15th May 2018 09:13
LONDON (Alliance News) - Land Securities Group PLC on Tuesday swung to an annual pretax loss, and warned that the UK property market will be more subdued in the near term amid the country's decision to leave the European Union.
"As the UK prepares for its exit from the EU, we are navigating uncertain waters in the near term, and we expect investment and leasing volumes in the property market to be more subdued. We are prepared for this uncertainty with conservative gearing and a development exposure which we have shifted from speculative to pre-let," said Chief Executive Robert Noel.
The company also announced the appointment of Cressida Hogg as non-executive chair effective from the conclusion of the company's annual meeting on July 12.
Hogg, who joined the Landsec board in January 2014, will succeed Dame Carnwath. The retirement of Carnwath was announced in March.
For the year to March-end, the property company recorded a pretax loss of GBP251 million, compared with a profit of GBP112 million in the comparative year-ago period, on a revenue of GBP406 million and GBP382 million, respectively.
The loss for the year was attributed to the company's bond repurchase activity during the period. The company repurchased GBP1.53 billion of bonds at a premium of GBP446 million. The rise in revenue profit was due to increased rental income, which stood at GBP611 million versus GBP600 million.
The company's property portfolio was valued at GBP14.1 billion, with a valuation deficit of GBP91 million, or 0.7%. Net assets per share for the period fell to 1,418 pence from 1,458p a year ago.
Land Securities declared a final dividend of 14.65 pence, giving a total payout for the year of 44.2p, up 15% from 38.55p paid a year ago.
Shares in the company were trading 1.0% lower at 959.05p each Tuesday morning.
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