Land Securities annual pre-tax profit down 58 per cent

Strengthens asset management portfolio.

New Statesman
(L-R) Neil Patterson and John Garwood of Land Securities at the site of 20 Fenchurch Street in London on April 23. Credit: Getty Images.

The British commercial property company Land Securities Group has reported a pre-tax profit of £515.7m for the fiscal year ended 31 March 2012, a decrease of 58 per cent compared to £1.23bn for the same period last year.

Basic earnings per share were 67.5p (2011: 162.3p), while valuation surplus was £190.9m (2011: £908.8m).

Revenue profit including share of joint ventures grew 9 per cent to £299.4m (2011: £274.7m).

The company’s rental values grew 1.2 per cent across total like-for-like portfolio since March 2011. Property disposals were £905.7m at an average of 4.3 per cent above last year valuation.

Since 2010, the company created 47,700 sq m of new space for Primark, the John Lewis Partnership and Sainsbury’s. Investment lettings in the year were £39.1m.

The group has on site at 111,180 sq m of development schemes in London, with a further 175,370 sq m of future developments with planning consents obtained or planning applications submitted. It also has on site at 102,200 sq m of development schemes in retail.

During the year the company sold 110 Cannon Street, EC4 and Arundel Great Court as well as residential apartments at Wellington House.

Group LTV ratio including share of joint ventures was 38 per cent (2011: 39 per cent). The group recommended increase in final dividend to 7.4p from 7.2p.

Robert Noel, chief executive of Land Securities, said:

We have a clear strategy allied to a clear plan based on a realistic outlook. Despite economic uncertainty impacting the second half of the year, we have maintained our focus, building on our strength and our proposition.

We have a deep knowledge of our core markets and an expert, focused team. The outlook remains uncertain but we will continue to use the competitive advantage offered by our financial resources to deliver on our plans and exploit opportunities as they arise.