2017 HALF YEAR RESULTS/media/Files/S/Segro/documents... · 2017-07-24 · £1.1bn of new financing...

2017 HALF YEAR RESULTS25 JULY 2017

Strong financial results and robust balance sheet

Driving performance through operational excellence and disciplined capital allocation

High quality pipeline of growth opportunities

Optimistic outlook

B+S, Frankfurt

2




Optimistic outlook

B+S, Frankfurt

3


Strong earnings growth– Benefits of APP acquisition– Asset management gains capturing rent reversion– Development completions

+23% Adjustedpre-tax profit

+3.2% Adjusted EPS, 9.7p

+3.9% Like-for-like net rental income growth

Robust balance sheet– 4.9% portfolio value growth– £1.1 billion of financing, including rights issue and

inaugural US private placement

+5.4% EPRA NAV per share504p

29% Loan to Value ratio(FY 2016: 33%)

2017 interim dividend increased by 5% 5.25p Dividend per share(2016: 5.0p)

4

H1 2016 netrental income

Disposals Acquisitions Like-for-likenet rentalincome

Completeddevelopments

Space takenback for

development

Other (inclsurrenderpremiums)

Currencytranslation

H1 2017 netrental income

JVs at share

£32.3m

JVs at share

£27.3m

Group£103.4m

Group£88.6m

£(11.2)m

£10.6m

£8.6m

£(0.8)m£4.4m

£(5.9)m

£4.1m£120.9m

£130.7m

3.9% growth in like-for-like net rental income

Proportionally consolidated net rental income (excluding joint venture fees1), H1 2016-17, £ million

Mainly 2016 disposals and disposals to part-fund APP acquisition

Group: +3.9%UK: +5.9%CE: 0.0%

Vacancy stable at 5.5%

APP acquisition

5

1 Net property rental income less administrative expenses, net interest expenses and taxation

23% increase in Adjusted PBT

Adjusted income statement

H1 2017

£m

H1 2016

£m

Gross rental income 127.3 110.7

Property operating expenses (23.9) (22.1)

Net rental income 103.4 88.6

Share of joint ventures’ adjusted profit1 22.1 25.5

Joint venture fee income 16.5 9.1

Administration expenses (17.5) (15.5)

Adjusted operating profit 124.5 107.7

Net finance costs (33.3) (33.5)

Adjusted profit before tax 91.2 74.2

Tax on adjusted profit 0.7% 1.1%

• APP performance fee generated non-recurring profit of £3.2m

• FY 2017 JV fee income expected to be c£24m

• On-going JV fee income c£16m pa

• Cost ratio of 22.9%(H1 2016: 23.2%)

• 20.4% excl share based payments (H1 2016: 21.5%)

• H1 2017 adjusted EPS based on average 934m shares

• FY adjusted EPS expected to be based on c966m shares (before impact of scrip dividend)

6

31 December2016

H1 2017Adjusted EPS

2016Final Dividend

Realised andunrealised gains

Exchange rate andother

Net impact offinancing activity

30 June 2017

5.4% increase in EPRA NAV

Components of EPRA net asset value change, 31 December 2016 to 30 June 2017

(11)p

10p

33p 2p

504p

478p(after applying

bonus adjustment factor of 1.046 to reported 500p)

(8)p

7

£1.1bn of new financing raised to strengthen balance sheet further

Rights Issue

£557m net proceeds166m new shares

1.046 bonus adjustment factor

Private Placement Issue

€650m of new debt11yr average duration1.9% average coupon

To be drawn in August 2017

£216m cash consideration for APP

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

0%

20%

40%

60%

2012

2013

2014

2015

2016

H1

17

Average cost of debt

LTV

rat

io

LTV ratio Ave cost of debt

LTV ratio and average cost of debt(incl share of JVs, 2012-H1 2017)

