LONDON (ShareCast) - (ShareCast News) - Segro's shares climbed on Friday as Investec reiterated a 'buy' rating, hailing the company's full year results.
The property developer reported its full year net asset value (NAV) 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.

"Strong numbers (NAV, earnings and dividend are all ahead), impressive operational metrics (4.8% vacancy rate) and a robust balance sheet. Segro's refocused portfolio continues to benefit from structural growth (e-commerce-driven supply chain optimisation) and the cyclical recovery," said Investec analyst Alison Watson.

"We expect this to deliver an above sector average NAV growth outlook. This is coupled with an attractive above sector average dividend yield (3.8% vs 3.2% av). SEGRO has outperformed year-to-date, but de-rated from a 5.8% premium to a 4.1% discount to spot NAV over this period (post 2007 av: 10.3% discount). Reiterate 'buy'."

The target price was left at 490p.

Shares rose 0.37% to 433.30p at 1106 GMT.

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