Landsec cuts debt and curbs spec development
Lendsec has reported loss for the year to 31 March 2018 of £251m, as a result of moves to strengthen its balance sheet ahead of an anticipated downturn in occupational and investment markets.
The company said it had returned £475m to shareholders and refinanced over £1.5bn of bonds which reduced the weighted average cost of debt to 2.6 per cent and lengthened its duration to 13.1 years. Revenue profit increased by 6.3 per cent to £406m
Chief exec Rob Noel said: “The business is in a strong position. Our portfolio is well let and adaptable to changing customer expectations. In a market facing short-term uncertainty, we have conservative gearing, market-leading debt facilities and a growing pipeline of opportunities for the future.”
“In retail, we opened Westgate Oxford which is now 96% let or in solicitors’ hands and acquired three new outlet destinations for £333m. Looking ahead, we are working up feasibility plans for significant mixed use development at our suburban London retail assets and will be enhancing our outlets.”