Land Securities lifts interim profit and dividend

12th Nov 2013 07:07

- Net asset value rises 3.6 per cent- Lifts dividend payment 2.7 per cent- Remains a highly competitive market Real estate giant Land Securities posted improved revenue profit and net asset value (NAV) during the six months ended September 30th and said it is confident of delivering future progress.The UK's largest commercial property firm said basic NAV per share, a key measure of the group's portfolio of assets, rose to 994p in the period from 959p a year earlier, primarily driven by the increase in value of its investment properties and profits made on the disposal of properties. Revenue profit rose 8.9% to £156.5m while pre-tax profit rose to £397.9m from £131.4m previously. Net rental income increased to £163.9m from £133.4m, largely due to its development programme and acquisitions made in the second half, notably X-Leisure and The Printworks, Manchester.Land Securities said that sales of assets in the second half will lead to a slightly lower revenue profit compared with the first half of the year."We are maintaining our balance sheet discipline, basing our decisions on property fundamentals and remain confident in our strategy," said Chief Executive Robert Noel.On a more cautionary note, he added: "Although there is improvement in the UK economy, headwinds persist in retail property as we believe the consumer, with lower real income and faced with rising non-discretionary expenditure, will remain under pressure. With an increasing population and healthy demand in all sectors, we view London property as distinct, although not divorced, from the overall UK economy."The group has offered a dividend payment of 15.2p, up from 14.8p last time.The company also announced that Cressida Hogg and Edward Bonham Carter are to join the board as independent non-executive directors at the beginning of January. At the same time, Sir Stuart Rose will step down from the board.Hogg is the Managing Partner, Infrastructure, at 3i and Bonham Carter is the Group Chief Executive at Jupiter Fund Management.CJ