SEGRO plc (SGRO) 2019年年度報告「LSE」.pdf

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1、SEGRO PLCANNUAL REPORT&ACCOUNTS 2019FOR MORE INFORMATION ON SEGROS ACTIVITIES AND PERFORMANCE,PLEASE VISIT OUR WEBSITE:WWW.SEGRO.COM/INVESTORSThe Directors present the Annual Report for the year ended 31 December 2019 which includes the Strategic Report,Governance report and audited Financial Statem

2、ents for the year.References to SEGRO,the Group,the Company,we or our are to SEGRO plc and/or its subsidiaries,or any of them as the context may require.Pages 12 to 72 inclusive,comprise the Strategic Report,pages 124 to 125 inclusive comprise the Directors Report and pages 97 to 117 inclusive compr

3、ise the Directors Remuneration Report,each of which have been drawn up and presented in accordance with English company law and the liabilities of the Directors in connection with these sections shall be subject to the limitations andrestrictions provided by such law.The Annual Report contains forwa

4、rd-looking statements.For further information see inside back cover.SEGRO is a UK Real Estate Investment Trust(REIT),and a leading owner,asset manager and developer of modern warehousing and industrial property.CONTENTSCHIEF EXECUTIVES STATEMENTSEE PAGES 1215MARKET OVERVIEWSEE PAGES 1619OUR STRATEGY

5、SEE PAGES 2233REGIONAL REVIEWSSEE PAGES 3033RESPONSIBLE SEGROSEE PAGES 426402 11OVERVIEWWHAT WE DO08WHERE WE DO IT10 12 72STRATEGIC REPORTCHIEF EXECUTIVES STATEMENT12MARKET OVERVIEW16OUR BUSINESS MODEL20OUR STRATEGY22SECTION 172 STATEMENT23REGIONAL REVIEW30FINANCE REVIEW34KEY PERFORMANCE INDICATORS4

6、0RESPONSIBLE SEGRO42PRINCIPAL RISKS6573 126GOVERNANCEBOARD OF DIRECTORS74CHAIRS INTRODUCTION76BOARD LEADERSHIP AND COMPANY PURPOSE78DIVISION OF RESPONSIBILITIES84COMPOSITION,SUCCESSION AND EVALUATION88AUDIT,RISK AND INTERNAL CONTROLS92DIRECTORS REMUNERATION REPORT97DIRECTORS REMUNERATION POLICY118DI

7、RECTORS REPORT124STATEMENT OF DIRECTORS RESPONSIBILITIES126 127 199FINANCIAL STATEMENTSINDEPENDENT AUDITORS REPORT TO THE MEMBERS OF SEGRO PLC128GROUP INCOME STATEMENT135GROUP STATEMENT OF COMPREHENSIVE INCOME135BALANCE SHEETS136STATEMENTS OF CHANGES IN EQUITY137CASH FLOW STATEMENTS139NOTES TO THE F

8、INANCIAL STATEMENTS140FIVE-YEAR FINANCIAL RESULTS199 200 202FURTHER INFORMATIONFINANCIAL INFORMATION200SHAREHOLDER INFORMATION201GLOSSARY OF TERMS202 OUR PEOPLE OUR COMMUNITYHEALTH&SAFETYOUR STAKEHOLDERS OUR ENVIRONMENTEFFICIENT CAPITAL AND CORPORATE STRUCTUREOUR GOALDISCIPLINED CAPITAL ALLOCATIONOP

9、ERATIONAL EXCELLENCESEGRO PLC|ANNUAL REPORT&ACCOUNTS 2019INVESTING in high quality,sustainable buildings in prime locations since 1920.ENABLING extraordinary things to happen by supporting the needs of our customers.INNOVATING by anticipating trends and constantly adapting our business and the desig

10、n of our buildings.CARING about our people,communities,environment and stakeholders.READ MORE ABOUT WHATS BEHIND OUR STRATEGY ON PAGES 2223OUR RICH HISTORYWe have included a number of interesting stories throughout this report that have helped shape SEGRO over the years.FOR MORE INFORMATION,PLEASE V

11、ISIT:WWW.SEGRO.COM/ABOUT-US/202001OVERVIEWSTRATEGIC REPORTGOVERNANCEFINANCIAL STATEMENTSENABLINGCREATING EXTRAORDINARY SPACEThe common understanding of a warehouse,a large building for storing things before they are sold,used or sent out to shops1,is far from an accurate description of what really h

12、appens inside our buildings.Warehouses come in lots of different sizes and hiding behind the deceptively simple exterior,is a fascinating array of businesses that use our space to assemble,design,create,research,distribute,construct and undertake a wide variety of other activities,as well as the mor

13、e traditional functions of storage and manufacturing.Warehouses are very adaptable spaces and our customers fit them out with mezzanine levels,workshops,increasingly high-tech production and distribution lines,showrooms,kitchens and even research laboratories.Essentially,if something doesnt happen i

14、n an office building or outside it probably happens inside a warehouse.More than half of our rent comes from businesses linked to e-commerce(including third party logistics operators and parcel delivery companies).The development of hub and spoke networks(large central warehouses,complemented by sma

15、ller distribution centres on the edges of cities)combined with the automation of internal processes,has made it possible for items ordered online to be delivered the following day or in some cases within hours.The expansion of the cloud and the ability to access information on-the-go has been facili

16、tated by the growth of data centres-huge warehouses full of hard drives that store this information.The Slough Trading Estate is now home to 27 data centres and is the second largest hub in the world.Our warehouses are also home to businesses from the food and beverage industry.In Paris,Agricool gro

17、w strawberries using a method that requires 90 per cent less water and nutrients in a building within SEGRO Park La Courneuve and lots of the food consumed in Londons hotels,restaurants and high street food chains was either produced in or travelled through our Park Royal estates.Navigation Park,one

18、 of our North London estates,is even home to Camden Town Brewery.The Slough Trading Estate is now the second largest hub of data centres in the world.”PAUL LEWISREGIONAL DIRECTOR,THAMES VALLEY&DATA CENTRES1 Cambridge dictionary definition 1932THE MARS COMPANYIn 1932 Frank Mars gave his son Forrest t

19、he money to set up his own chocolate business in the UK.Forrest ended up in Slough and rented a unit on the Slough Trading Estate,where he invented the Mars Bar.Almost 90 years later Mars Bars are still being produced on the estate,with more than 2.5 million bars being made each day and distributed

20、across Europe.Its also now home to a research and development facility,designing the chocolate bars of the future.FOR MORE INFORMATION,PLEASE VISIT:WWW.SEGRO.COM/ABOUT-US/202002SEGRO PLC|ANNUAL REPORT&ACCOUNTS 2019 2020 RESEARCH&DEVELOPMENTA number of our warehouses are used for cutting edge researc

21、h and development,the findings of which could have a meaningful impact on our future.In one of our warehouses close to Schiphol airport,Kite Pharma have installed scientific laboratories in which they are working on immunotherapy treatment.Their technology takes a cancer patients blood and genetical

22、ly modifies some of the cells before reintroducing it back into the bloodstream where it will identify and attack cancerous cells,hopefully curing the patient of the disease without the need for chemotherapy and other chemical based treatments.General manufacturing is also still regularly carried ou

23、t in our buildings.Brompton have their headquarters,a manufacturing facility and their flagship store in our Greenford estate,exporting their iconic folding bikes from London to all over the world.And in Germany,LUSH manufacture their handmade sustainable cosmetics in SEGRO Park Dsseldorf Sd.Beyond

24、this our warehouses are homes to businesses involved in film and media,yacht design and construction,leisure activities (such as climbing walls and trampoline parks)and a huge number of other industries.When brilliant businesses find outstanding spaces,extraordinary things happen.AGRICOOL A NEW WAY

25、TO GROW FOODTwo French farmers sons spent time researching and developing a new way to grow food.In their new space at SEGRO Business Park La Courneuve in Paris,they are growing food more productively,using 90%less water and nutrients,consuming only renewable energy and produced 100%locally.INCREASE

26、 IN FOOD GROWING PRODUCTIVITY 120 xREDUCTION IN WATER AND NUTRIENT CONSUMPTION-90%03OVERVIEWSTRATEGIC REPORTGOVERNANCEFINANCIAL STATEMENTSINNOVATINGCREATING EXTRAORDINARY SPACEThe world around us is fast changing,from the industrial revolution of the early 1900s to the technological revolution that

27、we are currently experiencing,and successful businesses constantly innovate so that they stay relevant to their customers.SEGRO has undergone various transformations since it was founded in the 1920s but a focus on industrial property has remained at its core.And whilst our business has had to perio

28、dically reshape itself,evolving customer requirements have also led to changes in the design of our warehouses.The recent technological revolution has resulted in increased automation,with many of our customers now using robotics in their production and distribution lines.This has resulted in wareho

29、uses becoming much taller,often with mezzanine levels,as businesses seek to intensify their use of the space.Power has also become more important and access to it is now a key factor when deciding where to develop new estates.E-commerce has been another output of the technological revolution that ha

30、s changed the requirements for warehouse space as retailers adapt their supply chains for an omni-channel delivery model.The need for fast and efficient throughput of parcels has resulted in the creation of cross-dock warehouses with a large number of loading doors and bigger yards for the movement

31、of both HGVs and smaller local delivery vehicles.Environmental sustainability has been the most recent focus of innovation as we work to reduce the carbon footprint of our buildings.This means looking not just at the development process but also the entire life cycle of a warehouse,including the use

32、 of resources when occupied by our customers.1920-25THE SLOUGH TRADING COMPANY LTDThe Slough Trading Estate was formed after WW1 when our founders purchased a repair depot for former British military vehicles.They rehired the original War Department staff and began to adapt the vehicles for civilian

33、 use before selling them on.By 1925 they had repaired the last of them and were left with the empty warehouse space that had formerly been workshops and storage.They began to rent out the space to local businesses and became a property company.The Slough Trading Estate was born.FOR MORE INFORMATION,

34、PLEASE VISIT:WWW.SEGRO.COM/ABOUT-US/2020COMMUNAL GREEN SPACEProviding seating and a place to unwind.GREEN/LIVING WALLImproving air quality and energy levels.TESLA BATTERIESStoring generated electricity for use during off-peak hours.SEGRO PARK RAINHAM PHASE 2This new development will feature some of

35、the most cutting-edge innovations in warehouse design.04SEGRO PLC|ANNUAL REPORT&ACCOUNTS 20192020 INTENSIFYING LAND USEAs urbanisation continues and the population of cities such as London and Paris grow,they need not only more housing but also more warehouse space in order to respond to the increas

36、ed demand for goods and services.But land supply in cities is limited and this is likely to result in innovations to intensify the use of the land.This may involve multi-level warehouses such as those seen in Asia and the introduction of mixed use schemes that combine underground logistics with offi

37、ce or residential space on the upper levels.One of our newest London developments,SEGRO Park Rainham Phase 2,will push the boundaries of innovation and sustainability even further.Its features include transparent ceiling panels to provide more natural daylight,LED lighting,electric car charging poin

38、ts,photovoltaic panels on all roofs and some walls,the use of smart building technology and plug and play connections for Tesla batteries that can store power during off-peak hours.We are constantly monitoring emerging trends to ensure that our buildings are fit for the future.Our investment in a fu

39、nd managed by Fifth Wall,the worlds largest venture capital firm focused on technology for global real estate,helps us to remain at the cutting edge of new advancements.We also announced in January 2020 the creation of a Strategy,Innovation and Investment team which aims to ensure that we take a cle

40、ar and consistent approach and continue to navigate and benefit from the structural trends at play in our sector.MAXIMISING SPACE6m under-croft heights to increase warehouse capacity without increasing floor space.MODERN INTERIORSContemporary interior finishes for offices,facilities and entrance foy

