SEGRO announces final results. SEGRO, a leading owner, asset manager and developer of modern warehousing, light industrial and data centre properties, principally concentrated in London’s Western Corridor (including the Thames Valley) and in key conurbations in France, Germany and Poland, has announced its annual results for the year ended 31 December 2017.
The company has highlighted the following as being key points:
- SEGRO has delivered another strong set of financial, operating and portfolio performance metrics, and a record level of development completions, almost all of which have been leased.
- Adjusted pre-tax profit up 25.7 per cent reflects our focus on customer and portfolio management (which delivered high customer retention rates, like-for-like rental growth and a low vacancy rate) and investment during the year (principally acquiring full ownership of the Airport Property Partnership portfolio and a record level of development capital expenditure).
- Adjusted EPS up 5.9 per cent to 19.9 pence (2016: 18.8 pence1), incorporating the new shares issued in the March Rights Issue. IFRS EPS of 98.5 pence (2016: 51.6 pence1), also includes the impact of the 13.6 per cent increase (2016: 4.8 per cent increase) in the value of our portfolio.
- EPRA NAV per share up 16.3 per cent to 556 pence (31 December 2016: 478 pence1).
- Balance sheet significantly strengthened by the Rights Issue and debt refinancing activity. We completed £2.7 billion of financing activity for SEGRO and SELP, reducing the average cost of debt to 2.1 per cent and improving the efficiency and strength of the balance sheet.
- Future earnings prospects underpinned by 1.2 million sq m of development projects under construction or in advanced pre-let discussions, equivalent to almost one-fifth of our current portfolio. The current development pipeline is capable of generating £43 million of rent, equating to a yield on cost of nearly 8 per cent, over half of which has been secured through pre-lets and lettings prior to completion. Our land bank and land under our control provide significant potential for future growth.
Final dividend increased by 6.1 per cent to 11.35 pence (2016 final dividend: 10.7 pence1).
SGRO : SEGRO announces final results