Commercial property owner Land Securities has admitted that the outlook for the British retail sector remains “challenging”, with inflation biting into households’ disposable income.
Posting its latest set of half-year results, the group indicated that the impact of the rising cost of living on consumer spending had been somewhat tougher than expected. However, chief executive Francis Salway insisted he had been “encouraged” by Land Securities’ performance in recent months.
“We have reduced vacancy rates, secured lettings above estimated rental value and achieved sales above the March 2011 valuation,” he explained. “Our strong balance sheet and excellent customer relationships give us confidence in our ability to respond and adapt to evolving market conditions.”
Although pre-tax profits in the six months to September 30 were down by 16.8 per cent at £378.9m, revenue profit climbed by 17.2 per cent to £159.3m. Revenue from property sales reached a total of £195.6m, with valuations on average 10.2 per cent higher than in March.
Earlier in the week, office and retail real estate developer Hammerson revealed that occupancy rates at its sites held firm at 97.1 per cent in the three months to November 8.