41、ers.SUSTAINABILITY FEATURESTargeting BREEAM Excellent rating,carbon neutrality/EPC A+and incorporating photovoltaic&translucent panels and LED lighting.SMART BUILDINGSAll buildings will feature smart building technology and plug&play connections for batteries that store generated electricity.BIODIVE

42、RSE ENVIRONMENTNative flora will enhance the environment,whilst boosting the natural habitat and improving wellbeing for customers.WELLBEING FOCUSAn outside communal seating area,plenty of natural light and a green/living wall in Unit 10 will help all buildings achieve WELL Certification.05OVERVIEWS

43、TRATEGIC REPORTGOVERNANCEFINANCIAL STATEMENTSCREATING EXTRAORDINARY SPACEAs a listed company financial performance will always be important,but at SEGRO this isnt our only focus.We care about our employees,our customers,our communities and our environment and we attempt to balance the differing inte

44、rests of all of our stakeholders in the course of our decision making.OUR EMPLOYEESWe want our employees to be inspired by their work and to reach their full potential.Health and wellbeing is an important part of this and in 2019 we have built on our Mental Health and Wellbeing programme.This includ

45、ed the introduction of 25 mental health ambassadors across the business,awareness training for all line managers and a number of other initiatives such as organising yoga and meditation workshops.OUR CUSTOMERSHanovia,our longest standing customer,has been on the Slough Trading Estate since 1924,occu

46、pying a variety of different buildings during that time.We work closely with our customers to adapt our offering to suit their business needs.This includes the small sized businesses in our Enterprise Quarters,to whom we provide flexible,all-inclusive leases to make the day-to-day running of their o

47、perations as straightforward as possible.And this also extends to our largest customers,many of whom share their plans with us so that we can help them to secure space and develop their distribution network.We take pride in the strong customer relationships that we have built and the part that we ha

48、ve played in the success of their businesses.OUR COMMUNITIES We aspire to have a positive impact on the communities surrounding our estates and this goes beyond the direct effects of attracting new businesses who pay rates and creating new jobs.We focus our community efforts on helping the unemploye

49、d into work and in 2019 the SEGRO Community Fund donated 107,000 to 22 charities across London and the Thames Valley.1,350 people benefited from our help and of those 165 secured sustainable employment,663 undertook work experience and 1,300 completed CV enhancing training.CARING 1947SLOUGH INDUSTRI

50、AL HEALTH SERVICEIn 1947,a year before the creation of the NHS,the Slough Trading Estate started the Slough Industrial Health Service for the wellbeing of those who worked for the businesses located on the estate.FOR MORE INFORMATION,PLEASE VISIT:WWW.SEGRO.COM/ABOUT-US/202006SEGRO PLC|ANNUAL REPORT&

51、ACCOUNTS 2019OUR ENVIRONMENTIn addition to the efforts that we make to reduce the carbon footprint and resource usage of our buildings,we also make efforts to promote biodiversity.We create parks,plant trees and wild flowers and in Italy we utilise the green space around our developments by partneri

52、ng with local communities to allow sheep and buffalo to graze on the land.We have now installed more than 75 bee hives on our estates across Europe,home to over 3.7 million bees and have trained SEGRO employees as apiarists to look after them.2020 TACKLING CLIMATE CHANGEClimate change remains the bi

53、ggest global challenge that we face and every business has a responsibility to do their part.Our SEGRO 2025 targets aim to reduce our carbon footprint and resource usage,but we also look at ways in which we can produce energy(for example the installation of photovoltaic panels)to offset not just our

54、 carbon emissions,but also those of our customers.In addition to this we are trying to help our customers to reduce their own carbon footprints.This includes providing electric vehicle charging capability in all new developments and in 2019 we launched a sensor technology trial in a number of wareho

55、uses so that we can monitor their usage and educate our customers on how they can use the space more efficiently.BEE HIVES ACROSS THE PORTFOLIO75NUMBER OF SEGRO BEES3.75 million OUR PEOPLE OUR COMMUNITYHEALTH&SAFETYOUR STAKEHOLDERS OUR ENVIRONMENTFOR MORE INFORMATION,PLEASE VISIT:WWW.SEGRO.COM/CSR/E

56、NVIRONMENT07OVERVIEWSTRATEGIC REPORTGOVERNANCEFINANCIAL STATEMENTSWHAT WE DOOUR PURPOSE:WE CREATE THE SPACE THAT ENABLES EXTRAORDINARY THINGS TO HAPPENPOSITIONED TO SATISFY CHANGES IN CONSUMER AND BUSINESS BEHAVIOUR:Warehouses have a vital role to play as part of national and international infrastru

57、cture.They provide the space to store,sort,create and distribute products and are important sources of employment.We create the environments that enable our customers to run their unique operations and serve their customers.OUR VALUES:Our core beliefs about how we do business which guide our decisio

58、n making,large and small.They are the way in which we work together to make things happen.SAY IT LIKE IT IS STAND SIDE BY SIDE KEEP ONE EYE ON THE HORIZON IF THE DOOR IS CLOSED DOES IT MAKE THE BOAT GO FASTER?We develop,own,rent out and manage warehouse and industrial properties for our customers in

59、 the UK and Continental Europe.BIG BOX WAREHOUSESLOCATED IN NATIONAL/REGIONAL DISTRIBUTION HUBSBig box warehouses are typically used for storage and processing of goods for regional,national and international distribution by larger trucks or by rail.The requirement for large land plots means that th

60、ey tend to be located some distance from the ultimate customer but on major transport routes(mainly motorways,ports,rail freight terminals and airports)to allow rapid transit.EXAMPLES OF USERS OF OUR BIG BOX SPACE:Retailers(online and traditional)Third party logistics and transport companiesManufact

61、urersDistributors and wholesalersBIG BOX WAREHOUSEFOR MORE INFORMATION SEE PAGE 46OVERVIEW08SEGRO PLC|ANNUAL REPORT&ACCOUNTS 2019OUR TOP 20 CUSTOMERS:Our top 20 customers represent headline rent of 136 million in aggregate,32%of the Groups total headline rent at 31December 2019.1.Deutsche Post DHL2.

62、Amazon3.Fedex4.Royal Mail5.Worldwide Flight Services6.British Airways7.La Poste(DPD)8.Equinix9.XPO10.Kuehne&Nagel11.Tesco12.Virtus13.Geodis14.CyrusOne15.ID Logistics16.Mars17.IKEA18.Leroy Merlin19.Swissport20.SainsburysCUSTOMER TYPE BY HEADLINE RENT(SEGRO SHARE)1.Transport and logistics23%2.Food and

63、 general manufacturing18%3.Retail(physical and online)16%4.Post and parcel delivery11%5.Wholesale and retail distribution10%6.Technology,media and telecoms 9%7.Services and utilities 7%8.Other 6%ASSET TYPE BY VALUE(SEGRO SHARE)1.Urban warehousing67%2.Big box warehousing31%3.Other uses2%URBAN WAREHOU

64、SESLOCATED IN OR CLOSE TO MAJOR CITIESUrban warehouses are located within easy reach of population centres and business districts.They are used by a wide variety of customers who need rapid access to their own customers and to labour and are therefore close to main roads and public transport.Land su

65、pply in and around urban areas tends to be less available so urban warehouses tend to be smaller.They are often clustered in estates which can comprise terraces of smaller units(typically 3,500 sq m),larger detached single-let warehouses(typically larger than 3,500 sq m)or a mixture of the two.READ

66、MORE ABOUT OUR PORTFOLIO IN OPERATIONAL REVIEW ON PAGES 30-33EXAMPLES OF USERS OF OUR URBAN SPACE:Retailers and supermarketsParcel delivery and third party logistics companiesFood preparation companiesData centre operatorsAir cargo handling companiesWholesalersURBAN WAREHOUSESTOTAL AUM12bnTOTAL SPAC

67、E8m sq mCUSTOMERS 1,190EMPLOYEES3322345678123 109OVERVIEWSTRATEGIC REPORTGOVERNANCEFINANCIAL STATEMENTSWHERE WE DO ITOVERVIEWOur portfolio is concentrated in areas expected to benefit from sustainable occupier demand with limited supply of competing product.Our buildings are located in,or close to,m

68、ajor urban conurbations and around key transport hubs.OUR MAIN LOCATIONS:REGIONAL PORTFOLIO BY VALUE:BIG BOX WAREHOUSESDemand for large warehouses for inventory storage and regional,national and international distribution is growing,particularly amongst online retailers.OTHER USESThe location of our

69、 urban warehouse estates and land holdings,close to major population centres,makes them ideal for other,higher value uses,such as car showrooms,self storage facilities and trade counters which need to be easily accessible by employees and customers.URBAN WAREHOUSESProximity to major urban areas is o

70、f critical importance to many occupiers:retailers and parcel delivery companies must distribute goods efficiently to both store networks and homes and offices(last mile delivery).GEOGRAPHICAL SPLIT BY VALUE(SEGRO SHARE)1.Greater London39%2.Thames Valley17%3.National Logistics9%4.Southern Europe 17%F

71、rance10%Italy/Spain7%5.Northern Europe12%Germany/Austria11%Netherlands1%6.Central Europe6%Poland5%Czech Republic1%READ MORE ABOUT OUR PORTFOLIO IN OPERATIONAL REVIEW ON PAGES 30-332345611.GREATER LONDONProviding modern space in asupply-constrained market.1.London Airports18%2.Park Royal15%3.Rest of

72、London6%4.Rest of SEGRO61%234139%2.THAMES VALLEYProviding modern space for growing businesses.1.Slough Trading Estate16%2.Rest of Thames Valley1%3.Rest of SEGRO83%23117%4.SOUTHERN EUROPEIncreasing development in France;building scale in Italy and Spain.1.France10%2.Italy6%3.Spain1%4.Rest of SEGRO83%

73、234117%6.CENTRAL EUROPEMaking good progress in acompetitivemarket.1.Poland5%2.Czech Republic1%3.Rest of SEGRO94%2316%3.NATIONAL LOGISTICSFacilitating efficient supply chains and parcel delivery.1.Midlands8%2.South East1%3.Rest of SEGRO91%2319%5.NORTHERN EUROPEDelivering quality big box and urban war

74、ehouses in major cities.1.Germany10%2.Netherlands1%3.Austria1%4.Rest of SEGRO88%234112%10SEGRO PLC|ANNUAL REPORT&ACCOUNTS 2019OUR MAIN LOCATIONS:PARISLYONMADRIDMILANROMEMUNICHCOLOGNEBOLOGNATILBURGLILLEAMSTERDAMHAMBURGFRANKFURTBERLINPRAGUEKATOWICEWARSAWDSSELDORFMARSEILLELONDON&THAMES VALLEYBARCELONAM

75、IDLANDSPOZNANWROCLAWODZ 1920100 YEARS AGO SLOUGH DEPOT CONSTRUCTIONSlough was chosen by the War Department as the location of their vehicle repair depot because it is close to London and main communication routes,namely the A4 Bath Road and GWR Main Line Railway.The added advantage was that there wa

76、s gravel in the ground and a water table 1,000 ft down.FOR MORE INFORMATION,PLEASE VISIT:WWW.SEGRO.COM/ABOUT-US/202011OVERVIEWSTRATEGIC REPORTGOVERNANCEFINANCIAL STATEMENTSCHIEF EXECUTIVES STATEMENTWE APPLY OUR STRATEGY TO MAXIMISE PERFORMANCE:1.OUR GOAL2.DISCIPLINED CAPITAL ALLOCATION3.OPERATIONAL

