10th Nov 2015 07:48
LONDON (Alliance News) - Property developer Land Securities Group PLC on Tuesday said its total property return underperformed the market in the first half but said it had pushed up its interim dividend as its revenue profit increased.
The trust said its total business return for the half to the end of September was 7.0%, with an ungeared total property return of 5.9%, which underperformed the benchmark IPD Quarterly Universe return of 6.8%.
Pretax profit for the group fell to GBP707.9 million from GBP1.03 billion a year earlier, while revenue profit rose to GBP184.2 million from GBP170.0 million. The fall in pretax profit was down to its valuation surplus falling to GBP519.3 million in the half from GBP880.2 million the year earlier.
Revenue profit is an underlying measure which strips out valuation movements and any profits or losses on the sale of investment properties, along with any one-off items.
Net rental income for the company ticked up to GBP304.8 million from GBP302.4 million, as gross rental income rose to GBP323.4 million from GBP321.3 million.
Land Securities said it will pay an interim dividend of 16.3 pence per share, up from 15.8p a year earlier.
"Our strategy is working and we are well positioned for the future. We have better assets, with higher quality income, and our balance sheet is stronger than ever. We are delivering for our customers, our communities and our shareholders and look forward to the second half of the year with confidence," said Chief Executive Robert Noel.
In a separate statement on Tuesday, Land Securities also said it has pre-let 92,000 square feet at the Zig Zag Building in Victoria in London to Deutsche Bank on a 15-year lease.
By Sam Unsted; [email protected]; @SamUAtAlliance
Copyright 2015 Alliance News Limited. All Rights Reserved.
Related Shares:
Land Securities