 2025 and was awarded a 2025 LTIP award on 2 December 2025. Further details can be found on page 123.

Chart 7: 2025 LTIP awards to Executive Directors

	Date of grant	No of shares over which awards were granted	Share price on grant (pence) 2	Face value of award made in 2025 (£)	End of performance period over which conditions have been met	End of two-year post-vesting holding period
David Sleath	19/02/2025	335,378	714.0	2,394,599	31/12/2027	19/02/2030
Soumen Das 5	19/02/2025	207,808	714.0	1,483,749	31/12/2027	19/02/2030
Susanne Schroeter 6	02/12/2025	128,385	714.0	916,669	31/12/2027	19/02/2030

1 Awards are structured as conditional awards over ordinary shares.
2 The share price on grant is based on the closing mid-market quotation of a share on the business day immediately preceding the grant.
3 The share price used to calculate Susanne Schroeter’s award was consistent with the that used to calculate the awards for David Sleath and Soumen Das.
4 Awards are subject to a three-year performance period and a two-year post-vesting holding period.
5 Soumen Das ceased to be an Executive Director on 31 December 2025 and his 2025 LTIP award has been pro-rated accordingly in accordance with the LTIP rules. Further details can be found on page 122.
6 Further details on Susanne Schroeter’s award can be found on page 123.

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Other – SIP and Sharesave (Audited)

The ‘Other’ figure in Chart 1 relates to the SIP and Sharesave:

Share Incentive Plan (SIP)

During the year, SIP free share awards of £3,600 were made to eligible UK employees and Global Share Incentive Plan (GSIP) awards of £3,600 were made to eligible employees based outside of the UK. All eligible employees, including David Sleath and Soumen Das, received an award of 529 shares in respect of the 2025 SIP and GSIP, as set out in the table below. Susanne Schroeter was appointed as an Executive Director on 1 December 2025 and therefore was not awarded a 2025 SIP award.

Name	Number of shares granted	Grant date	Face value at grant (£) 1
David Sleath	529	09/05/2025	£3,596
Soumen Das	529	09/05/2025	£3,596

1 The number of shares awarded was calculated using a share price of 679.8 pence, based on the five-day average share price prior to the date of award.

Sharesave

All eligible UK employees are invited to join the Sharesave annually and can save up to a maximum of £500 per month across all open schemes. At the end of the three-year savings period, they can purchase shares at the option price based on a 20 per cent discount to the share price at the time of grant. The Executive Directors did not join the 2025 Sharesave and so did not receive any grants under the scheme during the year. David Sleath is a participant in the 2023 Sharesave and is saving the maximum permitted amount. The value of the 20 per cent option discount for David Sleath’s savings in the year was £1,500. Soumen Das also participated in the 2023 Sharesave and saved the maximum permitted amount. On 31 December 2025, Soumen Das ceased to be an Executive Director of the Company and in accordance with the Sharesave rules, his options lapsed and he was entitled to the return of his accumulated savings. Further details can be found on page 122.

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£ (Chief Executive single figure) (TSR) TSR chart and Chief Executive pay

Chart 8 below shows the TSR for the Company over the last 10 financial years compared with the FTSE 350 REIT Index and the FTSE 100 Index. The Committee has determined that these indices provide useful comparators as the Company and its peers are constituents of them.

Chart 8: Composite 10-year TSR chart and 10-year Chief Executive single total figure of remuneration

	Chief Executive single total figure of remuneration (£000)	SEGRO	FTSE 100	FTSE 350 REITs
0	100	200	300	400
Chief Executive single figure of remuneration (£000)	2,788	4,125	3,947	6,611
Short-term incentive payout against maximum opportunity (%)	99.2	100	94.3	100
Long-term incentive payout against maximum opportunity (%)	100.0	100.0	100.0	100.0

1 David Sleath has served as Chief Executive of the Company since 28 April 2011.

CEO pay ratio

The table below shows how CEO pay compares to the pay of employees at the lower, median and upper quartiles. The ratios have been calculated in accordance with Option A of the The Companies (Miscellaneous Reporting) Regulations 2018. We have again opted for Option A as the preferred method of calculation, as it is the most statistically accurate as recommended by the legislation.# Directors' Remuneration Report continued

Chart 9: CEO pay ratio

Year	Method	25th percentile pay ratio	Median pay ratio	75th percentile pay ratio
31 December 2025	A	28:1	17:1	12:1
31 December 2024	A	21:1	13:1	9:1
31 December 2023	A	37:1	23:1	16:1
31 December 2022	A	58:1	34:1	23:1
31 December 2021	A	80:1	47:1	27:1
31 December 2020	A	64:1	37:1	23:1
31 December 2019	A	111:1	70:1	40:1
31 December 2018	A	65:1	41:1	24:1

Chart 10: Total UK employee pay and benefits figures used to calculate the 2025 CEO pay ratio

	25th percentile pay (£000)	Median pay (£000)	75th percentile pay (£000)
Salary	60	83	127
Total UK employee pay and benefits	77	125	179

Supporting information for the CEO pay ratio

The Chief Executive’s single total figure of remuneration for 2025, detailed further in Chart 1, and employee data as at 31 December 2025, have been used for the purposes of this calculation. The median CEO pay ratio has increased slightly when compared against last year (13:1). The main reason for this is an increase in the bonus outcome for 2025, noting that variable remuneration makes up a larger proportion of the Chief Executive’s total remuneration package compared to the typical workforce package. SEGRO’s median CEO pay ratio is 17:1 and the Remuneration Committee considers that the median CEO pay ratio is representative of the pay, reward and progression policies for our UK workforce.

Relative importance of spend on pay

The table below shows SEGRO’s total employee expenditure for 2025 and the total amount returned to shareholders by way of dividend.

Chart 11: Relative importance of spend on pay

	2025 (£m)	2024 (£m)	Increase (%)
Total dividend	405	379	6.9
Total employee expenditure	64	63	1.6

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Directors' Remuneration Report continued

Chart 12: Percentage change in Directors’ remuneration compared to the average employee

Date	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024	Dec 2025
Average per employee	1	3.8	4.6	9.7	7.7	4.2	6.0	-6.2	11.2	1.1	2.4
Executive Directors
David Sleath	12.4	2.0	22.1	-8.4	5.3	0.1	9.4	-2.0	2.8	2.7	4.5
Soumen Das	2.6	8.7	-2.2	-2.6	4.4	0.0	0.0	4.8	0.0	78.9	-29.2
Susanne Schroeter	5	—	—	—	—	—	—	—	—	—	—
Non-Executive Directors
Andy Harrison	2	3.0	2.0	5.0	—	—	—	—	—	—	—
Mary Barnard	3	3.0	2.0	5.0	3.0	8.0	-0.6	—	—	—	—
Sue Clayton	3.0	2.0	5.0	3.0	8.0	-0.6	—	—	—	—	—
Carol Fairweather 6	2.6	1.9	10.6	18.6	3.0	8.0	-0.6	—	—	—	—
Simon Fraser 2	1.6	1.6	8.1	3.0	—	—	—	—	—	—	—
Marcus Sperber 2	3.0	—	—	—	—	—	—	—	—	—	—
Linda Yueh 2	3.0	2.0	5.0	3.0	—	—	—	—	—	—	—
	Salary/Fees (% change)						Taxable Benefits (% change)
	2025	2024	2023	2022	2021	2020	2025	2024	2023	2022	2021
Executive Directors
David Sleath	-10.1	-1.5	11.3	-6.1
Soumen Das	-29.2	-10.1	-1.5	16.8	-6.1
Susanne Schroeter	—	—	—	—	—	—
Non-Executive Directors
Andy Harrison	—	—	—	—	—	—
Mary Barnard	—	—	—	—	—	—
Sue Clayton	—	—	—	—	—	—
Carol Fairweather	—	—	—	—	—	—
Simon Fraser	—	—	—	—	—	—
Marcus Sperber	—	—	—	—	—	—
Linda Yueh	—	—	—	—	—	—
	Annual Variable Pay (% change)
	2025	2024	2023	2022	2021	2020
Executive Directors
David Sleath	4.8	0.0	78.9	-29.2	-10.1	-1.5
Soumen Das	34.2	-29.2	-10.1	-1.5	16.8	-6.1
Susanne Schroeter	—	—	—	—	—	—
Non-Executive Directors
Andy Harrison	—	—	—	—	—	—
Mary Barnard	—	—	—	—	—	—
Sue Clayton	—	—	—	—	—	—
Carol Fairweather	—	—	—	—	—	—
Simon Fraser	—	—	—	—	—	—
Marcus Sperber	—	—	—	—	—	—
Linda Yueh	—	—	—	—	—	—

1 As there are only a very small number of employees in SEGRO plc, French branch, the 2025 average per employee figure is based on UK employees who have been continually employed for the entirety of 2024 and 2025 and are entitled to receive an annual bonus.

2 Explanations for material changes in prior years are provided in the previous Annual Reports.

3 Fees for Non-Executive Directors have been annualised unless otherwise stated. Non-Executive Directors do not receive any taxable benefits and do not participate in the bonus scheme.

4 Soumen Das ceased to be an Executive Director of the Company with effect from 31 December 2025.

5 Susanne Schroeter was appointed as an Executive Director on 1 December 2025; accordingly there is no comparator for the previous years.

6 Carol Fairweather received an additional fee for her role as Senior Independent Director and Chair of the Audit Committee. Carol was appointed as Senior Independent Director in July 2023 and as a result, she received an additional pro-rated fee for this role in 2023.

Alignment of Executive Director and workforce remuneration in 2025

Element of remuneration	Executive Directors	All employees
Salary	Group salary budget reviewed by the Remuneration Committee	Salary Below overall budgeted employee increases
Bonus	Targets: Adjusted PBT, RRG, ESG, personal performance (weightings based on level)	Bonus Maximum 200% for Chief Executive and 150% for Chief Financial Officer
Deferred Share Bonus Plan	Targets: Adjusted PBT (37.5%), RRG (37.5%), ESG (25%)	Leadership team only, 25% deferred for 3 years
Long Term Incentive Plan	50% deferred for 3 years	Leadership team and senior managers only
Pension benefit	3-year performance period	No holding period
Share Incentive Plan	Three equally-weighted targets: TSR, TPR, TAR	Maximum 300% for Chief Executive and 250% for Chief Financial Officer
Sharesave	Maximum 300% for Chief Executive and 250% for Chief Financial Officer	3-year performance period, 2-year holding period
	Three equally-weighted targets: TSR, TPR, TAR (UK)
	12% matched contribution	12% cash
	Maximum £3,600, minimum 3-year hold	Maximum £3,600, minimum 3-year hold (UK)
	Maximum £3,600, minimum 3-year hold (UK)	£500/month with a 3-year savings period
	£500/month with a 3-year savings period	£500/month 3-year savings period

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Employee share ownership

SEGRO is proud to operate two types of all-employees share schemes. This encourages employees to own shares in the Company, aligning their interests with our shareholders.

• SIP/GSIP: all eligible employees can receive an award of up to £3,600 worth of SEGRO shares each year. These are held in Trust on their behalf for a minimum of three years, following which they can be released subject to continued employment.
• Sharesave: all UK employees are invited to join Sharesave on an annual basis, where they can save up to £500 a month across all open schemes. After three years, they can use their savings to buy SEGRO shares at a 20 per cent discount to the share price when they started saving.

91.6% of SEGRO employees participated in one or more all-employee share scheme, as at 31 December 2025.

£3,600 In May 2025, all eligible employees received £3,600 worth of SEGRO shares through the SIP or GSIP.

60.9% of UK employees participate in Sharesave, saving on average £376 each month.

7.8m SEGRO shares under award in employee share schemes as at 31 December 2025, representing 0.6 per cent of our issued share capital.

Workforce engagement on Executive Remuneration

As detailed on page 84, during the year the Non-Executive Directors held a series of workforce engagement sessions with a cross-section of employees from across the business. In September 2025, Remuneration Committee Chair, Simon Fraser, and Non-Executive Director, Mary Barnard, held an in-person workforce engagement session which covered a variety of topics and also covered Executive Remuneration. A small group of employees were selected from a cross-section of employment grades, functions and tenures to provide their perspectives on the Group’s remuneration framework and insights into how the current approach to pay, bonuses and benefits is experienced across the business. Overall, the group demonstrated a good understanding of the Company’s Remuneration Policy, including the structure and purpose of Executive Pay and the broader reward framework for the workforce. Participants were generally confident in their knowledge of the Company’s bonus structure, including the financial and Responsible SEGRO targets, however some colleagues noted that the bonus scheme can sometimes seem complex, reinforcing the need for strong communications to colleagues at all levels to help them to understand the scheme and the part they can play in delivering performance. Additionally, the adoption of the ‘what and how’ model for assessing personal performance, was highlighted as an area where further guidance would be beneficial and which management have agreed to address. Across all participants, there was strong appreciation for the wider package of employee benefits. The Wellbeing Fund, additional Christmas annual leave and enhanced paternity leave were all cited as demonstrably positive elements of the Company’s offering. The Directors felt that these sessions remained helpful in understanding employees’ views on a range of topics, including Executive Remuneration, and appreciated the insightful, open and honest feedback from the attendees. The feedback has been provided to management, and, together with the feedback given by employees in the Your Say survey (described on page 25) will be used to form plans to actively address any issues raised and improve the Company’s employee offering. The employees also valued the opportunity to speak directly with the Non-Executive Directors to share their views. Feedback from the session was relayed to the Board and discussed at the November 2025 Board meeting and will inform plans on the evolution of our communications to support performance management and reward.# Directors' Remuneration Report continued

Executive Directors’ shareholdings (Audited)

	Beneficial interest (including SIP as at 01/01/2025)	Beneficial interest (including SIP as at 31/12/2025)	Subject to deferral under DSBP	Subject to achievement of performance conditions under LTIP	Subject to two year holding period	Outstanding options under Sharesave	Total overall interest in shares as at 31/12/2025	Shares which contribute to shareholding guidelines as at 31/12/2025	Value of shares which contribute to shareholding guidelines as at 31/12/2025	Salary (as at 31 December 2025)	Value of shareholding as a % of salary
David Sleath	917,526	1,062,591	171,497	902,389	120,894	3,099	2,260,470	1,217,557	£8,771,281	£822,100	1,067 %
Soumen Das	536,208	640,141	127,525	559,177	85,670	3,099	1,415,612	753,134	£5,425,577	£611,300	888 %
Susanne Schroeter	—	—	—	233,899	—	—	—	—	—	£550,000	— %

1. Beneficial interests represent shares beneficially held by each Executive Director, including any shares beneficially held by connected persons as well as shares held on their behalf by the Trustees of the SIP. Between 31 December 2025 and 19 February 2026, there were no changes in respect of the Executive Directors’ shareholdings. The Trustees of the SIP held a non-beneficial interest in 464,528 shares as at 1 January 2025, 509,996 shares as at 31 December 2025 (2024: 432,659) and 492,449 shares as at 19 February 2026. The Trustees of the SEGRO plc Employees’ Benefit Trust held 490,838 shares as at 1 January 2025 and 623,340 shares as at 31 December 2025 (2024: 490,838). There was no change in their holding between 31 December 2025 and 19 February 2026. As with other employees, Executive Directors are deemed to have a potential interest in these shares, being beneficiaries under these two Trusts. The Trustees of the SEGRO plc Employees’ Benefit Trust have waived the right to receive dividends on these shares.
2. The number of shares which contribute towards the shareholding requirement comprises beneficial interests (including SIP shares), shares subject to deferral under DSBP and shares held under LTIP subject to the two-year post-vesting holding period, net of Income Tax and National Insurance, but excludes shares subject to achievement of performance conditions under LTIP and options outstanding under Sharesave.
3. Value of shares calculated using a share price of 720.4 pence, as at 31 December 2025.
4. Soumen Das ceased to be an Executive Director of the Company on 31 December 2025 and his share interests and share values are disclosed as at 31 December 2025.
5. Susanne Schroeter was appointed as an Executive Director on 1 December 2025.

Chart 14: Policy on shareholding guidelines (Audited)

The Chief Executive is expected to build a shareholding in the Company equivalent to 400 per cent of the value of his base salary, and the other Executive Directors are expected to hold shares equivalent to 250 per cent of their base salaries, which is calculated each year by reference to the share price as at 31 December. Shares which qualify towards the shareholding guidelines comprise: beneficial interests; LTIP awards which have vested and are subject to a two-year post-vesting holding period, net of Income Tax and National Insurance; and unvested shares in the DSBP, net of Income Tax and National Insurance. Executive Directors are required to retain half of their DSBP shares post vesting and half of their LTIP shares post-holding period until the above guidelines have been met and are then maintained. The shareholding guidelines include a post-cessation requirement for Executive Directors to retain their shareholding, up to the amount required by the shareholding guidelines, for two years after leaving the Company. Soumen Das ceased to be an Executive Director of the Company with effect from 31 December 2025 and is required to maintain a shareholding of 250 per cent of base salary for a period of two years post-cessation, as detailed in the Policy. Susanne Schroeter was appointed as an Executive Director on 1 December 2025 and will be expected to build up a shareholding equivalent to 250 per cent of basic salary, as detailed in the Policy.

$^1$ Policy
$^2$ Percentage of salary held
Value of shares calculated using a share price of 720.4 pence, as at 31 December 2025.

	Policy	% of salary held
David Sleath	400%	1,067%
Soumen Das	250%	888%
Susanne Schroeter	250%	0%

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Executive Directors’ shareholdings (Audited) continued

Dilution headroom

As the LTIP, SIP and Sharesave schemes are approved by shareholders, they may be satisfied by the issue of new shares in the Company, up to the dilution limits set out in our scheme rules. Chart 15 below shows the total number of shares under award or option for both Executive and all-employee schemes in comparison to our dilution limits over the last 10 years.

Chart 15: Dilution headroom

	0%	1%	2%	3%	4%	5%	6%	7%	8%	9%	10%
Executive schemes	0.99%					5%
All schemes	1.11%										10%

• l Actual
• l Dilution limit

Chart 15 shows:
* Executive schemes: 0.99% (Actual) vs 5% (Dilution limit) over 10 years.
* All schemes: 1.11% (Actual) vs 10% (Dilution limit) over 10 years.

Chair and Non-Executive Directors

Non-Executive Directors’ single total figure of remuneration (Audited)

In 2025, the Chair’s annual fee was £386,100 (2024: £374,900) and the Non-Executive Directors’ annual fee was £73,200 (2024: £71,100), with an additional £17,700 per annum (2024: £17,700) for the role of Senior Independent Director and an additional £20,000 per annum (2024: £20,000) for chairing the Audit or Remuneration Committees. The Chair and Non-Executive Directors do not participate in any of the Company’s share-based incentive schemes nor do they receive any other benefits or rights under the pension scheme.

Chart 16: Non-Executive Directors’ single total figure of remuneration for 2025

Director	Total Fees 2025 (£000)	Total Fees 2024 (£000)
Andy Harrison Chair	386	375
Mary Barnard	73	71
Sue Clayton	73	71
Carol Fairweather Chair of the Audit Committee, Senior Independent Director	111	109
Simon Fraser Chair of the Remuneration Committee	93	91
Marcus Sperber $^1$	73	47
Linda Yueh	73	71

$^1$ Marcus Sperber was appointed to the Board as an independent Non-Executive Director on 1 May 2024 and his fee in 2024 reflects the time served.

Non-Executive Directors’ shareholding guidelines (Audited)

The Committee periodically considers the Non-Executive Directors’ shareholdings to ensure they remain appropriate and aligned to the interests of shareholders. Non-Executive Directors are expected to reach a share ownership equivalent in value to 100 per cent of their annual fees, within three years from their date of appointment. Where a Non-Executive Director has met the 100 per cent of their annual fees guidance previously, they would be considered to have adhered to the guidelines and are not expected to adjust their holdings with subsequent share price movements.

Chart 17: Non-Executive Directors’ beneficial interests in shares and shareholding requirements

	Beneficial interests 01/01/2025 Ordinary 10p shares	Beneficial interests 31/12/2025 Ordinary 10p shares	Shareholding requirement met
Andy Harrison	564,755	564,755	Yes
Mary Barnard	12,507	12,507	Yes
Sue Clayton	7,000	7,000	Yes
Carol Fairweather	20,000	20,000	Yes
Simon Fraser	31,440	31,440	Yes
Marcus Sperber $^1$	7,240	7,240	No
Linda Yueh	4,716	4,716	Yes

$^1$ Marcus Sperber was appointed to the Board on 1 May 2024 and is expected to build a shareholding equivalent to 100 per cent of annual fees over three years from his date of appointment.

There was no change in Directors’ interests between 31 December 2025 and 19 February 2026.

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Additional information

External appointments

Executive Directors are permitted to hold one external directorship, approved by the Board. Fees payable may be retained. David Sleath is a Senior Independent Non-Executive Director of RS Group plc and he received a fee of £84,464 for this role in 2025 (2024: £82,601). Soumen Das is a Non-Executive Director of NEXT plc and he received a fee of £76,195 for his role in 2025 (2024: £76,195). Susanne Schroeter is a Supervisory Board Member of Zalando SE and she received a fee of €110,000 (equivalent to £94,017) for her role in 2025 (£9,167/£7,835 for the period appointed at SEGRO). The FX rate used was the 2025 average (£1 : €1.17).

Exit payments and arrangements (Audited)

Further to the Company’s announcement on 30 April 2025, Soumen Das, Chief Financial Officer and Executive Director, stepped down from the Board with effect from 31 December 2025. The remuneration details relating to Soumen Das required to be made available under section 430(2B) of the Companies Act 2006 are as follows:
* The remuneration terms for Soumen Das’s departure are in accordance with the key provisions for contract termination as set out in SEGRO’s Remuneration Policy approved by shareholders in April 2025 and available to view at www.SEGRO.com.
* Soumen Das has been paid a full salary and benefits (which includes cash allowances in lieu of a company car, company pension and private medical healthcare) to 31 December 2025. He also received a payment of £3,527 in respect of accrued but unused annual leave entitlement as at 31 December 2025.
* Soumen Das was eligible to receive a cash bonus in respect of the Company’s financial year ending 31 December 2025, payable in April 2026, to the extent that the performance targets were met (see page 114 for further details).50 per cent of the bonus earned in 2025 will be deferred in shares under the Company’s Deferred Share Bonus Plan (DSBP).
* Soumen Das was entitled to time pro-rated shares from the Company’s Long Term Incentive Plan (LTIP), subject to the Company meeting the performance targets for these awards and subject to and in accordance with the rules of the LTIP. Following vesting, his LTIP awards will remain subject to the normal post-vesting holding periods and to the other rules of the LTIP. Any dividend equivalents accrued in respect of LTIP awards will be pro-rated in line with the level of vesting of the relevant LTIP award and will be paid in cash at the end of the holding period. The cash payment will also include the value of any dividend equivalents accrued during the holding period. Details of Soumen Das’s outstanding LTIP awards are set out on the right.

Award	Award date	Number awarded	Maximum number of shares that could vest	Vesting date	End of holding period
2021 LTIP award ¹	29/03/2021	135,341	85,670	29/03/2024	29/03/2026
2022 LTIP award ²	05/05/2022	115,698	0	05/05/2025	05/05/2027
2023 LTIP award	24/03/2023	187,767	172,119	24/03/2026	24/03/2028
2024 LTIP award	22/03/2024	163,602	95,434	22/03/2027	22/03/2029
2025 LTIP award	19/02/2025	207,808	57,724	19/02/2028	19/02/2030

¹ As disclosed in the 2024 Directors’ Remuneration Report, the 2021 LTIP vested at 63.3 per cent.
² As detailed on page 116, the 2022 LTIP did not achieve the performance conditions and therefore did not vest.

• Soumen Das was entitled to receive outstanding awards under the DSBP in full on their normal vesting dates. As set out below, the shares subject to these awards will be released on the vesting date, together with a cash sum equivalent to the value of dividends that would have been paid on the shares during the three years under which they were under award.

Award	Award date	Number awarded	Vesting date
2022 DSBP award	28/04/2023	48,867	28/04/2026
2023 DSBP award	26/04/2024	42,224	26/04/2027
2024 DSBP award	28/04/2025	36,434	28/04/2028

• Soumen Das’ shares awarded under the Company’s Share Incentive Plan (SIP) will be treated in accordance with the rules of the SIP. Options held under the Company’s Savings-Related Share Option Plan (Sharesave) will automatically lapse and Soumen Das will be entitled to the return of his accumulated savings in accordance with the rules of the Sharesave.
• Other than the amounts disclosed above, Soumen Das will not be eligible for any remuneration payments or payments for loss of office.
• Soumen Das is required to hold Company shares equivalent to 250 per cent of base salary as at 31 December 2025 for a period of two years following termination of employment, in accordance with the Company’s Shareholding Guidelines. Please see page 120 for further details.

Payments to Former Directors (Audited)

Andy Gulliford retired as Chief Operating Officer and Executive Director on 30 June 2023. Full details of his exit arrangements are disclosed in the 2023 Directors’ Remuneration Report. Andy was entitled to his 2022 LTIP award on a time pro-rated basis in line with previously disclosed exit arrangements, however as detailed on page 116, the 2022 LTIP award did not vest and as a result, he did not receive any shares or accrued dividend equivalent payments in respect of this award. Andy was entitled to receive his 2021 DSBP award, which vested on 28 April 2025. 34,578 shares vested and were valued at £239,211 based on the share price on the date of vesting (691.8 pence) and an additional £28,838 for accrued dividend payments. Andy also received the shares released on his 2020 LTIP, which reached the end of its two-year post-vesting holding period on 26 March 2025. 143,788 shares vested and were valued at £1,012,076 based on the share price at vesting (703.9 pence) and an additional £186,637 in accrued dividend payments. There were no other payments to former Directors during the year.

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Remuneration terms for Susanne Schroeter

Susanne Schroeter joined the Board as Chief Financial Officer and Executive Director on 1 December 2025. The following employment terms were approved by the Committee and are in line with the Policy:

• Her gross annual salary is £550,000 which, at 10 per cent less than the former Chief Financial Officer's salary, provides scope for salary progression in future years under the Policy and will be reviewed by the Committee on an annual basis. Her pension allowance is 12 per cent of basic salary which is in line with the wider UK workforce. Pension payments can be taken as a cash supplement or a contribution to the Company’s occupational pension scheme. Susanne is also entitled to health care, life insurance and an annual cash car allowance.
• Susanne will be eligible to participate in SEGRO’s annual bonus scheme subject to the rules of the scheme and her maximum bonus opportunity will be 150 per cent of salary. For the financial year ending 31 December 2025, Susanne was eligible to participate in the annual bonus scheme, pro-rated for the period of employment and payable in April 2026 (see page 114 for further details). 50 per cent of any bonus awarded will be deferred into shares in the DSBP to be held for three years before vesting. Susanne will also be eligible to receive an additional amount of £77,000 (less any deductions the Company is required to make) in April 2026 to compensate for the amount forfeited under the 2025 annual bonus plan at her former employer.
• Upon joining, Susanne received an award under the LTIP of 128,385 shares, equivalent to two-thirds of 250 per cent of basic salary in respect of the financial year ending December 2025 to vest in February 2028 in line with the Policy and subject to the achievement of performance conditions. Any shares that vest under this award will be subject to a two-year post-vesting holding period.
• A recruitment LTIP award of 105,514 shares, equivalent to £750,000, granted on 2 December 2025 with vesting in two equal tranches (50 per cent on 31 March 2027 and 50 per cent on 31 March 2028, subject to continued employment). This award compensates Susanne for an equivalent LTIP award forfeited upon leaving her former employer and is not subject to performance conditions or a post-vesting holding period.
• Susanne will be expected to build a shareholding equivalent to 250 per cent of basic salary and maintain it for two years post-employment.

Remuneration Committee advisers

The Committee has access to sufficient resources to discharge its duties, which includes access to independent remuneration advisers, the Company Secretary, the Group HR Director and other advisers as required. The Committee is responsible for appointing its external advisers and in 2018, following a competitive tender process, Korn Ferry was appointed. During 2025, Korn Ferry provided advice on the Policy, Executive Directors’ remuneration, and market and best practice guidance, including the provisions of the Code. Its total fees for work completed in 2025 were £211,574, £164,714 of which related to advice to the Committee (2024: £105,958), calculated on a time-cost basis. The Committee determined that Korn Ferry provided objective and independent remuneration advice and does not have any connections with the Company or its Directors. Korn Ferry provides services to the Company’s HR function and the Committee is satisfied that this does not impair its independence. Korn Ferry is a signatory to the Code of Conduct for Remuneration Consultants in the UK.

Chart 18: Shareholder voting at the 2025 AGM

	Votes for (including discretionary)	For (%)	Votes against	Against (%)	Total votes cast	Votes withheld ¹
1 To approve the Directors’ Remuneration Report for the financial year ended 31 December 2024	1,009,059,135	90.36	107,669,209	9.64	1,116,728,344	276,862
To approve the Directors’ Remuneration Policy contained in the Directors’ Remuneration Report for the financial year ended 31 December 2024	1,083,807,602	97.05	32,892,921	2.95	1,116,700,523	302,074

¹ A withheld vote is not a vote in law and is not counted in the calculation of the proportion of votes cast for and against a resolution.

Malus and clawback

Malus and clawback provisions apply to the bonus and awards made under the DSBP and LTIP over the time periods detailed below and may apply in the following circumstances:

• fraud or serious misconduct on the part of the participant;
• a serious misstatement in the Company’s financial results;
• an error in assessing performance conditions, resulting in an overpayment;
• when Company performance was achieved as a result of excessive risk taking;
• serious reputational damage; or
• corporate failure.

	Malus	Clawback
Bonus	—	Up to three years from the payment date
DSBP	Until the award(s) vest	—
LTIP	Until the award(s) vest	Up to two years from the vesting date

The Committee is satisfied that any circumstances that would give rise to a potential malus/ clawback scenario would be likely to be identified during these time periods. No potential circumstances were identified and there was no exercise of malus/clawback under the Policy during the year.

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Policy on service contracts

Executive Directors
The Company may terminate the Executive Directors’ service contract on up to 12 months’ notice, with no liquidating damages provisions.

Non-Executive Directors
The Chair and the Non-Executive Directors have letters of appointment which set out their duties and anticipated time commitment to the Company. They are required to disclose to the Board any changes to their other significant commitments.The Non-Executive Directors are appointed for an initial term of three years. The appointments may be extended for further three-year periods on the recommendation of the Nomination Committee and subject to the Board’s agreement. The Non-Executive Directors’ letters of appointment contain a three-month notice period and the Chair’s contains a six-month notice period. Further details are set out in Chart 19 to the right.

Chart 19: Dates of appointment and contractual notice period

Name	Date of appointment	Notice period
Andy Harrison¹	1 April 2022	6 months
David Sleath²	1 January 2006	12 months by Company, 6 months by Director
Soumen Das³	16 January 2017	12 months by Company, 6 months by Director
Susanne Schroeter⁴	1 December 2025	12 months by Company, 6 months by Director
Mary Barnard	1 March 2019	3 months
Sue Clayton	1 June 2018	3 months
Carol Fairweather	1 January 2018	3 months
Simon Fraser	1 May 2021	3 months
Marcus Sperber	1 May 2024	3 months
Linda Yueh	1 May 2021	3 months

1 Appointed as Chair on 30 June 2022.
2 Appointed as Chief Executive on 28 April 2011.
3 Ceased to be an Executive Director of the Company with effect from 31 December 2025.
4 Appointed as Executive Director on 1 December 2025.
5 Directors’ service contracts are available for inspection at the Company’s registered office.

This report was approved by the Board on 19 February 2026 and signed on its behalf by

Simon Fraser
Chair of the Remuneration Committee

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Management Report

The Strategic Report, the Corporate Governance Report and the Directors’ Report together form the Management Report for the purposes of the Disclosure Guidance and Transparency Rules (DTR) 4.1.5 and 4.1.8 to 4.1.11R.

Directors’ Report disclosures

Certain Directors’ Report disclosures, which have been incorporated into the Directors’ Report by reference, can be found on the following pages:

Disclosure Section	Reference
Culture, Purpose and Values	Strategic Report and Governance Report Pages 18, 25 and 79
Charitable donations	Strategic Report Page 24
Employee engagement	Strategic Report and Governance Report Page 25
Diversity and inclusion	Strategic Report Page 25
Employment, training and advancement of disabled persons	Strategic Report Page 25
Approach to investing in and rewarding the workforce	Strategic Report Page 25
Review of the Group’s business during the year and any future developments	Strategic Report Pages 28 to 36
Principal risks	Strategic Report Pages 59 to 68
Greenhouse gas emissions	Strategic Report Page 47
Corporate governance statement	Governance Report Page 70
Details of the Directors who served during the year	Governance Report Pages 74 to 76
Stakeholder engagement	Governance Report Pages 84 to 89
Board diversity and inclusion	Governance Report Page 96
Statement of Directors’ responsibilities	Governance Report Page 127
Financial instruments and certain financial risks	Financial Statements Pages 159 to 165

Share capital

The Company is listed on the London Stock Exchange and, as of 24 November 2020, has a secondary listing on Euronext, Paris. The issued share capital for the year is set out on page 165. There is one class of share in issue and there are no restrictions on the voting rights attached to these shares or the transfer of securities in the Company, and all shares are fully paid. The Company made no purchases of its own shares during the year. The Company was granted authority to make market purchases of its own shares at the 2025 AGM. This authority will expire at the conclusion of the 2026 AGM where a resolution will be proposed to seek further authority.

Recent share history of the Company
For information on the recent share history of the Company, see www.SEGRO.com/investors/ shareholder-information/recent-share-history.

Dividends

Subject to approval by shareholders at the 2026 AGM, a final dividend of 21.4 pence per share will be paid (2024: 20.2 pence) bringing the total dividend for 2025 to 31.1 pence (2024: 29.3 pence). The final dividend will be paid as a Property Income Distribution. The Board has decided not to offer a Scrip alternative in respect of the 2025 Final Dividend. The ex-dividend date for the final dividend will be 26 March 2026, the record date will be 27 March 2026 and the payment date will be 8 May 2026.

