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LAND - Land Securities News Story

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Market Cap £4.04bn
Enterprise Value £8.02bn
Revenue £741.0m
Position in Universe 168th / 1827

Land Sec. Group PLC - First quarter Interim Management Statement

Thu 17th July, 2014 7:00am
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RNS Number : 5487M
Land Securities Group PLC
17 July 2014 
Land Securities Group PLC ("Land Securities" / "the Group" / "the Company") 
First Quarter Interim Management Statement 
"Land Securities has had a strong start to the year, continuing to execute its
strategy at pace across the business. 
"In Retail, the strategic shift of our portfolio towards dominance, experience
and convenience continues with the disposal of The Bridges, Sunderland and the
acquisition of Bluewater, Kent. We will continue to sell assets which don't
meet our criteria as we focus on the best retail assets, including the
development of new retail centres in key locations such as Oxford and
"In London, where we are delivering 1.6 million sq ft(1) of office and retail
space into a supply constrained market, our leasing momentum continues with
385,000 sq ft of deals agreed. In the City, following our leasing success at
20 Fenchurch Street, EC3, our scheme at 1 & 2 New Ludgate, EC4 is now 61%
pre-let nine months ahead of completion. In Victoria, our developments are
transforming the area into a vibrant West End destination," said Chief
Executive Robert Noel. 
Key Highlights: 
Portfolio reshaping accelerates 
·      Disposal of The Bridges, Sunderland for £152m 
·      Acquisition of 30% stake in Bluewater, Kent, full management rights for
the centre and 110 acres of surrounding land for £696m 
Momentum on developments 
·      £15.4m(2) of development lettings in London signed since 1 April 2014
with a further £6.7m(2)in solicitors' hands, representing a total of 385,000
sq ft 
·      62 Buckingham Gate, SW1 65% let with a further 4% in solicitors' hands 
·      20 Fenchurch Street, EC3 87% let with a further 3% in solicitors'
·      1 & 2 New Ludgate, EC4 61% pre-let 
·      The Zig Zag Building, SW1 7% pre-let with a further 28% in solicitors'
·      Good progress at potential developments 
·      John Lewis, Next, Primark and Curzon Cinemas have committed to space at
Westgate, Oxford 
·      M&S, Next and Showcase Cinema de Lux have committed to space at
Buchanan Galleries in Glasgow, joining John Lewis 
·      Picturehouse Cinemas has committed to space at Ealing Filmworks 
Good occupancy 
·      £4.2m of investment lettings signed since 1 April 2014, with a further
£10.4m of lettings in solicitors' hands 
·      Voids in the like-for-like portfolio 2.4% (31 March 2.2%) 
·      Retail Portfolio like-for-like voids 2.9% (31 March 2.6%) 
·      London Portfolio like-for-like voids 1.7% (31 March 1.7%) 
·      Units in administration 0.5% (Retail Portfolio 0.9%, London Portfolio
0%) up from 0.4% at 31 March 
·      On a same store like-for-like basis, retailer sales were up 4.1% this
quarter on the same quarter last year. On a total sales growth basis, retailer
sales were up 4.0% over the same period 
Strong balance sheet and growing dividend 
·      Broadly net debt neutral approach continues 
·      Adjusted net debt as at 30 June 2014 of £4,657.7m 
·      Group LTV on a proportionate basis at 30 June 2014, based on 31 March
2014 asset values, 36.2% (35.3% proforma for sale of Sunderland) compared with
32.5% at 31 March 2014 
·      Weighted average cost of debt 4.5%, average duration of 8.1 years 
·      First interim dividend for the current financial year of 7.9 pence per
(1)   1.3 million sq ft if joint ventures are treated as 50%. Completed
developments, including 20 Fenchurch Street, EC3, are excluded from this
(2)   Land Securities' proportionate share 
(3)   The first interim dividend will be paid on 10 October 2014 to
shareholders on the register on 12 September 2014. The dividend will be paid
entirely as a Property Income Distribution 
- Ends - 
A conference call for analysts is being held today at 08:30 BST 
Conference call details: 
Dial-in number: +44 (0) 1452 555566 
Call title: Land Securities Q1 IMS conference call 
Conference ID: 64735553 
A replay facility will be available to listen to four hours after the
completion of the call for a period of 7 days. 
Encore Replay details: 
UK dial-in number: 08717000145 
International dial in number: +44 (0)1452550000 
Access number: 64735553# 
For further information, please contact: 
 Press                            Investors              
 Duncan Bonfield / Molly Neal     Ed Thacker             
 Land Securities                  Land Securities        
 T +44 (0)20 7024 5463/5460       T +44 (0)20 7024 5185  
T +44 (0)20 7024 5463/5460 
T +44 (0)20 7024 5185 
Forward-looking statements 
This document may contain certain `forward-looking statements`. By their
nature, forward-looking statements involve risk and uncertainty because they
relate to future events and circumstances. Actual outcomes and results may
differ materially from any outcomes or results expressed or implied by such
forward-looking statements.
Any forward-looking statements made by or on behalf of Land Securities speak
only as of the date they are made and no representation or warranty is given
in relation to them, including as to their completeness or accuracy or the
basis on which they were prepared. Land Securities does not undertake to
update forward-looking statements to reflect any changes in Land Securities`
expectations with regard thereto or any changes in events, conditions or
circumstances on which any such statement is based. Information contained in
this document relating to the Company or its share price, or the yield on its
shares, should not be relied upon as an indicator of future performance. 
This information is provided by RNS
The company news service from the London Stock Exchange
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