Land Securities suffered a drop in pre-tax profits of 58 per cent during the last financial year, it announced today.
The developer’s annual results showed pre-tax profits at £515.7 million for the year to the end of March, down from £1.2 billion the previous year.
The company blamed the figures on weak demand in the London office market.
Chief executive Robert Noel said: “In London, uncertainty in the eurozone weighed heavily on business confidence, leading to lower demand than expected for office space.”
But he said that low development levels, coupled with a high number of expiring leases meant that the market would start to improve from 2013, later than originally anticipated..
The company announced that overall revenue profit was up 9 per cent, with net asset value per share up 4.5 per cent to 863p.
Turner & Townsend managing director of programme management Steve McGuckin said that Land Securities was very well positioned for a future market recovery.
He said: “Other property companies and developers simply don’t have the same level of funding in place and could be left behind in the gates when the market does recover. Land Securities has also entered into a number of joint venture projects in order to spread its risk.”