Land Securities, the largest property developer in Europe, sees signs of stability in the London commercial property market, despite still-falling prices.
The group, which has a market capitalisation of £3.7 billion, has seen rental income decline and vacancy rates climb in recent months, as the effects of the downturn work their way through the system and amid expectations of a sluggish economic recovery.
Nevertheless, Land Securities is confident of its predictions about the extent of the market decline and that it will be able to capitalise on the upswing. CEO Francis Salway commented, ‘We’ve made good progress in delivering our plan to strengthen our balance sheet ahead of taking advantage of the opportunities that will emerge as the cycle turns.’
Shares in Land Securities have risen from a low of 323p in March to 489p recently, though this is from a peak of more than 2300p at the end of 2006.