Segro, the UK’s fifth biggest REIT, dropped out of the FTSE 100 tonight.
Segro finsished 126th when FTSE conducted its quarterly review at close of trading on Tuesday, with a market capitalisation of £2.2bn. It needed to finish 110th or higher to keep its place in the top 100, and was one of three companies to make the drop.
In a sign of the changing landscape of the UK’s built environment, housebuilder Taylor Wimpey was one of the three companies to climb into the top 100, after the merger between Taylor Woodrow and George Wimpey in July.
Segro joined the FTSE 100 in July 2006 after an extra place was created by the merger of Boots Group and Alliance UniChem.
Since then its share price has dropped 23%, from 663p to 511p. This year, its share price has dropped 34% from a peak of 780p a share in February, reflecting the overall performance of UK REITs, the worst performing sector of the FTSE All-Share Index.
The drop was also precipitated by the special dividend of £250m paid out by Segro on 31 August following the sale of its US biotech property business for $2.9bn (£1.42bn) on 2 August.