£341m for future development capex

• 75% allocated to identified projects

Repay £200m 2018 bonds early

• 5.5% coupon bonds repaid in June

Repay £320m APP secured debt

• 2.5% average cost, repaid in July

8

1 Based on gross debt, excluding commitment fees and amortised costs2 Pro forma for repayment of APP secured debt and drawing of US private placement debt3 Marginal borrowing costs after commitment fee

Including joint ventures at share 30 June 2017 31 December 2016

Weighted average cost of debt1 (%) 3.12 3.4

Average maturity of debt (years) 7.82 6.2

Fixed rate debt as proportion of net debt (%) 70 80

Net borrowings (£m) 2,086 2,091

LTV ratio (%) 29 33

£644m of cash and available facilities

Attractive marginal cost of Group bank borrowings of c1.4% (UK) and 1.1% (CE)3

H1 2017: £215m capex on development and infrastructure

FY 2017: £350m+ estimated development capex (and further c£50m of infrastructure capex)

Robust financial position

Balance sheet and gearing metrics (look-through basis), 31 December 2016 – 30 June 2017

9


Strong earnings growth

Robust balance sheet

2017 interim dividend increased by 5%

Geodis, Paris

10




Optimistic outlook

B+S, Frankfurt

11

UK logistics supply continues to fall short of demand(UK logistics take up and average availability; source: JLL)

Favourable market conditions

3.4%

1.6%

1.0%

2.4%

0.6%

3.4%

2.0%

1.4%

1.3%

0.9%

0.0%

1.0%

2.0%

3.0%

4.0%

Poland Germany France UK Italy

Historic (2013-16) Forecast (2017-18)

Economic growth outlook is supportive(GDP average annual growth rates 2013-18; source: OECD)

0.0% 5.0% 10.0% 15.0% 20.0%

ItalyPoland

Europe aveFrance

GermanyUK

2017 2016 2015

Online sales continue to gain market share(Online purchases as share of total retail sales; source: Centre for Retail Research)

Supply of speculative development remains low(Speculative UK big box warehouse completions; source: JLL)

0.00.20.40.60.81.01.21.4

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

In d

vpt

Com

plet

ions

, m s

q m

0.0

0.5

1.0

1.5

2.0

2.5

0.0

1.0

2.0

3.0

2011

2012

2013

2014

2015

2016

1H17

No. of years’ supply

Take

-up

/ av

aila

bilit

y,m

sq

m

Average availability Take-up No. of years' supply

Take-up for H2 2016 and H1

2017

12

Driving performance: operational excellence and disciplined capital allocation

Leasing and Asset Management

Disposals Acquisitions

• £28m contracted headline rent, +28% from H1 2016

• 15% uplift on UK rent reviews and renewals

• Low vacancy rate of 5.5%, 92% customer retention

• £550m of asset acquisitions50% interest in APP portfolioAve topped-up NIY of 4.2% (5.2% excl Cargo Area)

• £34m of land acquisitionsPrimarily land for immediate development in Germany, Italy and Spain

• £207m of asset disposals Part consideration for APP £150mNon-strategic German light industrial

£47m

• Former Northfields industrial estate sold to residential developer

• Average yield of 4.4% (3.1% inclland)

Developments

• 79,000 sq m new space completed: £5m of potential rent, 91% secured

• £18m new pre-lets signed; £3m potential from new speculative development starts

• 920,000 sq m under construction

Amazon, Munich

APP portfolio

Nelson Trade Park

Completed development

Acquired

Sold

13

£0m

£50m

£100m

£150m

£200m

£250m

£300m

£350m

£400m

Total Greater London Thames Valley &National Logistics

Northern Europe Southern Europe Central Europe

+5.7%

+5.2%

2.3%

+3.7%

+0.1%

+4.6%

1 Percentage change relates to completed properties, including JVs at share.2 Includes big box warehouses part of the Greater London portfolio

ERV growth 0.8%0.9% 0.9% 0.6% 0.6% 0.0%

UK: 0.9% Continental Europe: 0.4%

UK +5.5%Slough Trading Estate +7.1%Park Royal +8.8%Heathrow +3.0%UK big box logistics2 +1.9%

