Land Securities’ £14.4bn portfolio has been marked down in value by 1.8%, or £259.6m, and adjusted diluted net assets per share fell by the same amount during the half year to 30 September.
In its half-year results, chief executive Rob Noel said the company was “well-positioned”, having transformed its retail portfolio and “let a large-scale development programme in London while keeping debt on a tight rein”.
The company returned a 4.5% rise in revenue profit to £192.5m but a £95m loss before tax and a 12.1p loss per share. Earnings per share were up by 4.7% to 24.3p and dividend per share up by 17.9p to 9.8% while the group’s LTV was up marginally to 22.6%.
As a result of the EU referendum, “uncertainty hangs over many issues and businesses find themselves in uncharted territory”, said Noel, with “occupational demand for office space in London… hesitant and the vacancy rate has continued to rise” while “increased pressure on retailers” is expected, with consumer spending restricted by “growth in prices exceeding that of pay”.
Land Securities subsequently intends to “watch closely how this uncertainty affects development decisions and construction starts”. Although predicting “a general weakening of net effective rental values as a result of current uncertainty”, Noel said the company was “relatively insulated” and that “uncertainty usually presents opportunities and we are ready to act”.
The company has appointed Nicholas Cadbury as an independent non-executive director from 1 January. He is currently finance director at Whitbread. Cadbury will also succeed Kevin O’Bryne as chairman of the audit committee at some point next year.
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