Future Retirement Success
  • Politics
  • Business
  • Investing
  • Stocks
  • Politics
  • Business
  • Investing
  • Stocks

Future Retirement Success

Business

Commercial Property Values Poised for Growth as Office Return Accelerates

by May 18, 2024
May 18, 2024
Commercial Property Values Poised for Growth as Office Return Accelerates

The commercial property market may be approaching its nadir as more workers return to the office, according to Land Securities, one of the UK’s largest landlords.

Mark Allan, CEO of Land Securities, which owns a portfolio worth billions, stated that the values of high-quality properties have “largely bottomed out and will start to grow in the foreseeable future as rents rise.” He noted that the reset of values over the past two years, driven by rising interest rates, has stabilised, with evidence of continued rental growth attracting increased investor interest in the best assets.

Allan’s comments came as the company reported an 18 per cent increase in the number of workers entering its office buildings. The return to office work, combined with employers planning to provide more space per employee, is driving “particularly strong demand for best-located, highly sustainable, and well-amenitised office space.”

Devaluations of Landsec’s office properties in London accounted for £449 million of its total £625 million portfolio writedown last year, bringing its portfolio’s value to £9.96 billion. Central London offices and office developments make up about 60 per cent of Landsec’s portfolio, with another 20 per cent comprising shopping centres and retail outlets.

These devaluations contributed to a pre-tax loss of £341 million for the 12 months ending in March, a narrower loss compared to the £622 million loss from the previous year, thanks to rising rents and stable values in the second half. The company’s net asset value per share fell from 936p to 859p, but it still increased its total dividend by 2.6 per cent to 39.6p per share.

Landsec, which owns notable properties such as the Bluewater shopping centre in Kent and the Dominion Theatre in London’s West End, is progressing towards its goal of selling £4 billion of “non-core” property. Recently, it sold its remaining hotel portfolio to Los Angeles-based Ares Management for £400 million, and it plans to sell approximately £400 million of retail parks and a small number of standalone London assets not located in its core areas. In the longer term, Landsec aims to dispose of its “sub-scale” out-of-town leisure parks.

Proceeds from these disposals have provided Landsec with about £1 billion to invest in its committed development pipeline and other properties over the next 12 months. The company’s other top priority is investing in prime retail, driven by confidence in the performance of its existing retail locations, where it sees “really attractive” returns.

Read more:
Commercial Property Values Poised for Growth as Office Return Accelerates

0
FacebookTwitterGoogle +Pinterest
previous post
House GOP infighting fuels bitter primary election season
next post
Company Insolvencies Surge by Nearly 20% in April

You may also like

Asos optimistic about turnaround despite £380m loss

November 6, 2024

UK agrees landmark trade deals with Australia and...

May 5, 2023

How to Sell Your House Fast in London:...

January 27, 2025

How Bitcoin and Holochain Rethink Data Integrity

January 18, 2024

Key benefits & how to implement business process...

November 27, 2023

Apple overtakes Samsung as world’s biggest phonemaker

January 19, 2024

Citi puts over a thousand British banking jobs...

January 13, 2024

Britain Approaching Full Employment, Says Bank Governor

March 13, 2024

RMT announces further national rail strikes

February 17, 2023

Britain to close for Queen’s funeral: Supermarkets announce...

September 13, 2022

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free

    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Senate Republicans call on DOJ to appoint special counsel in Obama-Russia investigation

      July 24, 2025
    • ‘Shirts and Skins’: How one Republican bridged the gap to pass Trump’s ‘big, beautiful bill’

      July 24, 2025
    • House Republicans zero in on Biden autopen pardons after bombshell report

      July 24, 2025
    • DOJ forms Russiagate ‘strike force’ to investigate declassified Obama-era evidence

      July 24, 2025
    • Ex-Biden chief of staff Ron Klain arrives for grilling in House GOP’s cover-up probe

      July 24, 2025
    • Why Fetterman is right: The fight against cashless stores defends Main Street and working-class Americans

      July 24, 2025

    Categories

    • Business (8,567)
    • Investing (2,145)
    • Politics (16,181)
    • Stocks (3,225)
    • About us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: futureretirementsuccess.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 futureretirementsuccess.com | All Rights Reserved