Interim Results - Part 2

Land Securities PLC
14 November 2001


PART 2

LAND SECURITIES UNAUDITED CONSOLIDATED PROFIT & LOSS ACCOUNT
INTERIM RESULTS
FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2001


                                      Six months                     Six months
                                             to                             to
                                        30.9.01                        30.9.00
                                                                    (restated)
                    Notes                    £m                             £m

                                          ------                       --------
GROSS PROPERTY
INCOME                4                    435.2                          267.4
                                          ======                        ======
NET RENTAL INCOME     4                    281.1                          232.8
Property management
and administration
expenses (including
bid costs of
£0.1m; £Nil;£0.6m
respectively)                             (35.5)                         (17.4)
                                          ------                         -----
OPERATING PROFIT                           245.6                          215.4
Profit on sales of
properties                                   3.5                             .4
                                          ------                         -----
PROFIT ON ORDINARY
ACTIVITIES BEFORE
INTEREST AND
TAXATION                                   249.1                          215.8

Interest receivable
and similar income    5                      2.4                            4.5
Interest payable
and similar charges   5                   (82.9)                         (70.5)
Revenue profit                             165.2                          149.4
Profit on sales of
properties and bid
costs                                        3.4                             .4
                                          ------                         -----

PROFIT ON ORDINARY
ACTIVITIES BEFORE
TAXATION                                   168.6                          149.8
Taxation on:
Revenue profit                            (46.0)                         (46.0)
Property sales and
bid costs                                  (1.1)                              -
                                          ------                         ------
Taxation              6                   (47.1)                         (46.0)
                                         -------                          -----
PROFIT ON ORDINARY
ACTIVITIES AFTER
TAXATION                                   121.5                          103.8
Dividends             7                   (47.6)                         (45.3)
                                          -----                          -----
RETAINED PROFIT FOR
THE FINANCIAL YEAR                          73.9                           58.5
                                          =====                          =====

                              Basic      Diluted        Basic           Diluted
                           --------      -------      -------           -------
EARNINGS PER SHARE    8      23.18p       22.92p       19.85p            19.76p
ADJUSTED EARNINGS
PER SHARE             8      22.85p       22.61p       20.83p            20.68p
                             ======       ======       ======            ======

                                                                       Year to
                                                                       31.3.01
                                                                       audited
                                                                     (restated)
                               Notes                                        £m
                                                                        -------
GROSS PROPERTY
INCOME                            4                                       650.4

                                                                        ======
NET RENTAL INCOME                 4                                       500.7
Property management
and administration
expenses (including
bid costs of
£0.1m; £Nil;£0.6m
respectively)                                                            (45.7)
                                                                         -----
OPERATING PROFIT                                                          455.0
Profit on sales of
properties                                                                  6.3
                                                                         -----
PROFIT ON ORDINARY
ACTIVITIES BEFORE
INTEREST AND
TAXATION                                                                  461.3
Interest receivable
and similar income                5                                         7.6
Interest payable
and similar charges               5                                     (151.1)

Revenue profit                                                            312.1

Profit on sales of
properties and bid
costs                                                                       5.7
                                                                         -----

PROFIT ON ORDINARY
ACTIVITIES BEFORE
TAXATION                                                                  317.8

Taxation on:
Revenue profit                                                           (87.6)
Profit on sales and
bid costs                                                                   0.2

                                                                          -----

Taxation                          6                                      (87.4)

                                                                         -----
PROFIT ON ORDINARY
ACTIVITIES AFTER
TAXATION                                                                  230.4
Dividends                         7                                     (170.1)
                                                                         -----
RETAINED PROFIT FOR
THE FINANCIAL YEAR                                                         60.3
                                                                         =====
                                                   Basic                Diluted
                                                 -------                -------
EARNINGS PER SHARE                8               44.06p                 43.65p
ADJUSTED EARNINGS
PER SHARE                         8               43.85p                 43.46p

                                                                         ======

The consolidated profit and loss accounts, consolidated cash flow statements
and the other primary statements for the six months ended 30 September 2000
and the year ended 31 March 2001 together with the balance sheets at those
dates have been restated for the effects of adopting the Accounting Standards
Board's Urgent Issue Task Force Abstract 28 'Operating Lease Incentives'
(UITF28) and Financial Reporting standard 19 'Deferred Tax' as explained in
Note 2.

