Segro to make £450m placing as profits soar

Warehouse landlord Segro said today that it is planning to raise £450m as it looks to ramp up development amid a boom in demand for storage space from online retailers.

Britain’s largest listed property firm, which also posted a double-digit profit rise in its full-year results this morning, has proposed a placing of shares to fund a new property pipeline.

The plans come in the wake of growing appetite for industrial and warehouse property, which has seen growth following take-up from online food and retail giants renting out more delivery units.

"2018 has been a successful year for Segro," according to David Sleath, chief executive of Segro.

Sleath added: "The extensive development activity that has been our focus over the past few years, the success of which has been underpinned by the structural themes of e-commerce and urbanisation driving occupier demand, means we now have portfolio of very high quality and well-located warehouses."

The figures

Adjusted pre-tax profit hit £241.5m in the 12 months to 31 December, rising 24.4 per cent from the previous year.

Vacancy rates rose from four per cent to 5.2 per cent, which the company said was due to completion of speculative developments during the period.

The group also said that 1.3m sq m of development projects were under construction or in advanced pre-let discussions, with projects under construction expected to earn £46m of rent.

2018 full year dividend increased by 13.3 per cent to 18.8p, compared with 16.6p in the year before.

Segro's portfolio capital value grew 10.7 per cent, which it said was driven by a 12 per cent increase in the like-for-like value of its UK portfolio.