Land Securities reported on Wednesday that the value of its portfolio fell by £4.7 bn (EUR 5.2 bn) or 34% in the 12 months to end-March 2009. The largest real estate investment trust (REIT) in the UK booked a pre-tax loss of £4.7 bn compared to a loss of £988 mln in the same period the year before. Adjusted net asset value per share was down 66% at 593p from 1763p a year earlier.
Land Securities reported on Wednesday that the value of its portfolio fell by £4.7 bn (EUR 5.2 bn) or 34% in the 12 months to end-March 2009. The largest real estate investment trust (REIT) in the UK booked a pre-tax loss of £4.7 bn compared to a loss of £988 mln in the same period the year before. Adjusted net asset value per share was down 66% at 593p from 1763p a year earlier.
Commenting on the results, Land Securities said: 'Our full-year results reflect the unprecedented market conditions experienced in the property industry. The year saw some of the most rapid falls in values seen on record with the second half of the year characterised by the dramatic reaction to the worsening financial and economic conditions.'
CEO Francis Salway cautioned the UK property sector against placing too much faith in what he described as 'pockets of stabilisation' for certain asset types, saying 'we expect conditions to remain challenging in a weak economic environment, with vacancy rates rising and rental values weakening, putting pressure on rental income. For all these reasons we continue to be patient and focus on those matters within our control such as balance sheet strength and maximising income.'
He emphasised that Land Securities had strengthened its position by completing over £1.1 bn of disposals and had raised £756 mln this year from a rights issue.