77、EXCELLENCE4.EFFICIENT CAPITAL AND CORPORATE STRUCTUREREAD MORE ABOUT HOW WE ARE DELIVERING ON OUR STRATEGY:OUR BUSINESS MODEL PAGES 20-21OUR STRATEGY PAGES 22-23PRINCIPAL RISKS PAGES 65-72KPIs PAGES 40-41OUR RESPONSIBLE SEGRO FRAMEWORK HELPS GUIDE OUR BUSINESS DECISIONS:OUR PEOPLE OUR COMMUNITYHEALT

78、H&SAFETYOUR STAKEHOLDERS OUR ENVIRONMENTREAD MORE ABOUT HOW WE ARE COMMITTED TO SUSTAINABILITY ON PAGES 42-64David Sleath reports on SEGROs performance during the past year and looks to the future.2019 was another year of strong financial and operational performance by SEGRO.Earnings growth has been

79、 supported by rental growth in our standing assets and the additional income generated from our active development pipeline.As a result we are recommending an increased dividend to shareholders.Our portfolio of prime,modern warehouses in key strategic markets,with more than half located in Europes m

80、ost supply-constrained urban areas,continues to position us well for sustainable success and delivers on our purpose of creating the space that enables extraordinary things to happen.This year,on 19 May,SEGRO will celebrate its centenary.Over the past one hundred years,not only has our business chan

81、ged significantly,but so has the world around us and expectations of listed companies now go much further than simply returning a profit for shareholders.Generating attractive financial returns from our business,based on a strong balance sheet,continues to be vital for the long-term sustainability o

82、f SEGRO as a company.It has always been part of our DNA to take into consideration the interests of our stakeholders and wider society in the way that we do business.We aim to minimise our impact on the environment in which we operate,work in harmony with the communities of which we are part,and to

83、have a positive impact on the customers,shareholders and other stakeholders which we serve.As we celebrate our centenary in 2020 the balance between our financial and social returns continues to be central to our strategy as we look to position ourselves for the years ahead.Looking back on 2019,the

84、main highlights included:A strong performance in securing new rent.65.8 million was signed in the period.This included a particularly strong performance from increased rent on existing space,helped by successful re-gears in our Heathrow portfolio.Continued growth and modernisation of our portfolio w

85、ith the addition of prime,sustainable warehouses through our development programme.2019 was another record year of development with the completion of 871,800 sq m of space,of which 92 per cent is already let,generating over 40 million of new income.94 per cent of the eligible certified development c

86、ompletions were rated BREEAM“Very Good”or“Excellent”(or equivalent).Creating opportunities to add to our portfolio with targeted acquisitions of both assets and land in some of our key urban markets,including completed assets and land in the supply-constrained London market.POSITIONING OUR MODERN,SU

87、STAINABLE PORTFOLIO FOR LONG-TERM SUCCESSAnother year of strong performance across our business as we head into our centenary year with confidence.”DAVID SLEATHCHIEF EXECUTIVE12SEGRO PLC|ANNUAL REPORT&ACCOUNTS 2019A 38 per cent increase in our renewable energy capacity bringing it to 18.5 MW.On-site

88、 renewable energy generation remains a core part of SEGROs sustainability strategy to transition towards a low carbon future.A successful 451 million equity placing in February 2019 which has given us the capacity to continue to add to our development pipeline and help us to grow our rental income o

89、rganically.This activity has been reflected in a strong set of results:adjusted profit before tax is up 10.8 per cent to 267.5 million(IFRS:902.0 million)and adjusted earnings per share are up 4.3 per cent to 24.4 pence(IFRS:79.3 pence),or 9.9 per cent excluding the impact of the SELP performance fe

90、e received in 2018.Our EPRA NAV per share is up 8.9 per cent to 708 pence(IFRS:697 pence)driven substantially by a 7.5 per cent increase in our portfolio value,which now totals 10.3 billion(reflecting our share of 12.2 billion of assets under management).Our balance sheet is also in good shape.Our a

91、verage cost of debt remains low at 1.7 per cent(31 December 2018:1.9 per cent)with an average duration of 10.0 years(31 December 2018:10.2 years).SEGRO remains appropriately and efficiently funded with a loan-to-value ratio of 24 per cent(31 December 2018:29 per cent)and we have 1.4 billion of cash

92、and available facilities at our disposal,providing significant financing flexibility.The combination of a strong set of financial results in 2019 and our confident outlook for 2020 and beyond means that we are recommending a 8.7 per cent increase in final dividend to 14.4 pence per share,resulting i

93、n a total distribution of 20.7 pence for 2019 as a whole(2018:18.8 pence).OUR MARKETSSEGRO has continued to thrive,despite heightened levels of geopolitical and macro-economic uncertainty.The structural trends of urbanisation and technology remain strong tailwinds for our business and the impact of

94、these can be seen at its greatest where the two combine,most notably in our urban markets,in which more than two-thirds of our assets are located.Whilst these trends have been evident in the UK for some time and have driven strong rental growth across both our big box and urban portfolios,on the Con

95、tinent the impact is only now beginning to be realised in a more meaningful way.E-commerce penetration in both France and Germany is now nearing the level at which retailers start to adapt their supply chains for an omni-channel delivery model.In the UK this has resulted in a requirement for more wa

96、rehouse space with a combination of larger centrally located fulfilment centres,complemented by smaller urban distribution centres,and we are starting to see a similar pattern emerge in Continental Europe.Businesses linked to e-commerce(retailers,third party logistics operators and parcel delivery c

97、ompanies)continue to make up just over half of our rent roll but beyond this a very wide range of other companies use our space to manufacture goods(for example food,electrical components,pharmaceuticals)as well as to provide services(for example,car servicing,laundry,data centres)to urban populatio

98、ns.As European cities become more densely populated,demand for goods and services rapidly increases and at the same time consumers want these delivered faster than ever before.It is therefore important for even non e-commerce related businesses to be close to their end users(as well as to their work

99、force),driving further demand for urban warehouse space.Our portfolio of well-located,modern warehousing is highly desirable to all of these different types of businesses and at the same time the supply response continues to be controlled.Within our urban markets,industrial land is in short supply a

100、nd is frequently converted into other high value alternative uses(primarily residential),putting upward pressure on rental values.We have seen strong rental growth throughout 2019 in our UK,French and German urban warehouse portfolios.In the big box market supply tends to keep up with demand,with mo

101、st being built on a pre-let basis,and as a result rental growth is more moderate.The recent increase in speculative development in the UK is being absorbed by take-up levels that continue to be higher than the long-term average.Demand for our prime logistics parks is strong with two further large pr

102、e-lets signed during the year.We continue to take a low risk approach to development,particularly in big box warehouses,and have already pre-let 60 per cent of our current pipeline.FINANCIAL HIGHLIGHTSADJUSTED PROFIT1 BEFORE TAX267.5m2018:241.5mIFRS PROFIT BEFORE TAX902.0m2018:1,009.1mADJUSTED EARNI

103、NGS PER SHARE1 24.4p2018:23.4pIFRS EARNINGS PER SHARE 79.3p2018:105.4pEPRA NAV PER SHARE1 708p2018:650pIFRS NAV PER SHARE 697p2018:644pPORTFOLIO VALUE2 10.3bn2018:9.4bnTOTAL DIVIDEND PER SHARE 20.7p2018:18.8pImportant Explanatory Notes about Alternative Performance Metrics used in this Report1 EPRA

104、and Adjusted metrics:TheFinancial Statements are prepared under IFRS.SEGRO management monitors a number of adjusted performance indicators in assessing and managing the performance of the business which they believe reflect the underlying recurring performance of the property rental business which i

105、s the Groups core operating activity.These include those defined by EPRA as part of their mission to establish consistency of calculation across the European listed real estate sector.Pages 147-148 contain more information about the adjustments and the reconciliation of these to IFRS equivalents.SEG

106、RO discloses EPRA alternative metrics on pages 193-198.2 Proportionally consolidated figures and metrics:SEGRO owns assets both wholly itself and through stakes in 50-50 joint ventures.In the Financial Statements,the profit from joint ventures is stated as a single figure in the Income Statement and

107、 the net asset value of joint ventures is stated as a single equity figure on the Balance Sheet;Note 7 to the Financial Statements provides the component parts of these figures.In operational terms,SEGRO does not distinguish between assets held in joint ventures from those assets which are wholly-ow

108、ned.Therefore,unless specifically stated,in the Strategic Report,performance metrics and financial figures are stated reflecting SEGROs wholly-owned assets and its share of joint venture assets(known commonly as a“proportionally consolidated”basis).Where the Strategic Report refers to the area of a

109、property,it is stated at 100 per cent of the space,irrespective of whether the property iswholly-owned or held in a joint venture.13OVERVIEWSTRATEGIC REPORTGOVERNANCEFINANCIAL STATEMENTSCHIEF EXECUTIVES STATEMENTIndustrial asset values remain supported by continued demand from investors wanting to i

110、ncrease their exposure to industrial and warehouse properties.As a result we have seen further improvements in valuation yields in the Continental European portfolio,whilst yields in the UK have held steady at their historically low levels.OUR PORTFOLIOOur portfolio of modern warehouses,with an over

111、weight position in urban markets,continues to produce good operational results thanks to our active approach to asset management and the strong fundamentals.The vacancy remains low,retention high and lease lengths continue to increase as customers invest more in automation and fit-out and seek to se

112、cure space close to urban centres for the longer term.We added to our portfolio in 2019 with targeted acquisitions of completed assets as well as continuing to invest in land to provide future development opportunities.Particularly pleasing were some of the off-market transactions in urban markets s

113、uch as London and Paris,which were only possible thanks to the expertise of our local teams as well as our strong customer relationships.2019 was another record period of development completions with 871,800 sq m of new space for a diverse range of occupiers across our markets.This elevated level of

114、 development allows us to constantly upgrade our portfolio and all new developments of 5,000 sq m or more are designed to achieve BREEAM Very Good or Excellent.We continue to focus on the environmental sustainability of our assets and are now working towards our SEGRO 2025 targets.These are focused

115、on reducing the embodied carbon within our developments and using the latest technology to help our customers to reduce energy consumption in our standing assets.Our development pipeline is an important source of growth and we have 826,200 sq m of new space under construction,capable of generating 5

116、0 million of new rent,of which 60 per cent has been secured through pre-lets.We continue to take a disciplined approach to capital allocation and regularly review our portfolio,taking opportunities to dispose of assets where we feel we have maximised our potential returns.OUR STAKEHOLDERSWe are both

117、 a developer and a long-term owner of industrial assets which provides us with a unique opportunity.Land zoned for industrial use is crucial to the proper functioning of cities and we work closely with local authorities to help ensure the right space is retained to support cities needs.In our urban

118、markets this usually involves the regeneration of neglected industrial sites,replacing old or disused facilities with modern warehouse space with high sustainability credentials which attracts new businesses to the area and creates employment opportunities.Once our warehouses are completed,we attemp

119、t to connect our customers that choose to locate their business inside them with the surrounding communities,helping them to source employees locally and also assisting with upskilling and training through regional programmes such as Aspire on the Slough Trading Estate.We stay close to businesses th

120、roughout their time as a SEGRO customer thanks to the internal management of our portfolio.Our asset management and property teams interact regularly with our customers,helping us to understand the opportunities and challenges that their businesses face and to anticipate their needs.88 per cent of o

121、ur customers rate their overall satisfaction as an occupier of a SEGRO warehouse as excellent or very good.Strong relationships with our customers also create opportunities,evidenced by the fact that over half of our current development pipeline is with existing customers.We aim to be a trusted part

