Land Secs’ profits lower
THE owner of Liverpool’s St John’s Centre and Clayton Square shopping centres this morning announced a 16.8% decline in pre-tax profits for the six months to September of £378.9m.
Land Securities said that revenue profit, which is a measure of underlying pre-tax profit that includes its share of joint ventures, increased 17.2% to £159.3m.
The company, which also bought the St John’s shopping centre in Preston last month, argued that it had a pipeline of opportunities and a strong balance sheet.
Chief executive Francis Salway said: “Our continuing progress in the period reflects our focus on operations at every level. We have reduced vacancy rates, secured lettings above estimated rental value and achieved sales above the March 2011 valuation.
“Revenue profit has increased and our balance sheet is stronger, with lower gearing and capacity to invest in acquisition opportunities as and when they arise.
“We are operating in a challenging environment and we expect pressures in managing occupancy rates to continue. However, we have been encouraged by our first half performance.
“Our strong balance sheet and excellent customer relationships give us confidence in our ability to respond and adapt to evolving market conditions.
“We have a pipeline of opportunities within the portfolio to grow shareholder returns allied with a strong balance sheet to withstand economic fluctuations. We are alive to the potential effects of economic uncertainty and changeable sentiment in the capital markets.”
Mr Salway added that Land Securities maintained its view that it does not expect to see a “straight-line” recovery in its market and that economic uncertainty could create buying opportunities.
James Larmuth, Land Securities’ portfolio manager responsible for St Johns centre, said that it had attracted 9.4m shoppers this year, an increase of 840,000 on 2010.
“Consumers are taking more time to shop around for items and researching where to find the best deals so that every single pound works as hard as it possibly can.
“We are striving to cater for these shopping habits by adding more value brands, such as Aldi and Home Bargains, and quality, independent, fast-fashion retailers such as Kiss, Storm, Pretty Plus, Twist and Rebellious, to the centre’s retail offer, and we will continue to work hand in hand with retailers to strengthen the diversity of stores for our shoppers.”
