LAND Securities has said its £390 million extension of the Buchanan Galleries shopping centre is already 36 per cent pre-let.

The major tenants in Glasgow are to be Marks & Spencer, a 10-screen Showcase Cinema de Lux and an extended John Lewis department store.

Others already announced include Superdry, Mango and Next, which is more than doubling its existing floorspace, along with restaurants D&D London and Artisan Kitchen as well as bar The Alchemist.

The size of the mall will rise from 700,000 square feet to in around 1.17 million square feet once the extension is fully open in 2018 with the additional shops and restaurants expected to support around 1,500 jobs.

In annual results Land Securities reported a trading profit rise of three per cent from £319.6m to £329.1m on revenue which increased from £716.5m to £770.4m.

It also recorded a surplus of £1.77bn on the revaluation of its investment properties, up from the £606.6m in prior year.

The company said its adjusted diluted net asset value - a key measure for developers as it reflects the value of their buildings - rose 27.6 per cent to 1,293 pence per share in the year ended March 31.

It also raised its dividend to 31.85p, from 30.7p.

Land Securities said it had benefited from a buoyant London market as well as the reshaping of its regional portfolio and improving retail lettings.

Chief executive Robert Noel said: "In retail, we took decisive action and have transformed our shopping centre portfolio, focusing our capital and expertise on those assets that fit in with our strategic themes of dominance, experience and convenience, and by selling those that do not.

"Our focus will remain on creating, owning and managing great destinations."

During the year Land Securities, which also owns the likes of the Walkie Talkie skyscraper in London and Bluewater in Kent, made more than £800 millions of disposals.

That included selling the majority of its interests in Scotland including Dundee's Overgate Centre, the Bon Accord in Aberdeen and The Centre, Designer Outlet Centre and Almondvale West Retail Park in Livingston.

Scott Parsons, managing director of its retail portfolio, said: "We now have a better quality portfolio of assets that are more resilient in the face of changing consumer habits, more appealing to our customers and better positioned for future performance."

The results showed the annual rental at Buchanan Galleries is £16.7m with Land Securities confident it will retain around 75 per cent of that through the construction phase of the extension.

On Buchanan Galleries, where Land Securities bought the 50 per cent it did not own during the year, it said: "We continue to progress contractual arrangements."

Mr Noel said the business would continue to try to match the cost of development activity and acquisitions with disposals

Alison Watson at Investec has a buy rating on the Land Securities stock and said it was a "very strong" set of results.

Panmure Gordon's Sue Munden also kept a buy rating on the stock and said: "The year was characterised by buoyant underlying markets for both retail and in London which has permitted significant levels of lettings.

"Moreover the group is replenishing the landbank and although the group has said it will not commit so speculative build at this stage in the cycle, the development programme will continue."