Land Securities reported a major pre-tax loss of £835 million in the first half of the year.
The UK company reports a 7.7% decline in the value of its combined portfolio.
The board of Land Securities announced a dividend of 12 pence per share on Tuesday.
In a report on Tuesday, Land Securities Group plc (LON: LAND) said it ended the first half of the year with a larger loss, primarily due to a fall in the value of its assets. However, the company decided to resume dividend payments on Tuesday.
The company’s shares opened on Tuesday with a decline of just under 4% in the stock market, but rose by more than 10% in the next hour. So far this year, Land Securities are currently down about 30%, but have rallied about 40% since their year-to-date low in September. Trading stocks online is easier than you might think. Learn how to buy stocks online in 2020.
Land Securities reports a 7.7% decline in the value of its assets.
Land Securities reported a pre-tax loss of £835 million in the six months ended September 30. This compares with a much smaller loss of £147 million in the same period last year. Land Securities had already reported a pre-tax loss of £840 million for the full year in May.
The London-based company added that its turnover profit for the first half of the year was down by almost 50% to £115 million compared with £225 million in the same period last year. Land Securities blamed this decline on the coronavirus pandemic, which led to higher loan loss provisions and lower revenues in recent months.
The COVID 19 crisis has so far infected more than 1.2 million people in the UK and caused over 49 thousand deaths. Land Securities also highlighted a 7.7% decline in the value of its combined portfolio in the first half of the year to £11.8 billion on Tuesday.
Comments from CEO Mark Allan on Tuesday
Commenting on Tuesday’s financial report, Land Securities CEO Mark Allan said
“The impact of COVID-19 was felt throughout the period, and will continue to be so for the rest of the fiscal year, as evidenced by the recent introduction of a second national lockout.
The board of Land Securities decided on Tuesday to pay a dividend of 12 pence per share for the first half of the financial year. This compares to a higher dividend of 23.2 pence per share declared for the same period last year. In a separate news release from the UK, contractor Persimmon also declared a further dividend of 70 pence per share on Tuesday.
At the time of writing this article, Land Securities are estimated to be worth £5.07 billion.