Post on 14-Jul-2020
WE CREATE THE SPACE THAT ENABLES EXTRAORDINARY THINGS TO HAPPEN
FOR FURTHER INFORMATION PLEASE CONTACT:
CLAIRE MOGFORD HEAD OF INVESTOR RELATIONS CLAIRE.MOGFORD@SEGRO.COM
FEBRUARY 2020
We are a UK Real Estate Investment Trust and a leading owner, asset manager and developer of modern warehousing and industrial property
WHO WE ARE
Financial data as of 31 December 2019 unless otherwise stated
TECHNOLOGYURBANISATION
WELL POSITIONED IN GROWTH MARKETS
Driven by mega-trends of urbanisation and technology – change is greatest where these two combine
GROWING POPULATION
Means increasing pressure for space but also demand for goods and services
SHORTAGE OF URBAN WAREHOUSE SPACE
This results in high demand and rising industrial land values
CONSUMER EXPECTATIONS
Ecommerce is driving the need to deliver goods and services direct to the consumer quicker than ever before – requires the modernisation of supply chains
AUTOMATION & ROBOTICS
Warehouses are becoming increasingly automated which changes customer requirements and increases the need for power
BIG BOX WAREHOUSES
££ Typically larger units
££ Serving national and international logistics supply chains, mainly bulk storage and distribution
££ Higher net income yield
££ Low management
££ Development mainly pre-let
££ Moderate availability
££ Expected ERV growth of 1-2% p.a.
URBAN WAREHOUSES
2
3
4
5 1
31% 67%
COMPLEMENTARY ASSET TYPES
££ Typically smaller units
££Generic warehouse space to cater for multiple uses, including urban distribution and data centres
££ Lower net income yields
££Greater asset management potential
££ Development mainly speculative
££ Limited availability
££ Expected ERV growth of 2-5% p.a.PORTFOLIO BY TYPE (Valuation, SEGRO share)
1. Urban warehouse UK 55%2. Urban warehouse CE 12%3. Big box warehouse UK 9%4. Big box warehouse CE 22%5. Other 2%
NORTH CIRCULAR ROAD
SOUTH CIRCULAR ROAD
NORTH
EAST
WEST
CENTRAL
SOUTH
GATWICK
HEATHROWLONDON CITY
CROYDON
M25
A1(M)
M11
31
3
5
M20
M26
M23
M25
A205
A406
A30
A23
A40
A1 A10
A12
M1
M40
M4
M3
7
12
13
15
16
21
2325
27
28
M2
A2
A20
A13
A316 2
STANSTED
23
4
5
67 8 1
STRATEGICALLY LOCATED ASSETS ACROSS EUROPE
1. Greater London 39%2. Thames Valley 17%3. National Logistics 9%4. France 10%5. Germany 11%6. Italy 6%7. Poland 5%8. Other 3%
PORTFOLIO SPLIT BY GEOGRAPHY (Total AUM £12.2bn)
GREATER LONDON PORTFOLIO
PARIS
LYON
MADRID
MILAN
MUNICH
COLOGNE
BOLOGNA
AMSTERDAM
HAMBURG
FRANKFURT
BERLIN
PRAGUEKATOWICE
WARSAW
DÜSSELDORF
MARSEILLE
LONDON & THAMES VALLEY
BARCELONA
MIDLANDS
POZNAN
ŁODZ
ROME
WROCLAWLILLE
TILBURG
1,190 CUSTOMERS
32% OF HEADLINE RENT
FROM TOP 20 CUSTOMERS
4.5% OF HEADLINE RENT FROM OUR LARGEST CUSTOMER
1. TRANSPORT AND LOGISTICS 5. FOOD AND GENERAL MANUFACTURING
2. RETAIL (PHYSICAL AND ONLINE) 6. TECHNOLOGY, MEDIA AND TELECOMS
3. POST AND PARCEL DELIVERY 7. SERVICES AND UTILITIES
