St Modwen outlines 'strong' FY operation results

(Sharecast News) - Property investment and development firm St Modwen detailed some "strong" operational results for 2020 on Thursday, stating that the group's underlying performance had been in line with full-year expectations.
St Modwen said its industrial and logistics unit had completed 1.2m square foot of developments during the year, up from 900,000 a year earlier, and noted that it had continued to see "good customer demand", with 78% of the £7.5m estimated rental value associated with its 2020 completions already let or under offer.

In the FTSE 250-listed group's homes business, St Modwen sold 948 units, down from 1,060 in 2019, as demand "remained strong" despite nine-to-ten weeks of lost production as a result of lockdowns due to the Covid-19 pandemic.

St Modwen's strategic land and regeneration division agreed to a revision of its NCGM development agreement, which unlocked £25.0m of cash held in the joint venture's development account. However, the group did caution that a change in the discount rate of its share of the development obligations would result in a non-cash financial charge of £10.0m in its 2020 results.

Rent collections for the March and June quarters was 93%, up from 77% at the time of its half-year results in July, while rent collection for the September quarter was 80%.

Chief executive Sarwjit Sambhi said: "St Modwen has delivered strong operational results in 2020 and our underlying performance has been in line with the board's expectations.

"While the near-term economic outlook remains uncertain, momentum has continued to build, so with a strong forward order book in housebuilding, sustained demand for industrial and logistics space and a solid capital base, St Modwen is well-positioned going into 2021."

As of 0845 GMT, St Modwen shares were up 0.69% at 384.12p.