LONDON (ShareCast) - (ShareCast News) - Property developer Segro said its full year net asset value rose 21% to 463p a share, while pre-tax profits increased to £686.5m from £654m.
The company said its operating and portfolio performance reflected the active management of its assets, positive market dynamics and the strategic repositioning of its portfolio, which was now almost exclusively focused on industrial and logistics properties.

"Occupier and investor appetite for modern warehouses in prime locations continues to be underpinned by a favourable macro-economic environment, limited supply of new space and structural changes in the nature of consumer demand towards online and convenience retailing," the company said.

"Retailers, parcel delivery companies and third party logistics providers are responding to these changes by restructuring their supply chains, in which modern storage and distribution warehouses in the right places play a vital role."

Adjusted earnings per share rose 7% to 18.4p, driven by improving like-for-like rental income, a record low vacancy rate of 4.8%, new developments, acquisitions and lower financing and operating costs, Segro added.

Chief executive David Sleath said the outlook for occupational demand remained "encouraging" and the new year had started well, with a "healthy pipeline of lettings and new development opportunities".

"Whilst there are a number of broader economic and geopolitical uncertainties, we are confident that our portfolio is well positioned to be able to deliver growth and outperform the wider property market."

Sleath said the NAV increase reflected capital value increases from a portfolio which had benefited from yield shift and rental growth, particularly in the UK, as well as gains from developments and profits on disposal.

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