Land Securities’ chief warns Brexit negotiations are not moving fast enough

PROPERTY DEVELOPER Land Securities said negotiations for Britain to leave the European Union were moving more slowly than businesses would have hoped.

Reporting a 5.2 per cent rise in its half-year revenue profit, the company, which owns the Trinity Leeds development, said political uncertainty caused by the slow pace of negotiations is leading to caution.

Robert Noel, chief executive of Landsec, said the developer had reported a “strong operational performance” in the first half of the year.

He added: “The headwinds of Brexit are beginning to show in the economy. However, our balance sheet is healthy and we have the talent, firepower and experience to thrive.”

The decrease in value of Landsec’s combined portfolio over the six-month period, adjusted for net investment narrowed to £19m from £260m a year ago. Adjusted diluted net asset value per share rose 1.1 per cent to 1,432p.

Landsec reported a 5.2 per cent rise in revenue profit to £203m for the six months ending September 30. Pre-tax loss stood at £33m for the period, compared with a loss of £95m for six months ending September 30, 2016.

The company said it had booked a 170 per cent profit on cost from the sale of its share of the ‘Walkie Talkie’ skyscraper in London to Hong Kong’s LKK Health Products Group in July.

Landsec and Canary Wharf Group sold the tower for £1.3bn, the highest price on record for a British office building.

Landsec is also the owner and manager of White Rose Shopping Centre in Leeds.

The shopping centre opened a 65,000 sq ft leisure extension, consisting of an IMAX cinema and six restaurant units, all let before completion.

David Brockton, an analyst at Liberum, said the company’s strategy of strengthening its portfolio and balance sheet “positions the business extremely well for the next few years as conditions soften”.