Revenue profit up and voids down at Land Securities
Published: 14 November, 2011
Land Securities has announced that revenue profit is up 17.2 per cent to £195.6m, in its half-yearly results for the six months to 30 September 2011.
During this time, property sales rose to £195.6m, an average of 10.2 per cent above March 2011 valuations and rental values were up 1.6 per cent like-for-like across the portfolio.
And voids are down from 4.7 per cent to 3.6 per cent.
Lettings are progressing well at Trinity Leeds and 185-221 Buchanan Street, Glasgow, with 54 per cent pre-let and 6.7 per cent in solicitors’ hands, and 73.5 per cent pre-let and 17.2 per cent in solicitors’ hands, respectively.
Land Securities chief executive Francis Salway said: “Our continuing progress in the period reflects our focus on operations at every level. We have reduced vacancy rates, secured lettings above estimated rental value and achieved sales above the March 2011valuation. Revenue profit has increased and our balance sheet is stronger, with lower gearing and capacity to invest in acquisition opportunities as and when they arise.
“We are operating in a challenging environment and we expect pressures in managing occupancy rates to continue. However, we have been encouraged by our first half performance and by both the number of enquiries on our development schemes in London in the last quarter and also our progress on preletting our retail developments. Our strong balance sheet and excellent customer relationships give us confidence in our ability to respond and adapt to evolving market conditions.
“We have a pipeline of opportunities within the portfolio to grow shareholder returns allied with a strong balance sheet to withstand economic fluctuations. We are alive to the potential effects of economic uncertainty and changeable sentiment in the capital markets. We have consistently stated that we did not expect to see a straight-line recovery in our market and we see no reason to adjust this outlook. We also believe that market uncertainty may well generate buying opportunities, as the balance between
buyers and sellers shifts for some property types.”
