Land Secs sees 'good momentum'

published 18 July 2012

Land Securities, the FTSE 100 real estate investment trust, says it has seen 'good momentum' on lettings across all schemes in the first quarter.

The group invested £148.2m in the quarter, including capital expenditure on developments of £59.5m. Some £9.3m of development lettings were signed since April 1st.

In its London portfolio, £5.8m of development lettings were signed with a further£2.4m in solicitors' hands. Shopping and office site One New Change is now 94% let, 20 Fenchurch Street offices are 19% pre-let or in solicitors' hands, while 123 Victoria Street retail spaces are fully let and offices there are 42% pre-let.

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In the Retail portfolio, £3.5m of development lettings were signed with a further£2.3m in solicitors' hands. Trinity Leeds shopping centre is now 72% pre-let (up from 65% in March) with a further 8% in solicitors' hands, while 185-211 Buchanan Street in Glasgow remains 92% let.

"Our focus continues to be to secure income from our developments. We are pleased with progress and continue to see interest from occupiers, despite ongoing uncertain economic news flow. While transactions are taking longer, occupier interest and intent remains firm as businesses seek out efficient space for their future needs," said Chief Executive Robert Noel.

"We remain confident that the development pipeline offers exceptional opportunity to deliver growth while our active asset management and strong financial base underpin our activities."

Adjusted net debt was £4,040.2m at June 30th, up from £3,981.4m three months before. The first interim dividend payment for the current financial year will be 7.4p per share.

Shares were down 1.22% at 771.5p in early trading on Wednesday.