Coronavirus Update

Segro PLC: Results for the Year Ended 31st December 2020

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Commenting on the results, David Sleath, Chief Executive, said:

“SEGRO delivered another strong set of financial results in 2020, with record lettings driven by our customer focus and the increasing demand for prime industrial properties from a wide occupier base.

“The pandemic has reinforced the importance of efficient and resilient distribution networks to facilitate the provision of a wide variety of goods and services, leading to increased demand for warehouse space. 2020 saw a record level of investment for SEGRO as we seek to capitalise on these favourable trends, giving us confidence in our ability to drive further growth in rental income, earnings and dividends over the coming years.

“We have also reviewed, challenged and refreshed our approach to sustainability. Today we are re-launching our Responsible SEGRO framework, with three long-term priorities that outline our commitment to society and position us to truly deliver on our Purpose of ‘creating the space that enables extraordinary things to happen’.”


  • Adjusted pre-tax profit of £296.5 million up 10.8 per cent compared with the prior year (2019: £267.5 million). Adjusted EPS is 25.4 pence (2019: 24.4 pence).
  • Adjusted NAV per share is up 16.3 per cent to 814 pence (2019: 700 pence) mainly due to a 10.3 per cent increase in the valuation of the portfolio driven by asset management, our development activity and yield compression.
  • A record leasing and asset management performance with £77.9 million of new headline rent in 2020, including £41.1 million of new pre-let agreements.
  • Net capital investment of £1.3 billion through key strategic asset acquisitions, development projects and land purchases.
  • Near-term earnings prospects underpinned by 1.2 million sq m of development projects under construction or in advanced pre-let discussions equating to £81 million of potential rent, of which 75 per cent has been pre-let, substantially de-risking the 2021 pipeline.
  • Over £1 billion of new equity and debt financing, helping to strengthen the balance sheet for further, development-led growth. LTV of 24 per cent at 31 December 2020.
  • 2020 full year dividend increased by 6.8 per cent to 22.1 pence (2019: 20.7 pence). Final dividend increased by 5.6 per cent to 15.2 pence (2019: 14.4 pence).


Today we also re-launch our Responsible SEGRO framework with three new long-term focus areas where we believe we can make the greatest business, environmental and social impact and where we are setting challenging and ambitious goals.

  • We will Champion low-carbon growth and will be net-carbon neutral by 2030 driven by changes in our development activity and the operation of our existing buildings.
  • We will Invest in our local communities and environments through the creation and implementation of Community Investment Plans for every key market in our portfolio. These will focus on supporting local business and economies, the development of training and employment opportunities and enhancing the local environment.
  • We will Nurture talent and will provide a healthy and supportive working environment, develop fulfilling and rewarding careers, foster an inclusive culture and build a more diverse workforce.


Income statement metrics






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Adjusted1 profit before tax (£m)







IFRS profit before tax (£m)







Adjusted2 earnings per share (pence)







IFRS earnings per share (pence)







Dividend per share (pence)







Balance sheet metrics


31 December


31 December


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Portfolio valuation (SEGRO share, £m)







Adjusted4 5 net asset value per share (pence, diluted)







IFRS net asset value per share (pence, diluted)







Net debt (SEGRO share, £m)






Loan to value ratio including joint ventures at share (per cent)






1. A reconciliation between Adjusted profit before tax and IFRS profit before tax is shown in Note 2 to the condensed financial information.

2. A reconciliation between Adjusted earnings per share and IFRS earnings per share is shown in Note 11 to the condensed financial information.

3. Percentage valuation movement during the period based on the difference between opening and closing valuations for all properties including buildings under construction and land, adjusting for capital expenditure, acquisitions and disposals.

4. A reconciliation between Adjusted net asset value per share and IFRS net asset value per share is shown in Note 11 to the condensed financial information.

5. Adjusted net asset value is in line with EPRA Net Tangible Assets (NTA) which was introduced for accounting periods starting from 1 January 2020 (see Table 5 in the Supplementary Notes for a NAV reconciliation). The 31 December 2019 adjusted net asset value has been restated to align with the definition of EPRA NTA. Calculations for EPRA performance measures are shown in the Supplementary Notes to the condensed financial information.


A Figures quoted on pages 1 to 19 refer to SEGRO’s share, except for land (hectares) and space (square metres) which are quoted at 100 per cent, unless otherwise stated. Please refer to the Presentation of Financial Information statement in the Financial Review for further details.


Strong valuation gains driven by rental value growth, development gains, yield compression and active asset management of the standing portfolio.

  • Portfolio capital valuation surplus of 10.3 per cent driven by a 9.2 per cent increase in the like-for-like value of our UK portfolio(2019: 2.5 per cent) and 10.2 per cent in Continental Europe (2019: 13.5 per cent).
  • 2.5 per cent rental value growth across the portfolio (UK: 3.1 per cent, Continental Europe: 1.5 per cent)

Portfolio benefiting from increased customer demand for modern warehouse space whilst proving resilient to the impacts of the pandemic.

  • 18.3 per cent increase in annualised new rent commitments during the period to £77.9 million (2019: £65.8 million), of which £41.1 million (2019: £33.2 million) is from new development.
  • 2.1 per cent like-for-like net rental income growth (0.9 per cent in the UK, 4.3 percent in Continental Europe) aided by an average 19.1 per cent uplift on rent reviews and renewals. The UK figures include the significant impact of the final lease re-gear at the Heathrow Cargo Centre.
  • Vacancy rate remains low at 3.9 per cent (31 December 2019: 4.0 per cent) and customer retention high at 86 per cent (2019: 88 per cent), due to increased demand for space in our high-quality, well located portfolio and focus on excellent customer service inherent within our platform.

Growing the rent roll through the active development pipeline with significant additions to the land bank securing opportunities for further growth.

  • 835,900 sq m of development completions during 2020, potentiallyadding £47 million of rent, of which £39 million has been secured. We are targeting BREEAM ‘Excellent’ or ‘Very Good’ (or local equivalent) on 93 per cent of the eligible completions.
  • £54 million of potential rent from current development pipeline, 66 per cent of which has been secured. A further £27 million of potential rent from ‘near-term’ pre-let projects which are in advanced stages of negotiation.
  • £286 million added to our land bank during the period across key markets.

£1.3 billion of net investment to position the business to respond to the acceleration of structural drivers.

  • £603 million of asset acquisitions in key strategic markets as well as £817 million invested in development capex, infrastructure and land. Partially offset by £139 million of asset and land sales.
  • Development capex for 2021, including infrastructure, expected to exceed £700 million.

Strong balance sheet provides significant capacity to invest for future growth.

  • SEGRO continues to be appropriately and efficiently financed. The average cost of debt remains attractive at 1.6 per cent (2019: 1.7 per cent), with long average debt maturity of 9.9 years (2019: 10.0 years) and low look-through LTV ratio of 24 per cent (31 December 2019: 24 per cent).
  • Equity placing of £680 million completed in June 2020 and issuance of €450 million US Private Placement notes ensures the balance sheet is positioned for further development-led growth.
  • SEGRO has £1.2 billion of cash and available facilities at its disposal.