2017 2017 FULL Y YEAR R RESULT LTS 16 FEBRUARY 2018 2017: - - PowerPoint PPT Presentation

2017 2017 FULL Y YEAR R RESULT LTS

16 FEBRUARY 2018

2017: Delivering in line with strategy

Attrac active ve r retur urns ns f for shar hareho holde ders

• Total property return
• NAV growth
• Adjusted EPS growth
• Final dividend growth

18.9% 16.3% 5.9% 6.1% Record o d ope perat ating ng metrics

• £53m new rent contracted
• Customer satisfaction
• Lowest ever vacancy rate
• ERV growth

19% 87% 4.0% 3.1% £1.1 .1 b billio illion in invested

• Asset acquisitions
• Development capex
• Land acquisitions

£610m £414m £92m £525 m millio illion dis isposals ls

• Asset sales
• Land sales

£432m £92m £2.7 .7 b billio illion of fin inancin ing

• Equity
• Debt
• LTV ratio

£0.6bn £2.1bn 30%

2

Greater London, £3.2bn Thames Valley, £1.5bn Midlands Logistics, £0.8bn Germany, £1.2bn France, £0.9bn Poland, £0.8bn Italy, £0.4bn Other, £0.5bn

A well located portfolio of modern warehouses

AUM £9.3bn

Urban (55%) Big box (41%) Other (4%) Portfolio split by geography and asset type

(at 31 December 2017) 3

OneExpress, Vailog Interporto Bologna

Strong momentum going into 2018

Supportive market with structural drivers Further rental income growth potential Profitable development pipeline Strong balance sheet

4

2017: Another year of delivery

Strong financial results and significantly improved capital structure Disciplined capital allocation improving portfolio scale and quality Operational excellence delivers strong

• perating and development performance

Significant growth opportunities within

• ur control

SEGRO Park Düsseldorf-Sud

5

Strong financial results and balance sheet

• Earnings growth

– Capturing rental growth in reviews and renewals – Development completions in 2016 and 2017 – Reduced financing costs

+25.7% 25.7%

Adjusted pre-tax profit

+5. 5.9% 9%

Adjusted EPS1, 19.9p

+2. 2.6% 6%

Like-for-like net rental income growth

• Strong balance sheet

– 13.6% portfolio value growth – £2.7 billion of financing, including rights issue and inaugural US private placement

+16.3% 16.3%

EPRA NAV per share1 556p

30% 30%

Loan to Value ratio (FY 2016: 33%)

• 2017 final dividend increased by 6.1%

– Total 2017 dividend increased by 5.7%

11.35p 11.35p

Final dividend per share1 (2016: 10.7p)

16.6p 16.6p

Total dividend per share1 (2016: 15.7p)

1 Historic per share metrics have been adjusted for the Rights Issue bonus adjustment factor of 1.046 6

2016 net rental income Disposals Acquisitions Like-for-like NRI Completed developments Take-backs for development Other Currency 2017 net rental income Pro forma 2017 (see slide 35)

£(18.8)m £19.9m £20.4m £(1.5)m £4.5m £(1.8)m £5.9m £250.7m £279.2m

2.6% growth in like-for-like net rental income

Proportionally consolidated net rental income (excluding joint venture fees), 2016-17, £ million

Mainly 2016 disposals and disposals to part-fund APP acquisition Group: up: +2. 2.6% 6% UK: +5.1% CE: (2.5)% Vacancy reduced to 4.0% APP acquisition

Group £220.7m JVs £70.1m Group £180.6m JVs £58.5m Group £222.2m JVs £61.8m £284.0m

7

1 Net property rental income less administrative expenses, net interest expenses and taxation

26% increase in Adjusted PBT

Adjusted income statement

2017 2017 £m 2016 2016 £m Gross rental income 272.9 225.5 Property operating expenses (52.2) (44.9) Net r rent ntal i inc ncome 220. 220.7 180. 180.6 Share of joint ventures’ adjusted profit1 47.6 55.4 Joint venture fee income 24.3 18.6 Administration expenses (39.7) (31.4) Adj djus usted o d ope perating ng pr profit 252. 252.9 223. 223.2 Net finance costs (58.7) (68.7) Adj djus usted pr d profit be before tax 194. 194.2 154. 154.5 Tax on adjusted profit 0.6% 1.2%

• APP performance fee generated non-

recurring profit of £3.2m

• Cost ratio of 24.6%

(2016: 23.0%)

