Industrial property group Segro PLC (LON:SGRO) gave an upbeat assessment of prospects for the year ahead as demand for 'big-box' warehouses remains very strong.
In the year to 31 December, net asset value jumped 9% to 708p per share, with adjusted profits 11% higher at £267.5mln.
The development pipeline is “healthy” said the former Slough Estates with 1.2 mln sq m of development projects under construction or in advanced pre-let discussions.
That would be an additional 15% of space and £70mln of potential rent, 71% of which is pre-let.
Segro upped the dividend by 10% to 20.7p on the back of the higher earnings.
READ: Segro sells seven big-box warehouses for £241mln
The FTSE 100-listed firm provides big-box warehouses for businesses, a sector of the property market that has been red hot due to the growth in e-commerce and urbanisation.
“Industrial remains one of the strongest performing sectors within UK real estate, benefiting from cyclical recovery in occupier demand as well as growth in online logistics,” analysts at Liberum said in a note.
Shares rose 2% to 935.4p on Friday at the opening bell, a 32% premium to NAV.