News

EG Video: SEGRO delivers solid set of full-year results

News

Bridget O’Connell

24 February 2011

Investment/finance

SEGRO has delivered a solid set of full-year results, posting a 3.4% rise in net asset value to 366p per share.

The industrial REIT’s vacancy rate fell from 13.5% at the end of 2009 to 12% in what analysts have called a “good performance”.

The company also put in a strong lettings performance, reporting £37.7m of new annualised rental income generated up from £31m at the same time last year.

SEGRO’s gearing has reduced from 91% to 80%, with £485.9m of new and extended bank facilities agreed.

The capital value of SEGRO’s completed portfolio increased by 1.9% led by a strong performance in the UK, where values jumped 4.4%.

However, this was offset by a 3.9% drop in continental Europe, which the company said was the “impact of specific factors on certain assets in Germany and Italy”.

The company also swung back into the black with a £197m pretax profit, up from a loss of close to £250m last year.

EPRA profit before tax was up 22.1% to £127.3m, reflecting the full-year impact of the acquisition of rival Brixton.

EPRA earnings per share were 17.1p down from 18.3p, reflecting the dilutive impact of the rights issue in 2009.

It is recommending a final dividend of 9.6p per share – total dividend of 14.3p – a 2.1% increase on 2009.

Chief executive Ian Coull said: “Our positive lettings momentum continued in the fourth quarter and we recorded a significant reduction in our group vacancy rate to 12%.

“Enquiry levels remain robust and we have a very healthy pipeline of attractive prelet projects. We remain focused on our key priorities to increase occupancy, improve the portfolio and prudently manage our financial position.

“Although we expect many of the challenges in 2010 to continue into 2011 we are confident that, given our high-quality portfolio and strong team, SEGRO is well positioned to continue to make progress and to benefit from the emerging recovery.”

bridget.o’connell@estatesgazette.com

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SEGRO has delivered a solid set of full-year results, posting a 3.4% rise in net asset value to 366p per share. The industrial REIT’s vacancy rate fell from 13.5% at the end of 2009 to 12% in what analysts have called a “good performance”. The company also put in a strong lettings performance, reporting £37.7m of new annualised rental income generated up from £31m at the same time last year. SEGRO’s gearing has reduced from 91% to 80%, with £485.9m of new and extended bank facilities agreed. The capital value of SEGRO’s completed portfolio increased by 1.9% led by a strong performance in the UK, where values jumped 4.4%. However, this was offset by a 3.9% drop in continental Europe, which the company said was the “impact of specific factors on certain assets in Germany and Italy”. The company also swung back into the black with a £197m pretax profit, up from a loss of close to £250m last year. EPRA profit before tax was up 22.1% to £127.3m, reflecting the full-year impact of the acquisition of rival Brixton. EPRA earnings per share were 17.1p down from 18.3p, reflecting the dilutive impact of the rights issue in 2009. It is recommending a final dividend of 9.6p per share – total dividend of 14.3p – a 2.1% increase on 2009. Chief executive Ian Coull said: “Our positive lettings momentum continued in the fourth quarter and we recorded a significant reduction in our group vacancy rate to 12%. “Enquiry levels remain robust and we have a very healthy pipeline of attractive prelet projects. We remain focused on our key priorities to increase occupancy, improve the portfolio and prudently manage our financial position. “Although we expect many of the challenges in 2010 to continue into 2011 we are confident that, given our high-quality portfolio and strong team, SEGRO is well positioned to continue to make progress and to benefit from the emerging recovery.” bridget.o’connell@estatesgazette.com To access all EGi news stories and commercial property data sign up for a free trial today, or visit the subscription options page to find out more.