Land Securities impresses with half-year figures - UKCIG

Land Securities this morning delivered a strong set of half-year results, outperforming both its big rival British Land and the overall market.

The UK’s largest listed property company revealed a drop of 2.7% in its net asset value to 622p a share in the six months to 30 September. This was driven by a 1.4% drop in the value of its portfolio, which is commendable, given that UKCIG property values did not stop falling until July.

The fall was 1.1% better than the Benchmark Investment Property Databank Quarterly Universe and 1% better than British Land’s 2.4% value fall, announced yesterday, over the same period

The London portfolio rose by 0.5%, while retail dropped by 3.6%.

“We are pleased that our portfolio has outperformed the market index, and that we have delivered our plans for balance sheet management through treasury activity and asset disposals,” said chief executive Francis Salway.

“We are confident that, from the low point in July 2009, property values will rise over the next five years with the profile characterised by ripples rather than pure straight-line growth as residual risks and imbalances in financial markets play out.”

LandSecs has £750m to spend in its target markets of central London offices and retail. It is carrying out three developments in the West End, which will start next year for completion at the end of 2012 and 2013, and is seeking income-producing shopping centres and retail parks.

“We are prepared to be patient for the best opportunities and we will not rush our investment programme, as we expect a broader range of opportunities to emerge once banks begin to take action on their property loan portfolios,” said Salway.

UKCIG Property News, November 2009