High St woe rocks land­lord

Scottish Daily Mail - - City & Finance -

LAND Se­cu­ri­ties posted a £147m first-half loss as the cri­sis on the High Street bat­tered the value of its prop­er­ties.

The land­lord, which owns the Trin­ity Leeds and West­gate Ox­ford shop­ping cen­tres, was hit by a £368m write­down on its port­fo­lio in the six months to Septem­ber 30.

Re­tail land­lords have seen the value of their port­fo­lios drop dra­mat­i­cally as shops, strug­gling with crip­pling busi­ness rates, sky-high rents and bru­tal com­pe­ti­tion from in­ter­net ri­vals, have sought res­cue deals that al­most al­ways seek to cut their rent obli­ga­tions.

Land Se­cu­ri­ties said the to­tal value of its port­fo­lio fell 2.8pc to £13.4bn in the first half. Rev­enue fell to £369m over the pe­riod, down from £379m a year ear­lier.

The losses sent it plunging from a £42m first-half profit in 2018 to a £147m loss this year.

It blamed a se­ries of re­tail col­lapses for the blow, as well as res­cue deals which have forced it to ac­cept lower rents from ten­ants. But de­spite warning of po­lit­i­cal un­cer­tainty, it vowed to plough on with £3bn de­vel­op­ment plans, which will fo­cus on build­ing more of­fices in Lon­don. It has four sites in con­struc­tion across the cap­i­tal.

Chief ex­ec­u­tive Rob Noel said: ‘Real es­tate fun­da­men­tals in Lon­don are sound. The of­fice mar­ket re­mains in good health and our ac­tiv­i­ties in the cap­i­tal will in­crease in the com­ing years.

‘With a Gen­eral Elec­tion next month and the UK’s pro­posed exit from the Eu­ro­pean Union fur­ther de­layed, there will be con­tin­ued un­cer­tainty.’

Shares rose 0.4pc, or 3.4p, to 895.4p.

Newspapers in English

Newspapers from UK

© PressReader. All rights reserved.