LandSecs produces spectacular results and moves to plug "acute" offices shortage

Published 18th May 2011

Land Securities posted a double-digit rise in full-year net asset value and said it will continue speculatively developing offices to fill a central London under-supply that may be more acute than it expected.

The landlord and developer's net asset value per share rose 18 percent to 885 pence, including a 908.8 million pound increase in the value of its portfolio to 10.6 billion pounds, up 9.7 percent from a year earlier.

The company also said on Wednesday that rental values were up 4.7 percent across its total like-for-like portfolio since March 2010. Voids -- or unlet floorspace -- had fallen to 4.3 percent at March 31.

"We remain of the view that our markets are in recovery mode and we see particularly strong growth prospects in London over the next few years," Chief Executive Francis Salway said in a statement.

"We may continue to see ripples in (commercial property) prices, but we go into the new financial year confident in our plans and well positioned to address growth opportunities," Salway said.

The company, which posted a pretax profit of 1.23 billion pounds, up 14.8 percent on the year, kickstarted its office development programme months ago to capitalise on a shortage of prime offices in central London.

Land Securities pipeline includes the 500 million pounds, 37-storey tower at 20 Fenchurch St, known as the 'Walkie Talkie' because of its likeness to a telephone handset. The project is a joint venture with Canary Wharf Group.

"Consistent with our view last year, we expect the strongest rental value growth to occur for London offices and we continue to believe that the best way to capture this is by undertaking speculative development projects in the best locations in London," the company statement continued.

"This will play to our strengths, and we will continue to enhance returns from our development activity in London with residential development where appropriate," the company said. Land Securities also said it would continue to refine the composition of its retail portfolio through new development, where we can achieve significant pre-lettings, and through selective purchases and sales.

Land Securities recommended lifting its final dividend to 7.2 pence, from 7 pence a year earli

Source: ' Reuters '

View All Latest News