Strong End of 2016 - Valuation and Trading Update
SEGRO plc ('SEGRO') provides an update on its valuation and trading ahead of its full year results for the year ended 31st December 2016, which are due to be published on Friday 17th February 2017. All figures published in this release are unaudited.
The independent valuation of SEGRO's assets as of December 31, 2016 indicates a comparable year-to-date portfolio appreciation of 4.8 percent or 3.0 percent in the second half of 2016. This is the result of a combination of strong rental value growth in the UK portfolio, supported by modest yield compression over the year (reflecting the active management of our assets as well as strong investor demand for quality warehouses), generation of development gains in the UK and continental Europe and an appreciation in the value of a former industrial estate in Park Royal, which SEGRO has conditionally agreed to sell to a housing developer.
Taking into account the overall valuation increase as well as the effects of the share placement in September 2016, SEGRO expects that the EPRA NAV per share as of December 31, 2016 will be at the upper end of the range of analyst estimates 1 .
Since the trading update in October 2016, SEGRO has continued to deliver strong operational performance, with good leasing activity and strong like-for-like rental growth, particularly in the UK, and further encouraging progress in the development pipeline. Nineteen of the 27 developments in the active program as of June 30, 2016 have been completed and the pipeline as of December 31, 2016 includes a number of new pre-lease agreements, with additional agreements under discussion.
As a result, SEGRO expects EPRA EPS for the year ended December 31, 2016 to be at the high end of the analyst estimate range 2 .
For more information please contact:
Harry Stokes (Head of Investor Relations and Research)
Tel: +44 (0) 20 7451 9124 / email@example.com
Sarah Lockhart (External Communications Manager)
Tel: +44 (0) 20 7451 9118 / firstname.lastname@example.org
Richard Sunderland / Claire Turvey (FTI Consulting)
Tel: +44 (0) 20 3727 1000
SEGRO is a UK Real Estate Investment Trust (REIT) and a leading owner, manager and developer of modern warehouse and light industrial properties. The company owns or manages over six million square meters of space valued at £7.4 billion and serves clients across a wide range of industries. Its properties are in and around major cities and major transport hubs in the UK and nine other European countries.
1. The current range of 14 sell-side analysts' estimates for EPRA NAV as at 31st December 2016 is between 459p and 499p, with an average of 478p.
2. The current range for 14 sell-side analysts' estimates of adjusted earnings per share for the year ended 31st December 2016 is from 18.4p to 19.7p, with an average of 19.1p.