Land Securities : LAND – annual results

Land Securities has released results for the year ended 31 March 2014. The net asset value was up – adjusted / diluted up 12.2% to £10.13. Overall they underperformed the IPD quarterly universe – the ungeared total property return was 12.8% vs. 13.6% for the index. They increased the dividend to 30.7p (up 3%).

At 20 Fenchurch Street (the Walkie Talkie) the building is 87% let and Land securities have planning permission for a solution to the solar lens problem – they say the building has generated a valuation surplus of £137m to date. They have a number of buildings under construction in the city including 1&2 New Ludgate and 1 New Street Square (pictured). 2 New Ludgate has been let to Mizuho Group. There are also three buildings under construction in Victoria and 20 Eastboune Terrace adjacent to Paddington station. They say they are not planning on any new central London developments unless they are pre-let.

In the retail portfolio they have been making selective disposals and refurbishing some existing properties. Their loan to value ratio has dropped to 32.5% as sales exceeded purchases and £764m was added to property valuations. The weighted average cost of debt is 5.0%.