LAND SECURITIES UNAUDITED CONSOLIDATED BALANCE SHEET
INTERIM RESULTS
30 SEPTEMBER 2001


                                   30.9.01           30.9.00           31.3.01
                                                   (restated)           audited
                                                                     (restated)
                       Notes            £m                £m                £m
                                 ---------         ---------         ---------
FIXED ASSETS
Intangible assets
   Goodwill                            39.9                 -              41.2
Tangible assets
  Investment
properties               9          7,894.3           7,724.3           7,899.1
  Properties held by
Land Securities
Trillium                 9            361.8                 -             323.1
  Properties             9          8,256.1           7,724.3           8,222.2
Other tangible assets                  37.2              15.4              34.1
                                   --------          -------           -------
                                    8,333.2           7,739.7           8,297.5
                                   --------          -------           -------
CURRENT ASSETS
Trading properties       10            45.7                 -                 -
Debtors                  11           231.1             114.2             181.7
Investments: short
term deposits                          24.6              83.9              22.0
Cash at bank and in
hand                     12            84.5              14.8               7.3
                                    -------          -------           -------
                                      385.9             212.9             211.0
CREDITORS falling due
within one year          13         (518.0)           (413.0)           (595.3)
                                    -------          -------           -------
NET CURRENT
LIABILITIES                         (132.1)           (200.1)           (384.3)
                                    -------          -------           -------
TOTAL ASSETS LESS
CURRENT LIABILITIES                 8,201.1           7,539.6           7,913.2

CREDITORS falling due
after more  than one
year
Borrowings               14       (1,972.9)         (1,519.6)         (1,726.5)
Other creditors          15          (29.9)            (21.6)            (31.8)

PROVISIONS FOR
LIABILITIES AND
CHARGES                  16         (128.7)           (124.1)           (127.5)
                                   --------          -------           -------
                                    6,069.6           5,874.3           6,027.4
                                   ========          =======           =======
CAPITAL AND RESERVES
Called up share
capital                  17           524.2             522.7             523.6
Share premium account    18           314.8             306.2             312.0
Capital redemption
reserve                  18            36.0              36.0              36.0
Revaluation reserve      18         3,584.9           3,682.7           3,693.2
Other reserves           18           397.4             190.8             324.6
Profit and loss
account                  18         1,212.3           1,135.9           1,138.0
                                   -------           -------           -------
EQUITY SHAREHOLDERS'

FUNDS                               6,069.6           5,874.3           6,027.4
                                   =======           =======           =======
NET ASSETS PER SHARE     8            1158p             1124p             1151p
DILUTED NET ASSETS
PER SHARE                8            1138p             1106p             1131p
ADJUSTED NET ASSETS
PER SHARE                8            1181p             1147p             1174p
ADJUSTED DILUTED NET
ASSETS PER SHARE         8            1159p             1128p             1154p



LAND SECURITIES UNAUDITED CONSOLIDATED CASH FLOW STATEMENT
INTERIM RESULTS
FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2001


                                Six  months       Six  months
                                        to                to           Year to
                                   30.9.01           30.9.00           31.3.01
                                                                        Audited
                                  unaudited         unaudited        (restated)
                                        £m                £m                £m
                                 ---------         ---------         ---------

NET CASH INFLOW FROM
OPERATING ACTIVITIES
(Note (b))                            109.1             170.1             462.0
RETURNS ON INVESTMENTS
AND SERVICING OF
FINANCE
Interest received                       2.6               6.4               9.8
Interest paid                        (96.6)            (33.9)           (103.8)
NET CASH OUTFLOW FROM
RETURNS ON INVESTMENTS
AND  SERVICING OF
FINANCE                              (94.0)            (27.5)            (94.0)
TAXATION - Corporation
tax paid                             (25.7)            (24.3)            (87.5)
                                     ------           ------            ------
NET CASH
(OUTFLOW)/INFLOW FROM
OPERATING ACTIVITIES
AND  INVESTMENTS AFTER
FINANCE CHARGES AND
TAXATION                             (10.6)             118.3             280.5
CAPITAL EXPENDITURE
Additions to
properties and
increase in other
 tangible assets                    (279.8)           (215.7)           (588.9)
Sales of properties                   243.4             206.0             491.3

NET CASH OUTFLOW ON
CAPITAL EXPENDITURE                  (36.4)             (9.7)            (97.6)
ACQUISITION                               -                 -           (114.2)
EQUITY DIVIDENDS PAID               (125.0)           (119.0)           (164.1)
                                    -------           ------            ------
CASH OUTFLOW BEFORE
USE OF LIQUID
RESOURCES AND
 FINANCING                          (172.0)            (10.4)            (95.4)
MANAGEMENT OF LIQUID
RESOURCES                             (2.6)              56.2             118.1
FINANCING
Issues of shares                         .5                .7               1.2
Purchase and
cancellation of own
shares                                    -             (6.0)             (6.0)
Increase/(decrease) in
debt                                 249.9            (25.0)            (14.1)
NET CASH INFLOW/
(OUTFLOW)
FROM FINANCING                        250.4            (30.3)            (18.9)
                                    ------            ------            ------
INCREASE IN CASH IN
PERIOD                                 75.8              15.5               3.8
                                    ======            ======            ======



LAND SECURITIES UNAUDITED OTHER PRIMARY STATEMENTS
INTERIM RESULTS
FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2001


                                 Six  months       Six  months          Year to
                                         to                to           31.3.01
                                    30.9.01            30.9.00          audited
                                                   (restated)        (restated)
                        Notes            £m                £m               £m
                                  ---------         ---------        ---------
STATEMENT OF TOTAL
RECOGNISED GAINS  AND
LOSSES
Profit on ordinary
activities after
 taxation                              121.5             103.8            230.4
Unrealised (deficit)/
surplus on valuation
of properties             18          (32.5)             155.5            299.3
UITF28 adjustment to
property valuation        18           (3.0)             (1.3)            (3.2)
Taxation on valuation
surpluses  realised on
sales of properties       18               -             (4.2)            (1.8)
                                     -------          -------          -------
Total gains and losses
relating to the
Financial period                        86.0             253.8            524.7
Prior year adjustment
(Note 2)                             (123.5)                 -                -
                                       -----            ------           ------
Total gains and losses
recognised  since last
financial statements                  (37.5)             253.8            524.7
                                    =======           =======          =======

NOTE OF HISTORICAL      Notes    Six  months       Six  months          Year to
COST PROFITS AND                         to                to           31.3.01
 LOSSES                             30.9.01            30.9.00          audited
                                                   (restated)        (restated)
                                          £m                £m               £m
                                   ---------          --------         --------
Profit on ordinary
activities  before
taxation                               168.6             149.8            317.8
Valuation surplus of
previous years
realised on sales of
properties                18            72.8              53.9            185.3
Taxation on valuation
surpluses  realised on
sales of properties       18               -             (4.2)            (1.8)
                                    -------           -------          -------
Historical cost profit
on ordinary
activities before
taxation                               241.4             199.5            501.3
Taxation                  6           (47.1)            (46.0)           (87.4)
                                    -------           -------          -------
Historical cost profit
on ordinary
activities after
taxation                               194.3             153.5            413.9
Dividends                 7           (47.6)            (45.3)          (170.1)
                                    -------           -------          -------
Retained historical
cost profit for
the period                             146.7             108.2            243.8
                                    =======           =======          =======

