Land Securities Group Plc (LAND.L), a real estate investment trust, said Wednesday that its net asset value per share for the first half ended September 30, decreased by 2.7% from March 31, 2009, mainly due to valuation deficit as well as a cash payment to terminate interest-rate swaps. The company also said it is confident that property values will rise over the next five years from the low point in July 2009. As at September 30, net assets per share decreased by 2.7% to 622 pence from 639 pence at the end of March 2009. Adjusted net assets per share at the end of the period were 565 pence, down 4.7%, from 593 pence over the same period. According to the company, the change was largely attributable to the valuation deficit and also to a GBP 74.5 million cash payment to terminate interest-rate swaps. The U.K.- based company's loss before tax for the half year narrowed to GBP 4.6 million from GBP 1.62 billion in the previous year, due to a significantly lower valuation deficit on the investment portfolio. Revenue profit, the company's measure of underlying profit before tax, reduced by 15.4% to GBP 128.4 million from GBP 151.8 million last year, mainly as a result of lower rental income due to the sale of properties. Profit for the period attributable to owners of the parent was GBP 11.9 million, compared to a loss of GBP 1.72 billion in the same period last year. Earnings per share were 1.58 pence, in comparison with a loss of 335.16 pence per share in the prior year. The company noted that its prior-year results were restated. According to the company, the improvement in earnings was mainly due to to the significantly lower valuation deficit on the investment property portfolio together with an income tax credit of GBP 17.8 million, compared to a GBP 2.7 million credit in the prior-year period.
Adjusted earnings per share were 16.89 pence, down from 29.51 pence in the earlier year, as a result of the dilutive effect on earnings of Rights Issue.
Revenues for the period grew to GBP 418.7 million from GBP 405.4 million in the comparable period a year ago. Gross rental income from London Portfolio for the half year declined to GBP 165.7 million from GBP 177.7 million in the preceding year, mainly due to the company's sales programme, which resulted in a decline in rental income of GBP14.2 million. Gross rental income from Retail Portfolio decreased to GBP 170.6 million from GBP 183.2 million in the year earlier. The decline in gross rental income from like-for-like investment properties was due to the failure of a number of retailers in the second half of last financial year, the company said. Operating profit was GBP 100.7 million, compared to an operating loss of GBP 1.31 billion in the year-ago period. Costs for the half year increased to GBP 200.3 million from GBP 164.6 million in the earlier year. Loss on disposal of investment properties for the period widened to GBP 18.6 million from GBP 0.7 million in the prior year. Net deficit on revaluation of investment properties reduced to GBP 89.8 million from GBP 1.55 billion in the preceding year. According to the company, the revaluation of London Portfolio resulted in a positive valuation surplus of 0.5% for the six-month period overall, while the revaluation of Retail Portfolio resulted in a valuation deficit for the period of 3.6% overall. The company noted that the valuation deficit of GBP 117.8 million represented a 1.4% reduction in market values over the six months, compared with a 12.5% reduction for the comparable period last year. During the period, the company also recorded an impairment of trading properties amounting GBP 9.3 million.
The company's share of loss of joint ventures were GBP 1.8 million, compared to a loss of GBP 192 million in the same period last year. The combined investment portfolio, including joint ventures, decreased in value to GBP 8.7 billion from from GBP 9.41 billion. Francis Salway, chief executive said, "We enter the recovery phase of the cycle with our balance sheet positioned as we planned in terms of gearing ratios. We have the capacity and confidence in our expertise to invest in the right acquisitions and new developments to create outperformance."
In addition, the company said it will be paying a second quarterly dividend of 7 pence per share to shareholders of record on December 11, 2009, payable on January 15. "In the short term, we will continue to focus on the key qualities and capabilities that have guided our actions since March 2009: a strong balance sheet and good access to finance; a high quality team showing leadership in planning, development and asset management; and a portfolio with exciting development opportunities. We believe these powerful tools for long-term value creation will become the hallmarks of success in our market," added Salway. LAND.L is currently trading at 710 pence, down 4.5 pence or 0.63%, on a volume of 1.07 million shares. In the past 52 weeks, the shares have been trading in a range of 323.25 pence - 1,051 pence on the LSE.
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June 12, 2026 17:14 ET Major central bank action was the focus this week in economic news. The European Central Bank became the first major central bank to move in response to the rising inflationary pressures in the backdrop of the conflict in the Middle East. In North America, the U.S. inflation and trade data as well as Canada’s central bank decision gained attention. The Chinese trade data was the main news in Asia.