· SEGRO announces a strong set of operating, financial and portfolio performance metrics, and another record year of development, the majority of which has already been leased.
· Adjusted pre-tax profit, up 24.4 per cent, reflects our development success and our focus on customer and portfolio management, which delivered high customer retention rates, like-for-like rental growth and a low vacancy rate.
· Adjusted EPS of 23.4 pence, including 1.2 pence net impact from a performance fee from SELP.Excluding the (non-recurring) performance fee, the adjusted EPS would be 22.2 pence, an increase of 11.6 per cent compared to 2017 (19.9 pence). IFRS EPS of 105.4 pence (2017: 98.5 pence) also includes the impact of the 10.7 per cent increase (2017: 13.6 per cent increase) in the value of our portfolio.
· EPRA NAV per share up 16.9 per cent to 650 pence (31 December 2017: 556 pence).
· Future earnings prospects 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 £46 million of rent, almost three quarters of which has been secured through pre-lets and lettings prior to completion. Our land bank and land under our control provide significant potential for further growth.
· 2018 full year dividend increased by 13.3 per cent to 18.8 pence (2017 dividend: 16.6 pence). Final dividend increased by 16.7 per cent to 13.25 pence (2017: 11.35 pence).
Commenting on the results, David Sleath, 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.”
FINANCIAL SUMMARY
|
Income statement metrics |
2018 |
2017 |
Change |
|
Adjusted1 profit before tax (£m) |
241.5 |
194.2 |
24.4 |
|
IFRS profit before tax (£m) |
1,099.1 |
976.3 |
12.6 |
|
Adjusted2 earnings per share (pence) |
23.4 |
19.9 |
17.6 |
|
IFRS earnings per share (pence) |
105.4 |
98.5 |
7.0 |
|
Dividend per share (pence) |
18.8 |
16.6 |
13.3 |
|
Balance sheet metrics |
31 December |
31 December 2017 |
Change |
|
Portfolio valuation (SEGRO share, £m) |
9,425 |
8,039 |
10.75 |
|
EPRA3 4 net asset value per share (pence, diluted) |
650 |
556 |
16.9 |
|
IFRS net asset value per share (pence, diluted) |
644 |
554 |
16.2 |
|
Group net borrowings (£m) |
2,177 |
1,954 |
– |
|
Loan to value ratio including joint ventures at share (per cent) |
29 |
30 |
– |
FINANCIAL CALENDAR
2018 final dividend ex-div date 21 March 2019
2018 final dividend record date 22 March 2019
2018 final dividend scrip dividend price announced 28 March 2019
2018 final dividend payment date 2 May 2019
2019 First Quarter Trading Update 17 April 2019
Half Year 2019 Results 23 July 2019