// Landsec posts pre-tax loss of £192m in the six months to 30 September
// Despite the loss, the property owner remains confident it is “well-placed” in a challenging market
Landsec has recorded “strong leasing activity” in its retail spaces as shoppers return to stores.
The Bluewater shopping centre owner reported leasing activity with £10 million of lettings on average, 1% above valuers’ assumptions, and a further £31 million in solicitors’ hands, 3% ahead of valuers’ assumptions.
“Current occupancy is stable vs March, at 95.1%, which means our vacancy is roughly half that of the London market,” Landsec said.
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Landsec has swung to a first-half loss after a deficit on investments and an increase in costs.
It recorded a pre-tax loss of £192 million in the six months to 30 September, from a profit of £275 million in the same period a year earlier.
However, it said it remains “well-placed” in a challenging market, citing its “strong strategic and operational momentum”.
Landsec’s revenue grew 25% to £394 million from £315 million during the period, but it recorded a net deficit on revaluation of investment properties of £331 million.
The property giant said a small 0.4% increase in retail valuations was offset by a 4.4% drop in London, which accounts for 61% of its overall portfolio by value, with 63% located in the West End.
Meanwhile, the rise in interest rates over the period meant transaction volumes across global and UK property markets “slowed considerably” and pricing started to adjust.
Landsec said it remains confident it is in a positive position amid the economic uncertainty – thanks to its strategy launched two years ago, underpinned by two key principles.
These are focusing on resources where it has “genuine competitive advantage” and its “strong balance sheet”.
Landsec CEO Mark Allen said: “The successful execution of our strategy therefore means we are not only well placed for more challenging market conditions, but also have optionality to take advantage of new opportunities that will no doubt emerge as property markets continue to adjust to a new reality.
“London remains a top global city which continues to attract new businesses and talent; that the future of major retail destinations is more positive than most, including many retailers themselves, thought two years ago.”
