Supermarket giant Tesco said it has made a profit of £261 million trading its property portfolio in the first half of its financial year.
During the 26 week period, which ended 28 August, the firm made a profit from property related items of £261m. Tesco sold over £1.2 billion worth of property during the period and expects to divest property worth around £1.8bn for the full year, indicating that its sales activity will slow for the remainder of the year.
Last year Tesco sold property worth £1.8bn.
A statement accompanying the firms results said: “We are continuing to release value created through the long-term development of our property portfolio. In the first half we completed deals with total proceeds of £1.2bn; for the full year we expect to divest a similar amount to last year. Profits from property related items in the first half were £261m.”
It expects to invest around £1.6bn of capital in property over the coming year. The firm said: “Through the experience and expertise of our property teams we have developed over a number of years a good pipeline of new space opportunities. We will be investing £1.6bn of capital in the UK economy this year, as planned, and will create thousands of jobs including for the long-term unemployed through our regeneration partnerships.”
In total, The firm owns property, plant and equipment worth over £24bn, while property held for investment purposes was worthan additional £1.75bn.
During its first half, sales (excluding VAT) were £29.8bn and pre tax profits were £1.6bn.