London & Associated Properties reports half-year loss amid property market challenges

Published 30/09/2025, 07:30
London & Associated Properties reports half-year loss amid property market challenges

LONDON - London & Associated Properties PLC (LAP), a main market listed property investment group specializing in industrial and essential retail properties in the UK, reported an operating loss of £2.2 million for the six months ended June 30, 2025, compared to a profit of £4.7 million in the same period last year.

The company posted a loss before tax of £3.0 million, reversing from a profit of £4.2 million in the first half of 2024. Net assets attributable to shareholders decreased to £26.7 million from £28.1 million at the end of December 2024, equivalent to 31.33 pence per share compared to 32.91 pence.

Despite challenging market conditions, LAP maintained relatively strong occupancy levels across its property portfolio at 94.4% by rental income, slightly down from 95.5% in June 2024.

John Heller, Chairman and Chief Executive, noted that while the group’s property business continues to perform satisfactorily, prospective tenants are taking longer to commit to new leases, particularly in the industrial portfolio where a recently refurbished unit has remained unoccupied since February despite initial expectations of a quick letting.

The company’s revenue from property activities dipped marginally to £1.7 million from £1.8 million in the comparable period. Falling interest rates helped improve the group’s property earnings, though the company noted significant uncertainty over the medium-term direction of rates.

LAP’s 42% owned subsidiary, Bisichi PLC, which operates coal mines in South Africa and invests in UK property, reported significantly lower earnings with EBITDA of £0.13 million compared to £7.35 million in the first half of 2024, primarily due to lower mining production and higher costs.

The directors have decided not to declare an interim dividend due to increasing cost pressures, higher than forecast interest rates, and longer lead-in times for re-letting vacant units.

According to the press release statement, the company continues to explore opportunities to reduce overheads and restore profitability, including assessing options for its London head office lease in Q4 2025.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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