Land Securities NAV up, pre-tax profit down

Land Securities posted what it described as “strong” preliminary results on Tuesday, with asset values, revenue and earnings all increasing in the 12 months to 31 March.

The FTSE 100 commercial property firm reported a basic net asset value per share of 1,482p - up 10.3% - and an adjusted diluted net asset value per share of 1,434p - an increase of 10.9%.

Its revenue profit for the 12 months was £362.1m, a 10% increase, while the adjusted diluted earnings per share grew 10.1% to 45.7p.

At face value, the group’s valuation surplus dropped significantly to £907.4m from £2,036.9m.

When adjusted for net investment, however, the company says the combined portfolio’s increase in value over the year was 7%.

Profit before tax did dip, however, to £1,335.6m from £2,416.5m, and basic earnings per share dove to 169.4p from 306.1p.

"We are pleased to report a strong performance for the year,” said chief executive Robert Noel.

“Revenue profit and net asset value per share are up, lease terms are longer and, as planned, speculative development exposure and net debt are lower.

“Continued leasing momentum in our development programme combined with smart asset management and balance sheet discipline has put the business in a strong position,” he explained.

Noel said the company’s confidence was demonstrated by a proposed 9.9% increase to the dividend, and in London in particular, it was continuing to lease up its speculative development programme with more than 0.5m square feet of new lettings.

It also made progress on on its future pipeline in the capital with 0.9m square feet of planning consents, and took advantage of “strong market conditions” during the year in selling assets.

“In retail, we have sold selectively,” Noel said.

“Our operational focus is delivering results, with voids down and both footfall and same store retailer sales up in contrast to national benchmarks.”

“Our development at Westgate Oxford looks very promising with a healthy level of retailer support and is almost 50% pre-let 18 months ahead of opening,” he added.

The company’s strategy is delivering value for shareholders, space for customers and positive change for communities, Noel stated.

"We have a strong balance sheet with better assets and longer income streams.

“Despite the current political and economic uncertainty, Land Securities is well placed."

The company’s board confirmed a dividend of 35p with the preliminary results, up 9.9% from last year’s 31.85p.