• 21.7% excl LTIPs

(2016: 21.0%)

• 2017 adjusted EPS based on average

967m shares; 1,007m outstanding at year-end

• FY 2018 JV fee income expected to

be c£16m

8

31 December 2016 2017 Adjusted EPS Dividends Realised and unrealised gains Net impact of financing activity Exchange rate and

• ther

31 December 2017

17% increase in EPRA NAV

Components of EPRA NAV change, 31 December 2016 to 31 December 2017 (16)p 20p 96p (20)p 556p 478p

(after applying bonus adjustment factor of 1.046 to reported 500p)

(2)p

Assets & Land 79p Development 17p

9

£0m £200m £400m £600m £800m £1,000m Total London Slough Midlands Big Box Germany France Poland Italy

+17.6% +8.1% +1.4% +2.9% +13.2% +15.8% +7.5% +10.3%

Percentage change relates to properties held throughout 2017, including JVs at share.

£965m valuation surplus

UK: +15.8% Continental Europe: +6.2%

10

6.9% 6.1% 5.9% 5.4% 5.3% 5.1% 4.8%

0.0% 2.0% 4.0% 6.0% 8.0% Poland France Italy Germany Midlands Big Box Slough London 31-Dec-17 31-Dec-16

1 Yield on standing assets at 31 December 2017; ERV growth based on assets held throughout 2017. 2 Net true equivalent yield

Driven by asset management, yield shift and rental growth1

+4.6% UK: +3.9% +3.5% +1.7% +1.9% Cont. Eur. +1.2% +1.9% +1.4% +0.1%

Equivalent yield: 5.3%2 ERV growth: 3.1%

By By ow

• wner

ER ERV SEGRO +2.1% SELP +0.6% Lon

• ndon
• n

ER ERV Heathrow +2.1% Park Royal +7.1% N&E London +9.0%

11

£2.7bn of new financing to strengthen balance sheet

Rights I Issue

£573m gross proceeds (£557m net)

• £216m cash consideration for APP
• £341m for future development capex
• 70% identified projects committed or completed

Priv ivate P e Pla lacem emen ent Issue

€650m of new debt

• 11yr ave duration, 1.9% ave coupon
• Repaid 2018 bonds and APP secured debt

Bond t nd tende nder

£550m of bonds tendered £750m of new bonds

• Longer dated bonds tendered
• Increased average debt duration by 3 years

SELP b P bon

• nd

€500m of new debt

• 8yr duration, 1.5% coupon
• Repaid most of remaining secured debt

Cr Credit it f facilit ilities ies

Extended by €440m

• €1.3bn of cash and available facilities
• Marginal cost of 1%

12

• 2018: £350m+ estimated

development capex (and further c£50m of infrastructure capex)

• 2018: c£200m estimated

disposals

Efficient, conservative capital structure

LTV ratio and average cost of debt (incl share of joint ventures), 2012-17

51% 42% 40% 38% 33% 30% 4.6% 4.2% 4.2% 3.5% 3.4% 2.1%

0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 0% 20% 40% 60% 2012 2013 2014 2015 2016 2017 Average cost of debt LTV ratio LTV ratio Ave cost of debt

• Debt maturity improved to 10.8

years (from 6.2 years at end- 2016)

13

Strong financial results and balance sheet

• Growing earnings
• Strong balance sheet
• 2017 final dividend increased by 6%

BidFood, Slough Trading Estate

14

2017: Another year of delivery

Strong financial results and significantly improved capital structure Disciplined capital allocation improving portfolio scale and quality Operational excellence delivers strong

• perating and development performance

Significant growth opportunities within

• ur control

Camden Town Brewery, Navigation Park

15

Improving portfolio quality and scale through disciplined capital allocation

£525m £525m o

• f

f disposals £702m £702m o

• f

f acquisiti tions Disposals to part-fund APP portfolio acquisition

Nelson Trade Park, London

Asset and land recycling, primarily in UK and Germany

Neuss Business Park, Germany

APP portfolio

Skyline Park, Heathrow

Big box warehouses — UK and France

Butchers Pet Care, Crick

Development land

Italy, 43% Spain, 26% Germany, 18% Midlands UK, 9% London, 3% Poland, 1%

£414m £414m o

• f

f development c t capex Development capex and infrastructure

Yoox, Bologna

16

0.0 0.2 0.4 0.6 0.8 1.0 1.2 1.4 1.6 Germany France Poland/Czech Italy Other European Assets under management SELP SEGRO wholly-owned €1.3bn €1.1bn €1.0bn €0.4bn €0.5bn

