From ESG to Future Prospects: Financial and Management Strategies of Segro and Land Securities

Yulin Zhang

doi:10.47297/wspdecWSP2515-797319.20250902

PDF
Export
Share
Collection
Album

From ESG to Future Prospects: Financial and Management Strategies of Segro and Land Securities

Volume 9, Issue 2

Views: 0 Downloads: 0

From ESG to Future Prospects: Financial and Management Strategies of Segro and Land Securities
From ESG to Future Prospects: Financial and Management Strategies of Segro and Land Securities
The University of Manchester, Manchester M13 9PL, UK
Vol. 9, Issue 2, Pages: 91-96(2025)
Published：25 February 2025
DOI：10.47297/wspdecWSP2515-797319.20250902
Accepted：

Scan QR Code

Zhang Yulin.From ESG to Future Prospects: Financial and Management Strategies of Segro and Land Securities[J].Development Economics of China,2025,09(02):91-96.
DOI：

Zhang Yulin.From ESG to Future Prospects: Financial and Management Strategies of Segro and Land Securities[J].Development Economics of China,2025,09(02):91-96. DOI： 10.47297/wspdecWSP2515-797319.20250902.

摘要

Abstract

This study focuses on Segro and Land Securities

two major real estate investment trusts (REITs) in the UK

and systematically compares the two companies' business performance and sustainable development strategy based on the analysis of their financial data and operation strategy from 2020 to 2023. The study finds that

in terms of financial indicators

Segro's return on equity (ROE) is significantly better than the peer group average

even though it declines from a peak of 16.8 per cent in 2021 to 9.2 per cent in 2023; Land Securities

on the other hand

has had a negative ROE for most of the time

reflecting the fact that it is facing greater operational difficulties. At the management Strategies

Segro focuses on logistics and industrial property development while Land Securities focuses on urban regeneration and commercial property transformation. It has also adopted a more integrated strategy in green building and social responsibility. Finally

the study uses a SWOT analysis to forecast future trends for both companies

suggesting that Segro could expand its market by taking advantage of growth opportunities in the e-commerce and logistics sectors

while Land Securities needs to refine its portfolio to meet the challenges of the retail market. The study provides investors with an in-depth analysis of the UK REITs market

with recommendations for improving management strategies.

关键词

Keywords

references

Biasin M. , Delle Foglie , A. Giacomini, E. ( 2024 ). Addressing climate challenges through ESG-real estate investment strategies: An asset allocation perspective . Finance research letters , 63 , pp. 105381 .

Boland B. , Levy C. , Palter R. and Stephens D .( 2022 ). Climate risk and the opportunity for real estate . Available at : https://www.mckinsey.com/industries/real-estate/our-insights/climate-risk-and-the-opportunity-for-real-estate (Accessed: 1 December 2024) https://www.mckinsey.com/industries/real-estate/our-insights/climate-risk-and-the-opportunity-for-real-estate(Accessed:1December2024) .

Cai , Y. Xu, K. ( 2022 ). Net impact of COVID-19 on REIT returns . Journal of risk and financial management , 15 ( 8 ), pp. 1 – 31 .

Cannon S . E. and Vogt S .C. ( 1995 ). REITs and Their Management: An Analysis of Organizational Structure, Performance and Management Compensation. The Journal of real estate research , 10 ( 3 ), pp. 297 – 317 .

Capozza D . R. and Seguin P .J. ( 2000 ). Debt, Agency, and Management Contracts in REITs: The External Advisor Puzzle. The journal of real estate finance and economics , 20 ( 2 ), pp. 91 – 116 .

EPRA ( 2015 ), Monthly Statistical Bulletin: December 2014, European Public Real Estate Association, Brussels .

EPRA ( 2016 b), Monthly Statistical Bulletin, European Public Real Estate Association, Brussels .

Financial Times . (n . d .). British Land Company PLC (LAND : LSE). Available at: https://markets.ft.com/data/equities/tearsheet/summary?s=LAND:LSE (Accessed: 30 November 2024) https://markets.ft.com/data/equities/tearsheet/summary?s=LAND:LSE(Accessed:30November2024) .

Financial Times . (n . d.). SEGRO PLC (SGRO : LSE). Available at: https://markets.ft.com/data/equities/tearsheet/summary?s=SGRO:LSE (Accessed: 30 November 2024) https://markets.ft.com/data/equities/tearsheet/summary?s=SGRO:LSE(Accessed:30November2024) .

Gibilaro L . and Mattarocci G . ( 2021 ). Institutional Investors and Home-Biased REITs. The journal of real estate portfolio management , 27 ( 2 ), pp. 104 – 120 .

Hapsoro D . and Husain Z .F. ( 2019 ). Does Sustainability Report Moderate the Effect of Financial Performance on Investor Reaction? Evidence of Indonesian Listed Firms. International journal of business , 24 ( 3 ), pp. 308 – 328 .

