Media & Insights

Annual results for the year ended 31 March 2016

17 May 2016

“We are pleased to report a strong performance for the year. Revenue profit and net asset value per share are up, lease terms are longer and, as planned, speculative development exposure and net debt are lower. Continued leasing momentum in our development programme combined with smart asset management and balance sheet discipline has put the business in a strong position. Our confidence is demonstrated by a proposed 9.9% increase to the dividend,” said Chief Executive Robert Noel.

“In London, we continued to lease up our well timed and well executed speculative development programme with over 0.5m sq ft of new lettings and made progress on our future pipeline with 0.9m sq ft of planning consents. We also took advantage of the strong market conditions during the year to sell some assets.

“In Retail, we have sold selectively. Our operational focus is delivering results, with voids down and both footfall and same store retailer sales up in contrast to national benchmarks. Our development at Westgate Oxford looks very promising with a healthy level of retailer support and is almost 50% pre-let 18 months ahead of opening.

“Our strategy is delivering value for our shareholders, great space for our customers and positive change for our communities. We have a strong balance sheet with better assets and longer income streams. Despite the current political and economic uncertainty, Land Securities is well placed.”

Results summary

  31 March 16 31 March 15 Change
Valuation surplus(1) £907.4m £2,036.9m Up 7.0%(2)
Basic NAV per share 1,482p 1,343p Up 10.3%
Adjusted diluted NAV per share(3) 1,434p 1,293p Up 10.9%
Group LTV ratio(1) 22.00% 28.50%  
Profit before tax £1,335.6m £2,416.5m  
Revenue profit(1) £362.1m £329.1m Up 10.0%
Basic EPS 169.4p 306.1p  
Adjusted diluted EPS(1) 45.7p 41.5p Up 10.1%
Dividend 35.0p 31.85p Up 9.9%

1. Including our proportionate share of subsidiaries and joint ventures, as explained in the notes to the financial statements included within the Annual Report. 2. The % change for the valuation surplus represents the increase in value of the Combined Portfolio over the year, adjusted for net investment 3. Our key valuation measure.


  • £37.6m of investment lettings
  • £33.8m of development lettings
  • Acquisitions, development and refurbishment expenditure of £496.0m
  • Disposals of £1,493.1m
  • Supported a further 196 people from disadvantaged backgrounds into jobs through our Community Employment Programme


  • Ungeared total property return 11.5% (IPD Quarterly Universe 11.3%)
  • Total business return(1) of 13.4%
  • Combined Portfolio valued at £14.5bn, with a valuation surplus of 7.0%
  • Disposals(2) completed at a surplus of 9.1% to book value
  • Voids in the like-for-like portfolio 2.3% (31 March 2015: 2.6%)


  • Group LTV ratio at 22.0%, based on adjusted net debt of £3.2bn
  • Weighted average maturity of debt at 9.6 years
  • Weighted average cost of debt at 4.9%
  • Cash and available facilities of £1.5bn
  • Final dividend recommended at 10.55p, bringing the dividend for the year to 35.0p, up 9.9%


  • 1.0m sq ft being delivered in London in the next financial year, now 62% pre-let or in solicitors’ hands
  • 0.8m sq ft Westgate Oxford, due to open in October 2017, now 51% pre-let or in solicitors’ hands
  • 0.8m sq ft of retail opportunities including a retail park at Selly Oak, Birmingham; a leisure extension at White Rose, Leeds; and the conversion of the Glow exhibition space at Bluewater, Kent to provide additional leisure and catering units
  • 1.2m sq ft future London pipeline including 21 Moorfields, EC2; Nova East, SW1; 1 Sherwood Street, W1; and Southwark Street, SE1


  • Winner of the 2015 Business in the Community Work Inclusion Award
  • Maintained EPRA gold status for sustainability reporting, membership of FTSE4Good and the DOW Jones Sustainability Index
  • Achieved ISO 50001 certification for energy management
  • Re-certification of ISO14001 for environmental management
  • Shortlisted for 2016 Better Society Awards for National Commitment to the Community

1. Dividend paid per share, plus the change in adjusted diluted net asset value per share, divided by the adjusted diluted net asset value per share at the beginning of the year. 2. Excludes trading properties and Times Square, EC4, an asset the Group held for sale at the contracted price of £284.6m at 31 March 2015. All measures above are presented on a proportionate basis, as explained in the notes to the financial statements included within the Annual Report.