FTSE100 logistics and warehouse developer, SEGRO, today reports its FY22 results showing a record level of rent roll growth following active asset management and a strong leasing performance against a backdrop of continued strong, structurally supported occupier demand.

SEGRO continues to serve a diverse mix of customers’ international, regional and local distribution needs through a mix of high quality big box and urban warehouses located across the UK and Continental Europe.

We provide below a short summary of the key highlights, as follows:

  • Adjusted pre-tax profit of £386 million up 8.4 per cent compared with the prior year
  • Adjusted EPS increased by 6.5 per cent to 31.0 pence
  • 2022 full year dividend increased 8.2 per cent to 26.3 pence. Final dividend increased by 7.7 per cent to 18.2 pence
  • Net rental income of £522 million, up 18.9 per cent
    • Driven by strong like-for-like rental growth of 6.7 per cent and development completions
  • Record £98 million of new headline rent commitments following strong occupier demand and SEGRO’s customer focus including £41 million of new pre-let agreements and a 23 per cent average uplift on rent reviews and renewals
  • Market wide yield expansion in the second half, partly offset by estimated rental value growth (ERV) of 10.9 per cent, portfolio asset management successes and development profits, led to a 15.0 per cent decrease in adjusted NAV per share to 966 pence
  • 639,200 sq m of development completions delivered during 2022, at a yield on cost of 7.4 per cent. 80 per cent of this is already let to customers from a diverse range of sectors
  • Continued momentum in the development pipeline with 915,600 sq m of projects under construction or in advanced pre-let discussions equating to £86 million of potential rent (75 per cent has been or is expected to be pre-let), supporting growth in future earnings over the year ahead and into 2024
  • £3.1 billion of new financing helping to maintain SEGRO’s long-average debt maturity of 8.6 years and providing high visibility on funding costs with no significant near-term debt maturities
  • Average cost of debt at 31 December 2022 of 2.5 per cent, and interest cover of 4.5 times
  • Strong balance sheet providing capacity to invest into the development programme and allowing flexibility to make further commitments
  • SEGRO has access to £2.2 billion of available liquidity and a modest level of gearing reflected in LTV of 32 per cent at 31 December 2022