StockMarketWire.com - Land Securities delivered a downbeat outlook on retail and warned of a further deterioration after reporting wider annual losses as the number of retailers filing for insolvencies piled up.


For the 12 months to 31 March, losses before tax widened to £123m from £43m and revenues rose 8.9% to £442m, while earnings, or EPRA net assets a share fell 4.6% to 1,339p. 



The combined portfolio value fell 4.1% to £13.8bn impacted by weak retail markets, the company said.

Like-for-like net rental income was up 1.9% to £10m, with shopping centres down 11.7% as retailer failure led to 'rental values falling by 5.7% in aggregate with equivalent yields moving out by 24 basis points,' it added.

A final dividend of 11.65p was proposed, giving a total dividend for the year of 45.55p per share, an increase of 3.1%.

Looking ahead, the company said it sees 'no near-term improvement in retail market conditions, with CVA activity set to continue.'

'Rental values are likely to decline further in shopping centres and retail parks, though we expect continued rental growth in outlets and select leisure destinations. Consumers will continue to be attracted to destinations that provide a broad range of brands and experiences,' it added.






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