Land Securities Group PLC (LSE:LAND) posted a big loss in the year just ended after another write-down on the value of its property portfolio.
The FTSE 100 group added that investment activity had almost dried up in the wake of rising interest rates, which has hit prices, though consumer-facing sites are buoyant.
Landsec’s West End office portfolio is now effectively fully rented (99.5%), it said, while London occupancy overall is running close to 96%.
Customer demand for retail space in the best locations is also high, said the property giant.
Total retail sales across the portfolio grew 6.9% year-on-year in the year to end March 2023, with like-for-like sales 4.4% above 2019 levels.
Footfall increased 12% and is now at 90% of pre-pandemic levels, compared to 83% for the UK market and 80% a year ago.
“Consumer behaviour continues to gradually revert back to pre-Covid trends, with online sales down and in-store sales up over the past year,” said Mark Allan, chief executive.
Allan’s turnaround strategy is to dispose of underperforming properties, such as second-tier retail parks, and regroup around the West End and central London, high-volume retail centres and mixed-use developments.
Losses for the year to March were £622mln after an £875mln write-down though rose slightly to £393mln on an underlying basis.
Net asset value fell to 945p (1,070p), though the dividend goes up by 4.3% to 38.6p with net debt dropping to £900mln after the disposal of £1.4bn worth of largely City offices.
Shares rose 1% to 627.4p.