Land Securities revenue profits rise as London feels Brexit impact

The UK's largest listed property company Land Securities said full year pre-tax profits fell to £112m from £1.3bn mainly due to a valuation deficit as the initial effects of Brexit were felt in the London office market.

Revenue profit, the company's measure of underlying pre-tax profit, increased by 5.5% to £382m.

The devaluation of properties drove a 155.1p reduction in earnings per share to 14.3p this year. The total dividend is up to 38.55p a share from 35p.

Adjusted diluted earnings per share rose 5.7% to 48.3p while adjusted diluted net asset value per share fell marginally to 1417p.

The company said its combined portfolio was valued at £14.4bn and, with adjusted net debt broadly unchanged over the year at £3.3bn, loan-to-value was 22.2%.

Chief executive Robert Noel said the vote to leave the EU had caused uncertainty, with falling rental values and a cut in construction commitments, albeit less than expected.

“Put simply, our markets remain in good health but they've paused for breath,” he said.

“In the London office market, we expected the occupational balance to shift from demand to supply during the course of 2017. The Brexit vote brought that inflexion point forward.”

“We won't be sure of the long-term effect of Brexit on our markets for some time. Negotiations with the EU can only begin in earnest after the general election.”