Segro (SGRO) made impressive progress last year with reshaping its property portfolio and reducing debt by selling off non-core assets. But while the group has in the past looked a little like a distressed seller in a moribund market, a renaissance in commercial property values meant that last year's £591m of disposals were achieved at a 4.7 per cent premium to 2012 year-end book values.
As part of the next restructuring stage, £141m has been invested in modern warehouse assets and a further £108m has been spent on development projects. Some 15 have been completed and are 85 per cent let, equating to an anticipated yield on cost of 10 per cent, and £6.6m of new annualised income when fully let. While, in October, Segro commenced a joint venture with PSP, one of Canada's largest pension fund investment managers, to form the Segron European Logistics Partnership (SELP). Contracts have already been exchanged to purchase €472m (£389m) of land and assets in Germany, Poland and France.
Peel Hunt is forecasting adjusted net asset value (NAV) of 355p for 2014 (312p: 2013).
| SEGRO (SGRO) | ||||
|---|---|---|---|---|
| ORD PRICE: | 353p | MARKET VALUE: | £2.62bn | |
| TOUCH: | 353-354p | 12M HIGH | 362p | LOW: 245p |
| DIVIDEND YIELD: | 4.2% | TRADING PROP: | £139m | |
| PREMIUM TO NAV: | 12% | |||
| INVEST PROPERTIES: | £2.91bn | NET DEBT: | 62% | |
| Year to 31 Dec | Net asset value (p) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2009 | 354 | -248 | -41.3 | 14.0 |
| 2010 | 366 | 197 | 28.5 | 14.3 |
| 2011 | 345 | -54 | -4.1 | 14.8 |
| 2012 | 302 | 202 | -26.6 | 14.8 |
| 2013 | 316 | 212 | 28.4 | 14.8 |
| % change | +5 | +5 | - | - |
Ex-div26 Mar Payment:09 May | ||||
