Performance overview

Pre-tax profit

£1,069.3m

Our profit before tax this year.

Total dividend

28.0p

Four quarterly dividends of 7p reflect the decision taken in 2008/09 to rebase our dividend at a robust and sustainable level.

Revenue profit

£251.8m

Underlying profit before tax with certain exclusions – see the glossary for a full definition.

Notes

This year’s figure was impacted by our sales programme. Growing revenue profit over the medium term is a priority.

Chart 4

Land Securities performance vs IPD — ungeared total property return (%)

  • 17.3%
Land Securities performance vs IPD — ungeared total property return (%) 2006: Land Securities = 23.3, IPD Quarterly Universe = 20.8 2007: Land Securities = 16.3, IPD Quarterly Universe = 15.8 2008: Land Securities = -3.2, IPD Quarterly Universe = -9.3 2009: Land Securities = -29.4, IPD Quarterly Universe = -25.4 2010: Land Securities = -17.3, IPD Quarterly Universe = -17.4 5 Years: Land Securities = 2.8, IPD Quarterly Universe = 2.1 10 Years: Land Securities = 6.6, IPD Quarterly Universe = 6.5
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Chart 5

Dividends and adjusted diluted earnings per share (p)

  • 34.08p
  • 45.5%
Dividends and adjusted diluted earnings per share (p) 2006: Dividends per share (restated) = 41.57, Adjusted diluted earnings per share (restated) = 63.50 2007: Dividends per share (restated) = 47.18, Adjusted diluted earnings per share (restated) = 63.26 2008: Dividends per share (restated) = 56.97, Adjusted diluted earnings per share (restated) = 60.79 2009: Dividends per share (restated) = 51.07, Adjusted diluted earnings per share (restated) = 62.57 2010: Dividends per share (restated) = 28.00, Adjusted diluted earnings per share (restated) = 34.08
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Chart 6

Revenue profit (£m)

  • £251.8m
  • 20%
Revenue profit (£m) 2006 = 391.3 2007 = 392.2 2008* = 284.8 2009* = 314.9 2010 = 251.8 * Restated to exclude Trillium revnue profit
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Chart 7

Combined portfolio value

  • £9.54bn
Combined portfolio value London Portfolio = £5.27bn Retail Portfolio = £4.27bn
Notes Enlarge

You will find more information on how we value our assets

Chart 8

Voids and units in administration* (%)

  • 6.9%
  • 1.4%
Voids and units in administration* (%) London offices = 2009: Voids = 5.9, In administration = 0.2 2010: Voids = 6.2, In administration = 0.2 Shopping centres = 2009: Voids = 6.8, In administration = 7.1 2010: Voids = 7.6, In administration = 1.5 London retail = 2009: Voids = 1.1, In administration = 5.8 2010: Voids = 5.9, In administration = 0.2 Retail warehouses = 2009: Voids = 1.8, In administration = 5.2 2010: Voids = 5.2, In administration = 3.5 Total portfolio = 2009: Voids = 5.0, In administration = 3.3 2010: Voids = 5.9, In administration = 1.0 *Like-for-like portfolio
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Chart 9

Net assets per share (p)

  • 691p*
  • 16.5%
Net assets per share (p) 2006: Basic = 1,439, Adjusted diluted = 1,723 2007: Basic = 2,076, Adjusted diluted = 1,965 2008: Basic = 1,862, Adjusted diluted = 1,763 2009: Basic = 639, Adjusted diluted = 593 2010: Basic = 750, Adjusted diluted = 691
Notes Enlarge

Our effective management of gearing served to increase the value of our net assets per share as the market turned.

Objective

Metric

Progress
To deliver sustainable long-term shareholder returns
  • Three year Total Shareholder Return (TSR) performance compared to the TSR performance of an index of comparator group of FTSE 350 companies
  • TSR outperformed competitor group by 5.9% for one year period from April 2009 (date of introduction of TSR performance metric)
Maximise the returns from the investment portfolio
  • IPD outperformance in each core sector
  • Shopping centres – outperformed IPD sector benchmark by 6.9%
  • Retail warehouses – outperformed IPD sector benchmark by 0.75%
  • London offices – underperformed IPD sector benchmark by 2.3%
Manage our balance sheet effectively
  • Sell £1,019m of assets
  • Raise £420m through new debt facilities outside of Secured Group
  • Transfer £35m of additional assets into Security Group
  • £1,030m of disposals achieved
  • £505m of new facilities secured with innovative deal on Queen Anne’s Gate, London SW1 and debt raised against St David’s 2 shopping centre
  • £237m of additional assets transferred into Security Group
Maximise development lettings
  • £17m of development lettings
  • Progress Leeds Trinity pre-lettings
  • £22.8m of lettings achieved with London Portfolio £10.9m and Retail Portfolio £11.9m
  • Leeds Trinity at 32% pre-let and 12% in solicitors’ hands
Improve efficiency
  • Deliver £10m of overhead savings
  • £13.3m savings delivered against benchmark target
Ensure high levels of customer satisfaction
  • Overall customer satisfaction in Retail and London businesses to exceed targets
  • In both the London and Retail Portfolios we moved to an overall customer satisfaction score. Retail scored 4.17 against a target of 4.0 and London scored 3.74 against a target of 3.74
Attract, develop, retain and motivate high-performance individuals
  • Employee engagement to exceed ETS industry benchmark
  • Exceeded with a grand mean score of 3.10 (classified as excellent by our external survey provider) compared to 3.06 in the prior year