Property giant LandSec boosts profits but warns ‘the headwinds of Brexit are beginning to show in the economy’

View over Thames river, with the Shard in the foregroundDmitry Tkachenko / Shutterstock

• FTSE 100 firm LandSec posted boosted profits but warned of Brexit “headwinds.”
• “Negotiations with the EU are moving more slowly than businesses would have hoped. Coupled with political uncertainty, this is leading to caution,” said chief executive Robert Noel.
• The group’s performance was boosted by landmark deals including the sale of the Walkie-Talkie skyscraper.

LONDON — Profits at property giant LandSec rose 5.2% in the half-year to September but the firm warned that “the headwinds of Brexit are beginning to show in the economy.”

The group, which is the UK’s largest listed property company, said profits rose from £203 million ($266) in the six months to 30 September 2017, up year-on-year from £193 million. It also hiked dividends to 18.7 pence per share, up 10.1%.

But chief executive Robert Noel warned Britain’s looming departure from the EU was having a negative impact.

“The headwinds of Brexit are beginning to show in the economy,” he said.

“Negotiations with the EU are moving more slowly than businesses would have hoped. Coupled with political uncertainty, this is leading to caution.”

Noel said retailers were under pressure from increased costs and pressure on disposable income as a result of stagnant wages and growing inflation.

“As we signalled in May, retailers are being challenged by increased costs coupled with pressure on disposable income,” he said.

“Our portfolio is relatively well insulated from these dynamics but we are not immune.”

LandSec manages more than 26,000,000 square feet of UK commercial property. Its performance to September was boosted by landmark deals including the sale of 20 Fenchurch Street, known as the Walkie-Talkie skyscraper, and its 25-year pre-let of Deutsche Bank’s new offices.

Shares were down 0.48% at 8.53 a.m. GMT (3.57 a.m. ET):

Investing.com