Interim Results - Part 2

Land Securities PLC
15 November 2000

Part 2

LAND SECURITIES                          
NOTES TO THE INTERIM RESULTS
for the six months ended 30 September 2000


NOTE 1  INTERIM RESULTS
        
The Accounting Standards Board (ASB) has issued a non-mandatory
statement 'Interim Reports', which seeks to codify best practice in
the presentation of interim results.  The Interim Results, which
incorporate a revaluation of investment properties as at 30 September
2000, have been prepared having regard to the guidance in the ASB
statement and on the basis of the accounting policies set out in the
Group's audited financial statements for the year ended 31 March
2000.

The financial information for the year to 31 March 2000 has been
extracted from the Group's financial statements to that date.  These
statements received an unqualified auditors' report, did not contain
a statement under Section 237(2) or (3) of the Companies Act 1985 and
have been filed with the Registrar of Companies.

The Interim Results for the six months ended 30 September 2000 were
approved by the Directors on 15 November 2000.

NOTE 2  NET RENTAL INCOME

                                              Six       Six          
                                           months    months   Year to
                                               to        to   31.3.00
                                          30.9.00   30.9.99   audited
                                        unaudited unaudited
                                         --------  --------  --------
                                              £m        £m        £m
                                                                     
Rental income                               243.0     234.6     479.9
Service charges and other recoveries         23.1      22.9      48.3
                                            -----     -----     -----
Gross property income                       266.1     257.5     528.2
Ground rents payable                        (8.7)     (8.0)    (16.4)
Other property outgoings                   (25.9)    (26.4)    (54.6)
                                           (34.6)    (34.4)    (71.0)
                                            -----     -----     -----
                                            231.5     223.1     457.2
                                            =====     =====     =====

All income was derived from within the United Kingdom from continuing
operations.  No operations were discontinued during the period.

NOTE 3  FINANCE
                                              Six       Six          
                                           months    months   Year to
                                               to        to   31.3.00
                                          30.9.00   30.9.99   audited
                                        unaudited unaudited
                                         --------  --------  --------
                                               £m        £m        £m
INTEREST RECEIVABLE:                                                 
Short term deposits and corporate             4.1      11.4      18.7
bonds
Other interest receivable and similar          .4        .5        .8
income
                                            -----     -----     -----
                                              4.5      11.9      19.5
                                            =====     =====     =====
INTEREST PAYABLE:                                                    
Borrowings not wholly repayable within                               
five  years                                  69.5      70.0     139.9
Borrowings wholly repayable within             .5        .5       1.1
five years
Other interest payable and similar             .5       1.6       1.9
charges
                                            -----     -----     -----
                                             70.5      72.1     142.9
                                            =====     =====     =====


NOTE 4  TAXATION
                                              Six       Six          
                                           months    months   Year to
                                               to        to   31.3.00
                                          30.9.00   30.9.99   audited
                                       unaudited  unaudited
                                        --------  --------  --------
                                             £m        £m        £m
The charge for taxation is made up as                                
follows:
Revenue profit at the Corporation Tax                                
rate of 30% (1999: 30%)                     44.4      44.1      90.5
 
Tax allowances on expenditure relating                               
to properties                               (5.2)     (6.1)    (12.2)
Movement in deferred taxation                (.1)        .2      1.0
Other adjustments                             .9         .5      (.2)
                                            -----     -----     -----
                                             40.0      38.7     79.1
Adjustments relating to previous years         .1        .2     (4.0)
                                            -----     -----     -----
On revenue profit                            40.1      38.9     75.1
On property sales                               -        .7       .6
                                            -----     -----     -----
                                             40.1      39.6     75.7
                                            =====     =====     =====

The amount of tax on capital gains which would become payable in the
event of sales of the properties at the amounts at which they are
stated in Note 7 is in the region of £510m (31 March 2000 £490m).

