Is SGRO.L (SEGRO Plc) Halal or Haram?

Based on our AAOIFI-standard shariah screening, SGRO.L is classified as Doubtful. It passed 3 of 4 compliance screens. Some scholars may permit investing with income purification, while others advise avoiding it. We recommend consulting a qualified Islamic scholar before investing in SGRO.L.

SEGRO Plc is a major player in the UK and European real estate market, operating specifically as a Real Estate Investment Trust (REIT). The company focuses on modern big-box warehouses and light industrial properties, managing over 8 8 million square feet of space valued at £13.3 billion. These assets are critical infrastructure for e-commerce and logistics, situated near major cities and transport hubs across the UK and seven European nations. For Muslim investors, SEGRO presents a mixed picture. While the underlying business of renting out industrial space is permissible (Halal), the company 's financial structure currently poses a problem under AAOIFI standards. Specifically, the stock is marked as 'Doubtful' because it failed the debt screening; this means the company carries more interest-bearing debt relative to its market value than is typically allowed for shariah-compliant equities. The primary concern is the Debt-to-Market Cap ratio, which sits at 43.5%, well above the 33% limit set by scholars. On a positive note, the company's interest income is low at 3.44% of revenue, and its cash holdings are minimal at 1.0%, both of which pass their respective screens. This indicates that while the company isn't hoarding cash in interest-bearing accounts, it is relying heavily on borrowing to fund its property portfolio. Investors interested in the logistics sector should monitor SEGRO's balance sheet closely in future earnings reports. If the company pays down debt or if its market capitalization increases significantly, the debt ratio could drop back below 33%, potentially making the stock compliant again. Until then, strict shariah-conscious investors usually avoid stocks that breach the debt threshold. SEGRO Plc operates in the Real Estate sector under the REIT - Industrial industry and is headquartered in London, GB. The company is led by CEO David John Rivers Sleath and employs approximately 466 people.

SGRO.L was screened using AAOIFI-based shariah compliance criteria. Four tests are applied: (1) Business Activity — the company's core business must not derive primary income from haram (prohibited) activities such as alcohol, gambling, tobacco, or interest-based finance. (2) Debt-to-Market-Cap — total debt must not exceed 33% of market capitalization. (3) Interest Income — interest income must not exceed 5% of total revenue. (4) Cash & Securities — cash and interest-bearing securities must not exceed 33% of market cap. SGRO.L passed 3 of these 4 screens.

SGRO.L was last screened on 2026-03-01. Shariah compliance status can change as companies report new financial data, acquire new businesses, or shift revenue streams. We recommend checking back periodically for the most up-to-date screening results.