Change of control

• Contracts
  There are a number of contracts that could allow the counterparties to terminate or alter those arrangements in the event of a change of control of the Company. These arrangements are commercially confidential and their disclosure could be seriously prejudicial to the Company.
• Borrowings and other financial instruments
  The Group has a number of borrowing facilities provided by various lenders. These facilities generally include provisions that may require any outstanding borrowings to be repaid or the amendment or termination of the facilities upon the occurrence of a change of control of the Company.
• Employee share plans
  The Company’s share plans contain provisions as a result of which options and awards may vest or become exercisable on change of control of the Company, in accordance with the rules of the plans.

Modern slavery and human rights

SEGRO operates a Human Rights Policy which brings together a number of our existing policies that relate to human rights such as our Modern Slavery and Labour Standards Supplier Code, and Anti-Slavery and Human Trafficking Policy. Copies of our policies that relate to human rights can be found on our website www.SEGRO.com. The Company publishes an annual Modern Slavery and Human Trafficking Statement in compliance with the UK Modern Slavery Act 2015. The Board approved the latest statement in June 2025 and it can be found on our website at www.SEGRO.com/modern-slavery. Modern slavery awareness posters, which contain information on key signs of modern slavery, how and where to access help, and details of our whistleblowing reporting service are displayed on SEGRO development sites and in all our offices. We also deliver targeted modern slavery awareness training to certain employees and teams who should receive further training due to the nature of their role. In particular, teams which deal with suppliers, visit sites and meet contractors more regularly are best placed to more effectively uncover potential instances of modern slavery and human trafficking. In addition, all employees complete mandatory online training on modern slavery every three years. We continue to require new starters to pass this training as part of their induction. Any employee who breaches our Anti-Slavery and Human Trafficking Policy or Human Rights Policy will face disciplinary action, which could result in dismissal for misconduct or gross misconduct. We reserve the right to terminate our relationship with other individuals and organisations working on our behalf if they do not comply with our Modern Slavery and Labour Standards Supplier Code.

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Directors' Report

Employees and Directors

There are no agreements between the Company and its Directors or employees providing for compensation for loss of office or employment that occurs specifically because of a takeover bid, with the exception of provisions of the Company’s share schemes as detailed above.

• Directors’ authorities in relation to shares
  The Directors’ authorities in relation to issuing, allotting or buying back shares are governed by the Company’s Articles of Association and the resolutions passed by shareholders at a general meeting. These documents do not form part of this Report.
• Process for appointment/removal of Directors
  The Company is governed by its Articles of Association, the UK Corporate Governance Code, the Companies Act 2006 and related legislation with regard to the appointment and removal of Directors. Directors are appointed by the Board and elected by shareholders. Directors may be removed by the Board or shareholders as applicable.

Substantial interests in the share capital of the Company

Information provided to the Company under the Disclosure Guidance and Transparency Rules (DTR 5) is published on a Regulatory Information Service and on the Company’s website. As at 31 December 2025 and 19 February 2026, the Company had been notified of the following holdings:

Shareholder	As at 31 December 2025		As at 19 February 2026
	Number of shares	Percentage of issued share capital (%)	Number of shares	Percentage of issued share capital (%)
1 BlackRock, Inc.²	137,220,709	10.13	139,248,542	10.28
Norges Bank	111,520,923	8.33	111,520,923	8.33
APG Asset Management N.V.	73,411,178	5.99	73,411,178	5.99
T. Rowe Price Associates, Inc.	69,444,683	5.13	69,444,683	5.13

1 Percentage based on ordinary shares in issue as at the date the notification was received by the Company.
2 On 20 January 2026, BlackRock, Inc. notified the Company of an increase in voting rights to 139,107,761 (representing 10.26 per cent of the Company’s issued share capital). On 21 January 2026, BlackRock, Inc. notified the Company of an increase in voting rights to 139,248,542 (representing 10.28 per cent of the Company’s issued share capital).

Articles of Association

Shareholders may amend the Company’s Articles of Association by special resolution.

Political donations

No political donations were made by the Company or its subsidiaries during the year.

Research and development activities

The Group continues to invest in new technology and systems and to develop new products and services to improve operating efficiency and strengthen its proposition for occupiers, employees and customers.Directors’ indemnities and insurance The Company maintains directors’ and officers’ liability insurance which is reviewed annually and is permitted under the Company’s Articles of Association and the Companies Act 2006. The Company indemnifies each Director, under a Deed of Indemnity, against any liability incurred in relation to acts or omissions arising in the ordinary course of their duties. The indemnity applies only to the extent permitted by law. No Company Directors were indemnified during the year.

Overseas branches The Company has a branch in Paris, France.

Auditor of the Company A resolution to reappoint PricewaterhouseCoopers LLP as auditor of the Company is to be proposed at the 2026 AGM.

Disclosure of information to the Auditor
Each of the persons who is a Director at the date of approval of this Report confirms that:
* so far as the Director is aware, there is no relevant audit information of which the Company’s auditor is unaware; and
* each Director has taken all the steps that they ought to have taken as a Director in order to make themself aware of any relevant audit information and to establish that the Company’s auditor is aware of that information.

This confirmation is given and should be interpreted in accordance with the provisions of section 418 of the Companies Act 2006.

The Directors’ Report has been approved by the Board and signed on its behalf by
Stephanie Murton
Company Secretary
19 February 2026

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Directors’ Report continued

The Directors are responsible for preparing the Annual Report and Accounts in accordance with applicable law and regulation. Company law requires the Directors to prepare Financial Statements for each financial year. Under that law the Directors have prepared the Group Financial Statements in accordance with UK-adopted international accounting standards and the Company Financial Statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards, comprising FRS 101 “Reduced Disclosure Framework”, and applicable law). The Group has also prepared Financial Statements in accordance with international financial reporting standards adopted pursuant to Regulation (EC) No 1606/2002 as it applies in the European Union.

Under company law, Directors must not approve the Financial Statements unless they are satisfied that they give a true and fair view of the state of affairs of the Group and Company and of the profit or loss of the Group for that period. In preparing the Financial Statements the Directors are required to:
* select suitable accounting policies and then apply them consistently;
* state whether applicable UK-adopted international accounting standards and international financial reporting standards adopted pursuant to Regulation (EC) No 1606/2002 as it applies in the European Union have been followed for the Group Financial Statements and United Kingdom Accounting Standards, comprising FRS 101 have been followed for the Company Financial Statements, subject to any material departures disclosed and explained in the Financial Statements;
* make judgements and accounting estimates that are reasonable and prudent; and
* prepare the Financial Statements on the going concern basis unless it is inappropriate to presume that the Group and Company will continue in business.

The Directors are also responsible for safeguarding the assets of the Group and Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. The Directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Group’s and Company’s transactions and disclose with reasonable accuracy at any time the financial position of the Group and Company and enable them to ensure that the Financial Statements and the Directors’ Remuneration Report comply with the Companies Act 2006. The Directors are responsible for the maintenance and integrity of the Company’s website. Legislation in the United Kingdom governing the preparation and dissemination of Financial Statements may differ from legislation in other jurisdictions.

Directors’ confirmations
The Directors consider that the Annual Report and Accounts, taken as a whole, is fair, balanced and understandable and provides the information necessary to assess the Group’s and Company’s position and performance, business model and strategy. Each of the Directors, whose names and functions are listed in the Governance section of the Annual Report confirm that, to the best of their knowledge:
* the Group Financial Statements, which have been prepared in accordance with UK-adopted international accounting standards and international financial reporting standards adopted pursuant to Regulation (EC) No 1606/2002 as it applies in the European Union, give a true and fair view of the assets, liabilities, financial position and profit of the Group;
* the Company Financial Statements, which have been prepared in accordance with United Kingdom Accounting Standards, comprising FRS 101, give a true and fair view of the assets, liabilities and financial position of the Company; and
* the Strategic Report includes a fair review of the development and performance of the business and the position of the Group and Company, together with a description of the principal risks and uncertainties that it faces.

By order of the Board
David Sleath Susanne Schroeter
Chief Executive Chief Financial Officer
19 February 2026 19 February 2026

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Statement of Directors’ responsibilities in respect of the Financial Statements

Financial statements
Independent Auditors’ Report to the members of SEGRO plc 129
Group Income Statement 136
Group Statement of Comprehensive Income 136
Balance Sheets 137
Statements of Changes in Equity 138
Cash Flow Statement 140
Notes to the Financial Statements 141
Five-year financial results 188

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SEGRO Parc des Petit Carreaux, France

Report on the audit of the financial statements

Opinion
In our opinion:
* SEGRO plc’s Group financial statements and Company financial statements (the “financial statements”) give a true and fair view of the state of the Group’s and of the Company’s affairs as at 31 December 2025 and of the Group’s profit and the Group’s cash flows for the year then ended;
* the Group financial statements have been properly prepared in accordance with UK-adopted international accounting standards as applied in accordance with the provisions of the Companies Act 2006;
* the Company financial statements have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards, including FRS 101 “Reduced Disclosure Framework”, and applicable law); and
* the financial statements have been prepared in accordance with the requirements of the Companies Act 2006.

We have audited the financial statements, included within the Annual Report & Accounts 2025 (the “Annual Report”), which comprise:
* the Group and Company Balance Sheets as at 31 December 2025;
* the Group Income Statement and the Group Statement of Comprehensive Income for the year then ended;
* the Group Cash Flow Statement for the year then ended;
* the Group and Company Statements of Changes in Equity for the year then ended; and
* the notes to the financial statements, comprising material accounting policy information and other explanatory information.

Our opinion is consistent with our reporting to the Audit Committee.

Separate opinion in relation to international financial reporting standards adopted pursuant to Regulation (EC) No 1606/2002 as it applies in the European Union
As explained in note 1 to the financial statements, the Group, in addition to applying UK-adopted international accounting standards, has also applied international financial reporting standards adopted pursuant to Regulation (EC) No 1606/2002 as it applies in the European Union. In our opinion, the Group financial statements have been properly prepared in accordance with international financial reporting standards adopted pursuant to Regulation (EC) No 1606/2002 as it applies in the European Union.

Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (“ISAs (UK)”), International Standards on Auditing issued by the International Auditing and Assurance Standards Board (“ISAs”) and applicable law. Our responsibilities under ISAs (UK) and ISAs are further described in the Auditors’ responsibilities for the audit of the financial statements section of our report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Independence
We remained independent of the Group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, which includes the FRC’s Ethical Standard, as applicable to listed public interest entities, and the International Code of Ethics for Professional Accountants (including International Independence Standards) issued by the International Ethics Standards Board for Accountants (IESBA Code), and we have fulfilled our other ethical responsibilities in accordance with these requirements. To the best of our knowledge and belief, we declare that non-audit services prohibited by either the FRC’s Ethical Standard or Article 5(1) of Regulation (EU) No 537/2014 were not provided. Other than those disclosed in Note 6 to the Financial Statements, we have provided no non-audit services to the Company or its controlled undertakings in the period under audit.# Our audit approach

Overview

Audit scope

• We tailored the scope of our audit to ensure that we performed enough work to be able to give an opinion on the financial statements as a whole.
• Audit procedures on Rental Income, Journal Entries, and Valuation of Investment Properties are performed centrally by the Group audit team in the UK.
• The Group audit team in the UK conducted a full scope audit of SEGRO plc, while auditors in France, Germany, Poland and Italy performed audit of specific balances and transactions. Overall, this provided coverage over 95% of total assets of the Group.
• The Group’s properties are also held through joint venture entities, which are equity accounted. The Group audit team audited specific balances and transactions related to SEGRO European Logistics Partnership (SELP) Joint Venture.

Key audit matters

• Valuation of investment properties (Group)
• Valuation of investments in and loans to subsidiaries (Company)

Materiality

• Overall Group materiality: £181 million (2024: £175 million) based on 1% of total assets.
• Overall Company materiality: £124 million (2024: £122 million) based on 1% of total assets.
• Performance materiality: £135 million (2024: £132 million) (Group) and £93 million (2024:£92 million) (Company).

The scope of our audit

As part of designing our audit, we determined materiality and assessed the risks of material misstatement in the financial statements.

Key audit matters

Key audit matters are those matters that, in the auditors’ professional judgement, were of most significance in the audit of the financial statements of the current period and include the most significant assessed risks of material misstatement (whether or not due to fraud) identified by the auditors, including those which had the greatest effect on: the overall audit strategy; the allocation of resources in the audit; and directing the efforts of the engagement team. These matters, and any comments we make on the results of our procedures thereon, were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. This is not a complete list of all risks identified by our audit. The key audit matters below are consistent with last year.

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Valuation of investment properties (Group)

Given the inherent subjectivity involved in the valuation of investment properties, the need for deep market knowledge when determining the most appropriate assumptions, and the technicalities of the valuation methodology, we engaged our internal valuation experts (qualified chartered surveyors) to assist us in our audit of this matter.

Assessing the Group’s external Valuers’ expertise and objectivity

We assessed the Valuers’ qualifications and expertise and read their terms of engagement with the Group to determine whether there were any matters that might have affected their objectivity or may have imposed scope limitations upon their work. We also considered fees and other contractual arrangements that might exist between the Group and the Valuers. We found no evidence to suggest that the objectivity of the Valuers was compromised.

Testing the valuations assumptions and capital movement:

We obtained and read the CBRE valuation reports covering all of the Group’s investment properties. We held meetings with management and the Valuers, at which the valuations and the key assumptions therein were discussed. We focused on outliers (where the assumptions used and/or year on year capital value movement were out of line with our range of assumptions developed using externally published market data for the relevant sector). To verify that the valuation approach was suitable for use in determining the carrying value for investment properties in the Financial Statements, we:
* Confirmed that the valuation approach was in accordance with RICS standards;
* Obtained valuation details of every property held by the Group and developed ranges for each key valuation assumption or capital value movement, determined by reference to published benchmarks and using our experience and knowledge of the market. Compared the investment yields used by the Valuers with the expected range of yields and the year on year capital movement to our expected range;
* Assessed the reasonableness of other assumptions that are not readily comparable with published benchmarks;
* With the support of our internal valuation experts, we also questioned the external valuers as to the extent to which recent market transactions and expected rental values used in deriving their valuations took into account the impact of climate change and related ESG considerations; and
* Verified where there could be alternative use opportunities, that this had been appropriately taken into account.

In addition to the above, where assumptions were outside the expected range or otherwise appeared unusual, and/or valuations showed unexpected movements, we undertook further investigations and, when necessary, held further discussions with the Valuers and obtained evidence to support explanations received. The supporting evidence and valuation commentaries provided by the Valuers, enabled us to consider the property specific factors that had or may have had an impact on value, including recent comparable transactions where appropriate.

Information and standing data

We agreed the amounts per the valuation reports to the accounting records and from there we agreed the related balances through to the Financial Statements. We tested the standing data which the Group provided to the Valuers for use in the performance of the valuation. This involved testing controls on a sample basis over the input of lease data for leases and testing the accuracy of lease and other property information. For development properties, we also confirmed that the supporting information for construction contracts and budgets was consistent with the Group’s records, for example by inspecting construction contracts. For development properties, capitalised expenditure was tested on a sample basis to invoices, and budgeted costs to complete were compared with supporting evidence (for example construction contracts) to support the inputs included within their valuation at the year end.

Overall outcome

We concluded that the assumptions used in the valuations by the Valuers were supportable in light of the evidence obtained. Refer to the Audit Committee Report and the Financial Statements (including notes to the Financial Statements; Note 1, Material Accounting Policy Information; Note 13, Investment Properties; and Note 25. Property Valuation Techniques, Sustainability and Climate Change Considerations and Related Quantitative Information).

We focused on the valuation of investment properties because investment properties represent the principal element of the net asset value as disclosed in the Balance Sheet in the financial statements and is an area of significant estimation uncertainty. The portfolio is held by the Group, and through joint ventures and includes warehouses and light industrial buildings, including data centres. These are concentrated in the UK, France, Germany and Italy. The remainder of the portfolio is located across other European countries including Poland, Spain, the Netherlands and the Czech Republic. The portfolio includes completed investment properties and development properties. The valuation of the Group’s portfolio is inherently subjective due to, among other factors, the individual nature of each property, its location and the expected future rentals for that particular property. The significance of the estimates and judgements involved, coupled with the fact that only a small percentage difference in individual property valuations, when aggregated, could result in a material misstatement, warranted specific audit focus in this area. For development sites, factors include projected costs to complete, time until practical completion and the ability to let if no pre-let agreement is in place. Valuations are carried out by third party valuers CBRE (the ‘Valuers’). The Valuers were engaged by the directors, and performed their work in accordance with the Royal Institution of Chartered Surveyors (‘RICS’) Valuation – Global Standards 2024. The valuations take into account the property-specific information including the current tenancy agreements and rental income, condition and location of the property, and future rental prospects, as well as prevailing market yields and market transactions.

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Valuation of investments in and loans to subsidiaries (Company)

We assessed the accounting policy for investments and loans to subsidiaries to ensure they were compliant with the applicable accounting standards. We obtained the directors’ impairment assessment for the recoverability of investments in and loans to subsidiaries as at 31 December 2025. We verified that the methodology used by the directors in arriving at the carrying value of each subsidiary, and the expected credit loss provision for intercompany receivables, was compliant with applicable accounting standards. We identified the key estimate within the assessment for impairment of both the investments and loans to subsidiaries to be the underlying valuation of investment property held by the subsidiaries. For details of our procedures over investment property valuations please refer to the Group key audit matter above.

We have no matters to report in respect of this work.Refer to Note 7 (Investments by the Company) to the financial statements which discloses the Company’s investments in and loans to subsidiaries as at 31 December 2025. This is following the recognition of a provision for impairment on investments in and loans to subsidiaries recognised in the year. The Company’s accounting policy for investments and loans is to hold them at cost less any impairment. Impairment of the loans is calculated in accordance with International Financial Reporting Standard 9 (Financial Instruments). Investments in subsidiaries are assessed for impairment in line with International Accounting Standard 36 (Impairment of Assets). Given the inherent judgement in assessing both the carrying value of a subsidiary Company and the expected credit loss of intercompany loan receivables, this was identified as a key audit matter.

Key audit matter

How our audit addressed the key audit matter	How we tailored the audit scope
We tailored the scope of our audit to ensure that we performed enough work to be able to give an opinion on the financial statements as a whole, taking into account the structure of the Group and the Company, the accounting processes and controls, and the industry in which they operate.	The Group’s reportable segments are the two property businesses: United Kingdom (UK) and Continental Europe (CE). In establishing the overall approach to the Group audit, we determined the type of work that needed to be performed at reporting components, based on regions and countries within the UK and CE, by us, as the Group engagement team, or component auditors operating under our instruction.
The Group operates a common IT environment, processes and controls for rental income and payroll across its reported segments. The Group’s valuation and treasury functions are also based at the corporate centre in the UK. The related balances were therefore largely audited by the Group audit team in the UK, including balances held by SELP.	Additionally, audits of specific balances and specified procedures were performed by component audit teams, such that the total testing programme provided sufficient audit evidence over all financial statement line items. We determined the level of involvement we needed to have in the component auditor’s work to be able to conclude whether sufficient appropriate audit evidence had been obtained as a basis for our opinion on the Group financial statements as a whole.
We issued formal, written instructions to the component auditors setting out the work to be performed by each of them. Throughout the audit process, the Group audit team has been in close contact with the audit teams on location in each region to oversee the audit process.	Senior team members also attended the clearance meetings for each component. During the clearance meetings, the results of the work performed by all component teams were discussed. The Group engagement team also evaluated the sufficiency of the audit evidence obtained by component teams.
Taking into account the components, the centralised and other testing performed, coverage over the total assets of the Group was over 95%.	In respect of the Company financial statements, the Group audit team performed a full scope statutory audit.

The impact of climate risk on our audit

In planning our audit, we made enquiries with management to understand the extent of the potential impact of climate change risk on the financial statements. Our evaluation of this conclusion included challenging key judgements and estimates in areas where we considered that there was greatest potential for climate change impact. We particularly considered how climate change risks would impact the assumptions made in the valuation of investment properties as explained in our key audit matter above. We also considered the consistency of the disclosures in relation to climate change made within the Annual Report, the financial statements and the knowledge obtained from our audit.

Materiality

The scope of our audit was influenced by our application of materiality. We set certain quantitative thresholds for materiality. These, together with qualitative considerations, helped us to determine the scope of our audit and the nature, timing and extent of our audit procedures on the individual financial statement line items and disclosures and in evaluating the effect of misstatements, both individually and in aggregate on the financial statements as a whole. Based on our professional judgement, we determined materiality for the financial statements as a whole as follows:

	Financial statements – Group	Financial statements – Company
Overall materiality	£181 million (2024: £175 million).	£ 124 million (2024: £122 million).
How we determined it	1% of total assets	1% of total assets
Rationale for benchmark applied	The primary measurement attribute of the Group is the carrying value of investment properties. On this basis, we set an overall Group materiality level based on total assets.	The primary measurement attribute of the Company is the carrying value of investments in subsidiaries. On this basis, we set an overall Company materiality level based on total assets.

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For each component in the scope of our Group audit, we allocated a materiality that is less than our overall Group materiality. The range of materiality allocated across components was between £37 million and £171 million. Certain components were audited to a local statutory audit materiality that was also less than our overall Group materiality.

We use performance materiality to reduce to an appropriately low level the probability that the aggregate of uncorrected and undetected misstatements exceeds overall materiality. Specifically, we use performance materiality in determining the scope of our audit and the nature and extent of our testing of account balances, classes of transactions and disclosures, for example in determining sample sizes. Our performance materiality was 75% (2024: 75%) of overall materiality, amounting to £135 million (2024: £132 million) for the Group financial statements and £93 million (2024: £92 million) for the Company financial statements. In determining the performance materiality, we considered a number of factors - the history of misstatements, risk assessment and aggregation risk and the effectiveness of controls - and concluded that an amount at the upper end of our normal range was appropriate. We agreed with the Audit Committee that we would report to them misstatements identified during our audit above £9 million (Group audit) (2024: £9 million) and £6 million (Company audit) (2024: £6 million) as well as misstatements below those amounts that, in our view, warranted reporting for qualitative reasons.

Conclusions relating to going concern

Our evaluation of the directors’ assessment of the Group’s and the Company’s ability to continue to adopt the going concern basis of accounting included:
* Procedures to identify events or conditions that may cast significant doubt on the ability to continue as a going concern and whether or not a material uncertainty related to going concern exists;
* Obtaining the directors’ assessment of going concern and assessing the impact and the basis for the downside stress scenarios that have been applied;
* Tested the integrity of the underlying formulas and calculations within the going concern and cashflow models;
* Evaluation and corroboration of management’s significant assumptions used to assess going concern. This includes upcoming debt maturities, contracted capital expenditure and operational cash flows, and whether or not they are appropriate in the context of changes from prior periods and align with our understanding of the entity and other relevant areas of the entity’s business activities;
* Review of potential financial or non-financial debt covenant defaults leading to acceleration of repayment of borrowing facilities; and
* Assessing the Group and Company’s liquidity and whether the entity has adequately disclosed all required going concern events and conditions.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Group’s and the Company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. In auditing the financial statements, we have concluded that the directors’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate. However, because not all future events or conditions can be predicted, this conclusion is not a guarantee as to the Group’s and the Company’s ability to continue as a going concern. In relation to the directors’ reporting on how they have applied the UK Corporate Governance Code, we have nothing material to add or draw attention to in relation to the directors’ statement in the financial statements about whether the directors considered it appropriate to adopt the going concern basis of accounting. Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

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Reporting on other information

The other information comprises all of the information in the Annual Report other than the financial statements and our auditors’ report thereon. The directors are responsible for the other information.Our opinion on the financial statements does not cover the other information and, accordingly, we do not express an audit opinion or, except to the extent otherwise explicitly stated in this report, any form of assurance thereon. In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated. If we identify an apparent material inconsistency or material misstatement, we are required to perform procedures to conclude whether there is a material misstatement of the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report based on these responsibilities.

With respect to the Strategic report and Directors’ Report, we also considered whether the disclosures required by the UK Companies Act 2006 have been included. Based on our work undertaken in the course of the audit, the Companies Act 2006 requires us also to report certain opinions and matters as described below.

Strategic report and Directors’ Report

In our opinion, based on the work undertaken in the course of the audit, the information given in the Strategic report and Directors’ Report for the year ended 31 December 2025 is consistent with the financial statements and has been prepared in accordance with applicable legal requirements. In light of the knowledge and understanding of the Group and Company and their environment obtained in the course of the audit, we did not identify any material misstatements in the Strategic report and Directors’ Report.

Directors’ Remuneration

In our opinion, the part of the Directors’ Remuneration Report to be audited has been properly prepared in accordance with the Companies Act 2006.

Corporate governance statement

The Listing Rules require us to review the directors’ statements in relation to going concern, longer-term viability and that part of the corporate governance statement relating to the Company’s compliance with the provisions of the UK Corporate Governance Code specified for our review. Our additional responsibilities with respect to the corporate governance statement as other information are described in the Reporting on other information section of this report.

Based on the work undertaken as part of our audit, we have concluded that each of the following elements of the corporate governance statement is materially consistent with the financial statements and our knowledge obtained during the audit, and we have nothing material to add or draw attention to in relation to:

• The directors’ confirmation that they have carried out a robust assessment of the emerging and principal risks;
• The disclosures in the Annual Report that describe those principal risks, what procedures are in place to identify emerging risks and an explanation of how these are being managed or mitigated;
• The directors’ statement in the financial statements about whether they considered it appropriate to adopt the going concern basis of accounting in preparing them, and their identification of any material uncertainties to the Group’s and Company’s ability to continue to do so over a period of at least twelve months from the date of approval of the financial statements;
• The directors’ explanation as to their assessment of the Group’s and Company’s prospects, the period this assessment covers and why the period is appropriate; and
• The directors’ statement as to whether they have a reasonable expectation that the Company will be able to continue in operation and meet its liabilities as they fall due over the period of its assessment, including any related disclosures drawing attention to any necessary qualifications or assumptions.

Our review of the directors’ statement regarding the longer-term viability of the Group and Company was substantially less in scope than an audit and only consisted of making inquiries and considering the directors’ process supporting their statement; checking that the statement is in alignment with the relevant provisions of the UK Corporate Governance Code; and considering whether the statement is consistent with the financial statements and our knowledge and understanding of the Group and Company and their environment obtained in the course of the audit.

In addition, based on the work undertaken as part of our audit, we have concluded that each of the following elements of the corporate governance statement is materially consistent with the financial statements and our knowledge obtained during the audit:

133 | SEGRO plc Annual Report & Accounts 2025 Overview Strategic Report Governance Financial Statements Further Information Independent auditors’ report to the members of SEGRO plc continued

In addition, based on the work undertaken as part of our audit, we have concluded that each of the following elements of the corporate governance statement is materially consistent with the financial statements and our knowledge obtained during the audit:

• The directors’ statement that they consider the Annual Report, taken as a whole, is fair, balanced and understandable, and provides the information necessary for the members to assess the Group’s and Company’s position, performance, business model and strategy;
• The section of the Annual Report that describes the review of effectiveness of risk management and internal control systems; and
• The section of the Annual Report describing the work of the Audit Committee.

We have nothing to report in respect of our responsibility to report when the directors’ statement relating to the Company’s compliance with the Code does not properly disclose a departure from a relevant provision of the Code specified under the Listing Rules for review by the auditors.

Responsibilities for the financial statements and the audit

Responsibilities of the directors for the financial statements

As explained more fully in the Statement of Directors’ responsibilities in respect of the Financial Statements, the directors are responsible for the preparation of the financial statements in accordance with the applicable framework and for being satisfied that they give a true and fair view. The directors are also responsible for such internal control as they determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the Group’s and the Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Group or the Company or to cease operations, or have no realistic alternative but to do so.

Auditors’ responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) and ISAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

Based on our understanding of the Group and industry, we identified that the principal risks of non- compliance with laws and regulations related to compliance with the Real Estate Investment Trust (REIT) status and SIIC regime and the UK regulatory principles, such as those governed by the Financial Conduct Authority, and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the financial statements such as the Companies Act 2006. We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to posting inappropriate journal entries to increase revenue, and management bias in accounting estimates and judgemental areas of the Financial Statements such as valuation of investment properties. The Group engagement team shared this risk assessment with the component auditors so that they could include appropriate audit procedures in response to such risks in their work.Audit procedures performed by the Group engagement team and/or component auditors included:
* Discussions with management and internal audit, including consideration of known or suspected instances of non-compliance with laws and regulations and fraud, and review of the reports made by internal audit;
* Understanding management’s internal controls designed to prevent and detect irregularities;
* Assessment of matters, if any, reported on the Group’s whistleblowing helpline and the results of management’s investigation of such matters;
* Reviewing the Group’s litigation register in so far as it related to non-compliance with laws and regulations and fraud;
* Reviewing relevant meeting minutes, including those of the Board of Directors and the Audit Committee;
* Designing audit procedures to incorporate unpredictability around the nature, timing and extent of our testing;
* Review of tax compliance with the involvement of our tax specialists in the audit;
* Procedures relating to the valuation of investment properties described in the related key audit matter above; and
* Identifying and testing journal entries, in particular any journal entries posted with unusual account combinations.

There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

Our audit testing might include testing complete populations of certain transactions and balances, possibly using data auditing techniques. However, it typically involves selecting a limited number of items for testing, rather than testing complete populations. We will often seek to target particular items for testing based on their size or risk characteristics. In other cases, we will use audit sampling to enable us to draw a conclusion about the population from which the sample is selected.

A further description of our responsibilities for the audit of the financial statements in accordance with ISAs (UK) is located on the FRC’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditors’ report.

134 | SEGRO plc Annual Report & Accounts 2025 Overview Strategic Report Governance Financial Statements Further Information

Independent auditors’ report to the members of SEGRO plc continued

As part of an audit in accordance with ISAs, we exercise professional judgement and maintain professional scepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group’s and Company’s internal control.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
• Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group’s and Company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Group to cease to continue as a going concern.
• Evaluate the overall presentation, structure and content of the consolidated financial statements, including the disclosures, and whether the consolidated financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
• Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group and Company to express an opinion on the consolidated financial statements.

We are responsible for the direction, supervision and performance of the Group and Company audit. We remain solely responsible for our audit opinion.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, actions taken to eliminate threats or safeguards applied.

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the consolidated financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

Use of this report

This report, including the opinions, has been prepared for and only for the Company’s members as a body in accordance with Chapter 3 of Part 16 of the Companies Act 2006 and for no other purpose. We do not, in giving these opinions, accept or assume responsibility for any other purpose or to any other person to whom this report is shown or into whose hands it may come save where expressly agreed by our prior consent in writing.

Other required reporting

Companies Act 2006 exception reporting

Under the Companies Act 2006 we are required to report to you if, in our opinion:

• we have not obtained all the information and explanations we require for our audit; or
• adequate accounting records have not been kept by the Company, or returns adequate for our audit have not been received from branches not visited by us; or
• certain disclosures of directors’ remuneration specified by law are not made; or
• the Company financial statements and the part of the Directors’ Remuneration Report to be audited are not in agreement with the accounting records and returns.

We have no exceptions to report arising from this responsibility.

Appointment

We were first appointed by the Company for the financial year ended 31 December 2016. Our uninterrupted engagement covers ten financial years.

Other matter

The Company is required by the Financial Conduct Authority Disclosure Guidance and Transparency Rules to include these financial statements in an annual financial report prepared under the structured digital format required by DTR 4.1.15R – 4.1.18R and filed on the National Storage Mechanism of the Financial Conduct Authority. This auditors’ report provides no assurance over whether the structured digital format annual financial report has been prepared in accordance with those requirements.

