FINANCE: Land Securities has posted a basic net asset value per share of 1,183p as of 30 September this year, compared with 1,069p on 31 March.
The development giant also nearly tripled its profit before tax on the year, posting £1bn for the six months to 30 September.
This represents a rise of more than £600m on the six months to 30 September 2013. Profit after tax for the six months to 30 September 2014 stood at just over £1bn – nearly equalling profit for the full year to 31 March.
It also reflects a revenue profit – LandSec’s measure of underlying pretax profit – of £170m for the period, compared with £156.5m a year ago. This figures excludes valuation movements and investment property disposals.
Adjusted diluted NAV per share stood at 1,129p, compared with 1,013p on 31 March 2014 – an 11.5% jump.
Meanwhile, the group loan-to-value ratio rose slightly from 32.5% in March to 33.6% in September.
Some £185.8m of sales were recorded during the period, with £468.9m since 30 September, along with £697m of acquisitions during the period and £137.5m since 30 September.
Voids in the like-for-like portfolio rose slightly from 1.9% in March to 2.6% in September.
The portfolio is presently valued at £12.2bn, of which £4bn is from London offices, £2.2bn from shopping centres and shops, £1.2bn from retail warehouses and food stores, £1.1bn from central London shops, £700m from leisure and hotels and £96m from other investments.
Weighted average debt maturity stood at 8.2 years. Cash and available facilities totalled £800m.
LandSec’s rental income increased slightly across both its retail and its London portfolios, standing at £185.5m and £135.8m on 30 September respectively, compared with £179.6m and £133.2m a year earlier.
The group’s net debt increased over the six-month period by £769.6m to £4.1bn, driven by the acquisition of a 30% stake in Bluewater in Kent. Adjusted net debt also rose by £675m to £4.6bn.
A £500m acquisition facility was put in place to fund the Bluewater investment, replacing an existing facility due to mature in September. The firm now has £385m of committed facilities extending beyond December 2016, when a £1.1bn revolving credit facility matures.
The group expects to complete the final work on its brise soleil shading system for the Walkie Talkie skyscraper at 20 Fenchurch Street, EC3, in the coming weeks. Average rent at the building is £64 per sq ft, with an average length to lease break of 17 years.
LandSec’s chief executive, Rob Noel, said: “We have had a brilliant six months. Our London development programme is appearing well timed – we still have half of our 2.4m sq ft (London) development pipeline left to let and the letting conditions are clearly in our favour at the moment.
“So we are pretty chipper today and actually it is all looking pretty rosy for the next six months or so – and the next two years, really.”
chris.berkin@estatesgazette.com
jack.sidders@estatesgazette.com
