Land Securities reports improvement
Land Securities, the U.K.'s largest real estate investment trust, has today announced figures which would indicate that the UK property sector is starting to recover. Net income during the six months to September 30 reached £11.9 million which compares to a loss of £1.73 billion during the corresponding period last year. This is a major improvement although the net asset value of the company's portfolio fell by 4.7% to £5.65 a share.
Interestingly, the fall in the value of the company's net asset value per share was slightly less than analysts had forecast and the company has indicated it is ready to start work on new developments, the first time this has happened since 2006. It seems as though the UK property sector has bottomed out but as we commented in one of our posts yesterday there will be a period of consolidation as many companies are still in severe financial trouble and we cannot rule out distressed asset sales.
There will be a significant lag between a full-blown recovery in the property sector and a full-blown recovery in the UK economy. The economy will need to power ahead before the property sector is dragged forward as tenants will need to be replaced and new rental agreements discussed.
Share this..
Related stories
Primark announces 17% profits rise
As we look at the fall of 34% in the profits of Marks & Spencer it may look strange to see Primark announcing a 17% increase in profits for the same period. However when you check out the underlying quality and target market of the two companies that may be some obvious reasons as to the change in trading.
Primark has always targeted the lower end of the market with goods sold for a...
Scottish Government Move To Cut Public Service Energy Costs
The Scottish government has received a warm round of applause from power companies and tax payer protection groups alike with news that all public body energy contracts north of the border will be put out to tender. Rather than 'a few hundred' contracts worth £200 million each, bids will be sought to supply electricity to local councils, health boards, police, fire services and an array of other...
Read MoreIs the UK property market dead?
As the UK property market continues to come under severe pressure and head downwards there are many people suggesting that the market may not recover for anything up to 10 years. However, these are probably the very same people who believed that the boom times in the UK property market would continue indefinitely and never saw the current recession arriving on the UK shores. So is the UK property...
Read MoreWill the services sector lead the UK economy out of recession?
Despite news yesterday that the construction industry has contracted for the 22nd month in a row, today we saw news that the services industry in the UK has reported growth for the eighth month in a row. While these conflicting economic indicators are obviously causing unrest and uncertainty within investment markets, there is no doubt that the services industry is the most vital element of the UK...
Read MoreUK families caught in funding squeeze
Families across the UK are today looking at a nightmare scenario with inflation running at 3.2% and wages under pressure with softness predicted in the employment market. Despite the fact that UK households have struggled to make ends meet for over two years now, since the credit crunch hit home, the situation could get much worse over the next 12 months. So what can we do? The simple answer is...
Read More