SEGRO plc ('SEGRO' / 'Company' / 'Group') today announces its results for the year ended 31 December 2014.
Strategic re-positioning programme substantially complete: £1.6 billion of asset disposals and £1.3 billion of investment in development and acquisitions since November 2011.
23 per cent increase in EPRA NAV per share to 384 pence(31 December 2013: 312 pence) reflecting improving asset values, asset management and development gains.
IFRS profit before tax increased to £654.4 million (2013: £212.1 million).
EPRA EPS of 17.2 pence (2013: 17.7 pence) reflects impact of reduced rental income following disposal activity, offset by investment activity and by lower overall operating and finance costs.
Like-for-like rental growth of 2.4 per cent. Generally improving occupier demand, particularly from retailers responding to structural changes in their supply chains as a result of increased online and convenience shopping, is reflected in £35.4 million of new contracted annualised rent (up 16 per cent on 2013) from leasing and development lettings, and a sharply reduced vacancy rate to 6.3 per cent.
Investment demand for logistics remains strong: 12.3 per cent growth in portfolio valuation to £4.8 billion including a 17.1 per cent increase in the completed UK portfolio, reflecting SEGRO's strong weighting in London, the South East and the Midlands' logistics 'golden triangle'. Continental Europe completed properties increased in value by 2.2 per cent.
Development programme and well-located land bank drives medium- and long-term growth: current construction programme will deliver 240,000 sq m of new space while the well-located strategic land bank has potential to deliver an additional 1.6 million sq m in the medium term.
Final dividend increased by 0.3 pence to 10.2 pence reflecting Board's confidence in the outlook.
Commenting on the results, David Sleath, Chief Executive, said:
"2014 has been a very good year for SEGRO. The portfolio re-positioning strategy is substantially complete and the tangible benefits are showing through. Our net asset value has increased by 23 per cent and we have delivered an historically low vacancy rate of 6.3 per cent and 2.4 per cent growth in like-for-like rental income.
"The actions taken have improved the quality, resilience and growth potential of our portfolio and resulted in a lower risk capital structure.
"Looking ahead, the structural drivers of demand for our products, combined with an improving economic situation in the UK and accommodative monetary policy across all our markets, are likely to be supportive of property returns. We are taking advantage of these favourable market trends through the delivery of 240,000 sq m of new warehouse and logistics space into our markets in the coming months. We have an excellent land bank which could deliver a further 1.6 million sq m of space over the next few years. Confidence in our longer term prospects is reflected in the 0.3 pence recommended increase in the final dividend for the year."