RECONCILIATION OF       Notes    Six  months       Six  months          Year to
MOVEMENTS IN  EQUITY                     to                to           31.3.01
SHAREHOLDERS' FUNDS                 30.9.01            30.9.00          audited
                                                   (restated)        (restated)
                                          £m                £m               £m
                                    --------          --------         --------
Profit on ordinary
activities after
taxation                               121.5             103.8            230.4
Dividends                 7           (47.6)            (45.3)          (170.1)
                                    --------          -------          -------
Retained profit for
the financial period                    73.9              58.5             60.3

Unrealised (deficit)/
surplus on valuation
of properties             18          (32.5)             155.5            299.3
UITF28 adjustment to
property valuation        18           (3.0)             (1.3)            (3.2)
Taxation on valuation
surpluses  realised on
sales of properties                        -             (4.2)            (1.8)
Issues of shares                         3.8               1.7              8.7
Purchase and
cancellation of own
shares                                     -              (.1)             (.1)
                                    -------           -------          -------
Net change in
shareholders' funds                     42.2             210.1            363.2
Opening equity
shareholders' funds
(originally £6,150.9m
before prior year
adjustment of £123.5m)               6,027.4           5,664.2          5,664.2
                                    -------           -------          -------
Closing equity
shareholders' funds                  6,069.6           5,874.3          6,027.4
                                    =======           =======          =======


NOTES TO THE CASH FLOW STATEMENT
INTERIM RESULTS
FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2001


(a)    Reconciliation of          Six  months      Six  months
net cash flow to                          to               to          Year to
movements in net debt                 30.9.01         30.9.00           31.3.01
                                   unaudited         unaudited         audited
                         Notes            £m               £m               £m
                                   ---------        ---------        ---------
Increase in cash in
 period                                  75.8             15.5              3.8
Increase in debt                      (249.9)             25.0             14.1
Increase/(decrease) in
liquid resources                          2.6           (56.2)          (118.1)
                                     -------          -------          -------
Increase in net debt
resulting from  cash
flow                      (c)         (171.5)           (15.7)          (100.2)
Non-cash changes in       (c)             3.5               .6              1.4
debt
Loans acquired with new
group undertaking                           -                -          (212.8)
                                     -------          -------          -------
Movement in net debt in
period                                (168.0)           (15.1)          (311.6)
Net debt brought
forward                             (1,727.8)        (1,416.2)        (1,416.2)
                                     -------          -------          -------
Net debt carried
forward                   (c)       (1,895.8)        (1,431.3)        (1,727.8)
                                     =======          =======          =======

(b) Reconciliation of                            Six  months            Year to
operating profit to net         Six months        to 30.9.00            31.3.01
cash inflow from                to 30.9.01         unaudited            audited
operating activities             unaudited        (restated)         (restated)
                                       £m                £m                 £m
                                ---------         ---------          ---------

Operating profit                     245.6             215.4              455.0
Depreciation                           9.1               1.6                8.6
Increase in trading
properties                          (45.7)                 -                  -
(Increase)/decrease in
debtors                             (99.6)            (43.2)                9.7
Decrease in creditors                 (.3)             (3.7)             (11.3)
                                  -------           -------            -------
Net cash inflow from
operating activities                 109.1             170.1              462.0
                                  =======           =======            =======



                                 Movements   Movements
                                during six  during six
                                    months      months
                                 unaudited   unaudited
                       1.4.01                             30.9.01     30.9.00

(c) Analysis of       audited    Cash flow    Non-Cash  unaudited    unaudited
Net Debt                   £m           £m          £m         £m          £m
                    ---------   ---------   ---------   ---------   ---------
Net bank balance           3.1        75.8                    78.9        14.8
Liquid resources          22.0         2.6                    24.6        83.9
Debt due within
one year                (26.4)           -           -      (26.4)      (10.4)
Debt due after
one year             (1,726.5)     (249.9)         3.5   (1,972.9)   (1,519.6)
                      -------     -------     --------    -------     -------
Net debt             (1,727.8)     (171.5)         3.5   (1,895.8)   (1,431.3)
                      =======     =======     =======     =======     =======


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