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SEGRO PLC (SGRO) - Final Results 31 Dec 2018

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IanTHughes
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SEGRO PLC (SGRO) - Final Results 31 Dec 2018

#201493

Postby IanTHughes » February 15th, 2019, 9:08 am

Can be found here ……..

https://www.investegate.co.uk/segro-plc ... LC%20Alert

· SEGRO announces a strong set of operating, financial and portfolio performance metrics, and another record year of development, the majority of which has already been leased.
· Adjusted pre-tax profit, up 24.4 per cent, reflects our development success and our focus on customer and portfolio management, which delivered high customer retention rates, like-for-like rental growth and a low vacancy rate.
· Adjusted EPS of 23.4 pence, including 1.2 pence net impact from a performance fee from SELP. Excluding the (non-recurring) performance fee, the adjusted EPS would be 22.2 pence, an increase of 11.6 per cent compared to 2017 (19.9 pence). IFRS EPS of 105.4 pence (2017: 98.5 pence) also includes the impact of the 10.7 per cent increase (2017: 13.6 per cent increase) in the value of our portfolio.
· EPRA NAV per share up 16.9 per cent to 650 pence (31 December 2017: 556 pence).
· Future earnings prospects underpinned by 1.3 million sq m of development projects under construction or in advanced pre-let discussions. The projects under construction are all due to complete in 2019 and are expected to generate £46 million of rent, almost three quarters of which has been secured through pre-lets and lettings prior to completion. Our land bank and land under our control provide significant potential for further growth.
· 2018 full year dividend increased by 13.3 per cent to 18.8 pence (2017 dividend: 16.6 pence). Final dividend increased by 16.7 per cent to 13.25 pence (2017: 11.35 pence).

FINANCIAL CALENDAR
2018 final dividend ex-div date - 21 March 2019
2018 final dividend record date - 22 March 2019
2018 final dividend scrip dividend price announced - 28 March 2019
2018 final dividend payment date - 2 May 2019
2019 First Quarter Trading Update - 17 April 2019
Half Year 2019 Results - 23 July 2019



Ian

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Re: SEGRO PLC (SGRO) - Final Results 31 Dec 2018

#201497

Postby daveh » February 15th, 2019, 9:26 am

They are also making a share placing to raise more money for future developments:

www.investegate.co.uk/article.aspx?id=2 ... 1911Q&fe=1

Highlights

· Proposed Placing of new ordinary shares to raise approximately £450 million of gross proceeds to fund SEGRO's pipeline of development opportunities.

· New equity will allow the Group to take advantage of existing and new, largely pre-let, development opportunities while maintaining a strong balance sheet.

· Development pipeline expected to be accretive in the medium term to both earnings and net asset value per share after taking account of the impact of the Placing.

· Occupier market conditions remain strong, leading to good leasing momentum. Pre-let agreements equating to £41.5 million of headline rent were signed during 2018, all of which are due to complete in 2019.

· On track to invest over £600 million in development capex, infrastructure and land in 2019, following £688 million invested in 2018, £507 million in 2017 and £457 million in 2016. Completions since 2016 have generated an estimated, fully-let gross yield on total development cost of approximately 8 per cent, compared to an investment valuation (net true equivalent) yield of just over 5 per cent.

Approximately £430 million of future development capital expenditure across the Group already agreed or in advanced discussions. In addition to the £211 million required to complete the current development pipeline as at 31 December 2018, further potential investment of £218 million relates to development projects associated with pre-let agreements subject to planning or in advanced negotiations. Further, mostly pre-let, development projects are expected to be added to the pipeline over the coming months.

· New land acquisitions exchanged or under discussion to sustain future development activity. SEGRO has exchanged contracts to acquire, over the next two years, £200 million of land, subject to receipt of planning permission. In addition, it has another £70 million of land acquisitions under offer, which will enable the Group to sustain its development activity in the years ahead.

· Pipeline largely de-risked through pre-leasing. The current development pipeline, under construction as at 31 December 2018, is expected to generate £45.9 million of headline rent once completed and fully let, of which 73 per cent has been secured. This equates to a yield on total development cost of approximately 7 per cent. The Board intends to continue with this largely pre-let approach to development in the future.