122、ner to all of our stakeholders and it is through these connections that we enable extraordinary things to happen within,and around,the spaces that we create.DELIVERING INCREASING DIVIDENDS20.7 pence14.9p201515.7p201616.6p201718.8p201820.7p2019POSITIONING OUR MODERN,SUSTAINABLE PORTFOLIO FOR LONG-TER

123、M SUCCESSCONTINUED14SEGRO PLC|ANNUAL REPORT&ACCOUNTS 20191.London39%2.Thames Valley17%3.Germany11%4.France 10%5.National Logistics9%6.Poland5%7.Rest of Europe9%Total100%HIGH QUALITY EUROPEAN PORTFOLIO BY VALUE(SEGRO SHARE)2345671OUR PEOPLEAlthough real estate is a physical asset class,the business o

124、f developing and managing it requires human interaction and our longer-term success is therefore dependent on the expertise,commitment and motivation of our workforce.It is our employees who manage our relationships on a day-to-day basis and it is therefore crucial that we attract and retain talente

125、d people.Over 300 people now work in our 14 offices across Europe.We have a strong company culture and a Purpose and Values that are shared and aspired to across all geographies.To enable the sharing of ideas and best practices we have created cross-border working groups and we encourage employees t

126、o visit other regions and deepen their understanding of the different parts of our business.Our Space to Grow programme offers our employees the opportunity to undertake a broad range of training and,as the use of technology advances within our sector,we will expand the scope of this training to ens

127、ure that it continues to provide our workforce with the skills that they need to thrive in,and develop,their roles.Successful businesses are diverse and inclusive and we promote this throughout our workplace,enabling our employees to bring their whole selves to work.We have robust policies in place

128、that help us to support our belief that everyone deserves the right to be treated equally.I would like to take this opportunity to thank all of our employees for their continued dedication and commitment to our business and for their contributions to the success of SEGRO in 2019.OUTLOOKThe momentum

129、that we have seen across our markets during the final months of the year means that we have started 2020 with confidence.We are proud owners of one of the highest quality logistics and industrial portfolios in Europe and we are well positioned to benefit from the structural drivers that are currentl

130、y at play in our sector.We expect to see further rental growth across our geographies,with an increasing contribution from Continental Europe,and the potential for further upside in the UK as our future relationship with the European Union becomes clearer.Our development pipeline for 2020 is very he

131、althy,allowing us to both modernise our portfolio and generate additional rental income,compounded by the rental growth from the active asset management of our existing estate.Whilst the trends of e-commerce and urbanisation continue to drive occupier demand we expect to be able to develop at this e

132、levated level,de-risking the majority of it by pre-letting.Looking beyond the immediate future,we recognise that the society in which we operate continues to face unprecedented levels of change as technological advances continue to impact our customers and wider society.In order to position our busi

133、ness to embrace this,we announced in January the creation of a new Strategy,Investment and Innovation team.This will ensure that we are able to navigate and benefit from these structural changes and will help us to become more agile in supporting the evolving needs of our customers and other stakeho

134、lders.Our core strategy and pure focus on warehouse and industrial property will remain unchanged,but by keeping one eye on the horizon we expect to be able to position SEGRO for sustainable,long-term success.FOR MORE INFORMATION ONOUR PEOPLE SEE PAGES46-49Our high-quality,well-located portfolio of

135、urban and big box warehouses continues to attract a broad range of customers.”DAVID SLEATHCHIEF EXECUTIVE15OVERVIEWSTRATEGIC REPORTGOVERNANCEFINANCIAL STATEMENTSMARKET OVERVIEWThe performance of real estate,like all asset classes,is driven by the interplay of demand and supply:investor demand for pr

136、operty assets and occupier demand for space,with performance dependent on the supply of properties to buy or lease to satisfy that demand.A LOOK AT OUR MARKET DRIVERSREAL ESTATE AS AN INVESTMENT ASSET If investor demand increases,in the absence of additional supply,the value of real estate will rise

137、;if demand wanes or supply increases,the value will fall.Real estate pricing is commonly expressed as a yield which is the rent payable for a building as a percentage of its value.Assuming rents remain static,as the value of real estate rises,its yield falls(often referred to as yield compression)an

138、d vice versa.REAL ESTATE AS AN OPERATING NECESSITY As occupier demand increases,in the absence of additional supply,overall lease terms will become more expensive for the occupier,including(but not exclusively)an increase in rents.If demand for space falls,or supply increases ahead of occupier deman

139、d,overall lease terms,including rent,will become cheaper.It is for this reason that the property market is typically considered cyclical:as investor or occupier demand increases,the returns from real estate improve and the supply of assets or space tends to increase to meet that demand.If supply inc

140、reases too much,or demand starts to fall,supply can exceed demand and asset values and rents will fall until such time as demand matches or exceeds supply,at which point the cycle turns.STRUCTURAL VERSUS CYCLICAL DRIVERS More recently there have also been structural drivers at play in our sector.The

141、se are major shifts in the way that an industry or market functions and result in longer-term or even permanent change.They are normally triggered by innovation and act independently of the business cycle so can either counter cyclical forces or amplify them.We believe that there are six main market

142、 factors which influence the performance of our portfolio.Three of these can be defined as cyclical:stable economic growth,an attractive yield profile and limited supply of modern warehousing.The remaining three can be described as structural:urbanisation,changes in consumer behaviour and a need for

143、 efficient and sustainable buildings.For definitions of terms used in this Report,please refer to the Glossary on page 202.16SEGRO PLC|ANNUAL REPORT&ACCOUNTS 2019COMMENTARY:Economic growth is an important driver of demand for space by occupiers,and our customer base spans most business sectors.A sup

144、portive economic environment encourages businesses to grow and require additional space in which to operate.We expect the economies of all our markets to grow,albeit at a slightly slower pace than in previous years.WHAT IT MEANS FOR SEGRO:A supportive economic environment is crucial for our customer

145、s and likely to increase demand for additional warehouse space.Healthy occupier demand for newly developed pre-let and speculative space.We see some potential upside for UK occupier demand as our future relationship with the European Union becomes clearer.STABLE ECONOMIC OUTLOOK GDP GROWTH FORECAST

146、FOR OUR MAJOR MARKETS(P.A.,20192021)(%)3.4Poland1.2France1.1UK0.7Germany0.4ItalySource:CBRE,Bloomberg(at 31 December 2019)Source:OECD(data correct as of 27 January 2019)PRIME YIELDS IN ALL OUR MARKETS ARE COMFORTABLY ABOVE RISK-FREE RATES(%)COMMENTARY:Monetary policy across Europe and globally means

147、 that we are operating in a very low interest rate environment:10 year UK gilts at 31 December 2019 yielded 0.8 per cent and German bunds yielded-0.2 per cent.Prime industrial real estate yields in the UK and Continental Europe are between 3 and 6 percentage points higher than their respective risk-

148、free benchmarks,making industrial real estate attractive on a relative basis.WHAT IT MEANS FOR SEGRO:The attractive relative yield profile of warehouse properties is enhanced by our experience and expectations of improving rental values.Our portfolio increased in value by 7.5 per cent in 2019,reflec

149、ting improving rental values,particularly in urban warehousing,and continued yield compression in Continental Europe.Greater competition for standing assets from investors has increased their prices meaning that the returns available to us from developing our own assets are usually higher than from

150、acquiring existing assets.ATTRACTIVE YIELD PROFILE IN A LOW INTEREST RATE ENVIRONMENT5.9Poland4.5France4.0UK3.6Germany0.80.2UK risk-freeGermanyrisk-freeCYCLICALBIG BOX WAREHOUSE VACANCY RATES (31 DECEMBER 2019)(%)Source:JLL(estimated rates at Q419)COMMENTARY:The relatively short construction time fo

151、r warehousing means that rising demand can sometimes be quickly met by an increase in supply.However,developers are currently taking a disciplined approach and,particularly in urban areas,tight planning laws and competing uses are restricting the availability of land.Therefore,although warehouse dev

152、elopment is increasing,it is consistent with levels of occupier demand and many buildings under construction are already committed(pre-let)to occupiers.As a result,vacancy rates remain low in both absolute terms and compared to historic levels.There has been a moderate increase in speculative develo

153、pment in the UK Midlands big box market which is manifested in a higher vacancy rate,but much of this is outside our core markets and is consistent with the level of occupier demand for modern warehouses.WHAT IT MEANS FOR SEGRO:The shortage of quality urban warehouses and healthy occupier demand has

154、 caused rental values to rise.Continued investment into development on a substantially pre-let basis,utilising our well-located land bank to satisfy our customers need for modern warehouse space in key European cities and transport corridors.LIMITED SUPPLY OF MODERN WAREHOUSING11.0UK Midlands5.9Wars

155、aw3.6Frankfurt5.6Paris4.03.63.22.0LondonPragueBarcelonaMilan17OVERVIEWSTRATEGIC REPORTGOVERNANCEFINANCIAL STATEMENTSMARKET OVERVIEWA LOOK AT OUR MARKET DRIVERSCONTINUEDCOMMENTARY:Land zoned for industrial use in and around major conurbations is important to cater for occupiers who need to be close t

156、o population centres either for efficient last mile delivery or for an accessible labour source.However,the stock of industrial land is being eroded in our major urban markets by other,higher value uses,most commonly residential.As a result,the potential supply response is restricted and,since deman

157、d remains strong,overall leasing terms are improving.WHAT IT MEANS FOR SEGRO:In London,rental values for our urban warehouses increased by 3.3 per cent reflecting the shortage of new supply relative to levels of demand and we expect continued rental growth in 2020.The shortage of land supply in urba

158、n areas is leading property developers to consider ways to use land more intensively,including multi-level warehouses.URBANISATION COMMENTARY:With greater awareness of the impact of buildings on the environment and finite natural resources,occupiers demand high levels of environmental sustainability

159、 to minimise their environmental footprint and to reduce overall occupancy costs,particularly from heating and other utilities.It is important that landlords and developers own and create buildings which are sustainable in the long term and use those natural resources efficiently.WHAT IT MEANS FOR S

160、EGRO:All of our developments are designed to meet the environmental targets set out in our SEGRO 2025 strategy(see page 53 for more details).A buildings sustainability is an important factor in our investment decisions,not only for potential acquisitions but also in deciding whether to refurbish or

161、dispose of the very few existing properties which fall short of environmental standards.94 per cent of the eligible development completions in 2019 were rated BREEAM“Very Good”or“Excellent”(or equivalent)and we now have a total of over 2.7 million sq m of sustainably certified assets in our portfoli

162、o.NEED FOR EFFICIENT,SUSTAINABLE BUILDINGSFORECAST ECOMMERCE PENETRATION RATES (%)Source:COMMENTARY:Structural changes in the nature of retailing towards e-commerce and convenience shopping,combined with increasing urbanisation of European populations,are forcing retailers to reassess how they sell

163、and distribute their goods.Supply chains must be able to handle both bulk delivery of goods to larger stores,individual deliveries to homes,offices,click-and-collect locations and high street convenience stores and customer returns.Margin pressure means that retailers,third party logistics providers

164、 and parcel delivery companies are increasingly focused on extracting efficiencies from their supply chain,using modern premises in key transport corridors,logistics hubs or locations close to major conurbations.WHAT IT MEANS FOR SEGRO:Strong occupier demand for our urban warehouses located on the e

165、dge of major European cities to cater for last mile delivery to multiple destinations,often houses and offices.Almost 70 per cent of lettings in 2019 were from retailers,parcel delivery and third party logistics companies.See also factors under Stable economic outlook.STRUCTURAL CHANGES IN CONSUMER

