Hot on the heels from last week’s announcement from British Land on their strong annual performance, another of the UK’s biggest commercial property companies has also reported a strong year.
Land Securities announced that its pre-tax profits had double in the 2014/15 financial year to £2,416.5m. Additionally, the company reported that its total annual business returns had risen to 30.7%.
Chief Executive of Land Securities Robert Noel was understandably delighted by the results. He commented that, ‘our programme has been sized and timed to deliver highly efficient and technically resilient office space into a supply-constrained market.’ As such, Noel believes that, ‘the success of the programme is increasingly evident. At 20 Fenchurch Street, the amazing Sky Garden opened to the public and the development is now 92% let.’
Additionally, Land Securities has pre-let all of another of its development sites at 1 New Street Square, more than a year ahead of its scheduled completion. With a further 1.1 million square feet of development scheduled, the company is well-placed to reap the rewards of the lack of supply currently evident in London.
In regards to retail, Land Securities plans to change its shopping centre portfolio, which includes the acclaimed Trinity Leeds. In addition, the company has taken full control of the Buchanan Galleries in Glasgow and a 30% stake in the Bluewater shopping centre in Kent.
Noel believes that his company is investing in a programme designed to increase future opportunities. He said that, ‘our strategy is delivering for our customers, our communities and our shareholders. Crucially, it is a strategy which recognises the cyclicality of the market we operate in, ensuring we build a sustainable business for the long term.’
Looking to the future, Noel is confident that Land Securities has, ‘a robust balance sheet,’ and have portfolios that are, ‘well-matched to customer demand.’