Land Securities Group plc (LSGOF) Q4 2023 Earnings Call Transcript

Land Securities Group plc (OTCPK:LSGOF) This fall 2023 Earnings Convention Name Might 16, 2023 4:00 AM ET

Firm Members

Mark Allan – Chief Government Officer

Vanessa Simms – Chief Monetary Officer

Convention Name Members

Miranda Cockburn – Panmure

Sam Knott – Kolytics

Paul Might – Barclays

Max Nimmo – Numis

Mark Allan

Properly, good morning, everybody, and welcome to the presentation of Landsec’s 2023 Full-Yr Outcomes. Once we launched our technique again in late 2020, it was based mostly on two clear and easy rules: to focus our assets, the place now we have real aggressive benefit, and to keep up a powerful steadiness sheet. And since then, we have performed precisely that. And consequently, we’re in wonderful form, despite the fact that world financial and monetary market circumstances have deteriorated materially over the previous yr.

Inflation and rates of interest are up sharply and credit score circumstances have tightened, which has put stress on values throughout each asset class, together with property. Now, on our half yr outcomes 6 months in the past, we stated we anticipated this stress to proceed, which it has. And while the political scenario has stabilized considerably since then, rates of interest stay unstable, making it troublesome to foretell, the place they may ultimately settle, though we expect it’s unlikely that this might be again on the degree seen for a lot of the previous decade.

And that is essential for 2 causes. Firstly, our technique was by no means based mostly on the concept that this ultra-low charge atmosphere would persist. And neither or our choices now based mostly on a hope that rates of interest will fall again to these low ranges if we wait lengthy sufficient. And our resolve to promote £1.4 billion of mature workplaces over the previous yr underlines this. Secondly, and most significantly, this new actuality performs on to the strengths that we have been constructing since 2020.

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