(Alliance News) - SEGRO PLC on Friday said 2019 was another year of strong financial and operational performance supported by rental growth and additional income generated from its development pipeline.
The real estate investment trust also upped its dividend payment for the year and added that it has made strong start to 2020 due to continuation of the earnings momentum.
For 2019, the FTSE 100-listed company recorded pretax profit of GBP902.0 million, down 18% from GBP1.09 billion in 2018, mainly due to lower realised and unrealised gains in its wholly-owned portfolio.
Adjusted pretax profit, however jumped 11% to GBPP267.5 million from GBP241.5 million due to a record year of development completions, high customer retention rates, like-for-like rental growth and a low vacancy rate.
Revenue for the year increased 18% to GBP432.5 million. Net rental income increased by GBP33.7 million to GBP281.3 million, reflecting positive net impact of like-for-like rental growth, development completions and investment activity, offset by the impact of disposals.
SEGRO recorded 4.7% like-for-like net rental income growth in 2019 and its vacancy rate declined to 4% from 5.2%.
The company's annual EPRA net asset value per share increased 8.9% year-on-year to 708 pence from 650p. IFRS NAV per share was 697p, up from 644p.
For 2020, SEGRO is predicting further rental growth, with an increasing contribution from continental Europe, and the potential for further upside in the UK as the country's future relationship with the EU becomes clearer.
"Our substantial, mostly pre-leased development pipeline, along with the ongoing results from the active asset management of our existing portfolio, should enable us to drive further sustainable, compound growth in rental income, earnings and dividends over the coming years," said Chief Executive David Sleath.
SEGRO has raised its final payout for 2019 by 8.7% to 14.4p, giving a total payout of 20.7p, up 10%.
Shares in SEGRO were trading 2.1% higher at 934.49 pence each in London on Friday morning.
By Tapan Panchal; tapanpanchal@alliancenews.com
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Segro (SGRO)