SEGRO Half Year results announcement issued on behalf of the Company this morning.
Some points of context for the first half results:
- Company earnings have doubled in just five years. Earnings delivered for H1 2019 (£131.8m) are around the same level as earnings delivered for the whole of FY 2014 (£129.7m)
- SEGRO has set another Company record for development in H1 2019, with more development completions in the first six months of the year than in the whole of 2018, which was itself a record year for development completions by SEGRO. Development projects during the half year period were 77% pre-let prior to the start of construction and 84% let as at 30 June.
- This has been the second highest half year on record for new leases completed by the Company, which has also delivered a record high customer retention rate of 94%
- The company has achieved the highest leasing spreads in recent years, with a 12.8 per cent increase in rents (H1 2018: 5.5 per cent) from lease reviews and renewals compared to previous headline rent.
The Company uses adjusted figures (in line with its European listed property company peers defined by EPRA) as they more accurately reflect the Company’s underlying operational recurring rental income performance.
- Adjusted profits before tax, which reflect rental income less administrative costs and interest, increased by 19% to £131.8m
- The valuation gain on the portfolio was +3.5% (compared to 5.9% in H1 2018) has been reflected in the 4% uplift in net asset value to 673p (from 650p at end-December)
- IFRS profits are heavily influenced by changes in the value of the portfolio – these were £410.8m, from £570.9m in H1 2018 – the difference almost entirely due to lower unrealised gains on the portfolio.
Source : Company