166、BEHAVIOUR30%20%10%UKFranceGermany02017201820192020F2021F2022FSTRUCTURAL18SEGRO PLC|ANNUAL REPORT&ACCOUNTS 2019 1970sINTERNATIONAL EXPANSIONIn the 1970s the Company continued to diversify its business across international markets with acquisitions in France in 1972 and Germany in 1974.Today France an

167、d Germany are two of its most important countries with portfolios valued at 1.4 billion and 1.7 billion respectively.FOR MORE INFORMATION,PLEASE VISIT:WWW.SEGRO.COM/ABOUT-US/2020HOW ARE WE RESPONDING?FOR MORE INFORMATION SEEPAGES 20-33 1.STRONG CUSTOMER FOCUS AND ACTIVE ASSET MANAGEMENT Maximising c

168、ustomer retention,portfolio occupancy,rental growth and asset sustainability through strong customer service and asset maintenance andrefurbishment.2.SUBSTANTIAL DEVELOPMENT PROGRAMME To take advantage of growing occupier demand and limited supply of modern,sustainable warehousing,particularly in ur

169、ban locations.3.LAND ACQUISITIONS Have mainly been focused on sites for immediate development with a limited number of strategic sites,which can generally be developed on a phased basis over a three to five year time frame.Longer-term sites secured through option agreements.4.ASSET RECYCLING Taking

170、advantage of strong investor demand toimprove our portfolio quality:selling assets torelease funds for investment in our developmentprogramme,reducing debt andselective asset acquisitions.5.STRENGTHENED AND IMPROVED CAPITAL STRUCTURE During the year,we issued 451 million of new equity to fund our de

171、velopment-led growth.Our look-through loan-to-value ratio remains low at 24 per cent and we have 1.4 billion of cash and available facilities at our disposal.OUR GOALDISCIPLINED CAPITAL ALLOCATIONOPERATIONAL EXCELLENCEEFFICIENT CAPITAL AND CORPORATE STRUCTURE19OVERVIEWSTRATEGIC REPORTGOVERNANCEFINAN

172、CIAL STATEMENTSOUR BUSINESS MODELHOW WE CREATE VALUEWe aim to generate attractive financial and social returns for ourshareholders and wider stakeholders byinvesting in high quality,sustainable buildingsin prime locations.WE APPLY OUR STRATEGY TO MAXIMISE PERFORMANCE:41231.OUR GOAL2.DISCIPLINED CAPI

173、TAL ALLOCATION3.OPERATIONAL EXCELLENCE4.EFFICIENT CAPITAL AND CORPORATE STRUCTUREREAD MORE ABOUT HOW WE ARE DELIVERING ON OUR STRATEGY:OUR STRATEGY PAGES 22-33KPIs PAGES 40-41PRINCIPAL RISKS PAGES 65-72LANDASSETSPEOPLEPARTNERSCAPITALWe buy sufficient land to fuel our development pipelineWe buy and b

174、uild warehouse properties located on the edge of major cities,key transport corridors and hubsWe employ 332 people with expert skills across all aspects of real estateWe work with local authorities and other organisations whose aims complement our ownWe forge strong relationships with our shareholde

175、rs as well as our banks and bondholders who provide equity funding and debtFINANCIALNON-FINANCIALRENT ROLL GROWTHADJUSTED PROFIT BEFORE TAXTOTAL PROPERTYRETURN EPRA NAV GROWTHQUALITY SUSTAINABLE BUILDINGSCREATING BETTER COMMUNITIESA COMPANY WHERE PEOPLE WANT TO WORK OR DO BUSINESSSEE FULL KPIs PAGES

176、 40-41SEE PAGES 42-64SEE PAGES 28-29SEE PAGES 24-25SEE PAGES 46-49SEE PAGES 62-64SEE PAGES 34-39We will buy assets and land where we believe our skills can add valueWe sell assets where we believe the returns are less attractive than can be achieved from other usesWe actively manage our portfolio th

177、rough leasing space and servicing our customers and through developmentTHE RESOURCES WE NEEDWHAT WE DOTHE VALUE WE CREATEBUYSMARTADDVALUESELLWELL20SEGRO PLC|ANNUAL REPORT&ACCOUNTS 2019RENTAL INCOMELESS OPERATING COSTSLESS FINANCIAL COSTSLESS TAXPROFITThe largest source of our revenuePrimarily essent

178、ial employee costsPrimarily the interest payments on our debtAs a UK REIT,and SIIC in France,SEGRO only pays corporate tax on operating profits outside these countriesSHAREHOLDER DIVIDENDSREINVESTED IN THE BUSINESSBUY SMARTPEOPLELANDASSETSOur investment teams source and negotiate attractive acquisit

179、ion opportunitiesWe invested 147 million in development land during the year.We utilised 166 million of land in new development projects and sold 9 million tothird partiesWe acquired a number of urban warehouses assets in Paris and WarsawCAPITALWe fund our investment activities acquisitions and deve

180、lopment using a combination of equity,debt and the proceeds of disposals.ADDVALUEPEOPLEDEVELOPMENTMANAGEMENTPARTNERSOur teams in each market manage the relationships with existing customers,seek new customers and plan and execute our development programmeDevelopment is a significant means of adding

181、value to our business.In 2019,we completed 871,800 sq m of new space,the largest volume in the Companys historyActive management of our assets ensure thatwe generate attractive rental growth froma high quality portfolio and excellent customer serviceOur SELP joint venture allows us to realiseeconomi

182、es of scale in Continental European big box warehouses in a capital-efficient mannerCAPITALA significant proportion of our capital is invested in development,but is also invested in maintenance and refurbishment of existing properties to ensure they are well occupied and in good conditionSELLWELLPEO

183、PLEOur investment professionals assess returns from every asset compared to other investments,identifying potential candidates for disposalCAPITALSALESAsset recycling maintains high levels of performance in the property portfolio,as well as being an important generator of capital for future investme

184、ntWe will sell assets to crystallise value gains and to provide funding for identified investment opportunities.During 2019,we sold 442 million of assets and landWHAT WE DO IN MORE DETAILBIG BOX WAREHOUSESURBAN WAREHOUSES21OVERVIEWSTRATEGIC REPORTGOVERNANCEFINANCIAL STATEMENTSOUR STRATEGYA STRATEGY

185、TO GENERATE ATTRACTIVE,SUSTAINABLE RETURNSEFFICIENT CAPITAL AND CORPORATE STRUCTUREOUR GOALDISCIPLINED CAPITAL ALLOCATIONOPERATIONAL EXCELLENCEWE APPLY OUR STRATEGY TO MAXIMISE THE RETURNS FROM OUR BUSINESSOUR GOALOur goal is to be the best owner-manager and developer of warehouse properties in Euro

186、pe and a leading income-focused REIT.DISCIPLINED CAPITAL ALLOCATIONPicking the right markets and assets to create the right portfolio shape,actively managing the portfolio composition and adapting our capital deployment according to our assessment of the property cycle.OPERATIONAL EXCELLENCEOptimisi

187、ng performance from the portfolio through dedicated customer service,expert asset management,development and operational efficiency.EFFICIENT CAPITAL AND CORPORATE STRUCTUREWe aim to underpin the property level returns from our portfolio with a lean overhead structure,an efficient capital structure

188、and appropriate financial leverage.FOR MORE INFORMATION ON OUR KPIS SEE PAGES 40-41Our goal is to be the best owner-manager and developer of warehouse properties in Europe and a leading income-focused REIT.Our strategy for achieving our goal is to create a portfolio of high quality big box and urban

189、 warehouses in the strongest markets which generate attractive,low risk,income-led returns with above average rental and capital growth when market conditions are positive,and are resilient in a downturn.We seek to enhance returns through development,while ensuring that the short-term income drag as

190、sociated with holding land does not outweigh the long-term potential benefits.Fundamental to our strategy are three key pillars of activity which should combine to deliver an attractive,income-led total property return:Disciplined Capital AllocationOperational ExcellenceEfficient Capital and Corpora

191、te Structure.The combination of these elements should translate into sustainable,attractive returns for our shareholders in the form of progressive dividends and net asset value growth over time.Embedded in this strategy is the long-term approach that we take to running our business.This requires:an

192、 understanding and assessment of the risks facing the business and the actions we can take to mitigate those risks.More information can be found in the Principal Risks section(page 65);andengagement with our key stakeholders to understand their priorities,and our impact on the environment.These are

193、covered in the Responsible SEGRO section(page 42).Our portfolio comprises modern big box and urban warehouses which are well specified and located,with good sustainability credentials,and which should benefit from a low structural void rate and relatively low-intensity asset management requirements.

194、Our assets are concentrated in the strongest European submarkets which display attractive property market characteristics,including good growth prospects,limited supply availability and where we already have critical mass,or believe we will be able to achieve it in a reasonable timeframe.22SEGRO PLC

195、|ANNUAL REPORT&ACCOUNTS 2019 2019SEGRO BECOMES UKS LARGEST LISTED PROPERTY COMPANYIn 2018,SEGRO became the UKs largest listed property company by market capitalisation.At 31 December 2019,SEGRO was worth 9.8 billion and had 12.2 billion of assets under management covering 7.8 million sq m of space.F

196、OR MORE INFORMATION,PLEASE VISIT:WWW.SEGRO.COM/ABOUT-US/2020 OUR PEOPLE OUR COMMUNITYHEALTH&SAFETYOUR STAKEHOLDERS OUR ENVIRONMENTWHERE ELSE YOU CAN READ ABOUT STAKEHOLDER ENGAGEMENT AND OUR APPROACH TO S172EMPLOYEESCHIEF EXECUTIVES STATEMENT PAGE 15RESPONSIBLE SEGRO PAGES 46-49GOVERNANCE PAGE 81CUS

197、TOMERSRESPONSIBLE SEGRO PAGE 62GOVERNANCE PAGE 80SUPPLIERSRESPONSIBLE SEGRO PAGE 62INVESTORSHOW WE CREATE VALUE PAGES 18-19RESPONSIBLE SEGRO PAGE 63GOVERNANCE PAGE 80ENVIRONMENT RESPONSIBLE SEGRO PAGES 53-61HIGH STANDARDS OF CONDUCTHEALTH AND SAFETY PAGES 4345 BUSINESS ETHICS AND MODERN SLAVERY PAGE

198、S 48-49COMMUNITYRESPONSIBLE SEGRO PAGES 50-52LONG TERMOUR STRATEGY PAGE 22DISCIPLINED CAPITAL ALLOCATION PAGES 24-25EFFICIENT CAPITAL STRUCTURE PAGES 34-39RISK MANAGEMENT PAGES 6572VIABILITY STATEMENT PAGE 69 GOVERNANCE,STRATEGY DAY,PAGES 81,83OUR RESPONSIBLE SEGRO FRAMEWORK HELPS GUIDE OUR BUSINESS

199、 DECISIONS:READ MORE ABOUT HOW WE ARE COMMITTED TO SUSTAINABILITY ON PAGES 42-64COMPANIES ACT 2006 SECTION 172 STATEMENT(S172)Each of the Directors is mindful of their duties under s172 to run the Company for the benefit of its shareholders,and in doing so,to take into account the long term impact o

200、f any decisions on stakeholder relationships and the impact of its activities on its reputation for high standards of business conduct.The Company cannot operate in a vacuum.We can only succeed if we conduct ourselves in a responsible manner and have positive relationships with all of our stakeholde

201、rs.Although we have been considering the matters set out in s172 for many years,and reporting our activities within our Responsible SEGRO framework,the 2018 UK Corporate Governance Code now requires us to provide more specific information about how the Group and the Directors have considered the mat

