Investment bank Jefferies has downgraded stock in SEGRO, describing the company as “a super-apex REIT we want to own but not buy at this price”.
EMEA real estate research analyst Mike Prew issued a note following the REIT’s recent capital markets day, saying the event had “confirmed structural growth with a nascent data centre business being scaled up”.
“Construction costs run at £600m [per annum] and land buying another £400m, but profits are diluted by the denominator effect, with expansion of the equity base by one-third in five years,” Prew wrote. “It’s a super-apex REIT we want to own but not buy at this price.”
