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Nov 14 (Reuters) - British commercial property firm Land Securities Group said on Tuesday it expected low-to-mid single-digit percentage growth in annual rental values in London, even as high interest rates continued to weigh on the valuation of its buildings.
British commercial property firms are grappling with valuation declines, as high rates hurt their investment business, offsetting relatively better performance on the operational front.
"Investment activity remains thin, but we expect this to pick up in 2024, which should start to support values for the best assets," CEO Mark Allan said in a statement.
Landsec, which in May said it would invest more in prime retail spaces buoyed by positive outlook for that portfolio, said it continued to expect EPRA earnings per share for full year to be broadly stable compared with last year's underlying 50.1 pence.
The London-headquartered firm, which is inching close to the 2.5 billion pound (US$3.07 billion) disposal target set as part of its strategic initiative laid out in late 2020, said overall Central London occupancy rose 60 basis points to 96.5 per cent, with West End portfolio at 99.6 per cent.
The FTSE 100 firm said EPRA Net Tangible Assets - an industry measure that reflects the value of its buildings - fell 4.6 per cent year-on-year to 893 pence per share, as of Sept. 30. US($1 = 0.8139 pounds)