Land Securities PLC moved back into profit as property markets in its core markets started to recover from the impact of coronavirus.
The FTSE 100 group made £275mln in the half-year to end September 2021 compared to a loss of £835mln a year ago as its run of write-downs ended with the value of its portfolio ticking up slightly to £11bn.
LandSec said rents for prime, grade A London offices remained resilient and the central London office market saw a recovery in investment and operational activity during 2021.
In retail, some 181 lettings were completed or are in solicitors' hands over the half-year, with rents 3.3% ahead of expectations. Leisure and food and beverage are becoming increasingly important, added LandSec.
The group also strengthened its mixed-use / regeneration arm in November when it agreed to buy U and I Group.
Over the past six months, the group has repositioned around central London offices, major retail sites and mixed-use urban developments, with assets worth £250mln sold during the period.
Net assets per share at the end of September were 1,003p, up 2.9% from March, while the interim dividend rises by 29% to 15.5p.
Mark Allan, chief executive added: "Today, we are proud to set out a fully costed investment plan to transition our business towards net zero, ensuring that we deliver on our science-based target to reduce our carbon emissions by 70% by 2030.”