Segro plc stakeholders have their eyes on the FTSE 100 property investment company's rental growth in the build-up to next week’s fourth-quarter earnings call on Friday, 16 February.
Analysts at UBS are cautiously optimistic, stating that Segro’s rental growth “had been volatile but showing signs of stabilisation”.
Though occupancy rates have remained strong throughout the year (above 95% at last count), total new headline rent signed has lagged, with the third quarter's £58 million outcome representing a 24% year-on-year decline.
With the market eyeing a trough in valuations, portfolio revaluations will be another key metric to look for.
“Segro’s portfolio was already marked down 20% in value, thus investors would look for signs of stabilisation in this new portfolio valuation update,” said UBS.
Segro is also at pains to bring its net debt/EBITDA ratio below 10%. Part of that strategy will be disposing of assets.
The group had already disposed of £250 million worth of properties by the end of the third quarter, implying average quarterly disposals of between £80 million and £85 million.
UBS reiterated its buy recommendation on Segro stock with a 950p price target against an 841p publication price.