Performance Highlights

Whilst 2007 represents the high point in terms of the level of our development completions, we continue to create future opportunities for development in the medium-term. We obtained planning consent following a Public Inquiry for a 55,700m² tower building at 20 Fenchurch Street in the City of London; and we received a resolution to grant outline planning consent for Eastern Quarry, the largest of our landholdings at Ebbsfleet Valley in Kent.

Our property partnerships division, Land Securities Trillium, has successfully widened the base for its new business opportunities by moving into the PFI sector. We made our principal acquisition in this area, the SMIF, in early 2007 and we stated at the time that we would establish a fund for the PFI contracts acquired and introduce third party co-investors. We have made good progress in establishing the fund: we have successfully raised £568m of debt for the fund; and we are at an advanced stage of discussions with a number of prospective investors. We expect to move to a first closing for the fund before the end of this calendar year.

Whilst delivering financial returns for our shareholders continues to be our first priority, it is increasingly important to us to meet the expectations of our customers and other stakeholders on environmental issues. We were therefore delighted to be placed within SustainableBusiness.com’s ‘Top 20 Sustainable Stocks in the World’. We were both the only UK company and the only property company within this list. We have also been adjudged the Global Sector Leader in the Financial Services sector in the 2007 Dow Jones Sustainability Index.