Property & Construction

Slough: SEGRO forecasts 2016 NAV at top end of forecasts

Published by
TBM Team

SEGRO has delivered a 4.8% like-for-like rise in the value of its portfolio in 2016, thanks in part to strong rental growth and development gains in the UK and Europe. As a result, SEGRO expects its EPRA NAV per share at December 31, 2016 to be at the upper end of the range of analysts' estimates, once also taking into account the impact of the equity placing in September 2016.

The warehouse developer said modest yield compression, driven by active management of its assets and strong investor demand, together with strong rental-value growth in the UK, the generation of development gains, and an uplift in the value of a former industrial estate in Park Royal, which it has conditionally agreed to sell, have all contributed to the rise in the value of its portfolio, which was up 3% in the second half of 2016.

SEGRO’s adjusted earnings per share for the year is also expected to be at the upper end of the range after a strong fourth quarter, with good leasing activity and strong like-for-like rental growth, particularly in the UK, and further encouraging progress with the development pipeline.

The company has completed 19 of the 27 development projects in the active programme and said the pipeline at  December 31, 2016, includes a number of new pre-let agreements, with further agreements under discussion.

Credit CoStar

TBM Team

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