Continental Europe +2.3%SELP +1.1%SEGRO wholly-owned +4.1%

Portfolio value change driven by improving yields and asset management1

14




Optimistic outlook

B+S, Frankfurt

15


Income growth potential through active asset management of existing portfolio

Significant growth from current development pipeline

Optionality over future development through land bank and options

Azymut, Strykow

16

Growth from the existing portfolio

Reversion capture

Index-linked uplifts

Further vacancy

reduction

• £2.7m potential reversion from general UK rent reviews in H2 2017 (£13m in total)

• £6.2m (55%) of Heathrow Cargo Area 2019 peppercorn rent reversions secured or under negotiation (£11m in total)

• c40% of portfolio (c£140m of headline rent) contains indexation provisions

• Almost all Continental Europe leases• c10% of UK leases (most with cap and collar)

• c£5.5m (25%) of vacancy is in five UK buildings• 2 big box warehouses in Midlands• 3 urban warehouses in London

0%

20%

40%

60%

80%

100%

2012 2013 2014 2015 2016 H12017

SpeculativePre-letLet at 30 June 2017

Rapid leasing of speculative space(Letting status of development completions in 2012-17, %)

17

Current development pipeline: £46m of rent, 40 projects, 1m sq m of space

Yoox pre-let, Milan

FedEx pre-let, Paris

SEGRO Park Rainham, East London

Martorelles, Barcelona

Amazon pre-let, Rome

Premier Inn, Slough Trading Estate

18

Significant development opportunities within SEGRO’s control

Current development pipeline

• 920,400 sq m of space

• Current book value £431m; £231m cost to complete

• £46m potential gross rent; £31m (68%) secured through pre-lets

• Projected 7.7% yield on total cost

Near term development projects


• £146m potential capex

• £14m potential gross rent

• 63% rent related to potential pre-lets

• Projected 7.6% yield on total cost

Future development pipeline1

• 2.3m sq m of space

• c£1.1bn potential capex

• £113m potential gross rent

• Projected c8% yield on total cost

Land under option


• c£50m potential gross rent

• Expected blended yield of c7% on total cost, including land

1 Excludes near-term projects and potential developments on land held under option.

1 2

3 4

Capital deployment ahead of expectations at the time of 2016 equity placing and 2017 rights issue

19

318

25

46 14

384

388.8

Annualised gross cash passing rent1, £ million(as at 30 June 2017)

1 Including JVs at share2 Near-term development opportunities include pre-let agreements subject to final conditions such as planning permission, and speculative developments subject to final approval, which are expected to commence within the next 12 months3 Total rent potential of £127m from near-term development opportunities and Future pipeline 4 Estimated. Excludes rent from development projects identified for sale on completion and from projects identified as “Near-term opportunities”

41

Passing rent at30 Jun 17

Rent in rent-free

Reversion and vacant space

Current development

pipeline(68% let)

Near-term development

opportunities2,3

(63% pre-lets)

Futurepipeline2

Land held under option

TotalPotential

Substantial opportunity to grow rental income

1134504£126m potential from current activity

£163m from land bank and land options

607

20

Supply-demand dynamics remain supportive

Investor demand for warehouses remains strong

Future earnings prospects underpinned by asset management and development

Optimistic outlook

B+S, Frankfurt

Outlook

21

2017 HALF YEAR RESULTS

Q&A

APPENDIX IPORTFOLIO AND FINANCIAL DATA

30 June 2017 30 June 2016 31 December 2016

£m £p per share £m £p per share2 £m £p per share2

EPRA1 Earnings 90.5 9.7 73.4 9.4 (9.8) 152.6 18.8 (19.7)

EPRA NAV 5,053.5 504 3,593.8 454 (475) 4,162.1 478 (500)

EPRA NNNAV 4,728.8 472 3,285.5 415 (435) 3,822.6 439 (459)

EPRA net initial yield 4.7% 4.9% 4.8%

EPRA topped-up net initial yield 5.0% 5.4% 5.3%

EPRA vacancy rate 5.5% 4.8% 5.7%

EPRA1 cost ratio (including vacant property costs)

22.9% 23.2% 23.0%

EPRA1 cost ratio (excluding vacant property costs)

20.7% 20.4% 20.8%

1 For the periods presented, EPRA EPS is the same as Adjusted EPS.2 Per share metrics in parentheses are as reported before application of the rights issue bonus adjustment factor.

