(Alliance News) - Land Securities Group PLC on Tuesday said it swung to a half-year loss in the six months to September 30, as a deficit on investments and an increase in costs more than offset revenue growth.
The London-based property developer and investor reported an interim pretax loss of GBP192 million, swinging from a profit of GBP275 million a year prior. Revenue grew 25% to GBP394 million from GBP315 million.
However, the firm noted a net deficit on revaluation of investment properties of GBP331 million, swinging from a GBP94 million surplus. Costs classified as other increased by 50% to GBP188 million from GBP125 million.
Meanwhile, EPRA net tangible assets per share fell by 5.0% to 1,010 pence on September 30 from 1,063p on March 31.
The firm's loan to value ratio decreased to 31% from 34%.
Despite the loss, Land Securities raised its dividend by 14% to 17.6 pence per share from 15.5p a year ago.
Meanwhile, the company said it has no need to refinance maturing debt until 2026, as net debt narrowed by 18% to GBP3.48 billion at September 30 from GBP4.25 billion at March 31.
Looking ahead, Land Securities expects underlying EPRA earnings per share to grow during its current financial year to March 31, 2023, alongside its dividend.
However, it said that global economic uncertainty is set to stay elevated, noting that "decades of globalisation, fuelling growth and depressing inflation, have started to go into reverse, with rising geopolitical tensions adding to risks around energy reliance and supply chains."
Though the firm added that its 9.8-year average debt maturity helped with the sustainability of its earnings.
"Beyond financial year 2023, the exact shape of earnings progression will rely on the pace of future disposals and reinvestments, but our strategy and strong capital base continue to offer the potential to grow earnings and total accounting return over time," it added.
Land Securities shares fell 0.6% to 619.80 pence each in London on Tuesday morning.
By Tom Budszus; tombudszus@alliancenews.com
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Land Securities (LAND)