Land Securities has posted a 9% hike in revenue profit, or underlying profit, for the six months to 30 September 2013.
Revenue profit for the London property giant stood at £156.5m over the most recent six-month period, compared with £143.7m in the half-year to 30 September 2012. The increase was put down to a £25.3m boost to net rental income.
This compares to profit before tax of £397.9m for the half-year, up from £131.4m in the six months to 30 September 2012.
Adjusted NAV per share also rose by 3.8%, from 903p at 31 March 2013 to 937p by 30 September 2013. Adjusted earnings per share stood at 19.9p, up from 18.4p in the same period the year before.
The total property return stood at 4.7%, slightly underperforming the IPD Quarterly Universe at 4.9%.
Plans for new retail schemes in Glasgow, Oxford and Guildford are being drawn up, though the immediate development pipeline focuses on retail warehouses.
A quarterly dividend of 7.6p per share on 9 January 2014 will see the first half dividend standing at 15.2p per share or £119.2m, up from 14.8p per share or £119.2m for the six months to 30 September 2012.
The combined value of the portfolio increased from £11.45bn at the end of March to £11.76bn at the end of September.
Net rental income stood at £295.4m, with £131.5m of that coming from the London portfolio and £163.9m from retail assets.
Both net rental values rose on the previous year, standing at £136.7m and £133.4m respectively, though they were also offset by higher interest costs.
The rise was attributed to the acquisition of X-Leisure and the completion of Trinity Leeds and 185-221 Buchanan Street in Glasgow.
The statement added that due to a “highly competitive market”, asset sales were likely to exceed capital expenditure and acquisitions in the second half.
Chief executive Rob Noel said that despite the “solar glare” issue at the Walkie Talkie, occupiers “had not been blinded to the efficiency and location of the building.”
“We are close to resolving the issue and it will not delay occupation nor inflate budgeted cost. And, since March, we have committed to £691m of further developments in central London.
“Our core markets, retail and London, are driven by different dynamics and our strategies reflect the differences. In retail, we have kept voids low, sold assets in non-core locations and recycled the capital into leisure as consumer demand for experiences grows. At the same time we are planning next generation retail parks and shopping centres.
“We are maintaining our balance sheet discipline, basing our decisions on property fundamentals and remain confident in our strategy.”
chris.berkin@estatesgazette.com
