LONDON (ShareCast) - (Sharecast News) - Segro released a "strong" set of results for the year ended 31 December on Friday, reporting a 24.4% improvement in adjusted pre-tax profit to £241.5m, which it said reflected its development success and its focus on customer and portfolio management.
The FTSE 100 property investment and development company said that focus delivered high customer retention rates, like-for-like rental growth and a low vacancy rate.

Adjusted earnings per share stood at 23.4p, including a 1.2p net impact from a performance fee from SELP.

Excluding that non-recurring performance fee, Segro said its adjusted earnings per share would be 22.2p - an increase of 11.6% over 2017.

IFRS earnings per share were 105.4p, up from 98.5p, which also included the impact of the 10.7% increase in the value of the company's portfolio - down from a 13.6% increase in 2017.

Segro's EPRA net asset value per share rose 16.9% to 650p.

The board said the company's future earnings prospects were underpinned by 1.3 million square metres of development projects under construction or in advanced pre-let discussions.

It explained that the projects under construction were all due to complete in 2019, and were expected to generate £46m of rent - almost three quarters of which had been secured through pre-lets and lettings prior to completion.

Its land bank and land under control provided "significant" potential for further growth, the directors added.

The firm's full year dividend was up by 13.3% at 18.8p, after the final dividend was hiked 16.7% to 13.25p.

"2018 has been a successful year for SEGRO," said chief executive officer David Sleath.

"The extensive development activity that has been our focus over the past few years, the success of which has been underpinned by the structural themes of e-commerce and urbanisation driving occupier demand, means we now have portfolio of very high quality and well-located warehouses."

Sleath said the combination of that prime portfolio and Segro's active approach to asset management had enabled the company to grow rents and maintain high occupancy across its markets.

"Development completions and pre-leasing levels in 2018 both exceeded a record previous year and, with customers already signed up to almost three quarters of our developments under construction, we believe that our significant longer-term pipeline and land bank have substantial potential that will continue to deliver attractive development returns and future income growth."

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