Creating a scale position in Continental European warehouses

100 200 300 400 500 At 31 Dec 17 Current development Estimated added value Acquisitions under offer Target

Spain assets under management, €m

Assets under management, €bn

(as at 31 December 2017) 17

Creating a sustainable portfolio

Second carbon-neutral development delivered 50% increase in solar energy capacity in 2017 80% construction waste recycled or re- used

18

2017: Another year of delivery

Strong financial results and significantly improved capital structure Disciplined capital allocation improving portfolio scale and quality Operational excellence delivers strong

• perating and development performance

Significant growth opportunities within

• ur control

XPO Logistics, SEGRO Logistics Park Bondouffle

19

Driving performance through asset management…

• 10

10 20 30 40 50 60 2013 2014 2015 2016 2017 Annualised rental income, £m New rent contracted Net new rent on existing space 60 65 70 75 80 85 1 2 3 4 5 6 7 8 9 2013 2014 2015 2016 2017 Customer retention rate, % Vacancy rate, % 2 4 6 8 10 2014 2015 2016 2017 Rent change on review and renewal, %

Strong leasing success in 2017…1 …high levels of occupancy and customer retention…2 … and capturing reversion from renewals and reviews3

1 Net new rent on existing space reflects headline rent agreed on new leases less passing rent lost from space taken back during the year; new rent contracted is total headline rent secured or (in the case of developments) agreed in the year. 2 Vacancy rate based on ERV at 31 December; customer retention rate based on headline rent retained in the same or alternative SEGRO premises. 3 Headline rent agreed on lease renewals, reviews and re-gears compared to previous headline rent. 20

Big box warehouses Urban warehouses

…and through development

Mitry Mory, Paris Fedex, Paris Amazon, Munich City Park, Düsseldorf Rieck, Berlin Arvato, Strykow Tiesse, Milan Spacewaye, Heathrow

650, 650,000 000 sq sq m m

Completed developments

£27m £27m

Potential rent — 93% secured

8.3% 8.3%

Yield on cost

+29% 29%

Uplift on development

21

50 100 150 200 250 300 350 400 2012 2013 2014 2015 2016 2017 Development capex, £m

Development — a major source of growth in recent years

Development completions, million sq m (at 100%) 0.0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 2012 2013 2014 2015 2016 2017 Development completions, million sq m 20 40 60 80 100 120 2012 2013 2014 2015 2016 2017 Rent from completed developments, £m Capex on developments, £m (SEGRO share) Cumulative gross rent from completed developments, £m (SEGRO share)

22

2017: Another year of delivery

Strong financial results and significantly improved capital structure Disciplined capital allocation improving portfolio scale and quality Operational excellence delivers strong

• perating and development performance

Significant growth opportunities within

• ur control

SEGRO Business Park Zeran, Warsaw

23

UK logistics supply continues to fall short of demand

(UK logistics take up and average availability; source: JLL)

Favourable market conditions

Supply of UK speculative development fell sharply in 2017

(Speculative UK big box warehouse completions; source: JLL)

0.0 0.2 0.4 0.6 0.8 1.0 1.2 1.4 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 In dvpt Completions, m sq m 0.0 0.5 1.0 1.5 2.0 2.5 0.0 1.0 2.0 3.0 2011 2012 2013 2014 2015 2016 2017

• No. of years’ supply

Take-up / availability, m sq m Average availability Take-up

• No. of years' supply

European warehouse development remains substantially pre-let

(Logistics space under construction; source: JLL)

• Supportive economic backdrop
• E-commerce growing market share across

Europe

• Big box supply-demand dynamics remain

favourable

• Supply response potential limited, especially

in urban areas

0.0 1.0 2.0 3.0 4.0 UK Germany France Belgium Neth. Poland Italy Spain Under construction, million sqm Pre-let Speculative Prior year 24

Geogr graphy phy or

• r

Prop ropert rty T Type Demand nd condi nditions ns Suppl upply condi nditions ns SEGRO RO ERV g grow rowth 2017 2017 SEGRO RO ERV RV grow rowth expe pectations ns Greater London STRONG LIMITED 4.6% 5% 2% Slough Trading Estate / Thames Valley STRONG LIMITED 3.5% Midlands / South East Big Box Warehousing STRONG LIMITED 1.7% Continental Europe Urban Warehouses STRONG LIMITED 2.1% 3% 1% Continental Europe Big Box Warehousing STRONG MODERATE 0.6%

