US Edition The value of the company’s property portfolio soared by 9.7pc in the year to March 31, led by a 19.4pc rise in the value of Land Securities’ development projects. This includes the Walkie Talkie skyscraper in the City of London and Trinity Leeds shopping centre.
The results will help to soften doubts about Britain’s economic recovery, with Land Securities reporting falls in retail void rates, an increase in rental values, and that retailers have signed up to occupy almost two-thirds of Trinity Leeds two years before opening.
Francis Salway, chief executive, said: "This was a year of continued recovery in our market and strong progress by Land Securities. Our focus on development, our disciplined approach to acquisitions and disposals and our asset management activities have all delivered significant momentum across the business."
The economic recovery of London has helped to drive the business, with more than 60pc of Land Securities’ assets in the UK capital.
Mr Salway said London had “particularly strong growth prospects over the next few years” amid international demand to acquire property and occupy it.
The West End and City office markets are also expected to suffer a shortage of new space in the next few years after developers pulled the plug on projects during the recession.
Mr Salway said this shortage “may be even more acute than originally forecast” because of strong demand from businesses for commercial spacew. The shortage is expected to drive up rental values for the company’s new development projects.
Shares in Land Securities were up by more than 6pc to 795p in afternoon trading.
Analysts had pencilled in an adjusted net asset value per share of 768p a share, but Land Securities instead posted 826p, well ahead of expectations. Pre-tax profits were £1.23bn, compared to £1.07bn last year.
Harm Meijer, analyst at JP Morgan, said: "These are the blow-out full year results we hoped for."