Half Year 2024 Segro PLC Earnings Call Transcript
Key Points
- Strong performance in new rent signings and an excellent uplift in like-for-like net rental income.
- Disciplined approach to capital allocation, including profitable development programs and strategic asset acquisitions.
- Strengthened balance sheet with a low loan-to-value ratio of 30%, providing significant liquidity for future investments.
- Continued focus on operational excellence and asset management initiatives driving rental growth.
- Positive market dynamics with increasing demand for industrial and logistics space, particularly in urban areas.
- Slower pre-leasing demand, particularly for data centers and large logistics projects.
- Small decline in NAV per share due to the impact of the equity raise and FX movements.
- Continued pressure on rental levels in certain markets like Poland and Madrid due to increased speculative development.
- Lower volume of pre-let development signings as occupiers take longer to commit to significant capital projects.
- Potential challenges in capturing the remaining reversionary potential in the portfolio, which stands at GBP133 million.
Good morning, everybody. Welcome to SEGRO's half year 2024 results presentation and thank you for taking the time to join us here in the room or indeed online. What we're going to do as usual, I'm going to make a few opening remarks, and we'll go into the main presentation, and then we'll finish with Q&A.
First thing said is that SEGRO has performed well during the first six months of 2024. We've continued to follow our clear and consistent strategy, which is delivering strong current year performance whilst ensuring that we are set up for continued success in the future, particularly as market conditions start to pick up again.
Firstly, we've maintained our focus on operational excellence and our teams have been really sweating the assets, successfully capturing reversion and carrying out asset management initiatives to drive new rental levels. This activity has helped us to deliver a strong performance in new rent signings and an excellent uplift in like-for-like net rental income.
Secondly, we've
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