Land Securities Group PLC Positioning Landsec for growth (3975C)
19 Octubre 2020 - 1:00AM
UK Regulatory
TIDMLAND
RNS Number : 3975C
Land Securities Group PLC
19 October 2020
19 October 2020
Land Securities Group PLC ("Landsec")
Positioning Landsec for growth
Landsec will today host a virtual capital markets day for
analysts and investors. At this presentation Mark Allan, CEO, and
his senior management team will explain the future strategic
direction for the company and their priorities to create value for
all stakeholders.
Mark Allan said "Today we are setting out a strategy that makes
the most of Landsec's strengths and positions the business for
growth. It will build on existing areas of competitive advantage.
It will position the business to benefit from long-term macro
trends. And it will be built around a clear, authentic purpose so
that it delivers value not just for shareholders but for all
stakeholders."
The strategy identifies four strategic priorities. These are
to:
Optimise our central London business. Through targeted capital
recycling to crystallise significant value already created and fund
investment into growth opportunities, and by making the most of our
proven development and asset management expertise
Reimagine our retail business. Our outlets portfolio continues
to have good growth potential. However, there is an opportunity for
a significant reimagining of the model within our six regional
shopping centres
Realise and recycle capital from the disposal of subscale
sectors over time, where we have little or no competitive
advantage. These sectors are hotels, leisure and retail parks
Grow through urban opportunities. Seeking enhanced returns
through significant investment in mixed use urban opportunities,
from within our portfolio and through new investments in London and
potentially other major UK cities
There are six key findings that underpin the future strategic
direction of Landsec. These are:
-- The quality of the central London portfolio - these assets
represent 64% of the Landsec portfolio by value and are of a very
high quality with long term leases to a strong tenant base,
underpinning the financial strength of the company. London remains
one of the world's gateway cities and this portfolio represents a
good source of liquidity over time, with clear potential to recycle
capital out of some assets and reinvest into new growth
opportunities.
-- Talent - there is considerable experience, expertise and
capability throughout the Landsec business which will continue to
drive value creation. We will enhance our culture and organisation
to make the most of our talent.
-- The strength of the balance sheet - starting from a position
of strength, with low leverage and a liquid portfolio, we can face
the short-term challenges resulting from the pandemic and ensure
that we are well positioned to capitalise on the opportunities
which will arise over time.
-- Retail - whilst this sector is facing clear structural
challenges as a result of the emergence of online shopping, and
these have been accelerated by Covid-19, not all retail is the
same. Regional shopping centres have been most impacted by these
challenges, but these represent only 13% of our portfolio and our
shopping centres are amongst the very best in the sector. Of the
balance, our outlets remain an attractive subsector, many of our
suburban shopping centres offer significant repurposing potential
and our investment in retail parks is modest.
-- Portfolio mix - our review has highlighted that certain
elements of our portfolio are subscale, where we have little or no
competitive advantage, while some structural growth areas are
under-represented. This presents an opportunity to refocus the
portfolio over time.
-- Covid-19 - this continues to have a profound effect on all of
us. We are focused on proactively managing the short-term impacts
of Covid on our business and working hard to ensure Landsec is
positioned to take advantage of the significant opportunities that
we expect to arise as we emerge from the pandemic.
Landsec has a proven track record of creating, and the potential
to add, significant value through its portfolio and activities. We
will therefore prioritise delivering above market total returns
through the cycle. Income will be an important component of our
property returns but we do not believe it should be the key driver.
This approach will enable us to increase our focus on delivering
true value creation. Delivering our strategy will involve taking
more operational risk and this will be offset through lower levels
of financial gearing.
Our four strategic priorities make clear the roles played by the
different parts of our portfolio. Our central London portfolio is a
long-term driver of value for shareholders as well as a source of
capital for reinvestment; our regional retail assets are an
opportunity to further enhance our outlets and reimagine our
regional shopping centres; our subscale sectors represent capital
which can be better deployed in areas where we have competitive
advantage; and urban opportunities will be a significant source of
growth and enhanced returns over time.
We are positioning Landsec for growth.
Ends
Presentation details
The virtual capital markets day will commence at 09:00 BST and
the presentation slides will be available on our website from 08:45
BST. To register for the conference call or to watch the webcast of
the presentation, please go to
https://landsec.com/investors/results-presentations
There will be a Q&A facility on both the webcast and
conference call, and a replay of the event will be available at the
same address by tomorrow morning.
Please contact:
Press Investors
Jonathan Sibun (Tulchan Ed Thacker
Group)
+44 (0)7779 999 683 +44 (0)20 7024 5185
Jsibun@tulchangroup.com Edward.thacker@landsec.com
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