Positive expectations for rental value growth across our markets

…with £25m of reversionary potential to capture

25

Current development pipeline: £43m rent, 37 projects, 0.7m sq m space

Premier Inn, Slough Trading Estate SEGRO Park Rainham, East London SEGRO Park Amsterdam Airport SEGRO Business Park Stuttgart Schoeck, Tychy – Poland Yoox, Bologna – Italy

0% 20% 40% 60% 80% 100% 2013 2014 2015 2016 2017 Pre-let Speculative Let at 31 Dec 17

Rapid leasing of speculative space

(Letting status of development completions in 2012-17, %) 26

£200m+ rent from development opportunities in SEGRO’s control

1 Future development pipeline in the 2017 Full Year Property Analysis Report. 2 Total capex of £446m including capex already incurred.

Dev Devel elopmen ent pi pipe peline ne Ar Area (sq m) m) Es Esti timate ted c cost to t to comp mplete ( (£m) m) Pot Potential gross ss rent ( (£m) Es Esti timate ted yie ield ld Pr Prop

• por
• rtion
• n

pr pre-let et Exp Expecte ted de delive very Current 693,851 2662 43 7.6% 50% 1-12 months Near-term pre-lets1 503,500 236 22 7% 100% 12-18 months Future1 2.2m 962 103 7-8% n/a 1-5 years Optioned land 1.1m n/a 60 7-8% n/a 1-10 years

UK (39%) Germany (20%) Italy (18%) France (7%) Poland (6%) Potential annualised gross rent from current, near-term and future pipeline, by country (£168 million at 31 December 2017) Other (10%)

27

324 35 43 22 384 388.8 Annualised gross cash passing rent1, £ million

(as at 31 December 2017)

1 Including JVs at share 2 Near-term development opportunities include pre-let agreements subject to final conditions such as planning permission, and speculative developments subject to final approval, which are expected to commence within the next 12 months 3 Total rent potential of £125m from near-term development opportunities and Future pipeline 4 Estimated. Excludes rent from development projects identified for sale on completion and from projects identified as “Near-term opportunities”

43

Passing rent at 31 December 17 Rent in rent-free

Reversion (£25m) and vacant space (£18m)

Current development pipeline (50% let) Near-term pre-let development

• pportunities2,3

Future pipeline3 Land held under

• ption

Total Potential

Substantial opportunity to grow rental income

1034 604 £143m potential from current activity £163m from land bank and land options 630

Of which £9.5m suitable for SELP

28

Strong momentum going into 2018

Supportive market with structural drivers Further rental income growth potential Profitable development pipeline Strong balance sheet

SEGRO Logistics Park Ingolstadt

29

2017 FULL YEAR RESULTS

Q& Q&A

APPE PPENDIX IX I

PORTFOLIO AND FINANCIAL DATA

31 D 31 December 2017 2017 31 D 31 December 2016 2016 £m £p per share £m £p per share2 EPRA1 Earnings 192.8 19.9 152.6 18.8 (19.7) EPRA NAV 5,607.7 556 4,162.1 478 (500) EPRA NNNAV 5,386.9 535 3,822.6 439 (459) EPRA net initial yield 4.3% 4.8% EPRA topped-up net initial yield 4.8% 5.3% EPRA vacancy rate 4.0% 5.7% EPRA1 cost ratio (including vacant property costs) 24.6% 23.0% EPRA1 cost ratio (excluding vacant property costs) 22.1% 20.8%

1 For the periods presented, EPRA EPS is the same as Adjusted EPS. 2 Per share metrics in parentheses are as reported before application of the rights issue bonus adjustment factor.

EPRA performance measures

32

2017 2017 2016 2016 Group £m JVs £m Total £m Group £m JVs £m Total £m Gross rental income 272.9 73.7 346.6 225.5 82.7 308.2 Property operating expenses (52.2) (3.9)1 (56.1) (44.9) (3.9)1 (48.8) Net r rent ntal i inc ncome 220. 220.7 69. 69.8 290. 290.5 180. 180.6 78. 78.8 259. 259.4 JV management fee income 24.3 (11.3)1 13.0 18.6 (8.7)1 9.9 Administration expenses (39.7) (0.9) (40.6) (31.4) (0.8) (32.2) Adj djus usted o d ope perating ng pr profit 205. 205.3 57. 57.6 262. 262.9 167. 167.8 69. 69.3 237. 237.1 Net finance costs (58.7) (6.2) (64.9) (68.7) (12.2) (80.9) Adj djus usted pr d profit be before tax 146. 146.6 51. 51.4 198. 198.0 99. 99.1 57. 57.1 156. 156.2 Tax and non-controlling interests (1.4) (3.8) (5.2) (1.9) (1.7) (3.6) Adj djus usted pr d profit after tax 145. 145.2 47. 47.6 192. 192.8 97. 97.2 55. 55.4 152. 152.6

