Land Securities (LSE: LAND) is up almost 2.5% so far today, following publication of its preliminary annual results for the year to 31 March 2015 in which it announceda pre-tax profit of 2,416.5m an increase of 118% over the previous years 1,108.9m and a total business return of 30.7%.
The company, which is the largest commercial property company in the UK, has reported record leasing levels across itsdevelopment programme in London, with its20 Fenchurch Street nicknamed The Walkie-Talkie development now 92% let, and1 New Street Square pre-letin its entirety to Deloitte LLP.
Land Securities says that it has transformed its portfolio of shopping centres, focusing on assets that fit in with its current strategy of dominance, experience and convenience and disposing of just over 1bn worth of ones that do not. As part of its portfolio transformation, the company hasacquired a 30% managing stakein the Bluewater shopping centre in Kent, and hastaken full ownership of Buchanan Galleries in Glasgow, as part of951.4m of acquisitions during the year.
The total value of Land Securities combined portfolio now stands at 14bn, with a valuation surplus of 17.3% overall and 38.7% for properties in itsdevelopment programme.
The company says that it will deliver1.5m square feet of development over the next 18 months, and that it currently has1.8m square feet of retail development opportunities, including Westgate in Oxford, an extension to Buchanan Galleries in Glasgow, and Ealing Filmworks.
Commenting on the results, CEO Robert Noel said:
Our strategy is delivering for our customers, our communities and our shareholders. Crucially, it is a strategy which recognises the cyclicality of the markets we operate in, ensuring we build a sustainable business for the long term. Looking ahead, we have a robust balance sheet and are confident our portfolios are well matched to customer demand.
At 1,3473p, the share price ofLand Securities is up just over 16% so far this year, leaving the FTSE 100 trailing with a rise of 6.5%. And the longer-term story is similar, withLand Securities share price showing a 120% gain, trouncing the 33% increase in the FTSE 100 index.
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