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Land Securities writes down retail investments

Land Securities writes down retail investments – Land Securities has published results for the year ended 31 March 2019. Highlights are:

  • EPRA Net asset value down 4.6% to 1,339p
  • Like for like rental income up 1.9%
  • Adjusted and diluted earnings per share up 12.4% to 59.7p.
  • Dividend per share of 45.55p (up 3.1%)

The return on Land’s retail portfolio was -3.4%, this compares favourably with the -6.8% return posted by the equivalent MSCI IPD Quarterly benchmark

Financial position

  • LTV ratio 27.1% (31 March 2018: 25.8%)
  • Adjusted net debt GBP3.7bn (31 March 2018: GBP3.7bn)
  • Weighted average cost of debt at 2.7% (31 March 2018: 2.6%)
  • Weighted average maturity of debt at 12.3 years (31 March 2018: 13.1 years)
  • Cash and available facilities of GBP1.6bn

Development pipeline

  • London development opportunities increased to 3.6 million sq ft with an estimated total development cost of GBP3.0bn
  • Good progress on site at 21 Moorfields, EC2, with Deutsche Bank confirmed for the whole building
  • One Sherwood St, W1 under way, enabling works commenced at Nova East, SW1 with 105 Sumner St, SE1 starting later in the year
  • 1.6 acre site at 25 Lavington Street, SE1 acquired during the year
  • Planning applications being prepared for Portland House, SW1; Red Lion Court, SE1; Finchley Road, NW3; and Shepherd’s Bush, W12
  • Master planning of Lewisham town centre, SE13 under way

Chief executive Robert Noel said: “We’ve had a strong year operationally, maintaining high occupancy, expanding our development pipeline and delivering new products and services, including our Myo flexible offer. This is against the backdrop of political gridlock and the well-publicised difficulties in the retail market. The actions we took both this year and last have delivered an increase in revenue profit of 8.9% to GBP442m. Adjusted diluted earnings per share were up 12.4% to 59.7p. Weaker retail markets account for an overall 4.1% fall in the value of our assets and a 4.6% reduction in EPRA net assets per share to 1,339p.

Our business continues to evolve. 65% of our assets by value and our entire GBP3.0bn pipeline of development opportunities are now in London and over the coming years the business will be more concentrated in the capital. Outside London, we’ll continue to reduce our exposure, maintaining our focus on experience-led destinations.

Landsec is in a healthy financial position. We have a clear sense of where current and future opportunities lie and are well placed to address our customers’ changing needs, and deliver sustained value creation for our shareholders. This is an exciting time for real estate companies with the insight and capabilities needed to create the spaces for tomorrow’s businesses and communities.”

LAND : Land Securities writes down retail investments

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