Richard Porter (Senior Statutory Auditor)
for and on behalf of
PricewaterhouseCoopers LLP
Chartered Accountants and Statutory Auditors
London
19 February 2026

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Independent auditors’ report to the members of SEGRO plc continued

Group Income Statement
For the year ended 31 December 2025

	2025	2024	Notes
£m	£m
Revenue	726	675	4
Costs	(154)	(144)	5
	572	531
Administrative expenses	(73)	(76)	6
Share of profit from joint ventures after tax	109	53	7
Realised and unrealised property gains	55	195	8
Operating profit	663	703
Finance income	26	92	9
Finance costs	(129)	(159)	9
Profit before tax	560	636
Tax	(9)	(42)	10
Profit after tax	551	594
Earnings per share (pence)
Basic	40.7	44.7	12
Diluted	40.7	44.6	12

Group Statement of Comprehensive Income
For the year ended 31 December 2025

	2025	2024
	£m	£m
Profit for the year	551	594
Items that may be reclassified subsequently to profit or loss
Foreign exchange movement arising on translation of international operations	173	(172)
Fair value movements on derivatives and borrowings in effective hedge relationships	(96)	95
	77	(77)
Tax on components of other comprehensive income/(expense)	—	—
Other comprehensive income/(expense)	77	(77)
Total comprehensive income for the year	628	517

136 | SEGRO plc Annual Report & Accounts 2025 Overview Strategic Report Governance Financial Statements Further Information

Group Income Statement
For the year ended 31 December 2025

	Group		Company
	2025	2024	2025	2024
Notes	£m	£m	£m	£m
Assets
Non-current assets
Intangible assets	44	37	—	—
Investment properties	13	15,998	15,303	—
Other interests in property	21	17	—	—
Property, plant and equipment	40	34	—	1
Investments in subsidiaries	7	—	—	12,403
Investments in joint ventures	7	1,715	1,552	—
Other investments	16	12	—	—
Other
receivables 14 3 2 — — Derivative financial instruments 17 25 48 25 48 17,862 17,005 12,428 11,945 Current assets Trading properties 1 6 — — Trade and other receivables 14 185 178 20 34 Tax asset 20 19 — — Derivative financial instruments 17 2 3 2 3 Cash and cash equivalents 16 111 363 10 266 319 569 32 303 Total assets 18,181 17,574 12,460 12,248 Liabilities Non-current liabilities Borrowings 16 4,386 4,607 3,523 3,253 Deferred tax liabilities 10 210 192 — — Trade and other payables 15 82 70 2,159 2,124 Derivative financial instruments 17 82 75 82 75 4,760 4,944 5,764 5,452 Current liabilities Trade and other payables 15 512 502 52 56 Borrowings 16 565 — — — Derivative financial instruments 17 60 44 60 44 Tax liabilities 11 35 1 1 1,148 581 113 101 Total liabilities 5,908 5,525 5,877 5,553 Net assets 12,273 12,049 6,583 6,695

Group Company	2025	2024	2025	2024
£m	£m	£m	£m
Equity
Share capital	18 135	135	135	135
Share premium	19 4,569	4,569	4,569	4,569
Capital redemption reserve	19 114	114	114	114
Own shares held	19 (5)	(4)	(5)	(4)
Other reserves	19 196	124	217	220
Retained earnings	1 7,264	7,111	1,553	1,661
Total equity	12,273	12,049	6,583	6,695
Net assets per ordinary share (pence)
Basic	12 907	891
Diluted	12 906	889

1 The profit of SEGRO plc (Company) in 2025 was £294 million (2024: £499 million).

The Financial Statements of SEGRO plc (registered number 167591) on pages 136 to 180 were approved by the Board of Directors and authorised for issue on 19 February 2026 and signed on its behalf by:

David Sleath	Susanne Schroeter
Chief Executive	Chief Financial Officer

137 | SEGRO plc Annual Report & Accounts 2025 Overview Strategic Report Governance Financial Statements Further Information

Balance Sheets

As at 31 December 2025

	Other reserves	Translation, hedging and other reserves 1	Capital redemption reserve 1	Share premium	Ordinary share capital 1	Own shares held 1	Merger reserve 1	Retained earnings	Total equity
Group	£m	£m	£m	£m	£m	£m	£m	£m	£m
Balance at 1 January 2025	25	(70)	114	4,569	135	(4)	169	7,111	12,049
Profit for the year	—	—	—	—	—	—	—	551	551
Other comprehensive income	—	77	—	—	—	—	—	—	77
Total comprehensive income for the year	—	77	—	—	—	—	—	551	628
Transactions with owners of the Company
Own shares acquired	—	—	—	—	—	(4)	—	—	(4)
Equity-settled share-based transactions	3	(5)	—	—	—	—	—	7	5
Dividends	—	—	—	—	—	—	—	(405)	(405)
Total transaction with owners of the Company	—	(5)	—	—	—	(4)	—	(398)	(404)
Balance at 31 December 2025	20	7	114	4,569	135	(5)	169	7,264	12,273
1 See Note 19.

For the year ended 31 December 2024

	Other reserves	Translation, hedging and other reserves 1	Capital redemption reserve 1	Share premium	Ordinary share capital 1	Own shares held 1	Merger reserve 1	Retained earnings	Total equity
Group	£m	£m	£m	£m	£m	£m	£m	£m	£m
Balance at 1 January 2024	28	7	114	3,577	123	(2)	169	6,888	10,904
Profit for the year	—	—	—	—	—	—	—	594	594
Other comprehensive expense	—	(77)	—	—	—	—	—	—	(77)
Total comprehensive income/(expense) for the year	—	(77)	—	—	—	—	—	594	517
Transactions with owners of the Company
Issue of shares	—	—	—	878	11	—	—	—	889
Own shares acquired	—	—	—	—	—	(5)	—	—	(5)
Equity-settled share-based transactions	3	(3)	—	—	—	—	—	8	8
Dividends 1	—	—	—	114	1	—	—	(379)	(264)
Total transaction with owners of the Company	—	(3)	—	992	12	(5)	—	(371)	628
Balance at 31 December 2024	25	(70)	114	4,569	135	(4)	169	7,111	12,049
1 See Note 19.

138 | SEGRO plc Annual Report & Accounts 2025 Overview Strategic Report Governance Financial Statements Further Information

Statements of Changes in Equity

For the year ended 31 December 2025

Company	Ordinary share capital £m	Share premium £m	Capital redemption reserve 1 £m	Own shares held 1 £m	Share-based payments reserves 1 £m	Translation, hedging and other reserves 1 £m	Merger reserve 1 £m	Retained earnings £m	Total equity £m
Balance at 1 January 2025	135	4,569	114	(4)	4	47	169	1,661	6,695
Profit for the year	—	—	—	—	—	—	—	294	294
Other comprehensive expense	—	—	—	—	—	—	—	—	—
Total comprehensive income for the year	—	—	—	—	—	—	—	294	294
Transactions with owners of the Company
Issue of shares	—	—	—	—	—	—	—	—	—
Own shares acquired	—	—	—	(4)	—	—	—	—	(4)
Equity-settled share-based transactions	—	—	—	3	(3)	—	—	3	3
Dividends	—	—	—	—	—	—	—	(405)	(405)
Total transaction with owners of the Company	—	—	—	(1)	(3)	—	—	(402)	(406)
Balance at 31 December 2025	135	4,569	114	(5)	1	47	169	1,553	6,583
1 See Note 19.

For the year ended 31 December 2024

Company	Ordinary share capital £m	Share premium £m	Capital redemption reserve 1 £m	Own shares held 1 £m	Share-based payments reserves 1 £m	Translation, hedging and other reserves 1 £m	Merger reserve 1 £m	Retained earnings £m	Total equity £m
Balance at 1 January 2024	123	3,577	114	(2)	8	47	169	1,542	5,578
Profit for the year	—	—	—	—	—	—	—	499	499
Other comprehensive expense	—	—	—	—	—	—	—	—	—
Total comprehensive income for the year	—	—	—	—	—	—	—	499	499
Transactions with owners of the Company
Issue of shares	11	878	—	—	—	—	—	—	889
Own shares acquired	—	—	—	(5)	—	—	—	—	(5)
Equity-settled share-based transactions	—	—	—	3	(4)	—	—	(1)	(2)
Dividends 1	114	—	—	—	—	—	—	(379)	(264)
Total transaction with owners of the Company	12	992	—	(2)	(4)	—	—	(380)	618
Balance at 31 December 2024	135	4,569	114	(4)	4	47	169	1,661	6,695
1 See Note 19.

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Statements of Changes in Equity continued

For the year ended 31 December 2025

	Group
	2025	2024
Notes	£m	£m
Cash flows from operating activities
Cash generated from operations	24(i) 492	459
Interest received	42	75
Dividends received	63	29
Interest paid	(172)	(209)
Cost of new interest rate derivatives transacted	(4)	(7)
Tax paid	(25)	(17)
Net cash received from operating activities	396	330
Cash flows from investing activities
Purchase and development of investment properties 1	(444)	(1,000)
Sale of investment properties	45	623
Acquisition of other interests in property	(5)	(4)
Refunds from other interests in property	—	11
Purchase of plant and equipment and intangibles	(29)	(24)
Acquisition of other investments	(3)	(2)
Investment and loans to joint ventures	(5)	(3)
Divestment from and repayment of loans by joint ventures	39	30
Net cash used in investing activities	(402)	(369)
Cash flows from financing activities
Dividends paid	11 (405)	(277)
Proceeds from borrowings	24(iii) 268	419
Repayment of borrowings	24(iii) (88)	(999)
Principal element of lease payments	24(iv) (2)	(2)
Settlement of foreign exchange derivatives	(15)	1
Proceeds from issue of ordinary shares	—	889
Purchase of ordinary shares	(4)	(5)
Net cash (used in)/generated from financing activities	(246)	26
Net decrease in cash and cash equivalents	(252)	(13)
Cash and cash equivalents at the beginning of the year	363	376
Effect of foreign exchange rate changes	—	—
Cash and cash equivalents at the end of the year	16	111

1 Cash payment for the purchase and development of investment properties of £444 million (2024: £1,000 million) represents total costs for property acquisitions and additions to existing investment properties per Note 13 of £500 million (2024: £99 3 million) adjusted for the following cash and non-cash movements: deducts interest capitalised of £63 million (2024: £67 million) and includes net movement in capital related accruals, prepayments and VAT of £7 million (2024: £74 million).

140 | SEGRO plc Annual Report & Accounts 2025 Overview Strategic Report Governance Financial Statements Further Information

Cash Flow Statement

For the year ended 31 December 2025

1. Material Accounting Policy Information

General information

SEGRO plc (the Company) is a public limited company, limited by shares, incorporated, domiciled and registered in England in the United Kingdom under the Companies Act. The address of the registered office is given on the inside back cover. The principal activities of the Company and its subsidiaries (the Group) and the nature of the Group’s operations are set out in the Strategic Report on pages 18 to 19. These Financial Statements are presented in pounds sterling to the nearest million because that is the currency of the primary economic environment in which the Group operates and is the functional currency of the Company.

