SEGRO (LON:SGRO) Issues Quarterly Earnings Results

SEGRO (LON:SGRO) released its quarterly earnings data on Thursday. The real estate investment trust reported GBX 19.30 EPS for the quarter, Digital Look Earnings reports. SEGRO had a return on equity of 3.51% and a net margin of 77.66%.

Here are the key takeaways from SEGRO’s conference call:

• Operational performance strengthened: Like-for-like net rental income rose 5.3% and adjusted EPS increased 6.6%, supported by rent reviews, asset management and development completions.
• Leasing momentum improved: SEGRO signed £53 million of new headline rent, including £24 million of pre-lets versus £3 million in the prior-year period. Management expects occupancy to improve in the second half as vacant U.K. space moves through advanced negotiations.
• Data-center growth opportunity expanded: The power bank reached 3 GVA, including 1.4 GVA of near-to-mid-term opportunities, while SEGRO added 0.5 GVA of reservations and signed a further powered-shell pre-let with VIRTUS.
• Development pipeline remains substantial: Industrial and logistics projects represent £441 million of potential rent, with £90 million in current and near-term projects at an average expected yield of 7.4%; development completions are expected to increase materially in the second half.
• Valuation and dividend constraints weighed on the outlook: EPRA NTA per share fell 2.5% after U.K. yield expansion, while the 4.5% dividend increase was limited by the Prologis best-and-final offer and is not indicative of full-year expectations.

SEGRO Trading Up 0.6%

SGRO opened at GBX 972 on Friday. SEGRO has a 12-month low of GBX 603 and a 12-month high of GBX 997.40. The company has a debt-to-equity ratio of 41.02, a current ratio of 0.56 and a quick ratio of 0.62. The stock has a market capitalization of £13.15 billion, a PE ratio of 23.88, a P/E/G ratio of 2.12 and a beta of 1.14. The firm’s fifty day moving average price is GBX 820.36 and its 200 day moving average price is GBX 763.23.

Wall Street Analysts Forecast Growth

A number of research firms have weighed in on SGRO. Berenberg Bank reissued a “buy” rating and issued a GBX 995 price objective on shares of SEGRO in a research report on Thursday. Citigroup reiterated a “buy” rating and issued a £104.30 price target on shares of SEGRO in a research note on Friday, June 26th. Finally, Jefferies Financial Group increased their price target on SEGRO from GBX 917 to GBX 1,000 and gave the company a “hold” rating in a report on Friday. Five investment analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company’s stock. According to data from MarketBeat.com, SEGRO presently has an average rating of “Moderate Buy” and a consensus target price of GBX 2,252.86.

About SEGRO

SEGRO is a UK Real Estate Investment Trust (REIT), and a leading owner, asset manager and developer of modern warehousing, industrial property and data centres across the UK and seven other European countries.