Land Securities has delivered a return of 5.9% for the six months to September, underperforming the IPD Quarterly Universe at 6.8%.
In its half-year results issued today, Land Securities said that in the six months to September the REIT delivered a profit before tax of £707.9m, compared to £1,031.1m in the same period last year, due primarily to a slowing valuation surplus.
It said its valuation surplus decreased to £519.3m, compared to £880.2m in the same period the year before.
However, Land Securities said its revenue profit increased by 8.4% to £184.2m, saying the £14.2m increase was mainly due to lower net interest expense and higher net rental income.
Its retail portfolio returned 4.1%, against the IPD benchmark of 4.3%, while its London portfolio returned 7.3%, against the IPD benchmark at 10.4%.
Over the period, Land Securities said it invested £317.3m in acquisitions, development and refurbishment and completed disposals of £406.5m.
Chief executive Robert Noel said: “We continue to track and assess new development opportunities – both inside and outside our current portfolios but, as we have previously indicated, we will not commit to further developments without substantial prelets.
“We are likely to be net dis-investors in the second half of the year as a result of some £565m of disposals we have agreed but not yet completed.”