Basis of preparation

The Group Financial Statements have been prepared in accordance with UK-adopted International Accounting Standards (IAS) and International Financial Reporting Standards (IFRS) adopted pursuant to Regulation (EC) No 1606/2002 as it applies in the European Union. UK adopted International Accounting Standards differ in certain respects from International Financial Reporting Standards as adopted by the EU. The differences have no material impact on the Financial Statements for the periods presented, which therefore also comply with International Reporting Standards as adopted by the EU. In addition, the Group has also disclosed additional measures relating to the Best Practice Recommendations Guidelines issued by the European Public Real Estate Association (EPRA) as appropriate, as discussed further in Note 2 and Note 12. The Company’s Financial Statements have been prepared in accordance with Financial Reporting Standard 101 Reduced Disclosure Framework (FRS 101) and the requirements of the Companies Act 2006 as applicable to companies reporting under those standards. The Directors have taken advantage of the exemption offered by section 408 of the Companies Act 2006 not to present a separate income statement and statement of comprehensive income for the Company.
```In these Financial Statements, the Company has applied the exemptions under FRS 101 in respect of the following disclosures:
* IAS 7 ‘Statement of Cash Flows’ and related notes
* Disclosure in respect of transactions with wholly-owned subsidiaries
* The effects of new but not yet effective IFRSs
* Paragraph 17 of IAS 24 ‘Related Party Disclosures’

As the Group Financial Statements include the equivalent disclosures, the Company has also taken the exemptions under FRS 101 available in respect of the following disclosures:
* The requirements of paragraphs 91–99 of IFRS 13 ‘Fair Value Measurement’ to disclose information of fair value valuation techniques and inputs
* Disclosures required by IFRS 7 ‘Financial Instruments: Disclosures’

The Financial Statements have been prepared on a going concern basis. As discussed in the Financial review on pages 41 and 42, the Directors have a reasonable expectation that the Company and Group have adequate resources to continue in operational existence for a period of at least 12 months from the date of approval of the Financial Statements. The Group and Company Balance Sheets show a net current liability position as at 31 December 2025, the Group position predominantly due to current borrowings of £565 million. At 31 December 2025 the Group held cash and available committed facilities of £1.6 billion (Company: £1.6 billion) with a long-dated debt maturity profile. This provides significant liquidity for the Group and Company to meet current liabilities as they fall due including the refinancing requirements of maturing debt, operational requirements and capital commitments for the foreseeable future. The financial covenants have been stress tested and substantial headroom exists against the gearing and interest cover covenants at 31 December 2025 and the covenants are not expected to be breached for a period of at least 12 months from the date of approval of the Financial Statements.

The Financial Statements have been prepared under the historical cost convention as modified by the revaluation of properties and certain financial assets and liabilities including derivatives. The accounting policies set out below have, unless otherwise stated, been applied consistently to all periods presented in these Group and Company Financial Statements.

New and amended standards adopted

The Group and Company has applied the following amendments for the first time for their annual reporting period commencing 1 January 2025:
* Amendments to IAS 21 – Lack of Exchangeability

The amendments did not have a material impact on the amounts recognised in the prior or current period and are not expected to significantly affect future periods.

New standards and amendments not yet adopted

Certain new accounting standards and amendments are effective for annual periods beginning after 1 January 2025, and have not been applied in preparing these Financial Statements:
* Amendments to IFRS 9 and IFRS 7, Classification and Measurement of Financial Instruments
* Annual Improvements to IFRS Accounting Standards – Volume 11
* IFRS 19, ‘Subsidiaries without Public Accountability: Disclosures’
* IFRS 18, ‘Presentation and Disclosure in Financial Statements’

IFRS 18 will replace IAS 1 ‘Presentation of Financial Statements’ and is effective for annual periods beginning on or after 1 January 2027. IFRS 18 will not impact the recognition or measurement of items in the Financial Statements, but its impacts on presentation and disclosure is expected to be material. Management is currently assessing the detailed implications of applying the new standard on the Group’s consolidated Financial Statements. The other standards and amendments that are not yet effective are not expected to have a material impact on the Group in the current or future reporting periods and on the foreseeable future transactions.

Basis of consolidation

The consolidated Financial Statements comprise the Financial Statements of the Company and the Subsidiaries (the Group), plus the Group’s share of the results and net assets of its joint ventures.

141 | SEGRO plc Annual Report & Accounts 2025 Overview Strategic Report Governance Financial Statements Further Information

Notes to the Financial Statements

For the year ended 31 December 2025

1. Material Accounting Policy Information continued

Subsidiaries

Subsidiaries are entities controlled by the Group. The Group controls an entity when it is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. In assessing control, the Group takes into consideration potential voting rights. The acquisition date is the date on which control is transferred to the acquirer. The Financial Statements of subsidiaries are included in the consolidated Financial Statements from the date that control commences until the date that control ceases. Losses applicable to the non-controlling interests in a subsidiary are allocated to the non-controlling interests even if doing so causes the non-controlling interests to have a deficit balance.

Investments and loans in subsidiaries held by the Company

Investments and loans in subsidiaries held by the Company are stated at cost less any impairment. Impairment of loans is calculated in accordance with IFRS 9 and impairment of investments is calculated in accordance with IAS 36 with further details provided in Note 7(iv).

Joint ventures

A joint venture is a contract under which the Group and other parties undertake an activity or invest in an entity, under joint control. The Group uses equity accounting for such entities, carrying its investment at cost plus the movement in the Group’s share of net assets after acquisition, less impairment.

Associates

Associates are all entities over which the Group has significant influence but not control or joint control. This is generally the case where the Group holds between 20 per cent and 50 per cent of the voting rights. The Group uses equity accounting for such entities, carrying its investment at cost plus the movement in the Group’s share of net assets after acquisition, less impairment. Where the Group’s share of losses in an equity accounted investment equals or exceeds its interest in the entity, the Group does not recognise further losses unless it has incurred obligations or made payments on behalf of the other entity.

Transactions eliminated on consolidation

Intra-Group balances and transactions, and any unrealised income and expenses arising from intra-Group transactions, are eliminated. Unrealised gains arising from transactions with equity accounted investees are eliminated against the investment to the extent of the Group’s interest in the investee. Unrealised losses are eliminated in the same way as unrealised gains, but only to the extent that there is no evidence of impairment on the asset transferred.

Business combinations

The acquisition of subsidiaries is accounted for using the acquisition method. The cost of the acquisition is measured at the aggregate of the fair values of assets given, liabilities incurred or assumed, and equity instruments issued by the Group in exchange for control of the acquiree. Acquisition related costs are recognised in the Income Statement as incurred. The acquiree’s identifiable assets, liabilities and contingent liabilities that meet the conditions for recognition under IFRS 3 are recognised at their fair value at the acquisition date, except for non-current assets (or disposal groups) that are classified as held for sale in accordance with IFRS 5 ‘Non-current Assets Held for Sale and Discontinued Operations’, which are recognised and measured at fair value less costs to sell.

Goodwill arising on acquisition is recognised as an asset measured at cost, being the excess of the cost of the business combination over the Group’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities recognised. If, after reassessment, the Group’s interest in the net fair value of the acquiree’s identifiable assets, liabilities and contingent liabilities exceeds the cost of the business combination, the excess is recognised immediately in the Income Statement.

The interest of non-controlling interest shareholders in the acquiree is initially measured at their proportion of the net fair value of the assets, liabilities and contingent liabilities recognised.

When the consideration transferred by the Group in a business combination includes a contingent consideration arrangement, the contingent consideration is measured at its acquisition-date fair value. Changes in fair value of the contingent consideration that qualify as measurement period adjustments are adjusted retrospectively, with corresponding adjustments against goodwill. Measurement period adjustments are adjustments that arise from additional information obtained during the ‘measurement period’ (which cannot exceed one year from the acquisition date) about facts and circumstances that existed at the acquisition date. Contingent consideration that is classified as an asset or a liability is remeasured at subsequent reporting dates in accordance with IFRS 9, as appropriate, with the corresponding gain or loss being recognised in the Income Statement.

If the business combination is achieved in stages, the acquisition date carrying value of the acquirer’s previously held equity interest in the acquiree is remeasured to fair value at the acquisition date. Any gains or losses arising from such remeasurement are recognised in the Income Statement within realised and unrealised property gains and losses. The same treatment is applied for acquisitions of a subsidiary achieved in stages that meet the IFRS 3 concentration test to be treated as an asset acquisition.For acquisitions of a subsidiary that meet the IFRS 3 concentration test to be treated as an asset acquisition, the Group allocates the cost between the individual identifiable assets and liabilities in the Group based on their relative fair values at the date of acquisition. Such transactions do not give rise to goodwill, generally no deferred tax is recognised on initial temporary differences and transaction costs are capitalised. The Group has elected to initially measure the interest of non-controlling interest shareholders in the acquiree at their proportion of the acquisition date net fair value of the assets, liabilities and contingent liabilities recognised.

Foreign currency transactions

Foreign currency transactions are translated to the respective functional currency of Group entities at the foreign exchange rate ruling on the transaction date. Foreign exchange gains and losses resulting from settling these, or from retranslating monetary assets and liabilities held in foreign currencies, are booked in the Income Statement. The exception is for foreign currency loans and derivatives that hedge investments in foreign subsidiaries, where exchange differences are booked in equity until the investment is realised.

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Notes to the Financial Statements continued
For the year ended 31 December 2025

1. Material Accounting Policy Information continued

Consolidation of foreign entities

Assets and liabilities of foreign entities are translated into sterling at exchange rates ruling at the Balance Sheet date. Their income, expenses and cash flows are translated at the average rate for the period or at a spot rate for significant items. Resultant exchange differences are booked in Other Comprehensive Income and recognised in the Group Income Statement when the operation is sold. The principal exchange rates used to translate foreign currency denominated amounts in 2025 are:

Balance Sheet: £1 = €1.15 (2024: £1 = €1.21).
Income Statement: £1 = €1.17 (2024: £1 = €1.18).

Investment properties

These properties include completed properties that are generating rent or are available for rent, and development properties that are under development, available for development or income-producing properties acquired with the explicit intention to take back for redevelopment (covered land). Investment properties comprise freehold and leasehold properties and are first measured at cost (including transaction costs), then revalued to market value at each reporting date by professional valuers. Lease liabilities associated with leasehold properties are accounted for under IFRS 16, see the Leases accounting policy. If a valuation obtained for a property held under a lease is net of all payments expected to be made, any related lease liability recognised separately in the Balance Sheet is added back to arrive at the carrying value of the investment property for accounting purposes. Valuation gains and losses in a period are taken to the Income Statement. As the Group uses the fair value model, as per IAS 40 ‘Investment Property’, no depreciation is provided. An asset will be classified as held for sale within investment properties, in line with IFRS 5 ‘Non-current Assets Held for Sale and Discontinued Operations’, where the asset is available for immediate sale in its present condition and the sale is highly probable. Investment properties are transferred to trading properties when there is a change in use and the property ceases to meet the definition of investment property.

Other interests in property

Other interests in property include the cost and related fees in respect of land options, which are initially capitalised and regularly tested for impairment. The impairment review includes consideration of the resale value of the option and likelihood of achieving planning consent.

Property acquisitions and disposals

Properties are treated as acquired at the point when the Group assumes the control of ownership and as disposed when transferred to the buyer. Generally, this would occur on completion of the contract. Any gain or loss arising on derecognition of the property, which is calculated as the difference between the net disposal proceeds and the carrying amount of the asset at the commencement of the accounting period plus capital expenditure in the period, is included in profit or loss in the period in which the property is derecognised. Gains or losses on disposal of investment properties are shown in the Income Statement within realised and unrealised property gains and losses.

Leases

At inception, the Group assesses whether a contract is or contains a lease. This assessment involves the exercise of judgement about whether the Group obtains substantially all the economic benefits from the use of that asset, and whether the Group has the right to direct the use of the asset. The Group recognises a right-of-use (ROU) asset and the lease liability at the commencement date of the lease. Lease liabilities include the present value of payments which, generally include fixed payments and variable payments that depend on an index (such as an inflation index). When the lease contains an extension or purchase option that the Group considers reasonably certain to be exercised, the cost of the option is included in the lease payments. Each lease payment is allocated between the liability and finance cost. The lease payments are discounted using the interest rate implicit in the lease if that rate can be readily determined, or if not, the incremental borrowing rate is used. The finance cost is charged to profit or loss over the lease period so as to produce a constant rate of interest on the remaining balance of the liability for each period. Cash payments relating to the principal portion of the lease liabilities are presented as cash flows from financing activities and cash payments for the interest portion are presented as cash flows from operating activities. The ROU asset is measured at a cost based on the amount of the initial measurement of the lease liability, plus initial direct costs and the cost of obligations to refurbish the asset, less any incentives received. The ROU asset (other than the ROU assets that relate to land or property that meets the definition of investment property under IAS 40) is depreciated over the shorter of the lease term or the useful life of the underlying asset. The ROU asset is subject to testing for impairment if there is an indicator of impairment. ROU assets are included in the heading property, plant and equipment, and the lease liability included in the headings current and non-current trade and other payables on the Balance Sheet. Where the ROU asset relates to land or property that meets the definition of investment property under IAS 40, after initial recognition the ROU asset is subsequently accounted for as investment property and carried at fair value (see Investment properties accounting policy). Valuation gains and losses in a period are taken to the Income Statement. The ROU assets are included in the heading investment properties, and the lease liability in the headings current and non-current trade and other payables on the Balance Sheet. The Group has elected not to recognise ROU assets and liabilities for leases where the total lease term is less than or equal to 12 months, or for low value leases. The payments for such leases are recognised in the Income Statement on a straight-line basis over the lease term.

Revenue

Revenue includes gross rental income, joint venture management and performance fee income, income from service charges and other recoveries from tenants and proceeds from the sale of trading properties.

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Notes to the Financial Statements continued
For the year ended 31 December 2025

1. Material Accounting Policy Information continued

Rental income

Rental income from properties let as operating leases is recognised on a straight-line basis over the lease term. Lease incentives and initial costs to arrange leases are capitalised, then amortised on a straight-line basis over the lease term (rent averaging). Surrender premiums received in the period are included in rental income. Changes in the scope or the consideration for a lease that was not part of the original terms and conditions, which might arise as a result of lease concessions, are accounted as a lease modification. Lease modifications are accounted for as a new lease from the effective date of the modification, considering any prepaid or accrued lease payments relating to the original lease as part of the lease payments for the new lease. Concessions granted to tenants after the date the conceded rent falls due are accounted for as an expected credit loss and not as a lease modification on the basis there is no change to the consideration or scope of the lease.

Service charges and other recoveries from tenants

These include income in relation to service charges, directly recoverable expenditure and management fees. Revenue from providing services is recognised in the accounting period in which the services are rendered. Revenue from services is recognised based on the actual service provided to the end of the reporting period as a proportion of the total services to be provided and recognised over time. The Group generally acts as the principal in service charge transactions as it directly controls the delivery of the services at the point they are provided to the tenant. Where the Group acts as a principal, service charge income is presented gross within revenue and service charge expense presented gross within costs.# Joint venture management and performance fees

Joint venture management and performance fees are recognised as income in the period to which they relate. Management fees are recognised in the accounting period in which the services are rendered. Revenue from services is recognised based on the actual service provided to the end of the reporting period as a proportion of the total services to be provided and recognised over time. Performance fees are based on the joint venture’s performance over the performance period and payable subject to meeting certain criteria and hurdle rates at the end of the period (further details are given in Note 7). Performance fees are recognised during and at the end of the performance period to the extent that it is highly probable there will not be a significant future reversal and the fee can be reliably estimated.

Sale of trading properties

Proceeds from the sale of trading properties are recognised at the point in time at which control of the property has been transferred to the purchaser. Therefore, revenue is recognised at a point in time and generally occurs on completion of the contract.

Property, plant and equipment

Plant and equipment are stated at historic cost less accumulated depreciation. Cost includes purchase price and any directly attributable costs. Depreciation is recognised so as to write off the cost or valuation of assets (other than investment properties) less their residual values, using the straight-line method, on the following bases:

Asset Type	Rate
Plant and equipment	20% per annum
Solar panels	5% per annum

The estimated useful lives, residual values and depreciation method are reviewed at the end of each reporting period, with the effect of any changes in estimate accounted for on a prospective basis. Property relates to the ROU asset recognised for office leases entered into by the Group. The ROU asset is initially measured based on the present value of lease payments, plus initial direct costs and the cost of obligations to refurbish the asset, less any incentives received. The ROU asset is depreciated over the shorter of the lease term or the useful life of the underlying asset.

Financial instruments

Borrowings

Borrowings are recognised initially at fair value less attributable transaction costs. Subsequent to initial recognition, borrowings are stated at amortised cost with any difference between the amount initially recognised and the redemption value being recognised in the Income Statement over the period of the borrowings, using the effective interest rate method.

General and specific borrowing costs that are directly attributable to expenditure on properties under development are capitalised. Expenditure includes the purchase cost of a site if it has been purchased with the specific intention to redevelop. Interest is capitalised from the commencement of the development activity until the date of practical completion. The capitalisation of borrowing costs is suspended if there are prolonged periods when development activity is interrupted. The interest capitalised is calculated using the Group’s weighted average cost of borrowing for the relevant currency, or, if appropriate, the rate on specific associated borrowings.

Derivative financial instruments and hedging activities

The Group uses derivatives (principally interest rate swaps, currency swaps, forward foreign exchange contracts, interest floors and interest caps) in managing interest rate risk and foreign currency risk, and does not use them for trading. They are recorded, and subsequently revalued, at fair value, with revaluation gains or losses being immediately taken to the Income Statement (fair value through profit or loss ‘FVPL’). The exception is for derivatives qualifying as hedges, when the treatment of the gain/loss depends upon the item being hedged, and may go to other comprehensive income within the Statement of Comprehensive Income (fair value through other comprehensive income ‘FVOCI’).

Derivatives with a maturity of less than 12 months or that expect to be settled within 12 months of the Balance Sheet date are presented as current assets or liabilities. Other derivatives are presented as non-current assets or liabilities.

Hedge accounting is applied to net investments in foreign operations in non-functional currencies using forward foreign exchange derivatives and foreign currency denominated debt. Changes in the fair value on remeasurement of derivatives and exchange differences on foreign currency denominated debt are recorded in other comprehensive income and accumulated in the translation reserve within equity to the extent that the hedges are effective. Any ineffectiveness is recognised in the Income Statement within net finance costs. The cumulative gains and losses remain in equity until the associated hedged item is disposed of, at which point they are reclassified to the Income Statement.

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Notes to the Financial Statements continued

For the year ended 31 December 2025

1. Material Accounting Policy Information continued

Financial instruments continued

Trade and other receivables and payables

Trade and other receivables are booked at fair value and subsequently measured at amortised cost using the effective interest method. Trade and other payables are initially measured at fair value, net of transaction costs and subsequently measured at amortised costs using the effective interest method. The Group applies the IFRS 9 simplified approach to measuring expected credit losses (ECLs), which uses a lifetime expected loss allowance for all trade receivables. Note 17(vi) details the Group’s calculation for measuring ECLs.

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits and other short-term highly liquid investments with original maturities of three months or less that are readily convertible to a known amount of cash, and are subject to an insignificant risk of changes in value.

Share-based payments

The cost of granting share options and other share-based remuneration is measured at their fair value at the grant date. The costs are expensed straight-line over the vesting period in the Income Statement, based on estimates of the shares or options that will eventually vest. Charges are reversed if it appears that non-market-based performance conditions will not be met. The fair value excludes the effect of non-market-based vesting conditions. At each Balance Sheet date, the Group revises its estimate of the number of equity instruments expected to vest as a result of the effect of non-market-based vesting conditions. The impact of the revision of the original estimates, if any, is recognised in the Income Statement such that the cumulative expense reflects the revised estimate, with a corresponding adjustment to equity within the share-based payment reserve.

Share capital

Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares or options are shown in equity as a deduction, net of tax, from the proceeds. When shares recognised as equity are repurchased, the amount of the consideration paid, which includes directly attributable costs, is recognised as a deduction from equity. Repurchased shares are classified as treasury shares and are presented in the treasury share reserve. When treasury shares are sold or reissued subsequently, the amount received is recognised as an increase in equity and the resulting surplus or deficit on the transaction is presented within share premium. Shares held by Ocorian Limited and Equiniti Limited to satisfy various Group share schemes are disclosed as own shares held and deducted from contributed equity.

Income tax

Income tax on the profit or loss for the year comprises current and deferred tax. Current tax is the tax payable on the taxable income for the year and any adjustment in respect of previous years. Current tax is calculated on the basis of the tax laws enacted or substantively enacted at the end of the reporting period in the countries where the Company’s subsidiaries operate and generate taxable income.

Deferred tax is provided in full using the Balance Sheet liability method on temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. Deferred tax is determined using tax rates that have been enacted or substantively enacted by the reporting date and are expected to apply when the asset is realised or the liability is settled. No provision is made for temporary differences (i) arising on the initial recognition of assets or liabilities, other than a business combination and leases that affect neither accounting nor taxable profit; and (ii) relating to investments in subsidiaries to the extent that they will not reverse in the foreseeable future. Deferred tax assets are recognised to the extent that it is probable that suitable taxable profits will be available against which deductible temporary differences can be utilised. The Group applies the exception to recognising and disclosing information about deferred tax assets and liabilities related to Pillar Two income taxes, as provided in the amendments to IAS 12 issued in May 2023.

Critical accounting judgements and key sources of estimation uncertainty

In the application of the Group’s accounting policies, the Directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis.# Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revisions and future periods if the revision affects both current and future periods.

Significant areas of estimation uncertainty

Property valuations

Valuation of property is a central component of the business. In estimating the fair value, the Group engages third-party qualified valuers to perform the valuation. Information about the valuation techniques and inputs used in determining the fair value of the property portfolio is disclosed in Note 25 Property valuation techniques and related quantitative information.

Significant areas of judgements in applying the Group’s accounting policies

Accounting for significant property transactions

Property transactions are complex in nature. Management considers each material transaction separately, with an assessment carried out to determine the most appropriate accounting treatment and judgements applied. The judgements include whether the transaction represents an asset acquisition or business combination and the cut-off for property transactions on recognition of property assets and revenue recognition. In making its judgement over the cut-off for property transactions, management considers whether the control of ownership of the assets acquired or disposed of has transferred to or from the Group (this consideration includes the revenue recognition criteria set out in IFRS 15 for the sale of trading properties).

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Notes to the Financial Statements continued
For the year ended 31 December 2025

1. Material Accounting Policy Information continued

Significant areas of judgements in applying the Group’s accounting policies continued

Accounting for significant property transactions continued

In making its judgement on whether the acquisition of property through the purchase of a corporate vehicle represents an asset acquisition or business combination, management considers whether the integrated set of assets and activities acquired contain both inputs and processes along with the ability to create outputs. Management also applies the optional ‘concentration test’ allowed under IFRS 3. When applying the optional test, management considers if substantially all of the fair value of gross assets acquired is concentrated in a single asset (or a group of similar assets). Where management judges that substantially all of the fair value of the gross assets acquired are concentrated in a single asset (or a group of similar assets) and the ‘concentration test’ is met, the assets acquired would not represent a business and the purchase would be treated as an asset acquisition. There were no property transactions during the current or prior year requiring significant judgement.

REIT status

The Company has elected for UK REIT and French SIIC status. To continue to benefit from these tax regimes, the Group is required to comply with certain conditions as outlined in Note 10. Management intends that the Group should continue as a UK REIT and a French SIIC for the foreseeable future.

Uncertain tax positions

The Group is subject to periodic challenges by local tax authorities on a range of tax matters during the normal course of business. The tax impact can be uncertain until a conclusion is reached with the relevant tax authority or through a legal process. Management’s judgement is required in assessing the likelihood of whether a liability, including any associated penalties, will arise and the significant assessment relating to the recognition of withholding tax in France and is discussed further in Note 10.

2. Adjusted Profit

Adjusted profit is a non-GAAP measure and is the Group’s measure of underlying profit, which is used by the Board and senior management to measure and monitor the Group’s income performance. It is based on the Best Practices Recommendations Guidelines of European Public Real Estate Association (EPRA), which calculate profit excluding investment and development property revaluations and gains or losses on disposals. Changes in the fair value of financial instruments and associated close-out costs and their related taxation, as well as other permitted one-off items, are also excluded. Refer to the Supplementary Notes for all EPRA adjustments. The Directors may also exclude from the EPRA earnings measure additional items (gains and losses), which are considered by them to be non-recurring, unusual or significant by virtue of size and nature. In excluding such items going forward, management believe this gives a better measure of the underlying performance of the business. No non-EPRA adjustments to underlying profit were made in the current and prior year.

	2025	2024	Notes
£m	£m
Gross rental income	637	592	4
Property operating expenses	(94)	(92)	5
Net rental income	543	500
Joint venture management fee income	25	26	4
Management and development fee income	3	6	4
Net service charge and other income	2	1	(1)
Administrative expenses	(73)	(76)	6
Share of joint ventures' Adjusted profit after tax	78	83	1
Adjusted operating profit before interest and tax	577	538
Net finance costs	(68)	(68)	9
Adjusted profit before tax	509	470
Adjustments to reconcile to IFRS:
Adjustments to the share of profit from joint ventures after tax	31	(30)	1, 7
Realised and unrealised property gains	55	195	8
Profit on sale of trading properties	2	—	8
Cost of early close-out of debt	—	(2)	9
Net fair value (loss)/gain on interest rate swaps and other derivatives	(35)	3	9
Solar panel depreciation	(2)	—	2
Total adjustments	51	166
Profit before tax	560	636
Tax
On Adjusted profit	(14)	(12)	10
In respect of adjustments	5	(30)	10
Total tax adjustments	(9)	(42)
Profit after tax	551	594
Of which: Adjusted profit after tax	495	458
Total adjustments after tax	56	136

1 Net a detailed breakdown of the adjustments to the share of profit from joint ventures is included in Note 7.
2 Net service charge and other income of £1 million (2024: £1 million expense) is calculated as Service charge and other income of £51 million (2024: £51 million) shown in Note 4, less Service charge and other expenses of £52 million (2024: £52 million) shown in Note 5 and adds back solar panel depreciation of £2 million (2024: £nil). Solar depreciation is shown outside of Adjusted profit in line with the updated EPRA guidelines for reporting periods after 1 October 2024.

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Notes to the Financial Statements continued
For the year ended 31 December 2025

3. Segmental Analysis

The Group’s reportable segments are the two property businesses, United Kingdom (UK) and Continental Europe (CE). These two property businesses are managed and their operating results reported to the Executive Directors (‘chief operating decision maker’, ‘CODM’) as separate and distinct businesses.

	Gross rental income	Net rental income	Share of joint ventures' Adjusted profit/(loss)	Total Adjusted PBIT$^2$	Valuation surplus on investment property	Total directly owned assets	Capital expenditure$^3$
31 December 2025	£m	£m	£m	£m	£m	£m	£m
UK	460	420	(1)	417	23	11,685	98
CE	176	135	110	261	31	4,314	2,744
Other$^1$	1	1	(12)	(31)	(101)	—	—
Total	637	543	78	577	54	15,999	1,715

	Valuation surplus/ (deficit) on investment property	Gross rental income	Net rental income	Share of joint ventures' Adjusted profit/(loss)	Total Adjusted PBIT$^2$	Total directly owned assets	Capital expenditure$^3$
31 December 2024	£m	£m	£m	£m	£m	£m	£m
UK	437	399	—	395	170	11,463	28
CE	155	113	111	244	(50)	3,846	2,428
Other$^1$	1	—	(12)	(28)	(101)	—	—
Total	592	500	83	538	120	15,309	1,552

$^1$ ‘Other’ category includes the corporate centre, SELP holding companies and costs relating to the operational business that are not specifically allocated to the two property businesses.
$^2$ A reconciliation of total Adjusted PBIT to the IFRS profit before tax is provided in Note 2. Total revenues from external customers included within Adjusted PBIT: UK £475 million (2024: £448 million), CE £241 million (2024: £227 million).
$^3$ Capital expenditure includes additions and acquisitions of investment and trading properties but does not include tenant incentives and letting fees. The ‘Other’ category includes non-property related spend, primarily IT.
$^4$ Includes the bonds held by SELP Finance S.à.r.l, a Luxembourg entity. Revenues from the most significant countries within the Group were: UK £480 million (2024: £448 million), France £88 million (2024: £86 million), Italy £45 million (2024: £46 million), Germany £60 million (2024: £57 million), Poland £20 million (2024: £19 million) and the Netherlands £22 million (2024: £8 million).

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Notes to the Financial Statements continued
For the year ended 31 December 2025

4. Revenue

	2025	2024
£m	£m
Rental income from investment and trading properties	604	574
Rent averaging	31	14
Surrender premiums	2	4
Gross rental income$^1$	637	592
Joint venture fee income – management fees*	25	26
Joint venture fee income	25	26
Management and development fee income*	3	6
Service charge and other income*	2	51
Proceeds from sale of trading properties*	10	—
Total revenue	726	675

• The above income streams reflect revenue recognition under IFRS 15 ‘Revenue from Contracts with Customers’ and total £89 million (2024: £83 million).
  $^1$ Net rental income of £543 million (2024: £500 million) is calculated as gross rental income of £637 million (2024: £592 million) less total property operating expenses of £94 million (2024: £92 million) shown in Note 5.# 2 Other income includes income from solar energy sold to national grids or direct to occupiers.

5. Costs

	2025	2024
£m	£m
Vacant property costs	20	18
Letting, marketing, legal and professional fees	15	16
Loss allowance and impairment of receivables	1	2
Other expenses	11	11
Property management expenses	48	46
Property administrative expenses	2	57
Costs capitalised	3	(11)
Total property operating expenses	94	92
Service charge and other expense	4	52
Trading properties cost of sales	8	—
Total costs	154	144

1 See Note 17(vi) Credit risk management for further details on loss allowance and impairment of receivables.
2 Property administrative expenses predominantly relate to the employee staff costs of personnel directly involved in operating the property portfolio.
3 Costs capitalised primarily relate to internal employee staff costs directly involved in developing the property portfolio.
4 Other expenses includes expenses relating to the provision of solar energy.

6. Administrative Expenses

6(i) – Total administrative expenses

	2025	2024
£m	£m
Directors’ remuneration	5	6
Depreciation and amortisation	15	10
Other administrative expenses	53	60
Total administrative expenses	73	76

Other administrative expenses include the cost of services of the Group’s auditors, as described below.

6(ii) – Fees in relation to services provided by the Group’s auditors

	2025	2024
£m	£m
Audit services:
Parent company	1.1	1.2
Subsidiary undertakings	0.4	0.4
Total audit fees	1.5	1.6
Audit related assurance services	0.1	0.1
Audit and audit related assurance services	1.6	1.7
Other fees:
Other	0.1	0.2
Total other fees	0.1	0.2
Total fees in relation to audit and other services	1.7	1.9

As detailed further in the Audit Committee Report on page 103, PwC are the auditors of the SEGRO European Logistics Partnership S.à r.l. (SELP), which is a non-controlled joint venture of the Group, and were paid audit fees of £1.0 million in respect of the year ended 31 December 2025 (2024: £1.0 million). There were £0.1 million of non-audit fees paid in respect of SELP (2024: £0.1 million). The appointment of the SELP auditors and agreement of their fees is a matter for the SELP Board acting independently from SEGRO. Accordingly, the fees do not form part of the SEGRO Group audit fees detailed in the table above, nor are they included in the ratio of audit to non-audit fees detailed on page 103 of the Audit Committee Report.

148 | SEGRO plc Annual Report & Accounts 2025 Overview Strategic Report Governance Financial Statements Further Information Notes to the Financial Statements continued For the year ended 31 December 2025

6. Administrative Expenses continued

6(iii) – Staff costs

The table below presents staff costs of the Group (including Directors) which are recognised in both property operating expenses and administrative expenses in the Income Statement.

	2025	2024
£m	£m
Wages and salaries	56	55
Social security costs	8	8
Pension costs	4	3
Share scheme costs	5	7
Total	73	73
Average number of Group employees	454	461
