News / Tumbling property value growth impacts warehouse specialist Segro's profits

Resilient demand for warehousing space was not enough to stop property developer Segro recording a 37.9% year-on-year decline in profits.

The company’s pre-tax profits fell to $531m compared with $856m in 2015.

The main barrier to profit growth was slower growth of property values; the firm’s portfolio growth fell from a $547m increase in 2015 to just $288m last year.

A 65.9% decline in valuation growth was also recorded for properties held in joint ventures: down from $155m to $53m.

“Earnings were also impacted by a net fair value loss on ...