202、ters set out in s172.See page 80 for more information about the Code and the work of the Board around s172.Identifying the relevant the issues and stakeholders:The Directors have defined the Companys key stakeholder as its:employees;customers;investors;communities;and suppliers.Building positive rel

203、ations with these stakeholders,treating them well and with respect is essential to the success of the business.Underpinning these stakeholder relationships is a culture which promotes high standards of business ethics,is focused on a long term sustainable strategy and which recognises our responsibi

204、lity to the environment.Engagement mechanisms:There are many engagement mechanisms with these stakeholders within the business as well as at Board level and there is more detail about how we engage with our employees,customers,investors,suppliers and local communities in the Responsible SEGRO sectio

205、n of this report on pages 42 to 64,which also highlights our environmental strategy and targets.Effect on decisions:Set out below are some examples of how the Directors have considered s172 in their decision making.The Companys move to a new London head office.Noting the feedback from the 2018 Emplo

206、yee Engagement survey regarding the quality of our former London office,the Board reviewed a move to new,more modern premises.This included the re-location of 51 employees who had previously worked in our Slough office.When the Board considered the office move it took account of the impact for emplo

207、yees,along with the proposed changes to working practices and the financial assistance the employees re-locating from Slough would receive to help them to adjust to the new location.Shortly after the move,the Directors had lunch with the employees in the new London office in December to see how they

208、 were settling into the new environment.Major new investment in a site at Coventry.Discussions about the major new investment in a 450 acre site adjacent to Coventry Airport,focussed around sustainable returns for investors,job creation for the local communities,the creation of new facilities for cu

209、stomers but also the risks and costs associated with remediation of a large and complex site.Having taken account of these factors,the Directors approved the investment in the site.Future trends and technologies.The Board had a presentation about PropTech and the broad trends and technologies which

210、may become disruptors to the Company and its customers in the future.The Directors also took part in some sessions with groups of employees who had researched some futures topics such as artificial intelligence and asset tokenisation.These briefings gave the Directors a wider perspective about the f

211、uture trends and helped them in their discussions with customers and when making investment discussions.23OVERVIEWSTRATEGIC REPORTGOVERNANCEFINANCIAL STATEMENTSWHAT WE SAID WE WOULD DOWe expected demand for warehouse assets to remain strong and said that we would continue to sell non-core assets to

212、release funds for other opportunities offering a better risk-return profile.We intended to continue the focus of our investment activity on development,taking advantage of opportunities to acquire income-producing assets offering attractive risk-adjusted returns if they arose.WHAT WE ACHIEVED IN 201

213、9Net investment during the year was 250 million.We focused the majority of our investment on our development pipeline and land acquisitions but also made some asset purchases in key strategic markets(including in London).We sold a portfolio of stand-alone big box assets in the UK as well as smaller

214、assets in Poland and the Netherlands.WHAT TO EXPECT IN 2020We will continue our disciplined approach to capital allocation,focusing the majority of our investment into development.ACQUISITIONS OF LAND AND ASSETS283.5m2018:221mDISPOSALS OF LAND AND ASSETS442.4m2018:442mINVESTMENT IN DEVELOPMENT408.7m

215、2018:548mPORTFOLIO VALUATION CHANGE+7.5%2018:+10.7%ASSET RECYCLING TO IMPROVE PORTFOLIOFOCUSDuring 2019,we sold 442 million of land and assets,taking advantage of strong investor demand to realise profits and release capital to reinvest in our business.The largest component of these disposals was 25

216、9 million of UK stand-alone big box warehouses.Going forwards,our UK big box focus will be on developing logistics parks rather than stand-alone buildings.Other disposals included the sale of a building at SLPEMG to its occupier and we also sold our holdings in Gdansk,a smaller regional market that

217、we have decided to exit in order to focus on other parts of Poland.As in previous years,we sold a portfolio of Continental European big box warehouses developed by SEGRO to SELP for which we received 113 million net proceeds from an effective sale of a 50 per cent interest.The consideration for the

218、asset disposals was 433 million,reflecting a blended topped-up initial yield of 3.9 per cent.The disposals generated a modest gain on sale compared to book values at 31 December 2018.Additionally,we disposed of 9 million of land,primarily comprising plots in non-core markets.DISPOSALS:WHAT TO EXPECT

219、 IN 2020While investor demand for industrial properties remains strong,we expect to continue to recycle assets where we believe we can generate better returns from deploying our capital in other opportunities A typical run rate would be 150-250 million per year.We invested 692 million in our portfol

220、io during the year:acquisitions of 136 million of assets,147 million of land and development capital expenditure of 409 million.This was partly offset by 442 million of disposals.ACQUISITIONS FOCUSED ON BUILDING SCALE IN URBAN WAREHOUSING2019 was a relatively quiet year for asset acquisitions as we

221、continued to focus investment on our development pipeline,including many further land purchases.We did however complete a small number of transactions in key strategic markets.95 million of the acquisitions were urban warehouses in the UK,France and Italy.In London we made two off-market acquisition

222、s;a warehouse in East London that complements our existing portfolio,and a further acquisition in South London,establishing a presence in the area for the first time.In France we purchased two properties in the supply-constrained market of Lyon.Finally,in Italy we acquired a warehouse on the outskir

223、ts of Verona,to be used by a global online retailer for their last mile distribution.The remaining acquisitions included big box warehouses in Barcelona,where we are working to achieve scale,and also in Lille and Wrocaw,two markets where we have identified strong occupier demand for logistics.The co

224、nsideration for the asset acquisitions was 136 million,reflecting a blended topped-up initial yield of 4.7 per cent.ACQUISITIONS:WHAT TO EXPECT IN 2020We will continue to look for acquisitions of income-producing assets in line with our strategy and which offer attractive risk-adjusted returns.Howev

225、er,the majority of our investment is likely to remain focused on development.OUR STRATEGYDISCIPLINED CAPITAL ALLOCATION24SEGRO PLC|ANNUAL REPORT&ACCOUNTS 2019ACQUISITIONS COMPLETED IN 2019Asset TypePurchase price (m,SEGRO share)Net initial yield(%)Topped-up net initial yield(%)Big box logistics40.85

226、.46.1Urban warehousing95.64.04.0Land2147.1Acquisitions completed in 20193283.54.424.711 Yield excludes land transactions.2 Land acquisitions are discussed in Future Development Pipeline.3 A reconciliation of acquisitions completed to the Financial Statements is provided in Table 8 of the supplementa

227、ry notes.DISPOSALS COMPLETED IN 2019Asset TypeDisposal proceeds (m,SEGRO share)Net initial yield(%)Topped-up net initial yield(%)Big box logistics427.23.83.8Urban warehousing6.310.810.8Land8.9Disposals completed in 20192442.43.913.911 Yield excludes land transactions.2 A reconciliation of disposals

228、completed to the Financial Statements is provided in Table 8 of the supplementary notes.VALUATION GAINS FROM ASSET MANAGEMENT,DEVELOPMENT,AND MARKET-DRIVEN YIELD IMPROVEMENTWarehouse property values across Europe increased throughout the year,with Continental Europe outperforming the UK.Investment v

229、olumes across Europe continued to be healthy,at similar levels to 2018.Both investor and occupier demand for the asset class remained strong.The Groups property portfolio was valued at 10.3 billion at 31 December 2019(12.2 billion of assets under management).The portfolio valuation,including complet

230、ed assets,land and buildings under construction,increased by 7.5 per cent on a like-for-like basis(adjusting for capital expenditure and asset recycling during the year)compared to 10.7 per cent in 2018.This primarily comprises a 5.8 per cent increase in the assets held throughout the year(2018:10.1

231、 per cent),driven by a 2.7 per cent increase in our valuers estimate of the market rental value of our portfolio(ERV)and in Continental Europe this was complemented by approximately 50 basis points of yield compression.In total,our portfolio generated a total property return of 10.5 per cent(2018:15

232、.4 per cent).Assets held throughout the year in the UK increased in value by 2.5 per cent(2018:12.0 per cent),outperforming the MSCI Real Estate UK All Industrial 2019 index which increased by 2.4 per cent.The performance was mostly due to the capture of reversionary potential in lease reviews and r

233、enewals,particularly in London.The true equivalent yield applied to our UK portfolio was 4.6 per cent,20 basis points lower than at 31 December 2018(4.8per cent)reflecting the impact of newly completed developments and the disposal of some higher yielding assets rather than a movement in market yiel

234、ds.Rental values improved by 2.6 per cent(2018:4.7 per cent).Assets held throughout the year in Continental Europe increased in value by 13.5 per cent(2018:5.1 per cent)on a constant currency basis,reflecting a combination of yield compression to 5.2 per cent(31 December 2018:5.9 per cent)and rental

235、 value growth of 3.0 per cent(2018:0.7 per cent).More details of our property portfolio can be found in Note 27 to the Financial Statements and in the 2019 Property Analysis Report available at TO EXPECT IN 2020Capital growth forecasts are notoriously difficult given the multitude of drivers(particu

236、larly interest rates and credit spreads)most of which are outside our direct control.Nevertheless,the prospects for our portfolio of big box and urban warehouses remain strong,supported by structural drivers of demand and relatively limited amounts of new speculative supply.This means that we are op

237、timistic about the potential for further rental value growth,particularly in our urban warehouse portfolio.Prime yields continue to appear attractive compared to government(risk-free)bond yields or most other property types,and this premium should be supportive for valuations.We believe that our hig

238、h quality portfolio and our focus on asset management will enable us to outperform the wider market.UNREALISED GAINS AND LOSSES ON WHOLE PORTFOLIO+4.5%+5.9%+14.5%+14.8%+9.6%+7.5%Greater LondonThames Valley National LogisticsNorthern EuropeSouthern EuropeCentral EuropeTotalCapital growthUnrealisedgai

239、ns750m500m250m+4.0%1 See Table 3 in the Supplementary Notes for further detail on the calculation 201 1OUR NEW STRATEGYIn November 2011 we launched our new strategy,focusing on disciplined capital allocation and operational excellence and aiming to transform our business with the goal of being the b

240、est owner-manager and developer of industrial property in Europe.Since then we have disposed of over 4.4bn of assets and acquired 2.1bn as we repositioned our portfolio,selling out of non-core assets and reinvesting in prime industrial warehouses in key strategic markets.FOR MORE INFORMATION,PLEASE

241、VISIT:WWW.SEGRO.COM/ABOUT-US/202025OVERVIEWSTRATEGIC REPORTGOVERNANCEFINANCIAL STATEMENTSThere was an increase in the amount of speculative development of UK big box warehouses during 2019 but it appears that this space is be being absorbed with take-up levels above the long-term average.Our recent

242、letting activity at SLPEMG and also at our new logistics park close to Kettering,shows that there is still good demand from occupiers to sign pre-lets for modern,sustainable warehouses in prime locations.On the Continent we have seen stronger rental growth in 2019 as the impact of e-commerce began t

243、o be felt.Overall we believe the prospects for significant rental growth in big box warehouses are,and have always been,limited but this asset class brings other benefits including lower asset management intensity and long leases which help to ensure a sustainable level of income.We do not see evide

244、nce of oversupply in any of the markets in which we operate.CUSTOMER RELATIONSHIPS KEY TO OUR CONTINUED SUCCESSAs long-term owners of warehouses,and given that we manage the majority of our portfolio internally,we seek to develop strong customer relationships.Part of the role of our asset managers i

245、s to build a knowledge of the businesses that occupy our space.By understanding their evolving needs and requirements,we can not only help them to change and grow,but it also means that we can predict coming trends and innovate accordingly.Almost 60 per cent of our headline rent comes from customers

246、 with whom we have multiple leases and over half of the potential rent from our current development pipeline has been secured by a pre-let with an existing customer.WHAT WE SAID WE WOULD DOWe expected occupier demand to remain strong,which,combined with our strong customer focus,should enable us to

