Strong operating and portfolio performance reflects the active management of our assets, positive market dynamics and the strategic repositioning of our portfolio, which is now almost exclusively focused on industrial and logistics properties. Occupier and investor appetite for modern warehouses in prime locations continues to be underpinned by a favourable macro-economic environment, limited supply of new space and structural changes in the nature of consumer demand towards online and convenience retailing. Retailers, parcel delivery companies and third party logistics providers are responding to these changes by restructuring their supply chains, in which modern storage and distribution warehouses in the right places play a vital role.
IFRS profit before tax of £686.5 million (2014: £654.4 million) combines higher underlying profits with another year of significant capital value growth.
Adjusted EPS of 18.4 pence represents a 7 per cent increase from 2014 (17.2 pence), driven by improving like-for-like rental income, a record low vacancy rate of 4.8 per cent, new developments, acquisitions and lower financing and operating costs.
21 per cent increase in EPRA NAV per share to 463 pence reflecting capital value increases from a high quality portfolio which has benefited from yield shift and rental growth, particularly in the UK, as well as gains from developments and profits on disposal.
Development programme and well-located land bank to drive significant future growth. The current construction programme and medium term development projects are capable of delivering annual rental income of approximately £109 million, equivalent to 38 per cent of SEGRO's current income stream, over the next five years.
Final dividend increased by 3.9 per cent to 10.6 pence (2014: 10.2 pence).
Commenting on the results, David Sleath, Chief Executive, said:
"2015 has been another very good year for SEGRO and we are reporting strong results. The outlook for occupational demand remains encouraging and the new year has started well, with a healthy pipeline of lettings and new development opportunities. Whilst there are a number of broader economic and geopolitical uncertainties, we are confident that our portfolio is well positioned to be able to deliver growth and outperform the wider property market."