July 25, 2017 / 6:16 AM / in 3 years

Rise in online shopping boosts warehouse developer Segro's asset value

British property developer, Segro Plc (SGRO.L), reported a 5.4 percent rise in the value of its assets due to growing demand for warehouses and industrial property from online retailers.

Segro said its net asset value per share - a gauge of a developer's property value - rose to 504 pence ($6.57) in the six months ended June 30 from 478 pence a year earlier. (bit.ly/2usUBYS)

The company, which manages assets worth 8.4 billion pounds across Europe, said like-for-like net rental income grew 3.9 percent over the period.

As online shopping continues to claw market share from traditional retailers, distribution warehouses have seen total returns rise, making them a top pick among yield-hungry investors.

These big industrial units with sorting technology are used by companies such as Amazon.com Inc (AMZN.O) and Tesco Plc (TSCO.L) for quick and efficient distribution of products bought online.

Segro raised its interim dividend by 5 percent to 5.25 pence.

The company said it expects the overall level of development expenditure for the year to exceed 350 million pounds, above the 300 million pounds it indicated earlier.

Reporting by Esha Vaish and Arathy S Nair in Bengaluru; editing by Jason Neely and Louise Heavens

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