Land Securities reveals profit increase
Land Securities has announced its end of year financial results, revealing a 19.5% increase in its net asset value to 826p a share. A 14.8% before tax profit increase year on year was also revealed, while revenue profit was up by 9.1% to £274.7m and earnings per share were up 6.5% to 36.3p a share.
The group, which is the joint owner of St David’s shopping centre in Cardiff, reported a rise of 4.7% in rental values across like-for-like portfolios, together with a drop in like-for-like retail voids down to 4.9%, compared with 6.1% in March 2010. In addition, the number of units in administration was reduced to 0.4% from 1.8% year on year.
Across the board, the results from Land Securities reveal more than 331,000 sq m of opportunity in future developments, with planning consents obtained or planning applications submitted. Of this figure, almost 121,000 sq m of opportunity is in retail space, demonstrating the scope for continuing positive contribution from the Group across the retail sector.
St David’s, which is owned by St David’s Partnership, a joint venture between Land Securities and Capital Shopping Centres, was launched in October 2009. The centre has been a magnet for tourists to the Welsh capital, with visitor numbers rising by 25% from 2009- 2010 to reach 18.3 million, according to the latest STEAM survey. In addition, this rise in visitor footfall generated almost £852m for Cardiff’s economy in 2010, a 16.7% increase year on year.
With a total floor area of 1.4 million sq ft, St David’s occupancy level, based on income, stands at 84%. The report from Land Securities reveals an annualised net rent of £14.8m, with a weighted average unexpired lease term of nine years.
Steven Madeley, centre director for St David’s, said: “Since 2009 we have successfully opened a large number of new stores across the centre, introducing exclusive brands to St David’s and expanding the retail portfolio of the city. Retailers have been attracted to St David’s because of the opportunities available to them here and because of a demand from consumers, which remains evident despite the economic pressures which continue to be felt by many. It is because of the relationships that we have formed with retailers and the diverse retail portfolio that St David’s has built, that the centre has continued to perform well and to generate growth, contributing to the positive end of the year financial results released by Land Securities.
“Moving forward there are strong growth opportunities for the centre. We are continuing to liaise with a number of exciting brands that we look forward to welcoming in 2011 and 2012. Our aim is to continue to bring the biggest and newest stores to our customers and to respond to consumer demand by introducing the most highly sought after brands to the city.”
St David’s now has over 160 stores and has introduced many brands to Wales for the first time. Retailers known all over the world including the largest John Lewis outside of London, Marks & Spencer, LEGO, GAP and Calvin Klein have opened their doors to shoppers, helping to build what is arguably one of the strongest retail locations in the UK. In 2010, 36 million people visited St David’s, making it’s the busiest shopping centre in Wales and one of the top five centres in the UK.
24/05/11.
Investor Members
Gold Corporate Champions
Silver Corporate Champions
