Land Securities makes £1 billion profit

U.K. real estate investment trust Land Securities said in its interim report that its swung to a net profit of £1.09 billion ($1.61 billion) in the year ended March 31, from a loss of £5.19 billion a year earlier when it was hit by losses on the value of its investment properties. The company said its net asset value per share climbed 17.4% to 750 pence as commercial property valuations recovered from lows towards the end of the year.

Commenting on the results, Land Securities’ Chief Executive Francis Salway said:

“During the year we stood back and tested our strategy. The review reaffirmed our confidence in the opportunities we see in the two largest segments of the UK commercial property market, London offices and retail.

“We have an unrivalled pipeline of potential projects in our London Portfolio, with over 110,000 sq m of developments already underway and up to a further 400,000 sq m of development and refurbishment opportunities. In retail we have plans aligned to the ongoing evolution in the sector and, through a focus on leasing and delivering occupier led developments, we will drive growth in capital values.

“We maintain our view that property values will rise over the next five years but, with the likelihood of volatility in consumer spending and business investment, the path may not always be smooth. We see any ripples in the trajectory as being likely to offer attractive buying opportunities. We believe strongly that, in our balance sheet, the skills of our people and our plans for our portfolio, we have the platform to create long-term value for our shareholders.”