– Direct property	286	294
– Indirect property and administration	168	167

Disclosures required by the Companies Act 2006 on Directors’ remuneration, including salaries, share options, pension contributions and pension entitlement and those specified by the UK Listing Rules of the Financial Conduct Authority, are included on pages 106 to 124 in the Remuneration Report and form part of these Financial Statements. The Group also has a number of defined contribution pension schemes for which £4 million has been recognised as an expense in the Group Income Statement (2024: £3 million).

7. Investments in Joint Ventures and Subsidiaries

7(i) – Profit from joint ventures after tax

The table below presents a summary Income Statement of the Group’s largest joint ventures, all of which are accounted for using the equity method as set out in Note 1. SEGRO European Logistics Partnership (SELP) is incorporated in Luxembourg and owns logistics property assets in Continental Europe. The Group holds 50 per cent of the share capital and voting rights in the material joint ventures. During 2025, SEGRO formed SEGRO Pure Premier Park Data Centre Limited, a 50:50 joint venture with Pure Data Centres Group (Pure DC). The joint venture has been created with the intent to develop and deliver a fully fitted data centre in Park Royal, West London. As part of the transaction, SEGRO has contributed land into the joint venture at market value. The joint venture is presented in the ‘Other’ column in the tables 7(i) and 7(ii).

	At 100% SELP	At 100% Other	2025	2024	At share SELP	At share Other
	£m	£m	£m	£m	£m	£m
Revenue 1	375	—	375	370	187	185
Gross rental income	283	—	283	274	142	137
Property operating expenses:
– underlying property operating expenses	(14)	(2)	(16)	(15)	(8)	(8)
– vacant property costs	(4)	—	(4)	(3)	(2)	(1)
– property management fees 2	(24)	—	(24)	(23)	(12)	(12)
Net rental income	241	(2)	239	233	120	116
Management fee income	4	—	4	4	2	2
Net service charge and other income	1	—	1	—	—	—
Administrative expenses	(5)	—	(5)	(5)	(3)	(2)
Finance costs (including adjustments)	(52)	—	(52)	(44)	(26)	(22)
Adjusted profit/(loss) before tax	189	(2)	187	188	93	94
Tax	(30)	—	(30)	(22)	(15)	(11)
Adjusted profit/(loss) after tax	159	(2)	157	166	78	83
Adjustments:
(Loss)/profit on sale of investment properties	(1)	—	(1)	5	(1)	2
Valuation surplus/(deficit) on investment properties	81	(7)	74	(60)	37	(30)
Solar panel depreciation	(1)	—	(1)	—	—	—
Tax in respect of adjustments	(10)	—	(10)	(5)	(5)	(2)
Total adjustments	69	(7)	62	(60)	31	(30)
Profit/(loss) after tax	228	(9)	219	106	109	53
Other comprehensive income	—	—	—	—	—	—
Total comprehensive income/ (expense) for the year	228	(9)	219	106	109	53

1 Total revenue at 100 per cent of £375 million (2024: £370 million) includes: Gross rental income of £283 million (2024: £274 million); service charge and other income of £88 million (2024: £92 million); and management fee income of £4 million (2024: £4 million). Service charge income of £87 million (2024: £92 million) is netted against the equal and opposite service charge expense in calculating Adjusted profit before tax.
2 Property management fees paid to SEGRO.

149 | SEGRO plc Annual Report & Accounts 2025 Overview Strategic Report Governance Financial Statements Further Information Notes to the Financial Statements continued For the year ended 31 December 2025

7. Investments in Joint Ventures and Subsidiaries continued

7(i) – Profit from joint ventures after tax continued

SELP is a SPPICAV in France, and does not pay tax on its French property income or gains on property sales, provided that at least 85 per cent of the French subsidiaries’ property income and 50 per cent of the French subsidiaries’ gains are distributed to their immediate shareholder (at which point they will be subject to tax). In addition, SELP has to meet certain conditions such as ensuring the property rental business of each French subsidiary represents more than 60 per cent of its assets. Any potential or proposed changes to the SPPICAV legislation are monitored.

7(ii) – Summarised Balance Sheet information in respect of the Group’s joint ventures

	At 100% SELP	At 100% Other	2025	2024	At share SELP	At share Other
	£m	£m	£m	£m	£m	£m
Investment properties	5,888	196	6,084	5,052	3,042	2,526
Other interests in property	1	—	1	—	1	—
Property, plant and equipment	25	—	25	19	13	10
Other receivables	4	—	4	3	2	1
Total non-current assets	5,918	196	6,114	5,074	3,058	2,537
Trade and other receivables	65	2	67	52	34	26
Cash and cash equivalents	61	2	63	346	32	173
Total current assets	126	4	130	398	66	199
Total assets	6,044	200	6,244	5,472	3,124	2,736
Borrowings 1	(1,787)	—	(1,787)	(1,444)	(894)	(722)
Deferred tax	(375)	—	(375)	(359)	(188)	(179)
Other liabilities	(10)	—	(10)	—	(5)	—
Total non-current liabilities	(2,172)	—	(2,172)	(1,803)	(1,087)	(901)
Borrowings 1	(434)	—	(434)	(413)	(217)	(207)
Other liabilities	(206)	(3)	(209)	(152)	(105)	(76)
Total current liabilities	(640)	(3)	(643)	(565)	(322)	(283)
Total liabilities	(2,812)	(3)	(2,815)	(2,368)	(1,409)	(1,184)
Net assets	3,232	197	3,429	3,104	1,715	1,552

1 The external borrowings of the joint ventures are non-recourse to the Group. At 31 December 2025, the fair value of £2,221 million (2024: £1,857 million) of borrowings was £2,205 million (2024: £1,818 million). This results in a fair value adjustment increase in EPRA NDV of £16 million (2024: £39 million), at share £8 million (2024: £20 million), see Table 5 of the Supplementary Notes.

Fees

SEGRO provides certain services, including venture advisory, development management and asset management, to the SELP joint venture and receives fees for doing so. Performance fees may also be payable from SELP to SEGRO based on its IRR subject to certain hurdle rates over the performance period. The current performance period commenced in October 2023 and is over a circa three-year and circa six-year period. The first performance period and potential payment due ends in June 2026, but 50 per cent of any payment is subject to clawback based on performance over the six-year period to June 2029. If the IRR increases by June 2029 relative to June 2026, additional fees might be triggered. Based on the current estimates of the IRR calculation from October 2023 to 31 December 2025, no performance fee is due to SEGRO in June 2026. Therefore no fee has been recognised in the year as the recognition criteria under IFRS 15 has not been met. The performance fee is not considered to be a significant area of estimation uncertainty at this point.

7(iii) – Investments by the Group

	2025	2024
£m	£m
Cost or valuation at 1 January	1,552	1,636
Exchange movement	80	(81)
Net investments 1	37	(27)
Dividends received 2	(63)	(29)
Share of profit after tax	109	53
Cost or valuation at 31 December	1,715	1,552

1 Net investments represent the net movement of capital injections, loans and divestments with joint ventures during the year.# 2 Dividends received from SELP. 7(iv) – Investments by the Company

	2025 £m	2024 £m
Cost or valuation of subsidiaries at 1 January	11,896	11,413
Exchange movement	29	(15)
Additions	1	61
Loan movement	1	412
Decrease/(increase) in provision for investments in and loans to subsidiaries	2	5
Cost or valuation at 31 December	12,403	11,896

1 During 2025, £61 million (2024: £nil) of non-current loans were recapitalised and converted into equity. This is reflected within additions and a reduction in loan movement in the table above.

2 Total decrease in provision for impairment of £5 million (2024: £80 million increase) consists of £nil (2024: £nil) for investments and £5 million (2024: £80 million increase) for loans to subsidiaries. Included in cost or valuation of subsidiaries at 31 December 2025 are investments of £6,462 million (2024: £6,401 million) and non-current loans of £5,941 million (2024: £5,495 million). Loans held with subsidiaries are classified as non-current as there is no intention from the Company to require the loan to be repaid, in whole or in part, within 12 months. Subsidiary entities are detailed in Note 26.

150 | SEGRO plc Annual Report & Accounts 2025 Overview Strategic Report Governance Financial Statements Further Information Notes to the Financial Statements continued For the year ended 31 December 2025

7. Investments in Joint Ventures and Subsidiaries continued

7(iv) – Investments by the Company continued

In measuring expected credit losses (ECLs) of the intercompany loans under IFRS 9 the ability of each subsidiary to repay the loan at the reporting date if demanded by the Company is assessed. For the purpose of the impairment review the manner for recovering the loan is assumed to be through the sale of the investment properties held by the subsidiary. Investment properties are held at fair value at each reporting date and the assumptions and inputs used in determining their fair value are shown in Note 25. Therefore, the net asset value of the subsidiary is considered to be a reasonable approximation of the available assets that could be realised to recover the loan balance and the requirement to recognise expected credit losses. The requirement for impairment of investments under IAS 36 follows the same assessment and the net asset value of the subsidiary is considered to be a reasonable approximation of the recoverable amount. The movement in the provision for investments and loans held with subsidiaries during the current and prior period is predominantly due to the movement in the fair value of specific properties held by the subsidiaries. The loss allowances for loans held with subsidiaries as at 31 December reconcile to the opening loss allowances as follows:

	2025 £m	2024 £m
Opening loss allowance at 1 January	310	230
Increase in loan loss allowance recognised in profit or loss during the year	69	105
Unused amount reversed in profit or loss during the year	(74)	(25)
Closing loss allowance at 31 December	305	310

8. Property Gains and Losses

8(i) – Realised and Unrealised Property Gains

	2025 £m	2024 £m
Profit on sale of investment properties	1	75
Valuation surplus on investment properties	1	54
Total realised and unrealised property gain	55	195

1 Includes £55 million valuation surplus on investment properties (2024: £121 million) and £1 million valuation loss on head lease ROU asset (2024: £1 million). The above table does not include realised gains on sale of trading properties of £2 million (2024: £nil) as detailed further in Note 2.

8(ii) – Total Property Gains (including joint ventures at share)

	Group	Joint ventures	Total	Group	Joint ventures	Total
	2025 £m	£m	£m	2024 £m	£m	£m
Valuation surplus/(deficit) on investment properties	54	37	91	120	(30)	90
Total valuation surplus/(deficit) on investment and trading properties	54	37	91	120	(30)	90
Profit/(loss) on sale of investment properties	1	(1)	—	75	2	77
Profit on sale of trading properties	2	—	2	—	—	—
Total properties gain/(loss) on investment and trading properties	57	36	93	195	(28)	167

151 | SEGRO plc Annual Report & Accounts 2025 Overview Strategic Report Governance Financial Statements Further Information Notes to the Financial Statements continued For the year ended 31 December 2025

9. Net Finance Costs

Finance income	2025 £m	2024 £m
Interest received on bank deposits and related derivatives	25	56
Fair value gain on interest rate swaps and other derivatives	1	35
Exchange differences	—	1
Total finance income	26	92

Finance costs	2025 £m	2024 £m
Interest on overdrafts, loans and related derivatives	(144)	(179)
Cost of early close-out of debt	—	(2)
Amortisation of issue costs	(7)	(10)
Interest on lease liabilities	(3)	(3)
Total borrowing costs	(154)	(194)
Less amounts capitalised on the development of properties	63	67
Net borrowing costs	(91)	(127)
Fair value loss on interest rate swaps and other derivatives	(36)	(32)
Exchange differences	(2)	—
Total finance costs	(129)	(159)
Net finance costs	(103)	(67)

Net finance costs (including adjustments) in Adjusted profit (Note 2) are £68 million (2024: £68 million). This excludes net fair value gains and losses on interest rate swaps and other derivatives of £35 million loss (2024: £3 million gain) and the cost of early close-out of debt of £nil (2024: £2 million). The interest capitalisation rates for 2025 ranged from 2.4 per cent to 6.2 per cent (2024: 2.6 per cent to 6.7 per cent). Interest is capitalised gross of tax relief. Further analysis of exchange differences is given in Note 17 within the forward foreign exchange and currency swap contracts section.

10. Tax

10(i) – Tax on profit

	2025 £m	2024 £m
Tax:
On Adjusted profit	(14)	(12)
In respect of adjustments	5	(30)
Total tax charge	(9)	(42)
Current tax
United Kingdom
Current tax credit	7	1
Total UK current tax credit	7	1
Overseas
Current tax charge	(6)	(33)
Total overseas current tax charge	(6)	(33)
Total current tax credit/(charge)	1	(32)
Deferred tax
Origination and reversal of temporary differences	(5)	(14)
Released in respect of property disposals in the year	(2)	14
On valuation movements	2	(9)
Total deferred tax in respect of investment properties	(5)	(9)
Other deferred tax	(5)	(1)
Total deferred tax charge	(10)	(10)
Total tax charge on profit on ordinary activities	(9)	(42)

UK legislation implementing the OECD Pillar Two global minimum tax rules has been enacted. The Group operates as a qualifying UK REIT and is treated as an Excluded Entity under these rules. Accordingly, the Group does not expect the Pillar Two rules to have a material impact on its Financial Statements.

152 | SEGRO plc Annual Report & Accounts 2025 Overview Strategic Report Governance Financial Statements Further Information Notes to the Financial Statements continued For the year ended 31 December 2025

10. Tax continued

10(ii) – Factors affecting tax charge for the year

The tax charge is lower than (2024: tax charge is lower than) the standard rate of UK corporation tax. The differences are:

	2025 £m	2024 £m
Profit on ordinary activities before tax	560	636
Exclude valuation surplus in respect of UK properties not deductible	(23)	(170)
	537	466
Multiplied by standard rate of UK corporation tax of 25 per cent (2024: 25 per cent)	(134)	(117)
Effects of:
REIT and SIIC exemption on income and gains	68	90
Non deductible items	(1)	(5)
Joint venture tax adjustment	1	28
Tax rate differences on international earnings	6	(1)
Adjustment in respect of prior years	2	—
Adjustment in respect of assets not recognised	2	(21)
Deferred tax arising from German rate changes	12	—
Other	8	—
Total tax charge on profit on ordinary activities	(9)	(42)

1 The joint venture tax adjustment is required because the profit on ordinary activities before tax includes share of profit from joint ventures after tax, whereas the total tax balance excludes joint ventures.

10(iii) – REIT and SIIC regimes and other tax judgements

SEGRO is a Real Estate Investment Trust (REIT) and does not pay tax on its UK property income or gains on property sales, provided that at least 90 per cent of the Group’s UK property income is distributed as a dividend to shareholders, which becomes taxable in their hands. In addition, the Group has to meet certain conditions such as ensuring its worldwide property rental business represents more than 75 per cent of total profits and assets. Any potential or proposed changes to the REIT legislation are monitored and discussed with HMRC. It is management’s intention that the Group will continue as a REIT for the foreseeable future. SEGRO is also a SIIC in France and does not pay corporation tax on its French property income or gains on property sales within the SIIC, provided that at least 95 per cent of the relevant Group French subsidiaries’ property income is distributed to their immediate shareholder. In addition, the Group has to meet certain conditions such as ensuring the property rental business of each French subsidiary represents more than 80 per cent of its assets. Any potential or proposed changes to the SIIC legislation are monitored. Whilst not all French property is within the SIIC regime, it is management’s intention that the Group will continue as a SIIC for the foreseeable future. In 2021 a formal tax assessment in relation to the applicability of a 25 per cent withholding tax on distributions from the SIIC was received from the French tax authorities and a tax charge was recognised. A legal conclusion has not been reached and communication with the French tax authorities remains ongoing. As a result, a tax charge for the 25 per cent withholding tax on results generated from the French business has been recognised, this includes withholding tax on unremitted earnings. As noted below, until a legal conclusion has been reached, it is possible further tax charges may arise in relation to this matter.The Group operates in a number of jurisdictions and is subject to periodic challenges by local tax authorities on a range of tax matters during the normal course of business. The tax impact can be uncertain until a conclusion is reached with the relevant tax authority or through a legal process. The Group uses in-house expertise when assessing uncertain tax positions and seeks the advice of external professional advisers where appropriate. The Group believes that its provisions for tax liabilities and associated penalties are adequate for all open tax years based on its assessment of many factors, including tax laws and prior experience. The significant assessment relating to the recognition of withholding tax in France is discussed above.

10(iv) – Deferred tax liabilities

Movement in deferred tax was as follows:

	Balance 1 January 2025 £m	Exchange movement £m	Recognised in income £m	Balance 31 December 2025 £m
Valuation surpluses and deficits on properties/ accelerated tax allowances	178	9	5	192
Others	14	(1)	5	18
Total deferred tax liabilities	192	8	10	210

	Balance 1 January 2024 £m	Exchange movement £m	Recognised in income £m	Balance 31 December 2024 £m
Valuation surpluses and deficits on properties/ accelerated tax allowances	178	(9)	9	178
Others	14	(1)	1	14
Total deferred tax liabilities	192	(10)	10	192

The Group has recognised revenue tax losses of £69 million (2024: £71 million) available for offset against future profits (reflected in ‘Valuation surpluses and deficits on properties/accelerated tax allowances' in the table above). Further unrecognised tax losses of £863 million also exist at 31 December 2025 (2024: £755 million) of which £1 million (2024: £1 million) expires within nine years. The majority of the unrecognised tax loss balance relates to historic capital losses that arose on property disposals and on losses generated from debt close-out costs. The Directors do not consider it probable that there will be sufficient future taxable profit for the relevant losses to be utilised and so no deferred tax asset has been recognised for unused tax losses.

153 | SEGRO plc Annual Report & Accounts 2025

Overview Strategic Report Governance Financial Statements Further Information

Notes to the Financial Statements continued

For the year ended 31 December 2025

10. Tax continued

10(iv) – Deferred tax liabilities continued

For the purposes of measuring deferred tax liabilities or deferred tax assets arising from investment properties that are measured using the fair value model, the Directors have reviewed the Group's investment property portfolios and concluded that the Group's investment properties are not held under a business model whose objective is to consume substantially all of the economic benefits embodied in the investment properties over time, rather than through sale. Therefore, in determining the Group's deferred taxation on investment properties, the Directors have determined that the presumption that the carrying amounts of investment properties measured using the fair value model are recovered entirely through sale is not rebutted. As a result, the Group has recognised deferred taxes on changes in fair value of investment properties for all jurisdictions, with the exception of the UK, where the Group is not subject to any corporate income taxes on the fair value changes of the investment properties on disposal due to its REIT status.

10(v) – Factors that may affect future tax charges

Other than France no deferred tax is recognised on the unremitted earnings of international subsidiaries and joint ventures. In the event of their remittance to the UK, no net UK tax is expected to be payable. As detailed in Note 10(iii) a tax charge for probable withholding tax due on results generated from the French business has been recognised, this includes withholding tax on unremitted earnings.

11. Dividends

	2025 £m	2024 £m
Ordinary dividends paid
Interim dividend for 2025 @ 9.7 pence per share	131	—
Final dividend for 2024 @ 20.2 pence per share	274	—
Interim dividend for 2024 @ 9.1 pence per share	—	123
Final dividend for 2023 @ 19.1 pence per share	—	256
Total dividends	405	379
Dividends in the Statement of Changes in Equity	405	379
Dividends settled as shares	—	(115)
Timing difference relating to payment on withholding tax	—	13
Dividends disclosed in Cash Flow Statement	405	277

The Board recommends a final dividend for 2025 of 21.4 pence, which is estimated to result in a distribution of up to £290 million. The total dividend paid and proposed per share in respect of the year ended 31 December 2025 is 31.1 pence (2024: 29.3 pence).

12. Earnings and Net Assets Per Share

The earnings per share calculations use the weighted average number of shares in issue during the year and the net assets per share calculations use the number of shares in issue at year end. Earnings per share calculations exclude 0.8 million shares (2024: 0.5 million) being the average number of shares held on trust for employee share schemes and net assets per share calculations exclude 0.9 million shares (2024: 0.7 million) being the actual number of shares held on trust for employee share schemes at year end.

12(i) – Earnings per ordinary share (EPS)

	2025			2024
	Earnings £m	Shares million	Pence per share	Earnings £m	Shares million	Pence per share
Basic EPS	551	1,352.5	40.7	594	1,328.7	44.7
Dilution adjustments: Share schemes	—	2.8	—	—	3.3	(0.1)
Diluted EPS	551	1,355.3	40.7	594	1,332.0	44.6
Basic EPS	551	1,352.5	40.7	594	1,328.7	44.7
Adjustments to profit before tax ¹	(51)		(3.7)	(166)		(12.5)
Tax in respect of Adjustments	(5)		(0.4)	30		2.3
Adjusted Basic EPS	495	1,352.5	36.6	458	1,328.7	34.5
Adjusted Diluted EPS	495	1,355.3	36.5	458	1,332.0	34.4

¹ Details of adjustments are included in Note 2.

154 | SEGRO plc Annual Report & Accounts 2025

Overview Strategic Report Governance Financial Statements Further Information

Notes to the Financial Statements continued

For the year ended 31 December 2025

12. Earnings and Net Assets Per Share continued

12(ii) – Net assets per share (NAV)

The EPRA Net Tangible Assets (NTA) metric is considered to be most consistent with the nature of SEGRO’s business as a UK REIT providing long-term progressive and sustainable returns. EPRA NTA acts as the primary measure of net asset value and is also referred to as Adjusted Net Asset Value (or Adjusted NAV). A reconciliation from IFRS NAV to Adjusted NAV is set out in the table below along with the net asset per share metrics. Table 5 of the Supplementary Notes provides a reconciliation from IFRS NAV for each of the three EPRA net asset value metrics.

	2025			2024
	Equity shareholders' funds £m	Shares million	Pence per share	Equity shareholders' funds £m	Shares million	Pence per share
Basic NAV	12,273	1,352.6	907	12,049	1,352.2	891
Dilution adjustments: Share schemes	—	2.4	(1)	—	3.1	(2)
Diluted NAV	12,273	1,355.0	906	12,049	1,355.3	889
Fair value adjustment in respect of interest rate derivatives – Group	123		9	95		7
Fair value adjustment in respect of trading properties – Group	1		—	2		—
Deferred tax in respect of depreciation and valuation surpluses – Group ¹	96		7	90		7
Deferred tax in respect of depreciation and valuation surpluses – Joint ventures ¹	88		6	88		7
Intangible assets	(44)		(3)	(37)		(3)
Adjusted NAV	12,537	1,355.0	925	12,287	1,355.3	907

¹ 50 per cent of deferred tax in respect of depreciation and valuation surpluses has been excluded in calculating Adjusted NAV in line with option 3 of EPRA Best Practices Recommendations Guidelines.

13. Investment properties

	Completed £m	Development £m	Total £m
At 1 January 2025	12,827	2,224	15,051
Exchange movement	159	42	201
Property acquisitions	—	24	24
Additions to existing investment properties ²	429	47	476
Disposals	(91)	(19)	(110)
Transfers on completion of development and completed properties taken back for redevelopment	437	(437)	—
Revaluation surplus/(deficit) during the year	180	(125)	55
At 31 December 2025	13,559	2,138	15,697
Add tenant lease incentives and letting fees	221	—	221
Investment properties excluding head lease ROU assets at 31 December 2025	13,780	2,138	15,918
Add head lease liabilities (ROU assets) ¹	80	—	80
Total investment properties at 31 December 2025	13,860	2,138	15,998

	Completed £m	Development £m	Total £m
At 1 January 2024	12,285	2,383	14,668
Exchange movement	(148)	(41)	(189)
Property acquisitions	431	21	452
Additions to existing investment properties ²	496	45	541
Disposals	(474)	(68)	(542)
Transfers on completion of development and completed properties taken back for redevelopment	497	(497)	—
Revaluation surplus/(deficit) during the year	191	(70)	121
At 31 December 2024	12,827	2,224	15,051
Add tenant lease incentives and letting fees	185	—	185
Investment properties excluding head lease ROU assets at 31 December 2024	13,012	2,224	15,236
Add head lease liabilities (ROU assets) ¹	67	—	67
Total investment properties at 31 December 2024	13,079	2,224	15,303

¹ At 31 December 2025 investment properties included £80 million (2024: £67 million) for the head lease liabilities recognised under IFRS 16.
² Part of the capital expenditure incurred is in response to climate change including the reduction of the carbon footprint of the Group’s existing investment properties and developments. The reduction of the carbon footprint within the Group’s property portfolio is discussed in more detail on pages 32 and 33.

155 | SEGRO plc Annual Report & Accounts 2025

Overview Strategic Report Governance Financial Statements Further Information

Notes to the Financial Statements continued

For the year ended 31 December 2025

13. Investment properties continued

Investment properties are stated at fair value as at 31 December 2025 based on external valuations performed by professionally qualified, independent valuers. The Group’s wholly-owned and joint venture property portfolio is valued on a half-yearly basis, which was carried out by CBRE Ltd in 2025.The valuations conform to International Valuation Standards and were arrived at by reference to market evidence of the transaction prices paid for similar properties. In estimating the fair value of the properties, the valuers consider the highest and best use of the properties. There has been no change to the valuation technique during the year. CBRE Ltd also undertakes some professional and agency work on behalf of the Group. This is carried out by departments separate from the Valuation team in CBRE and overall the total fees earned from the Group are below 5 per cent of CBRE’s total income. This work does not therefore lead to a conflict of interest for the properties being valued by CBRE at the period end. Completed properties include buildings that are occupied or are available for occupation. Development properties include land available for development (land bank), land under development, construction in progress and covered land. The carrying value of covered land held within development properties as at 31 December 2025 is £572 million (2024: £619 million). At 31 December 2025 investment properties included £221 million tenant lease incentives, letting fees and rent guarantees (2024: £185 million). The carrying value of investment properties situated on land held under leaseholds is £171 million (excluding head lease ROU assets) (2024: £170 million). Further details on property valuation techniques, sustainability and climate change considerations and related quantitative information are set out in Note 25.

14. Trade and Other Receivables

	Group		Company
	2025	2024	2025	2024
	£m	£m	£m	£m
Current
Trade receivables	170	65	—	—
Other receivables	297	88	20	34
Prepayments	11	19	—	—
Amounts due from related parties	7	6	—	—
Total current trade and other receivables	185	178	20	34
Non-current
Other receivables	3	2	—	—
Total non-current other receivables	3	2	—	—

1 Note 17(vi) details the Group’s credit risk management and loss allowances held for trade receivables.
2 Group other current receivables includes VAT recoverable and capital receivables.

15. Trade and Other Payables

	Group		Company
	2025	2024	2025	2024
	£m	£m	£m	£m
Due within one year
Trade payables	57	—	—	—
Other payables	1128	130	2	1
Non-capital accruals	2112	113	50	55
Capital creditors and capital accruals	135	136	—	—
Rent in advance	131	115	—	—
Lease liabilities	1	1	—	—
Total trade and other payables due within one year	512	502	52	56
Due after one year
Other payables	—	1	—	—
Lease liabilities	82	69	—	—
Loans due to subsidiaries	—	—	2,159	2,124
Total other payables due after one year	82	70	2,159	2,124

1 Group other current payables includes VAT payable and tenant deposits.
2 Includes accrued interest on external borrowings for the Group of £38 million (2024: £36 million).

156 | SEGRO plc Annual Report & Accounts 2025 Overview Strategic Report Governance Financial Statements Further Information Notes to the Financial Statements continued For the year ended 31 December 2025

16. Net Borrowings

16(i) – Net borrowings by type

	Group		Company
	2025	2024	2025	2024
	£m	£m	£m	£m
Unsecured borrowings:
Bonds
1.250% bonds 2026 €650m	565	535	—	—
2.375% bonds 2029 £350m	349	349	349	349
1.875% bonds 2030 €500m	431	410	—	—
0.50% bonds 2031 €500m	432	409	—	—
3.50% bonds 2032 €500m 1	431	408	431	408
5.75% bonds 2035 £200m	199	199	199	199
2.875% bonds 2037 £400m	397	397	397	397
5.125% bonds 2041 £350m	344	344	344	344
	3,148	3,051	1,720	1,697
Private placement notes
1.77% notes 2027 €400m	348	330	348	330
1.82% notes 2028 €100m	87	83	87	83
2.00% notes 2029 €150m	130	124	130	124
2.27% notes 2032 €100m	87	82	87	82
1.35% notes 2032 €150m	130	124	130	124
2.37% notes 2033 €200m	174	165	174	165
1.45% notes 2035 €50m	43	41	43	41
3.87% notes 2037 €50m	43	40	43	40
1.83% notes 2040 €190m (Series C)	164	156	164	156
1.83% notes 2040 €60m (Series D)	52	49	52	49
4.14% notes 2042 €175m	151	145	151	145
	1,409	1,339	1,409	1,339
Bank loans
Revolving credit facilities	260	72	260	72
Term loans	134	145	134	145
	394	217	394	217
Total borrowings	4,951	4,607	3,523	3,253
Cash and cash equivalents	(111)	(363)	(10)	(266)
Net borrowings	4,840	4,244	3,513	2,987

1 These euro denominated bonds and private placement notes are designated in net investment hedge relationships with euro denominated investments in subsidiaries. Total carrying value before capitalised finance costs £1,848 million (2024: £1,747 million). See Note 17(iv) for further details.
2 All borrowings are unsecured.

Maturity profile of borrowings

	Group		Company
Maturity profile of borrowings	2025	2024	2025	2024
£m	£m	£m	£m
In one year or less	565	—	—	—
In more than one year but less than two	482	535	482	—
In more than two years but less than five	1,257	1,103	826	1,103
In more than five years but less than ten	1,496	1,598	1,064	779
In more than ten years	1,151	1,371	1,151	1,371
In more than one year	4,386	4,607	3,523	3,253
Total borrowings	4,951	4,607	3,523	3,253
Cash and cash equivalents	(111)	(363)	(10)	(266)
Net borrowings	4,840	4,244	3,513	2,987

1 Group cash and cash equivalents also include tenant deposits held in separate designated bank accounts of £74 million (2024: £71 million), the use of the deposits is subject to restrictions as set out in the tenant lease agreement and therefore not available for general use by the Group. There are no early settlement or call options (greater than three months prior to maturity) on any of the borrowings. Financial covenants relating to £4,951 million of borrowings as at 31 December 2025 include maximum limits to the Group’s gearing ratio, minimum limits to permitted interest cover, minimum limits to the Group’s unencumbered asset ratio and maximum limits to subsidiary or secured borrowings. Depending on the instrument, financial covenants are tested for compliance either annually or semi-annually. The gearing ratio of the Group as at 31 December 2025 as defined within the principal debt funding arrangements was 39 per cent and significantly lower than the Group's tightest financial gearing covenant within these debt facilities of 160 per cent. The interest cover covenant requires net interest before capitalisation be covered at least 1.25 times by net property rental income and the ratio for 2025 was 4.2 times. Financial covenants are discussed in more detail in the ‘Gearing and financial covenants' section in the Financial review on page 40 and there are no indications that the Group would have difficulty complying with the covenants.

157 | SEGRO plc Annual Report & Accounts 2025 Overview Strategic Report Governance Financial Statements Further Information Notes to the Financial Statements continued For the year ended 31 December 2025

16. Net Borrowings continued

16(i) – Net borrowings by type continued

Bank loans and overdrafts include capitalised finance costs on committed facilities. In April 2025, SEGRO signed a new €1.6 billion revolving credit facility with its syndicate of eight relationship banks. The senior unsecured facility has an initial five-year term and may be further extended to a maximum of seven years, subject to lender approval. The new facility replaced the previous €1.0 billion and €0.6 billion syndicated revolving credit facilities, which were due to mature in 2027. In September 2025, SEGRO signed a new €360 million term loan facility with relationship and non-relationship banks. The facility is undrawn at year end, has an availability for drawing until March 2026, and a final maturity date in September 2030. The debt refinancing is discussed in more detail in the Financial review on page 40.

Maturity profile of undrawn borrowing facilities

| Group | 2025 | 2024 |
| :--- | £m | £m |
| In one year or less | 9 | 140 |
| In more than two years but less than five | 1,610 | 1,413 |
| Total available undrawn borrowing facilities | 1,619 | 1,553 |

16(ii) – Net borrowings by interest rates

The weighted average interest rate profile of Group net borrowings after derivative instruments is as follows:

	2025		Fixed	Fixed	Capped	Capped	Floored	Floored	Total
	Variable	Interest rate	debt	debt	strike	cash	debt	cash	£m
	debt/	period		%	£m	%	£m	%
	cash		%	years
Borrowings
Weighted average after derivative instruments
Sterling	3.83	9.9	1,390	—	—	—	(429)	961
Euros	1.96	4.6	2,615	1.91	982	—	—	393	3,990
Total borrowings	2.61	6.4	4,005	1.91	982	—	—	(36)	4,951
Cash and cash equivalents					(95)				(111)
Sterling
Euros					(16)
Total cash and cash equivalents									(111)
Net borrowings			4,005	982	—	—	(147)	4,840

	2024		Fixed	Fixed	Capped	Capped	Floored	Floored	Total
	Variable	Interest rate	debt	debt	strike	cash	debt	cash	£m
	debt/	period		%	£m	%	£m	%
	cash		%	years
Borrowings
Weighted average after derivative instruments
Sterling	3.83	10.9	1,388	—	—	—	(470)	918
Euros	1.98	5.5	2,523	2.20	1,095	—	—	71	3,689
Total borrowings	2.64	7.4	3,911	2.20	1,095	—	—	(399)	4,607
Cash and cash equivalents					(348)				(363)
Sterling	4.69
Euros					(15)
Total cash and cash equivalents									(363)
Net borrowings			3,911	1,095	—	—	(348)	(414)	4,244

158 | SEGRO plc Annual Report & Accounts 2025 Overview Strategic Report Governance Financial Statements Further Information Notes to the Financial Statements continued For the year ended 31 December 2025

17.# 17. Financial Instruments and Fair Values

17(i) – Derivative instruments

The Group and Company hold the following derivative instruments at fair value:

Derivative assets

	Group		Company
2025	2024	2025	2024
£m	£m	£m	£m
Current
Forward foreign exchange and currency swap contracts – non-hedge	2	—	2	—
Interest rate cap contracts – non-hedge	—	1	—	1
Interest rate floor contracts – non-hedge	—	2	—	2
Total current derivative assets	2	3	2	3
Non-current
Forward foreign exchange and currency swap contracts – non-hedge	6	27	6	27
Interest rate cap contracts – non-hedge	19	21	19	21
Total non-current derivative assets	25	48	25	48

Derivative liabilities

	Group		Company
2025	2024	2025	2024
£m	£m	£m	£m
Current
Interest rate swap contracts – non-hedge	60	44	60	44
Total current derivative liabilities	60	44	60	44
Non-current
Interest rates swap contracts – non-hedge	82	75	82	75
Total non-current derivative liabilities	82	75	82	75

17(ii) – Carrying amount and fair values of financial assets and liabilities

The Group holds the following financial instruments:

Group

	2025	2024	Notes	£m	£m
Financial assets
Financial assets at amortised cost
Lease incentives			1	13	192
Trade receivables			14	70	65
Other current receivables			2	14	30
Non-current receivables			14	3	2
Cash and cash equivalents			16	111	363
Financial assets at fair value through profit or loss (FVPL)
Other investments			16	12	—
Derivative financial instruments
Non-hedge at FVPL			17	27	51
				449	687
Financial liabilities
Liabilities at amortised cost
Trade and other payables			2	15	463
Borrowings			16	4,951	4,607
Derivative financial instruments
Non-hedge at FVPL			17	142	119
				5,556	5,182

1 Represents the carrying value of tenant lease incentives held in Investment properties at the year end. This amount is included within the ‘tenant lease incentives and letting fees’ balance in Note 13.
2 Excludes non-financial assets of £85 million (2024: £77 million) included within total Group other receivables per Note 14 and non-financial liabilities of £131 million (2024: £116 million) included within total trade and other payables per Note 15.

The carrying values of these financial assets and liabilities approximate their fair value, with the exception of unsecured bonds and unsecured US private placement notes classified as borrowings. At 31 December 2025, the fair value of £3,148 million of unsecured bonds issued was £2,957 million (2024: £3,051 million compared with £2,822 million fair value). At 31 December 2025, the fair value of £1,409 million of unsecured US private placement notes was £1,292 million (2024: £1,339 million compared with £1,285 million fair value). This results in a fair value adjustment increase in EPRA NDV of £308 million (2024: £283 million), see Table 5 of the Supplementary Notes. The fair value of unsecured bonds is estimated using quoted prices (level 1) and the fair value of US private placement notes is estimated by discounting contractual future cash flows (level 2).

159 | SEGRO plc Annual Report & Accounts 2025 Overview Strategic Report Governance Financial Statements Further Information Notes to the Financial Statements continued
For the year ended 31 December 2025

17. Financial Instruments and Fair Values continued

17(ii) – Carrying amount and fair values of financial assets and liabilities continued

The fair values of financial assets and financial liabilities are determined as follows:
* Forward foreign exchange contracts are measured using quoted exchange rates and yield curves derived from quoted interest rates with maturities matching the contracts (level 2).
* Interest rate swaps, currency swap contracts and interest rate options are measured at the present value of future cash flows estimated and discounted based on the applicable yield curves derived from quoted interest rates and the appropriate exchange rate at the Balance Sheet date (level 2).
* The fair value of other investments classified as fair value through profit or loss that is not traded on active liquid markets is determined by management (level 3).

Fair value measurements recognised in the Balance Sheet

The Group’s financial instruments that are measured subsequent to initial recognition at fair value are unlisted investments, forward exchange and currency swap contracts, interest rate swaps and interest rate options as detailed above. As defined by IFRS 13, unlisted investments are classified as level 3 fair value measurements, where inputs are not based on observable market data. All other financial instruments are classified as level 2 fair value measurements, being those derived from inputs other than quoted prices (included within level 1) that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices). There were no transfers between categories in the current or prior year.

17(iii) – Capital risk management

The Group manages its capital to ensure that entities in the Group will be able to continue as a going concern and as such it aims to maintain a prudent mix between debt and equity financing. Our intention for the foreseeable future is to maintain our mid-cycle LTV (including joint ventures at share) at around 30 per cent. This provides the flexibility to take advantage of investment opportunities arising and ensures significant headroom compared to our tightest gearing covenants should property values decline. The current capital structure of the Group consists of a mix of equity and debt. Equity comprises issued capital, reserves and retained earnings as disclosed in the Statement of Changes in Equity and Notes 18 to 19. Debt primarily comprises long-term debt issues, term loans and drawings against short-term committed revolving credit facilities from banks as disclosed in Note 16. The Group is not subject to externally imposed capital requirements.

17(iv) – Foreign currency risk management

The Group’s transactional foreign exchange exposures mainly arise as a result of treasury financing and hedging activities. These hedging activities are carried out in SEGRO plc on behalf of the Group and the resulting transactional exposures to euro are not routinely hedged. The Group does not have any significant transactional foreign currency exposures resulting from cross-border flows in the operating business. The Group does however have operations in Continental Europe, which transact business denominated mostly in euros, hence there is currency exposure caused by translating the local trading performance and local net assets into sterling for each financial period and at each Balance Sheet date. The Group’s approach to managing Balance Sheet translation exposure is described in the Foreign Currency Translation Risk section in the Financial review on page 41. The Group’s Balance Sheet translation exposure to euros (including the impact of derivative financial instruments) is summarised below:

	2025	2024
	Total £m	Total £m
Group
Gross currency assets	6,114	5,535
Gross currency liabilities	(4,358)	(4,170)
Net exposure	1,756	1,365

2025 Group gross currency liabilities include €2,226 million (£1,936 million) designated as net investment hedges (2024: €2,226 million (£1,831 million)). The remaining gross currency liabilities of the Group shown in the table above that are not designated as net investment hedges are either held directly in a euro functional currency entity or passed down to such an entity from a sterling functional currency company through intercompany funding arrangements.

Foreign currency sensitivity analysis

The Group’s main currency exposure is the euro. The sensitivity of the net assets of the Group to a 10 per cent appreciation in the value of sterling against the euro would decrease net assets by £160 million (2024: £124 million). The sensitivity of the Group to a 10 per cent depreciation in the value of sterling against the euro would increase net assets by £195 million (2024: £152 million). The 10 per cent sensitivity rate is used when reporting foreign currency risk internally to management and represents management’s assessment of the reasonably possible change in foreign exchange rates. The sensitivity analysis adjusts the translation of net assets (after taking account of external loans, currency swap contracts and forward foreign exchange contracts) at the period end for a 10 per cent change in the value of sterling against the euro. A 10 per cent appreciation in the value of sterling against the euro would decrease the Group’s profit for the year ended 31 December 2025 by £22 million (2024: decrease of £9 million). A 10 per cent depreciation in the value of sterling against the euro would increase the Group’s profit for the year ended 31 December 2025 by £26 million (2024: increase of £10 million).

160 | SEGRO plc Annual Report & Accounts 2025 Overview Strategic Report Governance Financial Statements Further Information Notes to the Financial Statements continued
For the year ended 31 December 2025

17. Financial Instruments and Fair Values continued

17(iv) – Foreign currency risk management continued

Forward foreign exchange and currency swap contracts

Some of the forward foreign exchange and currency swap contracts held by the Group are designated as net investment hedges of euro denominated subsidiaries, where exchange differences are booked in reserves and recognised in the Income Statement when the operation is sold. The remaining foreign exchange and currency swap contracts are effectively economic cash flow hedges, for example using surplus cash in one currency to provide (typically through intercompany debt funding arrangements with overseas subsidiaries) funds to repay debt, or to fund development expenditure or acquisitions in another currency. These instruments have not been designated as hedges. As a consequence, exchange movements in respect of these instruments are taken through the Income Statement.Offsetting these movements are net exchange gains of £27 million (2024: £14 million loss) arising on intercompany debt funding arrangements (discussed above) and exchange movements arising from external borrowings not designated as hedges. This has resulted in exchange differences of £2 million loss (2024: £1 million gain) within net finance costs in Note 9. The Group seeks to limit its exposure to volatility in foreign exchange rates by hedging its foreign gross assets using either borrowings or derivative instruments. The Group targets a hedging range of between the last reported LTV ratio (31 per cent at 31 December 2025) and 100 per cent. At 31 December 2025, the Group had gross foreign currency assets, which were 71 per cent hedged by gross foreign currency denominated liabilities (2024: 75 per cent). Further details are provided within the Foreign Currency Translation Risk section of the Financial review on page 41. The following table details the forward foreign exchange and currency swap contracts outstanding as at the year end:

	Average Currency contract exchange rates (local currency)	Contract value	Fair value
	2025	2024	2025
m	£m	£m	£m
Group
Economic cash flow hedges
Sell euros (buy sterling)	1.13	1.15	588
Buy euros (sell sterling)	1.14	1.20	17
Net investment hedges
Sell euros (buy sterling)	1.14	1.21	101
Total

Effects of net investment hedge accounting on financial position and performance

The effects of the foreign currency related hedging instruments on the Group’s financial position and performance are detailed below.

Forward foreign exchange contracts

The Group designated euro denominated forward foreign exchange contracts as net investment hedges during 2025 and 2024. There was no ineffectiveness to be recorded from net investments in foreign entity hedges in 2025 and 2024 where the hedging instrument was forward foreign exchange contracts. This is because the critical terms of both the net investment in foreign entity and the hedging instrument match, and at each Balance Sheet date both are revalued to the closing spot rate. Any forward points in the foreign exchange contract are taken to the Income Statement.

Group	2025	2024
Euro forward foreign exchange	£m	£m
Carrying amount (current liabilities, Note 17(i))	—	—
Notional amount	88	84
Maturity date	Jan 2026	Jan 2025
Hedge ratio	1:1	1:1
Change in discounted spot value of hedging instruments since 1 January – (loss)/gain	(4)	20
Change in value of hedged item used to determine hedge effectiveness – gain/(loss)	4	(20)
Weighted average hedged rate for the year (including forward points)	1.17	1.17

161 | SEGRO plc Annual Report & Accounts 2025

Overview Strategic Report Governance Financial Statements Further Information

Notes to the Financial Statements continued

For the year ended 31 December 2025

17. Financial Instruments and Fair Values continued

17(iv) – Foreign currency risk management continued

US private placement notes and bonds

There was no ineffectiveness to be recorded from net investments in foreign entity hedges in 2025 and 2024 where the hedging instrument was US private placement notes or bonds. This is because the critical terms of both the net investment in foreign entity and the hedging instrument match, and at each Balance Sheet date both are revalued to the closing spot rate.

Group	2025	2024
Private placement notes and bonds	£m	£m
Carrying amount of private placement notes or bonds (non-current borrowings, Note 16)	1,848	1,747
Carrying amount of private placement notes or bonds designated as net investment hedging instruments	1,848	1,747
Hedge ratio	1:1	1:1
Change in carrying amount of USPP notes and bonds as a result of foreign currency movement since 1 January, recognised in OCI – (loss)/gain	(92)	75
Change in value of hedged item used to determine hedge effectiveness – gain/(loss)	92	(75)
Weighted average hedged rate for the year (including forward points)	1.15	1.21

The total fair value movements on derivatives and borrowings in effective hedge relationships shown in Other Comprehensive Income for the year ended 31 December 2025 is a loss of £96 million (2024: £95 million gain) and consists of the loss on euro forward foreign exchange of £4 million (2024: £20 million gain) and loss on US private placement notes and bonds of £92 million (2024: £75 million gain) shown in the tables above.

17(v) – Interest rate risk management

The Group is exposed to interest rate risk as entities in the Group borrow funds at both fixed and floating interest rates and invests cash at floating interest rates. The risk is managed by maintaining an appropriate mix between fixed and floating rates. The current Group policy states that 50 to 100 per cent of net borrowings should be at fixed rate provided by long-term debt issues attracting a fixed coupon or from floating rate bank borrowings converted into fixed rate or hedged via interest rate swaps, forwards, caps, collars or floors or options on these products. Hedging activities require approval and are evaluated and reported on regularly to ensure that the policy is being adhered to. The Board reviews the policy on interest rate exposure annually with a view to establishing that it is still relevant in the prevailing and forecast economic environment.

Interest rate sensitivity analysis

The sensitivity analysis below has been determined based on the exposure to interest rates for both derivative and non-derivative instruments at the Balance Sheet date. For floating rate liabilities, the analysis is prepared assuming that the amount of liability outstanding at the Balance Sheet date was outstanding for the whole year. A 1 per cent increase or decrease is used when reporting interest rate risk internally to key management personnel and represents management’s assessment of the reasonable possible change in interest rates. If interest rates had been 1 per cent higher and all other variables were held constant, the Group’s profit for the year ended 31 December 2025 would increase by £nil (2024: £5 million increase in profit for the year). If interest rates had been 1 per cent lower and all other variables were held constant, the Group’s profit for the year ended 31 December 2025 would increase by £10 million (2024: £1 million increase in profit for the year). The interest rate sensitivity described results in a higher profit in 2025 and 2024 for both an interest rate rise and an interest rate fall. This is because during 2025 and 2024 the Group had both interest rate caps hedging floating rate debt interest costs, and interest rate floors hedging floating rate cash interest income. Fixed rate debt issues are held at amortised cost and are not revalued in the Balance Sheet to reflect interest rate movements.

Interest rate swap contracts

Under interest rate swap contracts, the Group agrees to exchange the difference between fixed and floating rate interest amounts calculated on agreed notional principal amounts. Such contracts enable the Group to manage the interest rate risk of the Group’s borrowings. The fair value of interest rate swaps at the reporting date is determined by discounting the future cash flows using the yield curves at the reporting date and the credit risk inherent in the contract, and is disclosed below. The average interest rate is based on the outstanding balances at the end of the financial year. The following tables detail the notional principal amounts and remaining terms of interest rate swap contracts, based on their contractual maturities (excluding mandatory break clauses), outstanding as at the reporting date:

	Average contract–	Notional principal	Fair value
	fixed interest rate
	2025	2024	2025
	%	%	£m
Pay fixed, receive floating contracts:
Group
In one year or less	—	2.80	—
In more than one year but less than two	3.92	—	100
In more than two years but less than five	—	3.92	—
In more than five years	—	—	—
Total			100
Receive fixed, pay floating contracts:
Group
In one year or less	—	—	—
In more than one year but less than two	—	—	—
In more than two years but less than five	1.82	1.82	87
In more than five years	1.86	1.86	565
Total			652

The above are effective economic hedges although the Group has not elected to adopt hedge accounting for them, hence their change in fair value is taken direct to the Income Statement.

162 | SEGRO plc Annual Report & Accounts 2025

Overview Strategic Report Governance Financial Statements Further Information

Notes to the Financial Statements continued

For the year ended 31 December 2025

17. Financial Instruments and Fair Values continued

17(v) – Interest rate risk management continued

Interest rate swap contracts continued

The interest rate swaps settle on either a three-month or six-month basis with the floating rate side based on the EURIBOR or sterling SONIA rate for the relevant period. The Group will settle or receive the difference between the fixed and floating interest rate on a net basis.

Interest rate cap contracts

The Group agrees to receive floating rate interest amounts calculated on agreed notional principal amounts, should prevailing market rates rise above a specified strike rate using interest rate caps. Such contracts enable the Group to manage the interest rate risk of the Group’s floating rate borrowings. The fair value of interest rate caps at the reporting date is determined by discounting the future cash flows using the yield curves at the reporting date and the credit risk inherent in the contract and is disclosed below. The average interest rate is based on the outstanding balances at the end of the financial year.The following table details the notional principal amounts and remaining terms of interest rate cap contracts, based on their contractual maturities, outstanding as at the reporting date:

	Average strike price	Notional amount	Fair value
	2025 %	2024 %	2025 £m
Group
In one year or less	2.32	2.64	261
In more than one year but less than two	2.17	2.32	287
In more than two years but less than five	1.94	1.77	783
In more than five years	2.3.11	—	348
Total			1,679

1 2025 includes forward starting interest rate caps, with a notional amount totalling €400 million, 2.5 per cent average strike, and €1 million fair value.
2 2025 includes forward starting interest rate caps, with a notional amount totalling €400 million, 3.1 per cent average strike, and €3 million fair value.

The above are effective economic hedges although the Group has not elected to adopt hedge accounting for them, hence their change in fair value is taken direct to the Income Statement. The interest rate caps settle on a three-month basis based on the EURIBOR rate for the relevant period. The Group will receive the difference between the floating rate and the specified strike rate.

Interest rate floor contracts
The Group agrees to receive floating rate interest amounts calculated on agreed notional principal amounts should prevailing market rates fall below a specified strike rate using interest rate floor contracts. Such contracts enable the Group to manage the interest rate risk of the Group’s cash balances, which are invested in funds generating a floating rate of interest. The fair value of interest rate floors at the reporting date is determined by discounting the future cash flows using the yield curves at the reporting date and the credit risk inherent in the contract and is disclosed below. The average interest rate is based on the outstanding balances at the end of the financial year. The following table details the notional principal amounts and remaining terms of interest rate floor contracts, based on their contractual maturities, outstanding as at the reporting date:

	Notional principal amount	Average strike price	Fair value
	2025 £m	2024 £m	2025 %
Group
In one year or less	—	900	—
In more than one year but less than two	—	—	—
In more than two years but less than five	—	—	—
In more than five years	—	—	—
Total	—	900	—

The above are effective economic hedges although the Group has not elected to adopt hedge accounting for them, hence their change in fair value is taken direct to the Income Statement. The interest rate floors settle on a three-month basis based on the compounded SONIA rate for the relevant period. The Group will receive the difference between the floating rate and the specified strike rate.

17(vi) – Credit risk management

Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the Group. Potential customers are evaluated for creditworthiness and where necessary collateral is secured. There is no concentration of credit risk within the lease portfolio to either business sector or individual company as the Group has a diverse customer base with no one customer accounting for more than 6 per cent of rental income. Trade receivables were less than 1 per cent of total assets at 31 December 2025 and at 31 December 2024. The ageing of the Group’s trade receivables and the carrying amount net of loss allowances is set out below.

	2025			2024
	Gross amount	Loss allowance	Net carrying amount	Gross amount	Loss allowance	Net carrying amount
Group	£m	£m	£m	£m	£m	£m
0–30 days	6	(2)	4	6	(2)	4
30–60 days	1	(1)	—	3	(1)	2
60–90 days	3	(1)	2	—	—	—
90–180 days	3	(1)	2	2	(1)	1
>180 days	6	(5)	1	5	(4)	1
Past due	19	(10)	9	16	(8)	8
Not due	61	—	61	58	(1)	57
Total trade receivables	80	(10)	70	74	(9)	65

163 | SEGRO plc Annual Report & Accounts 2025 Overview Strategic Report Governance Financial Statements Further Information Notes to the Financial Statements continued For the year ended 31 December 2025
17. Financial Instruments and Fair Values continued

17(vi) – Credit risk management continued

Gross trade receivables mainly consists of amounts invoiced for rent, service charge and management fees, which form part of revenue (see Note 4) and are inclusive of VAT. Trade receivables at 31 December 2025 includes amounts due for 2025 rent and amounts billed in advance for 2026 rent. Both amounts have been considered in measuring expected credit losses (ECLs) detailed further below. The amounts billed in advance for 2026 rent are included within the ‘Not due’ category in the table above. Total gross trade receivables ‘past due’ at 31 December 2025 were £19 million (2024: £16 million), 3 per cent of total gross rental income for the year (2024: 3 per cent). Trade receivables are presented in the Balance Sheet net of loss allowances. The Group applies the IFRS 9 simplified approach to measuring expected credit losses (ECLs), which uses a lifetime expected loss allowance for all trade receivables. Expected loss rates are based on the historic credit loss experienced and adjusted for current and forward information affecting the ability of the individual customers to settle receivables. Trade receivables are written off when there is no reasonable expectation of recovery. In determining the ECLs an analysis of various factors has been performed on a customer by customer basis and considers the impact of economic conditions. These factors include an assessment of the customer’s default risk based on: industry and geographic location; and payment record, which includes how many days past due the receivable is, payment plans granted and credit rating. ECLs are recognised net of securities held for the customer. As at 31 December 2025, the Group held a loss allowance provision for trade receivables of £10 million (2024: £9 million) and the impairment risk remains low with the loss allowance of £10 million representing 2 per cent of total gross rental income for the year (2024: 2 per cent). Total impairment losses on trade receivables of £2 million were recognised in the Income Statement for the year ended 31 December 2025 (2024: £1 million). The impairment losses on trade receivables include the net impact from loss allowances, receivables written off and recoveries of receivables previously written off and are presented within operating profit (see Note 5). The other financial assets and lease incentive balances held by the Group have been considered for impairment based on historical default rates over the expected life and are adjusted for forward-looking information. Based on that analysis, no material loss allowances are held against these assets in the current and prior period. Investment in financial instruments is restricted to banks and short-term liquidity funds with a good credit rating. Derivative financial instruments are transacted via International Swaps and Derivatives Association (ISDA) agreements with counterparties with an A- (or equivalent) credit rating. Cash and cash equivalents were placed with financial institutions with a minimum credit rating of A- (or equivalent). The Group’s exposure and the credit ratings of its counterparties are continuously monitored and the aggregate value of transactions concluded is spread among approved counterparties.

17(vii) – Liquidity risk management

Ultimate responsibility for liquidity risk management rests with the Board, which has built an appropriate liquidity risk management framework for the management of the Group’s short, medium and long-term funding and liquidity management requirements. The Group manages liquidity risk by requiring that adequate cash and committed bank facilities are available to cover and match all debt maturities, development spend, trade related and corporate cash flows over a rolling 18-month period. This is achieved by continuously monitoring forecast and actual cash flows and matching the maturity profiles of financial assets and liabilities. Liquidity risk management is discussed in more detail in the Financial review on page 41.

Liquidity and interest risk tables
The following tables detail the Group’s remaining contractual maturity profile for its financial instruments. The tables have been drawn up based on the undiscounted cash flows of financial liabilities based on the earliest date on which the Group can be required to pay. The tables include both interest and principal cash flows.

	2025
Weighted average interest rate	Under 1 year £m	1-2 years £m	2-5 years £m	Over 5 years £m	Total £m	%
Group
Non-derivative financial liabilities:
Trade and other payables	1	342	—	—	—	342
Lease liabilities	3.90	5	5	14	133	157
Variable rate debt instruments	4.73	16	152	295	—	463
Fixed rate debt instruments	2.46	672	451	1,277	2,466	4,866
Derivative financial instruments:
Net settled interest rate swaps	1.47	71	81	3	3	158
Gross settled foreign exchange – Forward and currency swap contracts
– Inflowing		(15)	—	—	—	(15)
– Outflowing		15	—	—	—	15
Total		1,106	689	1,589	2,602	5,986

SEGRO plc Annual Report & Accounts 2025 Overview Strategic Report Governance Financial Statements Further Information Notes to the Financial Statements continued For the year ended 31 December 2025
17.Financial Instruments and Fair Values continued

17(vii) – Liquidity risk management continued
Liquidity and interest risk tables continued

	Weighted average interest rate	Under 1 year £m	2-5 years £m	Over 5 years £m	Total £m
2024	%	£m	£m	£m	£m
Group
Non-derivative financial liabilities:
Trade and other payables	1	350	—	—	350
Lease liabilities	3.90	4	4	12	109
Variable rate debt instruments	5.22	10	10	241	—
Fixed rate debt instruments	2.48	110	641	1,177	2,864
Derivative financial instruments:
Net settled interest rate swaps	2.60	53	56	26	—
Gross settled foreign exchange
– Forward and currency swap contracts
– Inflowing	(2)	—	—	—	(2)
– Outflowing	2	—	—	—	2
Total		527	711	1,456	2,973

1 Group trade and other payables disclosed as financial liabilities in Note 17(ii) of £463 million (2024: £456 million) includes accrued interest of £38 million (2024: £36 million) and lease liabilities of £83 million (2024: £70 million). Accrued interest is shown in debt instruments in the table above.

18. Share Capital and Share-based Payments

Share capital

Group and Company	Number of shares Issued and fully paid	Per value £m
million
Ordinary shares of 10p each at 1 January 2025	1,353	135
Issue of shares – placing	—	—
Issue of shares – scrip dividends	—	—
Issue of shares – other	—	—
Ordinary shares of 10p each at 31 December 2025	1,353	135
	Number of shares Issued and fully paid	Per value £m
million
Ordinary shares of 10p each at 1 January 2024	1,228	123
Issue of shares – placing	111	11
Issue of shares – scrip dividends	13	1
Issue of shares – other	1	—
Ordinary shares of 10p each at 31 December 2024	1,353	135

Share-based payments

The Group operates the share-based payments schemes set out below.

18(i) – Deferred Share Bonus Plan (DSBP)

The DSBP is for Executive Directors and senior managers. A percentage of any payment made under the Bonus Scheme is awarded in shares and deferred in trust for three years. The percentage subject to deferral for Executive Directors is 50 per cent of the bonus payment. This scheme is detailed in the Remuneration Report on page 114. If a participant ceases to be employed by the Group, the award will lapse unless the participant is deemed to be a ‘good leaver’, in which case the award will be released on the vesting date.

	2025 number	2024 number
At 1 January	1,239,354	1,187,381
Shares granted DSBP	592,301	332,487
Shares vested	(440,603)	(187,792)
Shares expired/lapsed	(9,000)	(92,722)
At 31 December	1,382,052	1,239,354

The 2024 DSBP grant was made on 28 April 2025, based on a 25 April 2025 closing mid-market share price of 691.8 pence.

165 | SEGRO plc Annual Report & Accounts 2025

Overview Strategic Report Governance Financial Statements Further Information

Notes to the Financial Statements continued
For the year ended 31 December 2025

1. Share Capital and Share-based Payments continued

18(ii) – Long Term Incentive Plan (LTIP)

The LTIP is a discretionary employee share scheme for Executive Directors and senior managers. Vesting of awards is subject to three-year performance conditions and is at the discretion of the Remuneration Committee. The performance conditions of the LTIP are detailed in the Remuneration Report on page 112 and 115. If a participant ceases to be employed by the Group, the award will lapse, unless the participant is deemed to be a ‘good leaver’, in which case the award will be reduced pro-rata on length of employment in relation to the award date. For Executive Directors a compulsory two-year post-vesting holding period follows the three-year performance period.

	2025 number	2024 number
At 1 January	4,647,326	4,668,321
Shares granted LTIP	2,178,187	1,476,521
Shares vested	(519,480)	(1,019,115)
Shares expired/lapsed	(954,015)	(478,401)
At 31 December	5,352,018	4,647,326

The 2025 LTIP award was made on 19 February 2025. The calculation of the award was based on a share price of 714.0 pence, the closing mid-market share price on 18 February 2025. Additionally, an LTIP award was made on 2 December 2025 using the same share price as the award made on 19 February 2025. An additional recruitment LTIP award was made on 2 December 2025. The calculation of the recruitment LTIP award was based on a share price of 710.8 pence, the closing mid-market share price on 1 December 2025. Further details can be found in the Remuneration Report on page 123. No consideration was paid for the grant of any award. The Black-Scholes model has been used to fair value the shares granted currently under award apart from the TSR elements of the award, which uses the Monte Carlo model. The assumptions used are as follows:

	29 March 2021	5 May 2022	24 March 2023	22 March 2024	19 February 2025
Date of grant
Market price used for award	933.0p	1,162.5p	737.8p	889.2p	714.0p
Risk-free interest rate	0.13%	1.68%	3.33%	4.18%	4.09%
Dividend yield	2.4%	1.9%	3.1%	3.3%	3.3%
Volatility	22.3%	24.7%	28.3%	29.4%	28.2%
Term	3 years	3 years	3 years	3 years	3 years
Fair value per share	375.3p	493.1p	338.9p	520.1p	267.6p

18(iii) – Other share schemes

The Group also operates the following all-employee share schemes.
* Share Incentive Plan (SIP) - for UK based employees
* Global Share Incentive Plan (GSIP) - for Continental European based employees
* Sharesave

Further details of these schemes are set out in the Remuneration Report on page 116. The total share--based payment charge for the other share schemes recognised in the 2025 Income Statement was £1 million (2024: £1 million). The total number of outstanding shares and options for these schemes as at 31 December 2025 was 1,089,005 (2024: 963,176).

19. Share Premium and Other Reserves

Share premium	2025 £m	2024 £m
Group and Company
Balance at 1 January	4,569	3,577
Premium arising on the issue of shares – placing	—	878
Premium arising on the issue of shares – scrip dividend	—	114
Balance at 31 December	4,569	4,569

Capital redemption reserve

The capital redemption reserve of £114 million arose in 2009 where shares were reclassified, cancelled and consolidated in connection with a rights issue.

Own shares held reserve

The own shares held reserve represents the cost of shares in SEGRO plc bought in the open market and held by Ocorian Limited and Equiniti Limited, to satisfy various Group share schemes.

Other reserves

Other reserves shown on the Group Balance Sheet of £196 million (2024: £124 million) are made up of the following reserves:

The merger reserve of £169 million (2024: £169 million) arose in 2009 in connection with the acquisition of Brixton plc, where the Group acquired 100 per cent of the voting equity of Brixton plc in a share for share exchange.

The Group translation, hedging and other reserves of £7 million surplus (2024: £70 million deficit) comprises all foreign exchange differences arising from the translation of the Financial Statements of foreign operations, as well as from the translation of liabilities that hedge the Group’s net investment in foreign denominated subsidiaries.

The Group share-based payment reserve of £20 million (2024: £25 million) reflects the increase in equity in connection with share-based payment transactions accounted for under IFRS 2.

166 | SEGRO plc Annual Report & Accounts 2025

Overview Strategic Report Governance Financial Statements Further Information

Notes to the Financial Statements continued
For the year ended 31 December 2025

20. Commitments

Contractual obligations to purchase, construct, develop, repair, maintain or enhance assets are as follows:

Group	2025 £m	2024 £m
Properties	1 581	210

1 As detailed on page 34 of the Strategic Report, the Group (including joint ventures at share) is expected to invest approximately £450-£550 million in development capex during 2026. This amount includes committed and uncommitted capex. In addition, commitments in the Group’s joint ventures at 31 December 2025 (at share) amounted to £44 million (2024: £2 million). The Group also has a £5 million commitment to property related investment funds at 31 December 2025 (2024: £4 million).

21. Contingent Liabilities

The Group has given performance guarantees to third parties amounting to £48 million (2024: £46 million) in respect of development contracts of subsidiary undertakings. It is unlikely that these contingencies will crystallise. The Company has guaranteed loans, bank overdrafts and euro bonds of subsidiary undertakings and has indicated its intention to provide the necessary support required by its subsidiaries. The Group and joint ventures are subject to claims and litigation generally and provide guarantees, indemnities, representations and warranties arising in the ordinary course of its business. Provision is made when liabilities are considered likely to arise and the expected quantum of the exposure is able to be estimated. The risk in relation to such items is monitored on an ongoing basis and provisions amended accordingly. It is not expected that contingent liabilities existing at 31 December 2025 will have a material adverse effect on the Group’s financial position.

22. Leases

The Group as a lessor

The investment properties are leased to tenants under operating leases with rentals payable on a monthly or quarterly basis. Lease payments for some contracts include inflationary index increases, but there are no significant levels of variable lease payments that do not depend on an index or a rate. Where considered necessary to reduce credit risk, the Group may obtain bank guarantees or tenant deposits for the term of the lease. The Group is exposed to changes in the residual value of properties at the end of current lease agreements. The residual value risk borne by the Group is mitigated by active management of its property portfolio and is discussed further in the Asset Management update on pages 30 to 32. The Group does not hold significant finance leases as a lessor.Future aggregate minimum rentals receivable under non-cancellable operating leases are:

	Joint ventures	Group at share
	2025	2024	2025
	£m	£m	£m
Not later than one year	566	141	707
Later than one year, not later than two years	509	128	637
Later than two years, not later than three years	443	105	548
Later than three years, not later than four years	384	84	468
Later than four years, not later than five years	318	70	388
Later than five years	2,165	215	2,380
Balance at 31 December	4,385	743	5,128

There are no significant levels of contingent rent in the current or prior year.

167 | SEGRO plc Annual Report & Accounts 2025 Overview Strategic Report Governance Financial Statements Further Information Notes to the Financial Statements continued

For the year ended 31 December 2025

23. Related Party Transactions

Group Transactions during the year between the Group and its joint ventures are disclosed below:

	2025	2024
	£m	£m
Dividends received	63	29
Proceeds from assets sold to joint ventures	73	—
Management fee income	25	26

1 During 2025, proceeds from assets sold joint ventures includes land contributed into the SEGRO Pure Premier Park Data Centre joint venture and assets sold to the SELP joint venture. No assets were sold to joint ventures during 2024.

Amounts due from joint ventures are disclosed in Note 14. Investments in joint ventures at 31 December 2025 of £1,715 million disclosed in Note 7 (2024: £1,552 million) include shareholder loans of £89 million (2024: £84 million). Outstanding loans and amounts due are generally charged interest at market rates and are unsecured. Loans held with joint ventures are either cash settled or converted into share capital.

Transactions between the Company and its subsidiaries eliminate on consolidation and are not disclosed in this note.

Company Amounts due from subsidiaries are disclosed in Note 7 and amounts due to subsidiaries are disclosed in Note 15.

None of the above Group or Company balances are secured.

Remuneration of key management personnel

Key management personnel for the Group and Company comprise Executive and Non-Executive Directors, as outlined in the Governance Report on pages 74 to 76. Key management personnel compensation is shown in the table below:

	2025	2024
	£m	£m
Salaries and short-term benefits	5	4
Share-based payments	—	2
Total remuneration	5	6

More detailed information concerning Directors’ remuneration, shareholdings, pension entitlements, share options and other long-term incentive plans, as required by the Companies Act 2006, is shown in the Remuneration Report on pages 106 to 124.

24. Notes to the Cash Flow Statements

24(i) – Reconciliation of cash generated from operations

Group	2025	2024
	£m	£m
Operating profit	663	703
Adjustments for:
Depreciation of property, plant and equipment and amortisation of intangibles	17	12
Share of profit from joint ventures after tax	(109)	(53)
Profit on sale of properties	(1)	(75)
Revaluation surplus on investment properties	(54)	(120)
Other provisions	4	5
	520	472
Changes in working capital:
Decrease/(increase) in trading properties	5	(3)
Increase in debtors and tenant incentives	(47)	(18)
Increase in creditors	14	8
Net cash inflow generated from operations	492	459

24(ii) – Deposits

Term deposits for a period of three months or less are included within cash and cash equivalents.

24(iii) – Analysis of net debt

Management defines net debt as total borrowing less cash and cash equivalents.

	Cash movements	Non-cash movements	At Cost of early close	Other non-cash adjustments	At 31 December 2025
	1 January 2025	Cash inflow	Cash outflow	Exchange movement	3
£m	£m	£m	£m	£m	£m
Group
Bank loans and loan capital	4,641	268	(88)	166	—
Capitalised finance costs				(9)	—
Total borrowings	4,607	268	(97)	166	—
Cash and cash equivalents	(363)	—	252	—	—
Net debt	4,244	268	155	166	—

1 Proceeds from borrowings of £268 million.
2 Cash outflow of £97 million, comprises repayment of borrowings of £88 million and capitalised finance costs of £9 million.
3 Total other non-cash adjustment of £7 million relates to the amortisation of issue costs offset against borrowings.

168 | SEGRO plc Annual Report & Accounts 2025 Overview Strategic Report Governance Financial Statements Further Information Notes to the Financial Statements continued

For the year ended 31 December 2025

24. Notes to the Cash Flow Statements continued

24(iv) – Analysis of financial liabilities and assets arising from financing activities

For the year ended 31 December 2025

	Cash movements	Non-cash movements	Cost of early close	Other non-cash adjustments	At 31 December 2025
	At 1 January 2025	Cash inflow	Cash outflow	Exchange movement 1	Net fair value movement 2
	£m	£m	£m	£m	£m
Group
Total borrowings (Note 16)	4,607	268	(97)	166	—
Derivatives: (Net)
Fair value of forward foreign exchange and currency swap contracts (Note 17)	(27)	—	(15)	—	30
Lease liabilities (Note 15)	3	70	—	(5)	—
Total net financial liabilities arising from financing activities	4,650	268	(117)	—	200

1 Exchange movement of £196 million from borrowings and forward foreign exchange and currency swap contracts consists of: foreign exchange loss on effective hedge relationships recognised in OCI of £96 million, foreign exchange loss arising on translation of borrowings held in international operations recognised in OCI of £71 million, and foreign exchange loss recognised within the Income Statement of £29 million. See Note 17(iv).
2 Total net fair value loss of £35 million arising from derivatives per Note 9 also includes fair value loss from interest rate derivatives of £31 million.
3 Lease liabilities cash outflows of £5 million consists of: £3 million interest payment and £2 million principal elements payment.

For the year ended 31 December 2024

	Cash movements	Non-cash movements	Cost of early close	Other non-cash adjustments	At 31 December 2024
	At 1 January 2024	Cash inflow	Cash outflow	Exchange movement 1	Net fair value movement 2
	£m	£m	£m	£m	£m
Group
Total borrowings (Note 16)	5,348	419	(1,006)	(166)	—
Derivatives: (Net)
Fair value of forward foreign exchange and currency swap contracts (Note 17)	(12)	1	—	(16)	—
Lease liabilities (Note 15)	3	74	—	(5)	(3)
Total net financial liabilities arising from financing activities	5,410	420	(1,011)	(185)	—

1 Exchange movement of £182 million from borrowings and forward foreign exchange and currency swap contracts consists of: foreign exchange gain on effective hedge relationships recognised in OCI of £95 million, foreign exchange gain arising on translation of borrowings held in international operations recognised in OCI of £72 million, and foreign exchange gain recognised within the Income Statement of £15 million. See Note 17(iv).
2 Total net fair value gain of £3 million arising from derivatives per Note 9 also includes fair value gain from interest rate derivatives of £3 million.
3 Lease liabilities cash outflows of £5 million consists of: £3 million interest payment and £2 million principal elements payment.

169 | SEGRO plc Annual Report & Accounts 2025 Overview Strategic Report Governance Financial Statements Further Information Notes to the Financial Statements continued

For the year ended 31 December 2025

25. Property Valuation Techniques, Sustainability and Climate Change Considerations and Related Quantitative Information

All of the Group’s properties are level 3, as defined by IFRS 13, in the fair value hierarchy as at 31 December 2025 and there were no transfers between levels during the year. Level 3 inputs used in valuing the properties are those which are unobservable, as opposed to level 1 (inputs from quoted prices) and level 2 (observable inputs either directly, i.e. as prices, or indirectly, i.e. derived from prices).

Valuation techniques

Based on different approaches for different properties, the following valuation techniques can be used for the same class of assets:

The yield methodology valuation technique is used when valuing the Group’s assets, which uses market rental values capitalised with a market capitalisation rate. The resulting valuations are cross-checked against the initial yields and the fair market values per square metre derived from actual market transactions for similar assets.

For properties under construction and the majority of land held for development, properties are valued using a residual method valuation. Under this methodology, the valuer assesses the investment value (using the above mentioned methodology for completed buildings). Deductions are then made for the total estimated costs to complete, including notional finance costs and developer’s profit, to take into account the hypothetical purchaser’s management of the remaining development process and their perception of risk with regard to construction and the property market (e.g. as regards potential cost overruns and letting risk). Land values are cross-checked against the rate per hectare derived from actual market transactions. Other land is also valued on this comparative basis.

Land values per hectare range from £0.1 million – £41.5 million (2024: £0.1 million – £41.5 million) for the UK and £0.1 million – £10.8 million (2024: £0.1 million – £11.4 million) for Continental Europe.

Sustainability valuation considerations

The Group’s valuers, CBRE, note in their valuation report that the impact of sustainability factors on valuations have been considered. In a valuation context, ‘sustainability’ encompasses a wide range of physical, social, environmental and economic factors that can affect value of an asset, even if not explicitly recognised. The valuers consider the following areas to have the most potential to impact on the value of an asset: Energy Performance; Green Certification; Sources of Fuel and Renewable Energy Sources and Physical Risk/Climate Risk.The valuers have considered in particular the EPC ratings and the appropriate capital expenditure that will be required to obtain the necessary EPC rating to attract and maintain the tenants required in the future. The valuers are also aware of the impact of flood risk and have noted the impact this has had on potential purchasers.

Climate risk legislation

