Land Securities Group PLC (LSE:LAND) has reported a 5% rise in like-for-like net rental income for the year to 31 March, helping lift EPRA earnings to £374 million and profit before tax to £393 million.
The real estate group cited strong leasing momentum across its London and major retail assets, where rents on relettings rose 8%, and occupancy reached a five-year high of 97.2%.
Portfolio value increased by 1.1%, supported by 4.2% growth in estimated rental value.
Chief executive Mark Allan said the group would rotate £3 billion of capital out of offices and low-yielding assets to fund £1 billion in new retail investments and establish a £2 billion residential platform by 2030.
Landsec also reduced overheads by 5% and expects further savings. Net debt rose to £4.3 billion, with a loan-to-value ratio of 39.3%. The dividend increased 2% to 40.4p. Total returns on equity stood at 6.4%.
The shares opened flat.