Segro Share Discussion Threads

[jonwig] 24/7/2019 07:52

The Ft's summary:

Segro, the UK property group that specialises in warehouses, said it is on track to spend £600m on new developments this year to take advantage of growing demand.

The company has benefited from the shift to online retail, which has increased demand for its warehouse space in the UK and continental Europe.

It raised £450m of fresh equity in February to fund the development pipeline.

Reporting first-half results on Wednesday, Segro said that it expected demand for its space to remain strong.

“Rental growth will likely be strongest in urban warehousing, where the supportive trends of the technological revolution (including e-commerce) and urbanisation combine,” the company said in a statement.

Segro said that its adjusted pre-tax profits had grown by a fifth in the first half to £132m, while net asset value grew 4 per cent to 665p per share.

The dividend was increased by 14 per cent to 6.3p per share.

Chief executive David Sleath said: “We expect the development programme to generate further significant and profitable new rental income over [the] coming years. This addition to the top-line, combined with the compounding effect of rental growth through our asset management of the existing portfolio, should enable us to drive both sustainable earnings and further dividend growth.”

[jonwig] 24/7/2019 07:28

H1 results.

"Another period of strong performance with good earnings momentum driven by rental growth, active asset management and a record level of developments."

NAV (EPRA)673p (+4%)
Interim div 6.3p (+13.5%)



The 12% nav premium is unusual in today's market. Is it a problem?

[jonwig] 18/4/2019 06:46

Citywire:

Segro on a justified premium, says Liberum

Industrial real estate investment trust Segro (SGRO) is seeing strong demand which shows the advantage of its urban assets, says Liberum.

Analyst James Ashley retained his ‘buy’ recommendation and target price of 750p on the shares, which fell 1.3% to 673p yesterday.

First quarter lettings were strong and vacancies were reduced, with rents on renewal and review securing an additional £21.2 million.

‘Good demand continues to support development activity...The first quarter performance was achieved despite moderating economic activity across Europe and an increasing supply response in the UK, highlighting Segro’s advantageous weightings to urban assets and a substantial development pipeline,’ said Ashley.

‘We expect Segro to generate 8.8% total returns in full year 2019 and as a result, the shares trade at a justified premium.’

[jonwig] 17/4/2019 07:08

Trading update:



Lots of activity. Voids reduced to 4.4% (5.2%), LTV reduced to 23% (29%).

[jonwig] 15/2/2019 17:59

Placed at 635p.

[jonwig] 15/2/2019 07:55

FY results:



NAV at 650p seems to beat forecasts.
Nice dividend hike to FY total 18.8p.
Strong outlook.

Separately, placing by bookbuild to raise £450m, non-preemptive. (Damn!)

Share price needs to be a premium (say 680p?) and placing at least 640p. Maybe!

[jonwig] 05/11/2018 08:13

Tipped by IC on Friday:

Supply of big-box and last-mile-delivery warehouse space continues to lag demand, and while there has been a significant rerating in valuations, there is likely to be more to come. A combination of further valuation uplifts and dividend payments are expected to generate total returns of around 17 per cent in 2018, and yet the shares are trading at a significant discount to forecast NAV.

(Forecast NAV for Dec 2018 is 632p, and Dec 2019 677p.)

[nikki40] 17/10/2018 07:19

Significant premium to book value will helps end of yr profits

[nikki40] 17/10/2018 07:16

Reads well

[jonwig] 17/10/2018 07:13

Continued strong trading:



Disposals made at "significant premium to book value".

[torarory] 08/10/2018 20:27

One of the few risers today in a bad day all around. I predict the share price will now rise ahead of the trading statement next Wednesday, as I am sure it will be good news and there will be the inevitable insider knowledge pushing it upwards.
Still convinced it’s a great med to long term hold.

[skyship] 05/10/2018 11:36

Seeing a bit of a bloodbath in the blue chip propcos, though a bit of a bounce today due to the INTU bid approach. Posted this yesterday:
===================================================

FTSE slumps as Fed rates warning rattles investors



The blue chip propcos were especially badly hit:

# BLND - down 31 (5.2%) @ 576p
# LAND - down 34 (3.9%) @ 841p
# HMSO - down 27 (6.0%) @ 433p
!!!
Happily RGL again moving in the opposite direction - up another 0.4p today. I suspect the reason for no RNS showing no more CIC, is that they were already below the disclosure level!
===================================================

IMO RGL will continue to make progress versus a lower sector and possibly lower Markets, as they were at a false level due to a stock overhang, possibly now cleared. Plenty of info on the RGL & CP+ threads...

