LONDON (Alliance News) - LXB Retail Properties PLC on Monday said delays in its development programme, increased construction costs, and reduced expectations of sales values drove down its net asset value in its recently completed financial year.
The closed-end real estate investment company said its net asset value per share was 56.70 pence at the end of its financial year on September 30, from 103.27p at the end of the prior year.
LXB reported a loss per share of 8.89p from 14.06p the prior year.
LXB cited the "very difficult" environment in which it operates, where bricks and mortar retail remains under pressure, the construction industry is suffering from difficulties in its supply chain and where statutory bodies are "often very under-resourced".
Alongside this, the UK's vote to leave the European Union has led to considerable uncertainty in the investment market, and has already had a "direct impact" on LXB's sale of its B&Q Greenwich property earlier this year, where the original sale was pulled by the purchaser and resulted in a lower sales price.
LXB said it was likely this uncertainty will continue to impact its remaining assets as and when it comes to sell, in "what is now quite a short time frame".
The company also noted it incurred losses relating to delays within its programme, including highway delays at Rushden Lakes, and construction delays at Stafford Riverside and Greenwich Brocklebank where the contractor ceased trading. These impacted on delivery dates for retailers and hence rent commencement. LXB also was hit by increased construction costs at Rushden Lakes, Stafford Riverside and Sutton, it said.
"Against the backdrop of an uncertain investment market, retailers and building contractors under pressure and under resourced local authorities and statutory bodies, the challenge of realising maximum value for the group in a timely manner is a difficult one," said Chairman Phil Wrigley.
The group paid a dividend of 38.00p per share for the year, down from 45.00p per share the prior year.
Shares in LXB were down 15% at 41.00p on Monday.
By Hannah Boland; hannahboland@alliancenews.com; @Hannaheboland
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