Land Securities has delivered a 4.5% hike in adjusted net asset value to 863p a share in a solid set of full-year results.
The UK’s largest REIT said its portfolio rose in value by 2% to £10.3bn in the 12 months to March 2012.
This comprised a 1.8% increase in the like-for-like portfolio, while the value of assets in the group’s development programme jumped 8.2%.
Capital growth in the development pipeline also drove an 8.5% increase in adjusted earnings per share, which rose to 38.5p.
Retail was the poorest-performing asset class, with “shopping centres and shops” down 3.2%, almost all of which was recorded in the second half of the year, contributing to a 1.5% fall across the group’s retail portfolio.
The London portfolio rose in value by 3.9%, with West End offices up 4.9%, City offices up 4.3%, and central London retail up 2.7%.
LandSec’s portfolio had a net initial yield of 5.4% at the year end.
The group said lettings of £24.5m were concluded 12.2% ahead of ERV in the London portfolio, adding that its City tower at 20 Fenchurch Street, is 8% in solicitors’ hands.
Profit before tax halved to £515.7m as the value of the company’s properties increased more slowly than a year earlier, although revenue profit rose 9% to £299.4m.
The full-year dividend was 29p – up 2.8% on the previous year’s pay-out.
New chief executive Rob Noel said: “We have a clear strategy allied to a clear plan based on a realistic outlook. Despite economic uncertainty impacting the second half of the year, we have maintained our focus, building on our strength and our proposition.
“We have a deep knowledge of our core markets and an expert, focused team. The outlook remains uncertain but we will continue to use the competitive advantage offered by our financial resources to deliver on our plans and exploit opportunities as they arise.”
bridget.o’connell@estatesgazette.com
