(Alliance News) - Segro PLC on Friday topped expectations in its 2021 results and signalled confidence over the year ahead.
The industrial property investor reported an adjusted net asset value per share of 1,137 pence at the end of 2021, up 40% from 814p a year before. This beat company-compiled consensus of 998p.
This was driven by portfolio valuation growth of 29%, including estimated rental value growth of 13%. Segro's portfolio comprises two main asset types: urban warehouses and big box warehouses.
"2021 was an exceptionally busy year for Segro as our teams worked hard to capitalise on the favourable market dynamics that are currently benefiting the industrial property sector. The pandemic brought about the acceleration of already strong structural drivers, resulting in record levels of warehouse take-up across Europe during 2021 and this has attracted increased investment into the sector," the company said.
Pretax profit for 2021 multiplied to GBP4.36 billion from GBP1.46 billion in 2020.
"2021 was a highly successful year for Segro as reflected in our full year results which include a GBP4.1 billion portfolio valuation uplift and record levels of rental growth. Investor and occupier supply-demand dynamics in the industrial and logistics sector remain very favourable, led by the long-term trends of digitalisation, supply chain resilience and an increasing focus on sustainability," said Chief Executive David Sleath.
The firm said it enters 2022 with "considerable confidence", expecting rental growth to continue across its markets.
Segro added that it expects to be able to offset inflationary pressures by capturing a "significant reversion in lease reviews and renewals".
"The unique supply-demand dynamics of the industrial sector have attracted increasing competition from both investors and developers, but we are confident in our ability to source profitable new opportunities to grow," said Segro.
The company raised its full-year dividend by 10% to 24.3 pence from 22.1p the year before.
Shares in Segro were down 0.4% at 1,272.50p in London early Friday, having started up at 1,388.00p.
By Lucy Heming; lucyheming@alliancenews.com
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Segro (SGRO)