The price of shares in FTSE 100 REIT Land Security Group (LON:LAND) has increased by 8.46% to 697.60p (as of 11:40 GMT) despite posting a wider pre-tax loss for the six months ended 30th September. Management said that investor interest in London office property remains high and they expect there to be a polarisation in the market with increased demand for space helping to underpin prime office growth in the future.
CEO Mark Allen commented: “While today’s results clearly show the impact of the pandemic on our business, Landsec remains in a fundamentally strong position. Together, the high quality of our portfolio and low leverage of our balance sheet provide a solid foundation for executing our growth strategy and creating value for all stakeholders. This strength also means we have been able to take a proactive and responsible approach to the challenges of Covid-19, supporting our communities and customers.
As we begin to look beyond Covid-19, I am confident the business is well placed to capitalise on opportunities as they emerge. The investment market for high-quality London office assets, such as those owned by Landsec, has remained robust throughout the pandemic and there is little sign of that interest waning. Access to this liquidity, coupled with the acquisition and development opportunities that are likely to arise as a result of increased obsolescence of older office stock, as well as the long-term need for urban mixed use regeneration, mean there will be ample opportunity for Landsec to create significant value. We look ahead with a clear strategic direction and are optimistic about the future.”