Segro (SGRO) had previously informed the market of a 4.8 per cent like-for-like increase in the value of its property portfolio, but what drove the warehouse landlord's shares 3 per cent higher on the publication of its full-year results was the broader 8 per cent climb in adjusted net asset value (NAV). This was further helped by a £20m adjusted post-tax gain, and a small £3m exchange rate windfall.
As if further confirmation were needed, the EU referendum result has had little impact on occupier and investor demand, and chief executive David Sleath reiterated that the group is "well positioned, notwithstanding the current degree of political and economic uncertainty". That confidence was underlined by Segro's expectation that it will allocate more than £300m of capital expenditure this year to development. Those warehouses already under development, of which more than half is now pre-let, equate to £27m of future income.
Given that capital outlay, the slight uplift in loan-to-value in the final quarter of 2016 is not much of a concern, particularly following September's £325m equity issue, which accounts for the year-on-year drop in gearing.
Analysts at Peel Hunt are forecasting adjusted NAV of 515p at the end of 2017, up from 500p at the end of the reported period.
SEGRO (SGRO) | ||||
|---|---|---|---|---|
| ORD PRICE: | 499p | MARKET VALUE: | £4.14bn | |
| TOUCH: | 498.6-499p | 12-MONTH HIGH: | 505p | LOW: 331p |
| DIVIDEND YIELD: | 3.3% | TRADING PROPERTIES: | £25.4m | |
| DISCOUNT TO NAV: | 1% | |||
| INVESTMENT PROPERTIES: | £5.78bn* | NET DEBT: | 50% | |
| Year to 31 Dec | Net asset value (p) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2012 | 302 | -202 | -26.6 | 14.8 |
| 2013 | 316 | 212 | 28.4 | 14.8 |
| 2014 | 390 | 654 | 92.0 | 15.1 |
| 2015 | 468 | 687 | 91.7 | 15.6 |
| 2016 | 505 | 426 | 53.9 | 16.4 |
| % change | +8 | -38 | -41 | +5 |
Ex-div: 23 Mar Payment: 4 May *Includes £1.1bn with joint ventures | ||||
