Land Securities enjoys London leasing momentum

17th Jul 2014 07:56

- Good momentum in development lettings- 385,000 of space let in Q1- Interim dividend of 7.9p per shareLand Securities claimed a strong start to the year, with strong leasing momentum in office buildings and a continuing shift in retail property portfolio towards "dominance, experience and convenience".With the balance sheet looking strong, with adjusted net debt of £4.66bn and group loan-to-value up to 36.2% from 32.5% three months before, the board declared an interim dividend of 7.9p per share.The portfolio reshaping in retail, which has seen the sale of The Bridges in Sunderland for £152m and the acquisition of a 30% stake in Kent's Bluewater for £696m, will continue as management focuses on "the best retail assets", with new retail centres being developed in Oxford and Glasgow.The company provided an update on momentum on developments, with 385,000 square feet of office and retail deals agreed in the first quarter, as it looks to deliver 1.6m sq ft of space into a market where supply is constrained."Land Securities has had a strong start to the year, continuing to execute its strategy at pace across the business," said Chief Executive Robert Noel. In the City of London he pointed to the new scheme at 1 & 2 New Ludgate, near St Paul's cathedral, which was now 61% pre-let nine months ahead of completion and the developments near Victoria station that are "transforming the area into a vibrant West End destination".Occupancy levels of the portfolio were steady, with voids in the like-for-like portfolio up slightly to 2.4% from 2.2% at the year end, and retailer sales up 4.4% quarter-on-quarter on a like-for-like basis. Investment lettings of £4.2m have been signed in the quarter, with a further £10.4m in solicitors' hands.OH