SEGRO has posted a 3.5% uplift in net asset value per share, as it continues to benefit from the growth of e-commerce.
EPRA NAV per share grew to 673p in the six months ending 30 June, driven by a 3.5% increase in its property portfolio value to £9.9bn.
The value of its total real estate portfolio, including assets under management, tallied £11.7bn at the end of June.
IFRS pretax profit for the six months fell to £410.8m, down from £570.9m, on the back of lower gains on property revaluations.
However, adjusted pretax profit was up 19% to £131.8m compared with H1 2018, boosted by rental growth and record development completions during the period.
Total development capex for the year is expected to total £600m, as demand for warehouse space grows. SEGRO raised £450m in February to fund its pipeline.
See also: SEGRO and Barratt on how housing and sheds can be easy bedfellows
Chief executive David Sleath said: “As anticipated, the structural trends of e-commerce and urbanisation that have been driving performance in our UK business for some time are now increasingly evident in our continental European markets.
“Looking ahead, we expect the development programme to generate further significant and profitable new rental income over coming years. This addition to the top line, combined with the compounding effect of rental growth through our asset management of the existing portfolio, should enable us to drive both sustainable earnings and further dividend growth.”
To send feedback, e-mail pui-guan.man@egi.co.uk or tweet @PuiGuanM or @estatesgazette
