SEGRO PLC (LSE:SGRO) has posted surging profit and hiked its final dividend by 11% to 16.9p.
In results for the year ended December 31, 2021, the British warehousing firm reported pre-tax profits of £356mln, a 20% increase over the prior year.
Revenue increased to £546mln from £432mln the year before.
The company has seen an increase in adjusted net asset value (NAV) - an industry metric - from 814p a share to 1,137p a share as a result of its portfolio revaluation. With net rental income up £17mln (4.9%) from the year-ago period, the company looks confident about the year ahead.
The property investment and development company's final dividend makes its total payout for the year 24.3p.
Across its markets, the company said rapid delivery services are growing in popularity. The company has seen higher gains on its wholly-owned investment properties. With increased portfolio size, property operating expenses grew from £88mln to £100mln in 2021.
Inflationary pressures remain but it expects to be able to offset these in its existing portfolio by capturing the significant reversion in lease reviews and renewals while benefiting from indexation provisions in its remaining leases which represent roughly 40% of its rent roll, the company said.
David Sleath, the chief executive of SEGRO said, "Investor and occupier supply-demand dynamics in industrial and logistics sector remain very favourable."