Property group Land Securities (LON:LAND) has released its half-yearly results for the six months ended 30 September 2015.
Highlights from the company's statement:
Activity: £17.2m of development lettings; £17.0m of investment lettings; Acquisitions, development and refurbishment expenditure (including trading properties) of £317.3m; Disposals (including trading properties) of £406.5m; Supported 85 disadvantaged people into sustainable jobs in the communities where we operate through our Community Employment Programme
Results: Ungeared total property return 5.9%, underperforming the IPD Quarterly Universe at 6.8%; Total business return (dividends and adjusted diluted NAV growth) of 7.0%; Combined Portfolio valued at £14.6bn, with a valuation surplus of 3.8%; Valuation surplus of properties in the development programme of 6.8%; Revenue profit £184.2m, up 8.4%; Voids in the like-for-like portfolio remain low at 2.8% (31 March 2015: 3.2%)
Financials: Group LTV ratio at 26.5%, based on adjusted net debt of £4.0bn; Weighted average maturity of debt at 8.3 years; Weighted average cost of debt at 4.6%; Cash and available facilities of £1.4bn; First half dividend of 16.3p, up 3.2%
Development: 1.4m sq ft being delivered in London over the next 12 months; 0.8m sq ft Westgate, Oxford, due to open in October 2017; 1.4m sq ft of retail development and extension opportunities including Ealing Filmworks, Selly Oak, Birmingham, Buchanan Galleries, Glasgow, and White Rose, Leeds; 1.2m sq ft future London pipeline including 21 Moorfields, EC2, Nova East, SW1, 1 Sherwood Street, W1 and Portland House, SW1
Chief Executive Robert Noel said: "Land Securities continues to deliver the right space at the right time, and it's paying off. Our Retail Portfolio is performing well and leasing levels in our London developments remain strong."
"In Retail, our portfolio is focused around our core themes of dominance, experience and convenience. Since the start of the financial year, we have sold selectively, recycling capital into the redevelopment of Westgate, Oxford, and other development opportunities. Operationally we are strong, with retailer sales and footfall up in our shopping centres and voids down.
"In London, we continue to benefit from our well-timed development programme delivering schemes into today's supply constrained market. So far this financial year, a further 500,000 sq ft has been let or is in solicitors' hands. We're focused on completing and letting up the remainder of our committed projects while progressing a future pipeline.
"Our strategy is working and we are well positioned for the future. We have better assets, with higher quality income, and our balance sheet is stronger than ever. We are delivering for our customers, our communities and our shareholders and look forward to the second half of the year with confidence."