Prelim results 2008 press release
14 May 2008
LAND SECURITIES GROUP PLC (Land Securities)
Preliminary results for the year ended 31 March 2008
"Whilst Land Securities has not been immune to the general market trends in
property values, we have performed well in each of our three divisions and
achieved significant out performance against IPD. Our moderate gearing levels,
well timed development programme and active approach to asset management
position the Company well for the current market."
Results Summary
2008 2007 change
Valuation deficit / (£1,279.6m) £1,396.1m n/a
surplus
Basic NAV 2067pence 2304 pence Down 10.3%
Adjusted diluted 1956 pence 2181 pence Down 10.3%
NAV*
Pre-tax profit / (£888.8m) £1,979.1 n/a
loss**
Revenue profit £379.1 £392.2 Down 3.3%
Basic EPS (188.80 pence) 753.59 pence n/a
Adjusted diluted 81.71 pence 70.20 pence Up 16.4%
EPS
Adjusted Gearing ** 67.5% 58.8% n/a
*
Dividend 64.0 pence 53.0 pence Up 20.8%
*Our key valuation measure ** Includes revaluation deficit, profits/loss on
disposals and exceptional items *** Including notional share of joint ventures
Highlights
Performance
* All three businesses, London, Retail and Trillium performed well
* £58.5m p.a. of development lettings in year
* £1.56bn of investment property sales - 5.3% above March 07 valuation
(before disposal costs)
* £0.81bn of capital released from Trillium Investment Partners Fund
* Investment portfolio valuation down 8.8%
* IPD outperformance on investment properties
+ IPD All Property + 6.5%
+ IPD London Office +4.3%
+ IPD Shopping Centre + 4.6%
+ IPD Retail Warehouses + 5.5%
London
* 1.6m sq ft of new developments completed and 94% let
* Total sales of £716.2m at 8.2% above March 07 valuation
* Timing of development pipeline well matched to economic cycle
Retail
* Completed and launched three developments, Exeter 95% let, Cambridge 100%
let and Corby 75% let
* Total sales of £839m at 2.3% above valuation
* Launched and grew the Harvest Partnership joint venture with J Sainsbury
Trillium
* Successful launch of £1.1bn Trillium Investment Partners fund
* Positive return on capital of 9.5%
* New business wins in key strategic areas including education and waste
Demerger
* Good progress on plans for the demerger. New Chairmen selected for each
business
* Discussions with rating agencies indicate likely ratings of AA for separate
London and Retail debt programmes, in line with current Group arrangements
* Timing on implementation to be guided by market conditions
Commenting on the results, Francis Salway, Chief Executive said:
"The market is demanding but we have performed well in relative terms this year
and our results show considerable success in terms of value preservation in the
face of a sharply falling market. As a result, we are well placed in our London
and Retail investment businesses, with moderate gearing levels, a well-timed
development programme and strong portfolios matched to occupiers' needs.
Trillium is in excellent health with stable long-term cashflows and a robust
pipeline of new opportunities across a number of growing sectors. I am
confident our businesses have the strength and scale to thrive.
"How occupiers respond to current economic conditions will prove key over the
next 12 months. We are alive to the challenges involved and we will concentrate
on competing hard in this environment while preparing for the next set of
opportunities.
In summary we are well placed in the short term and for the medium to longer
term, we have a plan for sustained value creation through demerger on which we
are steadily progressing our plans."
-Ends-
Notes to editors
Land Securities Group PLC
* Land Securities is the UK's leading Real Estate Investment Trust with a
national portfolio of commercial property worth almost £14bn. Our
investment portfolio has around 60 retail parks and shopping centres
including Birmingham's Bullring centre and Exeter's award-winning
Princesshay site.
* Half our portfolio is in London, where we own many landmark buildings such
as the Piccadilly Lights and Westminster City Hall and are developing some
of the capital's most innovative mixed-use schemes, such as Cardinal Place,
Victoria and New Street Square in Mid-town.
* Land Securities' multi billion pound development programme is transforming
regional city centres including Bristol, Cardiff, Glasgow and Leeds, key
sites in Central London and delivering long-term, large-scale regeneration
projects in the South East.
* Land Securities Trillium is the principal name in property outsourcing and
partnerships. We focus on understanding our customers' business and
property requirements and meeting them through excellent service and
innovation. We manage and provide services to numerous commercial
properties nationwide, for a growing number of companies and government
departments.
Land Securities will be holding a results presentation today at 9.00am (GMT)
and a live web-cast will be available at www.landsecurities.com/prelims2008
An interview with Francis Salway, Group Chief Executive, and Martin Greenslade,
Group Finance Director, is available at www.landsecurities.com/prelims2008
For further info, please contact:
Francis Salway / Donal McCabe John Sunnucks / David Allchurch
Land Securities Group PLC Tulchan Communications
T +44 (0)20 7413 9000 T +44 (0)20 7353 4200
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