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Land Securities: JP Morgan downgrades to neutral; UBS downgrades to neutral, target cut from 870p to 840p.
Land Securities´s chief executive Robert Noel yesterday argued that developers will not be building enough space to cope with demand over the next three years. Choice is evaporating, and potential tenants are expressing an interest earlier. This is even true in the West End market, which traditionally does not see many pre-lets. The argument is a compelling one. For now, Land Securities’s portfolio is showing good resilience. The proportion of void space within its London office portfolio rose from 2.5 per cent to 2.9 per cent in the first financial quarter to end-June, but this was a one-off blip, reflecting the floor of one building in Victoria that was relinquished by an existing tenant for redevelopment. Though various retail collapses are still working their way through, the level of voids at the retail portfolio was unchanged at 3.6 per cent. The company is working on the only significant new retail development under construction, Trinity Leeds, to open by March next year, which is 80 per cent full or under contract. The market shares some of this optimism. The shares have appreciated by 17 per cent since the start of the year and the discount to net asset value has halved to 9 per cent. This takes a lot on trust; high enough for now, The Times´s Tempus column writes.
Positive Points: Management highlighted "good momentum on lettings across all schemes". Retail Portfolio voids were flat at 3.6% (3.6% at 31 March 2012). Retail units in administration were 2.0% (2.2% at 31 March 2012) with 53% of these still trading. The weighted average cost of group debt was 4.9% compared to 5.0% as of 31st March 2012, with an average duration of 10.6 years (10.9 years at 31 March 2012). Accompanying management comments noted that "We remain confident that the development pipeline offers exceptional opportunity to deliver growth while our active asset management and strong financial base underpin our activities." At the last full year results, progress for management's key valuation measure, adjusted diluted Net Asset Value (NAV), rose by 4.5% to 863 pence per share. The first interim dividend payment for the current financial year will be 7.4 pence per share, up from 7.2 pence per share for the first quarter last year.
Negative Points: Management noted that "transactions are taking longer". Voids or empty lets in the overall like-for-like portfolio rose to 3.2% (3.0% at 31 March 2012). Within the London Portfolio, voids rose to 2.9% compared to 2.5%. As at 30 June 2012, adjusted net debt (including joint ventures and adjusted for the nominal value of bonds but excluding the mark-to-market on swaps) amounted to £4.04 billion compared to £3.98 billion as of 31 March 2012. With UK inflation still running ahead of wage growth, the outlook for consumers remains challenging, a fact which has placed pressure on its Retail portfolio.
Financial Highlights: Voids in the like-for-like portfolio up at 3.2% (3.0% at 31 March 2012) Retail Portfolio voids flat at 3.6% (3.6% at 31 March 2012) London Portfolio voids at 2.9% (2.5% at 31 March 2012) There were no disposals in the period
First quarter update: Voids or empty lets across the total portfolio rose marginally to 3.2% from 3.0% as of 31 March, with management noting that "transactions are taking longer". Activity within its London (largely office) portfolio impacted, with voids rising to 2.9% from 2.5%. Empty lets for its Retail division remained flat at 3.6%. A further £9.3 million of development letting had been signed since the 1st April, with total investment in the quarter of £148.2 million, including capital expenditure on developments of £59.5 million. Accompanying management comments noted that "occupier interest and intent remains firm as businesses seek out efficient space for their future needs". Group debt rose marginally, although a further increase in the dividend was confirmed. In all, near term concerns for the UK's economic outlook continue to weigh against the company's income paying ability in a low interest rate environment.
Land Securities is a major Real Estate Investment Trust (REIT). It owns, manages and develops properties across the United Kingdom. The group operates through two divisions: 1) The London Portfolio – which includes office developments and retail properties in London 2) The Retail Portfolio – which includes shopping centres and shops, retail warehouses and food stores. Around 500 organisations are provided with accommodation via its London Portfolio, whilst the Retail Portfolio includes over 40 shopping centres and retail parks.
Land Securities Group Buy 29-Jun-12 £594,935.99 Robert Noel 80,000 @ 743.67p
Even by LANDs standards the £3.445M BUY is huge - it dont take much of a rise to make a decent profit with that sum
Property investor Land Securities (LAND) has formed a partnership with the Canada Pension Plan Investment Board to develop the Victoria Circle site in central London. The group plans to construct five new buildings, providing 910,000 square feet of mixed residential, office and retail space, with a final estimated value of over 1 billion pounds. The existing properties are let until September 2012, after which demolition can begin. The first phase of development is scheduled to be completed by 2016 and the project should be fully completed in 2018. The shares crept up 1.5p to 687.5p.
Stacey Rauch, a non-executive director of FTSE 100 property firm Land Securities, has purchased £40,950-worth of shares in the company. Rauch, 53, only joined the board at the start of this month, and the transaction marks her first take up of shares in the firm. The purchase was made on January 24th, the same day as the group's third quarter update, which covers the final three months of 2011, was announced.
Commenting on the performance over the quarter, Land Securities' Chief Executive Francis Salway said: "Despite weak economic news flow, we have continued to make progress in the period having completed a number of development lettings, and further reduced void levels on our portfolio. As is to be expected in a period of economic uncertainty, letting transactions are taking longer to execute. "Having refinanced over £1bn of our bank facilities, we are well placed with long average duration of debt, moderate balance sheet gearing and the capacity to invest. We expect the economic uncertainty to continue in the near term, but we remain confident of our ability to withstand economic fluctuations and to take advantage of opportunities that may arise from the scarcity of bank funding."
The Francis Salway era at property firm Land Securities is set to come to a close at the end of March as the Chief Executive Officer hands over to Robert Noel, currently Managing Director of the London Portfolio. The news was revealed in a statement accompanying the group's third quarter interim management statement covering the final three months of 2011. Total property sales in the quarter were £104.0m (net receipts) at 1.9% below March 2011 valuation and at an average yield of 7.6%. Total investment in the quarter totalled £89.1m, including capital expenditure on developments of £51.1m and acquisitions of £11.1m. The acquisitions were at an average yield of 1.4%.
http://www.investegate.co.uk/Article.aspx?id=201201240700170443W
Exane BNP Paribas downgrades Land Securities Group from outperform to neutral, target price cut from 840p to 770p.
Espirito Santo downgrades Land Securities Group from buy to neutral, target price cut from 956p to 820p.
Morgan Stanley downgrades Land Securities Group from overweight to underweight, target price cut from 980p to 680p.
Goldman Sachs downgrades Land Securities from conviction buy to buy, target price raised from 952p to 990p.
Goldman reiterated conviction buy on Land Securities, target price raised to 952p from 892p.
Land Securities (LAND) predicted further growth going forward with markets in "recovery mode", as the property giant posted widened full-year pre-tax profits. The group reported a pre-tax profit of 1,227.3 million pounds for the 12-months ended 31st March 2011, which compares to a profit of 1,069.3 million pounds a year earlier, as basic Net Asset Value per share advanced 18% to 885p. Commenting on this, chief executive Francis Salway said: "We may continue to see ripples in prices, but we go into the new financial year confident in our plans and well positioned to address growth opportunities." Shares in Land Securities were up 48p to 795.5p
of hope and glory
meaty £3m buy today !
On where Land Secs is going in the next few months. Seems to be currently hovering aroung the £6 mark ? Many thanks
to see us trising again