Directors of retail property firm Land Securities believe that some high streets are doomed and “may never recover” from damage inflicted during the recession and downturn.
The shopping centre giant’s chairman Alison Carnwath said: “The negative impact of economic conditions on consumer spending means that certain high streets and tertiary locations may never recover.”
Carnwath said Land Securities’ properties continue to perform well because of their locations. The company reported a 9% rise in revenue profit to £299.4m from £274.7m in the year to March 31 today.
Pre-tax profit more than halved to £515.7m from £1.2bn the year before.
Carnwath said: “In retail, we achieved a resilient performance in a sector undergoing structural change. Attractive, well-located shopping centres and retail parks continue to trade well while leisure and multichannel retailing are increasingly important.”
Chief executive Robert Noel said: “The outlook remains uncertain but we will continue to use the competitive advantage offered by our financial resources to deliver on our plans and exploit opportunities as they arise.”
The company said rent reviews, “are currently stuck in neutral”.
Pre-lettings for Trinity Leeds, the only major new shopping centre under construction which is due to complete in March 2013, are on track with occupancy at 72%.