Wednesday, May 13, 2009

Land Securities reports loss of £4.8bn

Land Securities has reported a staggering ВЈ4.8bn pre-tax loss. The sum completely out-shadows the problems of the previous year when the group was in the red to the tune of ВЈ1bn.

The latest loss is the result of a £4.7bn downgrade in the valuation of Land’s assets.

The 34% valuation fall was the result of “unprecedented market conditions” said the group.

Financial figures released today cover the 12 months to 31 March 2009.

The loss would have been higher but for over ВЈ1.1bn of disposals. Land's future prospects have been enhanced by a successful ВЈ760m rights issue three months ago

Francis Salway, chief executive, said: "This year the UK commercial property sector saw the sharpest fall in capital values on record as the full severity of the economic downturn hit the sector. Our portfolio was not immune.


Land Securities reports loss of £4.8bn


"We expect conditions to remain challenging in a weak economic environment, with vacancy rates rising and rental values weakening.

Land’s last rights issue was 29 years ago.

“From the sale of Trillium to the pause in development at Ebbsfleet, we have seized every opportunity to strengthen our position,” said Salway.

During the year the previous chairman, Paul Myners, left the board, as did Rick Haythornthwaite and Trillium chief executive Ian Ellis.