Land Securities has reported a bumper 10% dividend hike supported by higher revenue profits in annual results - despite the value of its portfolio slipping.
The UK’s largest listed property company proposed a final dividend of 11.7p, which increases the dividend for the year by 10.1%.
The higher payout was supported by a 5.5% jump in revenue profit to £382m driven by new rents from the company’s completed developments and reduced interest costs.
Adjusted NAV per share was down 1.2% to 1,417p, which like British Land yesterday was ahead of analyst consensus forecasts. The value of the company’s portfolio slipped 1%, equivalent to £147m.
Land Securities chief executive Rob Noel said the company’s markets “remain in good health but they’ve paused for breath.”
He warned that the full impact of Brexit had yet to play out. However, he said the market impact so far had been less severe than feared.
“In last year’s report, I said a vote to leave the EU would create business uncertainty, leading to lower occupational demand, falling rental values and a reduction in construction commitments,” he said. “This is happening, though less than we expected.”
Analysts highlighted the increase in Land Securities’ dividend as key point of difference with British Land’s results.
“Unlike British Land, today we see an increasing dividend growth rate that will narrow the difference in dividend yields – one of the main advantages of British Land,” said Peel Hunt in a note to investors.
Land Securities shares were down 1.7% in early trading.