Warehouse property investor SEGRO has increased its dividend by 10% after rental income boosted its adjusted profit.
Pre-tax profit for the year through December fell to £902m, down from £1.1bn year-on-year, mainly reflecting lower gains in the value of its portfolio.
Adjusted pre-tax profit increased 10% to £267.5m, supported by 4.7% growth in like-for-like rental income.
SEGRO reported a full-year dividend of 20.7p, up 10% year-on-year.
EPRA NAV per share rose 8.9% to 708p.
“2019 was another successful year for SEGRO, with our clear strategy delivering excellent financial and operational results,” said chief executive, David Sleath.
“Our high-quality, well-located portfolio of urban and big box warehouses continues to attract a broad range of customers, benefiting from the structural drivers of e-commerce and urbanisation.”
This year, the firm’s total development capex for 2020, including infrastructure and land acquisitions, is expected to exceed £600m.
Earlier this month, SEGRO announced that its chief investment officer Phil Redding, who had clocked up 23 years at the business, is to depart. His exit comes amid a restructure that will see SEGRO’s chief financial officer, former investment banker Soumen Das, oversee a new division covering strategy, investment and innovation.
2020 marks SEGRO’s 100-year anniversary. Sleath said: “We will continue to take a long-term view, reflecting the interests of our financial stakeholders and our wider responsibilities, as we look to position the business for further success in its next century.”
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