EPRA performance measures

24

H1 2017 H1 2016

Group£m

JVs£m

Total£m

Group£m

JVs£m

Total£m

Gross rental income 127.3 37.3 164.6 110.7 38.3 149.0

Property operating expenses (23.9) (10.0) (33.9) (22.1) (6.0) (28.1)

Net rental income 103.4 27.3 130.7 88.6 32.3 120.9

JV management fee income 16.5 – 16.5 9.1 – 9.1

Administration expenses (17.5) (0.4) (17.9) (15.5) (0.1) (15.6)

Adjusted operating profit 102.4 26.9 129.3 82.2 32.2 114.4

Net finance costs (33.3) (3.4) (36.7) (33.5) (6.2) (39.7)

Adjusted profit before tax 69.1 23.5 92.6 48.7 26.0 74.7

Tax and non-controlling interests (0.7) (1.4) (2.1) (0.8) (0.5) (1.3)

Adjusted profit after tax 68.4 22.1 90.5 47.9 25.5 73.4

Adjusted income statement (JVs proportionally consolidated)

25

30 June 2017 31 December 2016

Group£m

JVs£m

Total£m

Group£m

JVs£m

Total£m

Investment properties 6,097.2 1,153.9 7,251.1 4,714.4 1,605.0 6,319.4

Trading properties 25.4 0.5 25.9 25.4 0.6 26.0

Total properties 6,122.6 1,154.4 7,277.0 4,739.8 1,605.6 6,345.4

Investment in joint ventures 761.3 (761.3) – 1,066.2 (1,066.2) –

Other net liabilities (88.2) (48.5) (136.7) (25.5) (46.8) (72.3)

Net debt (1,741.6) (344.6) (2,086.2) (1,598.4) (492.6) (2,091.0)

Net asset value1 5,054.1 – 5,054.1 4,182.1 – 4,182.1

EPRA adjustments (0.6) (20.0)

EPRA NAV 5,053.5 4,162.1

1 After minority interests

Balance sheet (JVs proportionally consolidated)

26

1 Annualised gross rental income (on a cash flow basis) after the expiry of rent-free periods

Group£m

JVs£m

Total£m

H1 2017 net rental income 103.4 27.3 130.7

Half year impact of:

Disposals since 1 January 2017 (3.9) (4.0) (7.9)

— APP fees within JV net rental income – 4.9 4.9

Acquisitions since 1 January 2017 8.7 0.4 9.1

Developments completed and let during H1 2017 1.2 0.4 1.6

One-off items (0.4) – (0.4)

Pro forma H1 2017 net rental income 109.0 29.0 138.0

Pro forma H1 2017 accounting net rental income

27

1 Total costs include vacant property costs of £3.6m for H1 2017 (H1 2016: £4.2m)2 Includes JV property management fee income of £9.0m and management fees of £1.0m (H1 2016: £8.2m and £0.6m respectively)

Incl. joint ventures at share H1 2017

£m

H1 2016

£m

Gross rental income (less reimbursed costs) 163.6 148.4

Property operating expenses 23.9 22.1

Administration expenses 17.5 15.5

JV operating expenses 6.1 5.7

JV management fees (10.0) (8.8)

Total costs1 37.5 34.5

Of which share based payments 4.2 2.6

Total costs excluding share based payments2 33.3 31.9

Total cost ratio 22.9% 23.2%

Total cost ratio excluding share based payments 20.4% 21.5%

EPRA Cost Ratio

Total cost ratio, 2016-17 (proportionally consolidated)

