Segro’s full-year profit jumps 62% due to increased property valuations

Written by: Wajeeh Khan
February 19, 2021
  • Segro's full-year profit jumps 62% due to increased property valuations.
  • The real estate investment trust reports £431.7 million of annual revenue.
  • Segro plc raises its final dividend to 15.2 pence per share on Friday.

Segro plc (LON: SGRO) said on Friday that its full-year pre-tax profit jumped 62% in 2020 due to increased property valuations. The company also relaunched its sustainability plan on Friday.

Segro shares opened about 1.5% up on Friday and gained another 2% in the next hour. The stock is now trading at £9.87 per share versus £6.59 per share in March 2020. The price action should come in handy if you’re interested in investing in the stock market.

Segro plc reports £902 million of pre-tax profit in 2020

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Segro said that its profit before tax printed at £1.46 billion in 2020 versus £902 million in the previous year. Excluding non-recurring and exceptional items, its pre-tax profit on an adjusted basis came in at £296.5 million versus the year-ago figure of a lower £267.5 million.

The real estate investment trust valued its revenue in the recently concluded year at £431.7 million. Its revenue stood at a slightly higher £432.5 million last year. At 814 pence per share, EPRA net asset value as of 31st December was also higher than 700 pence per share at the same time last year.

Segro’s board also decided in favour of lifting the final dividend on Friday to 15.2 pence per share that pushed its full-year pay-out up to 22.1 pence per share. In 2019, the property investment and development company had made 20.7 pence per share of full-year payment. Segro’s financial report comes a week after its peer, Redrow said that its profit climbed 11% in the fiscal first half.

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Segro relaunches ‘Responsible Segro Framework’ on Friday

As part of its “Responsible Segro Framework” sustainability plan that it relaunched on Friday, Segro said that it was now aiming to turn net-carbon neutral by 2030. The London-based firm will also focus more on nurturing talent and expand its investments in local communities.

In a comment on Friday, CEO David Sleath said:

“The pandemic has reinforced the importance of efficient and resilient distribution networks to facilitate the provision of a wide variety of goods and services, leading to increased demand for warehouse space.”

Last month, Segro received a go-ahead to build London’s greenest industrial estate. The British company performed only slightly upbeat in the stock market last year with an annual gain of roughly 5%.

At the time of writing, Segro plc is valued at £11.74 billion and has a price to earnings ratio of 16.06.