Covid takes bite out of Landsec

It comes as the Covid crisis took strips out of an already struggling British high street, ripping a fifth of the value of Landsec’s retail portfolio. “Even before we saw the impact of Covid-19, it was clear that the retail market was having another tough year as it wrestled with structural challenges, and property values fell further as a result,” Landsec said on Tuesday. The pressures faced by retailers who have entered administration – or a company voluntary arrangement (CVA) which lets them reduce their debts to landlords, among others – had a knock-on effect on Landsec. The effects of Covid-19 are accelerating ongoing structural trends across the real estate sector, while its longer-term societal and economic consequences are yet to be determined.” After joining last month, Mr Allan and the board will now be considering what direction to take the business as they develop a long-term strategy which will be presented this autumn. “This testing quarter means the shares trade no higher now than they did in summer 2010, in the wake of the great financial crisis,” said Russ Mould, investment director at AJ Bell.