Adjusted income statement (JVs proportionally consolidated)

1 The management fees earned from joint ventures are recorded at 100% in SEGRO’s income statement (2017: 24.3 million; 2016: £18.6 million). As a 50% owner of the joint ventures, SEGRO’s share of JV income includes approximately half the cost of these fees in JV property operating expenses (2017: £11.3 million; 2016: £8.7 million). 33

31 D 31 December 2017 2017 31 D 31 December 2016 2016 Group £m JVs £m Total £m Group £m JVs £m Total £m Investment properties 6,745.4 1,280.2 8, 8,025. 025.6 4,714.4 1,605.0 6, 6,319. 319.4 Trading properties 12.5 0.6 13. 13.1 25.4 0.6 26. 26.0 To Total pr prope perties 6, 6,757. 757.9 1, 1,280. 280.8 8, 8,038. 038.7 4, 4,739. 739.8 1, 1,605. 605.6 6, 6,345. 345.4 Investment in joint ventures 792.0 (792.0) – 1,066.2 (1,066.2) – Other net liabilities (11.3) (45.3) (56. 56.6) 6) (25.5) (46.8) (72. 72.3) 3) Net debt (1,954.2) (443.5) (2, 2,397. 397.7) 7) (1,598.4) (492.6) (2, 2,091. 091.0) 0) Net as asset valu value1 5, 5,584. 584.4 – 5, 5,584. 584.4 4, 4,182. 182.1 – 4, 4,182. 182.1 EPRA adjustments 22.3 (20.0) EPR EPRA NA NAV 5, 5,607. 607.7 4, 4,162. 162.1

1 After minority interests

Balance sheet (JVs proportionally consolidated)

34

1 Annualised gross rental income (on a cash flow basis) after the expiry of rent-free periods

Group up £m JV JVs £m To Total £m 2017 ne net r rent ntal i inc ncome 220. 220.7 58. 58.5 279. 279.2 Full ll year im impact of: Disposals since 1 January 2017 (12.9) (5.8) (18.7) — APP fees within JV net rental income 0.0 4.9 4.9 Acquisitions since 1 January 2017 8.7 1.1 9.8 Developments completed and let during 2017 9.6 3.1 12.7 One-off items (3.9) 0.0 (3.9) Pro f forma 2017 ne net r rent ntal i inc ncome 222. 222.2 61. 61.8 284. 284.0

Pro forma 2017 accounting net rental income

35

1 Total costs include vacant property costs of £8.5m for 2017 (2016: £6.7m) 2 Includes JV property management fee income of £16.8m and management fees of £1.1m (2016: £17.7m and £1.2m respectively)

• Incl. joint ventures at share

2017 2017 £m 2016 2016 £m Gross r rent ntal inc ncome (less reimbursed costs) 344.3 307.0 Property operating expenses 52.2 44.9 Administration expenses 39.7 31.4 JV operating expenses 11.8 13.1 JV management fees (19.1) (18.9) To Total c costs1 84. 84.6 70. 70.5 Of which share based payments (10.0) (6.1) Total costs excluding share based payments2 74.6 64.4 To Total cost r ratio 24. 24.6% 6% 23. 23.0% 0% Total cost ratio excluding share based payments 21.7% 21.0%

Total Cost Ratio

Total cost ratio, 2016-17 (proportionally consolidated)

36

2017 2017 2016 2016 Group £m JVs £m To Total £m £m Group £m JVs £m To Total £m £m Acquisitions 1,212.2 82.2 1,294.4 254.2 105.1 359.3 Development1 368.3 45.8 414.4 265.4 36.2 301.6 Completed properties2 19.7 4.6 24.3 17.4 4.6 22.0 Other3 16.7 4.7 21.4 19.8 6.8 26.6 TO TOTA TAL 1, 1,616. 616.9 137. 137.3 1, 1,754. 754.2 556. 556.8 152. 152.7 709. 709.5

1 Includes wholly-owned capitalised interest of £6.6 million (2016: £5.0 million) and share of JV capitalised interest of £0.8 million (2016: £0.8 million). 2 Completed properties are those not deemed under development during the year 3 Tenant incentives, letting fees and rental guarantees

• Approximately 50% of completed

properties capex was for major refurbishment, infrastructure and fit-

• ut costs prior to re-letting.

