23 January 2013
Land Securities Group PLC
THIRD QUARTER INTERIM MANAGEMENT STATEMENT
Land Securities continues to make good progress with further development lettings and a strong operational performance across the investment portfolio.
Key Highlights:
Sustained momentum on development lettings
£10.8m of development lettings signed since 1 October 2012
London Portfolio - £5.8m of development lettings with a further £8.6m in solicitors' hands
One New Change, EC4 - offices now fully let
20 Fenchurch Street, EC3 - 52% pre-let or in solicitors' hands
123 Victoria Street, SW1 - 77% let or in solicitors' hands
62 Buckingham Gate, SW1, 10% in solicitors' hands
Retail Portfolio - £5.0m of development lettings with a further £1.4m in solicitors' hands
Trinity Leeds now 90% pre-let or in solicitors' hands
185-221 Buchanan Street, Glasgow 99% pre-let
Operational excellence
£9.2m of investment lettings in total with a further £7.8m of lettings in solicitors' hands
Voids in the like-for-like portfolio up at 2.9% at 31 December 2012 (2.6% at 30 September 2012) due to the vacating of 1 New Street Square, EC4, a pre-development property
The void level includes units let on a temporary basis at 0.8% with a further 0.6% in solicitors' hands
Excluding 1 New Street Square, EC4, voids were down at 2.5%
Retail Portfolio voids up marginally at 3.2% (3.1% at 30 September 2012). Within this figure, units let on a temporary basis represented 1.5% with a further 0.4% in solicitors' hands.
London Portfolio voids up at 2.4% (2.0% at 30 September 2012). Excluding 1 New Street Square, EC4, the London Portfolio void level was down at 1.5%
Units in administration in the like-for-like portfolio down at 0.8% at 31 December 2012 (1.0% at 30 September 2012)
Retail Portfolio units in administration were marginally down at 1.5% (1.8% at 30 September 2012) with 22% of this still trading. (Including Jessops, HMV and Blockbuster, units in administration are 2.2% with 45% of this still trading)
London Portfolio units in administration flat at 0.1%
Overall occupancy rate for the Retail Portfolio is 97.1%
Total investment in the quarter of £248.1m, including capital expenditure on developments of £76.8m
Acquisitions since 1 October 2012 totalled £140.8m at an average yield of 4.7%
One investment property disposal in the period for £17.5m
Strong balance sheet
Group LTV including joint ventures at 31 December 2012, based on 30 September 2012 asset values, was 36.4% (36.2% at 30 September 2012)
Commenting on the performance over the quarter, Land Securities' Chief Executive Robert Noel said:
"This was a good quarter with continued momentum in development lettings and a strong operational performance across our investment portfolio. Encouragingly, interest levels in both our London and Retail portfolios remain high.
"In London, we now have over 50% of 20 Fenchurch Street, EC3, either pre-let or in solicitors' hands with the latest addition, Royal Sun Alliance, securing four floors. Trinity Leeds is now 90% pre-let or in solicitors' hands ahead of its opening in March - a good result in a difficult market.
"There remains a high level of activity across our investment portfolio and we have continued to manage space effectively with voids largely unchanged. Both our portfolios are well positioned for what remain challenging wider economic conditions.
"With our disciplined approach, we remain focused on our clear plan to invest in and develop the right space in the right place at the right time, utilising the strength of our balance sheet. We have good levels of interest in all our schemes and we are confident that our strategy will continue to deliver growth for shareholders."
