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(Reuters) – UK real estate investment trust Segro Plc (LON:) reported a near 11% jump in annual profit for 2020 on Friday, as an e-commerce boom during the COVID-19 pandemic lifted demand for its warehouses.
Warehousing specialists globally benefited from massive shipments of products bought online during the pandemic, outperforming other commercial real estate companies including mall operators and office space providers, as people increasingly took to remote working and shopped online.
“The pandemic has reinforced the importance of efficient and resilient distribution networks to facilitate the provision of a wide variety of goods and services, leading to increased demand for warehouse space,” Segro Chief Executive Officer David Sleath said.
The 101-year-old firm, which manages big-box and urban warehouses among other assets, logged like-for-like net rental income growth of 2.1%, while adjusted net asset value per share rose 16.3% to 814 pence.
Segro said it expects total development capex for 2021, including on infrastructure, to exceed 700 million pounds.
The company posted an adjusted pre-tax profit for the year ending Dec. 31, 2020 of 296.5 million pounds ($414.12 million) compared with 267.5 million pounds a year earlier.
Segro declared a final dividend of 15.2 pence per share, up from 14.4 pence payment a year earlier.
($1 = 0.7160 pounds)
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