NOTE 5  DIVIDENDS
        
The interim dividend of 8.65p per share (1999 8.25p per share)will
amount to £45.2m (1999 £46.0m) calculated on 522.7m shares (1999
557.7m shares) in issue on 30 September 2000.  However, dividends
shown in the Profit and Loss Account include £0.1m (1999 £0.7m) of
prior year final dividend arising from increases in share capital
before the record date of 9 June 2000.


NOTE 6  EARNINGS AND NET ASSETS PER SHARE
   
EARNINGS PER SHARE

Earnings per share are calculated on the profit on ordinary
activities after taxation of £108.4m (1999 £112.1m) and on the
weighted average number of shares in issue during the period of
522.7m(1999 557.6m).

Adjusted earnings per share, calculated on the same weighted average
number of shares but excluding the profit arising on sales of
properties after taxation of £0.4m (1999 £3.9m), have been disclosed
to show a measure of earnings that reflects the principal operating
activities of the Group.

Diluted earnings per share are calculated on the profit on ordinary
activities after taxation of £113.9m (1999 £117.9m), after adjusting
for the effects of the exercise of conversion rights relating to the
convertible bonds, and on the weighted average number of shares in
issue during the period of 553.1m (1999 589.1m), which takes into
account the number of potential shares arising from the exercise of
conversion rights and share options.

NET ASSETS PER SHARE

Net assets per share are calculated on net assets of £5,997.8m and
on 522.7m shares.

The diluted net assets per share are calculated on adjusted net
assets of £6,249.0m and on 553.8m shares after adjusting for the
effects of the exercise of share options and of conversion rights
relating to the convertible bonds on net assets and the number of
shares in issue.

NOTE 7  PROPERTIES

                                             Leasehold               
                                         -----------------           
                                             
                                             Over     Under          
                                               50        50          
                                            years     years
                               Freehold    to run    to run     Total
                               --------   -------   -------   -------
                                     £m        £m        £m        £m
                                                                     
At 1 April 2000: at valuation   5,711.9   1,686.8      55.0   7,453.7
                                                                     
Additions                         155.4      65.3        .1     220.8
Reclassifications                           (1.7)       1.7          
Sales                            (95.1)     (6.3)         -   (101.4)
                                -------   -------   -------   -------
                                                                     
                                5,772.2   1,744.1      56.8   7,573.1
                                                                     
Unrealised surplus on             132.3      17.6       5.6     155.5
valuation (Note 14)
                                -------   -------   -------   -------
                                                                     
At 30 September 2000: at        5,904.5   1,761.7      62.4   7,728.6
valuation                                                            
                                =======   =======   =======   =======
                                                                     

Freeholds include £387.3m of leaseholds with unexpired terms
exceeding 900 years; leaseholds under 50 years to run include £10.2m
with unexpired terms of 20 years or less.

The historical cost of properties to the group is £3,854.8m
(31 March 2000 £3,681.5m)


NOTE 8  DEBTORS

                                          30.9.00   30.9.99   31.3.00
                                        unaudited unaudited   audited
                                         --------  --------  --------
                                               £m        £m        £m
                                                                     
Trade debtors                                52.9      32.2      20.4
Capital debtors                              11.4      15.4      15.9
Property sales debtors                        7.9         -     113.6
Other debtors                                16.0      11.7      13.5
Prepayments and accrued income               21.7      27.2      19.2
                                            -----     -----     -----
                                            109.9      86.5     182.6
                                            =====     =====     =====

NOTE 9  INVESTMENTS AND CASH

                                          30.9.00   30.9.99   31.3.00
                                        unaudited unaudited   audited
                                         --------  --------  --------
                                               £m        £m        £m
                                                                     
Short term deposits                          83.9     370.8     140.1
Cash at bank and in hand                     14.8       6.0         -
                                            -----     -----     -----
                                             98.7     376.8     140.1
                                            =====     =====     =====

NOTE 10    CREDITORS FALLING DUE WITHIN ONE YEAR

                                          30.9.00   30.9.99   31.3.00
                                         --------  --------  --------
                                              £m        £m        £m
                                                                     
