Slough: SEGRO records 'successful year' with 24% profit increase
Slough-based SEGRO has posted a 24.3% rise in pre-tax profit, like-for-like rental growth and a low vacancy rate for its full year results for 2018.
The value of its UK portfolio rose 12% on a like-for-like basis and and 5.1% in continental Europe.
Estimated rental values increased by 3.4% and rental values in SEGRO’s UK portfolio rose by 4.7% and by 0.7% in Continental Europe.
The group’s future earnings prospects are underpinned by 1.3 million sq m of development projects under construction or in advanced pre-let discussions. The projects under construction are all due to complete in 2019 and are expected to generate £46m of rent, almost three quarters of which has been secured through pre-lets and lettings prior to completion. SEGRO’s land bank provides potential for further growth.
David Sleath, SEGRO chief executive, said: “2018 has been a successful year for SEGRO. 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. The combination of this prime portfolio and our active approach to asset management has enabled us to grow rents and maintain high occupancy across our 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.”
Source: CoStar
