28th Jul 2015 07:17
LONDON (Alliance News) - FTSE 250-listed property developer SEGRO PLC on Tuesday said its pretax profit for the first half of 2015 pushed higher as its net asset value rose and it slightly hiked its interim dividend payout, while its chairman said he will step down next year.
The company, which invests in warehouse and industrial property, said its pretax profit for the six months to the end of June was GBP330 million, up from GBP226.5 million a year earlier, primarily thanks to a rise in its portfolio valuation as its gross rental income fell to GBP101.2 million from GBP107.5 million, which pulled total revenue down to GBP117.4 million from GBP137.6 million.
SEGRO said its net asset value in the half rose to 416 pence, up 8.3%, on the back of improving asset values and strong investor demand for its asset classes.
The group said its current construction programme will deliver 332,400 square foot of new space in the full-year and said its remaining land bank will contribute a further 2 million square foot in the medium term, adding a further GBP73 million of new rent to its books.
SEGRO's interim dividend was increased by 2% to 5 pence per share, up from 4.9 pence.
"2015 is shaping up to be another good year for SEGRO with strong operating metrics and portfolio performance, as the benefits of the portfolio re-shaping programme continue to be felt. We have experienced particularly strong demand from parcel delivery companies, third party logistics operators and retailers as economic conditions in our major markets continue to improve," said Chief Executive David Sleath.
In a separate statement, SEGRO said Chairman Nigel Rich has notified the company that he intends to step down following its annual general meeting in 2016.
SEGRO shares were up 0.3% to 430.7 pence on Tuesday morning.
By Sam Unsted; [email protected]; @SamUAtAlliance
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