Segro's profits boosted by demand for parcel delivery, logistics and retailers

Industrial real estate investment trust Segro posted a solid increase in interim profits thanks to strong demand from parcel delivery companies, logistics operators and retailers.

In the six months to 30 June, pre-tax profit rose 45.6% year-on-year to £330m, while adjusted profit before tax climbed 3.7% to £69.2m and profitable attributable to shareholders grew 51% to £330.1m.

Revenue declined 14% to £117.4m, while adjusted earnings per share climbed 3% to 9.2p, driven by a 4.3% growth in like-for-like rental income.

“2015 is shaping up to be another good year for Segro with strong operating metrics and portfolio performance, as the benefits of the portfolio re-shaping programme continue to be felt,” said group chief executive David Sleath.

“We have experienced particularly strong demand from parcel delivery companies, third party logistics operators and retailers as economic conditions in our major markets continue to improve.”

Adjusted net asset value rose 8.3% to 461p per share, reflecting improving asset values driven by strong investor demand for the asset class, asset management initiatives and development gains, the group said.

Meanwhile, the group has confirmed Nigel Rich will step down from his position as chairman next year.

Rich, who was appointed as chairman of the FTSE 250 group in 2006, will retire from his role at the company’s annual general meeting in 2016.

In a short statement, Segro said the board had begun a search for a successor under the leadership of Baroness Ford, the group’s senior independent director.

Segro shares were up 0.23% to 433.00p at 0824 BST on Tuesday.