Land Securities posts rise in first half NAV but profit drops

Property developer Land Securities reported a 5.7% jump in first half net asset value per share thanks to a solid performance in London lettings and its retail portfolio, although pre-tax profit fell.

For the six months to the end of September, adjusted diluted NAV per share – which reflects the value of the company’s properties – came in at 1,367p compared with 1,293p at the end of March and the group lifted its interim dividend 3.2% to 16.3p per share.

UBS had been expecting Land Securities to post a 9% increase in NAV per share to 1,409p.

Pre-tax profit fell to £707.9m from £1.03bn in the same period last year, primarily due to a reduction in the company’s valuation surplus from £880.2m to £519.3m.

Land Securities said it has agreed to let space in its Zig Zag office building in the Victoria business district in London to Deutsche Bank on a 15-year lease. The building is now 77% pre-let.

Chief executive Robert Noel said: “Our strategy is working and we are well positioned for the future. We have better assets, with higher quality income, and our balance sheet is stronger than ever.

“We are delivering for our customers, our communities and our shareholders and look forward to the second half of the year with confidence."