Progress update

Our performance

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How we delivered value for shareholders

The key metrics shown here are the main drivers of our most important indicator of progress - total return - which can be seen in the "Highlights" below.

Revenue profit
Revenue profit is our measure of the underlying pre-tax profit of the Company. It increased by 9.0% to £299.4m compared to £274.7m last year. This increase was reflected in our adjusted diluted earnings per share which increased from 35.5p last year to 38.5p.

Dividends
We aim to deliver a progressive dividend. We are recommending a final dividend payment of 7.4p, taking the total dividend for the year to 29.0p, up 2.8%.

Key Metrics

How we performed

The two total return metrics to the right provide shareholders with the clearest guide to the Company's progress in financial terms. Our Total Shareholder Return for the year was 0.7% and our Total Business Return was 7.9%.

Highlights

£515.7m

Profit before tax
(including valuation surplus)

+0.7%

Total Shareholder Return

+7.9%

Total Business Return

How we compare

Our Total Shareholder Return in the year of 0.7% compared to a return of 4.0% for the FTSE 100 and -3.2% for the FTSE 350 Real Estate Index. At the property level, our ungeared total return of 7.7% equates to 1.3% relative outperformance versus the IPD Quarterly Universe in the year.

Investment portfolio performance relative to ipd ungeared total return (12 months ended 31 March 2012)

TOTAL SHAREHOLDER RETURNS*

  Over one year to
31 March 2012
(£)
Land Securities 100.68
FTSE 100 104.04
FTSE 350 Real Estate 96.76

* Historical TSR performance for a hypothetical investment of £100.
Source: Datastream.

Retail Portfolio performance

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Highlights

  • Valuation deficit of 0.1%
  • £281.9m of sales — 5.6% ahead of March 2011 valuation
  • £14.6m of investment lettings — 2.1% above ERV, excluding turnover lettings
  • Like-for-like voids down from 4.3% to 3.6% but units in administration up from 0.6% to 2.2%
  • Trinity Leeds on plan; pre-lettings at 65.4%, with 6.6% in solicitors' hands
  • 185-221 Buchanan Street, Glasgow, ahead of plan; pre-lettings at 91.8%
  • 43,800m2 of out-of-town/edge-of-town planning consents and resolutions to grant achieved
Retail Portfolio

Valuation deficit

0.1%

Property sales, 5.6% ahead of March 2011 valuation

£281.9m

Lettings in the period

£14.6m

Top 3 Properties

White Rose

1 – White Rose
Leeds

Gunwharf Quays

2 – Gunwharf Quays
Portsmouth

Cabot Circus

3 – Cabot Circus
Bristol

Go to Retail Portfolio Highlights

London Portfolio performance

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Highlights

  • Valuation surplus of 3.9%
  • £623.8m of sales — 3.8% ahead of March 2011 valuation
  • £24.5m of investment lettings — 12.2% ahead of ERV
  • Like-for-like voids down from 3.8% to 2.5%
  • Longer weighted average unexpired lease term on the like-for-like portfolio, completed developments and acquisitions of 9.9 years (31 March 2011: 8.9 years)
  • 20 Fenchurch Street, EC3 development committed (in partnership with Canary Wharf Group)
  • Planning permission received at 1 & 2 New Ludgate, EC4, Kingsgate House, SW1 and 1 New Street Square, EC4
  • Joint venture partnership formed at Victoria Circle, SW1 with Canada Pension Plan Investment Board
London Portfolio

Valuation surplus

3.9%

Lettings in the period

£24.5m

Property sales, 3.8% ahead of March 2011 valuation

£623.8m

Top 3 Properties

Cardinal Place

1 – Cardinal Place
SW1

New Street Square

2 – New Street Square
EC4

One New Change

3 – One New Change
EC4

Go to London Portfolio Highlights

Our strategy, vision, values and management

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Our strategy is to provide an attractive total return for our shareholders by being at the forefront of meeting the space requirements of our customers.

Our focus on the UK commercial property market's two largest sectors gives us a broad range of opportunities and a high-quality tenant base.

We make use of our strong relationships with occupiers and specialist expertise. We have a clear plan for every asset and allocate capital to exploit our skills and opportunities through the cycle. In property investment, we add value through active management of assets and the timing of acquisitions and disposals. In development, we create value by delivering the right product at the right point in the cycle while keeping a tight focus on cost and timing.

Our management

From the left: Martin Greenslade (Chief Financial Officer), Robert Noel (Chief Executive) and Richard Akers (Executive Director).

Our Values

Our Values

Our market

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We are focused on the two largest segments of the UK commercial property market – retail and London offices.

These markets are cyclical and respond to macro-economic trends. They are also affected by specific national and local influences such as planning, employment and general business activity.

Combined Portfolio Value

Combined Portfolio Pie Chart

Retail

Retail

We own, manage and develop shopping centres and retail parks across the UK. Our assets are in locations that have either a proven record of trading success or potential for future success. For more information on the retail market please see our Retail Portfolio highlights.

London

St Paul London

We own, manage and develop a portfolio of office, retail and residential space in the capital. Our assets are concentrated in central London, from Victoria in the west to the City in the east. For more information on the London market please see our London Portfolio highlights.

Our top properties

Cardinal Place

1 – Cardinal Place
SW1

New Street Square

2 – New Street Square
EC4

One New Change

3 – One New Change
EC4

Queen Anne’s Gate

4 – Queen Anne’s Gate
SW1

White Rose

5 – White Rose
Leeds

Gunwharf Quays

6 – Gunwharf Quays
Portsmouth

Bankside 2&3

7 – Bankside 2 & 3
SE1

Cabot Circus

8 – Cabot Circus
Bristol

Piccadilly Circus

9 – Piccadilly Circus
W1

St David’s

10 – St David’s
Cardiff

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Outlook

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The recovery in UK commercial property will continue to involve ripples, not straight-line growth.

We are well placed to create value through a range of conditions. Our strong balance sheet means we can make acquisitions and press ahead with developments at the appropriate time. In Retail, we will continue to invest in and refine our portfolio to ensure it meets the changing needs of successful retailers. In London, we are positioned to respond to the supply-constrained conditions we see ahead.

Group objectives for 2012/13

  • Outperform the FTSE 350 Real Estate Index on Total Shareholder Return
  • Outperform IPD Sector benchmark
  • Progress development lettings across the portfolio
  • Complete on time and to budget Trinity Leeds, Buchanan Street, Glasgow, 123 Victoria Street, SW1, and Wellington House, SW1
  • Maximise the returns from the investment portfolio

Development pipeline

123 Victoria Street

2012

123 Victoria Street, SW1
21,110m2 of refurbished office and retail space in a West End location. Fashion retailer Jimmy Choo has pre-let 3,440m2.

Trinity Leeds

2013

Trinity Leeds
Trinity Leeds is the only large scale UK retail shopping centre scheme due to be delivered in 2013.

185-221 Buchanan Street

2013

185-221 Buchanan Street, Glasgow
Work is on schedule and the retail component is due to open in March 2013.

62 Buckingham

2013

62 Buckingham Gate, SW1
Construction is well underway on the office accommodation and retail this development will bring to the heart of Victoria.

20 Fenchurch Street

2014

20 Fenchurch Street, EC3
Work with joint venture partner Canary Wharf Group is on schedule to deliver the building in spring 2014.