Land Securities has hailed a “dramatic turnaround” in the commercial property market as the group swung back into profit.
The firm posted annual pre-tax profits of £1.07bn for the year to March 31 - reversing a £4.7bn loss previously - after the value of its portfolio rose more than 10%.
Chief executive Francis Salway said: “The year saw a dramatic turnaround in the UK commercial property market, with falling values in the first six months giving way to a rapid recovery in the second half.”
LandSec’s portfolio includes London offices and retail centres such as Bristol’s Cabot Circus and Gunwharf Quays in Portsmouth.
The group expects property values to rise over the next five years, but added “the path may not always be smooth” amid uncertainty over consumer spending and business investment.
“We have an unrivalled pipeline of potential projects in our London Portfolio, with over 110,000 square metres of developments already underway and up to a further 400,000 square metres of development and refurbishment opportunities.
“In retail we have plans aligned to the ongoing evolution in the sector and, through a focus on leasing and delivering occupier led developments, we will drive growth in capital values,” added Salway.