Segro lifts interim dividend as profit rises

In the six months to the end of June, adjusted pre-tax profit increased 6.5% to £140.4m, with adjusted net asset value per share up 2.6% to 718p. The company’s portfolio value rose 0.7% to £11.2bn and the interim dividend was hiked 9.5% to 6.9p a share.

Segro also said it raised £1bn of new equity and debt financing over the period.

Chief executive David Sleath said: "The impacts of the pandemic are accelerating the adoption of technology, particularly e-commerce, across society and have resulted in a renewed focus by many occupiers on the critical importance of efficient, resilient logistics supply chains. These factors play to the quality of our portfolio and should continue to support and enhance occupier and investor demand for our prime warehouses, both in the UK and, increasingly, on the Continent.

"Our existing portfolio has performed well and our development programme has expanded, with a pipeline of additional near-term pre-let projects which is approximately twice the size of a year ago. This, combined with our well-located land bank, means we are in a strong position to make further progress in the second half of the year and beyond."

At 1015 BST, the shares were up 2.3% at 985.80p.

IG analyst Chris Beauchamp said: "Segro stands out from other listed property firms thanks to its remarkably savvy decision to invest in e-commerce warehouses. While others plumbed for offices and shopping malls, the success of the e-commerce sector has been given further impetus thanks to Covid-19.

"Today’s update points towards further growth, and while its struggling peers focus on surviving to the end of the year, for Segro the future looks bright indeed."