[montyhedge] 04/10/2018 08:24

Yield is nothing for a property company, developers on yield of 9%, say Crest Nicholson.

[jonwig] 07/9/2018 10:04

Copied from the LAND thread, courtesy speedsgh:

Segro knocks LandSec off property top spot -

Industrial property giant Segro has ended more than two decades of dominance by Land Securities as the UK’s largest real estate company.

Land Securities has been the UK’s largest listed property company since the mid-1990s, but yesterday ended in second place as Segro’s shares place in the coveted number one spot. British Land, which had been in number two spot has now been relegated to number three.

Segro, run by chief executive David Sleath, ended yesterday’s stock market trading as the UK’s largest listed property group valued at £6.584bn, ahead of LandSec at £6.577bn, with British Land knocked down into third position at £6.01bn.

The fall from number one spot caps a steady decline in the value of LandSec’s shares since Janaury 2015, when it broke back through the £10bn valuation barrier.

Andrew Gill, an equity analyst at Jefferies International, said LandSec and British Land had suffered from growing sentiment against the retail sector, while those in the booming industrial sector, such as Segro, have seen shares rise significantly in recent years.

“We have seen continued weakness in stocks with large retail exposure,” said Gill, adding an additional factor is likely to be that Elliott Advisers recently took a short position in Land Securities and British Land.

[davr0s] 23/8/2018 19:15

745 from 300 lol - have they been asleep at the wheel

[jonwig] 23/8/2018 15:13

Credit Suisse today reaffirms its outperform investment rating on Segro [LON:SGRO] and raised its price target to 745p (from 300p).

Story provided by StockMarketWire.com

[skyship] 01/8/2018 07:33

"EPRA NAV per share increased 8.5 per cent to 603 pence (31 December 2017: 556 pence), driven by a 5.9 per cent increase in the value of the portfolio, due to development and asset management gains, further yield compression and ERV growth across the portfolio."

Sp 665p. So a 9.3% premium. For a propco this is now surely over-valued. Great company with very good perceptive management; however institutions seem to be forgetting cyclical history by supporting these to such a level.

[jonwig] 01/8/2018 05:53

Citywire:

Expectations for industrial real estate investment trust Segro (SGRO) have been running high as investors pile into logistics but they are already baked into the valuation, says Numis.

Analyst Paul Gorrie retained his ‘hold’ recommendation and target price of 712p on the stock after first-half results. He said the company ‘does not appear to be slowing down, indeed it is rightly putting its foot on the gas to exploit occupier and investment demand conditions which are as favourable as they have been for at least a cycle’.

While Gorrie added that ‘upgrades could provide additional momentum for the shares’, the first-half 2018 net asset value meant the market was ‘already baking in a large amount of growth expectation’.

[torarory] 27/7/2018 07:39

And warehouse robotics, level flooring ( Somero Enterprises ) stacking systems etc ! Everything to do with getting packages to/from consumers will continue to thrive.

[torarory] 27/7/2018 07:19

Great set of results. Lex in FT.com suggests competition from failed retail parks and also suggests the good results cannot continue? I would dispute that. E commerce, warehousing,logistics, packaging and credit card/debit card payment systems will not die. Heathrow expansion another plus for SEGRO. I also have no doubt the board are savvy enough to foresee any potential obstacles/challenges to growth and will act accordingly. I predict the share price will be 800 this time next year.

[jonwig] 26/7/2018 07:56

H1 results very good with both assets and rentals up.
NAV of 603p is pricing in a lot of future progress though!

[jonwig] 09/7/2018 12:19

When I last looked at MKLW it had a very high premium to NAV. And SGRO is big in Europe, which is important for me.

[jonwig] 06/7/2018 15:04

Who'd have thought it?

A company built around the humble Slough Trading Estate is within reach of becoming the UK’s largest listed property group, riding on the boom in e-commerce that has sent demand for warehouses and former industrial property soaring.