· Continuing focus on disciplined capital management and recycling. £442 million of gross proceeds in 2018 from disposals of land and assets. Disposals of land and assets in 2019, including sales to the SELP joint venture, are expected to total between £150 million and £250 million.

· Placing shares will have the right to receive the 2018 final dividend of 13.25 pence, payable on 2 May 2019 to shareholders on the register as at 21 March 2019.




Probably better than increasing debt, but should they be eligible for the final dividend as they weren't invested at the time the profits were made that are paying the dividend? Though I guess if they weren't eligible for the final dividend the price they would get for the shares would be lower by the value of the dividend.

tjh290633
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Re: SEGRO PLC (SGRO) - Final Results 31 Dec 2018

#201509

Postby tjh290633 » February 15th, 2019, 10:11 am

The placing is being made cum-dividend, so they are paying for their own dividend.

TJH

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Re: SEGRO PLC (SGRO) - Final Results 31 Dec 2018

#201563

Postby supremetwo » February 15th, 2019, 1:27 pm

And stuff the existing shareholders. :x

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Re: SEGRO PLC (SGRO) - Final Results 31 Dec 2018

#201579

Postby TheRIT » February 15th, 2019, 2:36 pm

daveh wrote:They are also making a share placing to raise more money for future developments:

http://www.investegate.co.uk/article.as ... 1911Q&fe=1
...


Have they published any details yet? My SGRO REIT is within a SIPP. Given my total portfolio is a little under weight property I'd probably buy into this if a discount was offered but would need to hold back on dividend reinvesting elsewhere to do so.

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Re: SEGRO PLC (SGRO) - Final Results 31 Dec 2018

#201589

Postby daveh » February 15th, 2019, 3:18 pm

TheRIT wrote:
daveh wrote:They are also making a share placing to raise more money for future developments:

http://www.investegate.co.uk/article.as ... 1911Q&fe=1
...


Have they published any details yet? My SGRO REIT is within a SIPP. Given my total portfolio is a little under weight property I'd probably buy into this if a discount was offered but would need to hold back on dividend reinvesting elsewhere to do so.


Yes
SEGRO plc (the "Company" or "SEGRO") announces the successful completion of the placing of ordinary shares announced earlier today (the "Placing").

The placing raised gross proceeds of approximately £451 million for the Company. A total of 71,000,000 new ordinary shares in the Company ("Placing Shares") have been placed by Merrill Lynch International ("BofA Merrill Lynch") and UBS AG London Branch ("UBS", together with BofA Merrill Lynch, the "Joint Bookrunners") at a price of 635.0 pence per Placing Share, a discount of 2.0 per cent to the closing share price of 648.2 pence on 14 February 2019. The Placing Shares being issued represent approximately 7.0 per cent of the issued ordinary share capital of SEGRO.


www.investegate.co.uk/article.aspx?id=2 ... 2577Q&fe=1

I'm afraid your too late and of course it was only open to institutional investors. I assume a placing is easier, cheaper and definitely much quicker for the company than a rights issue for such a small % of new shares.

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Re: SEGRO PLC (SGRO) - Final Results 31 Dec 2018

#201592

Postby TheRIT » February 15th, 2019, 3:25 pm

daveh wrote:...
http://www.investegate.co.uk/article.as ... 2577Q&fe=1

I'm afraid your too late and of course it was only open to institutional investors. I assume a placing is easier, cheaper and definitely much quicker for the company than a rights issue for such a small % of new shares.


Thanks and that's a shame but hey ho. More dividends into one of HSTN, SGRO, BLND, HMSO and/or PHP it is then.

MDW1954
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Re: SEGRO PLC (SGRO) - Final Results 31 Dec 2018

#201686

Postby MDW1954 » February 15th, 2019, 11:47 pm

TheRIT wrote:
daveh wrote:...
http://www.investegate.co.uk/article.as ... 2577Q&fe=1

I'm afraid your too late and of course it was only open to institutional investors. I assume a placing is easier, cheaper and definitely much quicker for the company than a rights issue for such a small % of new shares.


Thanks and that's a shame but hey ho. More dividends into one of HSTN, SGRO, BLND, HMSO and/or PHP it is then.



Not forgetting ESP, BBOX and WHR, I'm guessing.

MDW1954


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