EPRA capital expenditure analysis

37

31 D Dec ecem ember er 2017 2017 £m £m Weight ghted a d average ge cost o

• f gr

gross de debt bt, %1 31 D Dec ecem ember er 2016 2016 £m £m Weight ghted a d average ge cost o

• f gr

gross de debt bt, %1 Group gross borrowings 2,063 2.3 1,630 3.9 Group cash & equivalents (109) (32) – Group ne up net bo borrowings ngs 1, 1,954 954 1, 1,598 598 – Share of joint venture net borrowings 444 1.4 493 1.7 SEGRO ne net bo borrowings ngs i inc ncludi uding j ng joint nt v vent ntur ures at s sha hare 2, 2,398 398 2. 2.1 2, 2,091 091 3. 3.4 To Total pr prope perties ( (inc ncludi uding ng SEGRO s sha hare o

• f

joint nt v vent ntur ures) 8, 8,039 039 6, 6,345 345 ‘Look-thr hrough ugh’ ’ lo loan an t to valu value rat atio io 30% 30% 33% 33%

1 Figures exclude commitment fees and amortised costs

Look-through loan-to-value ratio

38

Debt maturity profile at 31 December 2017, £m

200 400 600 800 1,000 1,200 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 JV undrawn at share SEGRO undrawn JV debt at share SEGRO PP notes SEGRO bonds Debt maturity by type and year, £ millions

(as at 31 December 2017) 39

• €1.13:£1 as at 31 December 2017
• € assets 69% hedged by € liabilities
• €786m (£695m) of residual exposure – 12% of Group NAV
• Illustrative NAV sensitivity vs €1.13:
• + 5% (€1.19) = - c.£33m (-c.3.3p per share)
• 5% (€1.07) = + c.£36m (+c.3.6p per share)
• Loan to Value (on look-through basis) at €1.13:£1 is 30%,
• Sensitivity vs €1.13:
• +5% (€1.19) LTV -0.6%-points
• 5% (€1.07) LTV +0.6%-points
• Average rate for 12 months to 31 December 2017 €1.14:£1
• € income 33% hedged by € expenditure (including interest)
• Net € income for the period €84m (£74m) – 38% of Group
• Illustrative annualised net income sensitivity versus €1.14:
• + 5% (€1.20) = –c£3.5m (c0.4p per share)
• 5% (€1.08) = +c3.9m (c0.4p per share)

500 1,000 1,500 2,000 2,500 Other euro liabilities Euro currency swaps Euro debt Euro gross assets 20 40 60 80 100 120 Euro income Euro costs Balance sheet, £m

31 December 2017

Income Statement, £m

12 months to 31 December 2017

Assets 69% hedged Income 33% hedged

Euro currency exposure and hedging

40

31 December 2016 Long-term lettings Short-term lettings New developments Acquisitions Disposals Other 31 December 2017

Speculative development1 0.6% Speculative development1 1.6%

0.6% (1.2)%

5.7 .7%

0.2% 0.0%

1 Speculative developments completed in preceding 24 months.

Existing standing assets 4.1% Existing standing assets 3.4%

(1.2)%

4.0 .0%

EPRA Vacancy Rate

(0.1)% Vacancy rate reconciliation, 31 December 2016 to 31 December 2017

41

Current development pipeline

Current development pipeline

(as at 31 December 2017)

693, 693,850 850

sq m

£43m £43m

ERV

£22m £22m

rent secured (50%)

£266 £266m

cost to complete

7. 7.6% 6%

Yield on cost

Current development projects, asset type by ERV

(31 December 2017)

Urban warehouses 20% Big box warehouses 41% Urban warehouses 33%

Gross rent from development completions, £m

(as at 31 December 2017, including joint ventures at share)

13.0 3.8 2.2 2.7 5.6 7.1 8.9 0.0 10.0 20.0 30.0 40.0 50.0 H1 2018 H2 2018 H1 2019 H2 2019 Pre-let Speculative All figures include joint ventures at share.

