UK property group LandSec's losses soar on pandemic hit

[BENGALURU] British property developer Land Securities Group's first-half loss soared to the equivalent of more than US$1 billion as pandemic-hit businesses held back rental payments, although it expressed optimism about its London portfolio of assets.

Retail property owners and tenants have been working together to ride out the coronavirus crisis, which has added to problems such as political uncertainties and the increasing shift to online shopping.

The company said that like-for-like net rental income during the period was down 10 per cent and that it had put aside another 87 million pounds (S$154.7 million) against bad debts, adding to an earlier 23 million pound provision.

Its overall loss before tax soared to 835 million pounds (US$1.1 billion) from 147 million pounds a year earlier.

"The impact on our results from unpaid rent and service charges has been significant," it said in the trading statement.

Already troubled by Britain's troubled retail industry, which has seen a number of bankruptcies and the closure of several major retail chains, Land Securities Group has been looking to reinvest in its London portfolio and reduce its exposure to retail.

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It pointed at its ability both to use well-priced London assets if need be to secure more liquidity and at the opportunities which a slump in office rentals may provide in the city.

"The investment market for high quality London office assets, such as those owned by Landsec, has remained robust throughout the pandemic and there is little sign of that interest waning," the company said.

REUTERS