Segro turnaround strategy on track as sell off gathers pace

INDUSTRIAL landlord Segro said yesterday its net asset value fell 6.2 per cent last year as its offices in the south east and its non-strategic assets weighed on performance.

However, the firm, which said in January the value of its property portfolio had fallen sharply in the second half of the year, said pre-tax profit, excluding changes in property values and one-off items, was up 4.6 per cent to £144.9m for the year thanks largely to tight cost control.

On an IFRS basis its pre-tax loss widened to £202.2m, from £53.6m. Over the past 12 months, the company has sold £700m of non-core assets as part of a new strategy aimed at reshaping its portfolio. Around £207m of this has been reinvested in fresh properties in the UK and France, with a further £218m reinvested in development projects.

Chief executive David Sleath last year said the firm’s strategy was to sell off its older industrial estates and use the proceeds to invest in modern warehouses, and data centres located in key European hubs including London and Paris.

Sleath said he was targeting a further £300m to £500m of disposals this year.