SEGRO (LON:SGRO) Posts Quarterly Earnings Results

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

Shares of SGRO stock traded down GBX 5.20 during mid-day trading on Thursday, reaching GBX 966.60. The stock had a trading volume of 9,564,395 shares, compared to its average volume of 32,041,857. The company has a current ratio of 0.56, a quick ratio of 0.62 and a debt-to-equity ratio of 41.02. SEGRO has a 1-year low of GBX 603 and a 1-year high of GBX 997.40. The business’s fifty day moving average is GBX 815.25 and its 200-day moving average is GBX 761.57. The firm has a market cap of £13.08 billion, a price-to-earnings ratio of 23.75, a PEG ratio of 2.12 and a beta of 1.14.

Wall Street Analyst Weigh In

Several equities analysts have commented on SGRO shares. Citigroup reissued a “buy” rating and set a £104.30 price objective on shares of SEGRO in a research report on Friday, June 26th. Jefferies Financial Group raised their price objective on shares of SEGRO from GBX 855 to GBX 917 and gave the company a “hold” rating in a research report on Thursday, July 9th. Finally, Berenberg Bank reaffirmed a “buy” rating and issued a GBX 995 price objective on shares of SEGRO in a research note on Thursday. Five analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company. According to MarketBeat.com, the company has a consensus rating of “Moderate Buy” and an average 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.