28

31 December2016

Long-termlettings

Short-termtake-backs

Newdevelopments

Acquisitions Disposals Other 30 June 2017

Speculative development1

1.3%

Speculative development1

1.6%

0.6%

(0.3)%

5.7%

(0.2)%

0.1%

1 Speculative developments completed in preceding two years

Existing standing assets4.1%

Existing standing assets4.2%

(0.1)%

5.5%

EPRA Vacancy Rate

(0.3)%

Vacancy rate reconciliation, 31 December 2016 to 30 June 2017

29

H1 2017 H1 2016

Group£m

JVs£m

Total£m

Group£m

JVs£m

Total£m

Acquisitions 1,143.6 15.5 1,159.1 65.5 39.8 105.3

Development1 184.0 31.0 215.0 97.1 17.6 114.7

Completed properties2 7.9 2.0 9.9 9.8 2.0 11.8

Other3 5.0 1.6 6.6 10.2 2.1 12.3

TOTAL 1,340.5 50.1 1,390.6 182.6 61.5 244.1

1 Includes wholly-owned capitalised interest of £2.5 million (H1 2016: £2.4 million) and share of JV capitalised interest of £0.3 million (H1 2016: £0.5 million).

2 Completed properties are those not deemed under development during the year. Incorporates minor refurbishment (not deemed to be directly ERV enhancing), and infrastructure expenditure and major refurbishment and fit-out of existing buildings (which are considered ERV enhancing)

3 Tenant incentives, letting fees and rental guarantees

• Approximately 50% of completed properties capex is directly linked to generating rents

• c£5m of maintenance capex within “Completed properties”

EPRA capital expenditure analysis

30

30 June 2017£m

Weighted average cost of gross debt,

%1

31 December 2016£m

Weighted average cost of gross debt,

%1

Group gross borrowings 1,805 3.5 1,630 3.9

Group cash & equivalents (63) – (32) –

Group net borrowings 1,742 – 1,598 –

Share of joint venture net borrowings 344 1.4 493 1.7

SEGRO net borrowings including joint ventures at share

2,086 3.1 2,091 3.4

Total properties (including SEGRO share of joint ventures)

7,277 6,345

‘Look-through’ loan to value ratio 29% 33%

1 Figures exclude commitment fees and amortised costs

Look-through loan-to-value ratio

31

Debt maturity profile at 30 June 2017 (pro forma), £m

0

100

200

300

400

500

600

700

800

2017

2018

2019

2020

2021

2022

2023

2024

2025

2026

2027

2028

2029

2030

2031

2032

2033

2034

2035

JV undrawn at share

SEGRO undrawn

JV debt at share

SEGRO PP notes

SEGRO bonds

Debt maturity by type and year, £ millions(as at 30 June 2017, pro forma for repayment of APP secured debt and drawing of US private placement debt due in August 2017)

32

• €1.14:£1 as at 30 June 2017

• € assets 68% hedged by € liabilities

• €741m (£650m) of residual exposure – 13% of Group NAV

• Illustrative NAV sensitivity vs €1.14:

• + 5% (€1.20) = - c.£31m (-c.3.1p per share)

• - 5% (€1.08) = + c.£34m (+c.3.4p per share)

Loan to Value (on look-through basis) at €1.14:£1 is 29%, sensitivity vs €1.14:

• +5% (€1.20) LTV -0.6%-points

• -5% (€1.08) LTV +0.6%-points

• Average rate for 6 months to 30 June 2017 €1.16:£1

• € income 37% hedged by € expenditure (including interest)

• Net € income for the period €37m (£32m) – 35% of Group

• Illustrative annualised net income sensitivity versus €1.16:

• + 5% (€1.22) = –c£1.5m (c0.2p per share)

• - 5% (€1.10) = +c1.7m (c0.2p per share)

