UK warehousing company Segro faces high demand for fast delivery

Feb 18 (Reuters) – British warehousing company Segro (SGRO.L) said on Friday the growing popularity of fast delivery services was fueling strong demand in its markets after reporting a 20% rise in annual profit, pushing its shares up about 4%.

The rise of e-commerce during the pandemic is also helping warehouse operators like Segro remain relatively resilient in the face of rising inflationary pressures.

“We’re seeing new names emerge in the space – fast grocery delivery services and other ‘q-commerce’ businesses – and its impact is now being felt more broadly across the portfolio, for example in our townsites in Germany, France and Spain,” Segro said, using a term for “fast trading.”

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In a sign of growing interest in the fast delivery sector, US private equity giant Blackstone (BX.N) said this week it was leading a nearly $24 billion recapitalization of Mileway, the largest European operator of urban warehouses. Read more

Segro said on Friday that adjusted pre-tax profit jumped to 356 million pounds ($484.9 million) in 2021 from 296 million pounds a year earlier, while a measure that reflects the value of its buildings , called EPRA Net Tangible Assets, jumped 40% to 1,137 pence per share.

($1 = 0.7342 pounds)

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Reporting by Aby Jose Koilparambil in Bengaluru; Editing by Sriraj Kalluvila

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