UK’s Landsec swings to profit on strong office portfolio recovery
UK’s largest commercial property firm Land Securities Group Plc reported on Tuesday a swing to half-year profit, helped by “resilient” rents at its prime Central London-focused office portfolio.
Office property firms in the UK are gradually recovering after battling lower rental levels and steep valuation declines in the wake of the COVID-19 pandemic, as people increasingly return to cities, particularly in the key office hub of London.
“Office utilisation has increased markedly over the past couple of months as confidence in the safety of workplaces and public transport has improved and government guidance has become clearer,” said Chief Executive Officer Mark Allan in a statement.
Landsec, which has an 11 billion-pound portfolio with about 70% of it by value belonging to Central London office spaces, said a per share measure that reflects the value of its buildings — EPRA Net Tangible Assets — rose 2.7% to 1,012 pence.
The London-headquartered firm, which had announced a four-pronged growth strategy in October last year including diversification into mixed-use properties and disposals in hotels, leisure and retail parks sectors, said it expected customer demand to remain resilient for the remainder of the financial year.
Earlier this month, Landsec said it had bought a 75% stake in MediaCity, the UK’s biggest tech and media hub outside London, for $580 million, just two days after announcing the purchase of regeneration firm U+I for $260 million.
The FTSE 100 firm’s profit before tax came in at 275 million pounds ($369.41 million) for the six months ended Sept. 30, compared to a loss of 835 million pounds a year earlier.
