Segro, the U.K. real-estate investment trust, announced a swing to a pretax loss for the first half of this year due to losses on property gains. However, adjusted profit and revenue saw an increase.
For the six months ending June 30, Segro reported a pretax loss of £33 million ($42.7 million), compared to a profit of £1.375 billion for the same period in 2022. This change was driven by a loss of £188 million on both realized and unrealized property losses, as opposed to the £1.17 billion gains recorded the previous year.
The company’s preferred metric, adjusted pretax profit, reached £198 million, which is higher than the £193 million achieved in the same period of the previous year.
Revenue for the first half of the year rose to £342 million, up from £330 million in the comparable period.
Net rental income saw a slight decline, reaching £224 million compared to £228 million last year.
Adjusted net asset value, an important metric for the industry, was reported as 937 pence per share at June 30, compared to 966 pence at December 31.
In a move demonstrating their confidence, the board increased the dividend to 8.7 pence from 8.1 pence in H1 2022.
Segro expressed their optimism about the future, stating, “Our prime portfolio and market-leading operating platform combine to create a strong competitive advantage and position us well to create value through the cycle for all of our stakeholders.”