Segro Share Discussion Threads

[jonwig] 13/3/2017 07:23

Dean - yes, I'm aware of that: I'm talking about the current year.

Had the new shares been issued for future projects only, ther cash would have been non-earning and the rebased dividend for 2017 would be 16.4*5/6p = 13.7p. In fact about half of the moneys raised will be earning full whack, but they seem to be raising the base level more than halfway.

[deanforester] 12/3/2017 22:44

No they are not. If you read the full announcement it says that the new shares do not qualify for the dividend already announced.



The Directors have recommended a final dividend of 11.2 pence per Existing Ordinary Share, bringing the total aggregate amount paid and payable by way of dividend in respect of the year ended 31 December 2016 to 16.4 pence per Existing Ordinary Share. New Ordinary Shares issued pursuant to the Rights Issue will not be entitled to this final dividend because such dividend was declared before the date of allotment and issue of the New Ordinary Shares.
DF

[jonwig] 12/3/2017 11:55

This is interesting ...

Applying the indicative bonus factor element of the Rights Issue to the total aggregate amount paid and payable by way of dividend in respect of the year ended 31 December 2016 shows that, following the Rights Issue, the dividend of 16.4 pence per share would equate to approximately 15.6 pence per Existing Ordinary Share. Subject to performance and available resources, the Directors would seek to increase that level of dividend over the medium term.
[RNS 10/03 - I haven't read the full circular.]

What they seem to be saying is that 16.4p gives a yield of 3.5% pre rights, and to get the same yield at the ex-rights share price would mean a dividend of 15.6p. In other words, they assume new acquisitions have full earning potential from day one when in fact only half of the money will (APP).

[ygor706] 10/3/2017 13:25

Jonwig....I agree. Things seem to be going pretty well for them at the moment and I'm fairly confident that a FTSE 100 spot is that much closer now. Would not be surprised the see another acquisition...........Tritax Big Box??

[a0148009] 10/3/2017 09:21

Certainly a good deal if the third runway goes ahead even if it does not they are sound assets. £556 million is a large chunk some of which is going towards current projects. Since the Crash the major Property companies have been tighter with there debt ratios.

[red army] 10/3/2017 08:13

Not so sure it had to offer such a large discount.

[jonwig] 10/3/2017 07:17

ygor - rights issue just announced should get them there!

1-5 at 345p isn't too onerous, but it comes before the new ISA season, which is a bit of a bind. Main target is to buy out Aviva at a Heathrow business park.

[ygor706] 02/3/2017 22:23

Didn't quite make the FTSE100 this quarter but its entry cannot be long delayed. An acquisition would speed the process of course

[jonwig] 19/2/2017 20:12

ygor - that would be good news!

[ygor706] 19/2/2017 19:55

Very quiet on this Board for a company that has performed so well over the past couple of years. According to this morning's Sunday Times, SEGRO now ranks 101st by market cap on the UK market. A promotion to the FTSE 100 cannot be long delayed.

[jonwig] 02/9/2016 12:58

They are allowed to issue up to 74,770,950 shares in the current financial year and disapply pre-emption rights. And that's precisely the number they went for. So they can't issue more by such a placing unless authority is renewed by shareholders at the next AGM. personally I'm happy to hold a share which is in such demand from big institutions!

"Can't be bothered" is rather unfair - the placing and open offer of 2009 had to be very large as they were rescuing Brixton at, it turns out, a bargain price.

EDIT: should have added that an open offer would need an EGM and a prospectus circulated ... cost, a few million.

[a0148009] 02/9/2016 11:52

As usual they cannot be bothered with smaller shareholders unless there is a crash and then they come with cap in hand. Edit : give them credit though placing right at the top of the chart.
AO

[jonwig] 26/7/2016 07:45

Yes, very positive. About one-third of their property values are in Europe and they're well-hedged on currency movements.

Also they are quite open about debt covenants: the gross property value would need to fall by about 44% for a breach - more than the effect of the GFC. A lot of companies are cagey about revealing details on this sort of thing.

[ygor706] 26/7/2016 06:19

Results out a day earlier than I thought but worth waiting for. Another dividend increase with the numbers and risk profile of the business looking solid to me. BREXIT also doesn't appear to be causing any great problems here.

[ygor706] 24/7/2016 15:44

SEGRO's interims out next Weds. Be interesting to hear what they have to say about BREXIT.

[jonwig] 03/12/2014 07:09

Some suggestion that today's Autumn Statement will include a review of business rates, even abolition at some point.

These rates are paid by the leaseholder (who is usually the occupier), but if the property is vacant and has no leaseholder, the owner will pay.

This suggests to me that the biggest beneficiaries of any policy would be owners with high vacancy rates, and SGRO has 6.2% at present. Any other companies?

[jonwig] 03/10/2013 17:12

Sheds are where it is (incl. SGRO):

[deanforester] 23/9/2013 17:03

Plenty of military airfields also serve civilian traffic. Most of them take non-military flights on Prior Permission Only basis.

[losos] 23/9/2013 15:17

DeanForester - "I still don't see why, if they need more runway capacity, they don't make immediate use of Northolt."

So far as I know Northolt is a military base, I suppose the answer to your question is that the RAF don't want millions of the great unwashed wandering around their pristne hangers and nice officers mess !!!!

[jonwig] 24/7/2013 18:29

DeanF - interesting, and new to me.
I've just read this - 6 miles away might not be too bad:



However, the fact that the Telegraph is the sole reporter, and from SEGRO's pov, suggests to me that they are feeding the story to the paper.
Part of their submission plans?

[deanforester] 24/7/2013 16:22

I still don't see why, if they need more runway capacity, they don't make immediate use of Northolt.

[jonwig] 24/7/2013 07:52

The Telegraph is the only daily to carry any coverage of the work of the Airports Commission, which is looking at competing strategies for a hub airport. Gatwick and "Boris Island" have their advocates.

In a submission to the Government's Airports Commission, chaired by Sir Howard Davies, the property giant, Segro, said that a poll of businesses around Heathrow showed huge support for expanding the airport as the best solution to the UK's aviation needs. Any other option would cause significant economic damage.



Trouble is, the third runway option seems to be mired in planning and politics. I'm surprised complete closure of Heathrow is even being contemplated.

[pillion] 24/6/2013 10:28

Well the announcement knocked the share price for 6

[jonwig] 24/6/2013 06:12

The Board of SEGRO plc notes the recent press speculation regarding the potential formation of a joint venture in connection with SEGRO's Continental European logistics portfolio.

I didn't see it, but it was the Sunday Times, and confirmed by SGRO

THE owner of the Slough trading estate - home to David Brent's The Office - is plotting an ambitious European deal with the Canadian pension fund that looks after Mounties' retirement savings.

Segro, the industrial property specialist, is in talks with the Public Sector Pension Investment Board (PSP Investments), one of Canada's biggest funds, over a logistics joint venture on the continent.

The move comes as property companies scramble to control freight and transport hubs across Europe. The boom in internet shopping, combined with increasingly globalised manufacturing and lengthening supply chains, has driven demand for warehouses in key areas around Charles de Gaulle airport in Paris and the Rhine-Ruhr region in Germany, for example.

There have been low levels of warehouse building since the financial crisis. In a sign of the growing appetite, Prologis, the American industrial giant, teamed up with Norway's sovereign wealth fund last year to buy logistscs properties.

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