The UK Government and the EU is currently producing legislation on the transition to net-zero. The UK Government is currently producing legislation that enforces the transition to net-zero by 2050, and the stated 78 per cent reduction of greenhouse gases by 2035. This is understood to include an update to the Minimum Energy Efficiency Standards, stated to increase the minimum requirements for non-domestic properties from an E to a B in 2030. The UK Government also intends to introduce an operational rating. It is not yet clear how this will be legislated, but fossil fuels used in buildings, such as natural gas for heating, are incompatible with the UK’s commitment to be net-zero carbon by 2050. This upcoming legislation could have a potential impact to future asset value. The introduction of mandatory climate-related disclosures in the UK and EU (including Task Force on Climate-related Financial Disclosures (TCFD) in the UK and Sustainable Finance Disclosure Regulations (SFDR) and Corporate Sustainability Reporting Directive (CSRD) in the EU), including the assessment of physical and transition climate risks, may potentially have an impact on how the market views such risks and incorporates them into the sale and letting of assets. Sustainability and climate risk legislation has an impact on the value of an asset, even if not explicitly recognised. Where the valuers recognise the value impacts of sustainability and legislation, they are reflecting their understanding of how market participants include sustainability and legislation requirements in their bids and the impact on market valuations.

Sensitivity analysis

An increase/decrease to estimated rental value (ERV) will increase/decrease valuations, while an increase/decrease to yield will decrease/increase valuations. Sensitivity analysis showing the impact on valuations of changes in yields and ERV on the property portfolio (including joint ventures at share) and the impact on valuations of changes in development costs on the development property and land portfolio (including joint ventures at share) is shown below. Management still considers a +/- 25bp change in yield, a +/- 5 per cent change in ERV and a +/- 10 per cent change in development costs to be reasonably possible changes to the assumptions.

Impact on valuation	Impact on valuation of 25bp change in equivalent yield	Impact on valuation of 5% change in estimated rental value (ERV)	Impact on valuation of 10% change in estimated development costs
Group	Increase	Decrease	Increase
£m	£m	£m	£m
2025
Completed property	16,664	(782)	849
Development property and land	2,298	(168)	179
Group total property portfolio	18,962	(950)	1,028

170 | SEGRO plc Annual Report & Accounts 2025 Overview Strategic Report Governance Financial Statements Further Information Notes to the Financial Statements continued For the year ended 31 December 2025

25. Property Valuation Techniques, Sustainability and Climate Change Considerations and Related Quantitative Information continued

Sensitivity analysis continued

Impact on valuation	Impact on valuation of 25bp change in equivalent yield	Impact on valuation of 5% change in estimated rental value (ERV)	Impact on valuation of 10% change in estimated development costs
Group	Increase	Decrease	Increase
£m	£m	£m	£m
2024
Completed property	15,453	(734)	807
Development property and land	2,317	(190)	203
Group total property portfolio	17,770	(924)	1,010

There are inter-relationships between all these inputs as they are determined by market conditions. The existence of an increase in more than one input would be to magnify the impact on the valuation. The impact on the valuation will be mitigated by the inter-relationship of two inputs in opposite directions, for example, an increase in rent may be offset by an increase in yield. The yield sensitivity is based on the equivalent yield that closely aligns with the net true equivalent yield inputs shown in the tables below. The tables below includes the Group’s wholly-owned and joint venture assets at share in order to include the entire portfolio. The equivalent analysis for the range of inputs on a wholly-owned basis would not be significantly different.

Valuation Inputs

	Net true equivalent yield 2025	Combined Net true ERV 1	Land & property ERV range 2	Combined Net true equivalent yield range 3
By asset type	£m	£m	£m	£ per sq m
Big box warehouses	5,790	—	5,790	69.4
Urban warehouses	9,215	—	9,215	173.9
Data centres	1,294	—	1,294	322.8
Other uses of industrial land 4	365	—	365	216.7
	16,664	2,298	18,962	103.6
By ownership
Wholly-owned 5	13,782	2,138	15,920	148.1
Joint ventures	2,882	160	3,042	63.2
Group total	16,664	2,298	18,962	103.6

1 Land and development valuations by asset type are not available as land sites are not categorised by asset type. Combined property portfolio column will not cast down but row does cast across.
2 On a fully occupied basis.
3 In relation to the completed properties only.
4 Other uses of industrial land includes offices and retail uses, such as trade counters, car showrooms and self-storage facilities.
5 Included in the completed portfolio, the wholly-owned assets are: big box £2,995 million; urban warehouses £9,130 million; data centres £1,294 million; and other uses of industrial land £363 million.

171 | SEGRO plc Annual Report & Accounts 2025 Overview Strategic Report Governance Financial Statements Further Information Notes to the Financial Statements continued For the year ended 31 December 2025

25. Property Valuation Techniques, Sustainability and Climate Change Considerations and Related Quantitative Information continued

Sensitivity analysis continued

	Valuation Inputs
	Net true equivalent yield 2025	Combined Net true ERV 1	Land & property	Net true ERV range 1	Combined Net true equivalent yield range 2
By geography	£m	£m	£m	£ per sq m	£ per sq m	%	%
UK	10,463	1,321	11,784	199.0	45.0-699.7	5.4	4.5-10.3
CE	6,201	977	7,178	69.5	31.3-261.0	5.6	4.5-9.7
Group total	16,664	2,298	18,962	103.6	31.3-699.7	5.5	4.5-10.3
Investment properties – Group (Note 13) 3	15,918
Investment properties – Joint ventures (Note 7(ii))	3,042
Trading properties – Group 4	2
Group total	18,962

1 On a fully occupied basis.
2 In relation to the completed properties only.
3 Excludes head lease ROU assets of £80 million.
4 Includes valuation surplus not recognised on trading properties of £1 million.

Valuation Inputs

	Valuation Inputs
	Net true equivalent yield 2024	Combined Net true ERV 1	Land & property	Net true ERV range 1	Combined Net true yield range 2
By asset type	£m	£m	£m	£ per sq m	£ per sq m	%	%
Big box warehouses	5,050	—	5,050	64.8	33.1–204.5	5.6	4.6–7.2
Urban warehouses	8,759	—	8,759	166.0	25.0–395.6	5.2	4.4–9.7
Data centres	1,284	—	1,284	306.5	146.4–387.4	5.4	4.6–5.6
Other uses of industrial land 4	360	—	360	215.3	49.6–645.8	7.4	4.5–11.8
	15,453	2,317	17,770	99.9	25.0–645.8	5.4	4.4–11.8
By ownership
Wholly-owned 5	13,015	2,229	15,244	143.1	25.0–645.8	5.3	4.4–11.8
Joint ventures	2,438	88	2,526	58.4	35.7–314.8	5.6	4.6–7.2
Group total	15,453	2,317	17,770	99.9	25.0–645.8	5.4	4.4–11.8

1 Land and development valuations by asset type are not available as land sites are not categorised by asset type. Combined property portfolio column will not cast down but row does cast across.
2 On a fully occupied basis.
3 In relation to the completed properties only.
4 Other uses of industrial land includes offices and retail uses, such as trade counters, car showrooms and self-storage facilities.
5 Included in the completed portfolio, the wholly-owned assets are: big box £2,702 million; urban warehouses £8,672 million; data centres £1,284 million; and other uses of industrial land £357 million.

Valuation Inputs

	Valuation Inputs
	Net true equivalent yield 2024	Combined Net true ERV 1	Land & property	Net true ERV range 1	Combined Net true yield range 2
By geography	£m	£m	£m	£ per sq m	£ per sq m	%	%
UK	10,039	1,452	11,491	195.8	45.0–645.8	5.3	4.5–11.8
CE	5,414	865	6,279	64.5	25.0–248.1	5.6	4.4–9.7
Group total	15,453	2,317	17,770	99.9	25.0–645.8	5.4	4.4–11.8
Investment properties – Group (Note 13) 3	15,236
Investment properties – Joint ventures (Note 7(ii))	2,526
Trading properties – Group 4	8
Group total	17,770

1 On a fully occupied basis.
2 In relation to the completed properties only.
3 Excludes head lease ROU assets of £67 million.
4 Includes valuation surplus not recognised on trading properties of £2 million.

172 | SEGRO plc Annual Report & Accounts 2025 Overview Strategic Report Governance Financial Statements Further Information Notes to the Financial Statements continued For the year ended 31 December 2025

26. Related Undertakings

A list of the Group’s related undertakings as at 31 December 2025 is detailed below. Except where the Group’s percentage holdings is disclosed below, the entire share capital of the subsidiary undertaking is held by the Group. Unless otherwise stated, the Group’s holding in the subsidiary undertaking comprise ordinary shares. Where subsidiaries have different classes of shares, the percentage effective holding shown represents both the Group’s voting rights and equity holding. All subsidiaries are consolidated in the Group’s Financial Statements.The Group’s related undertakings also includes its joint ventures, which is primarily SELP.

Audit exemption taken for subsidiaries

Certain UK subsidiaries are exempt from the requirement of the Companies Act 2006 (the Act) relating to the audit of individual accounts by virtue of Section 479A of the Act. These subsidiaries are identified with two asterisks (**) on the table below. Certain UK partnerships are exempt from the requirement to prepare, publish and have audited individual accounts by virtue of regulation 7 of The Partnership (Accountants) Regulations 2008. The results of these partnerships are consolidated within the Group accounts and are identified with three asterisks (***) on the table below.

% effective holding if Direct/ Indirect not 100%	Company Name	Jurisdiction	Registered Office
	Airport Property GP (No. 2) Limited**	England and Wales	1 New Burlington Place, London, W1S 2HR, United Kingdom
	Airport Property H1 Limited**	England and Wales	1 New Burlington Place, London, W1S 2HR, United Kingdom
	Airport Property Partnership***,3	England and Wales	1 New Burlington Place, London, W1S 2HR, United Kingdom
	Allnatt London Properties Limited**	England	1 New Burlington Place, London, W1S 2HR, United Kingdom
	Amdale Holdings Limited	Belgium	Boulevard Louis Schmidt 87, 1040 Etterbeek, Belgium
	Beira Investments Sp z.o.o.	Poland	Pl. Andersa 3, 61-894 Poznań, Poland
	Bilton Homes Limited 2	England and Wales	1 New Burlington Place, London, W1S 2HR, United Kingdom
	Bilton Limited**	England	1 New Burlington Place, London, W1S 2HR, United Kingdom
	Bonsol S.R.L.	Italy	Strada 3 Palazzo B3, 20057 Assago Milanofiori, Milan, Italy
	Brixton (Axis Park) Limited**	England and Wales	1 New Burlington Place, London, W1S 2HR, United Kingdom
	Brixton (Great Western, Southall) Limited**	England and Wales	1 New Burlington Place, London, W1S 2HR, United Kingdom
	Brixton (Hatton Cross) 1 Limited**	England and Wales	1 New Burlington Place, London, W1S 2HR, United Kingdom
% effective holding if Direct/ Indirect not 100%	Company Name	Jurisdiction	Registered Office
	Brixton (Metropolitan Park) 1 Limited**	England and Wales	1 New Burlington Place, London, W1S 2HR, United Kingdom
	Brixton (Origin) Limited**	England and Wales	1 New Burlington Place, London, W1S 2HR, United Kingdom
	Brixton Asset Management UK Limited**	England and Wales	1 New Burlington Place, London, W1S 2HR, United Kingdom
	Brixton Greenford Park Limited**	England and Wales	1 New Burlington Place, London, W1S 2HR, United Kingdom
	Brixton Limited**	England	1 New Burlington Place, London, W1S 2HR, United Kingdom
	Brixton Nominee 8 (Jersey) Limited	Jersey	3rd Floor, One The Esplanade, St Helier, JE2 3QA, Jersey
	Brixton Nominee 9 (Jersey) Limited	Jersey	3rd Floor, One The Esplanade, St Helier, JE2 3QA, Jersey
	Brixton Nominee 26 (Jersey) Limited	Jersey	3rd Floor, One The Esplanade, St Helier, JE2 3QA, Jersey
	Brixton Nominee 27 (Jersey) Limited	Jersey	3rd Floor, One The Esplanade, St Helier, JE2 3QA, Jersey
	Brixton Nominee 38 (Jersey) Limited	Jersey	3rd Floor, One The Esplanade, St Helier, JE2 3QA, Jersey
	Brixton Nominee 39 (Jersey) Limited	Jersey	3rd Floor, One The Esplanade, St Helier, JE2 3QA, Jersey
	Brixton Nominee 40 (Jersey) Limited	Jersey	3rd Floor, One The Esplanade, St Helier, JE2 3QA, Jersey
	Brixton Nominee 41 (Jersey) Limited	Jersey	3rd Floor, One The Esplanade, St Helier, JE2 3QA, Jersey
	Brixton Nominee Axis Park 1 Limited	Jersey	3rd Floor, One The Esplanade, St Helier, JE2 3QA, Jersey
	Brixton Nominee Axis Park 2 Limited	Jersey	3rd Floor, One The Esplanade, St Helier, JE2 3QA, Jersey
	Brixton Nominee Polar Park 1 Limited	Jersey	3rd Floor, One The Esplanade, St Helier, JE2 3QA, Jersey
	Brixton Nominee Polar Park 2 Limited	Jersey	3rd Floor, One The Esplanade, St Helier, JE2 3QA, Jersey
	Brixton Nominee Premier Park 1 Limited	Jersey	3rd Floor, One The Esplanade, St Helier, JE2 3QA, Jersey
	Brixton Nominee Premier Park 2 Limited	Jersey	3rd Floor, One The Esplanade, St Helier, JE2 3QA, Jersey
	Brixton Premier Park Limited**	England and Wales	1 New Burlington Place, London, W1S 2HR, United Kingdom
173	SEGRO plc Annual Report & Accounts 2025 Overview Strategic Report Governance Financial Statements Further Information Notes to the Financial Statements continued For the year ended 31 December 2025
% effective holding if Direct/ Indirect not 100%	Company Name	Jurisdiction	Registered Office
	Brixton Properties Limited**	England and Wales	1 New Burlington Place, London , W1S 2HR, United Kingdom
	Brixton Sub-Holdings Limited**	England and Wales	1 New Burlington Place, London , W1S 2HR, United Kingdom
	Coventry & Warwickshire Development Partnership LLP 3	England and Wales	Two Friargate, Station Square, Coventry, England, CV1 2GN
	CWDP Investment Limited**	England and Wales	Two Friargate, Station Square, Coventry, England, CV1 2GN
	Dagenham Park Management Company Limited**,4,8	England and Wales	1 New Burlington Place, London , W1S 2HR, United Kingdom
	De Hoek-Noord S-Park B.V.	Netherlands	Gustav Mahlerplein 62, ITO-toren, 8th Floor, 1082MA Amsterdam, Netherlands
	Devon Nominees (No. 1) Limited 2	England and Wales	1 New Burlington Place, London , W1S 2HR, United Kingdom
	Devon Nominees (No. 2) Limited 2	England and Wales	1 New Burlington Place, London , W1S 2HR, United Kingdom
	Devon Nominees (No. 3) Limited 2	England and Wales	1 New Burlington Place, London , W1S 2HR, United Kingdom
	ER 3 S.R.L.	Italy	Strada 3 Palazzo B3, 20057 Assago Milanofiori, Milan, Italy
	Gateway Rugby Management Company Limited**,4	England and Wales	1 New Burlington Place, London , W1S 2HR, United Kingdom
	Granby Investment Sp. z.o.o.	Poland	ul. Marszałkowska 126/134, 00-008 Warszawa
	Gront Four s.r.o.	Czech Republic	Praha 1, Na příkopě 393/11, Staré Město, PSČ 110 00, Czech Republic
	Hatton Farm Estates Limited**	England and Wales	1 New Burlington Place, London , W1S 2HR, United Kingdom
	Helios Northern Limited**	England and Wales	1 New Burlington Place, London , W1S 2HR, United Kingdom
	HelioSlough Limited**	England and Wales	1 New Burlington Place, London , W1S 2HR, United Kingdom
	Holbury Investments Sp. z.o.o.	Poland	Pl. Andersa 3, 61-894 Poznań, Poland
	IFP S.R.L.	Italy	Strada 3 Palazzo B3, 20057 Assago Milanofiori, Milan, Italy
	IMPIANTI FTV S.R.L.	Italy	Strada 3 Palazzo B3, 20057 Assago Milanofiori, Milan, Italy
% effective holding if Direct/ Indirect not 100%	Company Name	Jurisdiction	Registered Office
	Karnal Investment Sp z.o.o.	Poland	ul. Marszałkowska 126/134, 00-008 Warszawa
	London Distribution Park No.2 LLP 3	England and Wales	1 New Burlington Place, London, W1S 2HR, United Kingdom
	Lynford Investments Sp z.o.o.	Poland	ul. Marszałkowska 126/134, 00-008 Warszawa
	Nichelino DC S.R.L.	Italy	Strada 3 Palazza, B3 20057, Assago Milanofiori, Milan, Italy
	Ożarów Biznes Park Sp.z.o.o	Poland	Pl. Andersa 3, 61-894 Poznań, Poland
	Pilsen One s.r.o	Czech Republic	Praha 1, Na příkopě 393/11, Staré Město, PSČ 110 00, Czech Republic
	Premier Greenford GP Limited 2,5	England and Wales	1 New Burlington Place, London, W1S 2HR, United Kingdom
	Property Management Company (Croydon) Limited	England and Wales	1 New Burlington Place, London, W1S 2HR, United Kingdom
	Reprendre Racines SAS	France	20 rue Brunel, 75017 Paris, France
	Roxhill Management Rugby Limited**	England and Wales	1 New Burlington Place, London, W1S 2HR, United Kingdom
	San Colombano DC S.R.L.	Italy	Strada 3 Palazza, B3 20057, Assago Milanofiori, Milan, Italy
	SEGRO (225 Bath Road) Limited**	England and Wales	1 New Burlington Place, London, W1S 2HR, United Kingdom
	SEGRO (Acton Park Estate) Limited**	England and Wales	1 New Burlington Place, London, W1S 2HR, United Kingdom
	SEGRO (BA World Cargo) Limited**	England and Wales	1 New Burlington Place, London, W1S 2HR, United Kingdom
	SEGRO (Barking 1) Limited**	England and Wales	1 New Burlington Place, London, W1S 2HR, United Kingdom
	SEGRO (Barking 2) Limited**	England and Wales	1 New Burlington Place, London, W1S 2HR, United Kingdom
	SEGRO (Barking 3) Limited**	England and Wales	1 New Burlington Place, London, W1S 2HR, United Kingdom
	SEGRO (Barking) Limited**	England and Wales	1 New Burlington Place, London, W1S 2HR, United Kingdom
	SEGRO (Beddington Lane) Limited**	England and Wales	1 New Burlington Place, London, W1S 2HR, United Kingdom
	SEGRO (Belvedere Estate) Limited**	England and Wales	1 New Burlington Place, London, W1S 2HR, United Kingdom
174	SEGRO plc Annual Report & Accounts 2025 Overview Strategic Report Governance Financial Statements Further Information Notes to the Financial Statements continued For the year ended 31 December 2025
% effective holding if Direct/ Indirect not 100%	Company Name	Jurisdiction	Registered Office
	SEGRO (Birmingham) Limited**	England and Wales	1 New Burlington Place, London, W1S 2HR, United Kingdom
	SEGRO (Blanc Mesnil) SARL	France	20 Rue Brunel, 75017, Paris, France
	SEGRO (Bonded Stores) Limited**	England and Wales	1 New Burlington Place, London, W1S 2HR, United Kingdom
	SEGRO (Brackmills) Limited**	England and Wales	1 New Burlington Place, London, W1S 2HR, United Kingdom
	SEGRO (Bracknell) Limited**	England and Wales	1 New Burlington Place, London, W1S 2HR, United Kingdom
	SEGRO (Clapham North) Limited**	England and Wales	1 New Burlington Place, London, W1S 2HR, United Kingdom
	SEGRO

% effective holding if Direct/ Company Name	Jurisdiction	not 100% Indirect	Registered Office
SEGRO (EMG Rail Freight Terminal) Limited**	England	and Indirect	1 New Burlington Place, London, Wales W1S 2HR, United Kingdom
SEGRO (EMG Unit 1) Limited**	England	and Indirect	1 New Burlington Place, London, Wales W1S 2HR, United Kingdom
SEGRO (EMG Unit 2) Limited**	England	and Indirect	1 New Burlington Place, London, Wales W1S 2HR, United Kingdom
SEGRO (EMG Unit 4) Limited**	England	and Indirect	1 New Burlington Place, London, Wales W1S 2HR, United Kingdom
SEGRO (EMG Unit 8) Limited**	England	and Indirect	1 New Burlington Place, London, Wales W1S 2HR, United Kingdom
SEGRO (EMG Unit 11) Limited**	England	and Indirect	1 New Burlington Place, London, Wales W1S 2HR, United Kingdom
SEGRO (EMG Unit 12) Limited**	England	and Indirect	1 New Burlington Place, London, Wales W1S 2HR, United Kingdom
SEGRO (Faggs Road) Limited**	England	and Indirect	1 New Burlington Place, London, Wales W1S 2HR, United Kingdom
SEGRO (Fairways Industrial Estate) Limited**	England	and Indirect	1 New Burlington Place, London, Wales W1S 2HR, United Kingdom
SEGRO (Gatwick) Limited**	England	and Indirect	1 New Burlington Place, London, Wales W1S 2HR, United Kingdom
SEGRO (GL) Limited**	England	and Indirect	1 New Burlington Place, London, Wales W1S 2HR, United Kingdom
SEGRO (Grange Park) Limited**	England	and Indirect	1 New Burlington Place, London, Wales W1S 2HR, United Kingdom
SEGRO (Great Cambridge Industrial Estate) Limited**	England	and Indirect	1 New Burlington Place, London, Wales W1S 2HR, United Kingdom
SEGRO (Grendon) 1 Limited**	England	and Indirect	1 New Burlington Place, London, Wales W1S 2HR, United Kingdom
SEGRO (Hatton Farm Site A) Limited**	England	and Indirect	1 New Burlington Place, London, Wales W1S 2HR, United Kingdom
SEGRO (Hatton Farm Site B) Limited**	England	and Indirect	1 New Burlington Place, London, Wales W1S 2HR, United Kingdom
SEGRO (Hatton Farm Site C) Limited**	England	and Indirect	1 New Burlington Place, London, Wales W1S 2HR, United Kingdom
SEGRO (Hayes) Limited**	England	and Indirect	1 New Burlington Place, London, Wales W1S 2HR, United Kingdom
SEGRO (Heathrow Cargo Area) Limited**	England	and Indirect	1 New Burlington Place, London, Wales W1S 2HR, United Kingdom
SEGRO (Heathrow International) Limited**	England	and Indirect	1 New Burlington Place, London, Wales W1S 2HR, United Kingdom

175 | SEGRO plc Annual Report & Accounts 2025 Overview Strategic Report Governance Financial Statements Further Information Notes to the Financial Statements continued For the year ended 31 December 2025

% effective holding if Direct/ Company Name	Jurisdiction	not 100% Indirect	Registered Office
SEGRO (Iver 1) Limited**	England	and Indirect	1 New Burlington Place, London, Wales W1S 2HR, United Kingdom
SEGRO (Junction 15) Limited	England	and Indirect	Two Friargate, Station Square, Wales Coventry, England, CV1 2GN
SEGRO (Kettering) Limited**	England	and Indirect	1 New Burlington Place, London, Wales W1S 2HR, United Kingdom
SEGRO (Lee Park Distribution) Limited**	England	and Indirect	1 New Burlington Place, London, Wales W1S 2HR, United Kingdom
SEGRO (New Cross Business Centre) Limited**	England	and Indirect	1 New Burlington Place, London, Wales W1S 2HR, United Kingdom
SEGRO (Newport Pagnell) Limited**	England	and Indirect	1 New Burlington Place, London, Wales W1S 2HR, United Kingdom
SEGRO (NFTE & Mercury) Limited**	England	and Indirect	1 New Burlington Place, London, Wales W1S 2HR, United Kingdom
SEGRO (Northampton Gateway Management Company) Limited 2	England	and Indirect	1 New Burlington Place, London, Wales W1S 2HR, United Kingdom
SEGRO (Parc des Damiers) SAS	France	Indirect	20 Rue Brunel, 75017, Paris, France
SEGRO (Perivale Park) Limited**	England	and Indirect	1 New Burlington Place, London, Wales W1S 2HR, United Kingdom
SEGRO (Plot 4 Northampton) Limited	England	and Indirect	1 New Burlington Place, London, Wales W1S 2HR, United Kingdom
SEGRO (Plot 7 Northampton) Limited**	England	and Indirect	1 New Burlington Place, London, Wales W1S 2HR, United Kingdom
SEGRO (Plot 9 SmartParc) Limited 2	England	and Indirect	1 New Burlington Place, London, Wales W1S 2HR, United Kingdom
SEGRO (Poyle 14) Limited**	England	and Indirect	1 New Burlington Place, London, Wales W1S 2HR, United Kingdom
SEGRO (Purfleet) Limited**	England	and Indirect	1 New Burlington Place, London, Wales W1S 2HR, United Kingdom
SEGRO (Radlett) Limited	England	and Indirect	1 New Burlington Place, London, Wales W1S 2HR, United Kingdom
SEGRO (Rainham 1) Limited**	England	and Indirect	1 New Burlington Place, London, Wales W1S 2HR, United Kingdom
SEGRO (Rainham 2) Limited**	England	and Indirect	1 New Burlington Place, London, Wales W1S 2HR, United Kingdom
SEGRO (Rainham, Enterprise 1) Limited**	England	and Indirect	1 New Burlington Place, London, Wales W1S 2HR, United Kingdom
SEGRO (Rainham, Enterprise 2) Limited**	England	and Indirect	1 New Burlington Place, London, Wales W1S 2HR, United Kingdom

% effective holding if Direct/ Company Name	Jurisdiction	not 100% Indirect	Registered Office
SEGRO (Reading) Limited 5 , 6	England	and Indirect	1 New Burlington Place, London, Wales W1S 2HR, United Kingdom
SEGRO (Rockware Avenue) Limited**	England	and Indirect	1 New Burlington Place, London, Wales W1S 2HR, United Kingdom
SEGRO (Rugby Gateway 1) Limited**	England	and Indirect	1 New Burlington Place, London, Wales W1S 2HR, United Kingdom
SEGRO (Rugby Gateway 2) Limited**	England	and Indirect	1 New Burlington Place, London, Wales W1S 2HR, United Kingdom
SEGRO (Rugby Gateway 3) Limited**	England	and Indirect	1 New Burlington Place, London, Wales W1S 2HR, United Kingdom
SEGRO (Rugby Gateway 4) Limited**	England	and Indirect	1 New Burlington Place, London, Wales W1S 2HR, United Kingdom
SEGRO (Rugby Gateway 5) Limited**	England	and Indirect	1 New Burlington Place, London, Wales W1S 2HR, United Kingdom
SEGRO (Skyline) Limited**	England	and Indirect	1 New Burlington Place, London, Wales W1S 2HR, United Kingdom
SEGRO (Spacewaye Park) Limited**	England	and Indirect	1 New Burlington Place, London, Wales W1S 2HR, United Kingdom
SEGRO (Spain Energy) S.L.	Spain	Indirect	Avenida Diagonal, 467 – 08036, Barcelona, Spain
SEGRO (Stansted Cargo) Limited**	England	and Indirect	1 New Burlington Place, London, Wales W1S 2HR, United Kingdom
SEGRO (Stansted Fedex) Limited**	England	and Indirect	1 New Burlington Place, London, Wales W1S 2HR, United Kingdom
SEGRO (The Portal) Limited**	England	and Indirect	1 New Burlington Place, London, Wales W1S 2HR, United Kingdom
SEGRO (Tilbury 2) Limited**	England	and Indirect	1 New Burlington Place, London, Wales W1S 2HR, United Kingdom
SEGRO (Tottenham) Limited**	England	and Indirect	1 New Burlington Place, London, Wales W1S 2HR, United Kingdom
SEGRO (Tudor) Limited**	England	and Indirect	1 New Burlington Place, London, Wales W1S 2HR, United Kingdom
SEGRO (UK Energy) Limited**	England	and Indirect	1 New Burlington Place, London, Wales W1S 2HR, United Kingdom
SEGRO (Victoria Industrial Estate) Limited**	England	and Indirect	1 New Burlington Place, London, Wales W1S 2HR, United Kingdom
SEGRO (Waltham Assets) Limited**	England	and Indirect	1 New Burlington Place, London, Wales W1S 2HR, United Kingdom
SEGRO (Wapping) Limited**	England	and Indirect	1 New Burlington Place, London, Wales W1S2HR, United Kingdom

176 | SEGRO plc Annual Report & Accounts 2025 Overview Strategic Report Governance Financial Statements Further Information Notes to the Financial Statements continued For the year ended 31 December 2025

% effective holding if Direct/ Company Name	Jurisdiction	not 100% Indirect	Registered Office
SEGRO (Watchmoor) Limited**	England	and Indirect	1 New Burlington Place, London , Wales W1S 2HR, United Kingdom
SEGRO (Welham Green) Limited**	England	and Indirect	1 New Burlington Place, London , Wales W1S 2HR, United Kingdom
SEGRO (Westway Estate) Limited**	England	and Indirect	1 New Burlington Place, London , Wales W1S 2HR, United Kingdom
SEGRO Achtzehnte Grundbesitz GmbH	Germany	Indirect	Fichtenstrasse 33, 40233, Düsseldorf, Germany
SEGRO Administration Limited	England	Direct	1 New Burlington Place, London , Wales W1S 2HR, United Kingdom
SEGRO Advisory Services S.R.L.			Italy Indirect Strada 3 Palazzo B3, 20057 Assago Milanofiori, Milan, Italy SEGRO APP 1 Limited England and Indirect 1 New Burlington Place, London , Wales W1S 2HR, United Kingdom SEGRO APP 2 Limited England and Indirect 1 New Burlington Place, London , Wales W1S 2HR, United Kingdom SEGRO APP 3 Limited England and Indirect 1 New Burlington Place, London , Wales W1S 2HR, United Kingdom SEGRO APP 4 Limited England and Indirect 1 New Burlington Place, London , Wales W1S 2HR, United Kingdom SEGRO APP Management Limited England and Indirect 1 New Burlington Place, London , Wales W1S 2HR, United Kingdom SEGRO Asset Management England and Indirect 1 New Burlington Place, London , Limited Wales W1S 2HR, United Kingdom SEGRO B.V. Netherlands Indirect Gustav Mahlerplein 62, ITO- toren, 8th Floor, 1082MA SEGRO Belgium NV Belgium Indirect Boulevard Louis Schmidt 87, 1040 Etterbeek, Belgium SEGRO Benelux 2 B.V. Netherlands Indirect Gustav Mahlerplein 62, ITO- toren, 8th Floor, 1082MA SEGRO Benelux B.V. 7 Netherlands Indirect Gustav Mahlerplein 62, ITO- toren, 8th Floor, 1082MA SEGRO Bobigny SCI France Indirect 20 Rue Brunel, 75017, Paris, France SEGRO Bourget France Indirect 20 Rue Brunel, 75017, Paris, France SEGRO Capital S.á r.l. Luxembourg Indirect 35-37 Avenue de la Liberté, L-1931, Luxembourg SEGRO CHUSA Limited** England and Indirect 1 New Burlington Place, London , Wales W1S 2HR, United Kingdom

% effective holding if Direct/	Company Name	Jurisdiction	not 100% Indirect	Registered Office
	SEGRO CL1 SCI	France	Indirect	20 Rue Brunel, 75017, Paris, France
	SEGRO Croydon (Mitcham) Limited**	England and Wales	Indirect	1 New Burlington Place, London, W1S 2HR, United Kingdom
	SEGRO Czech Republic s.r.o.	Czech Republic	Indirect	Praha 1, Na příkopě 393/11, Staré Město, PSČ 110 00, Czech Republic
	SEGRO Dortmund GmbH	Germany	Indirect	Fichtenstrasse 33, 40233, Düsseldorf, Germany
	SEGRO Dreiundzwanzigste Grundbesitz GmbH	Germany	Indirect	Fichtenstrasse 33, 40233, Düsseldorf, Germany
	SEGRO Dritte Grundbesitz GmbH	Germany	Indirect	Fichtenstrasse 33, 40233, Düsseldorf, Germany
	SEGRO Eindhoven I B.V.	Netherlands	Indirect	2 Rue des Gaulois L-1618 Luxembourg
	SEGRO Einundzwanzigste Grundbesitz GmbH	Germany	Indirect	Fichtenstrasse 33, 40233, Düsseldorf, Germany
	SEGRO Elfte Grundbesitz GmbH	Germany	Indirect	Fichtenstrasse 33, 40233, Düsseldorf, Germany
	SEGRO Erste Grundbesitz GmbH	Germany	Indirect	Fichtenstrasse 33, 40233, Düsseldorf, Germany
	SEGRO European Logistics Partnership S.á r.l.	Luxembourg	50% Indirect	35-37 Avenue de la Liberté, L-1931, Luxembourg
	SEGRO Finance Limited	England and Wales	Direct	1 New Burlington Place, London, W1S 2HR, United Kingdom
	SEGRO Fixtures GmbH	Germany	Indirect	Fichtenstrasse 33, 40233, Düsseldorf, Germany
	SEGRO France Energy SAS	France	Indirect	20 Rue Brunel, 75017, Paris, France
	SEGRO France SA	France	Indirect	20 Rue Brunel, 75017, Paris, France
	SEGRO Fünfte Grundbesitz GmbH	Germany	Indirect	Fichtenstrasse 33, 40233, Düsseldorf, Germany
	SEGRO Fünfzehnte Grundbesitz GmbH	Germany	Indirect	Fichtenstrasse 33, 40233, Düsseldorf, Germany
	SEGRO Gennevilliers SCI	France	Indirect	20 Rue Brunel, 75017, Paris, France
	SEGRO Germany GmbH	Germany	Indirect	Fichtenstrasse 33, 40233, Düsseldorf, Germany
	SEGRO Gobelins SCI	France	Indirect	20 Rue Brunel, 75017, Paris, France

177 | SEGRO plc Annual Report & Accounts 2025 Overview Strategic Report Governance Financial Statements Further Information Notes to the Financial Statements continued For the year ended 31 December 2025

% effective holding if Direct/	Company Name	Jurisdiction	not 100% Indirect	Registered Office
	SEGRO Heerlen I B.V.	Netherlands	Indirect	Gustav Mahlerplein 62, 1082MA, Amsterdam, Netherlands
	SEGRO Holdings France SAS	France	Indirect	20 Rue Brunel, 75017, Paris, France
	SEGRO Industrial Estates Limited**	England and Wales	Indirect	1 New Burlington Place, London, W1S 2HR, United Kingdom
	SEGRO Insurance Limited	Isle of Man	Direct	Third Floor, St George’s Court, Upper Church Street, Douglas,
	SEGRO Investments Limited**	England and Wales	Indirect	1 New Burlington Place, London, W1S 2HR, United Kingdom
	SEGRO Investments Spain S.L.	Spain	Direct	Avenida Diagonal, 467 – 08036, Barcelona, Spain
	SEGRO Italy S.R.L	Italy	Indirect	Strada 3 Palazzo B3, 20057 Assago Milanofiori, Milan, Italy
	SEGRO Italy ER 1 S.R.L.	Italy	Indirect	Strada 3 Palazzo B3, 20057 Assago Milanofiori, Milan, Italy
	SEGRO Italy ER 2 S.R.L.	Italy	Indirect	Strada 3 Palazzo B3, 20057 Assago Milanofiori, Milan, Italy
	SEGRO Italy ER 4 S.R.L.	Italy	Indirect	Strada 3 Palazzo B3, 20057 Assago Milanofiori, Milan, Italy
	SEGRO Italy ER 5 S.R.L.	Italy	Indirect	Strada 3 Palazzo B3, 20057 Assago Milanofiori, Milan, Italy
	SEGRO Logistics Nord SCI	France	Indirect	20 Rue Brunel, 75017, Paris, France
	SEGRO Logistics Park Aulnay SCI	France	Indirect	20 Rue Brunel, 75017, Paris, France
	SEGRO Logistics Sud SCI	France	Indirect	20 Rue Brunel, 75017, Paris, France
	SEGRO Luge S.à r.l.	Luxembourg	Indirect	35 Avenue de la Liberté, L-1931, Luxembourg
	SEGRO Luxembourg S.à r.l.	Luxembourg	Indirect	35-37 Avenue de la Liberté, L-1931, Luxembourg
	SEGRO Management NV	Belgium	Indirect	Boulevard Louis Schmidt 87, 1040 Etterbeek, Belgium
	SEGRO Netherlands B.V.	Netherlands	Indirect	Gustav Mahlerplein 62, ITO- toren, 8th Floor, 1082MA
	SEGRO Netherlands Holding B.V.	Netherlands	Indirect	Gustav Mahlerplein 62, ITO- toren, 8th Floor, 1082MS
	SEGRO Netherlands Holding B.V. (UK branch)	England and Wales	Indirect	1 New Burlington Place, London, W1S 2HR, United Kingdom

% effective holding if Direct/	Company Name	Jurisdiction	not 100% Indirect	Registered Office
	SEGRO Neunzehnte Grundbesitz GmbH	Germany	Indirect	Fichtenstrasse 33, 40233, Düsseldorf, Germany
	SEGRO Oosterhout I B.V.	Netherlands	Indirect	Gustav Mahlerplein 62, 1082MA, Amsterdam, Netherlands
	SEGRO Overseas Holdings Limited	England and Wales	Direct	1 New Burlington Place, London, W1S 2HR, United Kingdom
	SEGRO Parc des Petits Carreaux	France	Indirect	20 Rue Brunel, 75017, Paris, France
	SEGRO plc French Branch	France	Direct	20 Rue Brunel, 75017, Paris, France
	SEGRO Plessis SCI	France	Indirect	20 Rue Brunel, 75017, Paris, France
	SEGRO Poland Sp z.o.o.	Poland	Indirect	Pl. Andersa 3, 61-894 Poznań, Poland
	SEGRO Properties Limited	England and Wales	Direct	1 New Burlington Place, London, W1S 2HR, United Kingdom
	SEGRO Properties Spain S.L.	Spain	Direct	Avenida Diagonal, 467 – 08036, Barcelona, Spain
	SEGRO Pure Premier Park Data Centre Limited	England and Wales	50% Indirect	5 Fleet Place, London, EC4M 7RD
	SEGRO Pure Premier Park Data Centre Holdings Limited	England and Wales	50% Indirect	5 Fleet Place, London, EC4M 7RD
	SEGRO Reisholz GmbH	Germany	Indirect	Fichtenstrasse 33, 40233, Düsseldorf, Germany
	SEGRO Rugby LLP*** ,3	England and Wales	Indirect	1 New Burlington Place, London, W1S 2HR, United Kingdom
	SEGRO Sechste Grundbesitz GmbH	Germany	Indirect	Fichtenstrasse 33, 40233, Düsseldorf, Germany
	SEGRO Sechsundzwanzigste Grundbesitz GmbH	Germany	Indirect	Fichtenstrasse 33, 40233, Düsseldorf, Germany
	SEGRO Sechzehnte Grundbesitz GmbH	Germany	Indirect	Fichtenstrasse 33, 40233, Düsseldorf, Germany
	SEGRO Siebte Grundbesitz GmbH	Germany	Indirect	Fichtenstrasse 33, 40233, Düsseldorf, Germany
	SEGRO Siebzehnte Grundbesitz GmbH	Germany	Indirect	Fichtenstrasse 33, 40233, Düsseldorf, Germany
	SEGRO Shelf I B.V.	Netherlands	Indirect	Gustav Mahlerplein 62, ITO- toren, 8th Floor, 1082MS
	SEGRO Slough Spare Limited**	England and Wales	Indirect	1 New Burlington Place, London, W1S 2HR, United Kingdom

178 | SEGRO plc Annual Report & Accounts 2025 Overview Strategic Report Governance Financial Statements Further Information Notes to the Financial Statements continued For the year ended 31 December 2025

% effective holding if Direct/	Company Name	Jurisdiction	not 100% Indirect	Registered Office
	SEGRO Spain Management S.L.	Spain	Indirect	Avenida Diagonal, 467 – 08036, Barcelona, Spain
	SEGRO Spain Spare 1 S.L.	Spain	Direct	Avenida Diagonal, 467 – 08036, Barcelona, Spain
	SEGRO Spain Spare 2 S.L.U	Spain	Direct	Avenida Diagonal, 467 – 08036, Barcelona, Spain
	SEGRO Spain Spare 3 S.L.	Spain	Direct	Avenida Diagonal, 467 – 08036, Barcelona, Spain
	SEGRO Spare 1 Limited**	England and Wales	Indirect	1 New Burlington Place, London, W1S 2HR, United Kingdom
	SEGRO STE Limited	England and Wales	Indirect	1 New Burlington Place, London, W1S 2HR, United Kingdom
	SEGRO Tilliers SCI	France	Indirect	20 Rue Brunel, 75017, Paris, France
	SEGRO Trading (France) SNC	France	Indirect	20 Rue Brunel, 75017, Paris, France
	SEGRO Urban Logistics LR1 SCI	France	Indirect	20 Rue Brunel, 75017, Paris, France
	SEGRO Urban Logistics MR1 SCI	France	Indirect	20 Rue Brunel, 75017, Paris, France
	SEGRO Urban Logistics PR1 SCI	France	Indirect	20 Rue Brunel, 75017, Paris, France
	SEGRO Urban Logistics PR2 SCI	France	Indirect	20 Rue Brunel, 75017, Paris, France
	SEGRO Urban Logistics PR3 SCI	France	Indirect	20 Rue Brunel, 75017, Paris, France
	SEGRO Vierte Grundbesitz GmbH	Germany	Indirect	Fichtenstrasse 33, 40233, Düsseldorf, Germany
	SEGRO Vierundzwanzigste Grundbesitz GmbH	Germany	Indirect	Fichtenstrasse 33, 40233, Düsseldorf, Germany
	SEGRO V-Park Grand Union LLP 3	England and Wales	50% Indirect	1 New Burlington Place, London, W1S 2HR, United Kingdom
	SEGRO Wissous SCI	France	Indirect	20 Rue Brunel, 75017, Paris, France
	SEGRO Zwanzigste Grundbesitz GmbH	Germany	Indirect	Fichtenstrasse 33, 40233, Düsseldorf, Germany
	SEGRO Zweite Grundbesitz GmbH	Germany	Indirect	Fichtenstrasse 33, 40233, Düsseldorf, Germany
	SEGRO Zweiundzwanzigste Grundbesitz GmbH	Germany	Indirect	Fichtenstrasse 33, 40233, Düsseldorf, Germany

% effective holding if Direct/	Company Name	Jurisdiction	not 100% Indirect	Registered Office
	SELP (Alpha Holdings) S.á r.l.	Luxembourg	50% Indirect	2 Rue des Gaulois L-1618 Luxembourg
	SELP (Alpha JV) S.á r.l.	Luxembourg	50% Indirect	2 Rue des Gaulois L-1618 Luxembourg
	SELP Finance S.á r.l.
Luxembourg 50% Indirect 35-37 Avenue de la Liberté, L-1931, Luxembourg SELP Management Limited
9 England and Indirect 1 New Burlington Place, London, Wales W1S 2HR, United Kingdom
Slough Trading Estate Limited England and Direct 1 New Burlington Place, London, Wales W1S 2HR, United Kingdom
Smartparc SEGRO Spondon England and Indirect 1 New Burlington Place, London, Limited Wales W1S 2HR, United Kingdom
Steamhouse Group Limited** England and Indirect 1 New Burlington Place, London, Wales W1S 2HR, United Kingdom
Tenedor S.R.L. Italy Indirect Strada 3 Palazzo B3, 20057 Assago Milanofiori, Milan, Italy
The UK Logistics (Nominee 1) England and Indirect 1 New Burlington Place, London, Limited 2 Wales W1S 2HR, United Kingdom
The UK Logistics (Nominee 2) England and Indirect 1 New Burlington Place, London, Limited 2 Wales W1S 2HR, United Kingdom
The UK Logistics General Partner England and Indirect 1 New Burlington Place, London, Limited** Wales W1S 2HR, United Kingdom
The UK Logistics Limited England and Indirect 1 New Burlington Place, London, Partnership 3 Wales W1S 2HR, United Kingdom
Trafford Park 1 Limited Guernsey Indirect Ground Floor, Plaza House, Admiral Park, St Peter Port,
UK Logistics Fund Unit Trust Jersey Indirect 44 Esplanade, St. Helier, JE4 9WG, Jersey
UK Logistics Properties No 1 Unit Jersey Indirect 44 Esplanade, St. Helier, JE4 Trust 9WG, Jersey
UK Logistics Properties No 2 Unit Jersey Indirect 44 Esplanade, St. Helier, JE4 Trust 9WG, Jersey
UK Logistics Trustees Limited Jersey Indirect Ogier House, The Esplanade, St Helier, JE4 9WG, Jersey
UK Property Unit Trust No. 41 Jersey Indirect 47 Esplanade, St Helier, JE1 0BD, Jersey
UK Property Unit Trust No. 42 Jersey Indirect 47 Esplanade, St Helier, JE1 0BD, Jersey
179	SEGRO plc Annual Report & Accounts 2025 Overview Strategic Report Governance Financial Statements Further Information Notes to the Financial Statements continued For the year ended 31 December 2025

Company Name	Jurisdiction	% effective holding if Direct/ Indirect	Registered Office
UK Property Unit Trust No. 43	Jersey	Indirect	47 Esplanade, St Helier, JE1 0BD, Jersey
UK Property Unit Trust No. 44	Jersey	Indirect	47 Esplanade, St Helier, JE1 0BD, Jersey
UK Property Unit Trust No. 45	Jersey	Indirect	47 Esplanade, St Helier, JE1 0BD, Jersey
Unitair General Partner Limited**	England and Wales	Indirect	1 New Burlington Place, London, W1S 2HR, United Kingdom
Unitair Limited Partnership***	England and Wales	Indirect	1 New Burlington Place, London, W1S 2HR, United Kingdom
Vailog France SCI	France	Indirect	20 Rue Brunel, 75017, Paris, France
Vimercate DC S.R.L.	Italy	Indirect	Strada 3 Palazzo B3, 20057 Assago Milanofiori, Milan, Italy
Woodside GP Limited 2	England and Wales	33.33% Indirect	1 New Burlington Place, London, W1S 2HR, United Kingdom
Zinc One S.R.L.	Italy	Indirect	Strada 3 Palazzo B3, 20057 Assago Milanofiori, Milan, Italy
Zinc Seven S.R.L	Italy	Indirect	Strada 3 Palazzo B3, 20057 Assago Milanofiori, Milan, Italy
Zinc Six S.R.L.	Italy	Indirect	Strada 3 Palazzo B3, 20057 Assago Milanofiori, Milan, Italy

1 Company is in liquidation as at 31 December 2025.
2 Company is entitled to exemption from audit under section 480 of the Companies Act 2006 relating to dormant companies.
3 Partnerships and Limited Liability Partnerships (LLPs) do not have a share capital and unless otherwise stated, the Group holds 100 per cent interest in these entities.
4 Companies limited by guarantee do not have a share capital and unless otherwise stated the Group holds 100 per cent interest in these entities.
5 Ownership held in class A and B shares.
6 Ownership held in Ordinary and Deferred shares.
7 Ownership held in class G shares, K shares, S shares and Preference shares.
8 There are five external members of Dagenham Park Management Company Limited. All members are liable up to the value of £1.00.
9 SELP Management Limited is an appointed representative of Langham Hall Fund Management LLP, which is authorised and regulated by the Financial Conduct Authority.

180 | SEGRO plc Annual Report & Accounts 2025 Overview Strategic Report Governance Financial Statements Further Information Notes to the Financial Statements continued For the year ended 31 December 2025 Supplementary Notes Not Part of Audited Financial Statements

Table 1: EPRA performance measures summary

	2025		2024
	£m	Pence per share	£m	Pence per share
EPRA earnings	Table 4	495	36.6	458
EPRA NTA	Table 5	12,537	925	12,287
EPRA NRV	Table 5	13,827	1,020	13,477
EPRA NDV	Table 5	12,590	929	12,354
EPRA LTV	Table 6	33.6%		30.6%
EPRA net initial yield	Table 7	4.2%		4.1%
EPRA topped-up net initial yield	Table 7	4.6%		4.4%
EPRA vacancy rate	Table 8	5.1%		6.0%
EPRA cost ratio (including vacant property costs)	Table 9	20.4%		21.7%
EPRA cost ratio (excluding vacant property costs)	Table 9	17.5%		19.1%

(Adjustments set out in the EPRA BPR Guidelines that are not applicable and have a zero value are not disclosed in the EPRA tables.)

Table 2: Income Statement, proportionally consolidated

Notes	2025			2024
	Group £m	Joint ventures £m	Total £m	Group £m	Joint ventures £m	Total £m
Gross rental income	2,7	637	142	779	592	137
Property operating expenses	2,7	(94)	(10)	(104)	(92)	(9)
Net rental income		543	132	675	500	128
Joint venture management fee income	1	2,7	25	(12)	13	26
Management and development fee income	2,7	3	2	5	6	2
Net service charge and other income	2,7	1	—	1	(1)	—
Administrative expenses	2,7	(73)	(3)	(76)	(76)	(2)
Adjusted operating profit before interest and tax		499	119	618	455	116
Net finance costs (including adjustments)	2,7	(68)	(26)	(94)	(68)	(22)
Adjusted profit before tax		431	93	524	387	94
Tax on Adjusted profit	2,7	(14)	(15)	(29)	(12)	(11)
Adjusted/EPRA earnings after tax		417	78	495	375	83
Number of shares, million	12	1,352.5			1,328.7
Adjusted/EPRA EPS, pence per share			36.6			34.5
Number of shares, million	12	1,355.3			1,332.0
Adjusted/EPRA EPS, pence per share – diluted			36.5			34.4

1 Joint venture management fee income includes the cost of such fees borne by the joint ventures, which is shown in Note 7(i) within net rental income.
2 Group net debt : EBITDA ratio as defined in the glossary was 8.4 times at 31 December 2025 (2024: 8.6 times). Group net debt being £4,840 million (2024: £4,244 million), per Note 16. Group EBITDA being £579 million (2024: £496 million), which takes Adjusted operating profit before interest and tax, less share of joint ventures’ Adjusted profit, of £499 million (2024: £455 million) shown in the table above, adding back depreciation and amortisation charges of £17 million (2024: £12 million) and includes dividends received from joint ventures of £63 million (2024: £29 million).

