Land Securities, the UK’s largest commercial property company, reports that it is maintaining the good momentum that led to strong annual results.
In an interim statement released today, the company reveals that it has let around a third of the available space in its development pipeline in the first quarter of the year, helped by healthy take-up in London and the transformation of its retail portfolio.
This is highlighted by the news that 20 Fenchurch Street, the City skyscraper popularly known as the Walkie Talkie, is now 92 per cent let with a further 6 per cent in solicitors’ hands. In addition there is healthy early interest in Land Securities’ Westgate Oxford development which isn’t scheduled to open until 2017.
The company invested £25.1 million in acquisitions during the first quarter, and completed £59.3 million worth of disposals -11 per cent ahead of the 31 March valuation – with the disposal of Times Square EC4 expected to be completed this month. Development and refurbishment expenditure totalled £98.1 million.
The overall vacancy rate in the like-for-like- portfolio stands at 2.9 per cent, down from the 3.3 per cent reported as at 31 March. London portfolio like-for-like voids have fallen from 4.3 per cent to 3.8 per cent, while retail portfolio voids are down from 2.4 per cent to 2.2 per cent.
Chief Executive Robert Noel is confident that Land Securities can continue to build on the momentum of the good start to the year. “In London take-up is healthy, vacancy rates are low, and rental values are rising,” he said.
“We have good interest in our well-timed schemes and of the 1.1 million sq ft remaining to let in our speculative development programme at 31 March, 322,000 sq ft has been let or is in solicitors’ hands. We remain confident in the prospects for the remaining space.
“In Retail, the transformation of our portfolio is continuing to pay off. By focusing on assets which offer customers an excellent experience, while either being dominant in their catchment or highly convenient, we have seen footfall up 2.5 per cent. Same store sales up 3.8 per cent and same centre sales up 5.4 per cent on the same quarter last year.
“The redevelopment of Westgate, Oxford is progressing to plan with good leasing interest in the scheme which is now 35.4 per cent pre-let or in solicitors’ hands two years before opening.”
Land Securities’ first interim dividend for the current financial year is 8.15 pence per share which will be paid on 9 October 2015.
