# Land Securities Group PLC Increased focus on London with a growing development pipeline - Link: https://www.directorstalkinterviews.com/land-securities-group-plc-increased-focus-on-london-with-a-growing-development-pipeline/412774860 - Published: 2019-05-14T07:41:48+01:00 - Author: Charlotte Edwards **[Land Securities Group PLC](https://www.directorstalkinterviews.com/ftse-company/land-securities-group/land.l)**( LON:LAND), today announced annual results for the year ended 31 March 2019 > **Chief Executive Robert Noel said:** > “We’ve had a strong year operationally, maintaining high occupancy, expanding > our development pipeline and delivering new products and services, including our > Myo flexible offer. This is against the backdrop of political gridlock and the > well-publicised difficulties in the retail market. > The actions we took both this year and last have delivered an increase in revenue > profit of 8.9% to £442m. Adjusted diluted earnings per share were up 12.4% to > 59.7p. Weaker retail markets account for an overall 4.1% fall in the value of > our assets and a 4.6% reduction in EPRA net assets per share to 1,339p. > Our business continues to evolve. 65% of our assets by value and our entire £3.0bn > pipeline of development opportunities are now in London and over the coming years > the business will be more concentrated in the capital. Outside London, we’ll continue > to reduce our exposure, maintaining our focus on experience-led destinations. > Landsec is in a healthy financial position. We have a clear sense of where current > and future opportunities lie and are well placed to address our customers’ changing > needs, and deliver sustained value creation for our shareholders. This is an exciting > time for real estate companies with the insight and capabilities needed to create > the spaces for tomorrow’s businesses and communities.” **Results summary** | | 31 March 2019 | 31 March 2018(1) | Change | | Revenue profit(2)(3) | £442m | £406m | Up 8.9% | | Valuation deficit(2)(3) | £(557)m | £(91)m | Down 4.1%(4) | | Loss before tax | £(123)m | £(43)m | | | Basic loss per share | (16.1)p | (5.8)p | | | Adjusted diluted earnings per share(2)(3) | 59.7p | 53.1p | Up 12.4% | | Dividend per share | 45.55p | 44.2p | Up 3.1% | | Net assets per share | 1,341p | 1,404p | Down 4.5% | | EPRA net assets per share(2) | 1,339p | 1,403p | Down 4.6% | | Group LTV ratio(2)(3) | 27.1% | 25.8% | | **Robust operational performance** – Revenue profit(2)(3) up 8.9% to £442m with net rental income up and costs down – Loss(1) for the year of £119m (2018: £(44)m) – Adjusted diluted earnings per share(2)(3) up 12.4% to 59.7p – Full year dividend up 3.1% to 45.55p – Combined Portfolio(2)(3) valued at £13.8bn, with a valuation deficit(2)(3) of £557m or 4.1%(4) impacted by weak retail markets – EPRA net assets per share(2) down 4.6% to 1,339p – Like-for-like net rental income up £10m or 1.9% – London Portfolio up £20m or 7.9% – Retail Portfolio down £10m or 3.6% – Maintaining low like-for-like voids(5) at 2.7% (31 March 2018: 2.3%) – Ungeared total property return(5) 0.4% – London Portfolio 3.5% (MSCI Quarterly Universe 4.8%) – Retail Portfolio (3.4)% (MSCI Quarterly Universe (6.8)%) – Total business return(2) (1.2)% **Healthy financial position** – Group LTV ratio(2)(3) at 27.1% (31 March 2018: 25.8%) – Adjusted net debt(2)(3) of £3.7bn (31 March 2018: £3.7bn) – Weighted average cost of debt at 2.7% (31 March 2018: 2.6%) – Weighted average maturity of debt at 12.3 years (31 March 2018: 13.1 years) – Cash and available facilities(3) of £1.6bn **Increasing development pipeline** – London development opportunities increased to 3.6 million sq ft with an estimated total development cost of £3.0bn – Good progress on site at 21 Moorfields, EC2, with Deutsche Bank confirmed for the whole building – One Sherwood St, W1 under way, enabling works commenced at Nova East, SW1 with 105 Sumner St, SE1 starting later in the year – 1.6 acre site at 25 Lavington Street, SE1 acquired during the year – Planning applications being prepared for Portland House, SW1; Red Lion Court, SE1; Finchley Road, NW3; and Shepherd’s Bush, W12 – Master planning of Lewisham town centre, SE13 under way **[Sustainability](https://www.directorstalkinterviews.com/sustainability-green-stocks-news) leadership** – Achieved a 39.8% reduction in carbon intensity and an 18.2% reduction in energy intensity compared with 2014 baseline – CDP A-list ranking for carbon performance and climate disclosure, UK sector leader for both the Global Real Estate Sustainability Benchmark (GRESB) and the Dow Jones Sustainability Index. – Winner of the 2019 edie Sustainability Leaders Award for the Built Environment – Signatory to the UN Global Compact, publicly committing to deliver on universal sustainability principles of human rights, ethical labour, environment and anti- corruption Share on: