St. Modwen Properties see FY in line

Regeneration specialist St. Modwen Properties said expectations for the full year remain unchanged after strong momentum across the entire group.

The group, which has increased its focus on the residential market, said its residential business is moving from strength to strength, with good sales rates and ongoing demand for its land.

The property developer, that owns the Elephant & Castle shopping centre in south east London and is leading the redevelopment of the New Covent Garden Market project, said it is experiencing good levels of demand for the land it sells and achieving price levels at or above book value.

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It continues to secure planning permissions across the UK.

Chief Executive Bill Oliver commented: "Our robust business model and our practical, hands-on approach to development and asset management have enabled us to perform consistently well throughout the year and build on the strong results produced in 2011."

We view the positive reaction to the retail bond as a clear endorsement of the attractions of our track record, our ability to generate development gains and our income producing portfolio, and are confident that we are well placed to continue our strong performance to the benefit of all our investors."

Meanwhile it reported 276 house sale completions in its first full year of housebuilding activity in the UK. Just over a 100 were with its Persimmon joint venture and 175 were St. Modwen Homes.

Net rental income for the year is expected to be ahead of the results achieved in 2011.

Year-end debt levels are expected to be in line with levels of May 31st.

CJ