SEGRO Park Amsterdam Airport

42

All figures include joint ventures at share. 1 Future development pipeline including near-term projects but excluding land under option. 2 Excludes near-term projects and potential developments on land held under option.

Germany/ Austria 20% UK 43% Italy/Spain 21% France 2%

Geographic split of land bank, by potential ERV1

(31 December 2017)

Development land bank

(31 December 2017)

Fut Futur ure pi pipe peline ne (2.2m s sq m q m2)

• £1.0bn estimated development

costs2

• £103m of potential annual

rent2

• 7-8% estimated yield on TDC1
• 10% estimated yield on new

money1

Future development pipeline

And…l nd…land and he held unde d under opt ption

• 1.1 million sq m
• £60m of potential annual rent
• Estimated blended yield of

7-8% on total cost, incl land Ne Near-term pre-let et p projec ects

• 503,500 sq m
• c£22m of rent
• c£235m of potential capex

43

0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0% 100 200 300 400 500 600 2011 2012 2013 2014 2015 2016 2017 Land bank value, £m Alternative use Future development pipeline Long-term and residual land bank As % of portfolio (right hand scale)

• £46m of land bank subject to conditional sale for

alternative (residential) use

• Additional opportunity from land held under option

Land bank provides optionality and opportunity for growth

44

Heathrow Cargo Area

APP acquisition: scale position in supply-constrained Heathrow market

1 ERV growth excluding Heathrow Cargo Centre assets.

£1. £1.1b 1bn

Portfolio value

£1. £1.2b 2bn

+11% 11%

5. 5.5% 5%

Equivalent yield

5. 5.2% 2%

• 30bp

30bp

7. 7.5% 5%

Vacancy rate

4. 4.6% 6%

• 2.9%

2.9%

£66m £66m

ERV

£67m £67m

+2.7% 2.7%1

At acquisition At 31 December 2017

DHL Poyle

45

Building scale in Continental Europe urban and UK big box warehouses

• 6m sq ft logistics park development
• Estimated total development cost of

c£460m, c7-8% gross yield

• Build period of c10 years
• First pr

pre-let a agr greement nt s signe gned f d for 1. 1.3m 3m s sq ft di distribut bution c n cent ntre

• Two others in advanced discussions

100 200 300 400 500 600 700 800 2013 2017 Incl dvpt capex Germany France Poland Other €230m €583m c€750m

Continental Europe urban warehouse portfolio, €m

200 400 600 800 1,000 1,200 1,400 1,600 2013 2017 Incl dvpt capex Midlands South-East £297m £922m SLPEMG

UK big box warehouse portfolio (at share), £m SEGRO Logistics Park East Midlands Gateway development

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APPE PPENDIX IX II

MARKET DATA

E-commerce continues to gain market share

0.0% 5.0% 10.0% 15.0% 20.0% Italy Poland Europe ave France Germany UK 2017 2016 2015

Online purchases as share of total retail sales

Source: Centre for Retail Research 100 110 120 130 140 150 160 170 180 2015 2016 2017 2018F 2019F 2020F 2021F E-commerce Physical CAGR: 2.4% CAGR: 9.8%

Growth of pan-European retail sales via e-commerce vs physical stores (2015=100)

Source: Colliers International - Online retailers and the growth of 'showrooming' 48

5 10 15 20 25 30 35 40 45 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 UK Germany France CEE Rest of Europe 5 10 15 20 25 30 35 40 45 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Q1 Q2 Q3 Q4 European industrial investment volumes

By geography, €bn

European industrial investment volumes

By quarter, €bn

Source: CBRE

European industrial investment volumes

49

0.0 2.0 4.0 6.0 8.0 10.0 12.0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Warsaw: 6.0% Paris: 4.8% Dusseldorf: 4.4% London: 4.5% UK 10yr bond: 1.2% Germany 10yr bond: 0.4%

Source: CBRE, Bloomberg (data correct at 31 December 2017)

Prime logistics yields vs 10 year bond yields

50

0.0 0.5 1.0 1.5 2.0 2.5 0.0 1.0 2.0 3.0 2011 2012 2013 2014 2015 2016 2017

• No. of years’ supply

Take-up / availability, m sq m Average availability Take-up Available space as multiple of annual take-up

UK Big Box supply-demand dynamics1

(m sq m)

1 Source: JLL (logistics warehouses >100,000 sq ft, Grade A) 2 Source: JLL

Speculative UK Big Box completions2

(m sq m)

