Segro PLC on Friday said it swung to an annual loss due to a property loss, despite revenue rising. It lifted its dividend by 8.2% amid the higher income.
Segro is an owner, asset manager and developer of warehouse and industrial properties.
The London-based real estate investment trust swung to a pretax loss of £1.93 billion in 2022 from a profit of £4.06 billion in 2021. This came as Segro booked a realised and unrealised property loss of £1.95 billion in the year, compared to a gain of £3.67 billion the year prior.
Adjusted pretax profit, however, was up 8.4% to £386 million for 2022 from £356 million a year ago. Adjusted earnings per share rose 6.5% to 31.0 pence from 29.1p, in line with consensus.
Net asset value as at December 31, however, was down 15% to 966p per share from 1,137p on the same date a year ago, driven by a portfolio valuation decline of 11%. This was due to a market-wide yield expansion in the second half, ‘partly offset by estimated rental value growth of 10.9%, portfolio asset management successes and development profits,’ Segro explained.
This is in line with company-compiled market consensus.
More positively, revenue rose 8.4% to £669 million from £546 million as net rental income was up 19% to £522 million from £439 million a year ago, driven by strong like-for-like rental growth of 6.7% and development completions.
Chief Executive Officer David Sleuth said: ‘Segro is today reporting strong operational results for 2022, including a record level of rent roll growth driven by our active asset management and a strong leasing performance. Our modern, well-located and highly sustainable warehouses continue to be in high demand from a diverse range of occupiers, underpinned by long-term structural drivers.’
Segro declared a full-year dividend of 26.3p per share, up 8.2% from 24.3p a year prior.
Looking ahead, Segro noted strong occupier demand, with £98 million of new headline rent commitment during 2022, up from £95 million in 2021.
Shares were up 0.2% at 837.60 pence each on Friday morning in London.
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