Land Securities has issued a warning that the UK commercial property market is some way from recovery, after announcing a record fall in the value of its portfolio.
The largest property company in the UK, LandSecs made a pre-tax loss of £4.8 billion in the year to March, wiping a third of the value from its books.
The company is now worth £9.4 billion. LandSecs’ London office space portfolio was hit to the tune of £2.3 billion.
Shares have fallen to 463p, down from nearly £18 a year ago. CEO Francis Salway said, ‘While the market may see some pockets of stabilisation for certain asset types, we expect conditions to remain challenging in a weak economic environment, with vacancy rates rising and rental values weakening, putting pressure on rental income.’
LandSecs raised £750 million through a rights issue in February.