(Alliance News) - London-based Segro PLC on Friday said record lettings boosted its performance in 2020.
The FTSE 100-listed property investment and development company reported a record leasing and asset management performance with GBP77.9 million of new headline rent in 2020, up 18% year-on-year, including GBP41.1 million of new pre-let agreements, up from GBP33.2 million a year ago.
The company reported a 10% increase in its portfolio valuation as at the end of 2020 to GBP13.00 billion. Segro said its portfolio benefited from increased customer demand for modern warehouse space.
Net asset value per share increased to 809 pence from 697p posted at the end of 2019.
Segro said its pretax profit jumped by 62% year-on-year to GBP1.46 billion, thanks to a 2.1% like-for-like net rental income growth, aided by an average 19% uplift on rent reviews and renewals.
The company declared a 2020 dividend increase by 6.8% to 22.1 pence a share. Final dividend increased by 5.6% to 15.2 pence.
"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," said Chief Executive David Sleath.
"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," added Sleath.
By Evelina Grecenko; evelinagrecenko@alliancenews.com
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Segro (SGRO)