Land Securities' (LAND) shares rose 4 per cent on these annual results - a big move for Britain's largest real-estate investment trust. The company posted much stronger valuation gains than most analysts had been expecting, pushing adjusted net asset value up 5 per cent to 903p a share.
The £1.4bn development programme was almost entirely responsible for the good news. The company's leasing team signed up more tenants for the Walkie Talkie building that is now towering over 20 Fenchurch Street in the City of London; 56 per cent of the space is pre-let or in solicitors' hands, with completion expected next April.
Chief executive Rob Noel announced he was pressing the red button on the £768m first phase of Victoria Circle, its joint venture with the Canadian Pension fund. Construction on the recently levelled island site opposite Victoria train station - to include mainly offices, but also some shops and restaurants plus 170 flats - will start next month and complete roughly three years later.
Meanwhile, the standing investment portfolio, which pays for the company's dividends and costs and backs its debt, remained broadly flat over the year. This was a surprisingly strong result - it fell by 1.2 per cent in value in the first half. Rents continue to fall in the regional retail portfolio, but the losses were made up by the ongoing strength of the company's London assets.
Brokerage Investec expects adjusted net asset value (NAV) to hit 927p a share by March 2014.
LAND SECURITIES GROUP (LAND) | ||||
---|---|---|---|---|
ORD PRICE: | 970p | MARKET VALUE: | £7.55bn | |
TOUCH: | 969-970p | 12M HIGH / LOW | 970p | 700p |
DIVIDEND YIELD: | 3.1% | TRADING PROP: | £153m | |
PREMIUM TO NAV: | 1% | |||
INVESTMENT PROP: | £11.0bn* | NET DEBT: | 49% |
Year to 31 Mar | Net asset value (p) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
---|---|---|---|---|
2009 | 639 | -4,773 | -918 | 56.5 |
2010 | 750 | 1,069 | 144 | 28.0 |
2011 | 885 | 1,227 | 162 | 28.2 |
2012 | 921 | 516 | 67 | 29.0 |
2013 | 959 | 533 | 68 | 29.8 |
% change | +4 | +3 | +1 | +3 |
Ex-div: 19 Jun Payment: 19 Jul *Including £1.3bn within joint ventures |