0% 2% 4% 6% 8% 10% 12% 14% 0.0 1.0 2.0 3.0 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 In dvpt Vacancy rate Completions, m sq m Construction Vacancy

Favourable demand-supply conditions: UK supply shortage

51

0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 UK Germany France Belgium Neth. Poland Italy Spain Pre-let Speculative 4Q 2016 Logistics space under construction1

(m sq m)

1 Source: 4Q 2017, JLL 2 Source: CBRE

European industrial and logistics supply dynamics

0.0 0.5 1.0 1.5 2.0 2.5 0.0 1.0 2.0 3.0 4.0 5.0 2010 2011 2012 2013 2014 2015 2016 2017

• No. of years’ supply

Take-up / availability, m sq m Average availability Take-up Available space as multiple of annual take-up

France logistics supply-demand dynamics2

(m sq m)

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0.0 1.0 2.0 3.0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 New Second hand Take-up of warehouse space >100,000 sq ft – UK1

(m sq m)

1 Source: JLL 2 Source: CBRE 3 Source: BNP Paribas Real Estate

0.0 1.0 2.0 3.0 4.0 5.0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 0.0 2.0 4.0 6.0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Net demand Lease renewals Take-up of warehouse space >5,000 sq m – France2

(m sq m)

Take-up of warehouse space – Poland1

(m sq m)

European industrial and logistics — take-up statistics

0.0 2.0 4.0 6.0 8.0 2011 2012 2013 2014 2015 2016 2017 Take-up of warehouse space >5,000 sq m – Germany3

(m sq m)

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0.0 1.0 2.0 3.0 2010 2011 2012 2013 2014 2015 2016 2017 New / Early Marketed Second hand Availability of Grade A warehouse space >100,000 sq ft– UK1

(m sq m)

1 Source: JLL 2 Source: CBRE

0.0 1.0 2.0 3.0 4.0 5.0 2009 2010 2011 2012 2013 2014 2015 2016 2017 0.0% 5.0% 10.0% 15.0% 0.0 1.0 2.0 2011 2012 2013 2014 2015 2016 2017 Pre-let Speculative Vacancy (RHS) Availability of warehouse space >5,000 sq m – France2

(m sq m)

Warehouse space under construction and vacancy rate – Poland1

(m sq m)

European industrial and logistics — availability statistics

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1.0 1.1 1.2 1.3 1.4 1.5 1.6 1.7 1.8 Dec-05 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 Dec-13 Dec-14 Dec-15 Dec-16 Dec-17 10yr ave Rolling annual Heathrow Airport cargo volumes

(million metric tonnes)

Source: Heathrow Airport

60 65 70 75 80 Dec-05 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 Dec-13 Dec-14 Dec-15 Dec-16 Dec-17 10yr ave Rolling annual Heathrow Airport passenger volumes

(millions)

Heathrow Airport cargo and passenger volumes

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This document has been prepared by SEGRO plc (‘SEGRO’) solely for use at the presentation of SEGRO’s results announcement in respect of the year ended 31 December 2017. For the purposes of this disclaimer, “Presentation” shall mean this document, the oral presentation of the slides by SEGRO and related question-and- answer session and any materials distributed at, or in connection with, that presentation. This Presentation does not constitute or form part of and should not be construed as, an offer to sell or issue, or the solicitation of an offer to buy or acquire, SEGRO’s securities in any jurisdiction or an inducement to enter into investment activity. No part of this Presentation, nor the fact of its distribution, should form the basis of, or be relied on in connection with, any contract or commitment or investment decision whatsoever. This Presentation may contain certain forward-looking statements with respect to SEGRO’s expectations and plans, strategy, management’s objectives, future performance, costs, revenues and other trend information. These statements and forecasts involve risk and uncertainty because they relate to events and depend upon circumstances that may occur in the future. There are a number of factors which could cause actual results or developments to differ materially from those expressed or implied by these forward looking statements and forecasts. The statements have been made with reference to forecast price changes, economic conditions and the current regulatory environment. Any forward-looking statement is based on information available to SEGRO as at the date of the statement. SEGRO does not undertake any obligation to revise or update any forward-looking statement to reflect any change in SEGRO’s expectations or events, conditions or circumstances on which any such statement is based. Nothing in this Presentation should be construed as a profit forecast. Past share performance cannot be relied on as a guide to future performance.

Forward-looking statements and Disclaimer

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