SEGRO has posted a 9.6% fall in its EPRA net asset value per share to 340p during a period of “strong operational performance and EPRA earnings growth”.
It its full-year results for the year ended 31 December, the industrial REIT said the NAV decline reflected a 4.2% drop in the value of its completed property portfolio. The fall reflected a 13% reduction in the value of non-core assets and a 0.4% decline in the valuation of the core portfolio.
EPRA profit before tax was up 8.8% to £138.5m (2010: £127.3m).
Operationally, SEGRO said it had contracted £38.4m of new rental income during the year, with lettings completed 1.7% above December 2010 estimated rental values.
The group vacancy rate reduced further to 9.1% at 31 December 2011, down from 11.4% at 30 June 2011 and 12 % at 31 December 2010. The former Brixton portfolio vacancy reduced to 13.4% (2010: 18.6%) with the acquisition target of sub-15% achieved one year early.
It announced a 3.5% increase in full-year dividend to 14.8p, broadly in line with 14.3p in 2010.
SEGRO said it was making good “early progress” in relation to the strategic portfolio reshaping announced at the end of last year. It completed £110.9m of disposals in 2011 in addition to the post year-end disposal of five non-core UK industrial estates to Ignis Asset Management for £80.2m. Further disposals are expected over the year.
During the year, 14 developments were completed, generating £9m of annualised rental income, while a further 20 developments were underway or contracted, the firm said.
SEGRO said its balance sheet remained solid with the funding position further strengthened by debt financings arranged in 2011, including €440m (£368m) of new five-year bank facilities and a £400m refinancing of the Airport Property Partnership (APP) joint venture.
It had 78% of net borrowings in long-term bonds and a weighted average maturity of gross borrowings of 8.8 years. It had no significant debt maturities before 2014.
bridget.oconnell@estatesgazette.com