Balance sheet, £m30 June 20171

Assets 68% hedged

Euro currency exposure and hedging

0

500

1,000

1,500

2,000

2,500

Other euroliabilitiesEuro currencyswapsEuro debt

Euro gross assets

0

10

20

30

40

50

60

Euro income

Euro costs

Income Statement, £m6 months to 30 June 2017

Income 37% hedged

1 Pro forma for repayment of APP secured debt (in July 2017) and drawing of US private placement (in August 2017).

33

€3.9bn AUM at 30 June 2017 (£3.4bn)

SELP joint venture focuses on big box logistics assets

Other European countries comprise: The Netherlands, Belgium and Austria

— supported by our platform in Germany

Italy and Spain — supported by our platform in France

Czech Republic and Hungary —supported by our platform in Poland

0

200

400

600

800

1,000

1,200

1,400

Germany France Poland Other European

Ass

ets

unde

r m

anag

emen

t, €

m

SELP SEGRO wholly-owned

1,207

1,008

810907

SEGRO Continental Europe assets under management

34

Current development pipeline

Current development pipeline(as at 30 June 2017)

920,400sq m

£46m ERV

£31mrent secured

(68%)

£231m cost to

complete

7.7%Yield on cost

Amazon, Rome

Current development projects, asset type by ERV(30 June 2017)

Urbanwarehouses 21%

Logistics60%

Gross rent from development completions, £m(as at 30 June 2017, including joint ventures at share)

21.4

8.0

2.0

7.9

4.42.4

0.0

10.0

20.0

30.0

40.0

50.0

H2 2017 H1 2018 H2 2018 H1 2019

Pre-let Speculative

35

All figures include joint ventures at share.1 Future development pipeline including near-term projects but excluding land under option.2 Excludes near-term projects and potential developments on land held under option.

Germany18%

UK41%

Italy/Spain14%

Poland9%

Geographic split of land bank, by potential ERV1

(30 June 2017)

Development land bank(30 June 2017)

Future pipeline (2.3m sq m2)

• £1.1bn estimated development costs2

• £113m of potential annual rent2

• 8% estimated yield on TDC1

• 10% estimated yield on new money1

Future development pipeline

And…land held under option

• 750,000 sq m

• £50m of potential annual rent

• Estimated blended yield of 7% on total cost, incl land

Near-term projects

• 243,000 sq m

• c£14m of rent (63% related to pre-lets)

• £146m of potential capex

36

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

0

100

200

300

400

500

600

2011

2012

2013

2014

2015

2016

H1

2017

Land

ban

k va

lue,

£m

Alternative use

Future development pipeline

Long-term and residual land bank

As % of portfolio (right hand scale)

£39m of land bank subject to conditional sale for alternative (residential) use

Additional opportunity from land held under option

Land bank provides optionality and opportunity for growth

37

APPENDIX IIMARKET DATA

-

5,000

10,000

15,000

20,000

25,000

30,000

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

1H17

UK Germany France CEE Rest of Europe

0

5,000

10,000

15,000

20,000

25,000

30,000

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

1H17

Q1 Q2 Q3 Q4

European industrial investment volumesBy country, €m

European industrial investment volumesBy quarter, €m

Source: CBRE

European industrial investment volumes

39

0.0

2.0

4.0

6.0

8.0

10.0

12.0

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 1H17

Warsaw: 6.0%Paris: 5.0%Dusseldorf: 4.8%London: 4.5%

UK 10yr bond: 1.3%

Germany 10yr bond: 0.5%

Source: CBRE, Bloomberg (data correct at 30 June 2017)

Prime logistics yields vs 10 year bond yields

40

0.0

0.5

1.0

1.5

2.0

2.5

0.0

1.0

2.0

3.0

2011

2012

2013

2014

2015

2016

H1

2017


Take

-up

/ av

aila

bilit

y, m

sq

m

Average availability

Take-up

Available space as multiple of annual take-up

UK Big Box supply-demand dynamics1

(m sq m)

1 Source: JLL (logistics warehouses >100,000 sq ft, Grade A); take up reflects H2 2016 and H1 20172 Source: JLL

Speculative UK Big Box completions2

(m sq m)

0%

2%

4%

6%

8%

10%

12%

14%

0.0

1.0

2.0

3.0

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

In d

vpt

Com

plet

ions

, m s

q m

Construction Vacancy

Favourable demand-supply conditions: UK supply shortage


2017

41

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

UK

Ger

man

y

Fran

ce

Belg

ium

Net

h.

