SEGRO (LON:SGRO) Announces Earnings Results

SEGRO (LON:SGRO) released its quarterly earnings data on Thursday. The real estate investment trust reported GBX 19.30 earnings per share (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 Stock Performance

SEGRO stock traded down GBX 5.20 during midday trading on Thursday, reaching GBX 966.60. 9,564,395 shares of the company traded hands, compared to its average volume of 32,041,857. 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 business has a 50 day moving average of GBX 815.25 and a two-hundred day moving average of GBX 761.57. The firm has a market capitalization of £13.08 billion, a price-to-earnings ratio of 23.75, a price-to-earnings-growth ratio of 2.12 and a beta of 1.14.

Analyst Ratings Changes

SGRO has been the subject of a number of research reports. Berenberg Bank reissued a “buy” rating and issued a GBX 995 price target on shares of SEGRO in a report on Thursday. Citigroup restated a “buy” rating and set a £104.30 price objective on shares of SEGRO in a report on Friday, June 26th. Finally, Jefferies Financial Group increased their price target on SEGRO from GBX 855 to GBX 917 and gave the stock a “hold” rating in a report on Thursday, July 9th. Five research analysts have rated the stock with a Buy rating and three have given a Hold rating to the company’s stock. According to data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and a consensus target price of GBX 2,241.

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.