247、keep retention high,driving positive rent roll growth and keeping vacancy rates low.WHAT WE ACHIEVED IN 2019Our rent roll growth hit another record high at 54.5 million reflecting a high level of customer retention and a particularly strong performance in rent reviews and renewals.The vacancy rate r

248、emained low,aided by a strong performance in leasing recently completed speculative development and also by disposals.WHAT TO EXPECT IN 2020We are anticipating strong occupier demand in all of our markets and expect vacancy rates to remain low.The limited supply in most of our markets,particularly u

249、rban warehousing,means that we expect retention to remain high with further rental growth.PORTFOLIO PASSING RENT378m2018:350mRENT CONTRACTED DURING THE YEAR65.8m2018:66.4mCUSTOMER RETENTION88%2018:89%VACANCY RATE4.0%2018:5.2%Our portfolio comprises two main asset types:urban warehouses and big box w

250、arehouses.The demand-supply dynamics in both asset classes continue to be positive,and vary by both type and geography.URBAN WAREHOUSESUrban warehouses account for 67 per cent of our portfolio value.They tend to be smaller warehouses,and are located mainly in and on the edges of major cities where l

251、and supply is restricted and there is strong demand for warehouse space,particularly catering for the needs of last mile delivery and,around London,from data centre users.Our urban portfolio is concentrated in London and South-East England(83 per cent)and major cities in Continental Europe(17 per ce

252、nt),including Paris,Dsseldorf,Frankfurt,Berlin and Warsaw.These locations share similar characteristics in terms of limited(and shrinking)supply of industrial land and growing populations,while occupiers are attracted to modern warehouses with plenty of yard space to allow easy and safe vehicle circ

253、ulation.We believe that this enduring occupier demand and limited supply bodes well for future rental growth.BIG BOX WAREHOUSESBig box warehouses account for 31 per cent of our portfolio value.They tend to be used for storage,processing and distribution of goods on a regional,national or internation

254、al basis and are,therefore,much larger than urban warehouses.They are focused on the major logistics hubs and corridors in the UK(South-East and Midlands regions),France(the logistics spine linking Lille,Paris,Lyon and Marseille),Germany(Dsseldorf,Berlin,Frankfurt and Hamburg)and Poland(Warsaw,dz,Po

255、znan,and the industrial region of Silesia).30 per cent of our big box warehouses are in the UK and the remaining 70 per cent are in Continental Europe.Occupier demand continues to be healthy across all of our markets but the nature(and typical location)of big box warehouses tends to mean that,over t

256、ime,supply is able to increase more easily to satisfy demand,as there is generally more land available in out of town locations.OUR STRATEGYOPERATIONAL EXCELLENCE:ACTIVE ASSET MANAGEMENT26SEGRO PLC|ANNUAL REPORT&ACCOUNTS 2019GROWING RENTAL INCOME FROM LETTING EXISTING SPACE AND NEW DEVELOPMENTSAt 31

257、 December 2019,our portfolio generated passing rent of 378 million,rising to 426 million once rent free periods expire(“headline rent”).During the year,we contracted 65.8 million of new headline rent,level with our record 2018 performance(66.4 million).New pre-let agreements continue to contribute s

258、trongly to this number but in 2019 we also grew rent on our existing space significantly,helped by successful re-gears at the Heathrow Cargo Centre.Our customer base remains well diversified,reflecting the multitude of uses of warehouse space.Our top 20 customers account for 32per cent of total head

259、line rent,and our largest customer,Deutsche Post DHL,accounts for 4.5 per cent.Approximately half of our customers are involved in businesses affected by e-commerce,including third party logistics and parcel delivery businesses,and retailers.These businesses accounted for almost 70per cent of our ta

260、ke-up during the year.We monitor a number of asset management performance indicators to assess our performance:Rental growth from lease reviews and renewals.These generated an uplift of 17.8 per cent(2018:8.8 per cent)for the portfolio as a whole compared to previous headline rent.During the year,ne

261、w rents agreed at review and renewal were 25.1per cent higher in the UK(2018:12.8 per cent)as reversion accumulated over the past five years was reflected in new rents agreed,adding 8.5 million of headline rent.In Continental Europe,rents agreed on renewal fell by 0.7 per cent(2018:2.2 per cent lowe

262、r),equating to a less than 0.1 million reduction in the rent roll,as market rental growth starts to get closer to the indexation provisions that have accumulated over recent years.High levels of customer satisfaction.Although the quality and location of our portfolio is important to our customers,we

263、 believe that the service we provide is crucial to maintaining high customer retention and low vacancy.We carry out a rolling survey of our customer base throughout the year to identify and rectify issues promptly.In 2019,one third of our customer base responded and 88 per cent of the 367 participan

264、ts in the surveys rated their experience as a SEGRO customer as“good”or“excellent”(2018:80 per cent).Vacancy has remained low.The vacancy at 31 December 2019 was 4.0 per cent(31 December 2018:5.2 per cent).This reduction was due to a combination of a strong performance in letting recently completed

265、speculatively developed space as well as the disposal of two vacant UK big box warehouses.This has helped bring the vacancy rate on our standing stock down to 2.6 per cent(2018:3.4 per cent).The vacancy rate is now at the bottom end of our target range of between 4 and 6 per cent.The average vacancy

266、 rate during the period was also down at 4.6 per cent(2018:5.0 per cent).High retention rate of 88 per cent.During the period,space equating to 11.0 million(2018:12.2 million)of rent was returned to us,including 1.1 million of rent lost due to insolvency(2018:1.1 million).We took back space equating

267、 to 0.3 million of rent for redevelopment.Approximately 58 million of headline rent was at risk from a break or lease expiry during the period of which we retained 86 per cent in existing space,with a further 2 per cent retained but in new premises.Lease terms continue to offer attractive income sec

268、urity.The level of incentives agreed for new leases(excluding those on developments completed in the period)represented 6.6 per cent of the headline rent(2018:5.6 per cent).The portfolios weighted average lease length increased to 7.8 years to first break and 9.2 years to expiry(31 December 2018:7.5

269、 years to first break,8.9 years to expiry).Lease terms are longer in the UK(9.3 years to break)than in Continental Europe(5.4 years to break).14.1 million of net new rent from existing assets.The combination of these strong metrics has enabled us to generate 13.2 million of headline rent from new le

270、ases on existing assets(2018:12.9 million)and 11.9 million from rent reviews,lease renewals and indexation(2018:8.3 million).This was offset by rent from space returned of 11.0 million(2018:12.2 million).Continued strong demand from customers for pre-let agreements.In addition to increased rents fro

271、m existing assets,we contracted 33.2 million of headline rent from pre-let agreements and lettings of speculative developments prior to completion(2018:41.5 million).Included in this are four new data centres on the Slough Trading Estate and a number of big box units around both Milan and Rome(the l

272、argest of which we are developing for a global online retailer).Other noteworthy lettings included our first pre-let at SEGRO Park Kettering,a large unit for an online grocery retailer in East London,further lettings at SLPEMG and our latest development in Wrocaw,Poland.Rent roll growth increased to

273、 54.5million.An important element of achieving our goal of being a leading income-focused REIT is to grow our rent roll,primarily through increasing rent from our existing assets and then from generating new rent through development.Rent roll growth,which reflects net new headline rent from existing

274、 space(adjusted for take-backs of space for development),take-up of developments and pre-lets agreed during the period,increased to 54.5 million in 2019,from 53.5 million in 2018.27OVERVIEWSTRATEGIC REPORTGOVERNANCEFINANCIAL STATEMENTSIn the UK,we have 160,700 sq m of space approved or under constru

275、ction.Within this are two more data centres on the Slough Trading Estate(taking the total number to 29)as well as a number of developments in East London,including a further phase at Rainham and our largest ever pre-let in London at a site close to Purfleet.We are also developing SEGRO Park Hayes in

276、 West London,a new urban warehouse estate close to Enfield in North London and finally two pre-lets in our National Logistics portfolio,one at SLPEMG and the other at SEGRO Park Kettering.In Continental Europe,we have 572,200 sq m of space approved or under construction.This includes pre-let big box

277、 warehouses for a variety of different occupiers,from retailers to manufacturers,across all of our European markets.We are also developing further phases of our successful urban warehouse parks in Frankfurt and Dsseldorf as well as new schemes in Lyon and on the outskirts of Paris.In addition to the

278、 above projects that we are developing ourselves,we also have 93,300 sq m of space under construction as part of forward-funded agreements with local developers.This is proving to be a very effective way to get access to opportunities in competitive markets where accessing land is more difficult.We

279、continue to focus our speculative developments primarily on urban warehouse projects,particularly in the UK,France and Germany,where modern space is in short supply and occupier demand is strong.In the UK,our speculative projects are focused in London and on the Slough Trading Estate.In Continental

280、Europe,we continue to build scale in Germany,where projects are underway in Dsseldorf and Frankfurt,as well as in France,with projects in Lyon and Paris.Within our Continental European development programme,approximately 15 million of potential gross rental income is associated with big box warehous

281、es developed outside our SELP joint venture.Under the terms of the joint venture,SELP has the option,but not the obligation,to acquire these assets shortly after completion.Assuming SELP exercises its option,we would retain a 50 per cent share of the rent after disposal.In 2019,SEGRO sold 226 millio

282、n of completed assets to SELP,representing a net disposal of 113 million.WHAT WE SAID WE WOULD DOWe expected to continue developing at an increased pace during 2019 and anticipated investing over 600 million in development capex and land.WHAT WE ACHIEVED IN 2019Occupier demand has continued to be st

283、rong throughout 2019,reflected in a record 871,800 sq m of development completions,92 per cent of which has been let.During the year,we invested 556 million in our development pipeline,comprising 409 million on development capital expenditure(including 18 million on infrastructure)as well as a furth

284、er 147 million on land acquisitions.One particularly large land transaction that we expected to complete in 2019 carried over into 2020 and completed in January.WHAT TO EXPECT IN 2020We have 826,200 sq m of development projects under way,capable of generating 50 million of new headline rent,of which

285、 60 per cent has been secured.We expect to invest in excess of 600 million in development capex and land,including approximately 50 million of infrastructure expenditure.DEVELOPMENT COMPLETIONS 871,800 sq m2018:673,400 sq mCURRENT PIPELINE POTENTIAL RENT50m2018:46.0mCURRENT PIPELINE YIELD ON COST6.6

286、%2018:7.1%POTENTIAL RENT FROM FUTURE PIPELINE100m2018:115mDuring 2019,we invested 556 million in our development pipeline which comprised 409 million(2018:548 million)in development spend,of which 18 million was for infrastructure,and a further 147 million to replenish our land bank to enable future

287、 development.Since the year end we also completed the acquisition of a further 182 hectares of land that had been expected to complete in 2019.DEVELOPMENT PROJECTS COMPLETED We completed 871,800 sq m of new space during the year,a 30 per cent increase on 2018,which had already been a record year for

288、 SEGRO.These projects were 85 per cent pre-let prior to the start of construction and were 92 per cent let as at 31 December 2019,generating 40.4 million of headline rent,with a potential further 3.5 million to come when the remainder of the space is let.This translates into a yield on total develop

289、ment cost(including land,construction and finance costs)of 7.3per cent when fully let.We completed 785,800 sq m of big box warehouse space,including the first four units at SLPEMG.Other big box completions included pre-lets to occupiers including Amazon,Geodis,Antony Morato,ALDI and Porsche.We compl

