REG - Land Sec. Group PLC - Q3 Interim Management Statement <Origin Href="QuoteRef">LAND.L</Origin>

Land SecuritiesAnnouncement

28/01/2015 01:53

RNS Number : 6862C
Land Securities Group PLC
21 January 2015
21 January 2015
Land Securities Group PLC ("Land Securities" / "the Group" / "the Company")
Third Quarter Interim Management Statement
Robert Noel Chief Executive said:
"Our business and markets are in good shape. In London, rental values are rising due to a shortage of new commercial space just as we are delivering a major programme of office and retail space to the market. Interest in our developments is strong and on terms ahead of our valuers' most recent estimates. In Retail, we have completed the transformation of our shopping centre portfolio under our strategic focus of dominance, experience and convenience. Footfall is up and sales are up. Although there is political uncertainty at home and abroad, we expect interest in our schemes to remain strong, reflecting both the quality of our portfolio and the lack of supply in London."
Key Highlights:
Portfolio changes
 Sales of 701.6m during the quarter bringing the total to 886.4m for the nine months to 31 December
 Sales for the nine months to 31 December 15% ahead of March 2014 valuation
 Acquisitions of 234.6m during the quarter and 933.9m for the nine months to 31 December
 Development and refurbishment expenditure of 95.7m for the quarter and 316.1m for the nine months to 31 December
 Shopping centre transformation completed during the quarter:
- sale of Cabot Circus, Bristol for 267.8m;
- sale of The Centre and Almondvale West Retail Park, Livingston for 224.1m;
- sale of Princesshay, Exeter for 127.9m
- acquisition of remaining 50% interest in Buchanan Galleries, Glasgow for 137.5m
 Sale of Mark Lane, EC3 for 73.2m
 Acquisition of remaining 50% stake in Thomas More Square, E1 for 85.3m
Development momentum
 Of the 1.4 million sq ft remaining to be let in our committed programme, 87,000 sq ft is currently in solicitors' hands
 1 & 2 New Ludgate, EC4 on target for practical completion in April
 The Zig Zag Building and Kings Gate, both SW1 on target for practical completion in July
Strong occupancy
 10.9m of investment lettings signed in quarter, with a further 8.0m of lettings currently in solicitors' hands
 Voids in the like-for-like portfolio 2.7% (30 September 2.5%)
 Retail Portfolio like-for-like voids 2.7% (30 September 2.3%)
 London Portfolio like-for-like voids 2.7% (30 September 2.8%)
 Units in administration 0.5% (Retail Portfolio 1.0%, London Portfolio nil%) down from 0.6% at 30 September
 On a same store like-for-like basis, retailer sales were up 3.2% this quarter on the same quarter last year. On a total sales growth basis, retailer sales were up 3.8% over the same period
Strong balance sheet and growing dividend
 Adjusted net debt of 4,179m (30 September 4,623m)
 Group LTV on a proportionate basis at 31 December 2014, based on 30 September 2014 asset values, 31.4% compared with 33.6% at 30 September 2014
 Weighted average cost of debt 4.6%, average duration of 8.5years
 Third interim dividend of 7.9 pence per share. It will be paid on 10 April 2015, entirely as a Property Income Distribution (PID), to shareholders on the register at 13 March 2015.
- Ends -
A conference call for analysts is being held today at 08:30 GMT
Conference call details:
Dial-in number: +44 (0) 1452 541003
Call title: Land Securities Q3 IMS conference call
Call ID number: 55037614
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: 55037614
For further information, please contact:
Duncan Bonfield/Ed Thacker
Land Securities
Peter Hewer
Tulchan Communications
T +44 (0)20 7413 9000
T +44 (0)20 7353 4200
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.

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