Industrial giant SEGRO’s profits jumped by 23% in the six months to 30 June, boosted by a shortage of warehouse space.
The group’s adjusted pre-tax profit came in at £91.2m, compared with £74.2m a year earlier. This was due to a rise in rental values and its acquisition of Aviva’s share of the airport property partnership.
The value of its assets also rose by 5.4% to 504p. The portfolio is now valued at £5bn.
Chief executive David Sleath said: “Whilst political and economic uncertainty has increased in the UK, we are encouraged by the continued leasing momentum across our portfolio. Furthermore, business confidence in continental Europe has picked up in recent months and there is no sign of any slowdown in the growth of internet retailing which is an important driver of demand for modern warehouse space across our markets, both in big boxes used for logistics and smaller, urban warehouses used for last mile delivery.
“With few signs of any meaningful new supply of speculatively developed space and investor appetite for good quality warehouse assets remaining strong, our business is well-placed to continue outperforming the wider market.”
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