Docusign Envelope ID: EC3A0701-DEBD-471D-B700-5B6DE62F32D8
Docusign Envelope ID: 0E7017C5-C836-4DC5-85FE-83BFC774A441
LAND SECURITIES CAPITAL MARKETS PLC
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2024
The directors of Land Securities Capital Markets PLC (the 'Company') present their Strategic Report and Directors' Report with the
financial statements for the year ended 31 March 2024.
Results for the year
The results are set out in the Statement of Comprehensive Income on page 10.
Review of the business
The Company is a subsidiary of Land Securities Group PLC, which together with all of its subsidiaries is referred to as the 'Group'. The
Company has £4.1bn (2023: £4.7bn) of secured medium-term notes (MTNs) in issue under the Multicurrency Programme for the issuance
of notes. During the year, the Company issued a further £0.3bn (2023: £0.4bn) of MTNs. The MTNs are secured on a fixed and floating
pool of assets held by Group companies (the 'Security Group') giving debt investors security over a pool of investment properties valued at
£9.2bn at 31 March 2024 (2023: £9.6bn).
Key performance indicators
The directors assess the performance of the Company by reference to successfully raising external debt capital.
Principal risks and uncertainties
The principal risks facing the Company are that of credit risk whereby the intercompany loans issued to the Land Securities Group become
irrecoverable, and liquidity risk whereby the Company has insufficient available funds for its operations and refinancing of upcoming MTNs.
The solvency of the Land Securities Group is considered strong and therefore credit risk is deemed to be low. The Company has a well
spread maturity profile and expected maturities between 2025 and 2057 and diversified shorter-term maturities in commercial paper and
committed bank facilities, therefore liquidity risk is considered to be low.
Financial risk management
The Company's debt financing exposes it to a variety of financial risks that include the effects of changes in debt market prices, liquidity
and interest rates.
The Company's principal financial assets are cash, loans due from Group undertakings and trade and other receivables. The solvency of
the Land Securities Group is considered strong and therefore credit risk is deemed to be low.
The Company has negligible interest rate risk as all MTNs have fixed interest.
The Company actively maintains a mixture of MTNs with final maturities between 2027 and 2059. Any short-term liquidity requirement is
minimal and funding requirements can be covered by committed facilities held by other Group companies. The Company's MTNs are
listed on the Irish Stock Exchange.
All assets and liabilities held by the Company are denominated in pound sterling therefore there is no exposure to foreign currency risk at
31 March 2024 and 31 March 2023
A sensitivity analysis has not been produced as the risks that the Company is exposed to are low.
The fair value of the Company's borrowings varies according to changes in the market cost of borrowing.
Further discussion of these risks and uncertainties, in the context of the Group as a whole, is provided in the Group's Annual Report, which
does not form part of this report.
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Docusign Envelope ID: EC3A0701-DEBD-471D-B700-5B6DE62F32D8
Docusign Envelope ID: 0E7017C5-C836-4DC5-85FE-83BFC774A441
Section 172(1) statement
LAND SECURITIES CAPITAL MARKETS PLC
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
The Company's ultimate parent company is Land Securities Group PLC which indirectly holds 100% of the ordinary share capital of the
Company (refer note 14). The Company's framework in respect of requirements under section 172(1) of the Companies Act is applied
through the Land Securities Group's processes and policies, which place stakeholders at the forefront of the directors' decision making.
Details of the Group's framework with respect to interests of customers, communities, employees, partners, suppliers and investors can be
found in the consolidated financial statements of Land Securities Group PLC for the year ended 31 March 2024, available on the Group's
website, www.landsec.com.
At a Company level, the directors take the interests of stakeholders, namely the Group as the Company's customer and investor and the
community in which the Company operates, into account when making relevant decisions, ensuring regular and clear lines of
communication between the Company and the Group. The relevance of each stakeholder group may increase or decrease by reference to
the issue in question, so the directors seek to understand the needs and priorities of each group during its discussions. This, together with
the combination of the consideration of long-term consequences of decisions and the maintenance of the Group's reputation for high
standards of business conduct, is integral to the way the directors operate. The Company Secretary plays a key role in ensuring that
stakeholders' interests are fully considered and addressed during the course of the directors' discussions.
This report was approved by the Board and signed on its behalf.
�DocuSigned by:
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cc'aWn'y',Ff6r4and on behalf of LS Company Secretaries Limited
Company Secretary
Date:
July 30, 2024
Registered and domiciled in England and Wales
Registered number: 05193511
Registered Office
100 Victoria Street
London
SW1E 5JL
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Docusign Envelope ID: EC3A0701-DEBD-471D-B700-5B6DE62F32D8
Docusign Envelope ID: EC3A0701-DEBD-471D-B700-5B6DE62F32D8