REG - Land Sec. Group PLC - Q1 Interim Management Statement <Origin Href="QuoteRef">LAND.L</Origin>

Land SecuritiesAnnouncement

22/07/2015 07:01

RNS Number : 6988T
Land Securities Group PLC
22 July 2015
Land Securities Group PLC ("Land Securities")
First Quarter Interim Management Statement
"Following our strong annual results, Land Securities is maintaining good momentum and has started the year well," said Chief Executive Robert Noel. 
"In London take-up is healthy, vacancy rates are low, and rental values are rising. We have good interest in our well-timed schemes and of the 1.1m sq ft remaining to let in our speculative development programme at 31 March, 322,000 sq ft has been let or is in solicitors' hands. We remain confident in the prospects for the remaining space.
"In Retail, the transformation of our portfolio is continuing to pay off. By focusing on assets which offer customers an excellent experience, while either being dominant in their catchment or highly convenient, we have seen footfall up 2.5%, same store sales up 3.8% and same centre sales up 5.4% on the same quarter last year. The redevelopment of Westgate, Oxford is progressing to plan with good leasing interest in the scheme which is now 35.4% pre-let or in solicitors' hands two years before opening."
Key Highlights:
Portfolio changes during the quarter
 Disposals of 59.3m at 11% ahead of 31 March valuation
 Acquisitions of 25.1m
 Development and refurbishment expenditure of 98.1m
 Disposal of Times Square, EC4, an asset held for sale at its contracted sale price at 31 March, expected to complete this month
Progress on developments
 10.5m(1) of development lettings in London signed since 1 April with a further 7.0m(1) in solicitors' hands, representing a total of 322,000 sq ft
 62 Buckingham Gate, SW1: 87% let with a further 9% in solicitors' hands
 20 Fenchurch Street, EC3: 92% let with a further 6% in solicitors' hands
 1 & 2 New Ludgate, EC4: 87% let with a further 5% in solicitors' hands
 The Zig Zag Building, SW1: 37% pre-let
 Nova, SW1: 10% pre-let with a further 7% in solicitors' hands
 Westgate, Oxford: 31.1% pre-let with a further 4.3% in solicitors' hands
 Extension plans for Buchanan Galleries, Glasgow, delayed while the Edinburgh Glasgow Improvement Programme (EGIP) is delivered.
Operational metrics
 9.0m of investment lettings signed since 1 April, with a further 10.4m of lettings in solicitors' hands
 Voids in the like-for-like portfolio 2.9% (31 March 3.3%)
 Retail Portfolio like-for-like voids 2.2% (31 March 2.4%)
 London Portfolio like-for-like voids 3.8% (31 March 4.3%)
 Units in administration 0.4% (Retail Portfolio 0.8%, London Portfolio 0%) down from 0.5% at 31 March
 On a same store like-for-like basis, retailer sales were up 3.8% on the same quarter last year
 On a same centre basis, retailer sales were up 5.4% over the same period
 Footfall in our shopping centres was up 2.5% over the same period
Balance sheet and dividend
 Broadly net debt neutral approach continues
 Adjusted net debt as at 30 June of 4,192m (31 March 4,172m)
 Group LTV on a proportionate basis at 30 June, based on 31 March asset values, 28.5% (27.1% pro forma for sale of Times Square, EC4) compared with 28.5% at 31 March
 Weighted average cost of debt 4.3%, average duration of 8.1 years
 First interim dividend for the current financial year of 8.15 pence per share(2)
(1) Land Securities' proportionate share
(2) The first interim dividend will be paid on 9 October 2015 to shareholders on the register on 
 11 September 2015. The dividend will be paid entirely as a Property Income Distribution.
- Ends -
A brief conference call for Q&A is being held today at 08:30 BST
Conference call details: 
Dial-in number:+44 (0) 1452 541003
Call title: Land Securities Q1 IMS 
Call ID number: 73950646
A replay facility will be available four hours after completion of the call for seven days
Encore replay details: 
UK dial-in number: 08717000145
International dial in number: +44 (0)1452550000
Access number: 73950646

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