SEGRO (LON:SGRO) Issues Quarterly Earnings Results

SEGRO (LON:SGRO – Get Free Report) announced 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 net margin of 40.00% and a return on equity of 2.46%.

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

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• 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 Down 0.2%

Shares of SGRO stock opened at GBX 965 on Friday. SEGRO has a twelve month low of GBX 603 and a twelve month high of GBX 997.40. The stock’s fifty day simple moving average is GBX 825.34 and its 200 day simple moving average is GBX 764.64. The firm has a market capitalization of £13.06 billion, a P/E ratio of 23.71, a P/E/G ratio of 2.12 and a beta of 1.70.

Analyst Upgrades and Downgrades

SGRO has been the subject of a number of research analyst reports. Citigroup reissued a “buy” rating and set a £104.30 price target on shares of SEGRO in a report on Friday, June 26th. Jefferies Financial Group lifted their target price on SEGRO from GBX 917 to GBX 1,000 and gave the company a “hold” rating in a research report on Friday. Finally, Berenberg Bank reissued a “buy” rating and set a GBX 995 target price on shares of SEGRO in a research note on Thursday. Five research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company. Based on data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and a consensus price target of GBX 2,252.86.

View Our Latest Stock Analysis on SGRO

About SEGRO

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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.

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