Debentures and loans                         10.4       1.6      25.4
Overdraft                                       -         -        .7
Trade and other creditors                    17.3      19.1      21.6
Taxation and Social Security                 84.4      87.2      64.3
Deferred taxation                              .9        .2       1.0
Proposed dividend                            45.2      46.0     118.9
Capital creditors                            52.9      77.6      54.0
Accruals and deferred income                202.4     157.3     171.2
                                            -----     -----     -----
                                            413.5     389.0     457.1
                                            =====     =====     =====


NOTE 11    BORROWINGS FALLING DUE AFTER MORE THAN ONE YEAR

                                          30.9.00   30.9.99   31.3.00
                                        unaudited unaudited   audited
                                          --------  --------  --------
                                               £m        £m        £m
                                                                     
Debentures, bonds and loans               1,283.3   1,296.7   1,308.1
Falling due within one year (Note 10)      (10.4)     (1.6)    (25.4)
                                          -------   -------   -------
                                          1,272.9   1,295.1   1,282.7
Convertible bonds                           246.7     251.9     247.5
                                          -------   -------   -------
                                          1,519.6   1,547.0   1,530.2
                                          =======   =======   =======


NOTE 12    OTHER CREDITORS FALLING DUE AFTER MORE THAN ONE YEAR


                                          30.9.00   30.9.99   31.3.00
                                        unaudited unaudited   audited
                                         --------  --------  --------
                                               £m        £m        £m
                                                                     
Deferred income                              18.5      18.4      18.6
Deferred taxation                              .1        .1        .1
Other creditors                               3.1       3.3       3.3
                                            -----     -----     -----
                                             21.7      21.8      22.0
                                            =====     =====     =====

NOTE 13    CALLED UP SHARE CAPITAL
                                          30.9.00   30.9.99   31.3.00
                                        unaudited unaudited   audited
                                         --------  --------  --------
                                               £m        £m        £m
Ordinary shares of £1 each                                           
Authorised                                  720.0     720.0     720.0
                                            =====     =====     =====
Allotted and fully paid                     522.7     557.7     522.4
                                            =====     =====     =====

NOTE 14    RESERVES

               Share  Capital                                        
             premium  redempt-   Revalu-             Profit          
             account      ion     ation     Other  and loss         
                      reserve   reserve  reserves   account     Total
                  £m       £m        £m        £m        £m        £m
            ---------  -------   -------   -------   -------   -------
                                                                 
At             305.2     36.0   3,582.4     141.2   1,194.6   5,259.4
 1 April 2000                                                            

Premium                                                              
arising on                                                           
issues of 
shares           1.4                                              1.4

Purchase                                                             
and cancellation                              (.1)                (.1)
of own shares

Unrealised                                                            
surplus on                                                           
valuation                         155.5                         155.5
of properties (Note 7)

Realised on sales                                                             
of properties                     (53.9)     53.9

Taxation on 
valuation surpluses                                              
realised on sales
of properties                                (4.2)               (4.2)
       
Retained                                                        
profit for                                                           
the period (page 10)                                   63.1      63.1

Amortised                                                            
discount                                                   
and issue       
expenses
of bonds        (.4)                                     .4
               -----    -----   -------     -----   -------   -------
                                                                     
At 30                                                                   
September 2000 306.2     36.0   3,684.0     190.8   1,258.1   5,475.1

               -----    -----   -------     -----   -------   -------
                                                                     
NOTE 15   FINANCIAL ASSETS AND LIABILITIES

                                   Book value          Fair value
                               -----------------   -----------------

                                30.9.00   31.3.00   30.9.00   31.3.00
                              unaudited   audited  unaudited  audited
                                                                     
                               ---------   -------   -------   -------
                                     £m        £m        £m        £m
The Group's financial assets                                         
and liabilities and  their
fair values are:
FINANCIAL ASSETS                                                     
Short term investments and         98.7     140.1      98.7     140.1
cash
FINANCIAL LIABILITIES                                                
Debentures, bonds, other      (1,283.3)  (1,308.8) (1.684.1) (1,827.9)
loans and  overdraft               
Convertible bonds               (246.7)   (247.5)   (264.1)   (260.5)
FINANCIAL INSTRUMENTS                                                
Interest rate swaps                                    12.0       2.7
                                =======   =======   =======   =======
                                                                     

Fair value has been calculated by taking the market value, where
available, and using a discounted cash flow approach for those
financial assets and liabilities that do not have a published market
value.  The difference between book value and fair value will not
result in any change to the cash outflows of the group unless, at
some stage in the future, borrowings are purchased in the market
other than at nominal value.

The group entered into four forward-starting interest rate swaps,
each for £100m, during the year ended 31 March 2000.  The first two
swaps each have a start date of 30 September 2000 for 15 years and
the other two have a start date of 30 June 2002 for 10 years.  The
counterparties can extend the duration of each swap on similar
terms.  As the intention is to link the swaps with new borrowings,
the value of the swaps has not been incorporated in the financial
statements.

At 30 September 2000 £31.7m of short term deposits were charged as
temporary security for borrowings until substitutions have been
agreed for properties taken out of charge.


The maturity and repayment profiles of the Group's financial assets
and liabilities and the expiry periods of its undrawn committed
borrowing facilities are:
                                                                     
            Financial assets       Financial           Borrowing
                                  liabilities          facilities
            -----------------  -----------------   -----------------
              30.9.00  31.3.00   30.9.00   31.3.00   30.9.00   31.3.00
            unaudited  audited unaudited   audited unaudited   audited
              -------  -------   -------   -------   -------   -------
                  £m       £m        £m        £m        £m        £m
                                                                     
One year                                                             
or less,        98.7    140.1      10.4      26.1      75.0      50.0
or on demand
                                                                     
More than                                                            
one year                                                             
but no             -        -        .4        .4      75.0     100.0
more than
two years
                                                                     
More than                                                            
two years                                                            
but no             -        -      38.6      48.6      50.0      25.0
more than
five years
                                                                     
More than          -        -   1,480.6   1,481.2         -         -
five years
             -------  -------   -------   -------   -------   -------
                98.7    140.1   1,530.0    1556.3     200.0     175.0
             =======  =======   =======   =======   =======   =======

The amount of debt that is repayable by instalments, where any of the
instalments fall due after more than five years, is not material.

Since 30 September 2000, the Group has increased available committed
bank facilities to £400m.

Land Securities
Interim Report
for the six months ended 30 September 2000


Review Report by the Auditors

INDEPENDENT REVIEW REPORT TO LAND SECURITIES PLC


INTRODUCTION

We have been instructed by the Company to review the financial information set
out on pages 10 to 22 and we have read the other information contained in the
interim report for any apparent misstatements or material inconsistencies with
the financial information.

DIRECTORS' RESPONSIBILITIES

The interim report, including the financial information contained therein, is
the responsibility of, and has been approved by, the Directors.  The Listing
Rules of the Financial Services Authority require that the accounting policies
and presentation applied to the interim figures should be consistent with
those applied in preparing the preceding annual accounts except where any
changes, and the reasons for them, are disclosed.

REVIEW WORK PERFORMED

We conducted our review in accordance with guidance contained in Bulletin
1999/4 issued by the Auditing Practices Board.  A review consists principally
of making enquiries of group management and applying analytical procedures to
the financial information and underlying financial data and, based thereon,
assessing whether the accounting policies and presentation have been
consistently applied unless otherwise disclosed.  A review excludes audit
procedures such as tests of controls and verification of assets,
liabilities and transactions.  It is substantially less in scope than an audit
performed in accordance with Auditing Standards and therefore provides a lower
level of assurance than an audit.  Accordingly we do not express an audit
opinion on the financial information.

REVIEW CONCLUSION

On the basis of our review we are not aware of any material modifications that
should be made to the financial information as presented for the six months
ended 30 September 2000.



PricewaterhouseCoopers
Chartered Accountants
London
15 November 2000