SEGRO Posts Pre-tax Loss In H1; Closes Sale Of £111 Mln Of UK Regional Assets

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8/2/2012 3:19 AM ET

SEGRO Plc (SGRO.L) posted first-half pre-tax loss of 81.8 million pounds, compared to pre-tax profit of 64.6 million pounds last year.

Loss per share was 10.8 pence versus earnings per share of 8.6 pence in the prior-year period.

EPRA profit before tax was 74.9 million pounds, 5.3 percent higher than a year earlier. EPRA NAV per share declined 6.7 per cent to 317 pence, largely reflecting valuation reductions on the non-core portfolio.

Revenue declined to 190.1 million pounds from 195.8 million pounds in the same period last year. Net rental income was 3.4% lower due to the impact of disposals. Like for like net rental income was up 1.0%.

Going ahead, over the balance of the year, the company will continue to focus on operational performance and on the reshaping of its portfolio. Having already achieved the company's full year disposals target, it expects the pace of disposals to be slower in the coming months.

The Board has declared an interim dividend of 4.9 pence, unchanged from the first half of 2011. The dividend will be paid as an ordinary cash dividend on 5 October 2012 to shareholders on the register at the close of business on 7 September 2012.

In a separate press release, SEGRO said it has completed the sale of a portfolio of 10 non-core UK regional industrial estates for 111.0 million pounds to a large institutional UK fund. The portfolio being disposed of comprises 10 predominantly older, secondary, multi-let industrial estates located in Portsmouth, Bristol, Yate, South Feltham, Sunbury, Crawley and Bishops Stortford.

The sale price represents a net initial yield of 8.4 per cent, or 8.9 per cent with the benefit of lease incentive top-ups. The sale proceeds, net of lease incentive top-ups, are approximately 3.0 per cent above the 30 June 2012 book value.

Including this transaction, SEGRO has announced or completed disposals of 503 million pounds in the year to date, at the top end of the company's 300-500 million pounds guidance range for non-core disposals during 2012.

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by RTT Staff Writer

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