Segro hits disposal target

Segro, the industrial property specialist forever doomed to be remembered as Slough Estates, has offloaded some more non-core assets, bringing it above its disposal target for the full year.

The sale of 10 "older" industrial estates across the south of England for £111m brings the total level of sales for the year to £503m, a crucial metric for Segro as it seeks to focus on high quality estates. The company had targeted sales worth £500m at the beginning of the year.

The group's half year results, also released today, show net rental income down 3.4% on 2011, but this comparison includes properties which have now been sold, on a like-for-like basis rental income grew 1% to £130.9m

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Profits before tax came in at £74.9m, up 5.3% on the prior year, while the interim dividend will be maintained at 4.9p per share.

News of the asset sale is probably responsible for Segro's strong rise this morning, the shares were up 5% at 9:37 and have now gained 14% since the start of 2012.

BS