Developer Land Securities has suffered revenue and profit falls in the first half of its financial year, it revealed today.
The firm posted revenue of £339m in the six months to the end of September 2011 – down from £361m in the same period last year.
Pre-tax profit fell from £455m to £379m.
However, Land Securities’ revenue profit, which includes its share of joint ventures, rose 17 per cent to £159m.
The developer said it had started more than £1.6 billion of developments since January 2010, and de-risked 50 per cent of those through sales and pre-lettings.
It said it was on site with more than 78,000 sq m of development schemes in London, and was progressing on 113,000 sq m of retail schemes.
Rental values were up 1.6 per cent across the like-for-like portfolio over the last six months.
Chief Executive Francis Salway said: “We are operating in a challenging environment and we expect pressures in managing occupancy rates to continue. However, we have been encouraged by our first-half performance.”
He added: “We are alive to the potential effects of economic uncertainty and changeable sentiment in the capital markets. We have consistently stated that we did not expect to see a straight-line recovery in our market and we see no reason to adjust this outlook.
“We also believe that market uncertainty may well generate buying opportunities, as the balance between buyers and sellers shifts for some property types.”