Landsec reports revenue profit down 39.4% to £251 million

Landsec, owners of shopping centres including Bluewater and West 12, has reported a loss before tax for the year of £1.393 billion, compared to a loss of £837 million for the previous financial year, as Government imposed lockdowns left many of its properties vacant and made rent collections difficult.

For the 12 months to 31 March 2021, like-for-like net rental income dropped £165 million (30.4%) and revenue profit down 39.4% to £251 million.

Landsec reported that is poised for recovery with a strategy that positions the business for long-term growth, with a strategy focused on four priorities:

• Optimise Central London portfolio
• Reimagine retail by redefining how it approaches retail in a multi-channel world
• Grow through Urban opportunities applying its skillset to deliver multi-phased, urban mixed-use schemes
• Realise capital from Subscale sectors

Landsec also reported strong performance in England since restrictions on non-essential retail began to lift on 12 April, with shopping centre sales, excluding F&B, up 5% versus 2019, and outlets up 14% versus 2019.

Over 50 retail brands have agreed new leases or opened new stores during the year, demonstrating physical stores in the right locations remain a key element to brand partner strategies.

Chief Executive Mark Allan said: “Our results for the year to March 2021 clearly reflect the challenges caused by both the pandemic and the associated restrictions. However, from the very outset of the first lockdown we have been focused on supporting our customers and ensuring that the business emerges from the pandemic in as strong a position as possible. The positive effects of this decisive action will become clearer in the years ahead.

“We are now entering the recovery phase. Government action to support the economy was swift and the speed of the ongoing vaccination programme impressive. As a result, there is the real prospect of a strong consumption led recovery across the remainder of 2021 and 2022.

“Like many people, I was encouraged to see the relish with which people returned to experience in-person shopping as the easing of lockdown measures began in April, and early indicators are that this excitement is driving a strong return to our retail assets. With this week marking the next milestone in the Government’s roadmap out of lockdown we expect to see even more.

“As a result of our proactive approach to the challenges posed by the pandemic, Landsec is poised for the recovery with a strategy that positions the business for long-term growth.”