Segro share price rallies as group delivers surge in FY profits

Property investment company hikes payout to shareholders

Segro share price rallies as group delivers surge in FY profits

Shares in Segro (LON:SGRO) have jumped nearly seven percent in London this Friday, as the company revealed that its profits had soared in the year ended December 31. The property investment group further hiked its payout to shareholders and noted that it had seen strong occupier demand so far this year.

As of 10:29 GMT, Segro’s share price had added 6.92 percent to 593.60p, outperforming the broader UK market, with the benchmark FTSE 100 index currently standing 0.75 percent higher at 7,289.13 points. The group’s shares have added more than 27 percent to their value over the past year, as compared with a 0.15-percent gain in the Footsie.

Segro posts results

Segro announced in a statement today that its adjusted pre-tax profit had surged 25.7 percent in the 12 months ended December 31, 2017, attributing the rise to high customer retention rates, like-for-like rental growth and a low vacancy rate, as well as investment throughout the year. The property-investment group further noted that its adjusted earnings per share had climbed 5.9 percent to 19.9p and increased its final dividend by 6.1 percent to 11.35p per share.

“Segro has delivered another strong set of results in 2017,” the company’s chief executive David Sleath commented in the statement, adding that the group had seen ‘strong’ occupier demand across all markets in early 2018. He further noted that the prospects for rental growth in the UK remained good, while rental values in the company’s Continental Europe urban warehouse portfolio were improving.

Analysts on group

The 17 analysts offering 12-month price targets for Segro for the Financial Times have a median target of 600.00p on the shares, with a high estimate of 660.80p and a low estimate of 490.00p. As of February 10, the consensus forecast amongst 19 polled investment analysts covering the blue-chip group has it that the company will outperform the market. 

As of 10:51 GMT, Friday, 16 February, SEGRO plc share price is 589.40p.

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