Valuation creation and platform potential

研报英文原文证据摘录

Valuation creation and platform potential

wer bank projections (GVA)

3.0

Dev land bank has the potential to generate £429m of future headline rent. 1.1• 2.0

0.3

0.8 SGRO has Europe's largest DC cluster (50% of land is currently valued as DC Land), 1.0 3.0•

with 0.5GVA current operational capacity and 2.5GVA (Ex 1) of future capacity, providing 0.5 0.3

£460m of potential rental income over the next 7 yrs. 0.0 Operational Available to Available to Available to Additional Total power

capacity lease now lease by lease by power bank

. 2028 2033

SGRO has a strong b/sheet, with long-dated funding, and has realised c.£2.2bn of Source: Company data, Jefferies•

disposals since 2021 at more than 10% above book.

Exhibit 2 - LTV vs. Net debt/EBITDA

Is SGRO's pipeline the real alpha? SGRO expects the industrial & logistics dev pipeline to 32% 8.4x 9.0x

<6x

6.0xcontribute to £1.4bn of discounted value upside (or 103 pps) & the initial 1.4GVA of allocated 31% <5x

power & DC projects to contribute £1.9bn of discounted value upside (139 pps). SGRO alludes 31%

to a further 165 pps of value that accrues to any acquirer of the platform (incl. opex efficiencies, 30% <30% Low 30% 3.0x

cost savings etc, Ex 5). Management view the PLD proposal as opportunistic & does not take 29% 0.0x

into account SGRO's future pipeline value (supported by CBRE's independent valuation report). 2025 2030 2035

LTV (LHS) Net debt/EBITDA (RHS)

.

What is PLD's M&A template? PLD’s preferred industrial REIT M&A template (buying DRE, Source: Company data, Jefferies

LPT and DCT - Ex 4) is scale-led, stock-funded and synergy-backed, rather than cash-heavy. Exhibit 3 - Unaffected market cap and

PLD uses its lower cost of capital, operating platform and equity currency to consolidate listed Powered land bank