290、eted 86,000 sq m of urban warehouses,of which 90 per cent are already let.These included five new data centres on the Slough Trading Estate,a unit for airline caterer DO&CO at Heathrow and further phases of our urban warehouse parks in Berlin and Dsseldorf.We also completed the strategic rail freigh

291、t interchange terminal at SLPEMG and Maritime Intermodal launched their first route from this in early January.CURRENT DEVELOPMENT PIPELINE At 31 December 2019,we had development projects approved,contracted or under construction totalling 826,200 sq m,representing 316 million of future capital expe

292、nditure to complete and 50 million of annualised gross rental income when fully let.60 per cent of this rent has already been secured and these projects should yield 6.6 per cent on total development cost when fully occupied.OUR STRATEGYOPERATIONAL EXCELLENCE:DEVELOPMENT ACTIVITY28SEGRO PLC|ANNUAL R

293、EPORT&ACCOUNTS 2019Further details of our completed projects and current development pipeline are available in the 2019 Property Analysis Report,which is available to download at DEVELOPMENT PIPELINE NEAR-TERM DEVELOPMENT PIPELINE Within the future development pipeline are a number of pre-let projec

294、ts which are close to being approved,awaiting either final conditions to be met or planning approval to be granted.We expect to commence these projects within the next six to 12 months.These projects total 395,300 sq m of space,equating to approximately 205million of additional capital expenditure a

295、nd 20 million of additional rent.LAND BANK Our land bank identified for future development(including the near-term projects detailed above)totalled 507 hectares at 31 December 2019,valued at 423million,less than 5 per cent of our total portfolio value.We invested 147 million in acquiring new land du

296、ring the year,including land associated with developments already underway or expected to start in the short term.We estimate that our land bank can support 2.1million sq m of development over the next five years.The prospective capital expenditure associated with the future pipeline is approximatel

297、y 1.0 billion.It could generate 100million of gross rental income,representing a yield on total development cost(including land and notional finance costs)of around 7 per cent.These figures are indicative based on our current expectations and are dependent on our ability to secure pre-let agreements

298、,planning permissions,construction contracts and on our outlook for occupier conditions in local markets.Since the period end we acquired approximately 182 hectares of land ideally suited to big box warehouse development close to Coventry in the UK.CONDITIONAL LAND ACQUISITIONS AND LAND HELD UNDER O

299、PTION AGREEMENTS Land acquisitions(contracted but subject to further conditions)and land held under option agreements are not included in the figures above but together represent significant further development opportunities.These include sites for big box warehouses in the UK Midlands as well as in

300、 Germany and Italy.They also include urban warehouse sites in East London and close to Heathrow.The options are held on the balance sheet at a value of 37 million(including joint ventures at share).Those we expect to exercise over the next two to three years are for land capable of supporting just o

301、ver 1.8 million sq m of space and generating approximately 116 million of headline rent(SEGRO share)for a blended yield of approximately 7per cent.ENVIRONMENTAL IMPACTThe carbon generated through our development activity is a significant part of our total carbon footprint and we understand that,as a

302、 developer,we are responsible for minimising the environmental impact of our activity and making our buildings as efficient as possible to operate.Of the eligible certified space completed in 2019,94 per cent has been accredited as BREEAM Excellent or Very Good(or a local equivalent).We pay attentio

303、n to our use of energy,resources and materials throughout the construction of our warehouses and are increasingly looking at how we can use design to minimise the carbon footprint of them throughout their entire life cycle.We now regularly include features such as LED lighting,transparent panels to

304、improve natural daylight,water recycling systems and electric vehicle charging points.We are also investigating ways of offsetting the carbon that we produce,for example by installing solar panels on our buildings to produce renewable energy.During 2019 we increased our renewable energy capacity by

305、38 per cent,bringing it to 18.5 MW,enough to power 4,500 homes.USING OUR DEVELOPMENT PROGRAMME TO HELP TRANSFORM COMMUNITIESOur urban warehouse developments typically involve the regeneration of former,often neglected,manufacturing sites and the redevelopment of this land attracts new businesses and

306、 brings jobs and prosperity to the area.We work closely with local authorities on the section 106 agreements(or equivalent)that form part of the planning process and we often go above and beyond what is required.This can involve making investment to improve the local infrastructure,asking our contra

307、ctors to source materials from local suppliers and advocating the recruitment of local workers during the construction process.Once our warehouses are occupied we also do what we can to help our customers to employ locally and fund training programmes to upskill people from the surrounding community

308、.We also create job networks to help connect our customers with potential employees.As long-term owners of our assets it is in our interest for the communities that we are part of to thrive.Taking this into consideration from the very start of the development process is key to maximising the contrib

309、ution that we can make and the impact that we can have.29OVERVIEWSTRATEGIC REPORTGOVERNANCEFINANCIAL STATEMENTSOUR STRATEGYOPERATIONAL EXCELLENCE:REGIONAL REVIEWGREATER LONDONTHAMES VALLEYOPERATING SUMMARY OF THE YEARStrong performance in capturing reversionary potential across the London portfolio,

310、generating a 34.1 per cent uplift(equating to over 7 million of headline rent)compared to previous rentsSignificant progress in the development of our East+portfolio with the completion of projects at SEGRO Park Newham and good take up of speculatively developed space at SEGRO Park Rainham OPPORTUNI

311、TIES FOR THE YEAR AHEAD98,300 sq m of new urban warehouses under construction across all parts of London including the second phase of SEGRO Park Rainham in East London,the redevelopment of SEGRO Park Hayes in West London and our largest ever London pre-let(by rent)in East London for OcadoWe continu

312、e to look into opportunities for growth within Londons Opportunity Areas and to consider ways of intensifying land use so that we can continue to support our customers growth plans RISKS FOR THE YEAR AHEADLand continues to be in limited supply but our market position and strong network gives us acce

313、ss to off-market opportunitiesThere has been limited impact on our portfolio from the uncertainty surrounding the UKs position in Europe and until it has been finalised we remain alert to the potential risks of thisOPERATING SUMMARY OF THE YEARVacancy has remained low at 2.4 per cent and customer re

314、tention has remained high We completed five new data centres on the Slough Trading Estate,adding 5 million to the rent roll.We also completed two new buildings at our new estate SEGRO Park Bracknell and both are already fully leasedOPPORTUNITIES FOR THE YEAR AHEADWe have another two data centres und

315、er construction,both due for completion in 2020,adding another 3 million of rental incomeWe have a further four warehouses being speculatively developed on the Slough Trading Estate and another on SEGRO Park BracknellContinued strong interest from the data centre sector driven by the increasing impo

316、rtance of digital ecosystemsRISKS FOR THE YEAR AHEADThe limited amount of available space on the Estate means that it can be hard to find space for expanding businesses and we must be innovative to accommodate our customers expansion plans.Our full ownership of the Estate allows us to be creative in

317、 our solutions to achieve thisThere has been limited impact on our portfolio from the uncertainty surrounding the UKs position in Europe and until it has been finalised we remain alert to the potential risks of thisRENTAL GROWTH ACROSS THE LONDON PORTFOLIO Our strategy in London continues to deliver

318、 results with consistent rental growth across all of the sub-markets in which we operate.We have made very good progress in capturing the revisionary potential that has accumulated across the portfolio,supported by strong occupier demand from a wide variety of businesses,all of whom need to be close

319、 to their customers and their labour force.We have taken advantage of our strong competitive position in London to create some off-market opportunities for asset and land acquisitions so that we can continue to grow the portfolio.MODERNISING THE SLOUGH TRADING ESTATE AND EXPANDING OUR PRESENCE IN TH

320、E THAMES VALLEYWe are constantly modernising Slough Trading Estate toensure that it is the location of choice for businesses intheThames Valley.The Estate is home to businesses both large and small,from a wide range of sectors.We continue to attract data centres due to the close proximity of the est

321、ate to London,the access to a robust power supply and the fibre-optic connectivity.We are expanding our presence in the Thames Valley with addition of our new estate SEGRO Park Bracknell.30SEGRO PLC|ANNUAL REPORT&ACCOUNTS 2019NATIONAL LOGISTICS(UK BIG BOX WAREHOUSES)NORTHERN EUROPE(GERMANY AND NETHE

322、RLANDS)OPERATING SUMMARY OF THE YEARCompleted four buildings at SLPEMG,generating 11 million of additional rent.We also completed the infrastructure work and the Strategic Rail Freight Interchange,which became operational in January 2020Secured our first pre-let at SPK and a further pre-let at SLPEM

323、G,both of which should complete in summer 2020OPPORTUNITIES FOR THE YEAR AHEADWe will be working hard to secure further pre-lets at SLPEMG and SPK Since the year end we have purchased and commenced the infrastructure work at SEGRO Park Coventry,which will provide 343,700 sq m of logistics and manufa

324、cturing spaceRISKS FOR THE YEAR AHEADSpeculative development of big box warehouses in the UK rose in 2019 in response to continued strong occupier demand.We expect rental growth to be modest during 2020 but are continuing to receive high levels of enquiries for our well-located logistics parksThere

325、has been limited impact on our portfolio from the uncertainty surrounding the UKs position in Europe and until it has been finalised we remain alert to the potential risks of thisOPERATING SUMMARY OF THE YEARAnother record year of development with 173,300 sqm of space created in Germany,including 31

326、,500 sq m of urban warehouse space in Dsseldorf and BerlinStrong performance in leasing recently completed speculative developments has resulted in the vacancy rate improving to 7.0 per cent,almost all of which is modern,recently completed spaceStrong customer relationships and active asset manageme

327、nt of our portfolio resulted in a 98 per cent retention rateOPPORTUNITIES FOR THE YEAR AHEADWe have 145,500 sq m of new developments currently under construction,including our urban warehouse park in Rodelheim,another phase of our urban scheme in Dsseldorf Sd and developments close to Schiphol airpo

328、rt in AmsterdamWe will be working hard to secure lettings at our recently completed urban warehouses in Germany and continuing to look for opportunities to build scale in the NetherlandsRISKS FOR THE YEAR AHEADWe continue to remain alert to the potential risks of slowing economic growth in the Euroz

329、one but the impact on occupier demand has so far been limitedFOCUSING OUR UK BIG BOX STRATEGY ON LOGISTICS PARKSWe continue to see high levels of interest for our well-located logistics parks despite an uptick in speculative development in the Midlands.During the year we made good progress at SEGRO

330、Logistics Park East Midlands Gateway(SLPEMG)and have also secured our first pre-let at SEGRO Park Kettering.We continue to work on bringing major sites forward for development and intend to focus our investment on logistics parks rather than stand-alone assets.CONTINUING TO BUILD OUT OUR URBAN PORTF

331、OLIO IN GERMANY AND FOCUSED ON ACHIEVING SCALE IN THE NETHERLANDSA very strong period of performance in both leasing and development.We continue to build out our urban warehouse portfolio in Germany and see high levels of occupier demand for our well-located,modern warehouses,and this resulted in st

332、rong rental growth during 2019.We are also focused on achieving scale in the Netherlands and made good progress during the period.31OVERVIEWSTRATEGIC REPORTGOVERNANCEFINANCIAL STATEMENTSOUR STRATEGYOPERATIONAL EXCELLENCE:REGIONAL REVIEWCONTINUEDSOUTHERN EUROPE(FRANCE,ITALY AND SPAIN)CENTRAL EUROPE(P

333、OLAND AND CZECH REPUBLIC)OPERATING SUMMARY OF THE YEARCompleted 409,800 sq m of development in France,Italy and Spain,generating a potential 16 million of rent,almost 90 per cent of which has been securedVacancy rate remains low at 4.8 per cent,reflecting healthy occupier demand for our well-located portfolio and we made good progress in leasing recently completed speculative developmentsOPPORTUNI