Pola

nd Italy

Spai

n

Pre-let Speculative

Logistics space under construction1

(m sq m)

1 Source: 1Q 2017, JLL2 Source: CBRE

European industrial and logistics supply dynamics

0.0

0.5

1.0

1.5

2.0

2.5

0.0

1.0

2.0

3.0

4.0

5.0

2010

2011

2012

2013

2014

2015

2016

1H17


Take

-up

/ av

aila

bilit

y, m

sq

m

Average availability

Take-up

Available space as multiple of annual take-up

France logistics supply-demand dynamics2

(m sq m)


2017

42

0.0

1.0

2.0

3.020

07

2008

2009

2010

2011

2012

2013

2014

2015

2016

1H17

New Second hand

Take-up of warehouse space >100,000 sq ft – UK1

(m sq m)

1 Source: JLL2 Source: CBRE

0.01.02.03.04.0

2008

2009

2010

2011

2012

2013

2014

2015

2016

1H17

0.0

2.0

4.0

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

1Q17

Net demand Lease renewals

Take-up of warehouse space >5,000 sq m – France2

(m sq m)

Take-up of warehouse space – Poland1

(m sq m)

European industrial and logistics — take-up statistics

43

0.0

1.0

2.0

3.020

10

2011

2012

2013

2014

2015

2016

H1

2017

New / Early Marketed Second hand

Availability of Grade A warehouse space >100,000 sq ft– UK1

(m sq m)

1 Source: JLL2 Source: CBRE

0.01.02.03.04.05.0

2009

2010

2011

2012

2013

2014

2015

2016

H1

2017

0%

5%

10%

15%

0.0

0.5

1.0

1.5

2011

2012

2013

2014

2015

2016

1Q17

Pre-let Speculative Vacancy (RHS)

Availability of warehouse space >5,000 sq m – France2

(m sq m)

Warehouse space under construction and vacancy rate – Poland1

(m sq m)

European industrial and logistics — availability statistics

44

1.0

1.1

1.2

1.3

1.4

1.5

1.6

1.7

Dec

-05

Dec

-06

Dec

-07

Dec

-08

Dec

-09

Dec

-10

Dec

-11

Dec

-12

Dec

-13

Dec

-14

Dec

-15

Dec

-16

10yr ave Rolling annual

Heathrow Airport cargo volumes(million metric tonnes)

Source: Heathrow Airport

60

65

70

75

80

Dec

-05

Dec

-06

Dec

-07

Dec

-08

Dec

-09

Dec

-10

Dec

-11

Dec

-12

Dec

-13

Dec

-14

Dec

-15

Dec

-16

10yr ave Rolling annual

Heathrow Airport passenger volumes(millions)

Heathrow Airport cargo and passenger volumes

45

This presentation may contain certain forward-looking statements with respect to SEGRO’sexpectations and plans, strategy, management’s objectives, future performance, costs, revenuesand other trend information. These statements and forecasts involve risk and uncertaintybecause they relate to events and depend upon circumstances that may occur in the future.There are a number of factors which could cause actual results or developments to differmaterially from those expressed or implied by these forward looking statements and forecasts.The statements have been made with reference to forecast price changes, economic conditionsand the current regulatory environment. Nothing in this presentation should be construed as aprofit forecast. Past share performance cannot be relied on as a guide to future performance.

Forward-looking statements

46

2017 HALF YEAR RESULTS/media/Files/S/Segro/documents... · 2017-07-24 · £1.1bn of new financing...

Documents

Transcript of 2017 HALF YEAR RESULTS/media/Files/S/Segro/documents... · 2017-07-24 · £1.1bn of new financing...