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Table 3: Balance Sheet, proportionally consolidated

Notes	2025			2024
	Group £m	Joint ventures £m	Total £m	Group £m	Joint ventures £m	Total £m
Investment properties	13,7	15,998	3,042	19,040	15,303	2,526
Trading properties	1	—	1	6	—	6
Total properties		15,999	3,042	19,041	15,309	2,526
Investment in joint ventures	7	1,715	(1,715)	—	1,552	(1,552)
Other net liabilities		(601)	(248)	(849)	(568)	(218)
Net borrowings	16,7	(4,840)	(1,079)	(5,919)	(4,244)	(756)
Total equity	12,2	73	—	12,273	12,049	—
EPRA adjustments	12	264			238
Adjusted NAV	12	12,537			12,287
Number of shares, million	12	1,355.0			1,355.3
Adjusted NAV, pence per share	12	925			907

The portfolio valuation surplus of 1.0 per cent shown on page 29 of the Strategic Report cannot be directly derived from the Financial Statements and is calculated to be comparable with published MSCI Real Estate indices against which SEGRO is measured. Based on the Financial Statements there is a valuation surplus of £91 million (see Note 8(ii)) and property value of £18,962 million (see Note 25) giving a valuation surplus of 0.5 per cent. The primary differences are that the portfolio valuation surplus shown on page 29 of £196 million excludes the impact of rent free incentives (£41 million, 0.2 per cent) and capitalised interest (£64 million, 0.3 per cent). Total assets under management of £22,004 million (2024: £20,296 million) includes Group total properties of £15,920 million (2024: £15,244 million) (see Note 25) and 100 per cent of total properties owned by joint ventures of £6,084 million (2024: £5,052) (see Note 7(ii)).

Table 4: EPRA Earnings

Notes	2025 Group £m	2024 Group £m
Earnings per IFRS income statement	551	594
Adjustments to calculate EPRA earnings, exclude:
Valuation surplus on investment properties	8(i)	(54)
Profit on sale of investment properties	8(i)	(1)
Profit on sale of trading properties	8(i)	(2)
Tax on profits on disposals		1
Cost of early close out debt	9	—
Net fair value loss/(gain) on interest rate swaps and other derivatives	9	35
Deferred and current tax in respect of EPRA adjustments		1
Adjustments to the share of profit from joint ventures after tax	7	(31)
Solar panel depreciation	2	2
EPRA earnings		495
Basic number of shares, million	12	1,352.5
EPRA earnings per share (EPS) (pence)		36.6
Company specific adjustments:
Non-EPRA adjustments	2	—
Adjusted earnings		495
Adjusted EPS (pence)	12	36.6

1 Total tax credit in respect of adjustments per Note 2 of £5 million (2024: £30 million charge) comprises tax on profits on disposals of £nil (2024: £21 million charge) and a deferred and current tax credit of £5 million (2024: £9 million charge).

181 | SEGRO plc Annual Report & Accounts 2025 Overview Strategic Report Governance Financial Statements Further Information Notes to the Financial Statements continued For the year ended 31 December 2025The updated EPRA BPR Guidelines on EPRA earnings are applicable for reporting periods starting after 1 October 2024 and have been applied in calculating EPRA earnings for the year ended 31 December 2025. Solar depreciation is shown outside of Adjusted profit in line with the updated Guidelines, there is no impact on the prior year comparative.

182 | SEGRO plc Annual Report & Accounts 2025
Overview Strategic Report Governance Financial Statements Further Information Notes to the Financial Statements continued

For the year ended 31 December 2025
Supplementary Notes Not Part of Audited Financial Statements continued

Table 5: EPRA Net asset measures

The European Public Real Estate Association (EPRA) best practice recommendations (BPR) for financial disclosures by public real estate companies sets out three net asset value measures: EPRA net tangible assets (NTA), EPRA net reinstatement value (NRV), and EPRA net disposal value (NDV). The EPRA net tangible assets (NTA) metric is considered to be most consistent with the nature of SEGRO’s business as a UK REIT providing long-term progressive and sustainable returns. EPRA NTA acts as the primary measure of net asset value and is also referred to as Adjusted Net Asset Value (or Adjusted NAV). A reconciliation of the three EPRA NAV metrics from IFRS NAV is shown in the table below.

As at 31 December 2025

EPRA measures	EPRA NTA £m	EPRA NRV £m	EPRA NDV £m
Equity attributable to ordinary shareholders	12,273	12,273	12,273
Fair value adjustment in respect of interest rate derivatives – Group	123	123	—
Fair value adjustment in respect of trading properties – Group	1	1	1
Deferred tax in respect of depreciation and valuation surpluses – Group	196	192	—
Deferred tax in respect of depreciation and valuation surpluses – Joint ventures	188	176	—
Intangible assets	(44)	—	—
Fair value adjustment in respect of debt – Group	—	—	308
Fair value adjustment in respect of debt – Joint ventures	—	—	8
Real estate transfer tax	2	—	1,062
Net assets	12,537	13,827	12,590
Diluted shares (million)	1,355.0	1,355.0	1,355.0
Diluted net assets per share	925	1,020	929

1 50 per cent of deferred tax in respect of depreciation and valuation surpluses has been excluded in calculating EPRA NTA in line with option 3 of EPRA BPR Guidelines.
2 EPRA NTA and EPRA NDV reflect IFRS values, which are net of purchasers’ costs. Purchasers’ costs are added back when calculating EPRA NRV.

As at 31 December 2024

EPRA measures	EPRA NTA £m	EPRA NRV £m	EPRA NDV £m
Equity attributable to ordinary shareholders	12,049	12,049	12,049
Fair value adjustment in respect of interest rate derivatives – Group	95	95	—
Fair value adjustment in respect of trading properties – Group	2	2	2
Deferred tax in respect of depreciation and valuation surpluses – Group	190	179	—
Deferred tax in respect of depreciation and valuation surpluses – Joint ventures	188	176	—
Intangible assets	(37)	—	—
Fair value adjustment in respect of debt – Group	—	—	283
Fair value adjustment in respect of debt – Joint ventures	—	—	20
Real estate transfer tax	2	—	976
Net assets	12,287	13,477	12,354
Diluted shares (million)	1,355.3	1,355.3	1,355.3
Diluted net assets per share	907	994	912

1 50 per cent of deferred tax in respect of depreciation and valuation surpluses has been excluded in calculating EPRA NTA in line with option 3 of EPRA BPR Guidelines.
2 EPRA NTA and EPRA NDV reflect IFRS values, which are net of purchasers’ costs. Purchasers’ costs are added back when calculating EPRA NRV.

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For the year ended 31 December 2025
Supplementary Notes Not Part of Audited Financial Statements continued

Table 6: EPRA LTV, proportional consolidation

	2025			2024
Notes	Group £m	Joint ventures £m	Total £m	Group £m	Joint ventures £m	Total £m
Borrowings 1,2	1,817	139	1,956	1,564	3	1,567
Bonds 1,2	3,170	978	4,148	3,077	930	4,007
Exclude: Cash and cash equivalents	16	(111)	(32)	(143)	(363)	(173)
Net debt (before capitalised finance costs) (a)	4,876	1,085	5,961	4,278	760	5,038
Foreign currency derivatives 17	(8)	—	(8)	(27)	—	(27)
Net payables 3	397	74	471	408	49	457
Adjusted net debt (b)	5,265	1,159	6,424	4,659	809	5,468
Investment properties at fair value (excluding head lease ROU asset) 13	15,918	3,042	18,960	15,236	2,526	17,762
Trading properties	1	—	1	6	—	6
Total property value (c)	15,919	3,042	18,961	15,242	2,526	17,768
Head lease ROU asset 13	80	—	80	67	—	67
Unrecognised valuation surplus on trading properties	1	—	1	2	—	2
Other interest in property 21	1	22	17	—	17
Intangibles	44	—	44	37	—	37
Adjusted total property value (d)	16,065	3,043	19,108	15,365	2,526	17,891
LTV (a/c)	30.6%	31.4%	28.1%	28.4%
EPRA LTV (b/d)	32.8%	33.6%	30.3%	30.6%

1 Total borrowings as at 31 December 2025 per Note 16 of £4,951 million (2024: £4,607 million) consists of: nominal value of borrowings from financial institutions of £1,817 million (2024: £1,564 million) less unamortised finance costs of £14 million (2024: £8 million) and nominal value of bond loans of £3,170 million (2024: £3,077 million) less unamortised finance costs of £22 million (2024: £26 million).
2 Joint venture borrowings as at 31 December 2025 per Note 7 of £1,111 million at share (2024: £929 million) consists of: nominal value of borrowings from financial institutions of £139 million (2024: £3 million) less unamortised finance costs of £2 million (2024: £nil) and nominal value of bond loans of £978 million (2024: £930 million) less unamortised finance costs of £4 million (2024: £4 million).
3 Net payables is calculated as the net position of the following line items shown on the Balance Sheet: non-current other receivables, current trade and other receivables, tax asset, non-current trade and other payables, non-current tax liabilities and current trade and other payables.

Table 7: EPRA net initial yield and topped-up net initial yield

Combined property portfolio including joint ventures at share – 2025

	Notes	UK £m	Continental Europe £m	Total £m
Total properties per financial statements Table 3		11,783	7,258	19,041
Add valuation surplus not recognised on trading properties	1	—	1	1
Less head lease ROU assets	13	—	(80)	(80)
Combined property portfolio per external valuers’ reports		11,784	7,178	18,962
Less land and development properties (investment, trading, joint ventures)		(1,321)	(977)	(2,298)
Net valuation of completed properties		10,463	6,201	16,664
Add notional purchasers’ costs		710	352	1,062
Gross valuation of completed properties including notional purchasers’ costs A		11,173	6,553	17,726
Income
Gross passing rent	2	445	323	768
Less irrecoverable property costs		(8)	(13)	(21)
Net passing rent B		437	310	747
Adjustment for notional rent in respect of rent free periods	42	26	68
Topped up net rent C		479	336	815
Including fixed/minimum uplifts	4	10	—	10
Total topped up net rent		489	336	825
Yields – 2025	Notes	UK %	Continental Europe %	Total %
EPRA net initial yield	3	B/A	3.9	4.7
EPRA topped-up net initial yield	3	C/A	4.3	5.1
Net true equivalent yield				5.4

1 Trading properties are recorded in the Financial Statements at the lower of cost and net realisable value, therefore valuations above cost have not been recognised.
2 Gross passing rent excludes short-term lettings and licences.
3 In accordance with the Best Practices Recommendations of EPRA.
4 Certain leases contain clauses that guarantee future rental increases, whereas most leases contain five-yearly, upwards only rent review clauses (UK) or indexation clauses (Continental Europe).

184 | SEGRO plc Annual Report & Accounts 2025
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For the year ended 31 December 2025
Supplementary Notes Not Part of Audited Financial Statements continued

Table 8: EPRA vacancy rate

	2025	2024
£m		£m
Annualised estimated rental value of vacant premises	50	54
Annualised estimated rental value for the completed property portfolio	975	900
EPRA vacancy rate 1,2	5.1%	6.0%

1 Vacancy rate percentages have been calculated using the figures presented in the table above in millions accurate to one decimal place.
2 There are no significant or distorting factors influencing the EPRA vacancy rate.

Table 9: Total cost ratio/EPRA cost ratio

Total cost ratio	Notes	2025 £m	2024 £m
Costs
Property operating expenses	1	94	92
Administrative expenses	6	73	76
Share of joint venture property operating and administrative expenses	7	25	23
Less: Joint venture management fees income, management fees and other costs recovered through rents but not separately invoiced	2	(33)	(34)
Total costs (A)		159	157
Gross rental income
Gross rental income	4	637	592
Share of joint venture gross rental income	7	142	137
Less: Other costs recovered through rents but not separately invoiced	2	(3)	(4)
Total gross rental income (B)		776	725
Total cost ratio (A)/(B) 3		20.4%	21.7%
Total costs (A)		159	157
Share-based payments	6	(5)	(7)
Total costs after share-based payments (C)		154	150
Total cost ratio after share-based payments (C)/(B) 3		19.8%	20.7%
EPRA cost ratio
Total costs (A)		159	157
Non-EPRA adjustments	2	—	—
EPRA total costs including vacant property costs (D)		159	157
Group vacant property costs	5	(20)	(18)
Share of joint venture vacant property costs	7	(2)	(1)
EPRA total costs excluding vacant property costs (E)		137	138
Total gross rental income (B)		776	725
Total EPRA cost ratio (including vacant property costs) (D)/(B) 3		20.4%	21.7%
Total EPRA cost ratio (excluding vacant property costs) (E)/(B) 3		17.5%	19.1%

1 Property operating expenses are net of costs capitalised in accordance with IFRS of £11 million (2024: £10 million) (see Note 5 for further detail on the nature of costs capitalised).2 Total deduction of £33 million (2024: £34 million) from costs includes: joint venture management fees income of £25 million (2024: £26 million), management fees and other costs recovered through rents but not separately invoiced, including joint ventures, of £8 million (2024: £8 million). These items have been represented as an offset against costs rather than a component of income in accordance with EPRA BPR Guidelines as they are reimbursing the Group for costs incurred. Gross rental income of £637 million (2024: £592 million) does not include joint venture management fee income and management fee income and these fees are not required to be included in the total deduction to income.

3 Cost ratio percentages have been calculated using the figures presented in the table above in millions accurate to one decimal place.

185 | SEGRO plc Annual Report & Accounts 2025

Overview
Strategic Report
Governance
Financial Statements
Further Information

Notes to the Financial Statements continued
For the year ended 31 December 2025
Supplementary Notes
Not Part of Audited Financial Statements continued

Table 10: EPRA capital expenditure analysis

	2025			2024
	Wholly owned £m	Joint ventures £m	Total £m	Wholly owned £m	Joint ventures £m	Total £m
Acquisitions	24	1	25	454	1	455
Development	369	18	387	430	41	471
Capitalised interest	63	1	64	67	2	69
Investment properties:
Incremental lettable space	—	—	—	1	—	1
No incremental lettable space	47	14	61	44	9	53
Tenant incentives	65	—	65	40	16	56
Total	568	33	601	1,036	69	1,105

1 Being £24 million investment property and £nil trading property (2024: £452 million and £2 million respectively) see Note 13.
2 Being £366 million investment property and £3 million trading property (2024: £429 million and £1 million respectively) see Note 13.
3 Includes tenant incentives and letting fees.
4 Capitalised interest on development expenditure.
5 Excludes acquisitions of property sold from the Group’s wholly-owned portfolio to joint ventures.

Total acquisitions completed in 2025 shown on page 30 of the Strategic Report, being land acquisitions of £26 million and asset acquisitions of £232 million. Total disposals of £57 million shown on page 30 of the Strategic Report reflects disposals that completed in 2025 and includes: carrying value of investment properties disposed by SEGRO Group of £110 million (see Note 13) and profit generated on disposal of £1 million (see Note 8); proceeds from sale of trading properties £10 million (see Note 4); share of joint venture disposal proceeds of £2 million; and excludes net proceeds recognised in 2025 for disposals that completed in prior periods and assets sold by SEGRO to joint ventures of £66 million.

Table 11: Like-for-like net rental income (including JVs at share)

	2025 £m	2024 £m	Change %
UK	361	340	6.2
Continental Europe	222	210	5.8
Like-for-like net rental income before other items	583	550	6.0
Other	1	(4)	(5)
Like-for-like net rental income (after other items)	584	546	6.9
Development lettings	50	19
Properties taken back for development	6	17
Like-for-like net rental income plus developments	640	582
Properties acquired	28	6
Properties sold	—	22
Net rental income before surrenders, dilapidations and exchange	668	614
Lease surrender premiums and dilapidation income	2	7
Other items and rent lost from lease surrenders	10	14
Impact of exchange rate difference between periods	—	(2)
Net rental income (including joint ventures at share)	680	635
SEGRO share of joint venture management fees	(12)	(12)
Net rental income after SEGRO share of joint venture fees	668	623

1 Other includes the corporate centre and other costs relating to the operational business that are not specifically allocated to the two businesses UK and Continental Europe.
2 Percentage change has been calculated using numbers accurate to one decimal place.

3 The like-for-like net rental growth metric is based on properties held throughout both 2025 and 2024 on a proportionally consolidated basis. The value of these properties as at 31 December 2025 on a proportional basis was £14,766 million (2024: £14,526 million). This provides details of net rental income growth excluding the distortive impact of acquisitions, disposals and development completions. Where an asset has been sold into a joint venture (sales to SELP, for example) the 50 per cent share owned throughout the period is included in like-for-like calculation, with the balance shown as disposals.

186 | SEGRO plc Annual Report & Accounts 2025

Overview
Strategic Report
Governance
Financial Statements
Further Information

Notes to the Financial Statements continued
For the year ended 31 December 2025
Supplementary Notes
Not Part of Audited Financial Statements continued

Table 12: Top 10 estates as at 31 December 2025 (by value, including joint ventures at share)

Ownership %	Location	Lettable area (100%) sq m	Asset type
100	Slough	629,001	Multi-let urban warehouse estate, including data centres
100	Midlands	456,684	Big box warehouse park
50/100	Park Royal	62,832	Multi-let urban warehouse estate
100	Park Royal	79,606	Multi-let urban warehouse estate
100	Heathrow	93,704	Multi-let cargo facility
50/100	Germany	154,545	Multi-let urban warehouse estate and Big box estate
100	Midlands	110,346	Big box warehouse park
100	Midlands	117,418	Big box warehouse park
100	France	130,394	Multi-let urban warehouse estate
100	Heathrow	56,906	Multi-let urban warehouse and Big box estate

187 | SEGRO plc Annual Report & Accounts 2025

Overview
Strategic Report
Governance
Financial Statements
Further Information

Notes to the Financial Statements continued
For the year ended 31 December 2025

Group Income Statement

	2025 £m	2024 £m	2023 £m	2022 £m	2021 £m
Net rental income	543	500	462	412	341
Joint venture management fee income	25	26	29	30	26
Management and development fee income	2	3	6	4	5
Net service charge and other income	1	(1)	1	1	1
Administrative expenses	(73)	(76)	(63)	(59)	(59)
Share of joint ventures Adjusted profit after tax	78	83	82	71	69
Net finance costs (including adjustments)	(68)	(68)	(106)	(74)	(40)
Adjusted profit before tax	509	470	409	386	343
Adjustments to the share of profit/ (loss) from joint ventures after tax	3	31	(30)	(158)	(215)
Profit on sale of investment properties	75	39	9	53
Valuation surplus/(deficit) on investment properties	54	120	(647)	(1,970)	3,617
Profit on sale of trading properties	2	—	3	7	7
Decrease/(increase) in provision for impairment of trading properties and other interests in property	—	—	—	15	(1)
Other investment income	—	—	7	—	—
Net fair value gain/(loss) on interest rate swaps and other derivatives	(35)	3	24	(199)	(82)
Cost of early close out of debt	—	(2)	(1)	—	—
Joint venture performance fee	3	—	89	—	26
Impairment loss on loan due from associate	—	—	(28)	—	—
Solar panel depreciation	(2)	—	—	—	—
Profit/(loss) before tax	560	636	(263)	(1,967)	4,355

	2025 £m	2024 £m	2023 £m	2022 £m	2021 £m
Group Balance Sheet
Investment properties	15,998	15,303	14,914	14,939	15,492
Trading properties	1	6	3	35	45
Total directly owned properties	15,999	15,309	14,917	14,974	15,537
Property, plant and equipment	40	34	28	23	22
Investments in joint ventures	1,715	1,552	1,636	1,768	1,795
Other assets	316	316	349	421	344
Cash and cash equivalents	111	363	376	162	85
Total assets	18,181	17,574	17,306	17,348	17,783
Borrowings	(4,951)	(4,607)	(5,348)	(4,884)	(3,406)
Deferred tax liabilities	(210)	(192)	(192)	(226)	(274)
Other liabilities and non-controlling interests	(747)	(726)	(862)	(865)	(667)
Total equity attributable to owners of the parent	12,273	12,049	10,904	11,373	13,436
Total movement in equity attributable to owners of the parent
Profit/(loss) attributable to equity shareholders	551	594	(253)	(1,927)	4,060
Other equity movements	(327)	551	(216)	(136)	(283)
Data per ordinary share (pence)
Earnings per share
Basic earnings per share	40.7	44.7	(20.7)	(159.7)	339.0
Adjusted earnings per share – basic	36.6	34.5	32.7	31.0	28.0
Net assets per share (pence)
Basic net assets per share	907	891	889	941	1,118
Adjusted NAV per share – diluted	925	907	907	966	1,137
Dividend per share	31.1	29.3	27.8	26.3	24.3

	2025 £m	2024 £m	2023 £m	2022 £m	2021 £m
1 Net service charge and other income is calculated as Service charge and other income shown in Note 4, less Service charge and other expenses of shown in Note 5.
2 The composition of gross and net rental income changed in 2022 to provide a better measure of the underlying rental income from the property portfolio. Management and development fee income and service charge and other income are presented outside of gross and net rental income. There was no impact on Adjusted operating profit before interest and tax from this change and the prior year comparatives in the table above have been represented to reflect this change.
3 From 2023, SELP performance fees are recognised outside of Adjusted profit, the 2021 comparative was represented to reflect this change.

Overview Strategic Report Governance Financial Statements Further Information

Five-year financial results

Financial calendar and shareholder information

Date	Event
February 2026	Announcement of Full-Year Results: 20 February 2026
March 2026	Ex-dividend date for final dividend: Property Income Distribution 26 March 2026
	Record date: Property Income Distribution 27 March 2026
April 2026	Annual General Meeting: 23 April 2026
May 2026	Payment: Property Income Distribution 8 May 2026
July 2026	Announcement of Half-Year Results: Provisional 30 July 2026
September 2026	Payment: Property Income Distribution and/or Dividend September 2026

189 | SEGRO plc Annual Report & Accounts 2025

Overview Strategic Report Governance Financial Statements Further Information

Further information

Shareholder enquiries

Our Registrar, Equiniti Limited (Equiniti), provides a range of services to our shareholders. If you have any questions about your shareholding or if you require further guidance (e.g. to notify a change of address) please contact our Registrar on the details below or register for a free Shareview portfolio at www.shareview.co.uk or by scanning the QR code provided.

Equiniti Limited, Aspect House, Spencer Road, Lancing, West Sussex, BN99 6DA. Telephone: +44 (0) 371 3842 186

Electronic communications

Shareholders have the opportunity to elect to receive shareholder communications electronically, e.g. Annual Reports, Notice of the Annual General Meeting and Proxy Forms. You can elect to receive email notifications of shareholder communications by registering for a Shareview portfolio as detailed above, where you can also submit proxy votes for shareholder meetings and update your bank details for dividend payments. Receiving the Company’s communications electronically allows the Company to communicate with its shareholders in a more environmentally friendly, cost effective and timely manner.

AGM

The 2026 AGM will be held at 11.00 a.m. on 23 April 2026 at RSA House, 8 John Adam Street, London WC2N 6EZ. Please check our 2026 Notice of Meeting for the most up to date information. Shareholders are also advised to review our website at www.SEGRO.com, which will be updated if there are any changes to the arrangements.

ShareGift

ShareGift is a charity (registered under the name The Orr Mackintosh Foundation, registered charity number 1052686) which specialises in accepting donations of small numbers of shares which are uneconomic to sell on their own. Shares which have been donated to ShareGift are aggregated and sold when practicable, with the proceeds passed on to a wide range of UK charities. ShareGift can also help with larger donations of shares. Further details about ShareGift can be obtained from its website at www.sharegift.org or by writing to ShareGift at ShareGift, PO Box 72253, London, SW1P 9LQ, email: help@sharegift.org, telephone: +44 (0)207 930 3737.

Dividends

A requirement of the REIT regime is that a REIT must distribute to shareholders by way of dividend at least 90 per cent of its profits from its tax-exempt UK property rental business (calculated under UK tax principles after the deduction of interest and capital allowances and excluding chargeable gains). Such distributions are referred to as Property Income Distributions, or PIDs. Any further distributions may be paid as ordinary dividends, which are derived from profits earned by its UK, non-REIT taxable business, as well as its overseas operations (including the SIIC in France and SOCIMI in Spain).

Withholding tax – PIDs

SEGRO is required to withhold tax at source from its PIDs at the basic tax rate (20 per cent). UK shareholders need take no immediate action (unless they qualify for exemption as described below) and will receive with each dividend payment a tax deduction certificate stating the amount of tax deducted. UK shareholders who fall into one of the classes of shareholder able to claim an exemption from withholding tax may be able to receive a gross PID payment if they have submitted a valid relevant Exemption Declaration form, either as a beneficial owner of the shares, or as an intermediary if the shares are not registered in the name of the beneficial owner, to Equiniti. Both Exemption Declaration forms are available at www.SEGRO.com/shareholder-information/reit-real-estate-investment-trust. A valid declaration form, once submitted, will continue to apply to future payments of PIDs until rescinded, and so it is a shareholder’s responsibility to notify SEGRO if their circumstances change and they are no longer able to claim an exemption from withholding tax. Shareholders resident outside the UK may be able to claim a full or partial refund of withholding tax (either as an individual or as a company) from HMRC, subject to the terms of a double tax treaty, if any, between the UK and the country in which the shareholder is resident.

Ordinary dividends

Ordinary, non-PID dividends will be treated in exactly the same way by shareholders as ordinary dividends paid before the Company became a REIT. From 6 April 2016 the notional 10 per cent tax credit has been abolished and replaced with a tax-free dividend allowance, which will apply to the ordinary, non-PID dividends received by UK resident shareholders who are subject to UK income tax. This allowance does not apply to the PID element of dividends. Further information is available from HMRC at https://www.gov.uk/tax-on-dividends.

Chequeless dividends

Since January 2021, SEGRO has withdrawn the option for shareholders to receive payments by cheque. For more information on how to receive dividends directly into your bank or building society account, please visit www.SEGRO.com/investors/shareholder-information/shareholder-faq.

Scrip Dividend

Shareholders renewed the Directors’ authority to offer a scrip dividend option (Scrip) in respect of cash dividends (including those treated as PIDs) at the 2024 AGM. This authority runs for three years ending on the earlier of 17 April 2027 and the 2027 AGM. Subject to the Board deciding to offer a Scrip, it allows shareholders who elect to receive it, to take their final and interim dividends in shares rather than cash. The Board has decided not to offer a Scrip alternative in respect of the 2025 Final Dividend. Details of the Scrip, together with information on how shareholders can elect to receive it are available on the Company’s website www.SEGRO.com.

190 | SEGRO plc Annual Report & Accounts 2025

Overview Strategic Report Governance Financial Statements Further Information

Shareholder information

Associates: An entity in which the Group has significant influence but not control or joint control. This is generally the case where the Group holds between 20 per cent and 50 per cent of the voting rights.

Availability Zone: Separated groups of data centres within a geographic area. Each availability zone has independent power and networking infrastructure so that if one zone experiences an outage, then regional services and capacity are supported by the remaining zones.

BREEAM: BREEAM provides sustainability assessment and certification for real estate assets.

Completed portfolio: The completed investment properties and the Group’s share of joint ventures and associates’ completed investment properties. Includes properties held throughout the period, completed developments and properties acquired during the period.

Covered land: Income-producing assets acquired with the explicit intention to redevelop them in the short to medium term.

Development pipeline: The Group’s current programme of developments authorised or in the course of construction at the Balance Sheet date (Current Pipeline), together with projects that are conditional (for example, on achieving planning permission or final signing of the contract) but in a sufficiently advanced stage that we expect to commence development within the next 12 months (Near-term Pipeline) and potential schemes not yet commenced on land owned or controlled by the Group (Future Pipeline).

Development Yield: The expected gross yield based on the estimated current market rental value (ERV) of the developments when fully let, divided by the book value of the developments at the earlier of commencement of the development or the Balance Sheet date plus future development costs and estimated finance costs to completion.

Earnings before interest, tax, depreciation and amortisation (EBITDA): Adjusted operating profit before interest and tax, adding back depreciation and amortisation charges, less share of joint ventures’ and associates’ adjusted profit and including dividends received.

Earnings per share (EPS): Equity shareholders’ earnings divided by the number of ordinary shares in issue at the balance sheet date. Variations of this metric are disclosed further in the relevant note to the accounts.

EPRA: The European Public Real Estate Association, a real estate industry body, which has issued Best Practices Recommendations in order to provide consistency and transparency in real estate reporting across Europe.

Equivalent yield: The internal rate of return from an investment property, based on the value of the property assuming the current passing rent reverts to ERV and assuming the property becomes fully occupied over time. It assumes that rent is received annually in arrears.

ESG: Environmental, Social and Governance issues.

Estimated cost to completion: Costs still to be expended on a development or redevelopment to practical completion, including attributable interest.

Estimated rental value (ERV): The estimated annual market rental value of lettable space as determined biannually by the Group’s valuers. This will normally be different from the rent being paid.

FLAP-D: acronym that refers to Europe’s largest data centre markets of Frankfurt, London, Amsterdam, Paris and Dublin.Gearing: Net borrowings divided by total shareholders’ equity excluding intangible assets and deferred tax provisions.

Green lease clause: A clause added to our leases that require our customers to provide us with their energy usage data and, where possible, source their energy via a renewable tariff.

Gross rental income: Contracted rental income recognised in the period in the Income Statement, including surrender premiums. Lease incentives, initial costs and any contracted future rental increases are amortised on a straight-line basis over the lease term.

Headline rent: The annual rental income currently receivable on a property as at the Balance Sheet date (which may be more or less than the ERV) ignoring any rent-free period.

Hectares (Ha): The area of land measurement used in this analysis. The conversion factor used, where appropriate, is 1 hectare = 2.471 acres.

IAS: International Accounting Standards, the standards under which the SEGRO Group reports its financial statements.

IFRS: International Financial Reporting Standards, the standards under which the SEGRO Group reports its financial statements

Investment property: Completed land and buildings held for rental income return and/or capital appreciation.

Joint venture: An entity in which the Group holds an interest and which is jointly controlled by the Group and one or more partners under a contractual arrangement whereby decisions on financial and operating policies essential to the operation, performance and financial position of the venture require each partner’s consent.

Life cycle assessments: Life cycle assessment (LCA) is a methodology for assessing the environmental impacts associated with all the stages of the life cycle of a building.

Loan to value (LTV): Net borrowings excluding capitalised transaction costs divided by the carrying value of total property assets (investment, owner occupied, trading properties and, if appropriate, assets held for sale on the Balance Sheet) and excludes head lease ROU asset. This is reported on a ‘look-through’ basis (including joint ventures and associates at share).

MSCI: MSCI Real Estate calculates indices of real estate performance around the world.

Net assets per share or net asset value (NAV) per share: Equity shareholders’ funds divided by the number of ordinary shares in issue at the balance sheet date. Variations of this metric are disclosed further in the relevant note to the accounts.

Net debt:EBITDA ratio: Net debt divided by EBITDA.

Net initial yield: Passing rent less non-recoverable property expenses such as empty rates, divided by the property valuation plus notional purchasers’ costs. This is in accordance with EPRA’s Best Practices Recommendations.

Net rental income: Gross rental income less ground rents paid, net service charge expenses and property operating expenses.

191	SEGRO plc Annual Report & Accounts 2025 Overview Strategic Report Governance Financial Statements Further Information Glossary of terms

Net true equivalent yield: The internal rate of return from an investment property, based on the value of the property assuming the current passing rent reverts to ERV and assuming the property becomes fully occupied over time. It assumes that rent is received quarterly in advance.

Passing rent: The annual rental income currently receivable on a property as at the Balance Sheet date (which may be more or less than the ERV). Excludes rental income where a rent-free period is in operation. Excludes service charge income (which is netted off against service charge expenses).

Pre-let: A lease signed with an occupier prior to commencing construction of a building.

REIT: A qualifying entity which has elected to be treated as a Real Estate Investment Trust for tax purposes. In the UK, such entities must be listed on a recognised stock exchange, must be predominantly engaged in property investment activities and must meet certain ongoing qualifications. SEGRO plc and its UK subsidiaries achieved REIT status with effect from 1 January 2007.

Rent-free period: An incentive provided usually at commencement of a lease during which a customer pays no rent. The amount of rent free is the difference between passing rent and headline rent.

Rent roll: See Passing rent.

Reversion: The difference between in place contracted rents and estimated market rental value (ERV).

Science Based Targets initiative (‘SBTi’): A global organization that provides methodologies for and independently validates corporate climate targets to ensure they are consistent with the level of decarbonization required to limit global warming to well below 2°C, and pursue efforts toward 1.5°C.

SELP: SEGRO European Logistics Partnership S.à r.l., a 50-50 joint venture between SEGRO and the Public Sector Pension Investment Board (PSP Investments) established in 2013 to own big box warehouses in Continental Europe.

SIIC: Sociétés d’Investissements Immobiliers Cotées are the French equivalent of UK Real Estate Investment Trusts (see REIT).

SOCIMI: Sociedades Anónimas Cotizadas de Inversión Inmobiliaria are the Spanish equivalent of a Real Estate Investment Trust ( see REIT).

Speculative development: Where a development has commenced prior to a lease agreement being signed in relation to that development.

SPPICAV: Société de Placement à Prépondérance Immobilière à Capital Variable is a French equivalent of UK Real Estate Investment Trusts (see REIT).

Square metres (sq m): The area of buildings measurements used in this analysis. The conversion factor used, where appropriate, is one square metre = 10.7639 square feet.

Takeback: Rental income lost due to lease expiry, exercise of break option, surrender or insolvency.

Topped up net initial yield: Net initial yield adjusted to include notional rent in respect of let properties which are subject to a rent-free period at the valuation date. This is in accordance with EPRA’s Best Practices Recommendations.

Total accounting return (TAR): A measure of the Group’s return, calculated as the change in adjusted NAV per share during the period adding back dividends paid during the period expressed as a percentage of adjusted NAV per share at the beginning of the period.

Total property return (TPR): A measure of the ungeared return for the portfolio and is calculated as the change in capital value, less any capital expenditure incurred, plus net income, expressed as a percentage of capital employed over the period concerned, as calculated by MSCI Real Estate and excluding land.

Total shareholder return (TSR): A measure of return based upon share price movement over the period and assuming reinvestment of dividends.

Trading property: Property being developed for sale or one which is being held for sale after development is complete.

Yield on new money: The yield on cost excluding the book value of land if the land is owned by the Group in the reporting period prior to commencement of the development.

192	SEGRO plc Annual Report & Accounts 2025 Overview Strategic Report Governance Financial Statements Further Information Glossary of terms continued

The Annual Report contains certain forward-looking statements with respect to SEGRO’s expectations and plans, strategy, management objectives, future developments and performances, costs, revenues and other trend information. All statements other than historical fact are, or may be deemed to be, forward-looking statements. Forward-looking statements are statements of future expectations and these are subject to assumptions, risks and uncertainties. Many of these assumptions, risks and uncertainties relate to factors that are beyond SEGRO’s ability to control or estimate precisely and which could cause actual results or developments to differ materially from those expressed or implied by these forward-looking statements. Certain statements have been made with reference to forecast process changes, economic conditions and the current regulatory environment. Any forward-looking statements made by or on behalf of SEGRO are based upon the knowledge and information available to Directors on the date of this Annual Report. Accordingly, no assurance can be given that any particular expectation will be met and SEGRO’s shareholders are cautioned not to place undue reliance on the forward-looking statements. Additionally, forward-looking statements regarding past trends or activities should not be taken as a representation that such trends or activities will continue in the future. The information contained in this Annual Report is provided as at the date of this Annual Report and is subject to change without notice. Other than in accordance with its legal or regulatory obligations (including under the UK Listing Rules and the Disclosure Guidance and Transparency Rules of the Financial Conduct Authority), SEGRO does not undertake to update forward-looking statements including to reflect any new information or changes in events, conditions or circumstances on which any such statement is based. Past share performance cannot be relied on as a guide to future performance. Nothing in this Annual Report should be construed as a profit estimate or forecast. The information in this Annual Report does not constitute an offer to sell or an invitation to buy securities in SEGRO plc or an invitation or inducement to engage in or enter into any contract or commitment of other investment activities.

Find out more To keep up to date with SEGRO, you can source facts and figures about the Group through the various sections on our website at www.SEGRO.com and sign up for email alerts for fast communication of breaking news. Financial reports, shareholder information and property analysis are frequently updated and our current share price is always displayed on the Home Page.As well as featuring detailed information about available property throughout the portfolio, www.SEGRO.com now also includes a dedicated property search function making it easy for potential customers, or their agents, to find business space that fits their requirement exactly. SEGRO’s performance in areas such as sustainability and customer care are also featured on our website. We would encourage shareholders to consider electing to receive shareholder communications, including the Annual Report and Accounts, electronically as set out on page 190. As part of our commitment to become net-zero, we want to reduce the amount of paper we use.

Other Publications
Additional disclosures on our property portfolio can be found in the 2025 Property Analysis Report at www.SEGRO.com/investors/reports-presentations Our ESG policies, reporting guidelines, assurance statements and further case studies can be found at www.SEGRO.com.

Registered Office
SEGRO plc
1 New Burlington Place
London W1S 2HR
Registered in England and Wales
Registered number 167591

193 | SEGRO plc Annual Report & Accounts 2025
Overview
Strategic Report
Governance
Financial Statements
Further Information

Forward-looking statements
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SEGRO plc
1 New Burlington Place
London W1S 2HR
T +44(0)20 7451 9100
www.SEGRO.com/investors