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SEGRO's top line hit by disposals in 2012

European industrial property developer SEGRO reported a slight rise in profits in 2012 but the top line was hit by the impact of disposals.

European industrial property developer SEGRO reported a slight rise in profits in 2012 but the top line was hit by the impact of disposals.

Headline net rental income fell 6.0% last year from £271.2m to £254.8m, owing to the impact of £548.1m of disposals over the period as well as a weaker euro average exchange rate.

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The company said it is targeting a further £300-500m of disposals this year, including the £152m relating to Thales and MPM which was completed at the start of the year.

"Through disposals, selective acquisitions and development, we have taken substantial steps forward with our strategy to build a high quality portfolio of modern, well-located warehouses, light industrial and data centre assets," said Chief Executive Officer David Sleath.

The net asset value per share slumped 13.5% from 340p to 294p in 2012. This was down 6.2% on a like-for-like basis during the year but the company said that this was due to the performance of its large "non-strategic" assets, small "non-core" holdings and suburban offices in the UK's south east.

In 2012, profit before tax increased by 4.6% from £138.5m to £144.9m, while earnings per share rose 4.9% from 18.4p to 19.3p, as a reduction in net rental income was offset by declines in finance costs and administration expenses.

"We are pleased with the progress made by the business over the past year. Our strong operational performance in 2012 has driven good earnings growth," Sleath said.

The company left its dividend per share unchanged at 14.8p.

Shares were down 0.12% at 252.4p in early trading on Wednesday.

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