UK's SEGRO H1 adjusted EPS rises on rental income growth
UK's SEGRO H1 adjusted EPS rises on rental income growth
Overview
UK industrial property developer's H1 adj EPS rose 6.6%, supported by rental income growth
Adjusted pre-tax profit for H1 increased 6.3% yr/yr to £268 mln
Portfolio valuation declined 1.2% due to higher yields applied by UK valuer
Outlook
SEGRO expects strong demand to support further market rental growth and development activity
Company sees substantial embedded growth from £157 mln of rental income via rent reversion and leasing vacant space
SEGRO targets adjusted EPS progression from 36.6p in 2025 to c.50.0p by 2030
Result Drivers
RENTAL INCOME GROWTH - Co said 5.3% like-for-like net rental income growth and strong rent uplifts on reviews and renewals, especially in the UK, supported earnings
DEVELOPMENT PIPELINE - Record level of development projects and £24 mln of new pre-lets signed contributed to new headline rent
CAPITAL ALLOCATION & COST DISCIPLINE - Disposals above book value and reduced cost ratio helped drive performance
Company press release: ID:nRSd4555Oa
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
H1 Adjusted Net Asset Value Per Share |
| GBP 9.02 |
|
H1 Adjusted Pretax Profit |
| GBP 268 mln |
|
H1 Dividend |
| GBP 0.10 |
|
H1 Net Asset Value Per Share |
| GBP 8.83 |
|
H1 Net Debt |
| GBP 5.92 bln |
|
H1 Pretax Profit |
| GBP 9 mln |
|
Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 6 "strong buy" or "buy", 5 "hold" and 2 "sell" or "strong sell"
The average consensus recommendation for the commercial reits peer group is "buy."
Wall Street's median 12-month price target for SEGRO PLC is GBp916.00, about 5.6% below its July 29 closing price of GBp970.00
The stock recently traded at 25 times the next 12-month earnings vs. a P/E of 17 three months ago
Reuters Recommended Reads
July 30 - Netherlands' CTP H1 adjusted EPRA earnings rise 11%
July 29 - UK's Shaftesbury Capital H1 profit rises, lifts interim dividend
July 29 - CBRE Q2 results beat estimates, lifts 2026 core EPS outlook
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)