Khairulanuwar , A.J. Chuweni, N.N. ( 2021 ). The significance and performance analysis of Malaysian real estate investment trusts . International journal of law and management , 63 ( 4 ), pp. 417 – 430 .

Land Securities ( 2020 ). Sustainability Performance and Data Report 2020 . Available at : https://landsec.com/sustainability/reports-benchmarking (Accessed: 1 December 2024) https://landsec.com/sustainability/reports-benchmarking(Accessed:1December2024) .

Land Securities ( 2023 ). Sustainability Performance and Data Report 2023 . Available at : https://landsec.com/sustainability/reports-benchmarking (Accessed: 1 December 2024) https://landsec.com/sustainability/reports-benchmarking(Accessed:1December2024) .

Land Securities ( 2023 ). Sustainability Performance and Data Report 2023. Available at: https://landsec.com/sustainability/reports-benchmarking (Accessed: 1 December 2024).[16] Land Securities (2020). Annual Report 2020 . Available at : https://landsec.com/( Accessed: 30 November 2024) https://landsec.com/(Accessed:30November2024) .

Land Securitie ( 2021 ). Annual Report 2021 . Available at : https://landsec.com/( Accessed: 30 November 2024) https://landsec.com/(Accessed:30November2024) .

Land Securities ( 2022 ). Annual Report 2022 . Available at : https://landsec.com/( Accessed: 30 November 2024) https://landsec.com/(Accessed:30November2024) .

Land Securities ( 2023 ). Annual Report 2023 . Available at : https://landsec.com/( Accessed: 30 November 2024) https://landsec.com/(Accessed:30November2024) .

McGrath K . and Worzala E . ( 2024 ). Real Estate Insights: The "S" in ESG: unlocking financial performance through human capital and real estate integration. Journal of property investment & finance , 42 ( 5 ), pp. 524 – 534 .

Ndlovu C . and Alagidede P . ( 2018 ). Industry structure, macroeconomic fundamentals a nd return on equity: Evidence from emerging market economies. International journal of emerging markets , 13 ( 6 ), pp. 2047 – 2066 .

Newell G . and Marzuki M .J.B. ( 2016 ). The significance and performance of UK-REITs in a mixed-asset portfolio. Journal of European real estate research , 9 ( 2 ), pp. 171 – 182 . DOI: 10.1108/JERER-08-2015-0032 http://dx.doi.org/10.1108/JERER-08-2015-0032

Newell G. , Nanda A. and Moss A . ( 2023 ). Improving the benchmarking of ESG in real estate investment . Journal of property investment & finance , 41 ( 4 ), pp. 380 – 405 .

SEGRO ( 2020 ). Annual Report 2020 . Available at : https://www.segro.com/(Accessed: 30 November 2024) https://www.segro.com/(Accessed:30November2024) .

SEGRO ( 2020 ). ESG Reports 2020 . Available at : https://www.segro.com/( Accessed: 1 December 2024) https://www.segro.com/(Accessed:1December2024) .

SEGRO ( 2021 ). Annual Report 2021 . Available at : https://www.segro.com/(Accessed: 30 November 2024) https://www.segro.com/(Accessed:30November2024) .

SEGRO ( 2022 ). Annual Report 2022 . Available at : https://www.segro.com/(Accessed: 30 November 2024) https://www.segro.com/(Accessed:30November2024) .

SEGRO ( 2022 ). ESG Reports 2022 . Available at : https://www.segro.com/(Accessed: 1 December 2024) https://www.segro.com/(Accessed:1December2024) .

SEGRO ( 2023 ). Annual Report 2023 . Available at : https://www.segro.com/( Accessed: 30 November 2024) https://www.segro.com/(Accessed:30November2024) .

SEGRO ( 2023 ). ESG Reports 2023 . Available at : https://www.segro.com/( Accessed: 1 December 2024) https://www.segro.com/(Accessed:1December2024) .

Shen T. , Nagai Y. and Gao C . ( 2020 ). Design of building construction safety prediction model based on optimized BP neural network algorithm . Soft computing (Berlin, Germany) , 24 ( 11 ), pp. 7839 – 7850 .

Alert me when the article has been cited

Submit

Research on ESG's Transformation and Development of Companies in the Era of Digital Economy

A Study on the Impact of Tourism Corporate Social Responsibility on Financial Performance

ESG Risk Management Policies, Standards and Practices for Commercial Banks

The Impacts of the COVID-19 Pandemic on Financial Performance of Commercial Banks

Related Author

Yuling Qi Taizhou University

Xiaomiao Lu School of Tourism,Xinjiang University of Finance and Economics

Ying Zhan Renmin University of China School of Environment

Yixuan Zhou

Related Institution