In a challenging real estate landscape, Land Securities (Landsec) continues to thrive by offering top-tier spaces, solidifying its dominance in the London-centric property portfolio. The latest half-year results reveal remarkable demand, especially in Central London, constituting two-thirds of its portfolio. Central London’s occupancy rose by 60 basis points to an impressive 96.5%, with the star West End portfolio operating at a remarkable 99.6%.
While specific details about retail performance were not provided, and operations outside the capital were not explicitly mentioned, the overall report exuded optimism. Despite market challenges, particularly in the office segment, Landsec reported a 0.5% growth in group earnings on an EPRA (European Public Real Estate Association) basis, totaling £198 million. This growth was fueled by positive leasing, margin improvement, and a 2.8% like-for-like income increase.
However, the group acknowledged a slight pre-tax loss of £193 million, adjusted for lower property values. CEO Mark Allan emphasized the advantages of Landsec’s high-quality, differentiated portfolio and focused capital allocation, leading to sustained success. In the retail sector, sales in Landsec locations consistently outpaced overall brand sales growth, contributing to increased occupancy and rents.
Mark Allan stated, «Despite challenges in the general economic outlook, we see no signs of these trends abating.» Landsec expresses confidence in a market rebound next year, supported by its strategy to navigate higher interest rates. The company remains optimistic, stating, «Although the economic backdrop remains uncertain, demand for top-tier space has stayed robust, leading to further growth in occupancy and like-for-like income across our portfolio. We also completed our recent development program, now 83% let or in solicitors’ hands, with rents 12% ahead of initial expectations.» Experience the pinnacle of London real estate with Landsec.