Headline losses for Land Securities (LAND) at the halfway stage reflected costs associated with the redemption of some of its bonds. Net rental income was actually nearly 2 per cent higher at £303m, which would have been higher still without taking disposals into account. These included 20 Fenchurch Street, which generated £634m (the company’s share) against a build cost of £237m.
Net asset value was flat, as the valuation deficit narrowed from £260m a year earlier to just £19m. The portfolio performance was mixed, though. Rental values were lower for London offices and shopping centres, while retail parks and central London shops both delivered a marginal uplift. However, these changes – all less than 1 per cent – reflected valuations of individual assets rather than a general shift in the direction of overall trends.
Crucially, the £3bn speculative development arm has been completed, with only 140,000 square feet (sq ft) of Victoria development Nova waiting for a tenant. In the City of London, a planning application has been submitted for a 564,000 sq ft building at 21 Moorfields, and Deutsche Bank has already agreed to take a minimum of 469,000 sq ft.
Analysts at Peel Hunt are forecasting adjusted net asset value at the March 2018 year-end of 1,432.4p a share, up from 1,418.5p a year earlier.
| LAND SECURITIES (LAND) | ||||
| ORD PRICE: | 933p | MARKET VALUE: | £6.91bn | |
| TOUCH: | 933-933.5p | 12-MONTH HIGH: | 1,142p | LOW: 931p |
| DIVIDEND YIELD: | 4.3% | TRADING PROP: | £111m | |
| DISCOUNT TO NAV: | 36% | |||
| INVESTMENT PROP: | £13.7bn* | NET DEBT: | 27% | |
| Half-year to 30 Sep | Net asset value (p) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p)** |
| 2016 | 1449 | -95 | -12.1 | 17.9 |
| 2017 | 1468 | -33 | -4.3 | 19.7 |
| % change | +1 | - | - | +10 |
| Ex-div: | 30 Nov | |||
| Payment: | 05 Jan | |||
| *Including joint ventures **Dividends paid quarterly XD and Pay Date refers to second quarterly dividend of 9.85p | ||||
