LandSec increases debt, reduces LTV

Land Securities increased its debt by £470m to £3.8bn last year but an increase in portfolio valuation by £2bn to £14bn reduced its group LTV from 32.5% to 28.5%. The UK REIT said said in its annual report to 31 March 2015 that the result was consistent with its strategy at this stage in the property cycle of allowing gearing to decline as property values rise.

Land Securities increased its debt by £470m to £3.8bn last year but an increase in portfolio valuation by £2bn to £14bn reduced its group LTV from 32.5% to 28.5%.

LandSec logoThe UK REIT said in its annual report to 31 March 2015 that the result was consistent with its strategy at this stage in the property cycle of allowing gearing to decline as property values rise.

It recently replaced a £1bn revolving credit facility with a new £1.255bn five-year loan at 75bps from a group of eight banks. It also secured a £500m two-year acquisition loan last year to fund its investment in Bluewater shopping centre in Kent, replacing an existing facility that was due to expire in September 2014.

The pricing of its debt facilities range from Libor +75bps to +120bps with the weighted average cost 4.5% and the average duration 8.3 years. It had cash and available facilities of £1.4bn.

LandSec also raised £180m last year through the issue of unsecured Euro Commercial Paper at Libor +20bps.

The company reported a pretax profit of £2.4bn, up from £1.1bn in the previous period.

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