The durability of Segro’s ascent has rarely been questioned over the past three years, as restricted supply, cheap financing costs and demand from a booming ecommerce industry propelled the warehouse landlord’s net asset value. But investors are newly pessimistic.
A hefty derating in the shares since the start of this year means the beefy premium attached to the stock against forecast net asset value has reversed to a 25 per cent discount. Why? The prospect that falling consumer spending will hinder demand from occupiers and rising interest rates will cause investors to demand higher returns from industrial property and so draw some of the heat out of asset prices.
Any investors looking at the real estate investment trust’s recent track record might think the derating
