SEGRO : SGRO – results for 2013

Over 2013 SEGRO’s EPRA NAV rose by 6.1% to 312p, helped by a 4.1% like for like increase in their property valuations, but the EPRA earnings per share fell by 8.3% to 17.7p.

SEGRO sold almost £600m of property during the year at a price, on average, 4.7% higher than their value at end of 2012. Some of that money was reinvested buying £140m of modern warehouse assets and land. About £110m went on development projects. They created a joint venture, SEGRO logistics partnership (“SELP”). This new venture is buying €472m of land and assets, SEGRO is committing half of this. The rest of the money went to reduce SEGRO’s borrowings (net debt fell  by 30%). SEGRO plan to run with a long-term LTV of about 40%.

Vacancy rates rose slightly to 8.5%. Income was adversely affected by disposals, the creation of SELP and the bankruptcy of one tenant, Neckermann (= to a loss of rent of £12.2m)

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