Segro sees net profit drop 7.5% in 2013

Listed property group Segro reported a 7.5% decline in EPRA pre-tax profit to £134 mln (€160 mln) in 2013, down from £144.9 mln a year earlier.

EPRA net asset value per share rose 6% to 312 pence, from 294 a year earlier.

The group's net debt dropped by nearly one third from £2 bn at year-end 2012 to £1.45 bn in December 2013.

In the 12 months ended 31 December 2013, the UK REIT said it made 'significant strategic progress in reshaping the portfolio, building critical mass in its target markets, reducing net debt and introducing third party capital'.

'2013 has been a strong year for Segro,' commented CEO David Sleath, pointing among other things to the company's 30% reduction in net debt. 'Our actions over the last two years have significantly improved the group’s property portfolio and financial position,' he said.

As part of the reshaping of its portfolio, Segro said it carried out £591 mln of disposals over the year, at an average premium of 4.7% above 31 December 2012 book values. It also bought £141 mln of assets at a net initial yield of 7.1%.