4. WHOLESALE AND RETAIL DISTRIBUTION 8. OTHER
2
34
5
6
78 1
1. Transport and logistics 23%2. Retail (physical and online) 16%3. Post and parcel delivery 11%4. Wholesale and retail distribution 10%5. Food and general manufacturing 18%6. Technology, media and telecoms 9%7. Services and utilities 7%8. Other 6%
DIVERSIFIED CUSTOMER BASE
A STRATEGY THAT HAS DELIVERED EXCELLENT RETURNS
4 EFFICIENT CAPITAL AND CORPORATE STRUCTURE
1OUR GOAL
2 DISCIPLINED
CAPITAL ALLOCATION
3 OPERATIONAL EXCELLENCE
Investment activity since 2012 DISPOSALS
£4.4bnASSET ACQUISITIONS
£2.1bnDEVELOPMENT CAPEX
£3.0bn
Active asset management RETENTION RATE:
88%2012: 65%
VACANCY
4.0%2012: 8.2%
AVERAGE LEASE LENGTH
7.8 Years to break2012: 6.4 YEARS TO BREAK
Strong balance sheet LTV RATIO
24% 2012: 51%
COST OF DEBT
1.7%2012: 4.6%
ADJUSTED EPS (PENCE) EPRA NAV PER SHARE (PENCE) DIVIDEND PER SHARE (PENCE)
2012 2019 2012 2019 2012 2019
19.3p 24.4p +26% 281p 708p +241% 14.8p 20.7p +40%
GROWTH OPPORTUNITIES FROM DEVELOPMENT
£150m+ potential rent from future development pipeline£70m potential rent from current and near-term pipeline (71% related to pre-lettings)£1.3bn development capex required to complete
ACCELERATED DEVELOPMENT PROGRAMME
NET LAND UTILISATION, 2015-2019
Pre-let
Spec Land bank valueLet at end of 2019
10
0
20
30
40
50
100
0
200
300
400
500
2015
2016
2017
2013
2014
2018
2019
£m h
eadl
ine
rent
£m land bank value
200
300
134
69
(74)
(28)
£m
100
0
-100
-200
-300
Land acquired
Land disposed
Land utilised for development
Net
(97)
2015
2016
2017
2018
2019
STRONG INCOME POTENTIAL
FY 2019 EPS FY 2019 DPS
24.4p (+10%1) 20.7p (+10%)
1 Excluding the impact of the 1.2p SELP performance fee received in 2018.
PASSING RENTAT 31 DECEMBER 2019
RENT IN RENT-FREE,REVERSIONS AND
VACANT SPACE
CURRENT ANDNEAR-TERM
DEVELOPMENT PIPELINE
FUTURE PIPELINEAND LAND HELD UNDER
OPTION
TOTALPOTENTIAL
£167M £196M = £741M++£378MPOTENTIAL FROM CURRENT ACTIVITY
£97M £70M
Excludes the impact of potential acquisitions, disposals and future changes in rental value.
SUSTAINABILITY AND INNOVATION AT THE HEART OF OUR BUSINESS
O
UR
PEOPLE
OUR COMM
UN
ITY
HEALTH & SAFETY
OU
R STAKEHOLDERS OUR ENVIR
ON
MEN
T
OUR FOCUS AREAS:
HELPING OUR CUSTOMERS TO BE MORE ENERGY EFFICIENT
FOCUSING ON THE ENVIRONMENTAL SUSTAINABILITY OF OUR BUILDINGS
MAKING A POSITIVE IMPACT ON COMMUNITIES AROUND OUR ESTATES
ENERGY EFFICIENCY
RENEWABLE ENERGY GENERATION
TRAINING AND UPSKILLING
SMART BUILDINGS
ONSITE ENERGY STORAGE
JOB NETWORKS
WELLBEING
BIODVIERSITY
LOCAL SUPPLY CHAINS
EMBODIED CARBON
REGENERATION
ENTERPRISE & INNOVATION
QUARTERS
INNOVATION & SUSTAINABILITY:
Understanding the needs and priorities of our customers and wider stakeholders has been at the heart of our business for 100 years.
Just as the expectations of those stakeholders have evolved, so have we.
SEGRO Park Rainham, London