Segro jest firmą deweloperską i inwestycyjną oferującą nowoczesne powierzchnie biznesowe w strategicznych lokalizacjach Polski.

Resilient financial results

• Net Rental Income up 10.0% to £269.4 million (2008: £244.9 million) and Adjusted Profit Before Tax (recurring rental profits) up 16.8% to £104.3 million, reflecting inclusion of Brixton results for the last four months of the year.
• Adjusted EPS of 18.3 pence (2008: 29.1 pence), reflecting dilutive effects of rights issue.
• Loss for the year reported under IFRS of £234.1 million (2008: £938.1 million) and basic loss per share of 41.3 pence (2008: 312.2 pence).
• Adjusted NAV per share of 362 pence (2008: 459 pence - pro-forma) reflects second half investment property valuation gains of 9.8% in the UK (excluding Brixton assets) and a deficit of 3.1% in Continental Europe; 7.1% valuation uplift on Brixton assets between date of acquisition and year end.
• Final dividend of 9.4 pence per share making 14.0 pence for the full year (2008: 13.7 pence), in line with previous guidance. Subject to shareholder approval, a scrip alternative will be offered for the final dividend.

Successful acquisition and integration of Brixton plc ("Brixton")

• £1,111.4 million enterprise value acquisition completed on 24 August 2009.
• Brixton business now fully integrated within SEGRO's operations - annualised cost savings of £12.8 million delivered; one-off exceptional costs of £10.7 million incurred.
• Sale of Great Western Industrial Estate for £100 million in November represents an uplift of 7.5% over the valuation at the date of acquisition.

Robust lettings performance despite weak occupancy market

• 465,000 sq m of space let generating annualised rental income of £29.6 million (existing SEGRO portfolio only), (2008: 522,000 sq m and £38.2 million of income). Primarily reflects significantly reduced development activity in Continental Europe.
• Stable takebacks within existing SEGRO portfolio with 309,000 sq m returned representing annualised income of £20.6 million (2008: 300,000 sq m; £20.6 million).
• Group vacancy rate (by rental value) of 13.5% compared with 10.9% at June 2009 and 9.5% at December 2008, primarily reflecting inclusion of the Brixton portfolio.
• UK portfolio vacancy, excluding Brixton assets, of 10.8% compared with 10.3% at June 2009 and 9.1% at December 2008. Increase reflects disposals of let assets during 2009.
• Brixton portfolio vacancy of 22.1% compared with 20.6% at June 2009. Increase reflects sale of Great Western Industrial Estate and net takebacks. Encouraging start to 2010 with momentum building up in the lettings pipeline.
• Continental European portfolio vacancy of 10.7% compared with 12.1% at June 2009 and 10.1% at December 2008. H2 2009 improvement reflects letting success with improved occupancy particularly in Poland, Czech Republic and Belgium since the half year.
• Takebacks from insolvency at modest levels and better than expected at 1.6% of the rent roll (2008: 1.2%). A further 1.9% is represented by tenants in administration butstill in occupation.

Prudent management of the Group's financial position

• Reduced development expenditure for the year of £191.5 million (2008: £323.2 million).
• £436.5 million of net proceeds from property and joint venture disposals (including £318.6 million completed in the second half).
• Renegotiation of bank gearing covenants in February, £500 million rights issue completed in April and placing and open offer for £242 million in July to underpin the Brixton acquisition.
• Weighted average debt maturity extended to 9.5 years through the £300 million 12-year bond issued in November, £100 million of new bank facilities, extension of £270 million of existing bank facilities and cancellation of £550 million of short term facilities.
• Net debt of £2,420.1 million (2008: £2,495.8 million), with cash and undrawn bank facilities of £824.5 million. Adjusted gearing ratio of 91.0% (2008: 119.0%).

Well positioned to benefit from a recovery in occupancy markets

• Potential rental income associated with empty properties of approximately £56 million (based on current ERVs) with a further £21 million of empty property costs.
• Longer term, substantial land bank of 520 hectares (1,285 acres) has the capacity to develop up to 1.8 million sq m of business space, generating annual rental income of approximately £147 million when fully let.

IAN COULL, CHIEF EXECUTIVE, COMMENTED:
"2009 was one of the most extraordinary years in SEGRO's 89 year history.

Faced with the twin headwinds of rapidly falling asset prices and a weakening global economy at the start of the year, with the support of our shareholders we weathered the storm, and completed the transformational acquisition of Brixton.

Whilst UK commercial property prices have surprised on the upside in the last quarter of the year and the situation in Continental Europe appears to be stabilising, we remain cautious about occupier markets, particularly in the UK where we expect the wider economy to lag much of the Continent for the coming year at least. Nonetheless, the Group is in a strong position and is well placed to benefit from any recovery.

Our focus remains on staying close to our customers to minimise take-backs, leasing vacant space, financial and risk management and continuing to seek further opportunities to capitalise on the present market conditions."